[Congressional Record Volume 146, Number 33 (Wednesday, March 22, 2000)]
[Senate]
[Pages S1582-S1583]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             CROP INSURANCE

  Mr. GRAMS. Mr. President, I want to address the crop insurance reform 
proposal. I thank you for the opportunity to address this legislation 
that I think is so crucial to the economic health of farmers in 
Minnesota and across the country. I have appreciated the hard work and 
effort put into this bill, and I believe it is one of the key reform 
issues the Congress must address this year to create an economic 
climate that will enable America's farmers to thrive.
  As a sponsor of crop insurance legislation in both the 105th and 
106th Congress, I am certainly no stranger to this issue. Working with 
producers, rural lenders, economists, and other stakeholders, I think 
we have fashioned a bill that would encourage more participation in the 
program, help encourage producers to buy higher levels of coverage, and 
will also reduce the instances of ``moral hazard'' to keep everybody's 
premiums lower, and also help maintain the integrity of the program.
  Mr. President, I first introduced my crop insurance bill in the 105th 
Congress, and I am pleased that much of my own legislation has now been 
incorporated into the Roberts-Kerrey measure, including pilot programs 
that would offer farmers premium discounts for using whole farm units 
or one crop units of insurance, and allowing producers to cross State 
and county boundaries to form insurable units, plus a pilot program 
permitting producers to ensure their crops are based upon a future 
price. Also, I am pleased that this bill will now also include an 
expansion of the dairy options pilot program. I think this is also a 
very important tool for producers who are attempting to weather the ups 
and downs in the dairy market. So I think it is great that we have 
included this provision that is going to help dairy farmers in the 
Midwest and across the country as well.
  Participation in the Federal Crop Insurance Program has increased 
from 10 percent of the eligible acres in 1980 to about 70 percent of 
eligible acres last year, 1999. I think that is encouraging, but we 
still need higher levels of participation if our farm is to 
successfully manage its risk in the face of ever-changing global 
markets. Like almost no other form of employment, producers are subject 
to a host of variables that impact their bottom line, including 
weather, disease, production levels in other countries, foreign trade, 
increasing production costs, and changing consumer demand. All are out 
of the control of the producer.
  As most of you know, America's farmers are fiercely independent and 
ever optimistic and were glad to get the freedom to make their own 
production decisions that came with the 1996 farm bill. However, part 
of the promise of Freedom to Farm was that there would be accompanying 
efforts to bring about trade negotiations to reduce barriers, 
regulatory reform, and improvements to the Crop Insurance Program to 
help producers manage the risk in open markets. Unfortunately, the 
administration has not eased the regulatory burden on farmers, and we 
have not initiated new WTO talks or negotiations. I am confident this 
crop insurance reform legislation remains one of the most important 
pieces of the farm prosperity puzzle. Tax relief and tax reform for our 
farmers across the board is also very important because it directly 
impacts the bottom line, the net income of our farmers and the ability 
of our farmers to pass farms from one generation to another.
  Again, I am proud to be one of the early advocates for reform and 
that the basic concepts of my proposal again were carried into this 
reform bill.

[[Page S1583]]

  I strongly urge my colleagues to speedily approve this bill so it can 
be reconciled with the House bill and be completed as soon as possible.
  Thank you very much, Mr. President.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Idaho.

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