[Congressional Record Volume 146, Number 142 (Wednesday, November 1, 2000)]
[Senate]
[Pages S11471-S11472]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               FFARRM ACT

  Mr. GRASSLEY. Mr. President, the tax relief bill we are about to pass 
contains many very popular tax cut measures that will be good for 
Americans and good for the country. One of the provisions included in 
the package is The Farm, Fisherman, and Ranch Risk Management Act--
FFARRM.
  This is a proactive measure that would give farmers a five-year 
window to manage their money. It would allow them to contribute up to 
20% of the annual income to tax-deferred accounts, known as FFARRM 
accounts. The funds would be taxed as regular income upon withdrawal.
  If the funds are not withdrawn five years after they were invested, 
they are taxed as income and subject to an additional 10% penalty. So, 
farmers will be able to put away savings in good years so they will 
have a little bit of a cushion in bad years.
  Agriculture remains one of the most perilous ways to make a living. 
The income of a farm family depends, in large part, on factors outside 
their control. Weather can completely wipe out a farm family. At best, 
it can cause their income to fluctuate wildly. The uncertainty of 
International markets also threatens a farm family's income.
  If European countries impose trade barriers on farm commodities, or 
if Asian countries devalue their currency, agricultural exports and the 
income of farmers will fall.
  Today, farmers face one of their most severe crises with record low 
prices for grain and livestock. The only help for these farmers has 
been a reactionary policy of government intervention. While this aid is 
necessary to help farmers pull through the current crisis, it's merely 
a partial short-term solution.
  Farmer Savings Accounts will help the farmer help himself. It's not a 
new government subsidy for agriculture and it will not create a new 
bureaucracy purporting to help farmers. It will simply provide farmers 
with a fighting chance to survive the down times and an opportunity to 
succeed when prices eventually increase.
  Another important provision in this bill deals with farmers who want 
to income average but aren't able to because of the alternative minimum 
tax. A few years ago, Congress reinstated income averaging for farmers 
because we recognized that farmers' income fluctuated from year to 
year.

[[Page S11472]]

  Unfortunately, many farmers are not able to make use of this benefit 
because they're subject to the alternative minimum tax. Our tax relief 
bill will fix this problem for tens of thousands of farmers.
  There are many other farmer-friendly measures that I and others 
advocated in the Senate bill. Unfortunately, some of our House 
counterparts didn't agree with us. I believe that will change next year 
and I will certainly be working hard to pass these in the next 
Congress.
  In the meantime, we have some very good and necessary pro-farmer 
proposals before us that can be passed this year.
  I only hope the Clinton-Gore administration doesn't veto the family 
farmer by vetoing this bill.
  Thank you Mr. President.

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