[Congressional Record Volume 140, Number 40 (Thursday, April 14, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 14, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                  THE USDA REORGANIZATION ACT OF 1994

  Mr. SIMPSON. Madam President, I rise in support of S. 1970, the USDA 
Reorganization Act of 1994 which we passed overwhelmingly yesterday. I 
favor the important efforts to reorganize the Department of 
Agriculture. This bill will ultimately result in a new and improved 
USDA. The Department will now more effectively deliver farm service 
programs to its customers while remaining true to the mandated mission 
of the Department--no more shoe-box accounting methods.
  I particularly commend the distinguished chairman and ranking member 
of the Senate Agriculture Committee for their diligence over the past 2 
years to make this much needed reorganization a reality. A very 
significant portion of the bill was the establishment of the Farm 
Service Agency, a new single agency that will provide commodity price 
and income support, farm loans and crop insurance to eligible farmers. 
I supported this concept 2 years ago when Senator Lugar began his 
crusade to determine whether the 1930's-style Department of Agriculture 
was still effectively serving American farmers. I am most pleased with 
the results of his efforts. The new agency will include the Agriculture 
Stabilization and Conservation Service (ASCS), farmers programs located 
in the Farmers Home Administration (FmHA) and the Federal Crop 
Insurance Corporation (FCIC).
  I have serious concerns with the Senate's reorganization of the 
USDA's Delivery of Rural Development Programs. The Rural Utilities 
Service will combine the electric and telephone programs of the Rural 
Electrification Administration (REA) with the water and sewer programs 
of the Rural Development Administration (RDA). The Rural Community 
Development Service will include FmHA rural housing programs as well as 
RDA and REA rural community loan programs.
  This effort is clearly an extraordinary scheme to expand the mission 
of the REA, an agency that has surely fulfilled its original mission. 
The co-ops will now have full authority to deliver not only electric 
and telephone services, but housing, water and sewage and economic 
development programs in rural America. The REA will no longer just be 
providing electricity and light to rural America, but flushing toilets, 
too--and trying to expand into health care too. This should not stand.
  I appreciate the cooperation of the chairman and ranking member for 
their efforts in correcting a major flaw in the reorganization act by 
their acceptance of my amendment. The bill would have given the 
Secretary extensive authority to alter, discontinue, and consolidate 
any function of the Department of Agriculture. This broad-based 
authority for the Secretary could have led to elimination of important 
agricultural programs. This flaw has now been corrected.
  I look forward to introducing a bill in the coming weeks that will 
address many of my concerns with the expansion of Rural Electrification 
Administration authorities into areas in which electric co-ops have no 
expertise--housing, water and sewage, economic development, and health 
care to name a few. The commitment of my fine friend and colleague from 
Alabama, Senator Howell Heflin to hold hearings in his Subcommittee on 
Rural Development and Rural Electrification is so very much 
appreciated.
  I believe a major stride has been made towards exposing the sweet 
deal rural cooperatives have in regard to their use of Federal funds. I 
look forward to working with the members of the Senate Agriculture 
Committee in the future to correct these problems.

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