House OKs farmer-subsidy bill

The Democrats added $100 million to settle claims of racial discrimination by black farmers against the Agriculture Department, a move applauded by Rep. Maxine Waters, D-Calif., and other members of the Congressional Black Caucus.

The House vote sets the stage for complicated negotiations when the Senate takes up its version of the farm bill in the fall.

In addition to the veto threat by the White House, which is demanding that Congress lower the farmer's income-eligibility ceiling, the World Trade Organization is expected to rule on complaints by countries like Brazil and Canada that the subsidies violate free trade agreements.

In an interim report this week, the WTO ruled that the United States had failed to change cotton subsidies, allowed under the previous farm bill, enough to conform to global trade rules.

On Friday, Agriculture Secretary Mike Johanns repeated the administration's displeasure with the current farm bill, especially the tax provision.

"There's no need to raise taxes to deliver a good farm bill," Johanns said, adding that the administration had also proposed far more extensive reforms for subsidies.

"The House bill falls well short of those proposals," he said. "I urge the Senate to chart a different course."

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Contributing: Deseret Morning News