[Congressional Record Volume 146, Number 47 (Thursday, April 13, 2000)]
[Senate]
[Pages S2762-S2763]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. MURRAY:
  S. 2442. A bill to amend the Consolidated Farm and Rural Development 
Act to authorize the Secretary of Agriculture to provide long-term, 
low-interest loans to apple growers; to the Committee on Agriculture, 
Nutrition, and Forestry.


                   apple orchard diversification act

 Mrs. MURRAY. Mr. President, I rise today to introduce the 
Apple Orchard Diversification Act of 2000.
  Mr. President, I am proud that Washington state produces more apples 
than any other state in the nation. The apple industry is an 
independent group. It has made Washington state and U.S. apples and 
apple products popular in many corners of the world. In the mid-1990s, 
growers were doing well, markets were opening and expanding, and the 
future looked bright.
  But in 1998 and 1999, the bottom fell out from under them. Low prices 
and weather-related disasters devastated apple producers, and growers 
of hundreds of other commodities nationwide. In northeastern and mid-
Atlantic states, fruit and vegetable growers were hit hard by freezing 
temperatures and drought. In the Pacific Northwest, some growers were 
hurt by bad weather.
  But the biggest problem is low prices. These low prices are caused by 
the Asian financial crisis; by market access problems; by below-cost 
apple juice concentrate dumping by China; by record world-wide 
production and oversupply; and other factors.
  The results are devastating, especially in my home state of 
Washington. Nationwide, the industry lost an estimated $300 million on 
the 1998 crop. In Okanogan County in Washington state, some 
organizations have estimated that 90 percent of apple growers will not 
recover their 1999 expenses. Okanogan County already experiences high 
unemployment. It cannot afford a long-term, depressed farm economy. The 
county declared an economic disaster and urged the state to do the 
same. Meanwhile, other counties, especially in north central 
Washington, are trying to respond to this disaster. Many growers will 
go out of business. Others will not be able to get commercial lending 
this year.
  The Administration and members of this Congress are working to 
resolve some of the issues facing the industry and rural communities.
  Last year, Congress passed a large disaster relief package for 
agriculture. I supported this package because it kept many producers 
above water for another year. However, like many of my colleagues, I 
was frustrated this package did not do more for specialty crop 
producers. Congress provided $1.2 billion in crop loss assistance. 
Specialty crop producers, including apple growers, were eligible to 
receive assistance to address weather-related disasters, and some 
growers did. But, in states like Washington, the aid package did too 
little.
  Fortunately, action is occurring on the most important issue facing 
the apple industry. Earlier this month, the U.S. Department of Commerce 
levied anti-dumping duties of 51.74 percent on the majority of imports 
of below-cost apple juice concentrate from China. The Administration's 
preliminary anti-dumping duty ruling in November 1999 helped our 
producers by raising the price of both juice apples and concentrate. By 
May 22, the U.S. International Trade Commission will make its final 
injury ruling. If an injury determination is made, the Administration 
will implement anti-dumping duties at the levels prescribed by the 
Commerce Department.

