The bill, passed Friday on a vote of 231-191, devotes more money to conservation, renewable energy, nutrition and specialty crop programs than in the past but leaves in place _ and in some cases increases _ subsidies to producers of major crops such as corn and soybeans at a time of record-high prices.

The measure will next go to the Senate, which is due to begin its consideration of the legislation in September. The current farm law expires Sept. 30.

The bill passed by the House reflected a delicate straddle for Democrats writing their first farm bill in more than a decade. They struggled to balance the needs of first-term, farm-state lawmakers against the demands of liberals seeking more money for environmental and nutrition programs.

House Speaker Nancy Pelosi, a Democrat, said the measure "signals change and shows a new direction in our farm policy," but it fell well short of the changes many in her party had demanded.

Democrats rallied around the bill, however, after debate turned bitterly partisan over a tax measure included to partially finance an increase of some $4 billion (€2.3 billion) for nutrition programs. The plan would impose new taxes on certain multinational companies with U.S. subsidiaries.

Democrats said they were closing a loophole and cracking down on foreign tax-dodgers, while Republicans called it a massive tax hike that would affect manufacturers that provide millions of jobs in their districts. The spat sapped the farm bill of much of its customary bulletproof regional appeal, turning many rural Republicans against the measure.

All but 19 Republicans opposed it, leaving Democrats well short of the margin they would need to override a veto.

"This is an unprecedented move to use a farm bill as a vehicle to increase taxes," said Rep. Adam Putnam, the No. 3 Republican. "We could have put the House imprint on the farm bill, and now it is veto bait, and that is a tragedy."

Agriculture Secretary Mike Johanns said Democrats had narrowed support for farm programs by including the tax measure in the bill.

"If there was ever a time when our farm programs needed friends, it is now," he said.

The legislation aims to ban subsidies to farmers whose income averages more than $1 million (€730,000) a year, down from the current limit of $2.5 million (€1.8 million). It also would stop farmers from collecting payments for multiple farm businesses. Still, it includes about $42 billion (€31 billion) in assistance to farmers.

It was approved after Democrats quashed a rebellion from one of their own, Rep. Ron Kind, who teamed with conservative Republican budget hawks and urban and suburban Democrats on an amendment to wean farmers from government payments.

The amendment was rejected. It would have imposed stricter income limits on farmers, barring subsidies to those making an average of $250,000 (€183,000) or more annually, and would have steered more money to conservation, nutrition, specialty crop and rural development programs.

"I had high hopes that this Congress _ given market conditions and our commitment to a new direction for this country _ would have the stomach to reform these outdated and unfair policies," Kind said in a statement.

The overall measure was a huge victory for farmers, who got much of what they asked for in a year when they sometimes feared their priorities would be trumped by Democrats' talk of overhauling the way agricultural money is allocated.

It includes a long-sought deal to require country-of-origin labeling for meats and other foods, breathing new life into a five-year-old law that has been delayed repeatedly by opposition from food retailers and meatpackers. The bill would soften penalties for violating the rule, which is to go into effect next year.

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Associated Press writer Mary Clare Jalonick contributed to this report.

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On the Net:

The bill is H.R. 2419.

Congress: http://thomas.loc.gov

House Agriculture Committee: http://agriculture.house.gov/index.shtml

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