[Congressional Record Volume 144, Number 60 (Wednesday, May 13, 1998)]
[Senate]
[Pages S4833-S4835]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself, Mr. Baucus, Mr. Roberts, Mr. 
        Kerrey, Ms. Moseley-Braun, Mr. Hagel, and Mr. Allard):
  S. 2078. A bill to amend the Internal Revenue Code of 1986 to provide 
for Farm and Ranch Risk Management Accounts, and for other purposes; to 
the Committee on Finance.


                   farm and ranch risk management act

  Mr. GRASSLEY. Mr. President, I rise today to introduce the Farm and 
Ranch Risk Management Act of 1998. This bill gives farmers another tool 
to manage the risk of price and income fluctuations inherent in 
agriculture. It does this by encouraging farmers to save some of their 
income during good years and allowing the funds to supplement income 
during bad years. This new tool will more fully equip family farmers to 
deal with the vagaries of the marketplace.
  Farming is a unique sector of the American economy. Although 
agriculture represents one-sixth of our Gross Domestic Product, it 
consists of hundreds of thousands of farmers across the nation. Many of 
whom operate small, family farms. These farms often support entire 
families, and even several generations of a family. And they work hard 
every day and produce the food consumed by the rest of the country, and 
around the world as well.
  Yet farming remains one of the most perilous ways to make a living. 
The income of a farm family depends, in large part, on factors outside 
its control. Weather is one of those factors. For instance, I have 
heard on the Senate

[[Page S4834]]

floor recently that the income of North Dakota farmers dropped 98% last 
year because of flooding. Weather can totally wipe out a farmer. And, 
at best, weather can cause farmers' income to fluctuate wildly.
  Another factor is the uncertainty of international markets. Iowa 
farmers now export 40% of all they produce. But what happens when 
European countries impose trade barriers on beef, pork and genetically-
modified feed grain, as examples. And what happens when Asian 
governments devalue their currencies. Exports fall and farm income 
declines. Through no fault of the farmer, but because of decisions made 
in foreign countries.
  Mr. President, the 1996 farm bill took planting decisions out of the 
hands of government bureaucrats and put them back into the hands of 
farmers. Farmers now have the ability to plant according to the demands 
of the market. The farmers I talk to are pleased with this change in 
philosophy. They would rather make their own decisions and rely on the 
market for their income, instead of the government.
  But the sometimes volatile nature of commodity markets can make it 
difficult for family farmers to survive even a normal business cycle. 
When prices are high, farmers often pay so much of their income in 
taxes that they are unable to save anything. When prices drop again, 
farmers can be faced with liquidity problems. This bill allows farmers 
to manage their income, to smooth out the highs and lows of the 
commodity markets.
  In that way, this bill is complementary with the philosophy of the 
new farm program. Business decisions are left in the hands of farmers, 
not bureaucrats at the Department of Agriculture, and not elected 
officials. The farmer decides whether to defer his income for later 
years. The farmer decides when to withdraw funds to supplement his 
operation.
  Mr. President, I will take just a moment to explain how the bill 
works. Eligible farmers are allowed to make contributions to tax-
deferred accounts, also known as FARRM accounts. The contributions are 
tax-deductible and limited to 20% of the farmer's taxable income for 
the year. The contributions are invested in cash or other interest-
bearing obligations. The interest is taxed during the year it is 
earned.
  The funds can stay in the account for up to five years. Upon 
withdrawal, the funds are taxed as regular income. If the funds are not 
withdrawn after five years, they are taxed as income and subject to an 
additional 10% penalty.
  Essentially, the farmer is given a five-year window to manage his 
money in a way that is best for his own operation. The farmer can 
contribute to the account in good years and withdraw from the account 
when his income is low.
  This bill helps the farmer help himself. It is not a new government 
subsidy for agriculture. It will not create a new bureaucracy 
purporting to help farmers. The bill simply provides farmers with a 
fighting chance to survive the down times and an opportunity to succeed 
when prices eventually increase.
  Mr. President, I want to thank my colleagues for supporting this 
bill, especially Senator Baucus, the lead Democratic cosponsor. I look 
forward to working with him on the Finance Committee to ensure passage 
of this important effort for our farmers.

