[Congressional Record Volume 154, Number 79 (Wednesday, May 14, 2008)]
[Senate]
[Pages S4152-S4172]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FOOD CONSERVATION, AND ENERGY ACT OF 2008--CONFERENCE REPORT
The PRESIDING OFFICER. The conference report will be stated.
The bill clerk read as follows:
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
2419), to provide for the continuation of agricultural
programs for fiscal year 2012, and for other purposes, having
met, have agreed that the House recede from its disagreement
to the amendment of the Senate and agree to the same with an
amendment, and the Senate agree to the same. Signed by a
majority of the conferees on the part of both Houses.
The conference report is printed in the proceedings of the House in
the Record of May 13, 2008.
The PRESIDING OFFICER (Ms. Cantwell). The Senator from Iowa is
recognized.
Mr. HARKIN. Madam President, here we are, finally after a long year
and a half. That is how long I have been chairman. Of course, my friend
and ranking member was chairman before that, actually started the farm
bill when he was chairman. So I guess we can say after about 2 years we
are finally here with this farm bill on the floor for final passage and
ready to send to the President.
It has been a long road to get to this point. But it has been a road
I have had good friends to travel with, good colleagues to travel with.
We have had a few bumps along the way, but through it all, we have come
here on the floor of the Senate with a strong, good farm bill, and it
came from the House today with a strong 318 votes. So the House has
passed a conference report with 318 votes this afternoon.
As I said, some people call it a farm bill. Here is the title of it:
the Food, Conservation and Energy Act of 2008. Food, Conservation, and
Energy Act. We do not have ``farm'' in it. Farm is subsumed under food
and conservation and energy, because all three of those apply to our
farmers today. So we have a bill here, a Food, Conservation, and Energy
Act, passed with bipartisan votes in the House.
We have a coalition of over 500 farm, conservation, nutrition,
consumer, and religious groups all together supporting this bill.
This is my seventh farm bill, counting my time in the House of
Representatives and my time here in the Senate. I have never seen a
farm bill in all of those years with this much broad support. As I
said, over 500 farm, conservation, religious groups, antihunger groups,
consumer groups, all are supporting this bill.
This is a food bill. Why do I say that? Because $10.4 billion of new
spending in this bill, every single penny of the new money allocated to
our committee by the Finance Committee on this side, the Ways and Means
Committee on the House side, every single penny of that $10 billion was
put into nutrition, plus another $400 million, $10.4 billion.
Now, with the changes to nutrition program included in this bill, 67
percent of all of the spending in this bill goes to nutrition; 67
percent. Then I will talk on why we call it a conservation and energy
bill in a few minutes. But let's talk about the food aspect of this.
In the last dozen years, we have seen a steady erosion of the food
safety net for our low-income families. Let me point to the standard
deduction in the Food Stamp Program. This chart indicates what has
happened. In 1996, the standard deduction--that is the deduction you
take to see if you qualify as a family to get food stamps. In 1996 it
was $134 a month. That was frozen in 1996. It has not moved since. It
remains $134 to this day for the vast majority of families. But think
of all of the increases low-income families now have to pay: higher
energy prices, higher food prices. Everything else has gone up. So you
wonder why so many people have fallen through the safety net of having
an adequate supply of food? It is because we froze it in 1996. Twelve
years later now, it has not moved. Now we have increased everything
else around here for everybody in 12 years but not for low-income
Americans. This Congress--I do not mean this Congress, but I mean all
of these Congresses--we have not met our responsibility to low-income
Americans. We finally do it in this farm bill.
If the standard deduction in 1996 of $134 had kept pace with
inflation, it would be $188 today rather than $134. Well, we could not
go as high as $188, so we went to $144. So now we have increased the
standard deduction of $144 a month. But the single most important thing
is we have indexed it for inflation in the future. No more will we have
an erosion because of inflation that hurts our lowest income families
in America. So that is the important thing. We have indexed it for the
future.
Secondly, the asset level. Under current law a family can have no
more than $2,000 in assets and still qualify for food stamps. We did
not raise it in this bill, but we indexed that also for the future. So
we have two indexes here for the future; one on the standard deduction
and one on the asset level.
For the first time ever, we exclude retirement and education savings
from counting against the asset limit. Here I give accolades to my
colleague from Georgia, Senator Chambliss. It was his intervention that
provided that low-income seniors do not have to dip into their
retirement savings to meet their food needs. If they are temporarily
out of a job, for example, but they have retirement savings, they can
still qualify for food assistance and they will not have to dip into
that savings. Again, I compliment my colleague from Georgia for
fighting hard for that.
We also did something on childcare costs. Here again is something we
have not kept up with, and it hurts our low-income families. Right now
the childcare deduction is $175 a month. It has been there since 1993.
Think about childcare costs since 1993. It has been $175 ever since
then. Right now the average cost of childcare per month is $631
average. We only allow $175 for food stamp recipients to qualify. So
there is a $456 a month gap and it is growing.
In this bill, we remove the cap. There is no longer any cap on
childcare expenses. Whatever your childcare expenses are, that is what
you can deduct from your monthly income to qualify for food stamps.
Again, we have also raised the minimum benefit by 50 percent, and we
index that to the future.
This bill also provides relief for our food banks. Our food banks in
this country provide a backstop for people who may get food stamps but
they run out before the end of the month. They do not have enough to
get their families through, so a lot of times they go to our food
banks.
Well, what has happened? What has happened is that the bonus
commodities to our food banks have gone down 75 percent since the 2002
farm bill; 75 percent. That is why we keep hearing from our food banks
that they are running out of food. They do not have enough to meet the
requirements of people who come in. They need something to get them
through the weekend, get them through a holiday, because they do not
have enough food and they do not have food stamps.
What we did is put $1.2 billion of new money into the TEFAP, the
Temporary Emergency Food Assistance Program, which provides staple
commodities to food banks. This year we have raised it. Current law
provides for $140 million annually. Here we raised it to $250 million.
As soon as this bill is passed and either signed by the President,
which I hope he will do, or we override the veto and it becomes law--as
soon as this bill becomes law, immediately $50 million will go out to
the food banks around America immediately. Then we index that for the
future. So we have indexed the TEFAP commodities for the future.
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Lastly, we know low-income Americans have the highest incidence for
diseases and illnesses, such as heart disease, obesity, diabetes, and
diseases related to diet.
A lot of that is because low-income people have a difficult choice to
make in terms of their purchases of food. Some of the healthier foods,
such as whole grains, fruits, vegetables, those types of things, are
generally higher priced. So to stretch their dollar as far as possible,
low-income people go in the grocery store and they stretch their food
dollars to get to the next paycheck. But the foods with the least
nutrition happen to be the cheapest, and it gets them through the
month.
In this bill we provide a pilot program with about $20 million to put
incentives in there for low-income Americans to see if we can give them
incentives to purchase healthier foods as part of their diet.
Lastly, I want to quote here Vicki Escarra, who is president and CEO
of America's Second Harvest. I think she summed it up all well on
behalf of all the antihunger groups.
On behalf of our nation's food banks, I urge Senators to
vote in favor of this hunger-fighting farm bill. Millions of
low income Americans are on the brink of catastrophe, facing
some of the most difficult economic times they have had to
endure in years. I urge Senators to support this vitally
important and necessary legislation.
That is why we talk about this as being a food bill, because 67
percent of the new money goes for nutrition.
This bill does not just provide food in this country for low-income
individuals, but also for poor people abroad.
There has been a lot of talk about the McGovern-Dole Program. This is
a program, of course, named after former Senators Dole and McGovern
that provides money and food for a school lunch program in other parts
of the world, in places where they have low income, a lot of hunger. It
is a good program because not only does it get a good meal to kids at
least once a day, but it is a magnet to get kids in school. In
countries where maybe 60, 70, 80 percent of your disposable income goes
for food, one nutritious meal a day to a child saves the family a lot
of money. If the place to get that food is in a school, you ought to
send your kid to school. So it does two good things. In this bill, we
provide $84 million in mandatory money for the McGovern-Dole School
Lunch Program for kids in other countries and I expect that additional
money will be provided through the appropriations process, as it has in
the past.
