[Congressional Record Volume 142, Number 45 (Thursday, March 28, 1996)]
[Senate]
[Pages S3037-S3039]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AGRICULTURAL MARKET TRANSITION ACT--CONFERENCE REPORT
The PRESIDING OFFICER. Under the previous order, the Senate will
resume consideration of the conference report to accompany H.R. 2854,
which the clerk will report.
The assistant legislative clerk read as follows:
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
2854) a bill to modify the operation of certain agricultural
programs, having met, after full and free conference, have
agreed to recommend and do recommend to their respective
Houses this report, signed by a majority of the conferees.
The Senate resumed consideration of the conference report.
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The PRESIDING OFFICER. The Senator from Indiana [Mr. Lugar], is
recognized.
Mr. LUGAR. Mr. President, yesterday in the beginning of the debate on
the farm bill conference report, much of the debate centered upon title
I, which is the Agricultural Market Transition Program. And, indeed,
this is an extraordinarily important title for producers in this
country. Senators reviewed the fact that the new farm bill will offer
maximum flexibility to farmers in choosing what crops to plant and how
many acres they will plant to meet market conditions in this country
and in the world.
Likewise, the nonrecourse marketing assistance loans will remain.
They are a safety net, as well as a method of managing income and
operations, for producers.
Not mentioned yesterday, but clearly still in the farm bill, is a
peanut program, modified somewhat during debate in both the House and
the Senate, a sugar program and a milk price support and marketing
order program. The Federal Dairy Export Program, the northeast dairy
compact, payment limitations, commodity credit all come under this
title I, the Agricultural Market Transition Program. I have no doubt,
Mr. President, there will be more debate on that issue this morning.
But I want to center on additional aspects of the farm bill that are
extraordinarily important to all Americans.
Title II, the trade title, contains Public Law 480 and related
programs. The conference report reauthorizes Food for Peace and allows
private sector participation for the first time. The Food Security
Wheat Reserve is renamed the ``Food Security Commodity Reserve'' to
reflect that corn, rice, and sorghum are added as eligible commodities.
A 4-million-metric-ton cap is placed on the reserve and access to
reserve commodities is made easier.
Mr. President, there is also a provision for agricultural trade. The
conference agreement reauthorizes several trade and export programs,
with additional emphasis on high-value and value-added products. The
Secretary is directed to monitor compliance with the agriculture
provisions of the Uruguay round agreement of GATT and report violations
to the United States Trade Representative. Agriculture producers are
given additional protection against economic effects of agricultural
embargoes.
In addition, several unnecessary and outdated provisions of Federal
agricultural trade law are repealed.
The trade title contains a market access program. The Market
Promotion Program is renamed the ``Market Access Program'' to more
accurately reflect program goals. Expenditures are capped at $90
million per year, and reforms are implemented to restrict participation
to small businesses, farmer-owned cooperatives, and agricultural
groups.
The Export Enhancement Program is contained in title II. EEP
expenditures are capped at $350 million a year in 1996; $250 million in
1997; $500 million in 1998; $550 million in 1999; $579 million in 2000;
$478 million in 2001 and 2002.
For the years 2000 to 2002, the funding levels for EEP represent the
maximum allowable expenditures under GATT. In addition, the Secretary
is given authority to subsidize the export of intermediate value-added
products.
Title III of the farm bill contains the conservation programs and,
first of all, of course, is the Conservation Reserve Program, the CRP,
which gives the Secretary authority to enter into new contracts and to
extend CRP contracts. The authorized maximum acreage in CRP is
maintained at 36.4 million acres. It also allows participants to
terminate CRP contracts, except on those lands that are deemed to be of
high environmental value. Funds saved due to termination of contracts
may be used by the Secretary to enroll new lands in the program.
I point out, parenthetically, Mr. President, this arguably is the
largest conservation program, including one of the most important
environmental aspects the Senate will adopt this year.
The Wetlands Reserve Program is retained with modifications to
encourage the use of temporary easements and cost-share restorations.
