American farmers plead for $18b aid

ORLANDO - American farmers will need as much as $US18 billion ($39.6 billion) in Government subsidies this year to cushion the industry against a fourth year of depressed prices, the president of the biggest US farm lobby said.

Agriculture struggled last year, and many of the nation's 1.9 million farmers, especially those growing corn and soybeans, will find "the going pretty tough" again in 2001, Bob Stallman, a cattle and rice farmer from Texas, said.

Congress set aside at least $4 billion for subsidies in the current federal budget, and the aid total likely will increase to $9 billion for the fiscal year ending September 30. Stallman called that "woefully inadequate."

"I think you're going to have to double it" to about $18 billion this year, he said. Without it, "the farm economy will be devastated."

US agriculture is in its worst slump in 15 years because of near-record harvests and tepid demand for exports, which account for about a quarter of farm sales. The average per bushel price for corn and soybeans, for example, will be the second lowest in 14 years, according to Agriculture Department projections.

Stallman made his comments during a news conference at the opening of the 82nd annual American Farm Bureau Federation convention, which organisers expected to draw about 5000 farmers.

The law governing farm subsidies expires in 2002, and Farm Bureau and other commodity groups are eager to begin debate on an overhaul. Farmers are eager to know how much bailout money may be coming from Congress this year.

The Government spent a record $28 billion to support farm income in fiscal 2000, which ended September 30. While Stallman's target of $18 billion for this year would be lower, it is still more than double the $7.3 billion spent in 1996, when the farm bill was last rewritten.

President-elect George W. Bush said during the campaign that he would support agriculture.

Stallman said that Bush and Agriculture-Secretary designate Ann Veneman likely would offer proposals for bailouts this year and longer-term plans to overhaul farm law in 2002.

"There is every expectation there will be additional assistance provided again this year," he said.

The Farm Bureau also expects the incoming Bush Administration to offer tax cuts, curb regulations, and push to expand export markets. About 25 cents of each dollar in farm income comes from the sale of crops or livestock overseas.

Agriculture groups are supporting Veneman, Stallman said, because of her experience as head of the California Department of Food and Agriculture and at the Agriculture Department, which began in 1986.

She began working at the USDA in 1986 and was the agency's deputy secretary from 1991 to 1993.

- REUTERS