In the wake of House Agriculture Committee Chair Collin Peterson's subcommittee revolt over farm program payments his subcommittee surprised him last week by approving an extension of 2002 commodity payments non-agriculture committee members say without cuts in subsidy payments to pay for new initiatives in conservation, energy and nutrition programs, floor consideration of the Farm Bill will be a battle royal. It's now expected Peterson may bring two versions of the omnibus package to the full committee when it begins markup, likely the week of July 16. One version would be his preferred approach, a draft bill within the budget constraints set by House rules, but which cuts crop subsidy programs, limits overall payments to farmers and uses the cuts to pay for new programs. The other would extend farm programs as they are, but allocate $20 billion in reserve funding to new initiatives. Peterson continues to talk with House Speaker Nancy Pelosi (D, CA) about offsets to pay for new initiatives, including money for fruits and vegetable grower programs important to Pelosi's state, but so far only offsets for cellulosic ethanol research and processing plants has been forthcoming. The lack of dollars to meet the "pay-go" rules of the House means the push to waive that rule is growing. However, non-ag committee members are unlikely to go along with a budget waiver simply because Peterson can't get consensus within his committee.