[Congressional Record Volume 148, Number 58 (Thursday, May 9, 2002)]
[Senate]
[Pages S4137-S4140]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             FARM SECURITY AND RURAL INVESTMENT ACT OF 2002

  Ms. SNOWE. Mr. President, I rise today in support of the Farm 
Security and Rural Development Act of 2002. While previous farm bills 
have provided very little for the State of Maine and the New England 
region, I am pleased that the conference report before us, while by no 
means perfect, provides for a more equitable treatment for the farmers 
in Maine and the Northeast. I have been in touch with the farmers and 
growers in Maine throughout the development of the 2002 Farm bill, and 
they, like I, believe the Northeast has been shortchanged in past Farm 
bills.
  The State groups, such as the Maine Potato Board, the Maine Wild 
Blueberry Commission, the Maine Farm Bureau, the Maine Apple Growers, 
the Northeast Dairy Coalition, the Directors of the State's Farm 
Service Agency and Maine Rural Development, and the State 
Conservationist at the National Resource Conservation Service, believe 
that this conference report starts us down a path toward regional 
equity from which I would hope we will not stray in the future 
development of farm policies.
  In addition, on May 6, Commissioner Robert Spear of the Maine 
Department of Agriculture wrote me similar thoughts, stating that, ``I 
believe it is

[[Page S4138]]

a good improvement over the so-called Freedom to Farm. The bill 
strengthens the safety net for all farmers, it more equitably 
distributes Federal farm dollars and it provides strong incentives to 
improve stewardship''. I would like to submit Commissioner Spears' 
entire letter for the Record.
  First and foremost, this past year, I made a pledge to the dairy 
farmers of Maine that I was committed to see that the safety net they 
had through the now expired Northeast Interstate Dairy Compact would 
not be pulled out from under them. This has been my top priority for 
maintaining a way of life in our rural communities, and I am pleased 
that the Farm bill provides for a dairy program modeled on our Dairy 
Compact.
  I have stated numerous times on this floor that I would have much 
preferred that the Northeast Interstate Dairy Compact be reauthorized 
along with the inclusion of those Northeast States that surround New 
England that want to join the compact to ensure that people in the 
region can get fresh, low-priced fluid milk in their grocery stores. In 
contrast to the provisions contained in the conference report, the 
beauty of the Northeast Dairy Compact was that it required no Federal 
funding.
  Under the conference report, dairy farmers will get monthly payments 
over the next 3\1/2\ years when the price of fluid milk drops, not 
yearly as other commodity programs, but monthly checks that come only 
when prices are low, and at the very time the producers need a better 
cash flow to keep the farm and their dairy herds going, as the 
Northeast Dairy Compact provided.
  I am very pleased that the dairy funding provided is retroactive to 
December 1, 2001, as it corresponds with the time when milk prices 
started to drop in New England and continue to remain low. The dairy 
farmers in my State will be able to count on approximately $3.2 million 
in added income from last December through this coming July, when it is 
predicted that prices may start to climb. These payments may literally 
save some of our small family farms as the Northeast Compact has done 
in past years, and I urge the USDA to get these retroactive payments 
out to the dairy farmers just as soon as possible.
  In the future, when the price of fresh fluid milk drops below $16.94 
per hundredweight, our dairy farmers will receive 45 percent of the 
difference of that price and the current price of the fluid milk. This 
will apply to the first 2.4 million pounds of production of fluid milk 
or for a dairy herd of around 135-140 cows, a small family farm that 
has forged a way of life in New England for three and four generations.
  Not only has the dairy safety net been an important provision for me, 
but a substantial increase in funding for voluntary agriculture 
conservation programs has been a priority as well. Like the 
environmental groups I have worked with, such as Environmental Defense 
and the Environmental Working Group, I am disappointed that the 
conferees did not keep the Senate's higher funding numbers for funding 
to farmers to promote conservation in each of our States. But, I am 
pleased that there is still an 80-percent increase overall for 
conservation funding in this conference report.
  The funds going to Maine will at the very least be quadrupled, 
estimated to be close to $23 million by 2005. This is very important 
funding for a State that is facing pressures from the environmental 
impacts of growth and sprawl and pressures to preserve open spaces, and 
also the need to conserve our water resources, in some cases to restore 
the habitats of the now endangered Atlantic salmon in eight Downeast 
rivers, a few which flow through the heart of our Maine Wild Blueberry 
fields where water is important to both.
  The conference report also provides $1.03 billion in mandatory 
funding for rural development programs. Under the Rural Development 
Community Water Assistance Grant Program, for instance, Maine will 
receive $3 million of the $30 million in mandatory funding through 2011 
to address drought conditions by making rural areas and small 
communities eligible for grant funding where there is a significant 
decline in quantity and quality of water.