There is one other area that deals with food and health. That is the
specialty crop title of the bill. We have two new titles in this farm
bill, the livestock title and the specialty crop title. They have never
been in the farm bill before.
Under specialty crops, we have a 100-percent increase in the level of
farm bill spending for specialty crops programs. This is an historic
investment. The 2002 farm bill provided $1.3 billion. We provide $2.7
billion in this bill, just shy of $3 billion--a 100-percent increase in
support for fruits, vegetables, organics, farmers' markets,
horticulture--all in this farm bill. That is one of the reasons why the
120 groups that have interest in fruits, vegetables, and organics are
supporting this legislation, because of all we have provided to support
our fruit and vegetable farmers and organic farmers, who comprise the
fastest growing segment of American agriculture. We have $22 million to
help farmers who are trying to transition from conventional production
into organic. We also provide more for farmers' markets. We provide
more money for research into organics to get it up to a level where it
matches the level of organics in our food supply chain.
For those interested in organic agriculture, we have really invested
heavily in those who want to become organic farmers, those farmers'
markets where they may collect organic products, and even farmers'
markets that may not be organic but may provide locally-grown produce.
We have put money into this bill to provide support for what I would
call aggregators--an entrepreneur who understands that perhaps Whole
Foods can't go out to each individual farmer for a supply of organic
foods, so you need somebody in the middle to put all this together.
That is what we have done. We have provided funds and support in this
bill for entities that would aggregate, go out to each individual
farmer and pull the organic foods all together--it doesn't have to be
organic, it could just be locally-grown--bundle them, and then they can
sell those to Whole Foods or Safeway or Hy-Vee out in my area.
This is an opportunity to help organic producers get into the market,
also for locally-grown produce. It doesn't have to be produce. It could
be meats, poultry, beef, whatever that is local, to also get them into
the market supply as well.
The last thing I will say in terms of health and specialty crops
pertains to the fruit and vegetable snack program. This is something we
started in the 2002 farm bill.
I sort of have a history on this. In the 1996 farm bill, I introduced
amendments to get vending machines taken out of schools. As anyone can
see, I was a spectacular failure at that one. But as time went on, it
became clearer that vending machines were not the only problem. The
problem is what kids were eating in school. If we could provide
healthier foods for kids in school, we would all be better off.
Again, we know low-income kids in these schools are the first to get
diabetes and be obese and have all the problems that lead to illness
and disease later on.
In the 2002 farm bill, I tried an experiment. I put in a provision to
supply about $6 million to test a theory of mine. The theory was that
if you gave free fresh fruits and vegetables to kids in school, they
would eat them. If they would eat the fresh fruits and vegetables that
were free, they would not be eating candy and sugary snacks, cookies,
things such as that.
So we tried it. The idea behind it was not to do it in the lunchroom
but to do it in the classroom or in the hallway outside the classroom,
not just at lunch but in the morning when kids got the growlies about 9
o'clock in the morning.
The idea was to provide it as a snack when kids got hungry in the
morning or in the afternoon and not just in the lunchroom.
I have to tell you, a lot of people said to me: Harkin, you are nuts.
You are going to have kids throwing apple cores around, orange peels,
banana peels. They will be throwing grapes at each other. They are
going to make a mess.
I said: OK. Let's see what happens. It is all voluntary. No school
has to participate. If they participate and they don't like it, they
can drop out the next day. But let's see what happens.
So we took 4 States, 25 schools in a State, 100 schools, and an
Indian reservation just to see what would happen with that $6 million,
providing free fresh fruits and vegetables. What happened to my test?
Every single school says that they don't want to drop out. They want to
continue. And we don't have kids throwing apple cores around and orange
peels and things like that. These kids are eating better. They are
better behaved. Talk to any teacher who has had experience with this
program, talk to any principal, and they will tell you these kids are
better behaved. They eat better. They go home and tell their parents
about the great fruit and vegetable snacks they are getting, and then
they tell their folks to buy them at the grocery store. Those four
States have now gone to eight States. We are up to about $8 or $9
million a year now.
So because this has been so successful, this conference report has $1
billion in it to expand the Fresh Fruit and Vegetable Program
nationwide. Again, we can't do it all next year, so we ramp it up. It
has to be ramped up over several years. But in 5 years, by the time we
ramp this up, we will be at $150 million a year. And when we reach that
level, nearly every low-income elementary school kid in America who is
in a school that has a high rate of free and reduced priced lunches,
every one of those kids is going to be getting free fresh fruits and
vegetables as a snack during the day.
Think what this will do for our kids and their health. I am really
happy about this. I am happy first that the test worked. Now I am happy
that we are going to take it nationwide to every State. We are
targeting it to elementary schools, and we are asking States, since
this goes to the States, to further target it to those schools that
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have a majority of low-income kids so we can get to them first.
Again, this is helpful not only to the nutrition of our kids but also
to the specialty crops all over America because we are going to rely
upon them to grow these crops and make them available for the fruit and
vegetable snack program.
We said the second part was conservation. Let's talk about the
conservation part of this bill. On this chart, I compare the proportion
of funding going to conservation as compared to the commodity programs
in each farm bill back to 1985. The red portion is the part that goes
for conservation as compared to commodities. Why do I compare it to
commodities? Because this is the part of these farm bills that go to
farmers. The conservation share of the total of conservation and
commodity payments has never been even 20 percent. But look at 2008: 41
percent of what we are putting out to farmers is in conservation. We
have never done that before. We have never even come close to that
before.
I was proud of the 2002 farm bill. In 2002, I said we would put more
into conservation in the 2002 farm bill than ever before. That was true
in 2002. In 2008, we have more than doubled the share of conservation
that goes out, to 41 percent.
The administration said one of the reasons they wanted to veto the
farm bill was because we didn't put enough into conservation. But the
administration's own bill only put $4.2 billion into conservation, as
scored by the congressional budget office. Our bill puts $5.2 billion
into conservation, as scored by the same neutral financial accounting,
using the same assumptions. So we exceeded what the administration
asked for in total conservation spending. And what's more, we have done
it in a way that is going to clean up our soil and water, provide
incentives to farmers to be good conservationists.
In the all-important EQIP, the Environmental Quality Incentives
Program, we put in $15.8 billion over 10 years in total funding. For
the Conservation Security Program, now called the Conservation
Stewardship Program, we provided $12 billion over 10 years. Why do I
single those out? Because those are conservation programs that go to
working lands.
Most people think of conservation as taking land out of production.
In the past, that has been true. We still do some of that with the
Wetlands Reserve Program, and in the Conservation Reserve Program. For
fragile, erodible acres and wetlands, taking the land out of production
is often the best way to conserve the land, and provide vital wildlife
habitat.
But we know, because of the demand for food and the high prices of
our commodities, more and more land is coming out of the Conservation
Reserve Program. It is being tilled. It is being cropped. This is a
free country and these are voluntary programs, so if a farmer has
completed a Conservation Reserve Program contract, the land can go back
into production if the farmer chooses.
But what we can do about it is put more money into conservation on
working lands, to give incentives to farmers to be good
conservationists. One of the most important programs, I believe, is the
Conservation Stewardship Program. This is a program I included in the
2002 farm bill.
We put in place what was then called the Conservation Security
Program, an uncapped entitlement program to go to farmers to be good
conservationists on working lands, to give them the incentive to
protect the soil, the water, and the wildlife habitat.
CSP has had a little bumpy history, I will be the first to admit,
because of rules and regulations that were written and cuts to funding.
First of all, they limited enrollment only to specific watersheds,
rather than making it available to producers across the country. That
was very discriminatory. So under this bill we have revamped it. We
have made it applicable to every farmer in this country, no longer just
based on watersheds. Every farmer willing to meet the eligibility
requirements can get into this program now. The program will be
available to producers from Florida to Washington State and from New
Mexico to Maine. The program pays not for what you grow, but for how
you grow it--the environmental benefits your conservation activities
produce. We are devoting over $12 billion over 10 years to the program.
We will enroll, under this program now, about 13 million acres a year.
