Kansas growers conflicted over farm bill

When Congress passed the last farm bill five years ago, Kansas Sen. Pat Roberts was firmly in the "no" column. The latest version of farm legislation proposed by the Bush administration last month hasn't put to rest Roberts' concerns, or those of other Kansas officials worried about its impact on the state's farmers and ranchers.

"We want to do a lot more homework and run the numbers to determine what we really think the practical effect will be and then we'll go from there," said Roberts, a Republican.

Lawmakers and farm groups have questions about Bush's plan to reduce agriculture spending overall, cut subsidies for producers earning more than $200,000 in adjusted gross income and make it more expensive for farmers to buy crop insurance.

Yet the state stands to benefit from some aspects of the proposal.

The White House's blueprint would boost conservation funding, promote renewable fuels and provide money to upgrade the quality of rural hospitals _ key issues for Kansas farmers.

"There are some things that make a lot of sense to me and some things that are detrimental to the agricultural economy in Kansas," said Republican Rep. Jerry Moran, who represents western Kansas.

Congress enacts new farm legislation about every five years in response to changes in the agriculture industry. With the current farm bill expiring in September, Bush's plan is viewed as a starting point for discussion.

Kansas farmers received over $9 billion in subsidies from 1995-2005, ranking 6th in the nation according to a database compiled by the Environmental Working Group, a public interest group that tracks payments. Texas ranked first in subsidy payments, with farmers there pulling in $14.8 billion over the same time.

Many wheat farmers, whose crop production suffered because of the drought, believe they were treated unfairly under the 2002 farm bill because they could not qualify for certain subsidy programs that are based on yield.

"We were in a situation where the cost of production went up and we just left that money on the table," said Joe Kejr, a Brookville farmer and president of the Kansas Association of Wheat Growers. "We're trying to get those inequities fixed in the farm bill."

While the Bush plan offers a 7 percent increase in direct payments for wheat growers, Kejr said that alone does not cover rising production costs due to higher fuel and fertilizer prices.

Kansas Farm Bureau President Steve Baccus says he wants federal lawmakers to "change the way they think about federal farm programs" and preserve an economic safety net for producers through smart policies, not just "a government check."

Representatives of 21 Kansas farm organizations will travel to Washington next month to lobby lawmakers and administration officials on the farm bill.

One of Roberts' biggest concerns is that the plan would raise premiums for crop insurance, increasing costs for a large number of Kansas producers. At the same time, the Bush administration has consistently opposed separate disaster assistance legislation because crop insurance is available.

"How does taking additional money out of this risk management program help producers?" Roberts said. "I don't understand that."

On the positive side, the administration proposes to boost conservation spending by about $780 million a year. Part of that money would help cattle producers and livestock feeders comply with environmental standards for runoff, water pollution and air quality.

That will make a difference for the state's $5 billion a year beef industry and be felt in Moran's western Kansas district, which has more cattle than any other in the nation.

Moran also is excited about the plan to make $1.6 billion in low interest loans available for small, critical care hospitals to buy new equipment and upgrade aging facilities. A large portion of that money would flow to Kansas, which has 84 rural critical care hospitals, more than any other state.

Sen. Sam Brownback, R-Kan., praised the plan for including $1.6 billion for research into biofuel from wood chips, grasses and other noncorn sources. There is an additional $2.1 billion in loan guarantees for plants that make noncorn-based ethanol.