However, there is still a possibility it will be vetoed by President George Bush who says it does not go far enough in reducing support and protection for American farmers.

It is a view shared by Mr Crean, who says the "Farm Bill fails the reform test".

"It entrenches the welfare approach to farm policy in the United States," Mr Crean said.

"It is particularly disappointing that the Bill increases government hand-outs rather than reduces support for agriculture at a time of record commodity prices and farm incomes in the United States.

"The Bill is short-sighted, reactive and a lost opportunity.

"I am especially concerned about the Bill’s negative impact on Australia's highly competitive agricultural exporters which do not rely on ongoing subsidies."

Mr Crean says the US move to make subsidies more easily available to US farmers included for commodities like wheat, barley and sugar, while imposing discriminatory charges against Australian dairy exporters affect would affect our competitiveness in world markets.

"I have registered with Congress during my recent visit to Washington the importance of the US taking this opportunity to reform its farm subsidies," Mr Crean said.

"I have also argued that implementing market-oriented farm policies – as Australia has done – would create significant new opportunities for US and global agriculture."

Mr Crean says the Bill ups the stakes for a successful conclusion to the WTO Doha Round this year.

"A strong Doha outcome on domestic support will impose limits on US spending that the President wants but the Congress won't impose," he said.

"It is now critical that we press ahead to conclude a Doha Round that limits trade distorting farm subsidies.

"Producers and consumers from around the world will ultimately benefit from a reduction in such trade distorting support."