Now, what does this mean? It means we will be giving payments to
farmers to take care of the soil, to protect the water, provide
wildlife habitat, and to be good producers and deliver important
environmental benefits. We know we have to have the production, we have
to produce the food and the fiber in the country. But you can have both
production and a good, clean environment at the same time. They are not
mutually exclusive.
This picture I have in the Chamber shows what I mean. This is what we
ought to be about: This is a farm. A river runs through it--but the
farmer is using good conservation practices to help keep the river
clean. What you see along the river is a barrier strip of grass and
trees; barriers to stop the runoff of fertilizer or pesticides that may
be put on the land, to keep it from going into the stream. You do not
farm right up to the riverbank. The farm is using minimum tillage. And
in different fields around the farm you see different kinds of crops.
You have a crop rotation that goes on. The farmer has also planted
trees as wind breaks along the fence rows.
That is what the Conservation Stewardship Program is all about:
making sure we have good production but good stewardship of the soil,
good protection for the water, and good wildlife habitat and corridors
at the same time.
Why do we need to devote federal spending on conservation? I have a
photograph I show you in the Chamber that was taken on April 14, 1935,
now known as Black Sunday, near Liberal, KS. This terrible dust storm
rolled across Kansas. All of us in grade school have seen this picture
in our textbooks of the dust clouds rolling over Kansas in 1935.
Because what had happened? What had happened is, after World War I,
because of the demand for food around the world and here, we plowed up
everything in the plains States--lands that been unplowed for thousands
years. We plowed it up, and when the rain didn't come, it turned to
dust. People say: Well, that was 1935. Well, that was 1935, yes.
Let's take a look at another picture I have in the Chamber, taken
within a few miles of that picture you saw from 1935. Look at this. Now
we have a color picture--the same big dust clouds rolling over the
plains--taken in 2006.
Let's not make the same mistake again. That is why we have put so
much effort and so much into conservation on working lands--yes, to
make sure farmers can make a profit, they can grow the food and the
feed and the fiber we need for our people and for exports, but to do it
in an environmentally sound way, which can be done so we do not have to
have those dust bowls any longer. So we are going to have more land in
production and more need for conservation.
Lastly, on conservation, there are important needs across this
country, not just in the midwest. Here is a chart of the Chesapeake Bay
watershed. Those of us who have been around this area for any time or
who have ever been out to the Chesapeake Bay know how polluted the
Chesapeake Bay is--killing the fish, taking away a livelihood for so
many people who rely on the Chesapeake Bay; not only that, destroying
breeding grounds for many of our fish that then go back out to the
ocean.
As shown on this chart, this is the watershed that drains into the
Chesapeake Bay. It covers Virginia, West Virginia, Pennsylvania, New
York, Delaware, and Maryland--all those States. We heard from the
Congressmen and Senators and people who live in those areas saying we
have to do something to help clean up the Chesapeake Bay. And we did.
We put $438 million into this bill to help protect the uplands, to take
care of it before it gets down to the Chesapeake Bay. So we have done,
I think, yeoman's work in this area in helping to help clean up the
Chesapeake Bay.
Lastly, I said food, conservation, and energy bill--energy--energy.
Now, I have a chart in the Chamber on that. Let me say this: High
gasoline prices and diesel prices are hurting our families all over
this country. I know. I hear about it all the time from my
constituents. The prices at the pump are
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hurting people, especially in rural areas, where people have to drive a
distance to get to work.
But we have studies that show because of the supply of ethanol in
this country, the price at the gas pump is 29 cents to 40 cents a
gallon cheaper. In other words, if it were not for ethanol, the price
of gasoline at the pump would be 29 cents to 40 cents a gallon higher
than it is today.
So what we did in this bill is, we recognized a couple things. We
need more production of clean renewable energy here in America. We need
to get off the oil pipeline. But we also recognize the impact it is
having on grain. So we have put a lot in this farm bill to move us to
cellulose production, biomass production of ethanol in the future. This
bill ramps up our capacity to produce clean renewable American energy,
not only from grain, but from wood, trees, wood chips, switchgrass,
miscanthus, corn stover, wheat stover, oat stover--all kinds of things
we basically do not use today. We put over $1 billion in this bill to
move us aggressively in that direction. So we can build biorefineries,
we give support for farmers who want to grow dedicated cellulose crops
for this purpose, and we give them help in growing them, transitioning
them, storing them, and transporting them. This is a chart to show you
we can do biomass and build biorefineries, and it helps our rural
communities and helps America. There is over $1 billion in this bill to
move us in this direction.
Two last things in rural development. We have included policy in this
bill to get broadband to rural towns and communities all over America.
Second, we put $120 million in the bill that will go out right away to
reduce the backlog in water and wastewater treatment facilities in our
small towns and communities.
I come from a small town of 162 people, where I still live, where
about 25 years ago every well in my hometown--including mine--tested
unfit to drink. But we got rural water, we got clean water. In my
house, I now have clean rural water, and every house in my small town
of Cumming has that. We know what it means, and I know what it means
firsthand. So we have to get better water and wastewater for our small
towns and communities, and we have done that in this bill.
Lastly, there is a lot of talk about reform. Maybe the White House
says we did not reform enough in agriculture. We have done what the
administration asked in reforming this bill. We now have direct
attribution, so we will know from now on exactly where every dollar,
every dime goes, to whomever gets it. We did away with the three-entity
rule, and we significantly reduced the cap on adjusted gross income.
Now, I want to be clear about this. Right now if you have $2.5
million of nonfarm income, you would still qualify for farm programs--
right now. The administration wanted to reduce that to $200,000. We
reduced it to $500,000, moving it from $2.5 million to $500,000, and
put a cap on nonfarm income. That is real reform.
Second, if the majority of your income today is from farm sources,
you can have an income of $5 million, $10 million, $20 million--no
limit--and you will still get farm program payments. Under our bill, we
put a cap of $750,000 on farm income. If farm income is more than
$750,000 then no direct payments. That is real reform. It may not be as
much as some might like, but I will tell you, it is far beyond the
limits we have now.
I know some of our colleagues had to bite down pretty hard on this
because they represent farmers who have higher input costs. They have
bigger operations because they have to in order to survive. So I know
they have had to take a hit on this. But this is real reform. I commend
those members of our committee who worked with us on this to make sure
we could have these reforms and bring it here where we are today.
The last reform we put in this bill: We put in a new optional program
for farmers, an average crop revenue election program. They can stay in
the present price-based countercyclical program or they can take a
slight cut in their loan rates, in their direct payments, and then get
a revenue-based countercyclical payment if the combination of prices
and yields go down. Now, again, I do not know if farmers will take it,
but it is an option.
I know the National Corn Growers Association was very supportive of
this approach. We have it as an option. Maybe this is the future; I do
not know. But it is a reform, and we put it in there for farmers to
consider as an option.
It has been a long road. There is a lot more I could say about this
food, energy, and conservation bill. There is a lot more I know I have
not covered. But it is a strong bill. As I said the other day, it is
good for every American from my hometown of Cumming, IA, population
162, to New York City, population 8 million, and everybody in between.
That is why so many groups, over 500 groups--antihunger groups,
religious groups, conservation groups, clean energy groups--farmers
strongly support this bill.
Finally, before I yield the floor, let me thank my colleague, my
friend, my ranking member, Senator Saxby Chambliss, for all he has done
to bring this bill to the floor today. He started it when he was
chairman, having hearings all over the country, laying the groundwork
for this farm bill. I was privileged to take it over this Congress, as
chairman. But I could not have asked for a better ranking member,
someone I could work closely with. We worked together on this right to
the bitter end--I should not say ``bitter end;'' right to the good end;
we have a great bill--but right to the end to bring this bill forward.
He has worked very hard to make sure we could get to this point on this
bill. I wanted to thank him for all of his work, for his close working
relationship on this bill.
Tomorrow morning I will thank all of our staff who have worked so
hard on this bill, in particular our staff director Mark Halverson.
When this is done, I am going to make him take a vacation. He has got
to catch up on about a year's worth of sleep here in a couple weeks.
But Mark Halverson has been a great staff director in keeping this bill
going and keeping all the things together and moving it forward. I
cannot find the words to thank him enough for all he has done.