  This funding is particularly critical when considering that, like 
many States on the East Coast, Maine has been experiencing an extended 
period of drought, so the funding that helps residents deal with 
drought conditions is of great importance. There are, according to the 
Maine Emergency Management Agency, 1,700 wells that have now gone dry 
in the State. Total precipitation for 2001 was the driest in 108 years 
of precipitation monitoring in the State. Precipitation has actually 
been below average for 22 of the last 24 months, and while we have been 
helped somewhat by recent snow and rain, NOAA's National Weather 
Service climate forecasters see limited relief from the drought in the 
months to come.
  Also, the Rural Water and Waste Facility Grants will provide Maine 
with up to $90 million over 10 years of additional resources to assist 
small rural communities with their drinking water and wastewater needs. 
Reauthorization of Rural Development Programs through 2011 will provide 
Maine with at least $1.5 million over 10 years for regional planning 
activities and technical assistance to small businesses.
  Grants to non-profit organizations will be provided to finance the 
construction, refurbishing, and servicing of individually-owned 
household water well systems in rural areas for low or moderate income 
individuals by providing resources to community based organizations to 
help families with severe drinking water problems.
  There are provisions to train rural firefighters and emergency 
personnel to assist small communities in Maine with homeland security 
issues, to support the rural business investment program, and $80 
million for loan guarantees to provide local TV signals to rural areas.
  In regard to the Rural Empowerment Zones, Rural Enterprise 
Communities, and Champion Communities for Direct and Guaranteed Loans 
for Essential Community facilities, the city of Lewiston, ME, will now 
be eligible to take advantage of the benefits of Community Facility 
Direct and Guaranteed Loan Programs. Lewiston was one of only two 
communities nationwide specifically named in the Farm Bill Conference 
Report.
  For agricultural research, the conference report expands the 
Initiative for Future Agriculture and Foods Systems, important to the 
University of Maine as a real new source of research and development 
funding. The University has competed successfully for these grants in 
the past and currently has a $2 million IFAFS grant for looking at 
small integrated farm systems, along with being cooperators of several 
other IFAFS grants around the country.
  For the promotion of Maine value-added agricultural products around 
the world, the Market Access Program will be increased to $200 million 
annually by 2006, which is up from the current funding of $90 million. 
The MAP has been invaluable in helping to advertise the quality of our 
Maine potatoes and wild blueberries, helping growers to market their 
products abroad. Another $20 million is provided to help growers of 
fruits and vegetables and other specialty crops combat trade barriers. 
In addition, $200 million is provided to purchase agriculture products 
for the School Lunch Program, and products listed as eligible for the 
program are potatoes, blueberries, and cranberries, all grown in the 
State.
  Funding for 15 underserved States, of which Maine is one, is doubled, 
now set at $20 million annually for fiscal years 2003-2007 for 
marketing assistance, organic farming, pesticide reduction projects, 
and conservation assistance to help farmers sustain their working 
lands.
  Somewhat overlooked in the conference report is a newly created title 
that was included in the Senate-passed bill for energy efficiency and 
conservation, providing $450 million for research on bio-based fuels, a 
Federal biofuels purchasing program and efficiency measures that can 
make renewable energy the cash crop for the 21st Century.
  To help decrease the country's reliance on foreign oil imports, a 
competitive grant program will support development of biorefineries for 
conversion of biomass into fuels, chemicals and electricity. A 
biodiesel fuel education program will be funded at $1 million a year. 
The conference report will also establish a competitive grants program 
for energy audits and renewable energy