  Our second victory was to address pest control in abandoned orchards. 
During my trip to central Washington last August, I heard from 
community leaders that this was a real problem.
  Low prices have caused many producers to abandon their orchards, and 
some of these orchards became infested. Infested orchards impact the 
operations of other producers and create potential trade problems. In 
response, counties tore out trees and sprayed orchards. But last year, 
funds in many counties were running low.
  USDA holds defaulted loans on some of these abandoned orchards. Last 
year, I urged the agency to take responsibility for pest control on 
those properties. The Farm Service Agency in Washington state created a 
strategy for reimbursing counties for pest control In October 1999, I 
wrote to Secretary Glickman to urge him to approve FSA's reimbursement 
strategy. Shortly thereafter, USDA implemented this initiative so 
counties could continue to control pests.
  The third victory for apple and specialty crop producers may come 
soon, when President Clinton signs risk management reform legislation 
into law. The bill passed by the Senate would make major changes to 
federal crop insurance policy to ensure that all producers, including 
specialty crop growers, will have access to more viable risk management 
products.
  But more needs to be done. My highest priorities for agriculture 
remain investing in research, expanding trade, and providing a safety 
net when economic and natural disasters strike.
  Last November, I introduced S. 1983, the Agricultural Market Access 
and Development Act. My bill would authorize the Secretary of 
Agriculture to spend up to $200 million--but not less than the current 
$90 million--for the Market Access Program. And it would set a floor of 
$35 million for spending on the Foreign Market Development 
``Cooperator'' Program. Senators Craig, Boxer, Feinstein, Gordon Smith, 
Gorton, Wyden, Cleland, and Coverdell have all cosponsored this 
legislation, and I appreciate their support.
  The USDA Foreign Agricultural Service has reported that in 1999 we 
experienced our first agricultural trade deficit with the European 
Union. We imported $7.7 billion of EU agricultural products and 
exported $6.8 billion. Our competitors have increased market promotion 
spending by 35 percent, or $1 billion, over the past three years. Our 
spending, however, has decreased one percent.
  Agricultural exports are key to maintaining a reasonable trade 
balance. Other nations have invested in market development, and it's 
worked. We need to enhance our trade programs to give our producers a 
more level playing field and a fighting chance.
  Besides expanding trade, we must strengthen the safety net for 
producers. We should not go back to our old Federal farm policies. Our 
program commodity growers do not want that, and our specialty crop 
producers do not want a new, permanent relationship with the federal 
government.
  But I believe this farm crisis has taught us that we need flexible 
tools available for all producers when economic or natural disasters 
strike. For some commodities this may mean counter-cyclical payments. 
Or it may mean a variety of flexible loans that meet the needs of all 
producers or specific commodities. As we debate the next farm bill, we 
should give USDA flexibility, within fiscally-responsible guidelines, 
to respond to crises in agriculture.
  Today, I am introducing legislation to create a one-time Apple 
Orchard Diversification Program. I have heard from growers that they 
could very much use a loan program to diversify their orchards into 
more commercially-viable varieties. Many of our producers invested 
heavily in Red and Golden Delicious apples, which are the varieties 
hardest hit by the economic crisis. We need a mechanism to allow these 
growers to diversify their orchards.
  My bill would do just that. It would authorize USDA to provide up to 
$75 million in long-term, low-interest loans to apple producers. The 
loans could be used by producers to purchase trees for converting 
existing apply orchards into more profitable apple varieties.
  My bill waives much of the regulatory process. USDA has been 
overwhelmed with managing disaster programs, and that has delayed 
relief. Instead, my bill bill requires USDA to conduct a stakeholder 
process, which

[[Page S2763]]

would include three hearings around the country. The industry would 
help develop the program, and address issues such as income and acreage 
qualifications for growers who receive loans, and parameters on 
payments, acreage and varietal stock quality.
  The concept of orchard diversification was born when Under Secretary 
Gus Schumacher visited Quincy, Washington, in July 1999. The Under 
Secretary has spent a great deal of time in apply producing regions 
around the country. Mr. Schumacher has been criticized by some elected 
officials and individuals for holding the listening session in 
Washington state. But I appreciate, and I know many of our family 
farmers appreciate, his interest in these issues.
  In conclusion, my grandfather moved to the Tri-Cities in the early 
1990s to work for Welch's. As a young child, I remember many trips to 
central Washington at harvest time to visit my grandmother, who 
remained in the area after my grandfather's death. To this day, the 
smell of fresh picked peaches and apples remind me of my childhood. To 
my Dad, it meant much more; it meant how his family put food on the 
table and paid the mortgage. We grew up understanding how important 
family-run orchards were to our state's economy.
  As I raised my own family, I always made sure we had a fruit tree in 
our yard. I wanted to remind myself of my years growing up and also to 
show my kids what a resource we have in our state. I could not imagine 
discussing Washington's economy without a box of apples being part of 
the picture. I want to make sure it stays that way for many generations 
to come.
  Mr. President, I urge my colleagues to cosponsor and help pass this 
important legislation.
                                 ______