Anger at Australian radio station over royal hoax












LONDON (AP) — It started out as a joke, but ended in tragedy.


The sudden death of a nurse who unwittingly accepted a prank call to a London hospital about Prince William‘s pregnant wife Kate has shocked Britain and Australia, and sparked an angry backlash Saturday from some who argue the DJs who carried out the hoax should be held responsible.












At first, the call by two irreverent Australian DJs posing as royals was picked up by news outlets around the world as an amusing anecdote about the royal pregnancy. Some complained about the invasion of privacy, the hospital was embarrassed, and the radio presenters sheepishly apologized.


But the prank took a dark twist Friday with the death of nurse Jacintha Saldanha, a 46-year-old mother of two, three days after she took the hoax call. Police have not yet determined Saldanha‘s cause of death, but people from London to Sydney have been making the assumption that she died because of stress from the call.


King Edward VII’s Hospital, where the former Kate Middleton was being treated for acute morning sickness this week, wrote a strongly-worded letter to the 2DayFM radio station’s parent company Southern Cross Austereo, condemning the “truly appalling” hoax and urging it to take steps to ensure such an incident would never happen again.


“The immediate consequence of these premeditated and ill-considered actions was the humiliation of two dedicated and caring nurses who were simply doing their job tending to their patients,” the letter read. “The longer term consequence has been reported around the world and is, frankly, tragic beyond words.”


The hospital did not comment when asked whether it believed the prank call had directly caused Saldanha’s death, only saying that the protest letter spoke for itself.


DJs Mel Grieg and Michael Christian, who apologized for the prank on Tuesday, took down their Twitter accounts after they were bombarded by thousands of abusive comments. Rhys Holleran, CEO of Southern Cross Austereo, said the pair have been offered counseling and were taken off the air indefinitely.


No one could have foreseen the tragic consequences of the prank, he stressed.


“I spoke to both presenters early this morning and it’s fair to say they’re completely shattered,” Holleran told reporters on Saturday.


“These people aren’t machines, they’re human beings,” he said. “We’re all affected by this.”


Details about Saldanha have been trickling out since the duty nurse’s body was found at apartments provided by the private hospital, which has treated a line of royals before, including Prince Philip, who was hospitalized there for a bladder infection in June.


The nurse, who was originally from India, had lived with her partner Benedict Barboza and a teenage son and daughter in Bristol, in southwestern England, for the past nine years. The hospital praised her as a “first-class nurse” who was well-respected and popular among colleagues during her four years working there.


Just before dawn on Tuesday, Saldanha was looking after her patients when the phone rang. A woman pretending to be Queen Elizabeth II asked to speak to the duchess, and, believing the caller, Saldanha transferred the call to a fellow nurse caring for the duchess, who spoke to the two DJs about Kate’s condition live on air.


During the call — which was put online and later broadcast on news channels worldwide — Grieg mimicked the Britain’s monarch’s voice and asked about the duchess’ health. She was told Kate “hasn’t had any retching with me and she’s been sleeping on and off.” Grieg and Christian, who pretended to be Prince Charles, also discussed with the nurse when they could travel to the hospital to check in on Kate.


Three days later, officers responding to reports that a woman was found unconscious discovered Saldanha, who was pronounced dead at the scene. Police didn’t release a cause of death, but said they didn’t find anything suspicious. A coroner will make a determination on the cause.


In the aftermath of Saldanha’s death, some speculated about whether the nurse was subject to pressure to resign or about to be punished for the mistake. Royal officials said Prince William and Kate were “deeply saddened,” but insisted that the palace had not complained about the hoax. King Edward VII’s Hospital also maintained that it did not reprimand Saldanha.


“We did not discipline the nurse in question. There were no plans to discipline her,” a hospital spokesman said. He declined to provide further details, and did not respond to questions about the second nurse’s condition.


The Australian Communications and Media Authority, which regulates radio broadcasting, said it has received complaints about the prank and is discussing the matter with the Sydney-based station, which yanked its Facebook page after it received thousands of angry comments.


Holleran, the radio executive, would not say who came up with the idea for the call. He only said that “these things are often done collaboratively.” He said 2DayFM would work with authorities, but was confident the station hadn’t broken any laws, noting that prank calls in radio have been happening “for decades.”


The station has a history of controversy, including a series of “Heartless Hotline” shows in which disadvantage people were offered a prize that could be taken away from them by listeners.


Saldanha’s family asked for privacy in a brief statement issued through London police.


