02/08/05 Johanns defends ag budget cuts

Farm and Ranch February 8, 2005 When it comes to agriculture, President Bush's proposed Fiscal Year 2006 budget unveiled yesterday, proposes among other things to lower the payment limit cap for individuals to 250-thousand dollars for commodity payments, including all types of marketing loan gains, eliminate the three-entity rule, base marketing loans on historical production and reduce crop and dairy payments to farmers by five percent. There would also be a sugar marketing assessment to be paid by sugar processors on all processed sugar. Agriculture Secretary Mike Johanns says he fully supports the proposals as part of the President's deficit reduction goals. Johanns: "Farmers and ranchers obviously know the importance of a health economy. It raises income and increases demand for the products they produce. Like every agency USDA will share the government-wide burden of controlling federal spending." Some 118 agriculture, nutrition and conservation groups, including the National Association of Wheat Growers don't agree. Those groups sent a letter last week to Johanns and members of Congress stating their objections to any cuts in the federal agriculture budget. The letter pointed out that spending on commodity programs was less than predicted over the first three years of the 2002 Farm Bill, and that cutting support now, with prices falling, comes at a time when supports are needed most. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.