On Senator Chambliss's side, I thank Martha Scott Poindexter, who, of
course, was the staff director under Senator Chambliss, and now for him
as the ranking member, for all the great work she has done. Both she
and Mark Halverson together have worked very hard, and their staffs.
They have great staffs, and I am going to name them all tomorrow. But I
would be remiss if in my opening statement I didn't thank both of them
for their extraordinary work and extraordinary effort they have done to
get this bill to this point.
So, Madam President, I have taken way too much time. I wish to yield
the floor to a great friend and a great colleague and someone who has
helped bring us to this point of getting a great farm bill to all the
people of America, Senator Chambliss.
The PRESIDING OFFICER. The Senator from Georgia is recognized.
Mr. CHAMBLISS. Madam President, I thank my colleague from Iowa,
Senator Harkin. This truly has, under his leadership, been a very
bipartisan effort. As we will see on the floor tonight and tomorrow,
there will be some folks on both sides of the aisle who will have a lot
of good things to say about this bill. Not everybody is in agreement
with it, but we never have total agreement on farm bills. They are
always controversial. They always contain provisions that some Members
of the Senate don't like, but by and large this bill is a true
bipartisan bill. I wish to commend Senator Harkin for his leadership,
and not just on the substance of the bill. During the conference
process we went through, the Senate stayed in lockstep. All Members,
all conferees on the Senate side, Republican and Democratic, remained
loyal to the commitment we made to each other as we went through that
conference, and I think it was for that reason that we were successful
in producing a product that somewhat mirrors the product that came out
of this Senate back in December. So I thank Senator Harkin for his
leadership and for his commitment to American agriculture.
I rise tonight in support of the farm bill conference report before
us. The Food, Conservation, and Energy Act of 2008 provides certainty
to America's farmers and ranchers and restates the strong commitment of
Congress to the hungry and less fortunate. This farm
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bill contains the most significant reform of our farm programs in
recent memory, if not history, and increases investments in the areas
of nutrition, specialty crops, conservation, and renewable energy. It
is no wonder that nutrition groups, food bank organizations,
conservation and wildlife groups, commodity organizations, cattlemen
and ranchers, renewable energy advocates, and specialty crop producers
have all united in strong support of this farm bill.
This bill is simply the single most important piece of legislation
for rural America and the small American towns and communities whose
economic engines depend on agriculture. To reject this bill is to leave
billions of economic development investments on the table and accept
the faulty notion that currently high commodity prices will exist
forever. Every farmer knows there is no certainty in the honorable
practice of farming. This farm bill is our commitment to provide them
with much-needed economic assistance when times are bad and allow them
to prosper without our assistance when times are good. Our farm safety
net is targeted, fiscally responsible, and will ensure the prosperity
of our farmers and ranchers during the tough economic times that are
certainly to come.
Yes, this bill helps maintain a safety net for the farmers and
ranchers who produce the food on our dinner tables and the fiber for
the shirts on our back. I simply do not understand the critics who
raise their arms in protest because we attempt to help farmers in this
farm bill. Given the amount of investments in the many critical areas
to all Americans in this bill, it is actually inaccurate to simply call
this a farm bill. I wish to point out to the critics that less than
one-fifth of the bill's spending goes toward the production of
agricultural programs. Furthermore, all the commodity programs in the
commodity title combined account for a mere .29 percent of the entire
outlays of the Federal Government spending. That is almost one-quarter
of 1 percent. Many are attempting to paint a picture of a bloated bill
that provides huge subsidies to large farmers, but the facts present a
different picture of how the money is actually allocated. Commodity
program spending in this bill represents less than 14 percent of the
total spending, while conservation, nutrition, and renewable energy
spending account for more than 75 percent of the bill.
There is a common misperception in many editorial boardrooms, and
unfortunately at the White House, that the 2008 farm bill does not
include adequate reform of our current farm programs. This
misperception has led to a series of negative news articles accusing
our farm safety net of hindering African cotton trade, raising food
prices domestically and globally, providing payments to millionaire
farmers who abuse the system, and eroding our ability to provide food
aid to the neediest Americans and citizens of other countries. This
series of negative and inaccurate propaganda has culminated in a veto
threat from the President. I stand before this body tonight to clearly
state that this bill contains sweeping reforms of which all Americans
can be proud. Drastic reforms are included in this bill to make sure
nonfarmers do not benefit from the farm safety net. We rightfully
believe the farm safety net should be used to help those who take on an
enormous risk every year to produce the crops and livestock that
sustain the food supply of our country.
While we disagree with many of the attacks against our farm safety
net, we have nonetheless heard the calls for reform and have responded
in several meaningful ways. The traditional cotton program has been
reformed so that it is more market oriented per our WTO--World Trade
Organization--- commitments. The GSM program has been reformed to honor
our obligations under the cotton case that was decided last year. The
adjusted gross income test for nonfarmers has been reduced by 80
percent, ensuring that farm program benefits are targeted to those who
need them most. In addition, this bill eliminates the three-entity
rule, adopts direct attribution for farm program payments, and
eliminates base acres on land developed for residential use. These
accomplishments represent the most significant reform of the farm
safety net in the history of farm bills in this country.
Conservation programs are vital to the farm bill and to this Nation's
farmers, ranchers, and private forest landowners. Working land--the
cropland, grazing land, and forest land that is used to produce our
food, feed, and fiber--accounts for nearly 1.3 billion acres or two-
thirds of the Nation's land area. Since the enactment of the 2002 farm
bill, conservation measures have been applied on more than 70 million
acres of cropland and 125 million acres of grazing lands. In addition,
more than 1 million acres of wetlands have been created, restored
or enhanced.
This farm bill continues its great tradition of protecting working
lands by providing producers $4 billion in new resources for
conservation programs. In addition to providing new funding, the farm
bill also makes numerous improvements to the programs to ensure they
meet the needs of producers. One notable improvement is that the
environmental quality incentives program will now be available to
private forest landowners. It also looks to the future by helping
producers and landowners play a role and get credit for mitigating
climate change.
In the 2002 farm bill, an energy title was included for the first
time, and the Food, Conservation, and Energy Act furthers our
commitment to meeting America's energy needs with alternative forms of
energy. All Americans must cope with today's extraordinarily high gas
prices, and with this farm bill, we take the necessary steps to
alleviate the pressure not only on petroleum-based gasoline but on
corn-based ethanol. One day, Americans will be able to fill their gas
tanks with ethanol made from woodchips or peanut hulls, and when that
day comes, you can look back to this farm bill as the foundation for
making that a reality.
Speaking of energy, I have heard calls from several of my colleagues
to ensure that contracts traded on electronic exchanges, such as
natural gas contracts traded on the ICE Futures, are subject to more
regulatory oversight by the Commodities Futures Trading Commission. In
responding to those concerns, this conference report includes a long-
overdue reauthorization of the Commodities Futures Trading Commission,
complete with a newly developed regulatory structure for contracts
traded on exempt commercial markets that are determined to perform a
significant price discovery function. This has been a top priority for
Senators Feinstein, Levin, and Snowe, and I am pleased we were able to
include it in this farm bill.
This farm bill also includes a new title devoted to horticulture
organic production. With specialty crops representing approximately 50
percent of U.S. crop cash receipts, the inclusion of this title
appropriately recognizes that fruit and vegetable growers deserve a
place in major farm legislation. This industry is vitally important to
consumers, and the inclusion of these provisions will ensure that
producers of fruits and vegetables receive the support necessary to
enhance the healthy foods we have come to demand, as well as improve
the viability of this important sector of American agriculture.
However, rural America is not the only beneficiary of this farm bill.
The entire country will reap the rewards of increased investments in
nutrition, renewable energy, and conservation. This legislation reaches
out to low-income Americans to ensure nutritional needs are met by
providing schoolchildren with increased access to fresh fruits and
vegetables and enhancing our investments to the Food Stamp Program as
well as to food banks all across America. The numbers speak for
themselves: 73 percent--let me say that again--73 percent of the
spending in this bill goes toward our domestic nutrition programs.
Given rising food prices and the skyrocketing price of oil, it is
critical that we lend a hand to those citizens in both rural and urban
America who are struggling to feed their families and fill their gas
tanks.
