[Congressional Record Volume 144, Number 138 (Tuesday, October 6, 1998)]
[Senate]
[Pages S11545-S11562]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AGRICULTURAL, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND
RELATED AGENCIES APPROPRIATIONS ACT, 1999--CONFERENCE REPORT
The PRESIDING OFFICER. The Senate will now proceed to the conference
report on H.R. 4101 until 1:30 with the time equally divided.
The Senate resumed consideration of the conference report.
Mr. FEINGOLD addressed the Chair.
The PRESIDING OFFICER. The Senator from Wisconsin is recognized.
Who yields time?
Mr. FEINGOLD. Mr. President, I ask unanimous consent the full hour be
accorded that was intended for the agriculture appropriations bill.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. FEINGOLD. Mr. President, I yield myself such time as I require.
The PRESIDING OFFICER. Senator from Wisconsin is recognized.
Mr. FEINGOLD. Mr. President, I intend to vote against the Conference
Report on Fiscal Year 1999 Agriculture Appropriations bill for a number
of reasons. In the final version, the congressional majority has added
a $3.6 billion unfunded emergency spending provision, while
simultaneously stripping out consumer and farmer protections.
However, today I will focus on the worst provision in the conference
report. I am extremely disappointed that
[[Page S11546]]
the final version contains language from the House bill extending
USDA's rulemaking period on Federal Milk Marketing Order Reform. Once
again, on the issue of milk orders, bad politics prevailed over good
policy.
This extension will require the new milk pricing system to be in
place in October of 1999, instead of the original date of April, 1999
set in the Farm Bill. Mr. President, officials at USDA have assured me
that they did not request this extension nor do they need it.
House Appropriators argued that the extension was necessary to give
Congress ample time to review, comment and act on the final rule. They
claim that if the rule were to be announced in late November, they
would not have time to act on it. Mr. President, let's examine this
argument because it does not hold water. My House and Senate colleagues
who support this provision on these grounds surely remember passage of
the Small Business Regulatory Enforcement Fairness Act of 1996. This
law empowers Congress and the courts to overturn regulations with
Presidential approval. This law gives Congress 60 days to act, once a
rule has been published in the Federal Register. So, whether the rule
is published in late November, early December, or mid-February of 1999,
Congress has 60 days of session to act. So this really tells us what is
going on here.
Mr. President, this dairy provision was included solely to intimidate
and bully USDA and Secretary Glickman into an anti-Wisconsin dairy
pricing reform. Instead of allowing USDA to do its job, some Members of
Congress want to do it for them, and do it to benefit their own
producers at the expense of dairy farmers in the Upper Midwest.
Let's just take a look at the current system which is shown on this
chart, which some have called the Eau Claire system. I like to call it
the anti-Eau Claire system because it is an unfair system for Eau
Claire, WI, and our entire state--in fact, the entire upper Midwest.
This chart shows that the Class I differential received by dairy
farmers in Eau Claire, Wisconsin is $1.20 per hundredweight. Believe it
or not, Mr. President, Federal pricing policy dictates that the farther
you travel from Eau Claire, WI, the higher your Class I differential.
You will notice that the price in Chicago is $1.40, in Kansas City,
Missouri it's $1.92 and in Charlotte, NC it's $3.08 per hundredweight.
Our friends in Florida make $3.58 in Tallahassee, $3.88 in Tampa, and
$4.18 in Miami. Dairy farmers in Miami make nearly $3.00 more per
hundredweight than farmers in the Upper Midwest. Does that make any
sense? Absolutely not.
Let me illustrate this with another chart.
To illustrate just how senseless this whole system is, I have
borrowed this graphic from my colleague from Minnesota, Senator Rod
Grams. As you can see, pricing milk based on its distance from Eau
Claire, WI, is as arbitrary and ridiculous as pricing oranges from
their distance from Florida, computers from their distance from
Seattle, or--even more shocking to some of us--country music from its
distance from Nashville. But wait, now that I think about it, maybe
Congress should pass legislation to price maple syrup based on its
distance from Burlington, VT, and white wine on its distance from
California. While we are at it, lets pass a law to pay Members of
Congress according to the distance of their hometown from Washington,
DC. Sound ridiculous? It is, just as the current milk pricing system is
ridiculous. It would almost be funny if it weren't so destructively
unfair to Wisconsin's dairy farmers, undermining the livelihoods of
their families.
Mr. President, the current system desperately needs reform, a reform
the Secretary of Agriculture has indicated he is willing to make--but
that some members of Congress are very anxious to prevent. This poster
is an illustration of today's Federal milk pricing system--how milk is
produced and priced in America. You can see that the price of milk
begins not with the cow, but with the Congress. Its interesting to note
that the market and the farmer don't enter into the equation until two-
thirds down the page. I could walk you through all the confusing steps
shown here, but I understand we are scheduled to recess sometime in
October, and frankly, I would need until mid-November to describe fully
the inequity of this system.
This system has outlived its usefulness, its patently unfair and its
bad policy.
The extension of USDA's rulemaking had another intent as well.
Extending the rulemaking period automatically extends the life of the
Northeast Interstate Dairy Compact. The 1996 Farm Bill requires a
sunset of the Compact when the new federal pricing system is
implemented. At the rate Congress is going, tacking this issue onto
appropriations bills, there is no telling when implementation will now
occur.
The effects of the Compact on consumers within the region and
producers outside of it is indisputable. Dairy compacts are harmful,
unnecessary and a burden to this country's taxpayers.
The worst part of this entire 65 year dairy fiasco is its effect on
the producers in the Upper Midwest. The 6 month extension puts an
additional 900 Wisconsin producers at risk. Wisconsin loses
approximately 3 dairy farmers a day. Producers cannot stand 6 more days
of the current program, let along 6 more months.
I am truly troubled by this turn of events and would like to read
into the record a few excerpts from letters I have received from
struggling dairy farmers in my home state of Wisconsin.
From Pulaski, Wisconsin a constituent writes:
I would love to encourage my son or daughter to take over
this farm someday. But without a fair pricing system, they
cannot earn a decent living, and I cannot and will not
encourage them to farm. That will be a great loss to the
world of agriculture.
A letter from Bloomer, WI reads:
We, in the Upper Midwest are not asking for a handout, just
a more level playing field. Fair competition and price reform
is our only hope.
Another constituent writes:
In my opinion, just because a pricing system has been in
implementation for years, doesn't make it useful today. It
must also change with the times. How many more farms are we
willing to let fall victim to the prejudiced pricing? . . .
Its much easier to put a pillow over our heads, roll over and
ignore the cry for help from the Wisconsin dairy farmers . .
. I realize changing the present milk pricing system will not
heal the strained economics of dairy farming. It's only a
step . . . I urge you to take this step and . . . hear the
cry of dairy farmers like me.
And finally, a dairy producer makes this comment:
Eau Claire was chosen as the reference point because it was
judged by the government to be the center of the dairy
industry's most productive region. Since California now
produces more milk than Wisconsin, this [rule] should no
longer apply. Maybe we should change the [milk pricing]
reference point to Fresno, California, to encourage dairy
production in the Midwest.
These examples illustrate the need for dairy pricing reform and
illustrate the state of Wisconsin's dairy industry- struggling
needlessly under the burden of current dairy policy.
Mr. President, not only is legislating dairy policy on this bill
inappropriate, its bad precedent, it circumvents the appropriate
committees, the Agriculture and Judiciary Committees, and circumvents
USDA's authority. We ought to give USDA the opportunity to do the right
thing for today's national dairy industry and put an end to the unfair
Eau Claire system now, not 6 months from now.
Mr. President, I urge my colleagues to take a second look at this
antiquated and harmful policy. Stand up for equity, fairness, and for
what is best for America's dairy industry, our consumers and our
taxpayers. I yield back the floor.
Mr. COCHRAN addressed the Chair.
The PRESIDING OFFICER (Mr. Sessions). The Senator from Mississippi.
Mr. COCHRAN. Mr. President, I yield myself such time as I may
consume.
The PRESIDING OFFICER. The Senator from Mississippi is recognized.
Mr. COCHRAN. Mr. President, we begin consideration again today of the
Agriculture Appropriations Conference Report. Yesterday we were on that
report for 3\1/2\ hours and had a full discussion of views on the
question of whether or not the conference report should be adopted. I
was pleased to see this morning an assessment of the situation by the
Washington Post, in an editorial entitled, ``The Appropriations Game.''
I read excerpts from that editorial:
In the agricultural bill, an election-year bidding war has
broken out between the parties over aid to distressed
farmers. This is
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one from which the president should back away . . . The
Democrats want not just to give a larger amount but to do
so in such a way as to repudiate the last farm bill . . .
The administration earlier in the year rightly resisted
the position it has now adopted; it should revert.
That is the end of the quotation from the Washington Post editorial.
I think it appropriately points out the difficulty we face in
confronting a threat from the President to veto this conference report.
It is not just about money.
The President is suggesting, through his Secretary of Agriculture and
through the Democratic leadership, that this conference report is
unacceptable, not because it doesn't appropriate enough money, but
because it doesn't change the policy that was agreed upon in the 1996
farm bill and signed by this President. It changes a fundamental policy
of setting Government loan rates and using them to encourage the
planning of some five or more specific commodities.
To get away from that old way of Government support, the Congress and
the President, the administration, worked together to develop an
alternative, a farm policy that would be driven by the dictates of the
market, the demands of the market, the signals that the market would
send to producers to indicate what prices might likely be during a crop
year, and farmers themselves would make the choice as to what they
would plant.
Some call this Freedom to Farm--freedom to plant what you want to
rather than what the Government dictates you have to plant in order to
be eligible for Government support. To make this a transition where the
Government wasn't going to just say, ``OK, everybody, you're on your
own, farmers are on their own,'' there would be a series, over 5 years,
of transition payments made.
Interestingly enough, as pointed out by the distinguished Senator
from Kansas, Senator Roberts, yesterday during the debate, this year's
transition payments are going to be higher. It was assumed by the
writers of that policy, the legislative committees, that at first
farmers would really need to have higher payments. They were very
prescient figuring this out and including that provision in the farm
bill.
What we have suggested in our disaster assistance plan is, not to
change the policy, but to provide bonus payments under the market
transition formulas to increase the amount that all producers who are
eligible for these payments would receive to help deal with the income
losses that are occurring because of lost markets in Asia and elsewhere
during this global economic crisis.
Then there are those who have sustained weather-related disasters in
certain areas, which has meant lost crops, not just lost income, not
just diminished yields, which the increased market transition payments
will help deal with. But, for those who have suffered crop losses, no
loan rate is going to help them. There is nothing to put under the
loan.
The Washington Post points out, correctly, that we are not just in a
bidding war on this bill--we are out of sorts because the Democrats
keep advertising that their plan is worth $7 billion plus, and the
Republicans only $4 billion; and therefore, the Democrats have a
preferable plan and one that would provide more benefits--but the fact
is, you change the policy instead of providing direct disaster
assistance and you are not necessarily delivering money to those people
who need the disaster benefits.
The $4.2 billion plan is a direct assistance plan to those who
qualify because they have suffered losses, plus the additional amount
that is included in the transition bonuses.
We continue to debate the issue. I am hopeful the Senate will approve
the conference report. We have voted twice in the Senate, at the
Democrats' insistence, on lifting the loan caps under the 1996 farm
bill, and that has been rejected each time. We have voted twice on it,
and twice it has been rejected. Now the administration is saying if you
don't reconsider those two decisions, put that or something similar in
the farm bill, in the disaster program, then the President will veto
the bill.
This is a $59.9 billion bill--$59.9 billion. We are talking about a
very small part, a disagreement on a matter of policy where the
Democrats are trying to get the Congress to be required by this
President to repudiate a part of the 1996 farm bill so some Senators, I
suppose, can go home and say, ``I told you so; we had a better bill,''
even though it has been pointed out clearly that under the old farm
bill, under the old policy that they are trying to reinstate pro
tanto--a good law school phrase--they would be getting less money.
Under the Freedom to Farm bill, all farmers are getting more money
from the Government as transition payments than they would have been
eligible to receive under the 1996 farm bill which they want to exhume,
resurrect, breathe life into, and put back on the books. That is not a
very impressive proposal. That is not a very attractive proposal, and
this Senate ought to reject it.
I hope there will be votes enough to override the President's veto.
It has been done before on an agriculture appropriations bill. It was a
long time ago. But you usually don't see a President vetoing an
agriculture appropriations bill. I hope somebody will get around to
pointing out what all is in this bill for production agriculture, for
the women, infants, and children feeding program, for food stamps for
people who are unable to provide for their own nutrition needs, for
school lunch and breakfast programs.
I just came from a conference with the House on a reauthorization
bill for child nutrition programs. We have some very important needs
that are met in this legislation. Close to 65 percent of the funding in
this appropriations bill that we are approving today goes to help
people provide for their own nutrition needs.
The President may call this a veto of a disaster assistance program,
but that is one very small part of what he is saying no to. He is
rejecting the hard work of many Members of this body and the other body
as well in crafting a bill that meets the need for agriculture
research, for rural water and sewer system loans and grants, for
economic development initiatives in small towns and rural communities
throughout the United States.