The Environmental Quality Incentive Program [EQIP], is instituted.
This program targets approximately $1.2 billion over 7 years to assist
crop and livestock producers to deal with environmental and
conservation improvements on their farms. Assistance can be used for
animal waste management facilities, terraces, waterways, filterstrips
or other structural and management practices to protect water, soil,
and related resources. Assistance to individual operations is capped at
$10,000 a year, for a maximum of 5 years. Large operators, as defined
by the Secretary, will be ineligible for assistance.
Other new conservation programs include the Farms for the Future
Program providing $35 million to preserve farmland from commercial
development. A new conservation farm option offers producers an
additional alternative in meeting conservation goals. A Flood Risk
Reduction Program is also included to provide farmers incentives to
take out of production frequently flooded lands.
The Conservation Compliance Reform Program gives producers enhanced
flexibility to modify conservation practices if they can demonstrate
that the new practice achieves equal or greater erosion control.
Variances from conservation compliance can now be granted on account of
adverse weather or disease, and program payment penalties can be
adjusted to be commensurate with the violation.
Swampbuster reform is included in title III. The Natural Resources
Conservation Service is designated to lead Federal agencies in wetlands
delineation and regulation on grazing lands. The agreement stipulates
that current wetlands delineations remain valid until a producer
requests a review. Penalties can now be adjusted to fit the wetlands
violation. Exceptions can be granted for good faith. And wetlands
mitigation options are expanded.
Title IV, a very important title, is the Federal Food Stamp Program.
The conference agreement reauthorizes the Food Stamp Program for 2
years while Congress continues to work on comprehensive welfare reform
legislation.
Mr. President, this issue has come before this body at least twice
before. First of all, in the form of the Balanced Budget Act, where the
food stamp provisions were a part of the farm bill and likewise a part
of welfare reform. The Senate has considered separately welfare reform
with food stamp provisions in that legislation.
As the Chair knows, in the case of both the welfare reform and the
Balanced Budget Act, President Clinton vetoed this legislation.
Therefore, it has been set aside. This farm bill recaptures now and
reauthorizes the Food Stamp Program for 2 years pending action either
in our committee, that is, the Agriculture Committee, or action by the
Congress with regard to welfare reform that might encompass the Food
Stamp Program.
Title V is a miscellaneous title, but an important one in the
collection of programs that come under it. Crop insurance is one of
these programs. The conference agreement eliminates the mandatory
nature of catastrophic crop insurance, but requires producers to waive
all Federal disaster assistance if they opt not to purchase
catastrophic insurance. Dual delivery of crop insurance is eliminated
in those States that have adequate private crop insurance delivery.
The bill corrects a provision of current law by amending the Federal
Crop Insurance Act to include seed crops. Eligibility to purchase crop
insurance is no longer linked to conservation compliance and
swampbuster for producers who choose not to participate in the farm
programs.
The Office of Risk Management is provided for. We establish in this
legislation, within the Department of Agriculture, the Office of Risk
Management to oversee and supervise the Federal Crop Insurance
Corporation. The bill directs the Secretary to establish a business
interruption insurance program that allows producers of program crops
to obtain revenue insurance coverage. The Options Pilot Program is also
extended through the year 2002. The Office of Risk Management is
charged with oversight of these pilot programs.
Mr. President, the farm bill includes an Everglades Agricultural Area
provision. The conference agreement provides $200 million for land
acquisition in the Florida Everglades for the purpose of environmental
restoration. An
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additional $100 million in Federal support will be financed through the
sale or swap of other federally held land in Florida.
The farm bill provides a fund for rural America. And $300 million is
provided for the fund in the years 1997 through 1999. This was a
request of the President of the United States, and the Secretary of
Agriculture placed a high priority on this fund. The Secretary is
required to spend at least one-third of the amount on research and one-
third of the amount on rural development. The other one-third of the
money can be allocated to either purpose at the discretion of the
Secretary. All of the funding must be spent through existing research
and rural development programs.
