[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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