Flowers were left outside the hospital’s nurse’s apartments, with one note reading: “Dear Jacintha, our thoughts are with you and your family. From all your fellow nurses, we bless your soul. God bless.”


Officials from St. James’s Palace have said the duchess is not yet 12 weeks pregnant. The child would be the first for her and William.


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Viral rapper PSY apologizes for anti-US protests












South Korean rapper and Internet sensation PSY is apologizing to Americans for participating in anti-U.S. protests several years ago.


Park Jae-sang, who performs as PSY, issued a statement Friday after reports surfaced that he had participated in concerts protesting the U.S. military presence in South Korea during the early stages of the Iraq war.












At a 2004 concert, the “Gangnam Style” rapper performs a song with lyrics about killing “Yankees” who have been torturing Iraqi captives and their families “slowly and painfully.” In another protest, he smashed a model of a U.S. tank on stage.


“While I’m grateful for the freedom to express one’s self, I’ve learned there are limits to what language is appropriate and I’m deeply sorry for how these lyrics could be interpreted,” he wrote in the statement. “I will forever be sorry for any pain I have caused by those words.”


The 34-year-old rapper says the protests were part of a “deeply emotional” reaction to the war and the death of two Korean school girls, who were killed when a U.S. military vehicle hit them as they walked alongside the road. He noted antiwar sentiment was high around the world at the time.


PSY attended college in the U.S. and says he understands the sacrifices U.S. military members have made to protect South Korea and other nations. He has recently performed in front of servicemen and women.


“And I hope they and all Americans can accept my apology,” he wrote. “While it’s important that we express our opinions, I deeply regret the inflammatory and inappropriate language I used to do so. In my music, I try to give people a release, a reason to smile. I have learned that thru music, our universal language we can all come together as a culture of humanity and I hope that you will accept my apology.”


His participation in the protests was no secret in South Korea, where the U.S. has had a large military presence since the Korean War, but was not generally known in America until recent news reports.


PSY did not write “Dear American,” a song by The N.E.X.T., but he does perform it. The song exhorts the listener to kill the Yankees who are torturing Iraqi captives, their superiors who ordered the torture and their families. At one point he raps: “Kill their daughters, mothers, daughters-in-law, and fathers/Kill them all slowly and painfully.”


PSY launched to international acclaim based on the viral nature of his “Gangnam Style” video. It became YouTube’s most watched video, making him a millionaire who freely crossed cultural boundaries around the world. Much of that success has happened in the U.S., where the rapper has managed to weave himself into pop culture.


He recently appeared on the American Music Awards, dancing alongside MC Hammer in a melding of memorable dance moves that book-end the last two decades. And the Internet is awash with copycat versions of the song. Even former Republican Sen. Alan Simpson, the 81-year-old co-chairman of President Barack Obama‘s deficit commission, got in on the fun, recently using the song in a video to urge young Americans to avoid credit card debt.


It remains to be seen how PSY’s American fans will react. Obama, the father of two pop music fans, wasn’t letting the news change his plans, though.


Earlier Friday, the White House confirmed Obama and his family will attend a Dec. 21 charity concert where PSY is among the performers. A spokesman says it’s customary for the president to attend the “Christmas in Washington” concert, which will be broadcast on TNT. The White House has no role in choosing performers for the event, which benefits the National Children’s Medical Center.


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Twins have simultaneous and free hip replacements












BENSALEM, Pa. (AP) — To make the high school cheerleading team 40 years ago, twins Deborah and Sandra Fanelli performed an acrobatic move called “the flying splits.”


The memory recently drew a rueful laugh from the once-active sisters, who in recent years have had trouble simply walking.












Severe arthritis has nearly crippled Sandra, known as Sam, who uses a walker. Deb has relied on a cane.


But on Friday, the 56-year-old twins — who have lived their entire lives together — were wheeled into side-by-side operating rooms at Rothman Orthopaedic Specialty Hospital in the Philadelphia suburb of Bensalem.


Deb received a right hip replacement and Sam had surgery on both hips as part of Operation Walk USA. The program offers free knee and hip replacements to uninsured patients like the Fanellis.


“I’m just incredibly grateful and in awe of this procedure,” Sam said, just hours after surgery as she took her first steps down a hospital corridor to visit her sister.


Doctors, hospitals and implant manufacturers donate time and equipment for the procedures. A hip replacement would normally cost about $ 16,000, plus hospitalization, according to Rothman officials.


