[Congressional Record Volume 145, Number 51 (Wednesday, April 14, 1999)]
[House]
[Pages H2035-H2036]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   AUCTIONS, AUCTIONS, AUCTIONS: WHAT WILL HAPPEN TO THE FAMILY FARM?

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from North Dakota (Mr. Pomeroy) is recognized for 5 minutes.
  Mr. POMEROY. Mr. Speaker, I want to follow up on the comments of my 
friend and colleague, the gentleman from South Dakota (Mr. Thune) 
relative to the agriculture crisis. I cannot say how terrible it is 
relative to the farm economy in North Dakota.
  I have with me today some auction bills. We have been seeing a lot of 
these auction bills. Consider that each auction bill represents a sale 
of a family farm, the end of literally generations of tradition of 
farming the land. It goes on for pages.
  Recently, Ag Week Periodical, which covers the Red River Valley, the 
most prosperous part of agriculture in my State, published 150 farm 
auctions. This is 150 individual operators throwing in the towel, 
ending, again, the tradition handed down for generations of making a 
living off their land. In each case, it is a tragedy and something to 
be avoided.
  One friend of mine, and I am going to offer this for the Record, who 
is selling out after 120 consecutive years of production on this family 
farm, wrote an op-ed to the newspaper and he has on the title of it, 
now at least we do not have to wonder anymore.
  Mr. Speaker, there are an awful lot of families wondering tonight 
whether or not they will be able to get a crop in the ground this 
spring. Imagine, we all deal with career uncertainty surely as Members 
of the House up for election every other year. We really never know 
until the election is over what we are going to be doing, but we have 
people at this late point in the spring not knowing whether they will 
be able to put a crop in the ground right now.
  Obviously, if they cannot get the financing to get a crop in the 
ground they have no idea what they are going to do to put shoes on 
their kids' feet, to put food on the table.
  We have got a full-blown crisis in agriculture directly related to 
the financing capital farmers need to get their crop in the ground this 
spring.
  For that reason, the administration advanced several weeks ago 
emergency funding requests so that we might have additional loan 
authority funded. The request is for $152 million and it is part of the 
supplemental appropriations bill sent up by the White House; $109 
million of that would make $1.1 billion in additional lending authority 
available to farmers, $42 million so that the USDA could actually hire 
additional staff to process these applications and get the money out.
  Here is what has happened. In light of the collapse in commodity 
prices, farmers have had terrible losses. As they sit down with their 
regular bankers, they are unable to show cash flow and, therefore, 
unable, ineligible in many cases, for the financing that they had 
otherwise expected.
  Now there are programs available for these farmers, FSA lending 
programs, direct lending programs, USDA loan guarantee programs, but 
because so many have had trouble in lending in the normal course, they 
have come to the USDA and overwhelmed the resources available for those 
USDA loans.
  Right now North Dakota, we have a backlog. We do not have enough 
money to meet the loan need now and it is anticipated that that loan 
need is going to increase dramatically over the next few days. There is 
$4.4 million in unmet loan need that has come into the North Dakota FSA 
offices over the last 2 days alone. This is a crisis, and it is a 
crisis with a very narrow window of time for us to address.
  If a farmer cannot get the crop in the ground in the spring, the 
money coming along here in July or August is not going to do a lick of 
good. The window is gone. They have lost the chance to plant, and for 
these operators that means they have lost the farm.
  I would say to my colleagues, please let us move this supplemental 
appropriation request along. Everyone knows of the urgent straits in 
farm country, not just in North Dakota or South Dakota but throughout 
the country, and we must respond to this by getting that loan guarantee 
money replenished so that it can get out to the farmers so they can get 
their crop in the ground this spring, so they don't lose their farms.
  It is as simple as that. It is very straightforward. This is a body 
that unfortunately sometimes cannot operate very quickly, but there is 
just no mistake. The urgency is now. We have to act. Failure to act is 
going to mean a lot more auction bills and that, in each instance, is a 
tragedy.