If one looks at the amount of money that goes to support production
agriculture in this legislation, it is minuscule compared to the total
amount being spent on other programs. Many in agriculture have said
that this bill should not even be named an agriculture appropriations
bill--that there should be a more accurate way of describing the
funding that is contained in the bill. It doesn't go to agriculture, or
at least not most of it, very little of it, as a percentage of the
total amount appropriated. But the President is willing to put at risk
those programs that are funded in this bill to accommodate the
interests of a few Senators who are suggesting that this is an unfair,
an insensitive approach to providing disaster assistance to those who
have suffered weather-related disasters and suffered because of a
downturn in the world economic situation.
We are confronting a serious crisis in American agriculture. This
bill responds to that crisis by providing direct assistance to those
who have been harmed and who are eligible for transition payments and
weather-related disaster benefits.
I suggest the Washington Post is right about this, and to repeat what
they say this morning in this editorial, this is an election-year
bidding war from which the President should back away.
The Democrats want not just to give a larger amount but to
do so in such a way as to repudiate the last farm bill. . . .
The administration earlier in the year rightly resisted the
position it has now adopted; it should revert.
And so the observers at the Washington Post have figured this out. I
hope that Senators will resist the entreaties being made to vote
against this bill. This conference report ought to be adopted. It is a
fair allocation of resources across the programs that are funded in the
bill.
I mentioned the Department of Agriculture programs that are funded in
the bill that the President is willing to put at risk and to create the
uncertainty and the anxieties among those who are expecting benefits at
the beginning of this fiscal year. Right now we are operating under a
continuing resolution. To veto the bill creates more delay, more
uncertainty, more
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anxiety. It puts in jeopardy the very benefits we are trying to make
available for people now.
Farmers need help now. They are beginning to be skeptical of the
whole process and promises that are made by the Federal Government. I
would like to do something to correct that. I would like to make sure
that Government is trusted again to do what it promises to do and what
it says it is willing to do, and many of us have been trying to put
together a package of benefits that makes sense, is supported by the
facts, can be administered.
We provide additional funds in this bill for the administration of
the program. And it is going to cost more. We have tried to work with
the administration to determine the amount needed so that there will
not have to be extra burdens assumed at county offices throughout the
country, where there will be an increase in the workload, where there
will be more demands made on the administration, the farm service
agency in particular.
We have tried to cooperate with this administration. It was our
recommendation at the conference that these funds be added to help the
administration deal with it. And now they turn right around and say,
``We're going to veto that bill because it is inconsistent with the
proposal made by Senate Democrats on the Senate floor,'' that was twice
rejected by the Senate. ``If you don't include the disaster bill the
way they want it written or in that respect, then we're going to veto
this entire bill.''
This entire bill, Mr. President, provides $56 billion in funding for
a wide range of programs, most of them nutrition assistance, as I
mentioned. So I hope the people in the country will stop and think what
this administration is about to do to you if you are depending upon and
looking to the Federal Government for support in nutrition programs. If
you have free and reduced lunch and breakfast programs in your schools,
they are not going to be funded on time because this President says,
``I'm vetoing this bill because it doesn't satisfy a few Senate
Democrats.''
That is not only bad politics, that is bad Government, and it ought
to be repudiated by the Congress. If the President does insist on
carrying out this promise or this threat to veto the bill, I hope the
Senate will--if the House can--overturn the veto and not sustain the
President's action.
The Washington Post is right, the President ought to go back to the
position he earlier had taken. The President signed the 1996 farm bill,
and now he is suggesting that we need to go back and rewrite portions
of it and that that will satisfy the needs of production agriculture,
that that would be a better deal for farmers. The fact of the matter
is, if we start going down that old road again, we will have an
unworkable and unpredictable level of support from the Federal
Government.
Now farmers know what the Federal Government is going to provide in
transition payments that are outlined in legislation over a 5-year
period. Farmers can look at that. They can make judgments about what is
best for their own farm operation, what the market conditions are, so
that they can make decisions based on what is best for them at that
farm in that crop year, given their own economic conditions as to what
they will do. They will not lose benefits because they make a decision
to change the crop they are planting. They would under the old law. If
you do not plant that same crop that you are eligible for, you lose
your eligibility for any assistance from the Government.
And another thing. If you do not make a crop, you cannot put any crop
in the loan. You cannot put an empty basket under the loan program that
the Democrats are trying to resurrect. So if you would--like you have
in southern Georgia--have crop losses, and you just plowed up a field,
and you did not even try to harvest it because it was burned up,
increasing the loan rate would not help you--not a bit.
So my point is, the Democrats' plan is not all that it is cracked up
to be. It is more an expression of frustration. And I sympathize with
the frustration in many parts of the country. It is an effort to grasp
at some straw in the wind and hold out the hope that this is going to
make everything right.
We are doing a very workmanlike job, in my view, of bringing together
all of the different problems in agriculture and trying to design a
program of benefits and assistance that helps farmers make it to the
next year, helps compensate them to the extent that some will be spared
going into bankruptcy or having to sell their farms at a forced sale.
And it is that bad in some areas.
We think this is a balanced approach, not only for this disaster
assistance program that is funded in this bill to the extent of $4.2
billion. That is in addition to all the other transition payments that
we are providing under the existing law. And an option to obtain an
accelerated payment of next year's market transition payment, that is
available now in October because of a bill that was passed just
recently.
We think the bill itself, the entire conference report, justifies the
support of this Senate and an overwhelming vote to approve it and to
send it to the President.
Before I yield the floor, Mr. President, I want to point out that
this is just one aspect of what is being done or what is attempted to
be done by this Congress to help the outlook for farming in America and
in agriculture. Our economy--that is one of the most successful of any
sectors of our economy in terms of its ability to export, to generate
income for people not just on the farm but at the store, driving trucks
in the transportation system, the inputs that go into production
agriculture, the equipment that is purchased, the seeds, all the rest
that go into this giant part of our economy--is very important to our
country.
We generate a positive trade balance. I think this year it is going
to be almost $20 billion in trade surplus. This is comparing the amount
and the value of exports with imports of agriculture and food products.
The House just recently passed a tax bill, reported out of the House
Ways and Means Committee. It was my hope that we could take that bill
up here and pass it in the Senate, because it delivers to farmers and
farm families some new tax benefits that can help them in this time of
crisis on the farm and would be good policy changes for the future, one
of which permits a 5-year carryback of operating losses. Another makes
permanent the income averaging provision of the more recent tax bill
that was signed into law. Another accelerates the phasing in of
exemptions of inheritance tax and gift tax for small businesses and
farms. That is very helpful to farmers and farm families.
Another provides 100 percent deductibility of the costs of self-
employed health insurance, health insurance for those people who work
for themselves. In the past, they weren't able to deduct the costs of
that health insurance.
Under the bill that was reported out of the House Ways and Means
Committee and passed by the other body, the total costs of that premium
could be deducted from income tax. We should make that the law now.
Farmers need that now. Farm families need that benefit now.
Because of a threat by the Democrat minority, we can't call that bill
up. We are told there will be an objection. And if a motion is made to
proceed to consider the House bill, 60 votes would be required to shut
off debate on the motion to proceed. So that bill is unlikely to be
considered by the Senate, we are told, because of those objections and
that resistance. Again the President said, ``If you pass it, I will
veto that.''
So farmers ought to know where the problem is. They are being told
with big speeches out here and a lot of charts that the Democrats are
the farmers' best friend. The evidence is piling up on the other side
of that argument. I think it is going to become very, very clear that
that is not the case.
Here is another example. We have been told that American agriculture
is suffering right now--unfairness in the international marketplace.
People are erecting barriers to trade while we are trying to sell more
in the market or break into a new market for agriculture products and
foodstuffs, that we are running into barriers of one kind or another,
and that the importation of certain foodstuff--cattle, wheat--from
Canada violates existing rules of fair trade in this hemisphere. For
months, the administration has done absolutely nothing that I know of
to try to deal with that situation.
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One thing they asked last year of the Congress was to enact fast-
track negotiating authority for the administration so agreements to
adjust these problems, to resolve the difficulties, could be negotiated
and worked out. Congress would make a commitment that if fair
agreements were worked out we would take them up under fast-track
procedures and vote them up or down. So the Speaker of the House, as we
were working to put together the disaster assistance program, agreed he
would call up the fast-track authority legislation in the House for a
vote; the Senate has acted. The House couldn't pass it because the
Democrats wouldn't vote for it. A huge number of Democrats voted
against it. The President, apparently without the ability to lead on
that issue in the House, couldn't turn out the votes to pass the
legislation he said was important, he said was needed to help
agriculture. The Republican leadership called it up and most of them
voted for it.
I am suggesting that is another example of a problem that we have
here in the government. I am not trying to put this into a partisan
debate to say that the Republicans are right on everything and the
Democrats are wrong; but I am pointing out these facts that exist in
the context of trying to do something to help farmers and help
agriculture.
Most people live outside the United States, and if the growth is
going to be achieved in agriculture sales and we are going to see
increases in incomes and prices, we are going to have to sell more of
what we produce in the export market. Mr. President, 95 percent of the
people in this world live outside the United States. It is that area of
the world where the population is growing the fastest. The needs are
greater for foodstuffs.
I hope, as Senators look at this problem and try to decide whether we
are doing the right thing or not by approving this bill, they will
recognize we can't solve every problem that this sector has in one
bill. But this is a very positive step toward dealing with the real
crisis that exists out there in agriculture today. I am hopeful that
the Senate will vote for this conference report and that we will have a
resounding vote to overturn and override the President's veto, if he
insists on continuing down this path. It is wrong. It is not justified.
I hope he will change his mind.
I yield to the distinguished Senator from Idaho such time as he may
consume.
The PRESIDING OFFICER. The Senator from Idaho.
Mr. CRAIG. Mr. President, let me join with my chairman, Senator Thad
Cochran, chairman of the Agricultural Appropriations Subcommittee, who
spoke with a certain amount of frustration in his voice just a few
moments ago. He has every reason to be frustrated.
This chairman has bent over backwards in the last 6 months trying to
understand and address the agricultural crisis that is now upon
America's production agriculture. He has joined with us--those of us
here in the Senate who come from strong agricultural States--at every
step along the way to see how we could resolve this under current
policy. I don't blame his frustration.
I came to the floor just a few moments ago to announce that the
President is in town for the full week for the first time in a good
many weeks, and the first thing he says is that he is going to veto the
agriculture appropriations bill. I am critical of this President. Mr.
President, wake up. You haven't had a position on agriculture your
entire term in office. Now you say, ``I'm going to veto,'' at a time
when this Congress has worked collectively, on a very strong bipartisan
vote on the House side just last week, 333 House Members, Democrat and
Republican, on the very issue that we have on the floor now that the
chairman has spoken to and that we will vote on this afternoon.
I am not quite sure why he is doing that. I suggested this morning
that maybe it was a bit of ``Wag the Dog.'' I don't want to make
accusations, but why isn't he helping us, working with us to resolve
this, rather than simply addressing it with a veto threat.
What has the bill to offer production agriculture? For the last
several days, we have laid out the amount of money that is being spent
that will go directly to farmers to offset the market losses that they
have experienced, the very real and dramatic declines in commodity
prices that are going to place some of our very good farmers and
ranchers in bankruptcy. We want to be sensitive to that. This Congress
is being sensitive to that with a $4.2 billion package. Payments
directly to farmers who have experienced natural disasters--$1.5
billion for that--who through no fault of their own, have lost their
crops; market loss payments, reflective of what has gone on in the
Pacific Rim and the loss of markets there, payments of about $1.65
billion, directly down through to the farmer and the rancher; a
multiple-year losses program of about $675 million; livestock feed
assistance for those areas that were ``droughted'' out who obviously
produced no feed for their livestock this year and are having to reach
well outside their barriers and pay premium price for hay to be brought
in; and, of course, emergency-related aid of about $200 million. This
bill is very sensitive to the needs of production agriculture.
What is the debate really about? Why would the President want to veto
a bill that provides so much at a time of true need to production
agriculture? As I said, it could be a ``Wag the Dog'' problem, but more
importantly it is probably a debate over significant problems.
We--Republicans--believe, and I think American agriculture supports a
recognition that farmers ought to be farming to the market. The Freedom
to Farm bill reflected that and we made significant change to policy.
We also said government has a responsibility to break down the
political barriers that the chairman spoke about to expand world trade,
and yet the tools to do that are rusting down in the toolshed at USDA
because they have failed to use them. Throughout the time this crisis
was growing, not one kernel of grain was purchased for humanitarian
purposes. Yet, the Secretary had the tools to do it. The Secretary had
the tools to enhance trade for the purpose of moving the product that
was stored out there on America's farms, or in America's granaries.
Yet, that didn't happen. And now, all of a sudden, when we are trying
to shape some form of aid to get us through this cropping season and
keep what American farmers say is a good farm policy in place, the
President takes time off from his world travels and his campaign
fundraising events to say, ``I am going to veto this bill.''
Mr. President, I hope you will study it a bit and change your mind,
because if you think you are going to use an additional $3 billion or
$4 billion from the surplus that you want to put in Social Security to
save Social Security, think again. It isn't necessary and it isn't
needed, and I don't think this Congress is willing to provide it. Those
are the realities with which we are dealing.
The PRESIDING OFFICER. The time of the Senator has expired.
Mr. CRAIG. With that, Mr. President, I yield the floor.
Mr. WELLSTONE addressed the Chair.
The PRESIDING OFFICER. The Senator from Minnesota is recognized.
Mr. WELLSTONE. Mr. President, how much time do those in opposition
have?
The PRESIDING OFFICER. Twenty minutes.