                         ADDITIONAL COSPONSORS


                                 S. 89

  At the request of Ms. Snowe, the names of the Senator from Wisconsin 
[Mr. Feingold] and the Senator from Oregon [Mr. Wyden] were added as 
cosponsors of S. 89, a bill to prohibit discrimination against 
individuals and their family members on the basis of genetic 
information, or a request for genetic services.


                                 S. 381

  At the request of Mr. Rockefeller, the name of the Senator from 
Massachusetts [Mr. Kerry] was added as a cosponsor of S. 381, a bill to 
establish a demonstration project to study and provide coverage of 
routine patient care costs for medicare beneficiaries with cancer who 
are enrolled in an approved clinical trial program.


                                 S. 831

  At the request of Mr. Shelby, the name of the Senator from Montana 
[Mr. Burns] was added as a cosponsor of S. 831, a bill to amend chapter 
8 of title 5, United States Code, to provide for congressional review 
of any rule promulgated by the Internal Revenue Service that increases 
Federal revenue, and for other purposes.


                                 S. 863

  At the request of Mrs. Murray, her name was withdrawn as a cosponsor 
of S. 863, a bill to authorize the Government of India to establish a 
memorial to honor Mahatma Gandhi in the District of Columbia.


                                S. 1260

  At the request of Mrs. Hutchison, her name was added as a cosponsor 
of S. 1260, a bill to amend the Securities Act of 1933 and the 
Securities Exchange Act of 1934 to limit the conduct of securities 
class actions under State law, and for other purposes.


                                S. 1320

  At the request of Mr. Rockefeller, the name of the Senator from 
Delaware [Mr. Biden] was added as a cosponsor of S. 1320, a bill to 
provide a scientific basis for the Secretary of Veterans Affairs to 
assess the nature of the association between illnesses and exposure to 
toxic agents and environmental or other wartime hazards as a result of 
service in the Persian Gulf during the Persian Gulf War for purposes of 
determining a service connection relating to such illnesses, and for 
other purposes.


                                S. 1334

  At the request of Mr. Bond, the names of the Senator from Illinois 
[Ms. Moseley-Braun] and the Senator from Nevada [Mr. Bryan] were added 
as cosponsors of S. 1334, a bill to amend title 10, United States Code, 
to establish a demonstration project to evaluate the feasibility of 
using the Federal Employees Health Benefits program to ensure the 
availability of adequate health care for Medicare-eligible 
beneficiaries under the military health care system.


                                S. 1580

  At the request of Mr. Shelby, the name of the Senator from Kansas 
[Mr. Brownback] was added as a cosponsor of S. 1580, a bill to amend 
the Balanced Budget Act of 1997 to place an 18-month moratorium on the 
prohibition of payment under the medicare program for home health 
services consisting of venipuncture solely for the purpose of obtaining 
a blood sample, and to require the Secretary of Health and Human 
Services to study potential fraud and abuse under such program with 
respect to such services.


                                S. 1754

  At the request of Mr. Frist, the name of the Senator from North 
Carolina [Mr. Faircloth] was added as a cosponsor of S. 1754, a bill to 
amend the Public Health Service Act to consolidate and reauthorize 
health professions and minority and disadvantaged health professions 
and disadvantaged health education programs, and for other purposes.


                                S. 1758

  At the request of Mr. Lugar, the name of the Senator from North 
Dakota [Mr. Dorgan] was added as a cosponsor of S. 1758, a bill to 
amend the Foreign Assistance Act of 1961 to facilitate protection of 
tropical forests through debt reduction with developing countries with 
tropical forests.


