Friday, the USDA gave House and Senate Farm Bill negotiators the
Department's list of changes that the White House wants to see in a
new Farm Bill before President Bush will support spending $10 billion
over ten years above the current budget baseline for Farm Bill
programs. Most of the changes involve reforms to the commodity
programs in the Farm Bill.

In a news release, the Farmers Union said House Agriculture Committee
Chairman Collin Peterson told more than 600 Farmers Union members
meeting on Sunday that he is optimistic a farm bill funding agreement
will be reached in the coming week and a bill signed into law by mid-
April.

"We're moving slowly ahead, at least not backwards and we're close to
getting a final resolution," Peterson said.

But Chris Clayton (DTN.ag) reported Rep. Peterson also said there was
not much time left to reach agreement, and "at some time, we have got
to fish or cut bait."

The current Farm Bill extension expires March 15, and House and
Senate leaders have discussed a further extension to April 15 to
complete negotiations on the bill.

Still on the table is a proposal floated by House Agriculture
Committee Chair Collin Peterson (D-MN) and Ranking Republican Bob
Goodlatte (R-VA) to cut the Conservation Reserve Program to just 32
million acres (from 39.2 million authorized in current law), and to
cut the Wetlands Reserve Program annual enrollment to 200,000 acres
(from the 250,000 acres allowed under current law).

Meanwhile, Jerry Hagstrom (DTN.ag) quoted Secretary of Agriculture Ed
Schafer saying some troubling things about the Conservation Reserve
Program at the Farmers Union national convention. Responding to a
question, Schafer reportedly said "I'd like to see all the CRP acres
out there growing switchgrass" that could be used for bioenergy.
Greenwire reports that Secretary Schafer made similar comments at a
renewable fuels conference Tuesday.

Senate Agriculture Committee Chair Tom Harkin (D-IA) responded,
saying "land in the CRP is producing critical benefits in greater
wildlife habitat, a cleaner environment and conservation of our
precious soil and water. CRP land is not simply idle or
nonproductive. We have to keep in mind our conservation goals and
our responsibility to future generations."

"There are already big challenges in CRP as contracts on millions of
acres expire and landowners face decisions whether to reenroll," said
Harkin. "So we must be very careful about the consequences of abrupt
or sweeping policy changes affecting land in CRP. I'm a big advocate
of producing energy from biomass, yet I believe that with care and
forethought we can have both more biofuels and more conservation."

In recent years, the Conservation Reserve Program has put a priority
on growing mixed stands of native grasses and forbs. Those diverse
mixes provide better habitat for a variety of wildlife, and they
stand up better under rainfall and weather conditions that can change
substantially from year to year.

Replacing mixed stands of native grasses and forbs with a single-
species stand of switchgrass would substantially reduce the value of
the program for upland birds and other wildlife.

The Farm Bills passed by the House and Senate already include
versions of a proposal to help farmers grow plants like switchgrass
that could be turned into energy.

Duane Hovorka