Mr. WELLSTONE. Does the manager know whether or not others are going
to come over on our side?
Mr. COCHRAN. If the Senator will yield, I think other Senators want
to speak, but not right now. We have another hour, from 2:15 to 3:15,
that will be available for debate. So as long as you see no competition
on your side of the aisle, you have it all to yourself.
Mr. WELLSTONE. I thank my colleague.
Mr. President, I had a chance to speak yesterday and I don't want to
really repeat the arguments I made yesterday. I do not intend to vote
for this bill today, but I think that by the end of the week, or at
least I am hopeful, we will be able to resolve our differences and pass
a farm relief bill that will do the job--or at least will be a huge
help for family farmers in Minnesota and across the country.
Mr. President, the President of the United States indicated on
Saturday that the farm relief bill--this bill that we are looking at
right now, which we will be voting on--is inadequate. He
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has said that more will need to be done with farm relief. It will have
to be improved before he can sign an Agriculture appropriations bill. I
am hopeful that either following the veto of this bill, or as part of
the negotiations --and I think I have a different view from my
colleague from Idaho, I am not sure--as part of the negotiations on the
emergency supplemental packages, which may be included in an omnibus
appropriations bill, we will see an improved version of this farm
relief package.
I said yesterday to my colleague from Mississippi, Senator Cochran, I
much appreciate the work he has done. We have come a significant way
from where we were. This is a $4 billion relief package. I think that
given the position the President has taken --and as a Senator from
Minnesota, I have certainly requested that he take this position; I
have said I hope he will veto this bill or wait until we get some kind
of relief package that I think would do a better job. I have to
continue to fight as long and as hard as I can for family farmers in my
State, for what I think will be most helpful to them. Frankly, I
believe that given the Senators who are dealing with this question on
both sides of the aisle--we all care fiercely about agriculture, and I
think we have an understanding about it--I don't see any reason why, by
the end of this week, given the position the President has taken, we
can't have some really strenuous, but I think substantive, negotiations
and come up with a much better relief package.
Now, this relief package that my colleague, Senator Cochran, brings
to the floor of the Senate is a credible effort. But I think it is
insufficient. There is an inadequate amount of money, and I think it
utilizes the wrong mechanism to deliver the assistance that is meant to
address the price crisis. Let me just be clear about what is at issue
here. Surely, given the position the President is taking, which is the
position that the Senator from Minnesota and many other Midwestern
Senators asked him to take, which is to make it clear that he will veto
this bill unless there are negotiations and we can get a better
package.
Why have we taken this position? Well, our proposal, $7 billion-plus,
and the proposal we have before us on the floor of the Senate are
similar in that both include between $2 billion and $2.5 billion for
indemnity assistance for crop loss. This is an increase from the
original $500 million, which many of us worked very hard to include in
the original Senate bill. It is not surprising. There are a whole lot
of people who have really been hit hard and who need the help.
The Republican package, however, that is before us also contains an
additional $1.7 billion. So there is agreement on the indemnity part.
We went from $500 million to $2 billion to $2.5 billion. The Republican
package also contains about $1.7 billion to address the price crisis.
The way they deliver this assistance is through a supplemental or bonus
transition payment, and that is where there is a big disagreement. The
prices for our major commodities, such as wheat, corn and soybeans, are
15 to 30 percent below the 5-year market average. Our $5 billion
proposal to address the price crisis--where there is the difference
here--would lift the current caps on the loan rate and raise those loan
rates about 57 cents a bushel for wheat, about 28 cents a bushel for
corn, and over 20 cents a bushel for soybeans. This would not only
immediately boost farm income for the farmers of these commodities, but
in raising the loan rate, it also has a beneficial effect on market
prices. It tends to lift them up. That is why I think our proposal is
superior.
Mr. President, I worry about these transition payments because I
think there are a couple of problems with them. First of all, these
payments are based on the old farm program's historic yields. Farmers
such as traditional soybean farmers, who never had a program based on
the old program, don't get any of these AMTA payments. That is one huge
problem. On the other hand, it is possible for some people who might
not even have planted a crop to receive them because the Freedom to
Farm--or what I call the ``Freedom to Fail''--payments are completely
unconnected to production or price.
I have to tell you, that is the key issue. That is the key
difference. At the very minimum, in dealing with the price crisis, we
ought to make sure that the payments are connected to production and
price. So what we have here in this bill is the wrong mechanism for
addressing the price crisis. Our proposal would lift the cap on the
loan rates. I think there can be negotiation. The President is correct
in vetoing this bill if that is what is required to get better
assistance. Thousands of family farmers across the country could go out
of business due to conditions that are beyond their control. In
Minnesota, up to 20 percent of our family farmers are threatened. Now,
the other part of this is that the Democratic proposal for the State of
Minnesota is worth about an additional one-quarter of a billion
dollars.
I ask the Chair, has 20 minutes expired?
The PRESIDING OFFICER. Twelve minutes remain.
Mr. WELLSTONE. The proposal is worth an additional one-quarter of a
billion dollars for agriculture in Minnesota, for rural Minnesota, for
what we call ``greater Minnesota.'' It is no small amount of money,
especially when you consider the multiplier effect in our communities.
So I say to my colleague, Senator Cochran from Mississippi, this is a
start. I am going to vote against this. The President has said he is
going to veto it unless there is further negotiation. I think we can do
better. I don't like the rider that basically continues another 6
months with the dairy compact. I have dairy farmers in my State who are
going under because of very unfair pricing mechanisms.
In addition, I emphasis again, we are in agreement when it comes to
crop losses, disaster, people who didn't have the insurance because of
wet weather, scab disease or whatever. We are not in agreement on the
price.
There are two problems. The main one is at the very minimum you have
to target the price, whatever you do by way of dealing with low prices.
You have to make sure that the payments are connected to the production
of the price. Too many of these transition payments go to landowners,
and not necessarily producers. I don't think that makes a lot of sense.
Some, like soybean growers, won't be helped at all.
I think we can do better on the price part. I think we have to do
better if this relief package is going to do the job. I think we have
some differences out here. They are honestly held differences. All of
us care about agriculture. All of us know what the economic and
personal pain is out there in the countryside.
Some are quite often critical of some of the President's policies,
but I thank him for exerting strong leadership on this question and for
making it clear that surely this week in negotiations we can do better.
We can come up with an even better package.
My colleague from Mississippi brings a package out here that is an
important start. We are going to get the job done by the end of the
week or by next week. We are going to get the job done. We are going to
have a relief package, because we have to, because that is why we are
here. I believe we can do that through the negotiations that are to
come.
bison inspection
Mr. ALLARD. Mr. President, I would like to engage in a colloquy with
my good friend from Vermont, Senator Leahy regarding an issue that
impacts bison ranchers nationwide as well as in both of our States.
It is my understanding that the U.S. Department of Agriculture has
taken major steps during the past year to ensure that our country's
food supply is as safe as possible. USDA requires all firms that wish
to sell meat to USDA and other Federal agencies to comply with newly
adopted regulations known as HACCP.
It is also my understanding that the beef, pork, and poultry
industries are provided USDA inspection at no cost, and that ranchers
who raise American bison must pay a steep fee to USDA for inspection at
slaughter and inspection of products to be sold to USDA. These costs
exceed $40 per hour, per inspector, both for inspection at slaughter
and at further processing.
I would like to ask my colleague on the Agricultural Appropriations
Subcommittee, Senator Leahy, whether he
[[Page S11551]]
would agree with me that USDA should explore what impact inspection
fees has on the bison industry?
Mr. LEAHY. Yes, I do agree.
It is my understanding that USDA collects substantial fees from those
bison ranchers and processing firms for Federal inspection. It is my
understanding that this fee is set yearly by USDA and that it is
approximately $41 per hour. I believe that these fees directly impact
thousands of small ranchers who belong to the National Bison
Association.
Mr. ALLARD. Would the Senator further support asking Secretary
Glickman to report back this next year on ways in which USDA might
lower the inspection fees to help strengthen the U.S. bison industry.
Mr. LEAHY. We have bison ranchers in my state and in every other
State in the country. I agree with the Senator that while we are
looking for policies and programs that help small farmers and ranchers,
we look carefully at all other actions that could make a difference. I
believe that the issue of inspection fees charged bison producers
should be explored by the Department of Agriculture, and that the
Department should provide us with their analysis of this impact early
in 1999.
Mr. ALLARD. I thank the Senator for his comments.
Mr. GORTON. Mr. President, on March 28, 1996, Congress passed the
Federal Agricultural Improvement and Reform Act, most commonly referred
to as the farm bill. This comprehensive, forward looking legislation
provides U.S. agriculture the free market principles that our farmers
and ranchers requested and desired. Government no longer dictates to
farmers how much to plant, when to plant, when to buy, or when to sell.
The farm bill provides the flexibility, predictability, and simplicity
that our farmers and ranchers asked for from their government.
In the past few months, agriculture in the United States has been
impacted by chaotic world markets, natural disasters, and disease.
These occurrences are not the result of the Farm Bill, but without a
doubt have impacted the prices paid for U.S. commodities. As a member
of the Agriculture Appropriations Subcommittee, I had the opportunity
to review and subsequently pass a disaster package as part of the
Fiscal Year 1999 Agriculture Appropriations Conference Report. This
package includes relief for those farmers who experienced one or all
three of the aforementioned occurrences.
The Pacific Northwest is experiencing misfortune that is not weather
or disease related, but market related. Producers in the State of
Washington rely heavily on international trade. Wheat growers in the
state export approximately 85 percent of their crop. Our apple and
minor crop industries rely heavily on Asia as an export market. When
world markets collapse, so too does the price paid for each of these
commodities.
The disaster package which is included in the conference report
provides some relief for growers in Washington state. However, because
a bulk of the assistance provided in the package will benefit farmers
in the mid-west states, I voted with Senator Burns to increase the
relief plan by $610 million. Although this plan was defeated, I believe
the overall package is adequate and a necessary starting point for
recharging the cash flow to the family farm. This package, combined
with the Agriculture Market Transition Act payments farmers will
receive in October and December of this year, and the loan deficiency
payments for program crops totals over $17 billion in cash payments for
1998 and 1999.
Because Pacific Northwest agriculture is so trade dependent, I
believe we must focus on expanding trade and gaining new markets. In
this arena, I fear that the administration's silence has been
deafening.
Two weeks ago the House defeated the bill to provide the President
fast track-trade negotiating authority. Unfortunately, a wounded
President and a weak Secretary of the U.S. Department of Agriculture
failed to convince our colleagues the importance of passing this
legislation. With one in four jobs in the State of Washington directly
related to trade, and with agriculture being the State's number one
employer, the passage of fast track was essential.
Just last week I made a statement regarding the administration's
trade policy with China. Finally, a member of the Administration
commented on the inability of the President to make headway with
China's protectionist position. The Undersecretary of International
Trade at the Department of Commerce admitted that U.S. trade policy
with China is flawed and that the Administration's policy of
`engagement' has not moved China toward free trade practices.
China claims that wheat from our region is inflicted with a disease
called TCK smut. At the bipartisan request of many Senators from the
Pacific Northwest, the President was asked to discuss this bogus
phytosanitary concern with Chinese President Jiang Zemin. The President
personally met with President Zemin twice in the last two years, but
the Pacific Northwest wheat industry remains locked out of another
potential, enormous market.
As a border state of Canada, Washington has encountered many trade
discrepancies with our Northern counterparts. The beef trade between
Washington and Canada has evoked bad feelings and more recently
tensions escalated. Just two days ago, United States Trade
Representative Charlene Barshefsky and Agriculture Secretary Dan
Glickman announced their intention to begin intensive negotiations to
resolve some of the restrictive trade practices utilized by Canada.
While I applaud the Administration for taking this action, it is
unfortunate that it comes only after ranchers in bordering States began
blockading Canadian farm shipments. Agriculture trade relations have
been thorny with Canada for quite some time, and many believe that the
Administration's inability to support and defend the U.S. beef and
wheat industries in negotiations with Canada have left agriculture with
the short end of the stick. We are consistently being out-witted by the
Canadian trade negotiators and the farmers and ranchers in this country
are expected to pick up the pieces.
These are just a few of the Administration's trade policies which
directly impact the bottom line of farmers in the State of Washington.
While I recognize and empathize with the family farm at a time when
cash flow is sparse, I do not support the President or the
Administration in its threats to veto the Agriculture Appropriations
bill because the disaster package is not to their liking.
There are several items that in addition to this disaster package,
AMTA payments, and LDP payments which deserve attention. While
expansion of trade is of obvious importance to the State of Washington
and is certainly a long-term goal, regulatory relief, tax relief,
adequate funding for agriculture research, and deductibility of health
insurance for the self-employed are immediate mechanisms to provide
assistance to the family farm. Unfortunately, the vehicles providing
this relief--the Interior appropriations bill and the House passed tax
package--are also under the threat of a Presidential veto.
Mr. President, the Agriculture appropriations bill is a constructive
piece of legislation that deserves our support. While the unfortunate
politics of partisanship has appeared to weigh heavily on this
legislation, I sincerely hope that the Administration would remember
the family farm and the longevity of production agriculture in this
country and sign the bill.
Mr. LEAHY. Mr. President, if ironies were flowers the area inside the
Washington beltway would be covered with fields of flowers sprouting
out of every square inch of land.
I am surprised that many of the same Senators who say they want
farmers to receive higher income for what they produce strongly oppose
the same for other farmers if the product is not produced in their home
states.
