Congressional Record, Volume 144 Issue 90 (Thursday, July 9, 1998)

[Congressional Record Volume 144, Number 90 (Thursday, July 9, 1998)]
[Senate]
[Pages S7706-S7707]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

A STEALTH DISASTER IN NORTH DAKOTA

Mr. CONRAD. Mr. President, I have just returned after spending a week
in my home State of North Dakota. On six previous occasions, I have
come to the floor to describe to my colleagues what is happening there.
I have described it as a stealth disaster. Last year, we faced a
remarkable set of disasters, with the worst winter in our history,
followed by the most powerful winter storm in 50 years, followed then
by the 500-year flood, and, in the midst of all that, an outbreak of
fire that destroyed much of downtown Grand Forks.
Those disasters received enormous attention. Daily, the national news
media covered what was happening, so people all across America saw what
was happening in North Dakota, and the people of the United States
moved to respond. They responded with extraordinary generosity. We
deeply appreciate what the people of this country did for North Dakota
last year.
Mr. President, the disaster continues this year. Only this year, it
is attended by almost no national news coverage and there is very
little understanding of the depths of the crisis. This is a disaster
nonetheless. This disaster is not as visible because it is a disaster
occurring on the 30,000 farms of the State of North Dakota. From 1996
to 1997, according to the Government's own figures, farm income in
North Dakota dropped 98 percent. That is not a misstatement, that is
what the Government's own figures reveal, that farm income from 1996 to
1997 dropped 98 percent in the State of North Dakota. We led the Nation
in farm income decline. And, by whatever measure one takes, this is a
disaster.
It is a disaster caused by bad prices, bad weather, and bad policy.
We have the lowest prices on record when adjusted for inflation. We
have a continuation of the weather cycle that led to the incredible
storms and flooding of last year. Now we are caught up in a wet weather
cycle that has led to an outbreak of disastrous disease--scab infects
the crops of North Dakota. Last year, it cost about a third of the
crop. But not only did it damage the crop, it also reduced the grade of
the grain that we produce, so that farmers got a lower price. That, in
the midst of the weakest prices, adjusted for inflation, that we have
seen in the grain markets for 30 years.
The result is, farmers cannot cash-flow. The result is, farmers are
being forced off the land. The result is, we have massive auction sales
all across the State of North Dakota. The result is, farmers coming to
me and bankers coming to me and Main Street business people coming to
me saying, ``Senator, there is something radically wrong, and something
has to be done or we are going to lose a vast number of our farmers.''
Mr. President, we now start to see that prophecy unfold.

I brought with me upcoming auctions that appeared in the local
newspaper. These auctions tell a story. These auctions are of farm
after farm after farm being put up for sale because the farmers cannot
cash-flow.
This starts on Monday, March 9, at 11 a.m. and runs right through
March. Every day there is sale after sale after sale of farms in North
Dakota. I just had farmers tell me that for the first time in 100
years, there is land that will not be farmed.
Some say, ``Well, North Dakota is a marginal State. North Dakota has
marginal weather to begin with.'' That is true in part of North Dakota,
but this is happening in the richest part of North Dakota. This is
happening in the Red River Valley of North Dakota. This is the richest
farmland in the world. I grew up being told there had never been a crop
failure in the Red River Valley. Never in history had there been a crop
failure. For the last 5 years, farmers have not had a normal crop in
the Red River Valley of North Dakota.
I just went through the southeastern corner of our State. What I saw
in six counties was extraordinary. They are under water. They have 2
and 3 feet of water in the fields. They have had more rain in the first
6 months than they normally get in a year and a half. There is not
going to be a normal crop in those six counties, and that is the
southeastern part of the State. It has been the northeastern part that
has been so hard hit in the last year.
This weather pattern seems to be expanding, taking in more and more
land, more and more farms inundated, more and more farmers who aren't
going to have a crop or going to have a badly diminished crop and, on
top of that, are going to have very weak prices. The result will be
even more auctions.
Already we anticipate losing one in every 10 of our farmers this
year. Experts that we met with when the Secretary of Agriculture came
to North Dakota 3 weeks ago told us next year we might anticipate
losing one of every three farmers. This is a disaster of enormous
scope, Mr. President, and I hope I can convince my colleagues that it
is critically important that we respond.
This chart shows 141 farm auctions scheduled between the beginning of
March and the end of June. That is nearly two auctions every day for 4
months.
Who are these farmers who are advertising auctions? I am very sorry
to report to my colleagues that these are not farmers of retirement
age. Many of these farmers are young farmers who simply can't take the
debt load; they simply can't take being in a circumstance of bad
weather, bad prices and bad policy. The result is they are leaving
farming.
One has to ask, Who is going to farm this land in the future? Who is
going to provide the food stocks for the American people, because if
there is ever a breadbasket State, it is North Dakota. We are No. 1 in
the production of crop after crop after crop. We are No. 1 in durum
that goes to produce pasta. Over 65 percent of the durum wheat produced
in the United States is produced in North Dakota; No. 1 in barley; No.
1 in sunflower; No. 1 in canola; No. 1 in many of the other wheat
categories. North Dakota literally is a breadbasket State, and North
Dakota is in disaster. There is no other way to describe it. The result
is going to be a calamity unless there is a response.
We see these auctions. This is a typical one: April 14, 1998. This
fellow is going to have an auction. It says:

Darryl has rented out the farm and, therefore, will
liquidate the following large line of top quality equipment
by public auction.

