[Congressional Record Volume 142, Number 111 (Thursday, July 25, 1996)]
[Senate]
[Pages S8927-S8928]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  THE AGRICULTURE APPROPRIATIONS BILL

 Mr. CONRAD. Mr. President, I wish to make a few remarks 
regarding the fiscal year 1997 appropriations bill for Agriculture, 
Rural Development, Food and Drug Administration, and related agencies 
programs, which the Senate passed nearly unanimously yesterday.
  This appropriations bill is arguably the most important for my State 
of North Dakota. Agriculture is my State's No. 1 industry, accounting 
for over one third of our annual economic activity. This bill provides 
important funding for many USDA activities important to my State, 
including valuable research, rural development, and, of course, 
commodity programs. I want to express my appreciation to the chairman 
and ranking member of the subcommittee for the excellent work they have 
performed putting this bill together.
  Senator Cochran and Senator Bumpers have an extremely difficult task 
balancing the needs of many important programs funded by this bill with 
the very difficult budget situation we are facing as we strive to 
balance the budget. I know the committee received a great number of 
requests to provide funding for programs and activities that are 
important to the agricultural sector of our economy, and I realize they 
could not possibly fund every program or activity at the levels 
requested. I do want to express my appreciation for the support the 
committee has provided for the programs in this bill, especially in 
light of their overall allocation.
  I also want to express my appreciation for the help of the staff of 
the Appropriations Committee, Becky Davies, Hunt Shipman, Galen 
Fountain, and Jimmie Reynolds, for their excellent work on behalf of 
the chairman and ranking member.
  Mr. President, at this point I would like to comment briefly on two 
important programs, and express my desire that the House-Senate 
conference committee will support the programs at the funding level 
provided in the Senate bill.
  First, I want to express my strong support for the funding provided 
in the Senate version of this bill for the State mediation grants 
program within the Department of Agriculture. The Senate Appropriations 
Committee has provided $2 million for this important program, and I 
commend subcommittee Chairman Cochran and Senator Bumpers for including 
funding for this program. Regretfully, the House of Representatives did 
not provide any funding for the State mediation grants program. It is 
my hope that Senate and House conferees will realize the benefits of 
this program and fund the State mediation grants program at $2 million.
  The State mediation program was created in response to the 
agricultural crisis of the late 1980's, and the program continues to be 
valuable to farmers and ranchers today. Mediation programs enable 
farmers and ranchers to meet with their creditors or the local Farmers 
Home Administration office in a confidential atmosphere which promoted 
civil discussion, mutual understanding, and it most cases, a fair 
settlement.
  The scope of the State mediation grants program was expanded when the 
United States Department of Agriculture's [USDA] Reorganization Act of 
1994 became law. Now, farmers and ranchers in States which have 
certified State mediation programs may choose mediation in a variety of 
disputes with USDA, such as conservation compliance, wetland 
determinations, and grazing rights.
  The demand for this mediation program continues to exist. Nineteen 
States have certified State mediation programs, and USDA is working 
with more States to establish certified programs. Mediation is a proven 
method of sensible and economical dispute resolution. In producers' 
disputes with USDA, mediators provide the voice of reason and help all 
parties take a realistic approach to the administration of Federal 
programs and the requirements of compliance.
  A group of my colleagues, both Republicans and Democrats, joined me 
in a letter to Chairman Cochran earlier this year, requesting full 
funding for the State mediation grants program. It is my hope that 
Senate and House conferees will realize the benefits of this program 
and fund the State mediation grants program at the Senate-passed level 
of $2 million.
  Mr. President, I also want to indicate my support for the funding 
provided in the Senate version of this appropriations bill for the 
Alternative Agricultural Research and Commercialization [AARC] 
Corporation, and express my hope that the conferees on this legislation 
will be able to fund AARC at the Senate-passed level.
  This level of funding is justified by the major opportunities for 
developing markets for alternative agricultural products, and by 
evidence that the AARC program is providing the necessary bridge from 
private sector research to commercialization for these products. AARC 
is a venture capital fund designed to boost farm income by 
commercializing new uses for agricultural products. Recipients of AARC 
funds repay AARC's investment, plus a risk charge. AARC's system is 
revolutionary because it provides actual business financing and hands-
on business and technical assistance, as well as competitive research 
grants and links with the public and private sectors.
  In my view, AARC has only begun to tap the potential for 
commercializing new products in the domestic market. AARC promotes new 
industrial uses of our farmers' commodities like fiber board from wheat 
straw, windshield wiper fluid from ethanol, cat litter from waste 
peanut hulls, and many others. Finding new uses for our commodities and 
promoting value-added

[[Page S8928]]

enterprises in our rural communities are important ways AARC can help 
promote more jobs, higher incomes, and fresh opportunities in rural 
America. In AARC's first 3 years in operation, the Center invested 
$22.3 million in 54 projects in 28 states, matched by more than $75 
million from private partners--a 3 to 1 match.
  It is my hope that conferees will realize the benefits of the AARC 
Corporation, and provide funding at the Senate-passed level of $10 
million.

                          ____________________