Many Senators have recently spoken on the floor about the disaster
facing their farmers. Some have likened it to losses caused by natural
disasters such as Hurricanes. Regarding this farm disaster, their
biggest concern is the huge loss in farm income. The culprit this time
is low prices and the loss of farm income.
In speech after speech many complain that their farmers face low
prices--and thus low income. And, as is so often said, farmers do not
want welfare they want higher income for their
[[Page S11552]]
labors. These Senators assert that farmers do not just want a handout--
they want higher prices so they can earn an reasonable income and stay
in business.
Whether the commodity is wheat, soybeans, corn, or other feedgrains
we hear time and time again that prices are too low--and thus their
farmers may go out of business.
There is a sense of great panic in the farm community. It is real. I
am advised that farm income in some areas has been reduced by 98
percent. I have been moved by many of the compelling descriptions of
the agony faced by these farm families. I am concerned about this even
though my home state of Vermont is not as directly affected.
Thomas Paine made an interesting comment about these situations which
is still as true today as is was in 1776. He said: ``Panics, in some
cases, have their uses. . . . their peculiar advantage is, that they
are the touchstone of sincerity and hypocrisy, and bring things and men
to light, which might otherwise have lain forever undiscovered.''
There is indeed a touch of hypocrisy in this crisis. Some, including
some at the U.S. Department of Agriculture, see the loan deficiency
payments as a great solution. If prices drop below a target price the
farmers get the difference between their market price and this target
price. If prices increase above a certain level then the farmers cannot
receive this cash payment. Recently I twice voted for these proposals
along with every Democratic Senator save one.
I do think this approach is a good idea and I hope in the end it is
included in any continuing resolution we work out. It is important that
any income relief in the resolution be targeted to 1998 year crop
production and that it go to producers, not mere landowners.
Many strongly support this approach for commodities produced by their
farmers. However, if the benefit is to be provided to farmers not
producing their commodities some turn a deaf ear. This is an
unfortunate irony--some will not listen to the very arguments they use
to support additional income to their farmers if other commodities are
involved. I voted for their solution even though it is of little
benefit to my home state of Vermont. Turning a deaf ear toward farm
problems in other areas of the country raises a lot of concerns.
The Northeast Interstate Dairy Compact is the perfect example. The
major benefit of the compact is to provide income to farmers when milk
prices are low--income is not provided to farmers when prices rise past
a certain point. The amount of the payment a farmer gets depends on how
far milk prices are below the target price. You could simply repeat
those two sentences but substitute the word ``corn,'' ``soybeans'' or
``wheat,'' or whichever commodity, for ``milk'' and you have described
how the loan deficiency payment system works.
Many certainly want this benefit for their commodities. Some Senators
would rather their farmers get a check for increased ``freedom to farm
payments'' instead of cash payments called loan deficiency payments. In
this way these Senators provide cash to feedgrains producers to make up
for the fact that farm prices are so low. Either way, almost all
Senators want farmers to receive some additional cash payments. And
farms families deserve this.
But try to apply this system to milk prices and many Members of
Congress and some in the Administration say ``no.''
This is a major issue for me since more than 70 percent of all farm
income in my state is from dairy. Vermont is first in the nation in
terms of the relative importance of dairy to total farm income. This is
why the Compact is crucial to me.
Dairy farmers like other farmers work hard--milking cows early in the
morning, moving cows around to pasture, feeding them, worrying about
veterinary bills. I wish we could all work together on this matter--all
areas of the country--and support farm income for all producers.
I freely admit that the Compact does give dairy farmers a lot more
income when prices are low. It is supposed to do that--just like loan
deficiency payments. We are not concealing the fact that during the
first 6 months of operation OMB reported that ``New England dairy farm
income rose by an estimated $22-27 million . . . .''
Several Senators from the Upper Midwest insisted that OMB do a study
on the effects of the Compact. The OMB report is called the ``The
Economic Effects of the Northeast Interstate Dairy Compact.'' I will be
quoting a lot from that study that those Senators wanted in this floor
statement.
As a little background, the Interstate Dairy Compact Commission with
26 delegates appointed by the six governors is authorized to determine
a ``target price''--$16.94/cwt in this case. Under the Compact language
approved by the six states any state can opt-out temporarily--until a
later date that the state determines--or opt-in and receive that
additional income for producers. The Compact is voluntary, it is up to
each state.
As I just pointed out in this respect, when prices are low the effect
of the Compact is similar to the loan deficiency payments made under
marketing loan programs in that, roughly speaking, producers get the
difference between a ``capped'' target amount and the current price.
When farm prices are high, no cash payments are made to producers under
the Compact.
Why is this additional income for dairy farmers as justifiable as
additional income--whether in the form of loan deficiency payments or
increased freedom to farm payments--for feedgrain farmers? The answer
is simple--it keeps their families on the farm. All farmers deserve to
earn a decent income for their families.
This additional income to farmers in New England based on the Compact
has kept farmers in business. For example, news articles have focused
on how in Connecticut and Vermont the rate of farm loss is much less
than before the Compact went into effect. Before the Compact, OMB
reports that New England suffered a ``20-percent decline'' in the
number of farms with milk cows from 1990 to 1996. Now, this horrible
rate of attrition has stopped. I wish other states could also stop
their loss of farm families. I have supported reasonable efforts to
keep family farmers in business throughout our country and will insist
on that in any continuing resolution.
It is clear that efforts to keep dairy farmers in business will
become more critical over time since, as OMB reports, ``the Farm Bill
also calls for the termination of many elements of USDA's current dairy
program by January 2000.'' Also, dairy producers do not receive any so-
called ``freedom to farm payments" for milk production and the milk
support program will be terminated in the year 2000.
Also, since dairy farmers sell a perishable fluid product that needs
refrigeration they are not able to hold product off the market until
they can get a better price. Feedgrains can be and are stored to get a
better price--indeed the government will even give you a loan based on
the value of the grain you are storing. This provides farmers with cash
to pay bills--this program is not available regarding the production of
milk.
Of course, by taking this grain off the market this can have the
effect of increasing grain prices. FAPRI has provided Congress with
information on these anticipated increases in grain prices based on the
marketing loan program.
One disadvantage to increasing the caps in marketing loan programs,
or increasing freedom to farm payments, is that it costs taxpayers a
bundle--in this case several billion dollars. I voted for the marketing
loan proposals twice because I think it is worth it to increase farm
income in Iowa, North Dakota, South Dakota, Nebraska, Missouri and a
number of other states. While marketing loan programs do not benefit
New England dairy farmers, I have always felt that farmers should stick
together and help each other out. I wish more Members of Congress felt
that way.
I am very willing to work with my Colleagues from the Upper Midwest
to try to figure a way so that all of us can work together. But I will
insist on one thing--that our goal should be to protect income for
dairy farmers and to keep farmers in business. I do have some ideas
that I think we can all agree upon and want to sit down with my
Colleagues from the Upper Midwest, and around the country, to work
something out.
I will support reasonable programs that benefit their farmers, as I
do
[[Page S11553]]
farmers in others states and as I do for other commodities.
As long as I am on the subject of the Compact I want to make a few
additional points about how well it is working.
First, I want to thank many of the Members of Congress who want to
support farm income for all farmers--not just farmers producing
feedgrains. I am very pleased that the Compact will get a short
extension in the appropriations bill. Some opponents have begun
complaining that it is included in the Agriculture Appropriations bill.
It was included in the House bill and is now included in the Conference
Report.
I am very pleased with this since the 1996 farm bill created a three-
year Compact pilot project for the Northeast. However, long delays in
implementing the Compact by USDA have cut that three-year period down
to less than two years. That is not what the Congress had in mind when
it passed a three-year time period in 1996. I am pleased that this
Appropriations Bill will extend the Compact at least until September
30, 1999, so that the Congress can find out how well it has served
farmers. Even with this extension, the time-period is less than
Congress set forth in 1996.
It is interesting that one of my distinguished Colleagues blasted the
Compact on the Senate floor by saying that dairy farmers have not seen
positive benefits as a result of the compact. What surprises me about
this statement is that most dairy farmers would say that a significant
increase in their income over a six-month period was a ``positive
benefit.''
Maybe things are different in the Upper Midwest but New England
farmers like this increase in income and consider higher income a
positive benefit. It could be that since New England only produces
three percent of the fluid milk in the nation that an increase of $22
million to $27 million in income over a six month period, according to
OMB, is not considered large by Upper Midwest standards.
I also disagree with the complaint that under the Compact ``consumers
have been hurt by higher prices.'' OMB has an answer for that which
proves the value of the Compact. OMB reported after an initial increase
in prices at some stores just as the Compact was implemented that:
``New England retail milk prices by December [the sixth month after
implementation] returned to the historical relationship to national
levels, being about $0.05 per gallon lower.''
So, OMB has concluded that consumer milk prices are lower in New
England than the rest of the nation. I would like to repeat that--
consumer prices in New England with the Compact are lower than national
levels. I would encourage a study to check out that relationship now--I
am very confident that prices in New England are still lower than the
rest of the nation.
The Connecticut Agriculture Commissioner Shirley Ferris reports, ``In
June of 1997, the month before the Compact took effect, the average
retail price for a gallon of whole milk was $2.72. This June, almost a
year after the Compact took effect, the price for a gallon of whole
milk is only $2.73. And the price of a gallon of 1% milk is even less
expensive now than before the Compact--$.03 less per gallon than last
June.''
Consumer milk prices, as economists had predicted, are lower in the
Compact region than the average for the nation.
Another interesting assertion--that milk consumption has dropped in
the compact region--was made on the Senate floor recently. This is most
odd since national data shows that the rate of milk consumption has
dropped more in the rest of the nation than in the Compact region.
According to the most recent A.C. Neilson Corporation marketing
research data, U.S. gallon sales of fluid milk are down 1.8 percent
compared to one year ago. New England gallon sales of fluid milk,
however, have decreased by only 0.7 percent. National sales of fluid
milk have declined 1.1 percent more than New England sales of fluid
milk.
In another assertion it was said that ``The only real winners have
been the largest industrial dairies of the Upper Northeast.'' First of
all, I am not certain if the use of Upper refers to Maine. Second, I am
not certain what the ``largest industrial dairies'' means since our
plants are so small compared to the Upper Midwest.
And third, under the Compact, and as confirmed by the OMB study, it
is the producers of milk, the farmers, who get the increase in income
under the Compact. If anyone doubts that the dairy farmers in New
England did not get increased pay checks someone should randomly call
them on the phone and see if they really got the checks. I certainly
have not heard complaints that the paychecks were lost in the mails.
My distinguished Colleague also said that the Compact puts
``traditional dairy farms'' outside the region ``at a competitive
disadvantage.'' OMB reports just the opposite. But again, you do not
need an OMB report. Simply pick up the phone and call some dairy
producers who live near the Compact region. They are selling milk into
the region to take advantage of the Compact. If Wisconsin or Minnesota
switched places with New York State, farmers in Wisconsin and Minnesota
would do the same--sell into the Compact region to make more income.
While I do not know for sure, I suspect that dairy producers in
Wisconsin and Minnesota would like more income for all their hard
labor. Vermont dairy farmers and neighboring New York dairy farmers
sure do.
OMB reports there has been ``an increase in milk shipments into New
England equal to 8 percent.'' This is not surprising since neighboring
producers get higher prices for their milk in the compact region.
Except for this benefit for neighboring farmers living just outside
the Compact region, OMB reported that ``New England has little effect
on dairy markets outside its region, or on national prices or trends. .
. . Its shipments outside the region in the form of cheese or milk are
small.''
Opponents of the Compact have constantly repeated that it would be a
``trade barrier'' on sales into New England. I could point to many
statements to this effect on the floor.
I predicted before the Compact was implemented, on the other hand,
that since the law required that anyone could sell into the region and
since the law required that these sellers get the benefit of the
Compact, that there would be increased sales into the region.
I was correct--and the evidence reported by OMB shows that
neighboring farmers get the benefit of the higher Compact price and
thus there has been an increase of sales into the region of 8 percent.
This Compact has thus increased trade. Something that increases trade
is not usually called a trade barrier.
As an interesting footnote OMB reports that the Compact commission
decided to provide additional money for New England WIC programs so
that more eligible infants, children and pregnant women would be able
to participate than would have participated without the Compact. The
OMB report states that the ``Compact could support a small increase in
participation during the demonstration period.'' The Commission has
recently decided to provide additional funding to the school lunch
programs.
I also want to address the surplus production issue. As background,
note that if New England regional milk production decreases less--or
increases more--than the national rate, the farm bill requires that the
Commission reimburse the federal government for the cost of Commodity
Credit Corporation purchases of any ``surplus production'' that might
occur.
This year the Commission will pay a reimbursement as determined by
the Secretary. Very favorable conditions in New England and low
feedgrain prices and very unfavorable weather conditions throughout
much of the rest of the country created this shift even though there
was decrease--2,000 fewer--in cows milked from April to June 1998.
As these relatively very unfavorable weather conditions in the rest
of the country subside I expect that New England's rate of production
will once again grow at a lower rate than the rest of the country--
especially with the drop in cows milked in New England. Also note that
almost all of the CCC purchases were of milk product from other regions
of the country.
To provide some perspective, I also wanted to mention that OMB
reports that in 1996, ``New England accounted for 2.93 percent of the
Nation's milk
[[Page S11554]]
production and 2.9 percent of its milk cows.''
