HOUSE FARM LEADER SEES BILLION DLR BUDGET CUTS

  The 1988 agriculture budget will
  have to be cut by an additional one to two billion dlrs, the
  chairman of a key house agriculture subcommittee said.
      Implementation of a 0/92 program, a tightening up of the
  use of commodity certificates, and reconstitution of farms are
  possibilities that will be studied to reduce farm spending,
  said Dan Glickman, D-Kans., chairman of the House agriculture
  subcommittee on wheat, soybeans and feedgrains.
      Speaking at the annual meeting of the National Grain and
  Feed Association, Glickman said he learned this week from the
  House budget committee that the agriculture committee will have
  to reduce the fiscal year 1988 farm budget by up to two billion
  dlrs from the 30 billion dlrs level already approved.
      Decisions on how to cut the farm budget will have to be
  made very quickly in order to make any impact on the FY 1988
  budget, Glickman added.
      Glickman also said his committee will not approve USDA's 
  proposal to cut target prices by ten pct per year.
      "The administration's target price proposals are dead in
  the water," he said.
      To cut the budget, Glickman said, "everthing is on the
  table," except those moves that would reduce farmers' income.
      Glickman offered a list of possibilities that his committee
  will study in order to cut farm spending.
      Implementation of a 0/92 program for 1987 winter wheat and
  1988 feedgrains crops has been introduced by Glickman, which he
  said would result in a 150-200 mln dlr savings for one year.
      Tightening up on the use of generic (in-kind, or "pik')
  certificates will also be another option his committee will
  study, Glickman said.
      While not committing himself for or against such action, he
  said lawmakers have to examine recent government findings which
  indicate certificates cost more than cash payments.
      Glickman said rules for the reconstitution of farms and
  tightening up of the person definition for annual payment
  limitations is another option and could save 100-200 mln dlrs.
      He also said increasing acreage set-aside requirements by
  five pct for wheat and feedgrains at program sign-up was a move
  that could save about one billion dlrs, but added that he would
  not be in favor of such a change.
      Glickman also said that the Export Enhancement Program's,
  EEP, spending authority of 1.5 billion dlrs is quickly being
  used up, and Congress will have to decide whether to expand
  this program while making cuts in other areas.
      Cuts in the EEP program are unlikely, he said.
      "I don't see right now that the EEP will be on the chopping
  block," Glickman said.
  

