[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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