As the OMB report shows if other states had a dairy compact, farmers
in those states could receive a significant increase in income. So why
are some supporting billions' worth of increases in payments to farmers
producing nondairy commodities but are opposed to increases in farm
income to dairy farmers?
The answer is easy. Sir Walter Scott knew many years ago that: ``Oh,
what a tangled web we weave, when first we practice to deceive.''
Corporate opponents of the Compact have tried to argue that this was
a fight between consumers and farmers. The OMB study proves that
consumer prices are lower in New England than the average for the rest
of the country. So that is a false argument.
The fight is actually between large manufacturers of milk products--
large multinational corporations--and farmers. Manufacturers of any
product, not just manufacturers of cheese or ice cream, want to buy
their inputs as cheaply as possible.
How do we know that? As with the answers to many questions all you
have to do is follow the money. Who is buying ads and time to distort
the truth? Who is staffing up to fight the Compact? And who mostly
wants the Compact defeated?
It certainly isn't farmers in areas that border the Compact region.
They take advantage of the Compact's open invitation to trade--and make
more money selling into the Compact region.
It certainly isn't consumers since they get lower prices than the
average for the rest of the nation. It certainly isn't farmers living
in the region since they have gotten a significant boost in farm
income.
To find out the answer one just has to look at lobbying reports that
have to be filed in Washington. Who funded efforts and hired people to
oppose the Compact?
Groups representing the large manufacturers of milk products--that's
who. The International Dairy Food Association for example. Their
members, like any manufacturers, want to buy their inputs at low cost.
One of their members, Kraft, which is owned by a large tobacco
company, wants to pass a bill that will allow them to buy milk at less
than the price set by milk marketing orders through something called
forward contracting. This could greatly increase their profits.
They also oppose the dairy compact. The Compact has producers selling
milk at more than the level set by milk marketing orders. Under the
Dairy Compact, producers receive an over-order premium which means that
they get more money than the minimum set by the order, not less.
So why was there ever a concern about consumer prices increasing in
the Compact region? Prices should have never increased.
The Wall Street Journal and the New York Times discussed this in news
articles about retail store price gouging. GAO raised the issue in 1991
and is looking at it now.
We do know that retail prices for milk are often over double what
farmers get for their milk--nationwide. Think about that.
Lets look at the time period just before the compact took effect--and
pick Vermont as the sample state. As the Wall Street Journal pointed
out, in ``Are Grocers Getting Fat by Overcharging for Milk?,''
beginning in November, 1996, the price that farmers got for their milk
dropped by almost 25 percent--35 cents or so per gallon. Store prices
stayed high which locked in a huge benefit to stores selling to
consumers. 35 cents a gallon is a significant increase in benefits to
retail stores.
Comparing November 1996, to June 1997, the price farmers got for
their milk dropped 35 cents a gallon, and stayed low, but the prices
stores charged for milk stayed about the same.
I have always contended that Dairy Compacts can help reduce this
retail store price inflation by stabilizing the price that farmers get
for milk--thus reducing the need for stores to build in a safety
cushion to protect themselves in case it costs more for them to
purchase milk.
Without a compact, the price farmers get for their milk can vary
significantly. These variations in price are passed through to stores
by co-ops and other handlers. Yet stores prefer not to constantly
change prices for customers so they build in a cushion. But this huge
profit margin can be reduced by Compacts which means that Dairy
Compacts will save consumers money and provide more income to farmers.
Unfortunately, the OMB study is based on very limited information
from USDA. USDA only gave OMB price information from 6 stores in New
England--and only in two cities where it was announced in press
accounts, in advance, that retail prices would go up even though store
and wholesaler costs had dropped 35 cents per gallon.
Even in light of this OMB concluded that after 6 months, retail store
prices in the compact region of New England were 5 cents lower than the
rest of the nation.
New England newspaper accounts of the implementation of the Compact
were very interesting. For example, the July 1, 1997, the Portland
Press Herald, Portland, Maine, points out that ``Cumberland Farms
increased the price of whole milk by four cents but dropped the price
of skim by a penny'' when the Compact was implemented.
Also, they note that ``At Hannaford's Augusta store, Hood milk--a
brand-name product--was selling for $2.63 a gallon, while the Hannaford
store brand was selling for $2.32.''
Also, ``Shaw's increased its price by about 20 cents a gallon in
[parts of] the five other New England states but kept the price the
same here [in Maine].''
The June 26, 1997, Boston Globe and the June 27, Providence Journal
pointed out before the Compact was implemented that one of the chains
signaled a price increase. A spokesman for Shaw's Supermarkets, Bernard
Rogan, is quoted as saying that milk prices will go up next week
The June 30, Boston Globe reported that ``The region's major
supermarkets are raising their milk prices 20 cents a gallon, ignoring
arguments that their profit margins are big enough to absorb a new
price subsidy for New England dairy farmers that takes effect this
week.''
As OMB discovered, after six months this initial signaled increase,
described above, was being subjected to competitive pressures and that
consumer prices in New England were on average lower than the rest of
the nation.
Studies of prices charged in stores in Vermont, for example, show
that the most important factor in the price of milk is the brand and
the store. In cities and towns in Vermont the variation in price among
stores was in the 50 cents to one dollar range. In other words, in the
same town the price of a gallon of milk varied greatly and still does.
These store variations, and variations through the use of store
coupons, dwarf any possible impact of the compact.
Also note that reports have indicated that the dairy case is the most
profitable part of a supermarket. The product profitability of fluid
milk is $16.46 per square foot, whereas regular grocery items return
only $2.32 per square foot. This information is from testimony of
Professor Andrew Novakovic, on April 10, 1991, before the Committee on
Agriculture of the U.S. House of Representatives.
All other food expenditures dwarf how much income that consumers
spend on fluid milk. The savings consumers can achieve through buying
``on sale'' or house-brand items, or through using discount coupons,
far exceed typical changes in the price of fluid milk. Only 3 percent
of the average household's total expenditures on food go for fluid
milk. This information is from an article called ``Food Cost Review,''
1995, from the Economic Research Service of U.S.D.A.
Note also that OMB reported that the Northeast has the Nation's
second highest cost of dairy production ($14.27 per cwt in 1996) and
its milk generated the lowest returns per cwt after expenses. OMB found
that a smaller proportion of New England farms are competitive than in
other regions. Net average returns per cow in Vermont are $350 per year
and in Wisconsin are $460 year. OMB determined that the Compact
generated about $70 more in annual income per cow.
So why all the fuss about the compact and who is generating it?
For one, Kraft, the international milk manufacturing giant, opposes
the
[[Page S11555]]
compact. Kraft's annual U.S. sales exceed $16 billion. They are owned
by Phillip Morris, the tobacco giant.
Perhaps the writer Ben Johnson said it best: ``Whilst that for which
all virtue now is sold, And almost every vice--almighty gold.''
IDFA, which receives funding from Kraft which is owned by big
tobacco, went on a spending spree. One big staff acquisition was from
Public Voice for Food and Health Policy. The very person who led Public
Voice's press attack on the Compact was negotiating for a job with the
milk manufacturers who opposed the Compact.
Lobbying registration forms show the whole sad story.
In June 1996, the Senior Vice President for Programs at Public Voice
publicly defended his organization from charges that its analysis was
influenced by corporate contributions.
A Lobby Registration form filed in July 1996 shows that he worked for
William Wasserman of M & R Strategic as a ``consultant'' for this
lobbying arm of IDFA.
This is the major reason I returned the golden carrot award back to
Public Voice. It is one thing to have honest disagreements about
policy. It is another to be working on getting a job with opponents of
the Compact at the same time you are leading the charge for Public
Voice against the Compact. The Lobbying Reports tell the story.
There is an unseemly web of money and promises between the dairy
processors and Public Voice.
For example, we know that during a critical time period between
January 1995 and June 1996, Public Voice accepted $41,000 from the
International Dairy Foods Association (IDFA).
We do not know how much IDFA has contributed to Public Voice after
June 1996 or how much any of IDFA's corporate members and officers of
those corporations have individually contributed to Public Voice. We do
not know how much big tobacco gives to Public Voice. I have always
expected that it is a huge number considering the large salaries IDFA
pays to its top officers.
For a six-month period in 1996, IDFA paid at least $30,000 to M & R
Strategic Services for its lobbying efforts.
These are all public facts documented by lobbying disclosure forms or
derived directly from quotes from Public Voice officials.
This overwhelming and unseemly evidence compelled me to conclude
that, for Public Voice, when it comes to the Dairy Compact,
contributions come first, and analysis comes second. The New York Times
and other editorial pages have relied upon the numbers provided by
Public Voice to substantiate their editorials against the Compact, but
we now know those numbers were cooked, and flat-out wrong.
I challenged Public Voice to release the names of any dairy-related
or tobacco-related contributors and how much they contributed during
the last three years. They have not done so yet. I would be pleased
just to know if the amount is $100,000 or $500,000, total, over the
last three years.
IDFA also made other major acquisitions. They hired the Director of
Consumer Affairs at USDA, William Wasserman, who set up a subsidiary
called the ``Campaign for Fair Milk Prices'' through M & R Associates.
Money can solve a lot of problems. For example, his Lobby Report
filed on August 15, 1996, shows his client as IDFA and shows him
specifically working on the ``Northeast Dairy Compact.'' His Lobbying
Registration form filed on February 13, 1996, shows he worked for IDFA
on dairy price supports and marketing orders.
A key USDA official who represented USDA at dairy meetings on Capitol
Hill was also hired by IDFA. Mr. Charles Shaw is now listed as Senior
Economist and Director of IDFA in the book 1997 Washington
Representatives.
Listed as ``counsel or consultants'' for IDFA are--you guessed it--M
& R Strategic Services lobbyists Allen Rosenfeld and William Wasserman
in 1997 Washington Representatives.
I will explain the importance of this in a minute. Before I begin I
want to point out that the battle over the Compact is really a battle
between well-off dairy manufacturers and struggling dairy farmers.
These huge dairy manufacturers cannot win over the editorial boards
of The New York Times or The Washington Post on that basis.
But if a group like Public Voice carries their public relations
message, casting this as a consumer issue, they have a foot in the
door.
Public Voice has focused on the price increases which took place just
as the Compact was implemented. I mentioned these price signaling
newspaper articles earlier.
But Public Voice has ignored the conclusion that consumer prices are
lower in New England than the average for the nation. I wonder why.
I wonder how much money they have received from all the major
manufacturers of milk and tobacco companies throughout the country over
the last three years? I wonder how much money they have received from
IDFA and other groups that represent manufacturers over the last three
years? I wonder how many others they will hire to influence public
opinion in a way that supports the efforts of huge milk manufacturers
against the interest of dairy farmers in New England?
I want to make one final point. The New York Times has reported on
how important the Compact is for the environment. In an article
entitled ``Environmentalists Supporting Higher Milk Price for Farmers''
it was explained that keeping farmers on the land maintains the beauty
of New England.
A lack of farm income resulting from low dairy prices is cited as the
major reason dairy farmers leave farming in New England. Production
costs in New England are much higher than in other areas of the nation
while the value of the land for nonfarm purposes is often greater than
its value as farmland.
In many cases I am advised that this is very different as compared to
vast areas of the Midwest and Upper Midwest where land is worth very
little except for its value as farmland. As the Vermont Economy
Newsletter reported in July 1994:
In the all important dairy industry, the decrease in farm
income has come from a continuation of the long term trends
the industry has been facing. Should these trends persist,
and there is every expectation they will, Vermont will
continue to see dairy farms disappearing from its landscape
during the 1990s.
One of the consequences of the exit of dairy farmers in New England
is that land is released from agriculture. Given the close proximity to
population centers and recreational areas in New England, good land is
in high demand, and as a result there is often a strong incentive to
develop the land.
What are the consequences of land being converted from farm to non-
farm uses?
One consequence is that the rural heritage and aesthetic qualities of
the working landscape are lost forever. The impact of this loss would
be devastating to Vermont and to much of New England. The tourists from
some of America's largest urban centers are drawn to rural New England
because of its beauty, its farms and valleys, and picturesque roads.
Strip malls and condominiums do not have the same appeal to
vacationers.
The Vermont Partnership for Economic Progress, noted in its 1993
report, A Plan for a Decade of Progress: Actions for Vermont's Economy,
``There are many issues that will influence the [tourism] industry's
future in Vermont . . . [including] our state's ability to preserve its
landscape.'' The report went on to list among its primary goals:
1. Maintain the existing amount of land in agriculture and
related uses;
2. Preserve the family farm as part of our economic base
and as an integral factor in Vermont's quality of life from
``A Plan for a Decade of Progress.''
The priority of these goals show that preserving farmland and a
viable agriculture industry are important for the overall economic
health of the region from Maine, to rural parts of Connecticut, Rhode
Island, and Massachusetts, to Vermont and New Hampshire.
Other consequences of farm losses are equally destructive. The
American Farmland Trust has completed cost of community services
studies in four New England towns, one in Connecticut and three in
Massachusetts. The information is from ``Does Farmland Protection
Pay?''
These studies show the cost of providing community services for
farmland and developed land. It is true that developed land brings in
more tax revenues than farmland, especially when farmland is assessed
at its agricultural value, as it is in most New England
[[Page S11556]]
states. Developed land, however, requires far more in the way of
services than the tax revenues it returns to the treasuries of
municipalities.
