[Congressional Record Volume 144, Number 124 (Thursday, September 17, 1998)]
[Senate]
[Pages S10523-S10524]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN:
  S. 2493. A bill to amend the Internal Revenue Code of 1986 to allow a 
tax credit for the nutrient management costs of animal feeding 
operations; to the Committee on Finance.


      the animal agriculture environmental incentives act of 1998

 Mr. HARKIN. Mr. President, recently we have seen growing 
concerns around the country about the environmental problems associated 
with livestock, dairy and poultry production. Continued reports of 
manure spills, evidence of water pollution from manure runoff, and 
ongoing complaints about odor and air pollution are creating increasing 
pressure on the livestock and poultry industry.
  Last year, I introduced the Animal Agriculture Reform Act, the first 
legislation of its kind to call for national environmental standards 
for animal feeding operations. Just this week, the U.S. Environmental 
Protection Agency and the U.S. Department of Agriculture announced what 
they call a Draft Unified National Strategy for Animal Feeding 
Operations. That is a big title, but what it boils down to is a 
comprehensive, national plan for tackling the environmental problems of 
the livestock and poultry industry.
  The Administration's Strategy looks a lot like my bill, so I think it 
is a good start. The Strategy calls for mandatory nutrient management 
plans for larger operations and restrictions on manure application to 
protect the environment--those provisions are at the heart of my bill 
and also are the focus of the EPA/USDA Strategy.
  However, the Administration's plan is only a strategy and it must be 
implemented. We will still see manure spills, runoff and threatened 
waterways

[[Page S10524]]

around the country until we have better management and better controls 
at animal feeding operations.
  One of the keys to getting this job done, and to helping producers 
comply with EPA regulations, is finding solutions rather than imposing 
sanctions. That is why today I am introducing a bill that would provide 
a 25 percent tax credit to livestock producers to purchase equipment 
for new and innovative ways to process and use manure.
  The aim of my bill is to help producers help themselves when it comes 
to manure management, particularly in circumstances where too much 
manure is generated to be safely applied to land.
  The tax credit would cover equipment that allows farmers to carefully 
apply only as much manure as their crops need, and equipment that 
processes manure for safer handling, better nutrient value, or 
alternative uses like energy generation. This is the kind of equipment 
that producers need to comply more easily with nutrient management 
plans, move manure more economically to areas where crop land is 
available, or adopt alternative uses for manure.
  The bottom line as I see it is that livestock, dairy and poultry 
producers in this country are going to face limits on manure 
application. These limits are going to have a serious effect on some 
operations, and particularly in certain regions of the country.
  Of course, there are all kinds of operations that make up our 
livestock, dairy and poultry industry, and each producer needs an 
environmental solution that makes sense for that individual operation.
  Some producers have enough land to apply all of their manure. For 
these producers, up to date facilities and careful management should be 
sufficient. For other producers, simple composting or efficient solid 
liquid separation may be the solution, so that solids can be 
transported more economically for off-site land application. In still 
other situations, particularly for very large operations or in regions 
with intensive production, we may need to adopt more advanced 
technology.
  I believe that the bill I am introducing today is just a first step 
along the way to making the adoption of better technologies, whether 
low-tech composting or high-tech processing, more affordable for any 
size producer.
  I want to thank the National Pork Producers Council for its support 
of this tax credit initiative. The National Pork Producers have been 
far in front of the crowd in engaging policy makers at the national 
level and in working with pork producers to address environmental 
problems. I look forward to continuing to work with them on these 
issues.
  Let me be clear that I want the livestock industry to thrive in both 
Iowa and across the United States. But for our industry to flourish, we 
need to get our environmental house in order. I do believe that we can 
have both a healthy livestock industry and a sound environment, and I 
hope that the Congress will act quickly to enact this tax credit to 
help producers get the tools they need to reach this goal.
  Mr. President, I ask unanimous consent that the bill and a letter of 
endorsement from the NPPC be printed in the Record.
  There being no objection, the items were ordered to be printed in the 
Record, as follows:
  [The bill was not available for printing. It will appear in a future 
edition of the Record.]
                                                     National Pork


                                             Producers Council

                               Washington, DC, September 16, 1998.
     Hon. Tom Harkin,
     U.S. Senate, Hart Office Building,
     Washington, DC.
       Dear Senator Harkin: I'm writing on behalf of the members 
     of the National Pork Producers Council (NPPC) to express our 
     support for allowing livestock producers to claim an income 
     tax credit for innovative environmental management equipment. 
     We believe the goal of any tax credit for livestock manure 
     handling practices and equipment should be to enhance the 
     quality of surface and ground water and the air. The focus 
     should be on those practices which are an alternative to 
     traditional storage and handling practices or which 
     significantly improve the function of traditional storage and 
     handling methods.
       Pork producers have been very aggressive in the development 
     of new regulations for their operations through the National 
     Environmental Dialogue on Pork Production recommendations. We 
     recognize that sound environmental management and compliance 
     with new regulations will, in many cases, require producers 
     to adopt and pay for new equipment. In an increasingly 
     competitive world pork industry, such a tax credit will 
     provide U.S. producers an important advantage in the rapid 
     development of sustainable, affordable production systems.
       We look forward to working with you to enact this important 
     initiative.
           Sincerely,
                                              Donna Reifschneider,
                                                President.
                                 ______