The Agricultural Quarantine and Inspection provision appears in the
conference report, which amends the Food, Agriculture, Conservation and
Trade Act of 1990 to allow the Secretary to collect and spend fees
collected over $100 million to cover the cost for providing quarantine
and inspection services for imports.
The Safe Meat and Poultry Inspection Panel is created in this farm
bill. The Panel of scientists within the Food Safety and Inspection
Service will be charged with the responsibility of reviewing all
inspection policies from a scientific perspective. The Panel's report
and the Secretary's responses must be published in the Federal
Register. State-inspected meat was discussed in our conference report.
Within 90 days of enactment, the Secretary shall report and recommend
to the Congress the steps necessary to achieve interstate shipment of
State-inspected meat products.
Title VI of the conference report deals with USDA Farm Lending
Program reforms. The conference report redirects farm lending programs
to their original intent. Authority to make loans for a variety of
nonagricultural purposes such as recreation facilities and small
business enterprises is repealed. The Secretary is given authority to
use collection agencies to recover delinquent loans. The agreement
prohibits additional loans to delinquent borrowers and streamlines
procedures for disposal of inventory property. A portion of loan
funding is reserved for new and beginning farmers.
I point out, Mr. President, that that set of provisions comes after
extensive hearings by the Agriculture Committee in which we found that
borrowers sometimes are already delinquent and the Department was
obligated, under previous law, to lend money to them in any event. Some
of these obvious, glaring deficiencies have been corrected. I commend
both committees and the conference for that provision.
Title VII deals with rural development. The Rural Community
Advancement Program is authorized, and the Secretary may provide grants
and direct and guaranteed loans and other assistance to meet rural
development needs across the country. Funding under the Rural Community
Advanced Program will be allocated to three areas: First of all, rural
community facilities; second, rural utilities; and, third, a rural
business and cooperative development. The new program provides greater
flexibility, State and local decisionmaking, and a simplified uniform
application process.
The Water and Waste Water Systems. Authorization for these systems is
increased from $500 million to $590 million.
In telemedicine and distance learning programs, the conference
agreement reauthorizes and streamlines these programs. Under the
programs, the Secretary can make grants and loans to assist rural
communities with construction of facilities and services, to provide
distance learning and telemedicine service. Funding is authorized at
$100 million annually.
Title VIII is the research title. The conference agreement
reauthorizes Federal agricultural research, extension, and education
programs for 2 years. This will allow Congress to continue ongoing
review of these programs and determine how best to use the $1.7 billion
in annual agricultural research, extension, and education spending.
Additional research dollars are made available under this bill through
the fund for rural America that I discussed earlier and which President
Clinton and Secretary Glickman have championed.
Title IX, promotion, the generic commodity promotion program. The
Secretary is directed to establish such a program. Under this program,
interested industries could petition the Department of Agriculture for
the establishment of a promotion program. Currently, each commodity
must receive specific authorization from Congress to have a promotion
program. Recognizing the generic program will not be operational for
some time, the conference agreement authorizes new promotion programs
for popcorn, canola, and kiwi fruit.
The full conference report was printed, I point out, Mr. President,
in the Congressional Record of Monday, March 25, 1996, so that Senators
have had an opportunity to review this conference report. The report
came after discussion of as many as 500 differences between the House
and the Senate bills. During an extensive and constructive conference
of the two bodies last Wednesday and last Thursday, all issues were
resolved. It is in that spirit that this conference report came to the
Senate last evening and for further debate today.
Mr. President, let me simply review the fact that the time limit
covering this report is 6 hours. Three of those hours are controlled by
the distinguished Democratic leader, Senator Daschle, an hour by the
ranking Democratic member of the Agriculture Committee, and 2 hours by
myself. Approximately an hour and a quarter of debate occurred last
evening. The remainder of the debate lies ahead of us. Hopefully,
Senators who are controlling that time would be prepared to yield back
that time to expedite the work of the Senate.
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