For example, residential land in these four New England towns
required $1.11 in services for every one dollar in tax revenue
generated while the farmland required only $0.34 of services for every
one dollar of revenue it generated. This demonstrates the major impact
that losing dairy farmland has on rural New England. This information
is from ``Does Farmland Protection Pay?''
National Geographic recently detailed the risk of economic death by
strip malling otherwise tourist-drawing farmland. New England should be
allowed to try to reverse this trend, especially in ways that help
neighboring states such as under the Compact.
The American Farmland Trust Study pointed out that agricultural land
actually enhanced the value of surrounding lands in addition to
sustaining important economic uses.
Farming is a cost effective, private way to protect open
space and the quality of life. It also supports a profusion
of other interests, including: hunting, fishing, recreation,
tourism, historic preservation, floodplain and wetland
protection. ``Does Farmland Protection Pay?''
Keeping land in agriculture and protecting it from development is
vitally important for all of New England, which is one reason all six
New England states have funded or authorized purchase of agricultural
conservation easement programs to help protect farmland permanently.
Other economic uses, from condominiums and second homes for retired
or professional people from New York, Boston, or Philadelphia to
shopping malls to serve them, are waiting in the wings. The pressure to
develop in New England is voracious.
A 1993 report from the American Farmland Trust called ``Farming on
the Edge'' showed that only 14 of the more than 67 counties in New
England, were not significantly influenced by urban areas.
In fact, eight New England counties were considered to be farming
areas in the greatest danger of being lost to development because of
their high productivity and close proximity to urban areas. The
Champlain and Hudson River Valleys were considered to be among the top
12 threatened agricultural areas in the entire country according to
this ``Farming on the Edge'' study.
Dairy farming is New England's number one agricultural industry, and
a lack of farm income is a major cause for farmers leaving dairying.
This discussion underscores the compelling need for the Northeast
Interstate Dairy Compact because towns will not only lose their rural
character with the loss of farms, but they will suffer economic
consequences as well. New England suffer the economic losses of the
economic activity from farming, but will spend more in services than
they gain in revenue as good farmland gets developed.
I need to address one more dairy issue, milk marketing order reform.
This bill does give USDA a few more months to study this critical
issue. I have been fighting for a fair revision of the milk marketing
orders as have other Colleagues. Although dairy farmers across the
country have told the Agriculture Department that they prefer Option 1-
A, the Department continues to support Option 1-B.
It has been made clear that the U.S. Department of Agriculture
prefers Option 1-B for fluid milk pricing, even though it has been
demonstrated that this system would be disastrous for dairy farmers
across the country. Economists for AgriMark estimate that under Option
1-B, dairy farmers' income would drop by $365 million dollars next
year--that is a loss of $1 million each and every day of the year. I am
told by economists at AgriMark that Option 1-B reduces farm income in
almost every area of the country.
I am also told that every area of the country, including the Upper
Midwest, will have higher farm income under Option 1-A as compared to
Option 1-B.
At the close of the comment period for milk pricing reform, I was
joined by 60 Senators in a letter to USDA supporting Option 1-A. Option
1-A is the only option which is both fair and equitable to farmers
while promising to continue providing consumers with reasonably priced
fresh, wholesome milk.
Mr. President, this year Vermont farmers took a one-two punch from
Mother Nature. The unprecedented ice storm this winter that knocked out
power across the state, forcing farmers to cull their herds, dump milk
and scramble for feed. This summer's flooding hit many of these same
farmers just as their crops were starting to produce. Their fields have
been saturated with water ever since leaving them without feed going
into the winter. Ten out of the fourteen counties in Vermont have been
declared National Disaster Areas by the President this year.
Because the margins are already so close for many farmers, helping
these farmers recover from their feed losses could mean the difference
between staying in business or selling out. The Livestock Feed
Assistance Program will help Vermont farmers get through the winter and
not be overwhelmed by recovery costs. I visited these farms after the
ice storm and went back again to some of the same areas after the
flooding.
What I heard at every farm I visited was very simple: farmers need
enough assistance to get them through this season. They do not expect a
lot of assistance, but they do expect it to be fast and they expect it
to be fair.
Unfortunately, disaster assistance programs have not always worked
this way. Too often, the criteria and program thresholds developed by
the national office do not catch the small, family dairy farms we have
in the Northeast. The disasters that hit Vermont this year caused
damage much like what you see after a tornado. One farm may have lost
half his crop while his neighbor may not have been touched. But the way
the disaster programs work now, if the county as a whole did not
sustain at least 40 percent damage, none of the farmers hit by the
disaster would be eligible for assistance.
In addition, these programs often require a farmer to sustain at
least 40 or 50 percent damage on his farm. This requirement has
prevented many farmers who are barely making it anyway from getting
assistance. After the ice storm, many Vermont farmers were tinkering at
the edge of losing their farms.
I know that Secretary Glickman shares my commitment to preserving the
family farm and I look forward to working with him to make sure these
disaster programs are flexible enough to help our small, family farms.
Let me quote a letter from Edie Connellee and Bill Cartright of
Waitsfield, Vermont, ``I hope we all purposefully remember to use this
experience as a way to better be a community and especially remember
that small acts of kindness, even just a phone call, make a huge
difference when someone is hurting in any way.'' I hope this is the
approach the Agriculture Department will take when implementing these
disaster programs.
Finally, Mr. President, let me take a moment to talk about the
funding levels for the conservation programs in this year's Agriculture
Appropriations bill. When we passed the 1996 Farm Bill one of
cornerstones of that package was the mandatory funding for the
conservation programs. We set aside $200 million a year for the
Environmental Quality Incentives Program. Unfortunately, it was all too
tempting for the appropriators to cap that program this year at $175
million and use the savings elsewhere. In a year where we have seen
state legislation regulating agriculture waste on farms and new
regulations from the Environmental Protection Agency, this program is
all the more critical to making sure farmers can comply with these
requirements.
Having worked with dairy farmers across Vermont, but especially
around Lake Champlain and Lake Memphremagog, I know how committed they
are to protecting our watersheds from farm run-off. Vermont farmers
lead the country in developing innovative techniques to control
agriculture waste. But they cannot do it alone. The EQIP cost-share
payments help them do the right thing without putting them in a
financial bind. Now is not the time to be slowing down such a
successful program.
Mr. SHELBY. Mr. President, I rise today to add my voice to the debate
regarding the FY 1999 Agriculture Appropriations bill. While I know
this bill
[[Page S11557]]
contains numerous important items including funding for agricultural
research, credit programs, conservation programs, and food safety
initiatives, I want to specifically mention my concern regarding the
portions of this legislation which provide emergency relief to
America's farmers.
The last few years have been very difficult for America's farmers. I
know this very well because of the numerous difficulties suffered by
farmers in my state of Alabama. Last year, North Alabama was hit with
an especially cold and rainy spring which greatly reduced the yields of
cotton farmers. Peanut farmers in Southeastern Alabama were hit with a
toxic mold blight which cost them greatly when they tried to market
their peanuts. Before the close of the Summer of 1997, Hurricane Danny
dumped inches of rain on and brought devastating winds to Southwestern
Alabama. This storm alone caused millions of dollars in crop losses and
farm related damages.
Mr. President, unfortunately I cannot say that weather conditions
improved much in Alabama this year. Early spring flooding was followed
by devastating heat and drought. Alabama's cotton producers, corn
producers, cattle producers and peanut producers were forced to battle
extreme conditions as they tried to keep crops and livestock alive. If
this was not enough, Hurricane Georges swept through the Gulf Coast
this past week and caused millions of dollars more in crop losses.
To add insult to these weather-induced injuries, the troubled
economic conditions in Asia and throughout other parts of the world
have decreased the number of available markets for our farmers. The
loss of these markets has in turn led to lower prices. Where our
farmers have actually made a crop, they are finding that the market has
bottomed out and there is very little profit available to them.
Mr. President, a series of natural disasters coupled with economic
collapse have hit Alabama's farmers extremely hard. They need help.
I am well aware of the fact that many other regions have suffered
significant farm-related losses. As I have pointed out, however they
have not been affected exclusively. I want the devastation that
Alabama's farmers have suffered to be recognized on the record.
Mr. President, this bill provides $2.1 billion in disaster assistance
funding and grants the Secretary of Agriculture broad discretion to
implement disaster assistance awards. I urge the Secretary to make a
full and complete review of all the factors affecting farmers in every
region of the country. I want it noted that I believe that it is
fundamentally important that the Secretary be aware of the extreme
conditions that have befallen farmers in my state.
When Secretary Glickman makes the awards for farm disasters and
economic losses, I want him to make them based on a fair appraisal of
all farm losses throughout the country. I believe that all my
colleagues will agree. Our farmers deserve no less.
Mr. ENZI. Mr. President, I rise to speak on the Agriculture
appropriations conference report. I commend Senator Cochran for his
hard work in putting together this bill to fund our Nation's
agricultural and nutrition programs and to provide emergency assistance
to America's farmers in this difficult year.
I am disappointed, however, that some provisions that would have
benefited our Nation's family ranchers who are also suffering from low
commodity prices were dropped from the final conference report.
Although these measures were unsuccessful this year, I am confident
that they will come before the Senate again next year and I intend to
work hard for their passage.
In particular, I am disappointed that the amendment to require the
labeling of imported meat was dropped from the final package. I
strongly believe that we need to require foreign meat products to be
clearly labeled as such. I support free trade, but in order to have
free trade you need to have full disclosure. American consumers have a
right to know if the meat they are buying has been produced in our
Nation. American stockgrowers have a strong record of producing top
quality products, and the American consumer should have the ability to
identify these top quality products in the grocery store.
I am also disappointed that the amendment to establish a price
reporting pilot project was dropped. Many of my constituents who are
family ranchers are very concerned about the current state of the
packing industry, notably the increase in packer concentration. I share
their concerns. Although I generally do not favor government mandates
on any industry, I believe that the price reporting amendment would
have provided us with more transparency to determine what effect the
recent trend towards consolidation in the packing industry has had on
cattle prices.
In addition, I think we need to add fairness to our meat inspection
programs by allowing State-inspected meat to move across State lines.
We already allow Canadian and Mexican meat products to be sold in our
Nation based on a promise that their standards are the same as ours.
There is no reason for our government to trust foreign inspectors and
not State inspectors. We need to level the playing field for meat
inspections to help out our small packers. Allowing small packers to
ship their products across State lines is not only fair, it would also
increase competition in the packing industry. Unfortunately this
important issue was not considered this year at all.
So Mr. President, while I will not object to this Agriculture
appropriations bill because I recognize how important it is to
America's farmers, I am disappointed that it did not do more to address
the financial problems facing our Nation's ranching industry. Family
ranchers are struggling with the lowest beef prices in over 20 years.
Their problems are not now and never have been addressed by huge
government spending programs. But Congress should take action to
provide free and fair competition in the livestock industry. The three
measures I have just outlined would do just that, and I will work hard
to make sure that they receive the careful consideration of Congress
next year.
water quality research
Mr. DORGAN. Mr. President, I would like to ask a few questions of my
friend from Arkansas, Senator Bumpers, regarding the water quality
component of the Cooperative State Research, Education and Extension
Service (CSREES) Special Grants Program. In particular, I note that
although the Senate agriculture appropriations bill for fiscal year
1999 included $436,000 for water quality grant in North Dakota, the
conference report now before us has moved those funds into a separate
water quality item. Could the Senator explain the reason for this
action?
Mr. BUMPERS. Over the past several years, the Congress has funded
water quality grants through three separate items with in the CSREES
Special Grants Program, including the two the Senator from North Dakota
mentions. The fiscal year 1999 appropriations bill which Senator
Cochran and I reported to the Senate earlier this year included a total
of $2,897,000 for these activities. This amount includes funds at last
year's level for the North Dakota program and the balance directed to
the undesignated water quality item. The House included the third water
quality grant and provided a total of $3,389,000 for all water quality
special grants.
The conferees recognized the need to strengthen our cooperative
research activities for water quality, in a manner similar to the
treatment of food safety and other priority research areas, and decided
to consolidate and increase the funding level for water quality through
the CSREES Special Grants Program. Accordingly, all funding for water
quality research was moved to a single item and in recognition of the
excellent record of the North Dakota program, language was included in
the Statement of Managers explaining that the North Dakota program
should continue to secure funding through that item.
Mr. DORGAN. I thank the Senator for that explanation. Is the Senator
from Arkansas aware of the work underway in North Dakota regarding
water quality?
Mr. BUMPERS. Yes, I am. I understand the North Dakota program,
developed through the Red River Water Management Consortium (RRWMC) is
doing important work to help understand the occurrence, transport, and
[[Page S11558]]
fate of agricultural chemicals in the Northern Great Plains region. I
believe it is also noteworthy that the RRWMC is a basin-wide water
management group, comprised of a number of government and industry
stakeholders throughout the water basin and has included partners from
municipalities, agricultural industries, county governments, resource
conservation and development organizations, and public utilities.
Cooperation and coordination of all these groups is vital and the
network established in North Dakota should serve as an excellent model
for other parts of the United States where water contamination,
especially from agricultural runoff, posses a real or potential threat
to the environment and public health.
Mr. DORGAN. I appreciate the Senator's understanding of the
importance of this research and his familiarity with the RRWMC's
activities. Is it the understanding of the Senator from Arkansas that
the goals of the North Dakota project are consistent with the overall
water quality research objectives of CSREES?
