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Thursday, March 1, 2007

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WASHINGTON -- House Speaker Nancy Pelosi will address farmers facing an unprecedented ethanol boom in rural America that is sparking both euphoria and trepidation that an overhaul of farm law this year will bring a steep drop in crop subsidies.

The speech, scheduled for Friday at the National Farmers Union annual meeting in Orlando, Florida, may carry political overtones as well. Democratic leaders are keenly aware rural districts played an important part in putting them in control of Congress this year.

"It is a farm bill year. Ethanol is on the agenda. There's any number of things she could talk about to them that would be relevant to their interests," said analyst Mark McMinimy of Stanford Washington Research.

Aided in part by a 2005 law guaranteeing a small share of the motor fuel market to renewable fuels, the ethanol industry is surging, which has propelled corn prices to the highest level in a decade.

Analysts say ethanol, popular in rural America as a home-grown fuel and boon to farm income, could be married with urban America's concerns about energy security to become a powerful coalition in Congress. It would be a way to build support for the U.S. farm program, said agriculture consultant Randy Russell.

A Pelosi spokesman said the trip by the California Democrat was a way to let farmers and ranchers know "the issues important to them, the farm bill and alternative energy production, will be addressed" by Congress.

Written every few years, so-called farm bills cover crop subsidy, farm export, land stewardship, public nutrition and agricultural research programs. Due to high market prices, funding for crop subsidies, the safety net for grain, cotton and soybean farmers, could drop by half in coming years.

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NFU President Tom Buis said he welcomed Pelosi's visit as a demonstration of congressional interest in rural America.

"I think (ethanol) is a great opportunity for rural America," said Buis.

Democrats won 30 open and Republican-held seats in last fall's elections to win a majority in the House. Eleven of those races were in rural districts. Democrats hold a 233-201 advantage over Republicans.

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