Senate votes to end farm debate, extend CEA

WASHINGTON (Reuters) - The U.S. Senate voted, 78-12, to end debate on its $286 billion farm bill on Thursday, shortly after amending it to extend until 2013 the Commodity Exchange Act, which spells out regulation of futures markets.

Majority Leader Harry Reid said the Senate might pass the bill on Friday. The five-year bill would increase spending on food stamps and land stewardship programs and create a program to guarantee crop revenue for the first time.

The CEA amendment takes steps similar to a White House proposal to renew the law and to expand the Commodity Futures Trading Commission's power to prosecute fraud. The amendment also gives the CFTC authority to regulate exempt commercial markets, such as energy products and metals.

House and Senate negotiators must write a final version of the farm bill for passage by both chambers before it can be sent to the White House.

The Bush administration has threatened to veto the House and Senate bills on grounds they increase taxes, rely on bookkeeping gimmicks to disguise the cost of the bill, raise crop support rates and fail to reform crop subsidy rules.

(Reporting by Charles Abbott; Editing by Gary Hill)