[Congressional Record Volume 145, Number 53 (Monday, April 19, 1999)]
[Senate]
[Pages S3824-S3825]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      BRAZILIAN SOY MEAL PURCHASE

  Mr. GRASSLEY. Mr. President, I want to address a family farm issue 
and I want to take this opportunity to send a clear message to other 
portions of agriculture that I sense are not supporting the family 
farmers of America the way they should be, when in reality, the 
organizations I'm finding fault with are in the very same boat as any 
family farmer in America. What's even more disturbing to me, some of 
these really big megapork producers in America refer to themselves as 
family farms. It's in the title of their organization.
  The fact is, Mr. President, family farmers are facing the lowest 
soybean prices in 23 years. Farmers are currently storing more soybeans 
on the farm than at any other point in the 1990's. In addition, the 
American Soybean Association forecasts this year the United States will 
have a larger number of carry-out stocks than at any other point this 
decade. Due to the excessive available supply, family farmers marketing 
soybeans are in a very difficult situation.
  Soybean prices will not improve until U.S. reserves are diminished. 
But, believe it or not, the cooperative that I've referred to, composed 
of some of the largest livestock integrators in the Nation, are 
planning to import soybean meal from Brazil. And, of course, this is 
going to have a very significant negative impact on American soybean 
producers. But, more important, it is demoralizing to the family 
farmers of America who are producing soybeans to read reports about 
other so-called family farmers importing soybean meal from another 
country.
  The cooperative located in the Southeast United States will bring in 
three foreign shipments totaling 75,000 metric tons of soybean meal. 
And, by the way, for those of you who don't know agriculture, soybean 
meal is used as a protein supplement in feed, which when combined with 
corn and other feed grains helps to prepare the hogs for slaughter and 
domestic consumption.
  I reported to you that they will be bringing in 75,000 metric tons of 
soybean meal on three different foreign shipments. It takes 
approximately 52 bushels of soybeans to produce one metric ton of 
soybean meal. This means that U.S. soybean producers are losing an 
opportunity to market nearly 4 million bushels of soybeans to these six 
producers of hogs who are part of this cooperative.
  With the current crisis in the agriculture community, it's an 
understatement to say that this purchase has not been well-received by 
soybean producers. It has already been my impression that when times 
are tough on the farm, the agriculture community, both farm and non-
farm, pitches in to help each other. From individual barn raisings to 
emergency hay lifts, family farmers stick together to help each other. 
Now, with soybeans under $5 a bushel, and that's a 23-year low, I would 
hope that this was one of those times when the ag community would come 
together in the face of adversity.
  Maybe I'm wrong, or maybe the livestock integrators which make up the 
cooperative in question don't understand the impact of their actions. 
One of the entities involved in the cooperative holds itself out to be 
a family farm organization. Well, if it's really a family farm, this is 
the perfect time to show its true colors and support American family 
farmers.
  Mr. President, if the entities within this cooperative buying group 
want to be considered as family farmers, they should support the family 
farmers, and I'm speaking specifically about Murphys' Family Farms, 
Carroll Foods, Prestage, Smithfield Foods, Goldsboro Farms, and 
Nashjohnson and Sons Farms. These are the members of this cooperative 
that are buying soybean meal from Brazil when we have this oversupply 
in our own country.
  Now, as I indicated to you, family farmers generally help family 
farmers. And I have never once complained in America as a matter of 
public policy about something being too big. These are obviously very 
big producers of pork in the United States. I have no resentment that 
they are successful. But some of these operations feed some of their 
livestock in my State of Iowa. We are the number-one soybean-producing 
State. It seems to me that whether the feed in question that's coming 
from Brazil is used in North Carolina or used in Iowa, it still is 
wrong to do this to the people that you consider your neighbors in each 
of these States. I would like to have all these farmers get their heart 
into American family farm agriculture or get their rear-end out.
  I urge this cooperative to reassess its position and consider the 
plight of the family farmer. Place American farmers' long-term 
interests above what may only be a short-term gain and obviously a very 
bad public relations stunt for each of you. I yield the floor.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.

[[Page S3825]]

  Mr. BOND. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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