[Congressional Record Volume 143, Number 142 (Tuesday, October 21, 1997)]
[House]
[Page H8868]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
REAUTHORIZING THE DAIRY INDEMNITY PROGRAM
Mr. POMBO. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 1789) to reauthorize the dairy indemnity program.
The Clerk read as follows:
H.R. 1789
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF DAIRY INDEMNITY PROGRAM.
(a) Extension.--Section 3 of Public Law 90-484 (7 U.S.C.
4501) is amended by striking ``1995'' and inserting ``2002''.
(b) Treatment of Existing Claims.--Section 2 of Public Law
90-484 (7 U.S.C. 450k) is amended by adding at the end the
following new sentence: ``Funds appropriated pursuant to this
section for fiscal year 1998 to carry out this Act may also
be used to pay valid claims arising under this Act during
fiscal year 1997 to the extent that such claims are not fully
paid using fiscal year 1997 funds.''.
(c) Alternative Financing Options.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of
Agriculture shall submit to Congress a report identifying and
evaluating alternative methods to finance the dairy indemnity
program established under the first section of Public Law 90-
484 (7 U.S.C. 450j).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California [Mr. Pombo] and the gentleman from Texas [Mr. Stenholm] each
will control 20 minutes.
The Chair recognizes the gentleman from California [Mr. Pombo].
Mr. POMBO. Madam Speaker, I yield myself such time as I may consume.
Today, Madam Speaker, we are considering H.R. 1789, the
reauthorization of the dairy indemnity program. H.R. 1789 was
introduced by the ranking member of the Committee on Agriculture, the
gentleman from Texas [Mr. Charlie Stenholm], and I am glad to be an
original cosponsor.
In the overall scheme scheme of things, the dairy indemnity program
is a modest undertaking which reimburses dairymen when they are
directed to remove their products from the market because of harmful
residues occurring through no fault of the producer or the processors.
Although this may be a small program, it can be vitally important to
some of America's dairymen facing possible bankruptcy.
Since 1964, the dairy indemnity program was routinely reauthorized
without much notice or attention. Unfortunately, it seems that after
the smoke cleared from deliberations of the last farm bill, this
program had been overlooked, since no action was taken to reauthorize
it.
The recent rise in aflatoxin contamination in several States,
however, has refocused attention on the need for this program.
Therefore, H.R. 1789, which itself spends no money, would simply
provide the authorization for this important program, which has quietly
helped dairymen in trouble for over 20 years. At a time when our dairy
industry is facing major challenges and restructuring, I would hope
that we could continue to authorize and support this as a fair and
equitable program.
Madam Speaker, I urge my colleagues to pass this bill, and I reserve
the balance of my time.
Mr. STENHOLM. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise in strong support of H.R. 1789, and I want to
thank committee chairman, the gentleman from Oregon [Mr. Smith], and
Chairman Pombo, and the ranking member, the gentleman from Minnesota
[Mr. Peterson] of the Subcommittee on Livestock, Dairy, and Poultry for
joining me in sponsoring and supporting this legislation. I am also
grateful to the Secretary of Agriculture, Mr. Glickman, for his support
of the bill.
Madam Speaker, H.R. 1789 authorizes appropriations for the dairy
indemnity program through fiscal year 2002. Madam Speaker, on June 26,
1997, the subcommittee held a hearing on this bill and received
testimony from the Department of Agriculture in support of the program
and its objectives. The subcommittee also heard testimony from Mr.
Calvin Buchanan, a constituent of mine who spoke on behalf of
Associated Milk Producers. Mr. Buchanan is a lifelong dairy farmer, and
he and his wife, Virginia, milk 500 cows in Decatur, TX.
During the hearing, Mr. Buchanan testified about the importance of
the dairy indemnity program to a producer whose milk is ruined by
contaminated feed. I quote:
The Dairy Indemnity Program has been a small element of
total agricultural policy over the years. It has, however,
been the difference between many dairy farm families being
able to continue in business and being forced to liquidate.
. . .
Not only do producers lose income from the market, they
lose the value of the contaminated feed and often incur
additional costs to clean up the problem. Given the current
economic situation, there just is not room in the operation
to absorb these costs.
Madam Speaker, at the time Mr. Buchanan testified, milk prices were
very low, and the economic challenges facing every dairy producer in
this Nation were enormous. Since that time conditions have improved
only slightly, and dairy producers in Texas and many other parts of the
Nation are constantly being forced to shut down their operations. Madam
Speaker, passage of H.R. 1789 will be a small but important step which
will help to preserve certainty of payment for dairy producers, and a
safe and stable milk supply for consumers.
Madam Speaker, during fiscal year 1997 there were insufficient funds
available to meet claims filed under the program. Appropriations and
carryover funds provided $257,000 for the program, but that amount was
depleted in February. There still are pending and unpaid applications
for fiscal year 1997 funds in Georgia, Illinois, Louisiana,
Mississippi, Montana, North Carolina, Tennessee, and Texas in the
amount of $230,635.
I am grateful that the House and Senate have agreed to provide
sufficient appropriations to meet these unpaid claims. Even in good
times, a dairy farmer faces difficulties resulting from revenue lost
because contaminated milk is withdrawn from the market. Many of my
colleagues are well aware that now is a particularly bad time for a
producer to remain unpaid for his or her milk. Passage of H.R. 1789
will help provide financial security for our Nation's hard working
dairy farmers. I urge all of my colleagues to support the passage of
this bill.
Madam Speaker, I yield back the balance of my time.
Mr. POMBO. Madam Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California [Mr. Pombo] that the House suspend the rules
and pass the bill, H.R. 1789.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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