Farm disaster plan in Senate pared to $4.5 bln

[Ron Burgundy]

Reuters - Farm-state senators will propose $4.5 billion in disaster aid for farmers and ranchers on Wednesday, down $400 million in negotiations to bring the issue to a vote, said a Senate staff worker close to the talks.

The disaster package will be offered as an amendment to the annual funding bill for the Agriculture Department. Debate was scheduled for Wednesday afternoon.

The Bush administration says it is too early to discuss disaster relief. Agriculture Secretary Mike Johanns told reporters that any disaster package should carry offsetting cuts in other programs.

North Dakota Democrat Kent Conrad, the lead Senate sponsor of disaster relief, agreed to a $4.5 billion cap on aid during discussions on Tuesday with Republican leaders. Conrad had proposed $4.9 billion in compensation for losses in 2005 and this year but ran into parliamentary hurdles.

Under Conrad's latest plan, there would be no requirement to counter-balance disaster relief with spending cuts. Two dozen senators are co-sponsors.

Lawmakers from farm states hope to enact disaster relief in the next few weeks. They were thwarted three times during the summer with packages that ranged from $4 billion for losses in 2005 to $6.7 billion for damage in 2005 and this year.

About half of all U.S. counties have been declared agricultural disaster areas this year due to drought in the Plains, western Corn Belt and parts of the South. Wheat output is down 14 percent from 2005 although growers are harvesting bumper crops of corn, cotton and soybeans.