Local food banks around the country are facing increased demands for
food from people in need. This farm bill invests an additional $1.25
billion over the next 10 years to increase commodity purchases for food
banks--an increase of nearly double the current level of funding. To
help improve the dietary intake of all citizens, this farm bill invests
significant resources to expand the school-based fresh fruit and
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vegetable snack program to all States and increases support for the
senior farmers' market nutrition program to help seniors purchase
agricultural products at farmers' markets, roadside stands, and other
community-supported agricultural programs.
Most significant, though, is the increased investment in the Food
Stamp Program. The Food Stamp Program--the cornerstone of our country's
domestic food assistance effort--currently serves 28 million Americans
each month. This program has evolved over the decades to become one of
the most efficient tools to combat hunger and reduce poverty. The Food
Stamp Program now has one of the best track records among all Federal
programs. The payment accuracy rate, which measures the correct level
of benefit issuance to participating households, is at an all-time
high. Trafficking, which long plagued the program, has been
substantially reduced. Also, the certification process has a proven
success rate with over 98 percent of food stamp participants properly
eligible for benefits. American taxpayers can be assured that the
resources dedicated to this program are effectively used for their
intended purposes.
While administration of the Food Stamp Program has turned a corner, a
stigma still exists that prevents some eligible people from seeking the
help they need. Even though the implementation of Electronic Benefit
Transfer, or EBT, has restored dignity to those who depend on food
assistance while at the grocery store, the term ``food stamps''
conjures up negative images for many. Food stamps haven't been issued
in years, and the Federal Government destroyed the remaining inventory
of stamps in 2003. For these reasons, the Food Stamp Program is being
renamed as the Supplemental Nutrition Assistance Program, or SNAP. The
new name better reflects the mission of our country's premier domestic
assistance program. Instead of referring to food stamps in the future,
the term ``food SNAP'' should be used as we transition to the new name.
This farm bill invests $8 billion in food SNAP over the next 10
years. By increasing the standard deduction and minimum monthly
benefit, food SNAP will provide improved benefit levels to help low-
income families put nutritious food on the table. To make food SNAP
more accessible to low-income Americans, this farm bill indexes the
asset limitation for inflation, exempts IRS-approved retirement and
education savings accounts from the asset test, and permits a full
deduction for childcare expenses. Simplified reporting requirements are
extended to low-income seniors to ease their ability to obtain
benefits. The improvements made in this farm bill will ensure that food
SNAP continues to improve the health and nutritional well-being of
millions of people in need.
Rural development is also a vital part of this 2008 farm bill. Rural
America is not composed of farmers and ranchers only, but other hard-
working men and women reside in these areas with their families. It is
essential our rural citizens have the same opportunity to participate
in the global economy as our friends in urban areas.
This title helps deploy fundamental services, such as improving
broadband Internet capability, funding for water and waste projects,
and support for the value-added efforts. We promote economic
development by reestablishing regional planning authorities and
encouraging communities to collaborate in their efforts to attract
quality jobs and promote local investment.
I say to my colleagues, this bill before you today is a significant
and worthwhile investment, not only for American agriculture but for
millions of needy Americans. I am disheartened that the President
doesn't find these investments worthy of his signature, but I must
represent my constituents who do understand the need for a strong
safety net for our farmers and ranchers. Rural America is certainly
enjoying a period of economic prosperity. But history tells us this
prosperity will not last forever and that it is our moral obligation to
be there to lend a helping hand when the downturn comes. We have the
opportunity today to display our unwavering commitment to the Nation's
farmers and ranchers who supply us with the safest, most affordable and
most nutritious food supply in the world. I hope my colleagues will
join me in supporting this investment in America's future by voting for
the bill.
In closing, before I turn to my good friend and colleague from New
Hampshire, I again thank Chairman Harkin for his leadership. I also see
Senator Conrad on the Senate floor. We have had a terrific working
relationship through this process. Senator Baucus and Senator Grassley
have played such an integral role in making sure this farm bill has the
resources with which to stay within the budget numbers we were given.
This has truly been a bipartisan effort in the Senate and is the
reason, or an exhibition of the reason, I came to the Senate, which is
to work together with colleagues on both sides of the aisle to pass
positive legislation and improve the quality of life for men and women
all across America.
I, too, will talk more about staff tomorrow. I would be remiss,
though, if I didn't recognize Mark Halverson, who has been such a great
asset in working on this bill and working with my staff. He traveled
around the country with us 2 years ago, and we tried to feed him a good
Nebraska steak a couple of times and made sure he was healthy while he
was on the road with us. We had a great time in listening to the
farmers and ranchers. Martha Scott Poindexter, on my side, has been the
minority director and has done such a terrific job, No. 1, of not just
shepherding this bill from our perspective and working with the
majority side, but also in putting together, without question, in my
opinion, the best staff we have ever had on our side of the aisle from
an Agriculture Committee perspective.
Mr. President, I look forward to further discussion of this bill
tomorrow, as we move ahead. I know a number of our colleagues will be
coming on the Senate floor tonight to talk about this bill. I encourage
folks on our side of the aisle, if you want to come tonight and speak,
it is a good time to do it because you can have all the time you want.
Tomorrow it will get cramped. I encourage colleagues from the minority
side to come out tonight and make their word heard.
The PRESIDING OFFICER. The majority leader is recognized.
Mr. REID. Madam President, I will just be a brief minute. I wanted to
advise the Senate what we have in store the rest of this week.
Because of the cooperation on both sides, we have 90 minutes of
debate on the farm conference report tomorrow. There could be two or
three points of order offered on that, or whatever Senators want to
offer. We will vote on those points of order after 90 minutes of debate
prior to voting on the conference report.
Following that, we received the papers from the House on the budget.
They have appointed conferees, and we also are going to appoint
conferees tomorrow. Statutorily, there are 10 hours for the ability of
any Senator to offer amendments to instruct conferees. We don't know
how many amendments there will be. Senators Conrad and Gregg have been
working on a number of issues they want to have resolved by votes in
the Senate. That will be done. We look forward to that.
We would like to finish, and we are going to finish, the budget
tomorrow. It may go into the evening, but that is fine. We have now
scheduled a cloture vote for Friday morning. I hope during all day
tomorrow Senators Gregg, Enzi, Kennedy, and others can see if there is
a way of moving forward on the collective bargaining bill. If there is,
then there would not be a need for a cloture vote. At least we need to
spend tomorrow making that decision whether that can be done.
The other thing we have to finish before we leave this week--either
tomorrow night or Friday--is the Dorgan cross-ownership issue that he
indicated would only take a very short period of time. We have to do
that. We have to complete that because it is statute, by June 3. We
have 10 hours of debate allowed on that matter. It is also a privileged
piece of legislation. Senator Dorgan said he thought, in my last
conversation with him, he would only want 1 hour out of the 10 hours.
Others will want to speak on that.
So that Senators know, that is what we have ahead of us this week. We
have a situation where there are no votes on Monday, but Tuesday we
enter into a critical stage of what needs to be done.
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We have coming from the House tomorrow, we are told, a $180 billion
supplemental appropriations bill. We are going to have to work hard on
that. It will take work. We will be getting a message from the House.
As I understand it, there will be three trees in that message they will
give us. So we will have to have at least three separate votes on what
they send us.
I look forward to working with Senators on both sides next week to
complete that. In order to do that, we have to complete all of the work
outlined a few minutes ago this week.
The PRESIDING OFFICER (Mr. Casey). The Senator from New Hampshire is
recognized.
Mr. GREGG. Mr. President, first, I appreciate my colleague for
allowing me to proceed at this time. I recognize that we are debating a
bill the conclusion of which is already foregone. The cards are dealt
and turned over, and this bill will pass. That doesn't mean it should
not be discussed and some of the weaknesses should not be pointed out.
I have severe reservations about the way we approached the commodity
side of the bill, which is, as it has been adequately represented, not
the majority of the spending bill, but it is a very significant amount
of spending, $190 billion, or somewhere in that vicinity.