The program started in the mid-1990s to serve patients in developing countries but has been offered in the U.S. for only the past two years. The Fanelli twins were among five patients at Rothman, and among 200 people nationwide, receiving free new joints on Friday.


The sisters had become increasingly debilitated with arthritis after dancing and singing professionally for 20 years, including eight years at a casino in Atlantic City, N.J.


They have been living in their childhood home in Clementon, N.J., with their spry and doting 81-year-old mother, Blanche, who has watched with alarm as her daughters’ conditions have deteriorated.


“Because I’m not a young person,” Blanche said in an interview Thursday. “And I thought, oh my gosh, who’s going to take care of them?”


Over the past few years, Sam has run a small gourmet cookie business out of the house and Deb has sold cosmetics. But their outings have been minimal, limited mainly to the grocery store and their parish church.


“It’s hard to even get up some days,” Deb said. “The hip pain and the limitations have robbed us of our freedom and robbed us of our, just, mental joy, to get up and live.”


Sam’s problems started about 10 years ago. One hip became so painful that their father paid for an experimental replacement procedure in 2003, but Sam saw little improvement. Deb’s leg gave out a couple of years later and has gotten progressively worse. The twins have never had health insurance.


Then earlier this year, a friend told them about Operation Walk USA. The family was overcome with joy when they found out both sisters qualified for free surgery.


Dr. Bill Hozack, who gave Sam a new left hip and fixed the old replacement on her right hip, said the operations went well.


“Assuming everything heals properly, no complications — which is usually the case — they should be able to go out and do everything they want to do and not have any problems with the hips,” Hozack said.


For now, the sisters must recover and begin re-learning to walk on their new joints. After a tearful reunion in Deb’s hospital room Friday afternoon, they said they looked forward to this new phase in their lives.


“I’m flabbergasted. I’m overwhelmed,” Deb said. “The worst is behind us. We’re going to be great.”


A day earlier, the twins had said one of their first goals is to participate this spring in a fundraising walk for ovarian cancer, in memory of a dear friend.


“The first year we went to participate, we had to sit on the sidelines and just kind of watch everybody,” Deb said. “So this year, we want to get out there and walk.”


“Definitely,” added Sam. “I can’t wait.”


___


Online:


http://www.opwalkusa.com


___


Follow Kathy Matheson at www.twitter.com/kmatheson


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‘Fiscal cliff’ woes could extend into 2014-BofA












CHARLOTTE, North Carolina (Reuters) – If the United States goes off the “fiscal cliff” and stays there for too long, the economy could suffer into 2014, Bank of America Corp’s head of commercial banking says.


Concern about the so-called fiscal cliff is already causing mid-sized businesses to pause activity and to issue special dividends ahead of possible tax increases, Laura Whitley said in an interview this week.












“It will push you into planning season when people are thinking about not 2013 but 2014,” Whitley said.


The “fiscal cliff” is a $ 600 billion combination of steep tax hikes and deep spending cuts that will kick in next year unless Congress intervenes.


Whitley remains confident that her business will continue to increase total loans, a bright spot for a bank still struggling to recover from the financial crisis.


“We will finish the year strong,” she said.


In some cases, the “fiscal cliff” is actually providing a boon to the bank because customers are using debt to finance their dividend payments. Whitley’s group works with public and private companies.


Bank of America‘s total loans in the third quarter fell 4 percent from a year ago to $ 893 billion as the No. 2 U.S. bank by assets continued to shed unwanted consumer mortgages. But commercial loans, including ones made to large corporations, climbed 7 percent to $ 330.8 billion.


After a year of building capital to meet new international requirements, Bank of America CEO Brian Moynihan said at an investor conference this week that he is pushing his team to make more loans.


Whitley, 51, has led Bank of America’s commercial banking business since the fall of 2011, when the previous head, David Darnell, became co-chief operating officer, overseeing consumer banking and wealth management.


Over a nearly 30-year career at the bank and predecessor companies, she has held posts in middle-market banking, investment banking and wealth management. In 2011, she was also one of the leaders steering a company-wide cost-cutting program called Project New BAC.


Whitley’s unit provides mid-sized businesses with loans, cash management services and other products. In a presentation this week, the bank said lending and treasury management services for commercial customers with revenues between $ 50 million and $ 2 billion brought in $ 6.1 billion in revenue in the first nine months of the year, nearly one-tenth of the company’s total.