If you look at what is being auctioned, it is very revealing: A 1995
row crop drill; 1996 row lifter; 1996 cultivator; 1997 field sprayer.
What does that tell us? Farmers thinking they are going out of
business are not buying new equipment in 1997. They are not buying new
equipment in 1996. They are not buying new equipment in 1998. They have
been hit by a calamity, a calamity that is forcing them off the land
and out of business. No one who is planning to quit in 1998 buys a
sprayer in 1997.
Another auction advertisement states that two farmers have
discontinued their farming operations. Again, we see new equipment
being sold. Again, we find that this is, as described in the ad,
single-owner equipment, and yet they have equipment purchased as
recently as 1997.
These are not small investments. Many of these pieces of equipment
cost $50,000, $60,000, $70,000, and they just bought them last year and
they are going out of business this year. Not one, not two, but
hundreds and hundreds and thousands, and it is because there is a
collapse of farm income. There is a collapse of production, and we
don't have a safety net in place.
It is very interesting if you compare what we are doing in this
country to what our chief competitors are doing.

[[Page S7707]]

Our chief competitors are the Europeans. They are spending $50 billion
a year supporting their farmers--$50 billion, 10 times as much as what
we are spending. We spend $5 billion a year. As I have said to my
colleagues many times, the Europeans have a plan, and they have a
strategy. Their plan and their strategy is to dominate world
agricultural markets. Why? Because the Europeans have been hungry
twice, and they never intend to be hungry again. They understand full
well the importance of agricultural dominance, and they are ready to do
what it takes. They are doing it the old-fashioned way: They are buying
the markets.
We are sending our farmers out saying, ``You go compete against the
French farmer and the German farmer.'' Fair enough. We are ready to
compete against any farmer anywhere, anytime. But in addition, we are
saying to our farmers, ``While you are at it, you go compete against
the French Government and the German Government and good luck,''
because those countries have decided they are going to stand with their
producers, and they are going to fight, and they are going to win. If
you look at what is happening in world agriculture, you can see that
strategy and that plan is working, because the Europeans are on the
ascent while the United States is descending. They are going in the
right direction; we are going in the wrong direction, and we wonder
why.
Mr. HOLLINGS. Mr. President, will the distinguished Senator yield? I
don't want to lose my time. We were allocated a few minutes before we
vote on cloture. The Senator is into, I think, my segment of the 9:15-
to-9:30 time. I don't want to disturb the distinguished Senator, but I
don't want to lose my time. Is that the regular order?
The PRESIDING OFFICER. The regular order was for the Democratic
leader to control half of the 1-hour time; that is 30 minutes. The
Senator from North Dakota is recognized.
Mr. TORRICELLI. Mr. President, did the Democratic leader distinguish
how that time would be divided?
The PRESIDING OFFICER. No, he did not.
Mr. CONRAD. Mr. President, I would be glad to enter an agreement
right here with my colleague so that the Senator from South Carolina
would have time before the cloture vote and so my colleague from New
Jersey would have time. I would be happy to wrap up very quickly so
they can have sufficient time before the cloture vote.
Mr. HOLLINGS. Sufficient time is 15 minutes. I am almost down to 10
minutes. I ask unanimous consent that I be permitted to speak for 15
minutes prior to the cloture vote.
The PRESIDING OFFICER. Is there objection?
Mr. THURMOND. Mr. President, I object.
The PRESIDING OFFICER. There is objection.
Mr. HOLLINGS. Well----
Mr. CONRAD. Mr. President, let me reclaim my time, and let me just
end so the Senator from South Carolina has as much time as he can
remaining. My understanding was that I had 15 minutes this morning.
But I would be glad to wrap up and simply say that what I have
described this morning is an ongoing crisis in my State. And I am going
to be asking my colleagues to respond, as they so graciously responded
last year. Let me say, it is just not my State, because what is
happening in my State is an early warning signal to others as to what
can happen. We are headed for a calamity in my State. Others will
experience the same thing unless we find a way to fix it.
I thank the Chair and yield the floor so that my colleagues can have
the remaining time.
Mr. TORRICELLI addressed the Chair.
The PRESIDING OFFICER. The Senator from New Jersey.
Mr. TORRICELLI. How much time is remaining?
The PRESIDING OFFICER. There are 13 minutes 11 seconds remaining.
Mr. TORRICELLI. Thirteen minutes. I offer to the Senator from South
Carolina to divide the time. I don't see any other choice. I would be
glad at this point to divide the time with the Senator from South
Carolina.
Mr. HOLLINGS. I appreciate the distinguished Senator from New Jersey
permitting me that opportunity.
What really happened is I was told from 9:15 to 9:30. And I will try
to wrap it up as quickly as I possibly can.
The PRESIDING OFFICER. The Senator from South Carolina.

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