Some may ask--and I guess I may have wondered from time to time--what
happened to all of those economists who worked for the Soviet Union
when it failed, who were sitting around their desks and they didn't
have a job anymore--the folks who believed in a command economy, in
top-down management, and believed in 5-year plans and believed that
supply and demand had no relationship to the market. Where did all
those people go? We now know. They went into the development of
American farm policy. It is sort of like, after World War II, you took
all of the scientists out of Germany and put them in Huntsville. At the
end of the Cold War, we took the economists out of the Soviet Union and
put them in the Midwest or maybe in the South because this bill is
structured in a world that has no relationship to the market. It
actually fundamentally undermines the concept of market and relating
productivity to demand and supply to the market.
It is also a bill that does serious damage to budgeting because it
uses $18 billion in gimmicks in order to avoid and get around pay-go
rules and other budget enforcement mechanisms. It even brings back--
amazingly enough--the Customs fees. How many times can we bring back
Customs fees? But it brings them back and claims a savings and uses
that money and spends it--$10 billion, I believe.
So at a time when the farm community in this country is doing pretty
darn well--in fact, the average farm income today is about 51 percent
higher than it has been, on average, over the last 10 years--$92
billion--real farm income is up $200 billion just in the last couple of
years. Farmers are experiencing record income. We are setting up a
subsidy structure, the purpose of which is to basically make payments
to farmers who are making a lot of money on products that are doing
very well.
Wheat is selling at $6 or $8 a bushel, and the average price has been
around $3.50. It is almost twice the average price. The same can be
said for corn--corn is higher even--barley, soybeans, and rice, which
is at three times the average price. We have commodities that are able
to compete in the market, so why do we need this massive new subsidy
structure which essentially creates this command and control attempt to
manage the markets? We don't, obviously. We don't in the context of
this time.
In addition, the bill sets up some new mechanisms that are rather
poor. It creates this new floor for emergencies. It says there will be
a $3.8 billion kitty for emergencies. We have never handled emergencies
that way. The reason is because we don't know what the emergencies are
going to be. We have always taken care of emergencies, whether it was
Katrina--which cost will be over $150 billion--or whether it was
smaller events, such as a flood somewhere or hurricanes or tornadoes.
We take care of them when we know what the cost is. We don't set up
basically a slush fund for emergencies so that the next time a post
office box blows over in some community, it is declared an emergency
and they can go get this money. This is going to incentivize an
aggressive attempt to declare everything an emergency to get at the
money that exists.
The irony is--to show how totally inconsistent this language is--they
don't even use the emergency money they have set aside in this bill for
an emergency they identify in the bill, which is the Kansas tornadoes,
which they funded in the amount of $60 million, I believe it is. It
shows this money is just going to be used for something else. If they
are going to fund a $60 million emergency in the bill, they ought to at
least have the credibility to take it out of the new slush fund. I
mean, how absurd is that? This is walking around money. That is what it
amounts to--$3.8 billion, which is real money, by the way. It would run
the State of New Hampshire for 2 years.
There is a representation that there is a major reform effort in the
area of payment to wealthy farmers. They reduce the payment level so
you don't get any payments if you have more than $750,000 of farm
income. What isn't discussed today is the $2.5 million. The fact is,
you can also have $500,000 of outside income, plus the $750,000, so
that gets you up to $1.2 million. Then, if you are married, you can
couple that up with your spouse so that she or he can have the same
amount. If it is a married farmer, and they are making $2.5 million of
income, they still qualify under this bill. So it is sort of a sleight
of hand exercise to claim there is significant reform.
In fact, this reform is insignificant compared to what is suggested.
The President's reform would have saved $1.6 billion. He suggested that
people with an adjusted gross income of over $200,000 not get these
payments.
How much does this bill save in that area, because it allows the
spouse to qualify also and it allows the extra income outside farming
to qualify? Mr. President, $286 million. That is not a lot of money
when you spread it--that is a lot of money, but when you put it over
the period of this bill, it is not a significant amount of money, and
it reflects the fact that it is not a significant reform. It simply is
not.
The bill also does nothing to limit the practice of farmers locking
in subsidy payment rates at the lowest market prices, yet retaining
their crops to sell later when the prices are much higher. As a result,
farmers are paid subsidies for losses they never had. This is what is
known as commissar politics. This is where the guys from Russia and the
Soviet Union gather and say: This worked in the Soviet Union, let's do
it here.
The concept that you pay people for losses that don't exist for a
product that is being sold that the guy gets to keep and gets to sell--
let's be reasonable about this. This is not logical, and it certainly
is not market politics. It has very little relationship to Adam Smith.
It also, ironically, at a time when we should be encouraging people
to use ethanol, continues a major discouragement for those of us who
live in the Northeast from using ethanol by extending the tariff for 2
more years, to 2010. This tariff makes no sense at all because you
cannot ship to the Northeast the ethanol that is being produced in the
Midwest, and we don't have the production capabilities in the
Northeast. We don't have the product, although the switchgrass
initiative, which I respect and say is a good initiative, hopefully can
give us that option.
The simple fact is, to maintain this tariff is to penalize uniquely
the Northeast--Pennsylvania, New England, New York, New Jersey,
everything basically in the East, not even the Northeast--in order to
protect the subsidies of product corn in the Midwest. Corn is doing
pretty darn well. It does not need the protection. In fact, if
anything, we need to figure out a way to produce other products to make
ethanol. The folks in Brazil have figured it out, so why not let us b
uy that ethanol? Why penalize us in a way that is really punitive--
punitive--for the purposes of basically protecting production which is
already at a record price? It makes no sense at all.
And then the one that really is the worst or, in my humble opinion,
the most egregious. The most egregious is the Sugar Program. The Sugar
Program was pretty bad before this bill. In
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an act of avarice that can only be called a sugar high, they managed to
make it significantly worse. I mean, how can they do that? It is very
hard to do, but they essentially locked in a price for sugar in the
United States that is double the world price. On top of that, they are
making the Federal Government buy sugar at that inflated price and then
resell it for the production of ethanol at a significant loss.
The Sugar Program makes no sense to begin with. It never made any
sense other than the fact this was a commodity that had influence in
the process of developing this bill; obviously, a disproportionate
amount of influence. To take this program, which was bad to begin with,
and make it so egregious by forcing the Federal Government and Federal
taxpayers first to have to pay twice what the world market price is for
sugar and then to have to resell it to ethanol producers at a huge
loss--how many times can you hit the taxpayers for the purpose of the
sugar production industry? It is not right.
Then, of course, there are the new programs, the asparagus payments.
I like asparagus. When we did the farm bill, I talked about the fact
that I used to grow asparagus. I love it. I did rototill my asparagus
bed, I admit to that. I destroyed our asparagus crop. I didn't get a
subsidy payment. I didn't get a disaster payment. Under this bill, I
might because there is a new asparagus program.
There is a new large chickpea program and a camelina program. I don't
even know what that is. That is, obviously, some product made somewhere
for which somebody wanted to get a subsidy.
There is the National Sheep and Goat Industry Improvement Center for
$1 million.
There is the Desert Terminal Lakes Program, which is $175 million to
lease or purchase water rights.
There is a variety of earmarks, and one I find to be most
representative of the failure of this bill as being outrageous is one
that sets up a program for farm and ranch stress assistance networks.
Do we have a stress assistance network for the family who is running a
gas station or maybe the family who opened a restaurant and they are
not doing so well or the folks who start a small shoe store somewhere?
Do we have a stress program, a farm and ranch stress program? What
qualifies farmers and ranchers for a special program dealing with
stress? The only thing that qualifies is somebody somewhere came up
with this program, got somebody's ear, and decided to stick it in this
bill because this bill was leaving the station. It does not make sense,
and it is certainly something on which tax dollars should not be spent.
We have items that arrived out of nowhere in this bill: fisheries
disaster assistance of $170 million for California, Washington, and
Oregon; forest conservation bonds. As I mentioned, I find it reasonable
that there should be relief for the tornado in Kansas, but why wouldn't
it come out of the money we just set aside in this bill for disasters,
$3.8 billion? Why wouldn't the fishery assistance, if that is an
emergency, come out of that money?