Mr. BUMPERS. Yes, I believe they are. The CSREES water quality
programs are intended to help investigate the impacts of non-point
source pollution and recognize the public's concern about the possible
risks to the environment resulting from the use of agricultural
chemicals. Therefore, the purpose of the RRWMC's activities are clearly
consistent with the goals of the agency's water quality research
mission. Further, I understand that the RRWMC has been able to leverage
non-federal funds on a ratio of about two to one. Given current budget
constraints, this accomplishment is to be commended especially in
recognition of the fact that the CSREES water quality grant has
received nearly $48 million in appropriations since 1990 and has only
been able to leverage approximately $1 million per year during that
time. The record of RRWMC in leveraging non-federal funds is,
therefore, all the more impressive and worthy of these federal dollars.
In view of the important ongoing work of the RRWMC on the important
issues of water quality protection, their cooperative relationships
with a wide variety of stakeholders, and their ability to leverage non-
federal resources, I believe the conferees would agree that RRWMC
should be able to secure funding of, at least, last year's level in the
coming fiscal year.
Mr. DORGAN. I appreciate the Senator's understanding of the fine work
of the RRWMC and his words of encouragement for their activities under
CSREES in the coming fiscal year.
Mr. KEMPTHORNE. Mr. President, I rise today to delcare my support for
the fiscal year 1999 Agriculture appropriations bill.
American agriculture is in a state of emergency. No one who has read
a commodity report in the last few months would disagree. Wheat and
barley prices are at record lows as are prices for other important
Idaho agricultural products. In August, I talked to growers all over
Idaho who are on the verge of bankruptcy, they tell me they are in
trouble.
This appropriations bill will help farmers get back on their feet.
The bill provides funding for a wide range of USDA programs, including
agricultural research, export initiatives, foreign market development,
nutrition programs and other department operations. Much-needed short
term relief is also provided--$1.5 billion in one-time payments to
assist producers who have been hit by crop losses in 1998, an
additional $675 million to provide assistance to farmers who have
suffered multi-year crop losses, $175 million for livestock feed
assistance in a cost-share program available to ranchers who lost their
1998 feed supplies to disaster, and $1.65 billion for increased AMTA
(Agriculture Market Transition Act) payments.
In a time when its farmers are experiencing severe economic hardship,
Idaho is one of the big winners in the process. Many important Idaho
research projects were included in the bill, including over $1.2
million for potato variety development, $329,000 for peas and lentils,
$423,000 for grass seed and $550,000 for small fruit research, among
others.
The agriculture appropriations bill will also help promote American
agriculture overseas. The Market Access Program continues to be a vital
and important part of U.S. trade policy aimed at maintaining and
expanding U.S. agricultural exports, countering subsidized foreign
competition, strengthening farm income and protecting American jobs.
MAP has been a tremendous success by any measure. Since the program was
established, U.S. agricultural exports have doubled. In fiscal year
1997, U.S. agricultural exports amounted to $57.3 billion, resulting in
a positive agricultural trade surplus of approximately $22 billion and
contributing billions of dollars more in increased economic activity
and additional tax revenues. This appropriations bill continues funding
for MAP.
Also included in the bill is funding for the Agriculture Education
Competitive Grants Program. This program funds grants for school-based
agricultural education at the high school and junior college levels of
instruction. Competitive grants targeted to school-based agricultural
education will be used to enhance curricula, increase teacher
competencies, promote the incorporation of agriscience and agribusiness
education into other subject matter, like science and mathematics, and
facilitate joint initiatives between secondary schools, 2-year
postsecondary schools, and 4-year universities. This will help our
young people be successful in an ever-increasing competitive
agriculture market.
Is this is a perfect bill? No, but it is one that is fiscally
responsible and it does not return to the failed policies of the past.
We must allow American farmers to compete and give them the tools they
need to do so. This bill is another step in that direction.
Mr. President, I will vote yes for the appropriations bill and urge
my colleagues to do the same.
Ms. MIKULSKI. Mr. President, I rise today in opposition to the
Agriculture Appropriations Conference Report. I oppose this bill for
three reasons. First and foremost, it does not meet the needs of my
state of Maryland. Second, it does not sufficiently fund agriculture
programs in order to help all American farmers. Third, the method by
which the funding is spent is wholly inadequate to address the farm
crisis.
In my state of Maryland, we have been plagued by drought for the
second consecutive year. Our farmers are losing crops and they are
losing money. They are struggling just to survive. Couple the drought
with the record low prices, high costs and a glut in the market and
that spells disaster for our farmers. Official data reports that
drought has destroyed between 30 percent and 65 percent of the crops in
nine Southern Maryland and lower Eastern Shore counties. Loss of
soybean, tobacco, wheat and corn crops is making this a very tough
season for Maryland farmers. Let me assure you I will not just stand by
and let this happen to my farmers.
I am already fighting with the rest of the Maryland delegation team
to provide emergency loans from the Department of Agriculture to our
farmers and to officially designate them disaster areas because of the
drought. But this money does not really take care of the problem. This
is not some heroic assistance program for our farmers. It is just a
loan. This is money that must be paid back. It does not provide any
real long term assistance for our farming community. That is precisely
the job of Congress today.
Our farmers need help so they can continue to farm. They need help
now, this is true, and they need these loans. But eventually, loans
must be paid back with money earned. And this money will not and cannot
be earned without our help. We should be uplifting our farmers and
helping them to help themselves. Not just continuing their burden of
debt. We need help, and this Agriculture Appropriations bill neither
addresses Maryland's agricultural problems nor the agricultural
problems scourging the rest of our country.
Farmers in my state of Maryland came to me with their priorities for
this bill, neither of which are adequately addressed. First, this bill
does not provide adequate funding for operating loans so farmers can
buy the equipment and supplies necessary to plan for the next season.
Without these loans, many of our farmers will not have the funds they
need to plant. This then becomes a vicious cycle. Without the funds to
plant, the farmers cannot make money for the next year, and pay
[[Page S11559]]
back or even be eligible for loan assistance.
The second, and most important reason this bill does not satisfy the
needs of my state is because this bill does not uncap the market loans.
My farmers have told me that their number one priority is to take the
artificial caps off the market loans. In fact, my farmers have told me
they desperately needed the caps off the market loans. Last week, a new
U.S. Department of Agriculture report forecasted a net farm income for
1998 at $42 billion, down $7.9 billion from last year. This amounts to
nearly a 16 percent drop in farm income. The report also said that farm
debt is anticipated to reach $172 billion by the end of 1998.
What do these forecasts tell us? This says that any federal response
that stops short of recognizing the fundamental problem of depressed
prices will absolutely not address the problem. We cannot pass a band-
aid measure and expect it to stick in the long term. This is just not
possible. The only way to start to correct the problem is to start at
the root. And this means acknowledging and dealing with the depressed
crop prices. Uncapping the market loans is crucial to confronting this
problem.
I will not vote for this bill today because it does not provide
enough funding to deal with these problems. The Democratic farm relief
package offered by Senator Harkin in conference was sadly defeated
along partisan lines. This package would have provided the necessary
$7.3 billion in funds to cover both disaster and economic losses,
including a provision to increase marketing loan rates. The Republican
plan--less than $4 billion--adopted by the committee came as an extreme
disappointment. All states suffer under the Republican plan. In my
state alone, Maryland would receive only $7 million in assistance
verses $21 million under the Democratic plan.
The magnitude of losses suffered simply does not merit this meager
and shallow attempt to pass this bill. All one need do is look at the
facts. The level of economic assistance contained in the bill is $1.65
billion. The net farm income projected is expected to fall this year
alone by $8 billion to $10 billion. Clearly, this bill does not
increase the amount of relief to a level that will help farmers weather
the economic crisis.
Finally, I will not support this bill because the method by which the
funding is spent is wholly inadequate to address the farm crisis. The
assistance is not directed to the person who suffered the loss.
Increasing the Republican plan would simply send money to landlords who
have already been paid their cash rent for the year. These Agricultural
Market Transition Act (AMTA) payments benefit the absentee landowner,
rather than the farmers who need the assistance. One recent study
showed that 73 percent of the nation's farmers feel the current farm
bill does not provide adequate income during low-price periods. This
means the current system is failing us. Rather than pump more money
into a failed system, it is time we overhaul the method.
Let me say that I absolutely agree with Senators Daschle and Harkin
that this bill does not sufficiently address the farm crisis. More
needs to be done. I am sorry not to vote for this appropriations bill.
Mr. President, let me be clear--I wanted to vote for an agriculture
appropriations bill today. I think we all did. In fact, I want to see
all thirteen of these appropriations bills pass, as they rightly
should. But I will not support a bill that short-changes our farmers. I
did not vote for the Freedom to Farm bill for this very reason, I will
not vote for the agriculture appropriations bill today.
Mr. LUGAR. Mr. President, I will vote for the 1999 agriculture
appropriations conference report. Unfortunately, several unwise
provisions have been added since this bill passed the Senate. The
cumulative weight of these mistaken policies does not outweigh the many
good things in the bill, but is still reason for substantial concern.
The bill is commendable in many ways. The conferees wisely rejected
efforts to increase price support loan rates. Instead, they expanded
disaster assistance from $500 million in the Senate bill to $2.35
billion. This aid will benefit farmers with 1998 losses as well as
producers in some regions who have suffered several consecutive years
of loss because of weather or disease.
The bill also provides $1.65 billion in market loss payments to
farmers. These payments provide income support without doing violence
to the basic structure of the 1996 FAIR Act. In preserving the FAIR
Act's ``freedom to farm,'' the market loss payments are clearly
superior to the higher loan rates preferred by our Democratic
colleagues. Raising loan rates, according to the non-partisan Food and
Agricultural Policy Research Institute, would cause more production,
higher surplus stocks and lower prices and incomes in future years.
Even though higher loan rates might raise prices in the short term,
they would have deleterious effects that would plague U.S. agriculture
for years to come.
Other parts of the bill deserve praise. The conferees adopted a
biodiesel provision in the Senate bill which I sponsored along with
other Senators. Encouraging the use of biodiesel will advance, in a
small way, the neglected cause of energy self-sufficiency and
renewability. The conference report will also facilitate an increase in
overseas food assistance through Food for Progress.
I also commend the conferees for adopting a regulatory standstill
that will restore legal certainty to swap transactions. This standstill
will allow the Commodity Futures Trading Commission to take necessary
actions in a financial emergency, as well enforcement actions. It
leaves regulators free to act prudently. However, the provision will
ensure that the President's Working Group on Financial Markets has an
opportunity to advance its current study of the appropriate regulation
of over-the-counter derivatives, a study I asked the working group to
begin back in July. The turbulence in financial markets during recent
weeks should finally convince everyone of the need to expedite this
study. The standstill also allows crucial decisions about OTC
derivatives to be made, as they should be, in Congress.
Restoring legal certainty to swaps will also help to calm markets: In
a volatile period, the last thing markets need to deal with is the
threat of valid contracts becoming unenforceable. I commend Senator
Cochran for his sponsorship of this provision, which Congressman Bob
Smith and I proposed.
Unfortunately, the conference report has a number of undesirable
provisions. Most regrettably, this conference report adopts a House
provision to deny funding for the Initiative for Future Agriculture and
Food Systems. It is difficult to understand why this initiative, which
passed both Houses of Congress by overwhelming margins earlier this
year, was neglected when many less urgent--and more parochial--research
items were funded. The initiative's competitive grants and carefully
chosen priorities represent the direction in which federal research
funding should go. To deny funding for research that will help us feed
future generations is unconscionable.
The conference report has other flaws. It adopts new loan programs
for honey and mohair which were not contained in either bill. Programs
for these commodities were abolished only a few years ago. The
conference report also adopts language from the House bill which will
delay the reform of milk marketing orders by six months. Such a delay
is doubly unfortunate since the Secretary of Agriculture is already
proposing only half-measures to reform this antiquated and byzantine
system.
The report's statement of managers contains statements about the
sugar program which, though not legally binding, would negate a
provision of the FAIR Act if they were taken seriously by the
Department of Agriculture. The managers state, in effect, that the one-
cent-per-pound penalty assessed on forfeited sugar should not be
considered an effective reduction in the support price of sugar,
especially for purposes of determining the tariff rate quota for
imports. But that was, of course, precisely the intent and effect of
this provision. The logical result of a one-cent penalty is to reduce
by that amount the price at which a sugar processor would be
indifferent to forfeiture or a market sale. It is instructive to read
comments on the floor of the House, during debate on the FAIR Act by a
strong advocate of the sugar program, former Congressman E de la Garza.
The former chairman of the
[[Page S11560]]
House Agriculture Committee said that the FAIR Act's sugar section
``effectively reduces the loan rate by 1 cent and ensures an increase
in foreign imports.''
The conference report also reverses one recent reform of the
catastrophic crop insurance program. Not only does the conference
report allow multi-million dollar operations to continue buying
catastrophic coverage for as little as $60, rather than a small
percentage of crop value. It also extends this provision into the
future, something that is simply not appropriate in a one-year
appropriation bill. Finally, funding was cut for environmental
assistance that mitigates non-point source pollution--the Environmental
Quality Incentives Program. Like the Initiative for Future Agriculture
and Food Systems, EQIP is funded through mandatory accounts that are
under the jurisdiction of authorizing, not appropriating, committees.
