[Congressional Record Volume 144, Number 99 (Wednesday, July 22, 1998)]
[Senate]
[Page S8786]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COVERDELL (for himself, Mr. Faircloth, Mr. Lott, Mrs. 
        Hutchison, Mr. Gramm, Mr. Shelby, Mr. Lugar, and Mr. Cochran):
  S. 2344. A bill to amend the Agricultural Market Transition Act to 
provide for the advance payment, in full, of the fiscal year 1999 
payments otherwise required under production flexibility contracts; to 
the Committee on Agriculture, Nutrition, and Forestry.


                the emergency farm financial relief act

 Mr. COVERDELL. Mr. President, the past several years have been 
devastating for a large number of Georgia farmers. Due to the large 
amounts of weather damage and associated agriculture production losses, 
numerous farmers and agribusinesses are faced with dire financial 
situations.
  Farmers from across the state of Georgia are facing their worst crop 
disaster in many years. Currently, damages are estimated at about $450 
million and rising. The drought in Georgia has already lasted 3 months 
and has caused farmers water supplies to dry up, leaving many without a 
source of irrigation water. I understand fully that it is not only in 
my home state where farmers are suffering. It is occuring in many parts 
of the country.
  To help alleviate farmers' financial difficulties, today I am proud 
to introduce legislation with my esteemed colleagues Majority Leader 
Lott, Senator Cochran, Senator Faircloth, Senator Shelby, Senator 
Gramm, Senator Lugar and Senator Hutchison, which will help provide 
American farmers with much needed financial relief. The bill--The 
Emergency Farm Financial Relief Act--would allow farmers the option of 
receiving all of the Agriculture Market Transition Act (AMTA) contract 
payments for FY 1999 immediately after the beginning of the fiscal 
year. Annual payments can now be made two times a year, in December or 
January and again in September. The legislation we introduce today is a 
Senate companion to House legislation introduced by Representative Bob 
Smith, Chairman of the House Agriculture Committee.
  The bill would make $5.5 billion available much earlier in order to 
help farmers cope with the cash shortages they are now experiencing due 
to low prices and poor production. This important initiative leaves the 
decision to accept early payments or not solely with the farmer. Since 
all of the 1999 AMTA payments occur within the same fiscal year, the 
Congressional Budget Office (CBO) has determined that this proposal 
would not cost any additional taxpayer funds.
  While this legislation is not the only answer to helping farmers 
during their time of economic hardship, it is a much needed overture 
which provides farmers with immediate financial relief. Certainly we 
have other measures to consider, but this is a good first step. I look 
forward to working with my colleagues in the Senate on this proposal 
and urge its speedy consideration.
 Mr. FAIRCLOTH. Mr. President, I rise as a co-sponsor of the 
Emergency Farm Financial Relief Act of 1998, which will permit farmers 
to receive their fiscal year 1999 Agriculture Market Transition Act 
(AMTA) payments at the start of the fiscal year in October of 1998 
rather than the semi-annual payments in December of 1998 and September 
of 1999.
  This bill thus readies some $5.5 billion to help farmers cope with 
their current cash shortage that stems from high debts and low 
commodity prices.
  This is a first to address the farm crisis, and it will help some 
farmers with their cash flow, but there are a lot of other growers in 
rough straits. Therefore, this is just a first step, and we need to 
take more aggressive steps to open export markets to American 
commodities.
  This bill will not solve the farm crisis in North Carolina. In fact, 
because we managed to preserve the tobacco and peanut programs in the 
1996 farm bill, the acceleration of AMTA contract payments will be 
limited, for the most part, to cotton, corn, and wheat growers.
  The fields of North Carolina, Mr. President, are dry. All the farmers 
are in the same dire situation, and the scope of this bill is limited, 
but we need to address the tobacco growers.
  I am concerned that efforts to bring the tobacco program to the 
Senate floor will get torn to shreds, but, certainly, the anti-tobacco 
crowd needs to rise above politics and realize that this is about farm 
families and family farms.
  In addition to cash flow assistance, farmers need aggressive 
leadership to boost exports, and President Clinton needs to pay 
attention to farmers and to use the tools we gave him--like the Export 
Enhancement Program--to secure foreign markets for American 
agricultural commodities. Farmers just can't afford this continued 
silence from President Clinton. Agriculture is our number one export, 
so, clearly, we need the White House to engage on this issue.
  Thank you, Mr. President, and I urge my colleagues to join us in 
support of the Emergency Farm Financial Relief Act of 1998.

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