[Congressional Record Volume 145, Number 47 (Wednesday, March 24, 1999)]
[Senate]
[Pages S3298-S3299]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       SEVERE DROP IN PORK PRICES

 Mr. ASHCROFT. Mr. President, I ask that two letters be printed 
in the Record. Senator Bond and I worked on an amendment to the 
supplemental appropriations bill that would help the plight of the hog 
farmers in the state of Missouri and across the nation.
  The Missouri Farm Bureau, the Missouri Pork Producers, the American 
Farm Bureau, and National Pork Producers Council requested our 
assistance, and we have responded by working with the Appropriations 
Committee to get an amendment included in the supplemental 
appropriations bill that makes $250 million available for farmers 
struggling to survive the severe drop in pork prices. Under the 
amendment, the U.S. Department of Agriculture would be provided with 
$150 million new funds and would be given the authority to use another 
$100 million, that the USDA already has, to help hog farmers.
  It is the understanding of those of us that have offered this 
amendment today that the majority of the funds available to the 
Secretary of Agriculture will be used on behalf of our nation's pork 
farmers. Last year, all of the major commodity groups received disaster 
assistance, but the hog farmers received nothing.
  The letters from the Missouri Farm Bureau, the American Farm Bureau, 
and the National Pork Producers Council define further the farmers' 
interest in our amendment.
  The letters follow:


                              Missouri Farm Bureau Federation,

                               Jefferson City, MO, March 18, 1999.
     Hon. John Ashcroft,
     U.S. Senate, Washington, DC.

     Hon. Christopher Bond,
     U.S. Senate, Washington, DC.
       Dear Senators Ashcroft and Bond: On behalf of Missouri Farm 
     Bureau, the state's largest general farm organization, I am 
     writing to express our strong support of your efforts to make 
     additional funding available to the U.S. Department of 
     Agriculture for economic disaster payments to pork producers. 
     We believe that waiving the existing cap on USDA Section 32 
     funds and appropriating an additional $150 million to Section 
     32 will pave the way for the Secretary of Agriculture to 
     provide much-needed relief to pork producers.
       According to the University of Missouri, cash receipts for 
     the U.S. pork industry are expected to average less than $9 
     billion in 1998, a reduction of over $4 billion from the 1997 
     level of $13.2 billion. Although hog prices have recovered 
     from the historic lows experienced over the October 1998-
     January 1999 period, they remain far below the average cost 
     of production. Economists have now estimated the market 
     failed to reflect normal supply and demand conditions last 
     Fall when hog prices plummeted to 8 cents per pound. Studies 
     indicate that under normal supply and demand conditions 
     prices would have fallen to between $25.87 a hundredweight 
     and $29.41 a hundredweight.
       Funds that will be available for direct payments under 
     Section 32 will not compensate pork producers for all the 
     staggering losses experienced in recent months. However, 
     these funds will enable producers to relieve some financial 
     pressure making it easier to survive until profitability 
     returns.
       It is critical the Secretary of Agriculture understand the 
     purpose of the pending amendment is to supplement existing 
     Section 32 funds and provide emergency assistance to pork 
     producers. We encourage the Secretary to work with Members of 
     Congress and the agricultural community to develop the 
     guidelines under which the funds will be administered. We do 
     not support using the same parameters used for the recent 
     Small Hog Operator Program.
       Thank you for your leadership on this issue.
           Sincerely,
                                                 Charles E. Kruse,
                                                        President.

[[Page S3299]]

     
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                                                   March 18, 1999.
     Hon. John Ashcroft,
     U.S. Senate, Washington, DC.
       Dear Senator Ashcroft: The American Farm Bureau Federation 
     and the National Pork Producers Council commend you for your 
     efforts to help pork producers who have suffered due to the 
     lowest prices since the Great Depression.
       We support your amendment to the FY 1999 supplemental 
     appropriations bill, which would provide $150 million to USDA 
     for additional aid to hog farmers. As you well know, U.S. 
     pork producers lost over $2.5 billion in equity in 1998 and 
     are expected to lose another $1 billion in equity in 1999. 
     The nation's pork producers are facing another difficult year 
     due to continued depressed prices and are looking to Congress 
     for direction with regard to the recent economic disaster 
     faced by the U.S. pork industry.
       AFBF and NPPC appreciate your efforts on behalf of the 
     nation's pork producers and look forward to working with you 
     on behalf of agriculture.
           Sincerely,
     Dean Kleckner,
       President, American Farm Bureau Federation.
     John McNutt,
       President, National Pork Producers Council.

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