[Congressional Record Volume 141, Number 197 (Tuesday, December 12, 1995)]
[Senate]
[Pages S18442-S18443]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HEFLIN:
  S. 1468. A bill to extend and improve the price support and 
production adjustment program for peanuts, to establish standards for 
the inspection, handling, storage, and labeling of all peanuts and 
peanut products sold in the United States, and for other purposes, to 
the Committee on Agriculture, Nutrition, and Forestry.


             the heflin-rose peanut improvement act of 1995

 Mr. HEFLIN. Mr. President, I introduce the Heflin-Rose Peanut 
Program Improvement Act of 1995.
  Auburn University recently released a study based on the same 
economic impact model employed by the Base Closure and Realignment 
Commission to determine the effects of various proposals that were 
being considered before the Lugar-Armey peanut program compromise was 
reached and made part of the Roberts farm bill, which is part of the 
budget reconciliation bill. Using the figures and calculations of the 
Auburn report, the Lugar-Armey compromise would result in an industry-
wide, negative economic impact totalling $375 million and will cause 
the loss of 5,400 jobs throughout the peanut industry.
  While the Lugar-Armey compromise is touted as an effort to achieve a 
no-net-cost program, in reality it will cost taxpayers $60 million over 
7 years. As a matter of fact, the Lugar-Armey compromise actually kills 
the program over 7 years, encourages peanut imports, and cuts peanut 
farmer income by nearly 30 percent.
  Congressman Charlie Rose and I have worked on a peanut program which 
we feel is a much better bill. This proposal guarantees a no-net-cost 
program saves some $43 million above what the Lugar-Armey compromise 
saved. Our cost savings come from making foreign importers of peanuts 
pay the same assessments that U.S. peanut farmers have to pay and uses 
this money to offset the cost of the peanut program. In addition, to 
imposing assessments on importers, our proposal directs that the NAFTA 
and 

[[Page S18443]]
GATT revenue derived from imported peanuts go toward paying for the 
peanut program rather than reducing farmer income.
  The Heflin-Rose peanut program refrains from reducing farmer income 
by cutting the loan rate, and therefore, maintains the current law loan 
rate for quota and additional peanuts. Unlike the Lugar-Armey peanut 
program, which would allow unlimited cross-country transfers, the 
Heflin-Rose bill also measure infrastructure stability by permitting 
only limited transfers across county lines.
  Furthermore, our legislation addresses health and food safety 
concerns due to the increased level of imports resulting from GATT and 
NAFTA. The American peanut farmer is held to the highest safety and 
inspection levels of any domestically-produced commodity. To not 
require at least an equivalent level of protection from foreign-grown 
peanuts jeopardizes American consumers.
  For example, the Heflin-Rose bill requires that foreign-grown peanuts 
be inspected to determine whether or not they were produced with 
pesticides and other chemicals banned for use in this country. This 
legislation applies the same standards for quality, freedom from 
aflatoxin and procedures for the inspection and entry of imported 
peanuts that currently apply to domestically-produced peanuts under 
Marketing Agreement No. 146.
  Peanut farmers strongly support achieving a no-net-cost peanut 
program. However, this goal can be achieved without slashing farmer 
income and with consideration to the economic costs on the communities 
that work and depend on the production of peanuts. If the Republicans 
are serious about deficit reduction, then this is a plan that saves a 
significant amount above their proposal, ensures a no-net-cost peanut 
program, and preserves farmer income while safeguarding American 
consumers with food safety provisions for imported peanuts and peanut 
products.
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