The growth comes in a year in which the bank eliminated an undisclosed number of jobs in the commercial lending unit as part of New BAC. The unit, which has just under 5,000 employees, is not planning any more cuts and is now adding 50 lenders in key markets such as Colorado, Georgia and Florida, she said. The bank is also adding staff in sectors such as new media and energy.


Commercial lending has been a growth area for many banks, so Bank of America has faced competition for loans and for employees. Earlier this year, JPMorgan Chase & Co hired some of its bankers as part of an expansion into Bank of America’s hometown of Charlotte, North Carolina.


“At that time I think we were more vulnerable because it was the middle of New BAC and people were concerned about what would that mean for our business,” Whitley said. “The business was very sound.”


(Reporting by Rick Rothacker in Charlotte, North Carolina; Editing by Dan Grebler)


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No Grammy love for Justin Bieber, One Direction












LOS ANGELES (Reuters) – Irate fans of Justin Bieber and boy band One Direction took to social media on Thursday to voice their outrage after being snubbed by the Grammys for a chance to win the biggest honors in the music industry.


Indie-pop band fun and rapper Frank Ocean led the 2013 nominations, tying with The Black Keys, Mumford & Sons, Jay-Z and Kanye West for six nods. But The Recording Academy overlooked some of the year’s biggest and most commercially successful artists in Wednesday’s nominations.












While Bieber, 18, who won three American Music Awards in November, stayed quiet on his omission, his manager Scooter Braun took to Twitter.


“Grammy board u blew it on this one. the hardest thing to do is transition, keep the train moving. The kid delivered. Huge successful album, sold out tour, and won people over. … This time he deserved to be recognized,” Braun posted in a series of tweets.


Many of Bieber’s 31 million Twitter fans quickly followed suit, with hashtags such as #BieberForGrammys trending on the micro-blogging service.


The Canadian singer, who has never won a Grammy, in June released album “Believe,” showcasing a more grown-up image. The album, which produced top 10 hits “Boyfriend” and “As Long As You Love Me,” has sold more than 1.1 million copies.


British boy band One Direction was also left empty-handed despite their debut album “Up All Night” having topped the Billboard 200 album chart.


The quintet has performed sold-out shows across the world and won three MTV video music awards earlier this year.


The Grammy Awards are voted on by members of The Recording Academy and recognize achievement in 81 categories.


Lady Gaga, rapper Nicki Minaj and Korea’s Psy also failed to snag any nominations.


While Gaga hasn’t released new music this year, focusing on her global tour, Minaj released “Pink Friday: Roman Reloaded,” which topped the Billboard 200 chart and spawned singles such as “Starships.”


Psy may have YouTube’s most watched video ever with “Gangnam Style,” – over 897 million views – but he missed out on becoming the first Korean artist to receive a Grammy nod.


The Grammy Awards will be handed out at a live performance show and ceremony on February 10 in Los Angeles.


(Reporting By Piya Sinha-Roy; editing by Jill Serjeant and Todd Eastham)


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Actor Stephen Baldwin charged in NY tax case












WHITE PLAINS, N.Y. (AP) — Actor Stephen Baldwin was charged Thursday with failing to pay New York state taxes for three years, amassing a $ 350,000 debt.


Rockland County District Attorney Thomas Zugibe said Baldwin, of Upper Grandview, skipped his taxes in 2008, 2009 and 2010.












The youngest of the four acting Baldwin brothers pleaded not guilty at an arraignment and was freed without bail. His lawyer, Russell Yankwitt, said Baldwin should not have been charged.


“Mr. Baldwin did not commit any crimes, and he’s working with the district attorney‘s office and the New York State Tax Department to resolve any differences,” Yankwitt said.


The district attorney said Baldwin could face up to four years in prison if convicted. The actor is due back in court on Feb. 5.


Zugibe said Baldwin owes more than $ 350,000 in tax and penalties.


“We cannot afford to allow wealthy residents to break the law by cheating on their taxes,” the district attorney said. “The defendant’s repetitive failure to file returns and pay taxes over a period of several years contributes to the sweeping cutbacks and closures in local government and in our schools.”


Thomas Mattox, the state tax commissioner, said, “It is rare and unfortunate for a personal income tax case to require such strong enforcement measures.”


Baldwin, 46, starred in 1995′s “The Usual Suspects” and appeared in 1989′s “Born on the Fourth of July.” He is scheduled to appear in March on NBC’s “The Celebrity Apprentice.”


His brothers Alec, William and Daniel are also actors.


