[Congressional Record Volume 148, Number 108 (Thursday, August 1, 2002)]
[Senate]
[Pages S7860-S7861]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     LIVESTOCK DISASTER LEGISLATION

  Mr. GRASSLEY. Mr. President, during the conference on the farm bill, 
the conferees threw out my bipartisan amendment on reasonable payment 
limits. I was extremely disappointed

[[Page S7861]]

the provision was dropped. Reasonable, legitimate payment limits were a 
top priority to Iowa's family farmers. It is important to the farmers 
of Iowa that we fix this shortcoming of the new farm bill.
  American's recognize the importance of the family farmer to our 
Nation, and the need to provide any adequate safety net for family 
farmers. In recent years, however, assistance to farmers has come under 
increasing scrutiny.
  Critics of farm payments have argued that the largest corporate farms 
reap most of the benefits of these payments. The reality is, 60 percent 
of the payments have gone to only 10 percent of our Nation's farmers.
  What's more, the payments that have been designed to benefit small 
and medium-sized family famers have contributed to their own demise. 
Unlimited farm payments have placed upward pressure on land prices and 
have contributed to overproduction and lower commodity prices, driving 
many families off the farm.
  The new farm bill fails to address the use of generic commodity 
certificates which allow large farming entities to circumvent payment 
limitations. The supposed ``reform'' in the farm bill is worthless due 
to the lack of generic certificate reform. In recent years, we have 
heard news reports about large corporate farms receiving millions of 
dollars in payments through the use of generic certificates. Generic 
certificates do not benefit family farmers but allow the largest 
farmers to receive unlimited payments.
  Legitimate, reasonable payment limits are critical to family farmers 
in Iowa. I feel strongly the farm bill failed Iowa's farmers when it 
failed to effectively address the issue of payment limitations. 
Hopefully, the proposal I am introducing with Senator Enzi and Senator 
Hagel will help to restore public respectability for Federal farm 
assistance by targeting this assistance to those who need it the most, 
while providing the much needed disaster assistance for livestock 
producers.
  This new proposal allow for a total of $35,000 for direct payments, 
$65,000 for counter-cyclinal payments, $150,000 for LDP/MLA payments, 
and $30,000 over the LDP limit for generic certificates.
  This new proposal allows for a total of $35,000 for direct payments, 
$65,000 for counter-cyclical payments, $150,000 for LDP/MLA payments, 
and $30,000 over the LDP limit for generic certificates.
  This new farm bill establishes an $80,000 limitation on direct 
payments, $130,000 on counter-cyclical payments, $150,000 on LDP/MLA 
payments, and no limitation on generic certificates.
  The grand total for the new farm bill payments is $360,000 with 
unlimited payments through the use of generic certificates. The 
cumulative payment limit under the Enzi-Grassley legislation is 
$250,000 plus $30,000 for generic certificates.
  There is no ``active participation'' requirement in this proposal, as 
compared to my farm bill payment limit proposal.
  This legislation does not eliminate the three entity rule, but it 
does eliminate the need for multiple entities by allowing farmers who 
choose not to participate in multiple entities to participate at an 
equal level as those that choose to receive the same benefits from up 
to three entities.
  This legislation finally establishes tangible transparency regarding 
the fourth payment that only the largest farming entities utilize. That 
payment is the generic commodity certificate payment.
  While I believe generic certificates should be eliminated, I 
understand the importance in developing a fourth payment limitation so 
that my colleagues realize there is another payment. Currently, generic 
certificates are an endless stream of funding only limited by the 
maximum extent of commodity production by the entity receiving 
payments.
  This legislation would help offset the cost of the much needed 
livestock disaster assistance and help small and medium-size producers 
nationwide who are tired of the Government subsidizing large farm 
entities which drive land rent expenses to unreasonable margins due to 
economics of scale.

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