[Congressional Record Volume 144, Number 21 (Thursday, March 5, 1998)]
[Extensions of Remarks]
[Page E317]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E317]]
              INTRODUCTION OF THE RICE FARMER FAIRNESS ACT

                                 ______
                                 

                             HON. RON PAUL

                                of texas

                    in the house of representatives

                        Thursday, March 5, 1998

  Mr. PAUL. Mr. Speaker, I am today introducing the Rice Farmers 
Fairness Act H.R. 3339. This legislation would condition the 
continuation of farm subsidies on the maintenance of rice production. 
The 1996 Freedom to Farm Act allows for the continuation of subsidies 
to landowners who discontinue tenant rice farming on their land. In 
essence, this means that the subsidy will continue to flow in spite of 
an end to production.
  Theoretically, the idea of the plan is to ``wean'' landowners off of 
subsidies over a transition period. In fact, what this program allows 
are ``something for nothing'' subsidies, which is the worst kind of 
subsidy. Moreover, as a result of this provision there is a very real 
threat to the agricultural infrastructure. With landowners receiving 
subsidies in spite of lack of production, the entire warehousing, 
processing and ``value-added'' industries are put at risk.
  As grain elevators, processors and others see a reduction in demand 
for their services because of the diminution of production permitted by 
this legislation they have a disincentive to continue to provide said 
services, services which must remain in place in order for those who 
remain in production to be able to bring to market the rice which they 
continue to produce. Thus, by way of the decimation of the 
infrastructure, this subsidy to non-producers comes at the expense of 
those who continue to produce rice. Therefore, the provisions of the 
Freedom to Farm Act which provide this subsidy actually amount to 
another form of federal welfare, taking from producers and giving to 
non-producers.
  My legislation is very simple and direct in dealing with this 
problem. It says that those who had tenant rice farmers producing rice 
when they began to receive this subsidy must continue to maintain rice 
in their crop rotation if they wish to retain the subsidy. In this way, 
we can remove the perverse incentive which the Federal Government has 
provided to landowners to exit the rice business and thereby put the 
entire rice infrastructure at risk.
  America's rice farmers are among the most efficient, effective 
producers of rice in the world despite the many hurdles erected by 
Washington. Our rice producers can compete with anyone absent such 
hurdles and this bill will help remove one. In order to enhance our 
competitive position, we should also end our embargoes of other nations 
which would like access to rice produced in America. Further we should 
eliminate the burdensome taxes regulations on America's farmers to 
insure increased market access and a healthy farming community in the 
these United States.

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