A bankruptcy filing in 2009 said Stephen Baldwin owed $ 1.2 million on two mortgages, $ 1 million in taxes and $ 70,000 on credit cards.


In October, Baldwin pleaded guilty in Manhattan to unlicensed driving and was ordered to pay a $ 75 fine. Earlier this year, he lost a $ 17 million civil case in New Orleans after claiming that actor Kevin Costner and a business partner duped him in a deal related to the cleanup of the 2010 Gulf of Mexico oil spill. The actors and others had formed a company that marketed devices that separate oil from water.


Baldwin co-hosts a radio show with conservative talk figure Kevin McCullough.


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Amarin raises funding for heart drug, partnership worries pull down shares












(Reuters) – Biopharmaceutical company Amarin Corp Plc said it raised $ 100 million in non-equity financing that will help it form a sales force to launch its heart drug Vascepa, but disappointed investors hoping for a sale or partnership.


Amarin shares fell 22 percent in extended trade, after closing at $ 11.95 on the Nasdaq on Thursday.












“(Strategic) discussions are still quite active but at some point we’ve got to move forward,” CEO Joseph Zakrzewski said on a conference call with analysts.


Israel’s Calcalist financial daily said in November that the world’s largest generic drugmaker Teva Pharmaceutical Industries and British drugmaker AstraZeneca were both looking to buy the company.


The U.S. Food and Drug Administration in July approved Vascepa capsules alongside diet to reduce triglyceride levels — a blood fat that contributes to heart disease — in adult patients with severe hypertriglyceridemia.


Amarin said Thursday it will hire 250 to 300 sales professionals to launch Vascepa in the first quarter of 2013.


The decision to hire a sales force implied that Amarin is ready to go it alone, analyst Jon LeCroy of MKM Partners said, adding that this is being viewed negatively by investors.


“With the backing of a major pharmaceutical company, there will be sales reps available as well as more dollars to market the product. So the assumption would be that it could be a much bigger product if a bigger company sells it,” LeCroy said.


WAITING ON EXCLUSIVITY


Amarin had earlier indicated that the FDA decision on Vascepa’s marketing exclusivity would have an impact on whether the company gets acquired, forms a partnership on the drug, or sells the heart pill on its own.


Amarin is awaiting a decision from the regulator regarding a new chemical entity (NCE) status for Vascepa, which will grant the company marketing exclusivity for five years. The pill is also patent protected until 2030.


LeCroy said with an NCE most major pharmaceutical companies would be interested in Amarin, given that the status guarantees some minimum exclusivity compared with patents that can be challenged.


The company is planning to price Vascepa on par with GlazoSmithKline’s competing Lovaza, CEO Zakrzewski said on the call.


He added that reimbursement for the drug will be available to most managed care clients by the time of its launch.


The financing deal for the hybrid debt-like instrument was made with an investment fund managed by Pharmakon Advisors.


(Reporting By Vrinda Manocha and Balaji Sridharan in Bangalore; Editing by Don Sebastian and Anthony Kurian)


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Toronto mayor to stay in power pending appeal of ouster












TORONTO (Reuters) – Toronto Mayor Rob Ford can stay in power pending an appeal of a conflict of interest ruling that ordered him out of his job as leader of Canada’s biggest city, a court ruled on Wednesday.


Madam Justice Gladys Pardu of the Ontario Divisional Court suspended a previous court ruling that said Ford should be ousted. Ford’s appeal of that ruling is set to be heard on January 7, but a decision on the appeal could take months.












Justice Pardu stressed that if she had not suspended the ruling, Ford would have been out of office by next week. “Significant uncertainty would result and needless expenses may be incurred if a by-election is called,” she said.


If Ford wins his appeal, he will get to keep his job until his term ends at the end of 2014. If he loses, the city council will either appoint a successor or call a special election, in which Ford is likely to run again.


“I can’t wait for the appeal, and I’m going to carry on doing what the people elected me to do,” Ford told reporters at City Hall following the decision.


Ford, a larger-than-life character who took power on a promise to “stop the gravy train” at City Hall, has argued that he did nothing wrong when he voted to overturn an order that he repay money that lobbyists had given to a charity he runs.


Superior Court Justice Charles Hackland disagreed, ruling last week that Ford acted with “willful blindness” in the case, and must leave office by December 10.


Ford was elected mayor in a landslide in 2010, but slashing costs without cutting services proved harder than he expected, and his popularity has fallen steeply.