                                S. 1825

  At the request of Mrs. Murray, the name of the Senator from Delaware 
[Mr. Biden] was added as a cosponsor of S. 1825, a bill to amend title 
10, United States Code, to provide sufficient funding to assure a 
minimum size for honor guard details at funerals of veterans of the 
Armed Forces, to establish the minimum size of such details, and for 
other purposes.


                                S. 1868

  At the request of Mr. Nickles, the name of the Senator from Kansas 
[Mr. Brownback] was added as a cosponsor of S. 1868, a bill to express 
United States foreign policy with respect to, and to strengthen United 
States advocacy on behalf of, individuals persecuted for their faith 
worldwide; to authorize United States actions in response to religious 
persecution worldwide; to establish an Ambassador at Large on 
International Religious Freedom within the Department of State, a 
Commission on International Religious Persecution, and a Special 
Adviser on International Religious Freedom within the National Security 
Council; and for other purposes.


                                S. 1959

  At the request of Mr. Coverdell, the names of the Senator from 
Kentucky

[[Page S4835]]

[Mr. McConnell] and the Senator from New Hampshire [Mr. Smith] were 
added as cosponsors of S. 1959, a bill to prohibit the expenditure of 
Federal funds to provide or support programs to provide individuals 
with hypodermic needles or syringes for the use of illegal drugs.


                                S. 1973

  At the request of Mr. Bumpers, the name of the Senator from 
California [Mrs. Feinstein] was added as a cosponsor of S. 1973, a bill 
to amend section 2511 of title 18, United States Code, to revise the 
consent exception to the prohibition on the interception of oral, wire, 
or electronic communications.


                                S. 1981

  At the request of Mr. Hutchinson, the name of the Senator from Iowa 
[Mr. Grassley] was added as a cosponsor of S. 1981, a bill to preserve 
the balance of rights between employers, employees, and labor 
organizations which is fundamental to our system of collective 
bargaining while preserving the rights of workers to organize, or 
otherwise engage in concerted activities protected under the National 
Labor Relations Act.


                                S. 1992

  At the request of Mrs. Hutchison, the name of the Senator from 
Mississippi [Mr. Cochran] was added as a cosponsor of S. 1992, a bill 
to amend the Internal Revenue Code of 1986 to provide that the $500,000 
exclusion of a gain on the sale of a principal residence shall apply to 
certain sales by a surviving spouse.


                                S. 2036

  At the request of Mrs. Hutchison, the names of the Senator from 
Georgia [Mr. Coverdell], the Senator from Oregon [Mr. Smith], the 
Senator from Alabama [Mr. Sessions], the Senator from Colorado [Mr. 
Allard], the Senator from Mississippi [Mr. Lott], the Senator from 
Oklahoma [Mr. Nickles], the Senator from Alaska [Mr. Stevens], the 
Senator from North Carolina [Mr. Helms], and the Senator from Idaho 
[Mr. Craig] were added as cosponsors of S. 2036, a bill to condition 
the use of appropriated funds for the purpose of an orderly and 
honorable reduction of U.S. ground forces from the Republic of Bosnia 
and Herzegovina.


                    Senate Concurrent Resolution 88

  At the request of Mr. D'Amato, the name of the Senator from South 
Dakota [Mr. Johnson] was withdrawn as a cosponsor of Senate Concurrent 
Resolution 88, a concurrent resolution calling on Japan to establish 
and maintain an open, competitive market for consumer photographic film 
and paper and other sectors facing market access barriers in Japan.


                         Senate Resolution 176

  At the request of Mr. Domenici, the names of the Senator from 
Mississippi [Mr. Lott], the Senator from Maine [Ms. Collins], and the 
Senator from Montana [Mr. Burns] were added as cosponsors of Senate 
Resolution 176, a resolution proclaiming the week of October 18 through 
October 24, 1998, as ``National Character Counts Week.''


                         Senate Resolution 216

  At the request of Mr. Lieberman, the name of the Senator from Nevada 
[Mr. Reid] was added as a cosponsor of Senate Resolution 216, a 
resolution expressing the sense of the Senate regarding Japan's 
difficult economic condition.

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