[Congressional Record Volume 145, Number 84 (Tuesday, June 15, 1999)]
[Senate]
[Pages S7026-S7027]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CONRAD (for himself, Mr. Grassley, Mr. Daschle, and Mr. 
        Baucus):
  S. 1222. A bill to amend the Trade Act of 1974 to provide trade 
adjustment assistance to farmers; to the Committee on Finance.


            the trade adjustment assistance for farmers act

 Mr. CONRAD. Mr. President, I rise today to introduce a bill 
that would amend the Trade Act of 1974 to make farmers eligible for 
Trade Adjustment Assistance (TAA) similar to that provided to workers 
in other industries who suffer when there is an increase in imported 
products. This bill would provide equitable treatment for farmers

[[Page S7027]]

when imports affect the prices of the commodities they grow.
  When imports cause layoffs in manufacturing industries, workers are 
eligible for TAA. However, when imports cause agricultural commodity 
prices to drop, farmers lose income but they don't lose their jobs. 
That means they generally don't get benefits from TAA. Let me explain 
why.
  Farmers typically do not earn a salary check. Farmers get paid for 
the crops or livestock that they grow. When commodity prices are low, 
the check the farmers get for all the hard work of growing crops or 
livestock for a whole year may be so low that they cannot cover family 
expenses. In some cases, the payment they get for selling their crops 
or livestock is so low that they cannot even cover the costs necessary 
to produce the commodity (such as feed, seed, fertilizer, etc.), so the 
farmers lose money for the year. Low prices resulting from imports 
directly reduce farmers' incomes, but because farmers do not actually 
lose their jobs, they do not qualify for the TAA benefit.
  For example, farmers in my state are experiencing record low prices 
that result, in part, from a flood of imports of wheat, barley and 
livestock from Canada. These imports cost North Dakota farmers hundreds 
of millions of dollars in lost income. But North Dakota farmers have 
not been able to take advantage of the TAA program. The bill that I am 
introducing today would provide some equity by ensuring that farmers 
whose income was affected by imports would be eligible for TAA benefits 
just like other workers.
  Most of us would agree that trade is extremely important to our 
overall economy. International trade allows Americans to sell U.S.-made 
products to world markets, rather than just to those who live in this 
country. Trade also allows American to buy products that the rest of 
the world produces. And trade is especially important to our 
agricultural economy. According to the U.S. Department of Agriculture, 
one-third of U.S. crop land produces for export.
  U.S. agricultural exports are a bright spot for our nation's balance 
of trade. In 1999, the United States is expected to export $49 billion 
worth of goods, compared to agricultural imports this year of $37.5 
billion. Thus, agricultural exports contribute $11.5 billion to our 
balance of trade with other nations.
  Nonetheless, many farmers and other citizens feel that they can be 
hurt by free trade. When we import commodities that compete with what 
Americans are producing, then some American producers--whether they are 
workers, firms, or farmers--can be hurt by falling prices for the goods 
they produce.
  As a result, the lack of trade adjustment assistance for farmers has 
undercut support for trade among many family farmers.
  By giving farmers some protection against precipitous income losses 
from imports, the Trade Adjustment Assistance for Farmers Act can help 
strengthen support for trade agreements that expand agricultural export 
opportunities.
  We need to be sure that we don't leave American farmers behind, and 
that we treat farmers fairly in comparison with other American workers 
and industries. That's why I am introducing this bill, the Trade 
Adjustment Assistance for Farmers Act.
  This bill would amend the Trade Act of 1974 to provide trade 
adjustment assistance to farmers by partially compensating them for 
income lost due to the effect of imports. Here's how it will work.
  Farmers would receive benefits that would be triggered when two 
conditions are met. First, the national average price for a specific 
commodity for the previous marketing year must have dropped more than 
20 percent below the average price in the previous 5-year period. 
Second, increased imports--or a high level of imports--must have 
contributed importantly to the commodity price reduction.
  A group of farmers who grow a particular commodity (or a commodity 
group representing them) would submit an application for trade 
adjustment assistance to the Labor Department. The Secretary of Labor 
(consulting with the Secretary of Agriculture) would determine whether 
the two triggers had been met.
  If the commodity is determined to be eligible, then individual 
producers could apply for benefits. Farmers who are eligible for 
benefits under the program would receive a cash assistance payment 
equal to half the difference between the national average price for the 
year (as determined by USDA) and 80 percent of the average price in the 
previous 5 years (the price trigger level), multiplied by the number of 
units the farmers had produced. The maximum cash benefits available to 
farmers under this program would be $10,000 per year.
  Training and employment benefits that are available to workers under 
TAA would also be available, on an optional basis, to farmers who are 
eligible for cash assistance benefits under the law. For example, a 
farm family that was suffering from low prices due to increased imports 
might consider retraining to learn skills in the high-tech computer 
industry, which they could use in an at-home business to supplement 
farm income.
  In most years, this program would likely have a modest cost because 
very few commodities, if any, would be eligible for assistance. 
However, in a year like the last we have just been through--when hog 
and wheat prices dropped precipitously--this program would be one tool 
to provide a modest amount of support to compensate farmers for the 
harmful effect of imports on their commodity prices and thus their 
incomes. Thus the bill would treat family farmers fairly, including 
them in the protections available to others in our economy who are hurt 
by the increased trade that, in the aggregate, benefits us all.
  Mr. President, I hope my colleagues will join me in supporting 
American family farmers as they compete in the global market 
place.
                                 ______