[Congressional Record Volume 142, Number 50 (Thursday, April 18, 1996)]
[Extensions of Remarks]
[Pages E569-E570]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             THE FARM BILL

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                        Thursday, April 18, 1996

  Mr. HAMILTON. Mr. Speaker, I am inserting my Washington Report for 
Wednesday, April 3, 1996 into the Congressional Record:

                           The 1996 Farm Bill

       Congress recently passed the 1996 farm bill, and the 
     President signed it into law. This seven-year bill makes 
     sweeping reforms toward a free-market agricultural system. It 
     also includes agricultural research, rural development, 
     conservation, nutrition, and agricultural export and food 
     assistance programs. Saving more than $2 billion, the bill 
     passed with my support.
       Passage of the bill was helped because Congress was months 
     late. On January 1, the 1990 farm bill expired, and the 1949 
     ``permanent law'' came into effect. Everyone agreed that the 
     expensive 1949 law would be changed before harvest, but 
     Congress took no action, and farmers were forced to make 
     important business decisions in the dark. The congressional 
     leadership's decision last year to put farm legislation in 
     the huge, omnibus budget bill was clearly a mistake, because 
     it delayed action on this important, bipartisan measure.


                             crop programs

       The heart of the bill is the so-called ``Freedom to Farm'' 
     approach, which replaces commodity programs with a yearly 
     payment to farmers--declining each year--based on their past 
     production. The payment would be separated from specific crop 
     production, letting farmers choose which crops to plant. 
     Previous policy had used complicated payment formulas and 
     required some land to be idled. Instead, the new bill gives 
     farmers flat payments and independence. The only requirement 
     is that farmers meet current conservation standards.
       I have always supported a more market-oriented farm policy. 
     This measure is a good step in that direction. The 
     elimination of most planting restrictions will allow farmers 
     to plant according to supply and demand, and to respond more 
     efficiently to global markets. Reduced regulation will also 
     ease the burden of paperwork on farmers.


                               Drawbacks

       I agree with criticism of the Freedom to Farm approach that 
     it fails to require farmers to farm in order to receive 
     payments. This is a common-sense requirement, and it is 
     disappointing that the leadership blocked an opportunity to 
     vote on this issue. My suspicion is that farm issues will 
     come back to Congress sooner than many expect. It was easier 
     to pass major changes because crop prices are at their 
     highest levels in decades. If falling prices threaten family 
     farms, farmers may demand a better safety net in later years.


                       Wetlands and Conservation

       The final bill includes some limited wetlands reform, 
     similar to a bill I helped introduce last year. Under current 
     law, farmers are not allowed to farm on wetlands for 
     environmental reasons. But it is difficult to determine 
     exactly what a wetland is--particularly in tiny areas. An 
     area that was dry one month might be wet the next, and two 
     scientists can make different determinations. Moreover, 
     farmers risk drastic penalties for even the smallest 
     violation, even if they make a good faith effort to correct 
     the situation.
       The 1996 farm bill consolidates authority for agricultural 
     wetlands in the Agriculture Department, and makes penalties 
     proportional to any violation. The wetlands reforms in the 
     farm bill are significant, but they fall short of the reforms 
     that passed the House last year, but stalled in the Senate. 
     This other measure addressed wetlands protection in a more 
     comprehensive manner, narrowing the definition of wetlands, 
     ensuring that the costs and benefits of regulation are 
     analyzed with sound scientific evidence, and consolidating 
     agricultural wetlands authority in USDA. Congress should 
     revisit and pursue these important reforms.
       The farm bill also reauthorizes the Conservation Reserve 
     Program (CRP). In effect, CRP leases environmentally 
     sensitive farmland from farmers to reduce soil erosion, 
     protect water quality, and promote wildlife. This program is 
     credited for restoring numerous threatened species, including 
     ducks and quail. CRP was not included in the original House 
     bill, but it was added on the floor with my strong support. 
     The new bill also includes provisions to assist livestock 
     producers in protecting water supplies from animal waste.


                                exports

       The 1996 farm bill includes an amendment I offered on the 
     House floor to renew export and food assistance programs. 
     Exports are critical to the average Hoosier farmer, who 
     receives some $32,000 in export sales each year. Export 
     promotion and food assistance have been key to the success of 
     U.S. agriculture in world markets.
       The farm bill reauthorizes export and food aid programs 
     through 2002 to help open new markets and counter unfair 
     foreign subsidies. These efforts are especially important as 
     we pursue additional reductions in foreign tariffs. We made 
     progress in the Uruguay Round of the General Agreement on 
     Tariffs and Trade (GATT), but we must maintain our leverage 
     to push our competitors to reduce their trade barriers 
     further. The bill provides export credits for purchasing U.S. 
     products, authorizes measures to help promote U.S. food 
     products in tough foreign markets, and boosts the role of 
     private entities in distributing U.S. farm products under 
     food aid programs.


                     research and rural development

       The new farm bill makes agricultural research and rural 
     development a higher priority with a ``Fund for Rural 
     America''. The fund would invest in rural infrastructure and

[[Page E570]]

     housing, and make competitive research grants for 
     technological advancement. These efforts pay for themselves 
     dozens of times over in economic growth, increased 
     productivity, and innovative uses for agricultural products. 
     Many Hooseir farmers expressed their support for making 
     research a higher priority, and I agree.


                             crop insurance

       The farm bill includes provisions from a bill I cosponsored 
     to allow farmers to waive crop insurance mandates if they 
     forego future disaster payments. Under the old crop insurance 
     program, farmers who chose to participate in USDA programs 
     were required to purchase catastrophic insurance from the 
     government, even if it made little sense for a particular 
     farmer's crop or size of operation.


                            other provisions

       The new bill includes dairy reforms that phase out price 
     supports and replace them with market loans. Unfortunately, 
     the bill made only modest reforms to the sugar and peanut 
     programs. These programs impose production quotas that 
     protect a few sugar and peanut farmers at the expense of 
     consumers. I voted to phase out both the sugar and peanut 
     programs, but the effort failed.


                               conclusion

       The 1996 farm bill passed with broad bipartisan support. 
     While not perfect, this legislation includes many important 
     reforms. I believe it will strengthen the American farmer, 
     both at home and abroad, and maintain the U.S. food supply as 
     the cheapest and safest food supply in the world.

                          ____________________