May 9, 2002

WASHINGTON (Reuters) - On a day it was honoring free-enterprise economist Milton Friedman, the White House Thursday defended plans to sign new farm legislation denounced by critics as a setback for free-market reforms.

"It was a question of not being perfect legislation, but good enough legislation," White House spokesman Ari Fleischer said. "On balance, the farm bill represents sound policy."

Fleischer spoke just before a White House tribute to the Nobel Prize winner who is regarded as major proponent of free markets and an opponent of government intervention.

The U.S. Senate Wednesday passed and sent to President  Bush an election-year farm bill estimated to cost as much $51.7 billion over six years.

The bill boosts crop and dairy subsidies by 67 percent, and U.S. trading partners have criticized it as clear contradiction of American calls for freer farm trade and a violation of world trade rules.

Some Republican lawmakers have repudiated the farm bill, saying its lavish subsidies would bring price-crushing crop surpluses and do little to close loopholes for the corporate farmers who already receive roughly 80 percent of annual subsidies.

Bush has promised to sign it into law.

Fleischer said the bill provides "a proper amount of help" for farmers who need help, complies with World Trade Organization rules and contains important conservation measures.

05/09/02 11:47 ET

Copyright 2002 Reuters Limited.