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Jerry Hagstrom

Senate Agriculture Chairman Harkin said today if the administration does not agree soon to revenue raisers to increase farm bill spending above the current baseline, Congress might have to pass the bill with the expectation that President Bush will veto it. "If an overwhelming majority of the Congress says close some loopholes to get us some funding, the president is going to have to bend on that or I guess we are headed for a veto," Harkin said. Noting that 79 senators voted for the Senate version in December, Harkin said a veto override is probable if the final version looks like the Senate bill.

Harkin noted that the administration's farm bill proposal was $8.5 billion over the baseline and the administration never said how it would come up with the additional money. "I don't know what the president's game is on this," Harkin said. "The clock is ticking."Senate Finance Chairman Baucus and Senate Budget Chairman Conrad, who also sit on the Finance panel, have been searching for alternative tax measures that the White House might support, Harkin said, but so far have come up with none. Harkin said he has a meeting scheduled today with OMB Director Nussle.
Less contentious is the issue of payment limits. Agriculture Secretary Schafer said Wednesday that compromise is possible on the issue, and the administration could agree to ban subsidies for individuals with adjusted gross incomes somewhere "in the middle" between the administration proposal of a $200,000 income cap, the Senate cap of $750,000 and the House cap of $1 million.

Harkin said if Congress does not pass a new farm bill, it is possible that the 1949 permanent agriculture law would go into effect. Passing an extension of the 2002 farm bill would be difficult, Harkin noted, because it would not contain the increases in nutrition, conservation and energy programs in the new bill. Harkin said the baseline under the 1949 act might be "extremely high" and could be used for writing a new bill after the presidential election. Harkin said Congress could make "adjustments" in the 1949 law to avoid increases in milk prices and could put off any of the referendums on farm programs required under that law. For decades, Congress has suspended the 1938 and 1949 laws each time a new farm bill is written.National Journal's CongressDaily