The farm bill that emerged last week from a House-Senate compromise effort still does too little to curb massive subsidies. The $300 billion measure would govern farming for the next five years, continuing to distort agricultural practices while burdening taxpayers with unnecessary costs. If Congress does not send this plan back to the drawing board, President Bush should veto it.

Under the compromise, growers of commodities such as corn, soybeans and cotton would be subject to a cap on direct payments. But the caps are far too generous: Individuals could earn up to $750,000 and still qualify for payments; married couples could earn up to $1.5 million. As usual, most of the aid would go to large operations.

The bill spreads needless largess elsewhere too. For instance, a tax break for race-horse owners is included!

Negotiators for the House and Senate agriculture committees appear to have been working in a sealed underground chamber. Gasoline and food prices are soaring, foreclosures are mounting, and the nation is knee-deep in two costly wars. In addition, the subsidy system aids corporate farming practices that lead to illness and degrade national resources. The nation badly needs a more rational, affordable farm policy.

It is true that two-thirds of the bill’s costs would go to nutrition programs. Fortunately, Americans receiving Food Stamps will see their allotments bolstered, and food banks will receive more revenue. Also helpful, healthy snack programs for schoolchildren, emphasizing fresh fruits and vegetables, will grow.

The misbegotten tax credit for producers of corn-based ethanol will be decreased, but by only 6 cents a gallon. More money would go toward cellulosic ethanol, made of such non-edible materials as certain grasses and plant waste. But, in view of the growing worldwide demand for both food and energy, the shift is too modest.

If the farm bill cannot be reformed at a time when farmers are enjoying record high prices for their crops, when will it happen? The American economy faces deep, multiple challenges.

This is no time to binge on “help” where it is not needed, such as for agri-business plutocrats. Surely Congress can come up with a better balance.