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development assessments for farmers and rural small businesses.
  In addition, $23 million a year from 2003 to 2007 is provided for a 
loan, loan-guarantee and grant program to help farmers, ranchers and 
rural small businesses purchase renewable energy systems and make 
energy efficiency improvements. Also authorized is the continuation of 
the Commodity Credit Corporation bioenergy program and includes animal 
byproducts and fat, oils and greases as eligible commodities.
  A competitive grant program is established to support development of 
biorefineries for conversion of biomass into fuels, chemicals and 
electricity. A biodiesel fuel education program would be funded at $1 
million a year.
  Of great interest to many small forest landowners in Maine is a 
provision in the conference report's forestry title for $100 million in 
obligated funds for the Forest Lands Enhancement Program, which will 
provide financial and technical assistance to small, private, non-
industrial forest landowners for a variety of good management 
practices.
  The conference report also includes critical increases and updates to 
the nutritional safety net for America's families. The food stamp 
program fulfills an important need for millions of people nationwide 
and, thanks to the $6.3 billion in new dollars over the next 10 years 
for this program that is included in the conference report, countless 
additional needy families in Maine will be served by this program.
  I am certain that I am not alone when I hear complaints from my State 
about the administrative difficulties and barriers inherent in Federal 
programs, and the food stamp program is certainly one that has been in 
need of simplification. The conference report allows States to simplify 
and reduce their reporting requirements, and allows States to use a 
common definition of what counts as income similar to other public 
assistance programs, and are two essential components for streamlining 
the administrative burden associated with these benefits.
  Through the last farm bill established in 1996, which is better known 
as the Freedom to Farm Act, Congress tried to establish a new system of 
price and income supports for commodities that would lead to a shift 
toward a more market-oriented agricultural policy by gradually reducing 
financial support. Unfortunately, we had no crystal ball to tell us 
that export markets and farm prices would decline. This precipitous 
situation had Congress enacting four different supplemental measures 
from 1998 through 2001 that provided an additional $23 billion in non-
disaster related farm income commodity assistance. We simply are not 
being fiscally responsible by continuing to do commodity farm bills on 
an ad hoc basis, and the conference report will hopefully prevent the 
need for ad hoc non-disaster supplementals in the future.
  For the 2002 farm bill, I strongly supported the amendment that 
passed in the Senate farm bill that capped farmers' payment limitations 
on commodity crops at $275,000 over the House version that had payments 
capped at $550,000, and I am not pleased that the limitation was raised 
in conference to $360,000 and the language was weakened on eligibility. 
I do not represent a State that raises an appreciable amount of 
commodity crops, so I cannot speak to the funding importance for those 
in the heartland of the Nation and in the South, but I do know what is 
important for my State and everywhere I look in this Farm Bill 
Conference Report in the non-commodity titles, I see funding provisions 
that will bring opportunities to every corner of the State of Maine.
  Specifically, I ask unanimous consent that a letter of support from 
the Maine Potato Board be printed in the Record, that expresses my 
feelings well about how important the increased funding for 
conservation, rural development, and the Market Access Program are to 
Maine. Part of what Don Flannery, executive director said was `` . . 
there are concerns that we all have with the bill but we also believe 
there are many direct benefits to Maine potato growers and Maine 
agriculture.''
  On balance, I would be remiss to the agricultural and conservation 
communities in Maine to dismiss this bill or to dismiss President 
Bush's commitment to U.S. agriculture to sign the 2002 farm bill into 
law. I am casting a yes vote for the rural communities and for the 
farmers of Maine who are the backbone of the State's economy.
  There being no objection, the letters was ordered to be printed in 
the Record, as follows:

