010632 White House Warns Against Excessive Farm BailoutJune 15, 2001Washington - White House Budget Director Mitch Daniels warned lawmakers against an excessive farm aid package this year and suggested $5.5 billion would be large enough. In a letter, Daniels said forecasts of an upturn in livestock and crop receipts showed there was no reason for a large-scale bail-out. Congress has enacted nearly $25 billion since late 1998 to shield growers from low prices. “It is important that we provide the 2001 assistance to farmers quickly,” Daniels wrote. “However, our support is contingent on funding remaining within the $5.5 billion total for 2001.” House Agriculture Committee Chairman Larry Combest, Texas Republican, regarded the letter as an expression of opinion by a presidential employee, an aide said, and not a veto threat. The committee was scheduled to meet next week to work on the aid package, which could approach $6.8 billion if the panel accepted most requests for assistance. Under the budget resolution adopted this spring by Congress to guide spending, $5.5 billion was allowed for additional farm aid in fiscal 2001, which ends Sept. 30. Any spending beyond that would have to come from fiscal 2002 allocations. “We're going to stay in the budget for fiscal 2001 funding,” a committee spokesman said. Asked if the bailout might exceed $5.5 billion, the spokesman said: “That is purely up to the members.” There has been speculation the committee would go slightly above $5.5 billion with some expenditures set for fiscal 2002. Daniels said $5.5 billion in aid would push net farm income for 2001 to $53.5 billion, or $1.2 billion above last year. An Agriculture Committee analysis said most of the forecast $7.6 billion increase in cash receipts would come from livestock and only $800 million from crops, the sector that would get aid payments.
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