                  Now We Don't Have to Wonder Anymore

       Bismarck, N.D.--On June 15, near Mayville, N.D., there will 
     be another farm auction--just another farm auction--barely 
     noticed by most in these days of collapsing agriculture as we 
     know it. Just another sale bill.
       Just another gathering of neighbors, family, friends and 
     buyers--buyers who realize that with all sales at this time, 
     there should be some pieces of equipment useful to them that 
     will go at a bargain price. Friends and neighbors will come 
     to offer moral support and experience the friendly social 
     atmosphere that is unique to rural America. Family members 
     will come to witness the end of the family tradition.
       Last year was the 120th crop planted and harvested since 
     the original homestead was taken in 1878. Some of the family 
     members want to witness the auction as a closure, similar to 
     attending a funeral for a loved one. Sometimes it takes an 
     event to provide acceptance of what has happened.
       For many years we have seen hundreds of sale bills, been to 
     auctions and wondered what these folks were going through--
     what they were feeling. I'm sure that for most it was every 
     bit as difficult as it is now for us. I would guess that 
     after the initial sense of failure and depression, there is 
     an uneasy sense of relief that the hopelessness can now be 
     dismissed and energies can be devoted to something positive.
       Now we don't have to wonder anymore. The initial feelings 
     have come and gone. The personal feelings have been pushed 
     aside for the most part--at least on the surface. Now the 
     business decisions must take over. Emotions will have to give 
     way to the matters at hand. The plans on how to best organize 
     and handle preparations for the sale are now a priority.
       Occasionally regrets surface, and I wonder what we could 
     have done differently to have

[[Page H2036]]

     avoided the present situation. What did my grandparents do 
     when faced with the perils of pioneer life at the turn of the 
     century? What did my parents do when they were faced with 
     hard times prior to and during the depression of the 1930s?
       The accounts of their struggles are fresh on my mind. I 
     listened intently as they described how drought, rust and low 
     prices nearly pushed them over the edge. Only hard work, 
     hope, determination and a strong faith sustained them. Faith 
     in God and in a society that would ultimately rescue America 
     from a bad situation. They endured and persevered. And with 
     the help of federal farm programs at the last, even 
     prospered.
       This came at a time when the world seemed to care about its 
     food supply and those who produced it. As time passed and a 
     degree of prosperity continued some became frustrated with 
     the aspect and methods of supply management. A bit of 
     arrogance told some that we no longer needed any help from 
     the federal government and that we could handle things now.
       The commodity traders, food processors and exploiters of 
     the ag sector of our economy could now have their way. 
     Congress listened to the wrong people--those whose interests 
     were not supportive of farm families. A non farm bill called 
     ``Freedom to Farm'' was crafted and passed over the 
     objections of our rural congressional delegations. This, 
     along with the years of crop disease, bad foreign trade 
     policies and apathetic citizens, all contributed to our 
     present situation.
       Our country has never experienced overall hunger. Many 
     European countries have, and they appreciate and protect 
     their agriculture producers. We have been scolded for not 
     being efficient. We have been told to produce more--we have. 
     We have been told to market smarter--we have. We have been 
     told to expand--we have.
       None of this helps without a equitable price. In the 
     Legislature we have attempted in a small way to address the 
     problems with the proposals forwarded by the Commission on 
     the Future of Agriculture. Nearly all proposals have been 
     defeated by the Republican majority.
       What now? Do we in the North Dakota Legislature turn our 
     backs on the No. 1 industry in our state and let what is left 
     crumble further? Or do we put some plans forward to help 
     solve the problems at the state level? It may already be too 
     late to ask Congress for help given the demographics of our 
     rural/urban population split. Are we going to offer any hope 
     that we are willing to save agriculture as we know it?
       It is too late for some of us. But it is still not too late 
     for North Dakota. We must use what we have left of this 
     session to get to the business of supporting rural families 
     and communities.

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