Researcher says farm bill most benefits northern farmers

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FARGO - A North Dakota State University researcher says the multibillion-dollar farm bill passed by the U.S. House of Representatives is better for northern producers than the current policy.

The bill would increase net farm income and provide better protection during bad times for North Dakota farmers, NDSU professor Won Koo said during a meeting between Rep. Earl Pomeroy, D-N.D., and agricultural researchers at the school.

The House proposal provides higher loan rates and target prices for selected northern tier crops - including soybeans, wheat and barley - compared to current law, Koo said. Direct subsidy payments also would be increased.

Pomeroy said those numbers might improve in the final bill because unlike the House, the Senate hasn't typically favored Southern crops. The Senate is expected to debate the bill this fall.

"There are more votes weighed to the South (in the House)," Pomeroy said. "The reason we have higher numbers is that we were able to take a little away from cotton. They've had more than their fair share."

There are parts of the bill that do not favor Northern farmers, Koo said. Some of the payments that protect farmers during times of poor prices would be based on a national average yield. Flooding and other weather problems often lead to lower yields in the North, he said.

"It doesn't make any sense, and it doesn't provide any protection for producers in this region," Koo said. He said it would be better if the payments were based on county-by-county yields.

Farmers don't have to rely on payments based on national average yields, however. Under the House bill, they can instead choose to receive payments when prices are low.

Koo also said the payment limits should be lowered. The bill would ban payments for individuals who have an average adjusted gross income of more than $1 million, down from the current limit of $2.5 million.

"I think that one ($1 million) is too high, too liberal," Koo said. "Why should we subsidize millionaires?"

The Bush administration has proposed limiting payments to those who make less than $200,000.

Pomeroy said he would like to see the Senate act on the legislation in September. Sen. Kent Conrad, D-N.D., has scheduled public forums on the bill this week.

"I believe the quicker we pass the farm bill, the better our farmers are going to fare," Pomeroy said. "The later we pass the farm bill, I'm worrying about money being taken out of the farm bill for other purposes."

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