The budget gimmicks. This bill is just replete with gamesmanship to
try to get around pay-go. I refer to pay-go as ``swiss cheese-go,''
which is very appropriate in a farm bill. I assume it is subsidized.
The fact is, there is $18 billion of gimmicks in this bill. There are
sunsets of programs after 5 years that they know are not going to
sunset, so they won't be scored. There is the nonscoring still of the
milk income loss compensation issue. There is the classic shift of the
corporate tax one day so that you collect it a day earlier or a day
later, and that gives you a different score, which allows you to avoid
the pay-go rules.
If you look at this budget, it had to have pay-go waived in the
House, with $7.4 billion out of whack for pay-go in the House.
Equally ironic, tomorrow we are going to take up the conference
report on our budget, on the unified budget. If the budget that passed
the Senate earlier this year were in place now, a pay-go point of order
would lie against this bill because it violates the very budget that
was produced by the majority party and passed with some fanfare earlier
this year. The only reason we cannot make the pay-go point of order is
because the budget has not fully passed and therefore is not in effect.
But I think it is very hard to, with a straight face, say this bill
does not violate pay-go when you know that right around the corner is a
budget which was passed by the majority which, if it were in place and
which I presume it will be in place fairly soon, a pay-go point of
order would lie against this bill.
I think we can stop talking about pay-go around here as an
enforcement mechanism because it clearly does not exist, and this bill
is just another example of where it has been gamed and manipulated. We
count 15 to 20 different examples, adding up to something around $143
billion of instances where pay-go has been gamed around here. And this
bill just takes that total up a little further--not a little further, a
lot further, $18 billion further. So as a result, enforcing pay-go
becomes very--well, it is just a very fraudulent exercise. It is only
used on very rare occasions when it is politically acceptable for the
majority to use it. On other occasions, where it might lie, it is
gamed.
This bill is one of the extraordinary examples of that gamesmanship.
And, of course, I mentioned customs fees. I believe the last count is
we have used customs fees to fund 55 different programs around here in
55 different instances. The same fees. No, they are not different fees.
They are the exact same fees that have been used, I believe, 55 times
to fund different programs so the programs can claim they met the
budget rules, and this bill--maybe it is 56 or 54, but it is $10
billion of gamesmanship.
The bill has, in my opinion, decoupled economic common sense from the
farm production and especially from farm payments. If we want a farm
system that works, why don't we go to the market? A lot of these
commodities today are doing pretty doggone well, extremely well. It is
good times in farm country for most people. Why don't we let the market
continue to work? Why do we have to set up these massive subsidy
programs? Why do we have to have a sugar program that charges American
consumers twice the world rate for sugar? It makes no sense. Why do we
have to have a slush fund for emergencies when nobody else has that
sort of slush fund? Why do we have to have a new program for asparagus?
I think asparagus growers are probably pretty competitive. I don't know
who their competition is. Maybe the Chinese grow asparagus. I suspect
most asparagus growers can compete with the Chinese. I prefer American
asparagus, by the way.
Let's let the markets do this rather than create this bill which is
such a mutation of every idea that Adam Smith put forward which has
made, quite honestly, our country strong, the basis of which basically
won the Cold War, which was that free markets work, capitalism works,
competition works, the rules of supply and demand work, that you let
people produce the product that has a comparative advantage, and they
produce it better and more efficiently, especially Americans, and you
get it at a better price for the consumer, and the taxpayers don't end
up with the bill.
I know I am not going to win this battle. The way this bill is
structured, it is the classic log-rolling exercise. You pick this group
that has this interest and you give them a subsidy and they give you a
vote. Then you go over here, pick this group, they have an interest,
they get a subsidy, and you get their vote. You pick this group that
has an interest, give them a dramatic increase in their program--it all
adds up to 80 votes around here. The only problem is, the people who
pay are our kids and our consumers. This is taking a lamb chop to the
head of the American consumer and just pounding him with it. I just
thought of that.
In any event, I have a point of order which lies against this bill
which I wish to make at this time because this bill violates
innumerable points of order in spirit, and were the budget the Senator
from North Dakota brought to the floor in law at this time, passed as a
resolution at this time, it would violate them in reality also. But
there is at least one budget point of order which is a holdover from a
prior chairman which makes considerable sense, which is that you should
not run up the
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debt on the next generation by adding spending in outyears without
paying for it that this bill still violates.
Mr. President, section 203 of the 2008 budget resolution makes it out
of order to consider legislation that increases the deficit by more
than $5 billion in the Senate for any of the four 10-year periods,
starting in fiscal year 2018. The pending bill would increase the long-
term net deficit in excess of $5 billion. Therefore, I raise a point of
order under section 203 of S. Con. Res. 21 against the pending bill.
The PRESIDING OFFICER. The Senator from North Dakota.
Mr. CONRAD. Mr. President, pursuant to section 203 of the Concurrent
Resolution 21, the Concurrent Resolution on the Budget for Fiscal Year
2008, I move to waive section 203 of that concurrent resolution for
purposes of the pending conference report, and I ask for the yeas and
nays at the appropriate time.
Mr. GREGG. I thank the leaders on this bill for their courtesy on the
floor, the chairman and the ranking member. They have given me more
than a reasonable amount of time to express my thoughts. I understand I
have totally swayed them to my view and they will be joining me in my
position. I also very much appreciate the courtesy.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The yeas and nays were ordered.
The PRESIDING OFFICER. The Senator from North Dakota is recognized.
Mr. CONRAD. Mr. President, I have enjoyed immensely listening to the
description of this bill of the Senator from New Hampshire who is the
ranking member of the Budget Committee, which I chair. I have great
respect for Senator Gregg and affection for him.
The description he has given of this bill has almost no relationship
to the legislation that is before us. It is enormously entertaining but
it is largely a fiction. It is a fiction that is interesting to listen
to, but again it bears almost no relationship to the legislation before
us.
The Senator made reference to Soviet economists. Let's make clear,
the American system of food production is the most efficient, the
cheapest, the most plentiful, the most stable, the safest in the world.
Americans have less of their disposable income going for food at this
time than consumers at any time in the history of the world.
Let me repeat that. The American consumer today enjoys the lowest
cost of food in relationship to our income of any consumer in the
history of the world. That is a fact.
In fact, the Wall Street Journal published, last year, an article in
which they said--and I want to read this. I hope people will pay
attention. People need to understand how remarkable the American
agriculture system has been and is. This is what they said:
The prospect for a long boom is riveting economists because
the declining real price of grain has long been one of the
unsung forces behind the development of the global economy.
Thanks to steadily improving seeds, synthetic fertilizers and
more powerful farm equipment, the productivity of farmers in
the West and Asia has stayed so far ahead of population
growth that prices of corn and wheat, adjusted for inflation,
have dropped 75 percent and 69 percent, respectively, since
1974. Among other things, falling grain prices made food more
affordable for the world's poor, helping shrink the
percentage of the world's population that is malnourished.
That is a result of the genius of American farm policy and the
extraordinary productivity of American farmers and ranchers working
within that system.
When the Senator says this counters market economics and leads to
payments when prices are high, he obviously does not know how the farm
program works. It is the opposite of what the Senator suggested. The
way the system works is there is support from the Government when
prices are low to prevent a collapse of the productive system. When
prices are high, the support fades away. That is the way the system
works. It does not increase support at times of high prices. It is
precisely the opposite.
The Senator said the reform provisions in this bill only save less
than $300 million. Wrong. The reform provisions in this bill save close
to $3 billion, and I will specify that momentarily.
The Senator says the disaster program is a slush fund. Really? A
slush fund? Let's review the facts. In the last 3 years, every State in
the Nation has received disaster payments--none of it budgeted for,
none of it paid for. In this bill disaster assistance is budgeted for
and paid for. That is a reform and that is a fact.
One of the things I am most interested in is the Senator suggested
millionaires could still get farm program support under this bill. Yes,
and lightning strikes once in a while, too. Because that is what it
would take for a millionaire to get support under this program. I have
just gotten results from the IRS moments ago because I wanted to know,
with the new limits put in place--which, by the way, are very dramatic
reform. It used to be, under current law on nonfarmers, they had a
limit of $2.5 million of adjusted gross income before they would start
to lose farm program payments. We have reduced that for nonfarm income
to $500,000.
