[Congressional Record Volume 147, Number 26 (Thursday, March 1, 2001)]
[Extensions of Remarks]
[Pages E261-E262]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROVISION TO HELP PRESERVE VETERANS FAMILY FARMS INCLUDED IN VETERANS' 
                       OPPORTUNITIES ACT OF 2001

                                 ______
                                 

                            HON. LANE EVANS

                              of illinois

                    in the house of representatives

                        Thursday, March 1, 2001

  Mr. EVANS. Mr. Speaker, in the 106th Congress, I introduced H.R. 
5271, the Veterans' Family Farm Preservation Act, to make it possible 
for more wartime veterans and their survivors to qualify for pension 
benefits from the Department of Veterans Affairs (VA) without being 
forced to sell their family farms and ranches. I am pleased that the 
provisions of this legislation have been included in the Veterans' 
Opportunities Act of 2001, H.R. 801, a bipartisan bill introduced on 
February 28, 2001. This legislation will also benefit low-income 
veterans who seek to obtain health care from VA.
  The productivity of America's family farms is undisputed. Family 
farms and ranches feed our Nation. Family members and unpaid workers 
account for 70% of farm labor in the United States. While America's 
family farmers and ranchers are unmatched in their productivity, they 
have little or no control over many factors which determine the 
economic results of their labor.
  Veterans who have gone in harm's way and placed their lives on the 
line by serving our nation in the Armed Forces should not be asked to 
relinquish their family farm in order to qualify for veterans' 
benefits. Unfortunately, that is what is occurring today. H.R. 801, 
which House Veterans Affairs Committee Chairman Chris Smith and I 
introduced together with J.D. Hayworth, Benefits Subcommittee Chairman 
and Ranking Democratic Subcommittee Member Silvestre Reyes, includes 
provisions to address this problem. I urge Members to support this 
bipartisan effort.
  Pension benefits administered by the Department of Veterans Affairs 
(VA) are payable

[[Page E262]]

to wartime veterans who are totally and permanently disabled due to a 
non-service connected medical condition. A small, but important number 
of these disabled wartime veterans own family farms or ranches, which 
provide the livelihood for their families. Most family farms in the 
United States are very small. Over 75% of family farms have less than 
$50,000 in gross annual sales. After deductions for costs of operating 
the farm or ranch, the net income of the family farmer is much lower. 
Farmers receive an average of 20 cents for every dollar of produce 
sold. In 1995, the average net farm income for very small farms was 
$510. The average net farm income for small farms with gross sales 
between $50,000 and $250,000 averaged $14,335. Clearly most family 
farmers have modest annual income.
  In determining eligibility for pension benefits, VA is required to 
consider not only the family income, but also the family's ``net 
worth.'' Currently, unless VA determines that the land can be sold at 
``no substantial sacrifice'', the value of farm and ranch land is 
included in determining net worth. Some veteran farmers are ``land 
rich.'' While having little or no liquid assets, the value of their 
land makes their ``net worth'' appear larger on paper.
  Family farms are important not only for the food and fiber they 
produce, but also for the values they represent. Family farms should 
not be considered as simply substitutes for liquid bank accounts or 
other liquid assets. In good years, family farms and ranches provide an 
adequate income. In bad times, adverse crop conditions or illness, the 
income and liquid resources of family farmers and ranchers are quickly 
depleted. Wartime veterans have made a substantial sacrifice on behalf 
of our Nation by serving in the Armed Forces. We should not ask them to 
sacrifice their family farms in order to receive the assistance they 
have earned by their wartime service.
  I believe that an operating family farm can never be liquidated 
without substantial sacrifice on the part of the veteran. It is never 
reasonable to require a veteran to sell his or her means of future 
livelihood in order to obtain pension benefits or VA health care. If 
the farm is sold, the assets which in future years can be expected to 
generate income for the veteran and the veteran's dependents, are 
permanently lost.
  Under H.R. 801, farm and ranch land owned by the veteran and the 
veteran's dependents would be excluded in determining net worth. The 
bill would also exclude land used for similar agricultural purposes, 
such as timberland, Christmas tree farms, or horticultural purposes.
  During the past century, the number of family farms in our country 
has declined dramatically. When a veteran is required to sell his or 
her farm in order to receive necessary VA assistance, another family 
farm may be lost forever. No veteran should be called on to make this 
additional sacrifice. I urge my colleagues to support H.R. 801. 
America's family farmers and ranchers deserve the relief which this 
legislation will provide.

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