[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.

[[Page S3038]]

  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

[[Page S3039]]

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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