Bush threatens farm bill veto if goals missed

WASHINGTON (Reuters) - President George W. Bush warned on Wednesday he will veto the new U.S. farm law if it raises taxes or fails to reform the farm program.

"I'm confident we can come together and get a good farm bill," Bush told government employees in an appearance at the U.S. Agriculture Department. "But if Congress sends me legislation that raises taxes or (does) not make needed reforms, I'm going to veto it."

It was the strongest statement yet to Congress from the administration of its goals for the omnibus farm law, which covers farm subsidies, land stewardship, nutrition programs like food stamps and rural economic development.

Bush took part in a 15-minute ceremony marking the arrival of Agriculture Secretary Ed Schafer, who took office a week ago. He said Schafer, a former two-term governor of North Dakota, will work with Congress for a compromise bill.

Lawmakers and the administration have been deadlocked since the start of the year over the five-year, $286 billion bill.

The White House says it will not allow a tax increase, and that the farm bill should cut off subsidies to the wealthiest 2 percent of Americans. Congress says it needs additional revenue to pay for expansions of food, land stewardship and biofuels programs.

Lawmakers agree with the administration in closing loopholes that allow huge crop subsidy payments but they have different ideas on when to cut off subsidies to big operators.

(Reporting by Charles Abbott; editing by Jim Marshall)