While the 2002 Farm Bill passed by Congress, with its 10 year, $73.5 billion price tag, has already triggered arguments about the effects on consumers and international trade, U.S. Rep. Gil Gutknecht defended it, saying the assistance is necessary to keep young farmers in the business.

The farm bill was approved by the House and sent to the Senate last week after the House and Senate reached an agreement in the conference committee. It will be sent to the President’s desk after Senate approval, which is expected.

The $73.5 billion bill consists mainly of loans and subsidies for crop and dairy producers, but also includes $17.1 billion for soil and water conservation, $1.14 billion for export assistance, $1.03 billion for rural development, $405 million for bioenergy promotion, and $6.4 billion for improving nutrition programs such as Food Stamps and Temporary Assistance for Needy Families.

The subsidies are composed of a direct payment that is automatically paid to farmers in accordance with their acreage, and a counter-cyclical payment that makes up the difference between the market and target prices set in the bill.

Gutknecht said the bill will empower rural communities as well as the whole nation.

“We take our farmers granted every single day,” said Gutknecht. “We have the cheapest food in the world. When there is any kind of emergency in the world, who does the world turn to first? American farmers.”

He emphasized that consumers pay less for foods in the U.S. with relatively smaller government subsidies to farmers. Protecting farmers from turbulence in the market and providing them a level playing field with foreign competitors are necessary compromises to retain farmers, especially young farmers, in the industry, Gutknecht said.

According to Gutknecht, an average of 10.9 percent of personal income is spent on food in the U.S., while the percentages are 51 in India, 11.2 in the U.K., 14.6 in France and 14.8 in Sweden. He said total government spending on farmers would increase from $49 per acre to $54 as a result of the new bill. But in Europe government aid per acre is $309 and in Japan it is over $4,000.