[Congressional Record Volume 144, Number 135 (Thursday, October 1, 1998)]
[Senate]
[Pages S11289-S11290]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ADDITIONAL STATEMENTS

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                  AGRICULTURE CRISIS IN RURAL AMERICA

 Mr. DURBIN. Mr. President, today I would like to take a few 
minutes to talk about a subject of great importance to my home state of 
Illinois--falling farm prices and the impending economic crisis in 
Rural America.
  Illinois is one of our country's most important agricultural 
contributors. Illinois farm land, which accounts for about 27 million 
acres, is considered some of the most productive in the world. More 
than 76,000 farm families in the state produce corn, soybeans, wheat, 
beef, pork, dairy products, and specialty crops. Illinois exports more 
than $3.4 billion worth of agricultural products. The state's 
agribusiness activity is vibrant. From the Chicago area to Decatur and 
throughout Illinois, agricultural processing employs thousands of 
people. And, our researchers, at the University of Illinois as well as 
at other institutions, continue to help provide answers to some of the 
most common as well as the most complex agricultural questions we face.
  With that said, the current downturn of agricultural prices is very 
troubling. Not just for Illinois' economy, but for the farm families 
who work to ensure that the state of Illinois, the country, and the 
world enjoy the safest and most abundant food supply.
  Recently, I had visits in my Washington office from almost every 
agriculture group in the state. I heard, firsthand, how farm income 
will fall to $42.5 billion in 1998, 20% lower than 1996 and 43% below 
the five year average. Meanwhile, total farm debt in 1998 has been 
estimated at $172 billion, the highest level since 1985. This decline 
in farm income could lead to massive job loss in the agriculture sector 
and in agribusiness, not to mention what it will do to our family 
farms.
  Last week, I hosted a roundtable discussion with 15 farmers in 
Springfield, Illinois to talk about the crisis in rural Illinois and 
America. It is clear that falling prices, the uncertainty with foreign 
markets--particularly in Asia and Russia, and poor weather conditions 
have contributed significantly to a severe economic crisis for our 
nation's farmers.
  I heard stories about low prices. In central Illinois, the price of 
corn went from $2.22/bu to $1.66/bu between July 17 and August 31, a 21 
percent decline over a six week period. During this same period, the 
price of soybeans went from $6.50/bu to $5.15/bu, also a 21% drop.
  To further illustrate the seriousness of this crisis, it is important 
to look at this drop in commodity prices from a historical perspective. 
At the Shipman Elevator in Shipman, Illinois, the price of corn on 
September 18, 1998, was $1.64/bu. On this same date in 1993, the price 
was $2.17/bu. The price of soybeans at the Shipman Elevator on 
September 18, 1993 was $6.14/bu compared to the September 18, 1998 
price of $5.00.
  Livestock prices have also dropped dramatically. The price of hogs at 
Farmland in Monmouth, Illinois, went from $54/cwt in September 1997 to 
$39/cwt in March 1998 to $29/cwt on September 18, 1998.
  At these prices, I worry that a number of our nation's farmers will 
not be able to survive. Whether this means leaving farming altogether 
or simply not being able to make their basic payments, I fear we are 
facing a serious economic crisis in rural America. And, farmers won't 
be the only ones impacted by this crisis. In the past several weeks, 
two of the world's largest agricultural equipment manufactures, Deere 
and Company, based in Moline, IL, and CASE Corporation, based in 
Racine, Wisconsin, have announced plans to reduce production and cut 
jobs. Both companies claim declining farm prices have reduced demand 
for their equipment. When American agriculture suffers, the effects are 
widespread, from equipment manufacturers to processors to commodity 
transporters.
  Mr. President, Congress needs to demonstrate strong leadership in the 
face of this economic crisis. There are some short-term solutions which 
have already been considered by this chamber--removing the cap on 
marketing loans and extending their terms, authorizing the Secretary of 
Agriculture to make emergency storage payments to farmers to encourage 
the use of marketing assistance loans, and replenishing the disaster 
reserve. Unfortunately, partisanship has gotten in the way of offering 
rural America a helping hand. This debate is not about the sanctity of 
the 1996 Farm Bill, it is about giving American agriculture some of the 
tools needed to improve economic conditions and regain stability.
  The Administration, led by Secretary Glickman, has also offered some 
suggestions on how to address this crisis. They have put forward a $7.1 
billion package to aid farmers including $2 billion in emergency 
disaster assistance. I welcome their proposal and leadership.
  In my Springfield meeting I was also told that many farmers won't 
feel the effects of the current crisis until well after the harvest 
when the grain bins are full and prices are at all-time lows. And, many 
of the farm leaders who have appealed to Congress and the 
Administration for help are concerned that this crisis could stretch 
into years rather than months. In short, they don't see an end in 
sight.
  Mr. President, Congress is scheduled to adjourn in less than two 
weeks. We

[[Page S11290]]

won't be able to single-handedly solve this serious economic crisis in 
rural America before we go home for the year. But, we shouldn't wait to 
address this important issue and offer some assistance. We should act 
soon and in a bipartisan fashion. We should explore short-term fixes, 
like lifting the cap on marketing loans, as well as long-term 
solutions, like tax fairness and expanded trade opportunities. We 
should stand up for the men and women in rural America and let them 
know that Congress and the Administration will work with them to help 
alleviate some of the economic pain and uncertainty they face.
  To do anything less would be a disservice to our farmers and American 
agriculture.

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