He grabbed unwelcome headlines for reading while driving on a city expressway, for calling the police when a comedian tried to film part of a popular TV show outside his home, and after reports that city resources were used to help administer the high-school football team he coaches.


The conflict-of-interest drama began in 2010 when Ford, then a city councillor, used government letterhead to solicit donations for the football charity created in his name for underprivileged children.


Toronto’s integrity commissioner ordered Ford to repay the C$ 3,150 ($ 3,173) the charity received from lobbyists and companies that do business with the city.


Ford refused to repay the money, and in February 2012 he took part in a city council debate on the matter and then voted to remove the sanctions against him – despite being warned by the council speaker that voting would break the rules.


He pleaded not guilty in September, stating that he believed there was no conflict of interest as there was no financial benefit for the city. The judge dismissed that argument.


In a rare apology after last week’s court ruling, he said the matter began “because I love to help kids play football”.


Ford faces separate charges in a C$ 6 million libel case about remarks he made about corruption at City Hall, and is being audited for his campaign finances. The penalty in the audit case could also include removal from office.


(Reporting by Claire Sibonney; Editing by Janet Guttsman, Russ Blinch, Nick Zieminski; and Peter Galloway)


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Negotiators see glimmers of progress on farm bill












WASHINGTON (Reuters) – With a week left to act, agricultural leaders in Congress are still deadlocked on two major issues for a new U.S. farm bill, cuts in crop subsidies and reductions in food stamps, said two of the four key negotiators on Thursday.


But the leaders of the House and Senate agriculture committees suggested that recent talks had yielded at least some progress.












Without reauthorization, U.S. farm policy would revert to the provisions of the Agricultural Act of 1949, the last “permanent” farm bill and one crafted for an entirely different U.S. economy.


Among other things, if lawmakers do not agree on a new bill, milk prices in U.S. grocery stores could double next month under terms of the fall-back statute which would also limit plantings while pushing up farm subsidies by billions of dollars.


A new farm bill would now likely be absorbed into an overall budget-cutting bill that could avert the looming “fiscal cliff” of tax increases and spending cuts. Farm spending cuts of $ 23 billion to $ 35 billion have been floated.


In speeches at a farm policy conference in Washington on Thursday, the leaders of the House and Senate Agriculture committees were adamant the final version of the five-year, $ 500 billion bill must include elements that are lightning rods for controversy.


Congress is scheduled to adjourn for the year on December 14, although top Republicans have said it will not adjourn until a solution to the fiscal cliff has been announced.


“I would rather have nothing” than a farm bill that does not give farmers the option of price supports, said House Agriculture chairman Frank Lucas. “You need to give our producers a choice.”


The Senate version of the farm bill, passed in June with proposed spending cuts totaling $ 23 billion, would replace traditional farm subsidies with an insurance-like program that compensates grain and oilseed growers when revenue from a crop is more than 11 percent below average.


Senate Agriculture chairwoman Debbie Stabenow said on Thursday that there were strong differences between the House and Senate versions.


“I would never accept what the House did” in slashing $ 16 billion in funding for food stamps, the steepest cuts in a generation for a program that helps millions of lower-income Americans keep food on the table.


The Senate bill would cut food stamps by $ 4 billion.


Nonetheless, Lucas and Stabenow said a compromise may be agreed upon in time to become part of a must-pass deficit bill.


An Oklahoma Republican, Lucas said “a lot of progress” has been made in closed-door discussions among the four leaders of the committees. Stabenow, a Michigan Democrat, echoed that sentiment.


“I am very encouraged by the negotiations … If people of good will sit around the table, you can work it out,” she said.


There are some areas of agreement. Both sides would cut conservation spending by $ 6 billion and crop subsidies by more than $ 13 billion, partly by ending direct-payment subsidies now issued regardless of need.


They also would expand the federally subsidized crop insurance system, now the largest strand in the farm safety net, and convert cotton subsidies to an insurance program, which would resolve a World Trade Organization ruling against the U.S. cotton program.


Still, farm subsidies and food stamps are the chief disputes. And Lucas said a transition period may be needed to allow time to put the new law into effect.


He left open the possibility of another round of the $ 5 billion-a-year direct payment program, depending on the savings demanded by congressional leaders.


The precise target for farm spending cuts may be determined as part of high-level deal-making between the White House and Congress. The White House has suggested cuts of $ 32 billion, for example, including reduction in crop insurance.


(Reporting by Charles Abbott; editing by Ros Krasny and Jim Marshall)


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