Senate foes nix farm subsidy reform: Harkin

By Charles Abbott

WASHINGTON (Reuters) - Too many members of the Senate Agriculture Committee oppose tighter limits on U.S. farm subsidies to include stringent reforms in an overhaul of the farm program, the panel's chairman said on Thursday.

Because of the need for wide support for the farm bill, "I can't say that I will be fully satisfied with what is in the bill on payment limitations," said chairman Tom Harkin, Iowa Democrat, in a statement.

One committee member, Republican Charles Grassley of Iowa, has proposed a "hard" cap of $250,000 a year per farmer and requiring at least 1,000 hours of labor or management a year to qualify for payments.

The subsidy limit now is $360,000 but can be evaded a number of ways.

"Senator Grassley and I see eye-to-eye on wanting stronger payment limitations, but a number of members of the Senate Agriculture Committee strongly disagree with us," said Harkin. "It's clear we need bipartisan cooperation to report a new farm bill from the Committee and get it enacted still this year.

"So I can't say I will be fully satisfied with what is in the bill on payment limitations, yet as chairman I have to recognize the critical need to complete a bill soon for the good of farmers and rural communities in Iowa and across the nation."

Small-farm advocates say the framework written by Harkin and two other committee leaders will propose that farm subsidies be tracked to individuals and the practice of receiving subsidies indirectly will be banned. They say other reforms, such as closing loopholes or lowering the payment limit, apparently will not be proposed.

(Reporting by Charles Abbott)