Even after listing disappointing actions, I have chosen to highlight
the positive achievements in this bill and other recent bills and
enacted statutes in which Republicans have shown their ability to
assist farmers in troubled times.
Under the Republican FAIR Act, loan deficiency payments and marketing
loan gains for 1998 crops will total $4.2 billion. Most of this amount
is not counted in the most recent Administration estimates of net farm
income. This summer, Republicans led the way in passing a bill to
augment farm cash flow by speeding up 1999 ``freedom to farm''
payments. Now, Republicans are asking the President to join in a $4
billion cash infusion into the farm economy--$2.35 billion in disaster
assistance and $1.65 billion in market loss payments.
These Republican initiatives will lift 1998 net farm income to near
the 1997 level and above the average level of the 1990s. Without a
doubt, many producers are under severe stress. Not every operation will
survive. Like most other commodity prices, farm prices are depressed
because of the shock waves sweeping through the world economy. In such
trying times, Republicans have responded with practical assistance
rather than ideological demagoguery.
We should send this conference report to the President, and he should
sign it promptly.
Ms. LANDRIEU. Mr. President, after two and a half months of debate on
the economic and disaster crisis facing rural America and thousands of
farm families, we are voting on a measure that provides $4.2 billion in
economic relief to our farmers.
During the course of this debate, we have heard from our Democratic
Leader, who I want to commend for his leadership on this issue, our
President, and many others who believe that much more assistance is
needed to adequately address the serious situation facing rural
America. I fully agree that the relief provided in this legislation is
far less than meaningful for Louisiana and other Southern states who
are suffering one of the worst droughts in 100 years. Already, we have
thousands of farmers whose crops and pasture land have been burnt up by
the heat and an estimated $450 million in crop losses in Louisiana
alone. These same farmers are also facing some of the worst commodity
prices in over a decade. Not only are Louisiana farmers hit with low
prices, they also have no crop. Therefore, I have argued and strongly
supported additional funding to address this crisis. This funding is
justified and should be provided.
However, Mr. President, we also have a conference report before us, a
bill that provides a total of $55.7 billion in essential funding for
some very important agriculture, rural development, and nutrition
programs. Additionally, included in this measure is over $25 million
for much needed research and education projects in Louisiana.
Mr. President, the senior Senator from Louisiana and I have both
advocated for additional funding for our farmers. However, the bottom
line is that many members in the House and Senate have differing views
about how this assistance should be delivered. Furthermore, many
members have strong philosophical reasons for opposing even the $4.2
billion provided in this relief package. Therefore, with only a few
days remaining, before the Congress adjourns and the $450 million in
associated crop damages facing Louisiana, the $4.2 billion provided in
this legislation, is the best option on the table for providing
immediate assistance to my state. Therefore, I am rising in support of
this measure, which as stated by the Chairman and Senator Bumpers has
been one of the most difficult conference reports ever considered by
the Agriculture Appropriations Subcommittee.
Mr. President, before I conclude my remarks I want to make two
additional points. While I recognize that this is not the appropriate
bill to reform crop insurance, I want to make a prediction that if this
issue along with revisions to the current loan rate structure are not
addressed early next year, we will be back on the Senate floor debating
an even greater economic farm crisis. Then, we will not only be hearing
from farmers, but bankers, retail store owners and state chambers of
commerce.
I know that many of my colleagues strongly support crop insurance
reform. However, many Senators are opposed to revisiting any of the
loan rate provisions included in the 1996 Farm Bill. From my
discussions with several reputable farmers in Louisiana this issue
should be reconsidered.
Mr. President, with the many complicated issues facing farmers, only
through a bipartisan effort can we begin to address these matters.
Therefore, I hope that the Democratic and Republican leaders in the
House and Senate will take the additional steps needed early next year
to address and resolve this pending economic agriculture crisis.
I thank the Chairman for yielding his time and I yield the floor.
Mr. KERREY. Mr. President, during my October 5, 1998, floor statement
on the 1999 Agriculture Appropriations Conference Report, I referred to
and inserted for the record a chart showing a state-by-state breakdown
of the Democratic and Republican ag relief proposals. I wish to clarify
that the chart was not generated by the Congressional Budget Office,
but rather an estimate prepared by the Senate Agriculture Committee
staff based on the aggregate CBO estimate of the cost to remove the
caps placed on marketing loans in the 1996 Farm Bill.
Mr. President, I appreciate this opportunity to make this
clarification.
Mr. BRYAN. Mr. President, I rise today to briefly discuss two
provisions included in the conference report accompanying H.R. 4101,
the Agriculture Appropriations Bill.
First, I want to express my gratitude to the House and Senate
conferees for retaining a provision in the conference report that was
originally passed here in the Senate relating to the Market Access
Program.
As my colleagues are aware, the Market Access Program is administered
by the U.S. Department of Agriculture through its Foreign Agriculture
Service. MAP funding is designed to reimburse private companies,
industry associations and cooperatives for the promotion of brand-name
products as well as generic commodities overseas.
Unfortunately, Mr. President, it has become quite clear that the
Market Access Program is a flagrant example of a federal spending
program gone wrong--one that is simply unproductive, unjustified and
unaffordable.
Over the past few years, I have stood here on the Senate floor
several times to highlight the assorted flaws with this program,
particularly the outrageous reality that we are channeling millions and
millions of taxpayers dollars to some of the most prosperous
corporations in America, including Sunkist, Welch Foods, Gallo and
General Mills.
My efforts to terminate the Market Access Program were endorsed by a
sweeping coalition of fiscal watchdogs, including Taxpayers For Common
Sense, National Taxpayers Unions, Citizens Against Government Waste,
Friends of the Earth, Citizens for a Sound Economy and the U.S. Public
Interest Research Group.
Unfortunately, proponents of this policy made claims about the
program that were difficult for the General Accounting Office to refute
as a result of the lack of available information about the
effectiveness and value of the program. Clearly, greater scrutiny of
this program is appropriate and necessary.
In July of this year, the Senate passed an amendment that I authored
to the Agriculture Appropriations bill that I believe will have a
profound effect on the future of the Market Access
[[Page S11561]]
Program. I am pleased this provision has been retained in the
conference report before us today.
This provision requires the USDA to estimate the impact of the Market
Access Program on the agriculture sector as well as on U.S. consumers,
while also considering the costs and benefits of alternative uses of
the funds currently allocated to MAP.
Additionally, the amendment requires USDA to evaluate the additional
spending of participants and the amount of exports additionally
resulting from the Market Access Program.
I believe, Mr. President, that this information will allow the
General Accounting Office to produce a useful evaluation that will
enable Congress to make an informed, responsible decision about the
utility of continuing this program in future years.
Unfortunately, while this amendment will throw a spotlight on one
wasteful federal spending program, I am concerned that another
provision in this conference report could compromise past and future
efforts to rein in other wasteful and unnecessary federal expenditures.
As part of an effort to provide economic assistance to farmers and
producers who have been hit hard by the worsening weather and market
conditions facing rural America, this legislation includes roughly $6.5
million in the form of recourse loans for mohair producers.
Perhaps this funding assistance is warranted. Clearly, the entire
agricultural community is reeling from prolonged disastrous weather
conditions, a 20-year low in commodity prices and dwindling overseas
exports.
It is imperative that we provide to our producers in need, timely
disaster and other economic assistance for crop losses and other
related dilemmas.
However, we must be clear in stating that the emergency assistance
provided in this bill for mohair producers is not in any way, shape or
form an attempt to resuscitate the mohair subsidy program that was shut
down by the Congress just a few short years ago.
My colleagues will recall that the mohair subsidy program originated
in 1954, when Congress passed the National Wool Act, authorizing a
subsidy program to guarantee the production of domestic wool for
military uniforms during the Cold War era.
Mohair, which was used for decorative braids on military uniforms,
was inexplicably affixed to the wool subsidy program.
Over the years, the need and justification for both the wool and
mohair subsidies has plainly evaporated. Yet in 1992, years after the
sun had set on the Cold War and the strategic need for wool and mohair
had long expired, wool producers were still receiving roughly 130
million dollars in subsidy payments while mohair producers were still
receiving about 48 million dollars.
In light of this, I joined with several of my colleagues in 1993,
including Senators Kerry and Feingold, in terminating the wool and
mohair subsidy that had existed for nearly forty years. We shut that
program down.
That was no small accomplishment, Mr. President.
The Congress is clearly capable of, and has been somewhat successful
in reducing the size, scope and funding for a number of federal
spending programs.
But to actually terminate a program and to categorically wipe that
program clean from the federal budget, is indeed, an uncommon
achievement.
Mr. President, I am not here to dispute the contention that mohair
producers are deserving of emergency assistance. Certainly, virtually
every component of our agricultural community has been adversely
affected by the crisis that is facing our Nation's farmers and
producers.
But I do want to take this opportunity to express to the
distinguished Chairman and distinguished Ranking Member of the
Subcommittee my sincere hope that the inclusion of this funding for
mohair producers is not an attempt to re-open the wool and mohair
subsidy program that was shut down by Congress just a few short years
ago.
Terminating the wool and mohair subsidy was a small step on the road
to a balanced budget, and I fully intend to monitor this situation next
year. If we are to stay the course of fiscal responsibility, we must
make sure that the American taxpayer is not forced to subsidize those
antiquated programs the Congress has deemed to be wasteful and
unaffordable.
Mr. McCAIN. Mr. President, the Agriculture Appropriations bill
continues funding for the various agricultural and land-based programs
within USDA and directs $4 billion in additional spending to support
emergency farm relief and crop assistance to help farmers in need
during a critical year of disaster-related conditions.
Back in July, I reported more than $241 million in earmarks contained
in the Senate bill for unrequested, unauthorized or purely parochial
projects. A review of the conference report leads me to determine that
the conferees jointly decided to overload this report with even more
flagrant examples of wasteful and unnecessary spending. This year's
conference agreement is more than $381 million above the budget request
and higher than either the Senate or House had proposed.
Included in this spending bill is an added farm relief package that
totals $4 billion for crop loss assistance and market loss payments to
help farmers cope with emergency situations and falling prices. We did
not vote on this measure as part of the original Senate or House bill,
it was added in conference. This is a very serious issue which involves
a substantial amount of federal spending. Certainly, this deserves
thoughtful deliberation and careful review through our established
process, and should not be attached at the midnight hour to a
conference report. This is not the way we ought to conduct the business
of prioritizing taxpayer dollars.
Mr. President, each year, appropriations bills are a target for
members to advance political platforms. I find that the accounts for
the Agricultural Research Service and the Cooperative State Research,
Education, and Extension Service are a virtual goldmine for member-
interest earmarks.
For example, specific earmarks are directed at the cost of:
$250,000 for ``alternative fish feed'' in Idaho; $750,000
for grasshopper research in Alaska; $250,000 for lettuce
geneticist/breeding in Salinas, California; $1,000,000 for
peanut quality research in Dawson, Georgia and Raleigh, North
Carolina; $162,000 for peach tree shortlife in South
Carolina; $200,000 for tomato wilt virus in Georgia, and
$750,000 to the Fish Farming Experiment Laboratory in
Stuttgart, Arkansas.
While I am not an expert in the agricultural field, I find it
incredulous that we can expend one million dollars on peanut quality
research while we are experiencing a crisis in the farm economy!
Additionally, a quarter of a million is earmarked for ``alternative
fish feed''? While I am certain that the members from these respective
states can make their case for directed funding for these projects, I
question their desire to side-step a competitive and merit-based review
process.
I was pleased to note in the conference report a recognition of the
importance of merit review procedures for grant funding. However,
despite this recognition, the report continues to include directive
language which explicitly leads the agency to grant specific projects
with special consideration.
For example, the report reads:
The House and Senate reports recommend projects for
consideration under various rural development programs and
the conferees expect the department to apply established
review procedures when considering applications.
The report then directs:
The conferees further expect the Department to give
consideration to business enterprise and housing preservation
projects in the city of Bayview, VA; aplications for rural
business enterprise grants from TELACU, for a project in
Selma, CA; for assistance for a community improvement program
in Arkansas; water and sewer improvements for the City of
Vaughn, NM; the Shulerville/Honey Hill Water project, South
Carolina; and a rural enterprise grant for Indian Hills
Community College in Iowa.
This is a true disservice to the many potential competitors who are
vying for funding, yet decide to work through the designated
competitive grant process.
Last year I noticed a practice by the appropriators of using the
appropriations process to prevent Federal agencies from following
government-wide efforts to down-size and cut back on unnecessary
bureaucracy. This year's conference report formalizes this practice as
a tradition by including language such as:
[[Page S11562]]
Language whereby the conferees ``expect the Secretary, to the extent
practicable, to avoid the use of reductions-in-force or furloughs for
both Federal and non-federal employees or any county office closings'';
or,
Prohibitive language which prevents the expenditure of funds made
available by the Food and Drug Administration to close or relocate, or
to plan to close or relocate, the Food and Drug Division of Drug
Analysis in St. Louis, Missouri.
Mr. President, I am not trying to undermine the hard work of the
conferees for they do have a difficult responsibility. I commend the
managers on both sides of the aisle in working out a careful
compromise. Unfortunately, the Agriculture Appropriations conference
report is representative of legislative circumvention and the troubling
practice of pork-barrel spending.
Mr. President, I yield the floor.
Mr. COCHRAN addressed the Chair.
The PRESIDING OFFICER. The Senator from Mississippi.
Mr. COCHRAN. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mrs. MURRAY. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________