                                           Maine Potato Board,

                                    Presque Isle, ME, May 8, 2002.
     Hon. Olympia J. Snowe,
     Russell Senate Office Building,
     Washington, DC.
       Dear Senator Snowe: I would like to take the opportunity to 
     express our support for the Farm Security Act of 2002 ``Farm 
     Bill''. While we understand that there are issues that remain 
     contentious and it does not include some of the programs we 
     had hoped for, the Farms Savings Account to name one, we 
     encourage support of the bill and vote for passage.
       As I stated, there are concerns that we all have with the 
     bill, but we also believe there are many direct benefits to 
     Maine potato growers and Maine agriculture. If we are to 
     develop new markets for potatoes and potatoes products, 
     export markets will need to be a major area of development. 
     The increased funding in the Market Access Program is a step 
     in the right direction and potentially will benefit the 
     potato industry in Maine. Another element of the bill that 
     will help develop export markets is the Technical Assistance 
     for Specialty Crops (TASC).
       Conservation is an area that is of the greatest concern for 
     all of agriculture, and this bill will provide an increase in 
     funding to help producers in Maine continue to implement 
     sound conservation practices. The Water Conservation Program 
     will aid agriculture in dealing with an ever increasing 
     demand for water to produce quality crops.
       The Rural Development Title includes funding under existing 
     programs that will be a benefit to the Maine potato industry 
     and Maine agriculture. To remain competitive in a world 
     market place, we must continue to develop products that meet 
     the consumer's demands. The Value-Added Agriculture Market 
     Development Program will do just that. It will allow Maine 
     producers access to funds to develop value-added agriculture 
     products to meet these demands.
       Again, I hope you will support the bill; it will have a 
     positive impact on Maine agriculture. If you should have any 
     questions or if I can provide any additional information, 
     please contact me at 207-769-5061.
           Sincerely,
                                               Donald E. Flannery,
     Executive Director.
                                  ____

                                        Department of Agriculture,


                                       Food & Rural Resources,

                                         Augusta, ME, May 6, 2002.
     Senator Olympia J. Snowe,
     Russell Senate Office Building,
     Washington, DC.
       Dear Olympia: I want to thank you for the time and effort 
     you and your staff spend ensuring the Federal programs and 
     laws work for Maine farmers. This has been especially true 
     over the past year as Congress worked on the Farm Bill.
       The Farm Security and Rural Investment Act of 2002 has some 
     flaws, primarily the lack of payment caps and the bias toward 
     growers in the south. However the legislation provides many 
     benefits to Maine agriculture.
       Whatever disappointment Maine dairy farmers may have over 
     losing the Compact has to be tempered by the provisions 
     establishing the National Dairy Program. Farmers receive a 
     monthly payment of 45 percent of the difference whenever the 
     Class 1 price falls below $16.94. It is retroactive to 
     December 2001. Our calculations show the retroactive clause 
     alone will provide our farmers payments totaling about $3 
     million.
       The bill spends $15 million annually on the Senior Farmers' 
     Market Nutrition Program. Implemented in Maine through our 
     Senior FarmShare it has proven wildly successful with both 
     farmers and seniors. This year, with funds from a combination 
     of sources, including U.S. Department of Agriculture, we are 
     providing nearly $1 million worth of locally grown fresh 
     fruit and vegetables to low-income elderly in Maine.
       Another program with direct benefits to Maine is one I know 
     you have worked on in the past, financial assistance for 
     apple producers who have suffered from low market prices. The 
     bill provides $94 million for losses in the 2000 crop year.
       The $17.1 billion in conservation funds contained in the 
     bill represents a dramatically increased commitment to the 
     environment.
       Among the highlights for Maine are $985 million for the 
     Farmland Protection Program, a 20-fold increase. Maine 
     leverages state money with funds from this Federal pot 
     through the Land for Maine's Future Program to preserve open 
     space and keep families on working farms.
       The bill sets aside $50 million, to continue conservation 
     and risk management programs authorized in the Agricultural 
     Risk Protection Act of 2000. These programs have already 
     provided money to farmers in Maine for irrigation projects 
     and organic certification. Maine is one of the 15 underserved 
     states eligible for these funds.
       For Maine farmers raising specialty crops, almost all the 
     growers in the state, the bill has a couple of benefits. It 
     substantially increases funding for the Market Access 
     Program, which subsidizes efforts to increase non-branded 
     export promotion. The bill also continues the restrictions on 
     planting fruits and vegetables on program acres, a critical

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     restriction for our potato farmers. They face unfair 
     competition from Canadian growers; they don't need it from 
     western growers who also raise program crops.
       I could continue. The list I have provided you are just the 
     highlights of the reasons I support the Farm Bill. I believe 
     it is a good improvement over the so-called Freedom to Farm. 
     The bill strengthens the safety net for all farmers, it more 
     equitably distributes federal farm dollars and it provides 
     strong incentives to improve stewardship.
       Thank you and I look forward to continue working with you 
     on issues of importance to Maine farmers.
           Sincerely,
                                                  Robert W. Spear,
     Commissioner.

                          ____________________