[Congressional Record Volume 144, Number 35 (Wednesday, March 25, 1998)]
[Extensions of Remarks]
[Page E473]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E473]]
                   FAMILY FARM SAFETY NET ACT OF 1998

                                 ______
                                 

                        HON. RICHARD A. GEPHARDT

                              of missouri

                    in the house of representatives

                       Wednesday, March 25, 1998

  Mr. GEPHARDT. Mr. Speaker, today my colleagues Leonard Boswell, Eva 
Clayton, Jim Clyburn, Lane Evans, David Minge, Collin Peterson, Earl 
Pomeroy, Glenn Poshard, Debbie Stabenow and I are introducing 
legislation to restore the farm safety net shredded by the Republicans 
in the 1996 Farm Bill. House Republicans want to end the farmer safety 
net. Democrats want to mend it.
  Over the past two years, America's farmers have watched large 
harvests and the Asian crisis push down grain prices as much as 40 
percent. University of Missouri economists tell us that, as prices 
continue to fall, real net farm income could fall more than 8 percent 
this year. Producers are concerned. First, that the existing safety net 
is inadequate. Second, that even these protections, inadequate as they 
are, are scheduled to be phased out in a few short years.
  This bill restores a sensible safety net by giving farmers a better 
chance to market their grain for a fair price. This bill utilizes a 
market-oriented tool farmers know well: the marketing loan. Marketing 
loans have generally provided a safety net ensuring producers 85 
percent of a commodity's 5-year average price. The 1996 bill slashed 
the safety net by cutting these rates sharply. Our bill will establish 
loan rates equal to 85 percent of historic price levels--providing more 
income stability. Our bill boosts loan rates. Corn and soybeans up $.30 
per bushel. Wheat up $.59 per bushel. Cotton up $.04 per pound.
  We must take other steps to repair the safety net as well. We need an 
emergency price floor for dairy farmers in all regions of the country. 
We also need Congresswoman Clayton's bill to ensure hard-working 
farmers access to Federal credit cut off by the Republicans.
  We must also extend the ethanol program. Tomorrow the Ways and Means 
Committee will act on the highway bill. We call upon the Republican 
Chairman to extend the ethanol program. Ethanol provides us clean 
energy--and strengthens American agriculture. The ethanol program 
strengthens corn prices, boosting the annual income of a typical 
Missouri grain farm by $15,000 to $30,000.
  Last year, key Republicans opposed the ethanol program, and Congress 
failed to renew the program. This halted construction of a dozen 
ethanol plants--$700 million in investment--in rural America, costing 
our rural communities good-paying jobs.
  Congress can do better. So we are renewing our call to the 
Republicans: Stop the attack on America's farmers. Let's restore the 
ethanol credit. Let's stand together for opportunity for Rural America.

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