[Congressional Record Volume 141, Number 91 (Tuesday, June 6, 1995)]
[Extensions of Remarks]
[Pages E1164-E1165]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


     HOOSIER FARMERS URGE CONTINUED SUPPORT FOR EXPORTS AND RESEARCH

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                          Tuesday, June 6, 1995
  Mr. HAMILTON. Mr. Speaker, I rise today to call attention to the 
results of my 1995 farm bill questionnaire. The questionnaire responses 
indicate most Hoosier farmers are willing to accept less funding for 
farm programs, but only in the context of broader spending reductions. 
While farm programs should not be singled out for funding cuts, I am 
pleased--but not surprised--that Hoosier farmers are willing to do 
their fair share to balance the budget. Among the different 
agricultural programs, cuts in crop support payments received the 
broadest acceptance, with nearly 63 percent favoring reductions.
  Hoosier farmers gave their strongest support to funding for promoting 
U.S. exports and agricultural research and education. I agree with this 
shift in priorities. The 1995 farm bill should be more market-oriented 
while preserving our competitive edge in world markets.
  Of those responding, 64 percent had participated in Federal farm 
programs in the last 5 years, 75 percent of whom received 10 percent or 
less of their yearly farm revenue from direct payments. Farmers also 
expressed their support for limiting farm payments for wealthier 
farmers, while rejecting proposals to guarantee all farmers a minimum 
income. Hoosiers also support Congress' decision last year to abolish 
the Disaster Assistance Program.
  I thank the many Hoosiers who answered the questionnaire, and I 
appreciate their careful consideration of these important agricultural 
issues.
                         questionnarie results

(The results may not add up to 100 percent due to rounding and multiple 
                              responses.)

       1. What general policy direction do you favor for the 1995 
     farm bill?
                                                              (percent)
Extend current programs............................................13.3
Extend current programs with changes...............................37.6
Replace with an alternative........................................13.7
Eliminate farm programs............................................35.4

       2. Current federal spending on programs that directly 
     benefit farmers is approximately $18.8 billion per year. The 
     overall level of funding is likely to decrease for 1996, and 
     Congress may reorganize spending priorities among the 
     following programs. For each category please indicate whether 
     you think spending should be increased, decreased, or kept 
     the same.

------------------------------------------------------------------------
                                                                  Don't 
                                  Increase    Same    Decrease    know  
------------------------------------------------------------------------
Commodity support programs......       8.6      26.1      62.7       2.6
Conservation reserve program....       8.9      33.8      55.0       2.3
Research and extension..........      19.5      39.0      39.0       3.4
Other conservation programs.....       1.4      31.1      54.4       5.7
Export promotion activities.....      27.9      36.5      31.8       3.9
Crop insurance..................      10.0      33.5      50.8       5.8
Farm credit programs............       9.3      31.1      52.0       7.5
------------------------------------------------------------------------

       3. If commodity programs must be reduced, which of the 
     following deficit-cutting options would you favor?
                                                              (percent)
Cutting target prices..............................................12.1
Raise acreage reserve program (ARP) levels.........................11.0
Raise loan rates...................................................12.9
Reduce $50,000 payment limitation cap..............................38.8
Establish income ceiling...........................................48.7

       4. Some farm groups have suggested abolishing all current 
     farm programs and using the funds for an income support level 
     of 70 percent of each farmer's historical income. Farmers 
     would then be free to farm according to their interpretation 
     of the markets, with the assurance that in a bad year they 
     would receive no less than 70 percent of their usual income. 
     Do you:
                                                              (Percent)
Favor this concept.................................................21.9
Favor this concept with changes....................................16.6
Oppose this concept................................................60.4

       5. The Conservation Reserve Program [CRP] pays farmers a 
     yearly fee per acre to keep certain land out of production. 
     The program decreases soil erosion, encourages wildlife and 
     boosts commodity prices by controlling supply. CRP expires 
     this year. Should Congress:
                                                              (Percent)
Continue CRP as is.................................................26.2
Focus payments on more environmentally sensitive areas.............22.6
Phase out CRP......................................................35.3
Allow more acres in CRP with reduced payments......................15.9

       6. There are growing concerns among consumers about the 
     possible effects of pesticide use on the environment and 
     public health. If pesticide use should be monitored, which 
     one of the following proposals would you most support?
                                                              (Percent)
Promote extension programs to curb pesticide use...................22.5
Establish more controls over pesticide use..........................8.7
Provide more incentives for alternative farming practices..........36.1
Do not change current policy.......................................32.8

       7. The Ad Hoc Disaster Assistance Program has been replaced 
     by a much broader Federal crop insurance program. Instead of 
     irregular and expensive disaster payments, farmers in USDA 
     programs will now enroll in a basic catastrophic insurance 
     policy, with subsidies to provide more comprehensive 
     insurance. Which of the following options do you favor?
                                                              (Percent)
Keep the current system............................................33.9
Return to the ad hoc disaster payments..............................5.6
Modify the current crop insurance system...........................35.7
Eliminate all federal emergency assistance.........................24.8

       8. The Uruguay round of the General Agreement on Tariffs 
     and Trade [GATT] reduces agricultural subsidies in foreign 
     countries. Because U.S. subsidies are already far lower than 
     our competitors', other countries will make larger cuts in 
     their farm programs. Would you favor further reductions in 
     worldwide farm subsidies, even if some commodity prices and 
     U.S. farm programs might be reduced?
                                                              (Percent)
Yes................................................................49.7
No.................................................................19.2
Don't know.........................................................31.1

       9. Food and nutrition programs are often described as 
     ``indirect'' farm programs because they increase food 
     purchases by some $30 or $60 billion per year. They are also 
     a source of urban support for the farm bill. Which of the 
     following food and nutrition proposals do you most favor?

[[Page E1165]]

                                                              (Percent)
Continue current funding for food programs.........................40.3
Increase funding for food programs..................................7.2
Reduce funding for food programs...................................30.7
Eliminate food programs............................................19.7
Allow cash payments instead of food programs........................2.0


       10. Have you participated in the Federal farm programs over 
     the last 5 years?
                                                              (percent)
Yes................................................................64.4
No.................................................................35.6

       11. If yes, about what percentage of your yearly farm 
     revenue came from Federal farm programs?
                                                              (percent)
0 to 5 percent.....................................................50.2
5 to 10 percent....................................................24.9
10 to 15 percent....................................................8.7
15 to 20 percent....................................................2.7
20 to 50 percent....................................................2.7
More than 50 percent...............................................10.9

       12. Overall, do you think you are better off, worse off, or 
     about the same economically as you were 5 years ago? Better 
     off--21.7 percent; Worse off--35.8 percent; and About the 
     same--42.4 percent.
       13. How do you think you will be doing 5 years in the 
     future? Better off--19.9 percent; Worse off--37.2 percent; 
     and About the same--42.9 percent.