Both the House and Senate voted on May 22 to override a presidential veto of the 2008 Farm Bill, putting the full $307 billion legislation on track to become law. The legislative process was not without some hiccups, however, as a portion of the bill was mistakenly left out of the package sent to and vetoed by President Bush on May 21.
According to the Agricultural Retailers Association, which supported the bill and praised Congress for overriding the president’s veto, the Trade title of the 2008 Farm Bill Conference Report was inadvertently left out of the version sent to the President. As a result, this title will not yet become law even with the veto override, since it was not part of the version vetoed by President Bush. ARA reported that the House on May 22 approved the farm bill agreement with the trade title as a precautionary step in case of any constitutional challenges to the legislation.
The bill, criticized by President Bush as being too expensive and bloated with earmarks at a time when U.S. farmers are enjoying higher crop prices and improved farm income, was approved in the House by a vote of 306 to 110, and in the Senate shortly thereafter by a vote of 82 to 13. The margins of support in both chambers were more than enough to defeat the veto that President Bush cast on Wednesday. Senate Agriculture Committee Chairman Tom Harkin (D-Iowa ) said on the Senate floor Thursday that all of the farm bill titles except for the trade title are now law with the Senate’s farm bill override vote.
The bill includes the Agricultural Chemicals Security Credit provision, which will provide a tax credit to agricultural retailers, distributors, and other eligible agricultural businesses that improve security at their fertilizer and pesticide storage facilities. The measure was supported by ARA and The Fertilizer Institute. The final bill also includes additional funding for tank locks and additives to reduce the production of methamphetamine from anhydrous ammonia, and measures to increase federal oversight authority to detect and prevent manipulation and limit speculation in U.S. electronic energy markets by increasing reporting requirements.
“We are pleased that the Agricultural Chemicals Security Credit provision and other key policy priorities such as reforms to the Technical Service Providers (TSP) program, anhydrous ammonia nurse tank grant program, and increased transparency and oversight of energy trades were maintained in the 2008 Farm Bill,” said ARA President and CEO Jack Eberspacher. “We applaud Senator Pat Roberts (R-Kan.) for spearheading efforts on the inclusion of the Agricultural Chemicals Security Credit provision. ARA also thanks all members of the conference committee and other Senate and House members that assisted on this proposal.”
Among the many provisions in the five-year legislation, the 2008 Farm Bill will boost nutrition programs, including food stamps and emergency domestic food aid, by some $10 billion; increase subsidies for certain crops, including fruits and vegetables excluded from previous farm bills; extend dairy programs; increase loan rates for sugar producers, and urge the government to buy surplus sugar and sell it to ethanol producers for use in a mixture with corn; cut a per-gallon ethanol tax credit for refiners from 51 cents to 45 cents, and push more money to cellulosic ethanol; stop allowing farmers to collect subsidies for multiple farm businesses; and pay farmers for weather-related farm losses from a new $3.8 billion disaster relief fund.
In his May 21 letter to the House vetoing the bill, President Bush criticized the legislation on several grounds. “At a time of high food prices and record farm income, this bill lacks program reform and fiscal discipline,” he said. “It continues subsidies for the wealthy and increases farm bill spending by more than $20 billion, while using budget gimmicks to hide much of the increase.” Bush also said the bill was inconsistent with his administration’s objectives in international trade negotiations, and needlessly expands the size of government.
“At a time when net farm income is projected to increase by more than $28 billion in 1 year, the American taxpayer should not be forced to subsidize that group of farmers who have adjusted gross incomes of up to $1.5 million,” Bush said. “When commodity prices are at record highs, it is irresponsible to increase government subsidy rates for 15 crops, subsidize additional crops, and provide payments that further distort markets.”
ARA, TFI, and CropLife America, along with some 1,050 other associations and trade groups, sent letters on May 21 to both the House and Senate urging them to override Bush’s veto.
“Communities across the nation, from urban to rural, have waited too long for this legislation,” the letter stated. “The Conference Report makes significant farm policy reforms, protects the safety net for all of America’s food producers, addresses important infrastructure needs for specialty crops, increases funding to feed our nation’s poor, and enhances support for important conservation initiatives. This is by no means a perfect piece of legislation, and none of our organizations achieved everything we had individually requested. However, it is a carefully balanced compromise of policy priorities that has broad support among organizations representing the nation’s agriculture, conservation, and nutrition interests.”