There is another limit for farm income. Farm income, that had no
limit in the past, now begins a limit at $750,000, at which, of that
adjusted gross income, farm income of that amount, you lose all of your
direct payments. But the two could go together. In other words, you
could have somebody with $750,000 of farm income and $500,000 of
nonfarm income, and still be under the limits. So I thought, wouldn't
it be interesting to find out how many farmers in the country would be
in that category--$750,000 of farm income and $500,000 of nonfarm
income--because that is what the press is all talking about. They add
the two together and then they double it because of a spouse. Do you
know how many are in that category in the whole United States? How many
would have $500,000 of nonfarm income and $750,000 of farm income?
Do you know how many the IRS has reported to me there are in the
entire United States? Zero. None. So much for the argument from the
Senator from New Hampshire. Facts are stubborn things.
Let's go to the essence of this bill. Why do we need support for
farmers at all? It is a legitimate question. The Senator asked why
don't we do it for the guy who has a shoe store? Why don't we do it for
the guy who has some other small business? Here is the reason. Because
we are in a world economy in which our major competitors have made a
decision to strongly support their producers--far more strongly than we
support ours.
Our major competitors in world agriculture are the Europeans. This is
how much they spend to support their producers: $134 billion. This is
after the so-called cap reform in Europe that dramatically reduced what
they do. This is where they wound up: $134 billion.
Here is where we are: $43 billion. So they are outgunning us over 3
to 1 on support to their producers over what we do for ours.
OK, I had an interviewer say to me: That is wrong. Maybe it is wrong
but it is reality. What would happen if we yanked this support out from
under our producers when our major competitors are providing three
times as much support to theirs? We did an analysis. Do you know what
we found? Here would be the result. Two words: Mass bankruptcy. Because
if your major competitors are providing three times as much support to
their producers as we provide to ours and we yank the rug out from
under ours, guess what happens: The Europeans take over world
agriculture.
Wouldn't that be great, if we became dependent on foreign food the
way we are dependent on foreign oil? That is what the critics of this
agriculture policy apparently would prefer. But those of us who have
studied it and those of us who have fought to ensure that we retain a
strong agriculture component in this country have concluded that would
be a disaster for the American economy, for American consumers, and
that would be a disaster for our farmers and ranchers.
Where does the money go in this bill? We have looked at, and just
received, a final analysis. Two-thirds of the spending in this bill
goes for nutrition--two-thirds of the money in this bill. This is the
absolute low-ball estimate of what goes for nutrition. You could do an
analysis that would take it up to as much as 73 or 74 percent. It
depends on what you include and exclude. We have
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tried to do this based on CBO analysis of the final scoring of this
bill.
Nine percent goes for conservation. Only 13.9 percent goes for
commodities, that is the support for farmers and ranchers, and about 8
percent for crop insurance. That is where the money goes.
When the other side asserts that this increases the deficit and it is
not paid for, they are making things up. They are making things up.
Because this is the score by the Congressional Budget Office. Here it
is. This is not Kent Conrad's numbers. This is not the Agriculture
Committee's numbers. These are the numbers of the Congressional Budget
Office and the Joint Committee on Taxation. They are independent. They
are professional. They are nonpartisan. They are responsible for the
scoring of all legislation before the Congress of the United States,
and here is their conclusion. Over 5 years, this bill saves $67
million. Over 10 years, it saves $110 million. So all the spending has
been offset, has been paid for. In fact, we have done a little bit
more. So the net result is to actually reduce the deficit over 5 years
by a modest amount--$67 million; over 10 years by $110 million.
But these are facts. This is not make believe. This is not make
things up. This isn't the administration saying there is $20 billion
here above the baseline--that is all made up. We are dealing with
facts. We are dealing with reality.
When I hear them make these claims that we did not address the
administration's concerns--we spent hour after hour after hour in this
conference committee, attempting to address administration concerns. I
think we did a pretty good job. The reality is the administration
changed their stated concerns so often it was hard to keep track of
what their priority was. In fact, at the end they came to us and said
they had no priority, that all of their demands were nonnegotiable,
that all of them should be treated with equal importance.
I have never negotiated with any administration on anything that came
in with a list of nonnegotiable demands and said everything had the
highest priority, but here is what we tried to do. They said we had to
limit any additional resources to $10 billion. We agreed to that. They
said it had to be offset with spending cuts. We agreed to that. They
said that the adjusted gross income limits for farmers and nonfarmers
had to be reduced significantly. We did that. They said there had to be
beneficial interest reform to avoid the kind of scandal you saw in
Katrina. We did that.
The Senator from New Hampshire said we did not, that a farmer could
simply pick the right time to market his crop and avoid the
consequences of any kind of reasonable restraint. That is not--they
have not read the bill. In the bill we give the administration special
authority in a disaster to prevent the Katrina abuse we all saw. In
addition, we added an additional reform requiring a 30-day moving
average for prices before somebody could fix their marketing loan. That
is a very significant reform. Yet it is very clear, the critics have
never bothered to read the bill.
We also were asked by the administration to provide a revenue
countercyclical program, and we did.
They asked us to provide planting flexibility. And we did. They asked
us to provide food aid flexibility. And we did. They have a series of
miscellaneous provisions we tried to honor, including limitations on
privatizing food stamps; Cuba trade provisions; out-of-lease fees. We
answered each one of those objections.
It does not stop there. Because we have heard the critics say there
is no reform, no reform in this bill. I will tell you, that is the
biggest fiction of all. That is the biggest fiction of all. Let's talk
about the reform that is in this bill.
First, significant adjusted gross income limit adjustments to
prohibit payments to Manhattan millionaires. That is in this bill. We
required payments to be attributed to living, breathing human beings
instead of paper entities. We eliminated the three-entity rule that
allowed paper entities to evade payment limits.
We cut direct payments by $300 million. We produced schedule F reform
that will save $479 million. We reformed crop insurance, saving $5.6
billion. We decreased support for corn-based ethanol, saving $1.2
billion. We prohibited payments to cowboy starter kits and ranchettes.
We reformed disaster assistance so that it is budgeted and paid for.
I might also add, we reformed disaster assistance so we would prevent
what happened in the bad old days where somebody could have a loss on
one part of their operation and gains on another part and still get a
disaster payment. That is all over. If you do not have, on your whole
farm, disaster losses, you will not get a disaster payment in the
future. That is reform.
Facts are stubborn things. In short, we have gone the extra mile to
address the administration's legitimate requests and provided reform in
this bill.
I wish to take a few minutes to address three other claims the
administration has made, because they are especially egregious and
false.
The administration's spokesman said:
At a time of record farm income, Congress decides to
further increase farm subsidy rates.
More fiction. Here is the fact. The conference proposal does not
increase subsidies at times of record farm income. To the contrary, the
conference proposal: cuts direct payments by $300 million, reduces
commodity spending by $3.5 billion, reduces the ethanol tax credit by
$1.2 billion.
The conference proposal only pays producers if prices collapse or
when there is a loss of production. I am talking now about marketing
loans. I am talking about the countercyclical program. Let me give you
an example of what they are talking about.
They say we have increased farm subsidy rates at a time of record
farm income. Let me give this example to show you how truly absurd that
statement is. Wheat prices now average about $8 a bushel. Okay. That is
what you get when you go to market. You go to sell, you get about $8 a
bushel for wheat. We increased the loan rate from $2.75 to $2.94. We
increased the loan rate from $2.75 to $2.94. We increased the target
price from $3.92 to $4.17.
Obviously, neither one of those has any application when prices are
high. The only way you would get the benefit of these safety net
proposals is if prices were to collapse. We have not increased the
support when prices are high; we have strengthened the safety net in
case prices collapse. Facts are stubborn things.
In fact, the only one--the only one--who is a party to these
negotiations who talked about increasing support when prices are high
was the administration. They proposed increasing direct payments by
$5.5 billion. Those are payments that would go out to farmers at a time
of high prices. Facts are stubborn things.
When they say there has been no reform in this bill, here is the
total spending under the farm bill compared to total Federal spending:
less than 2 percent of Federal spending, and the support for commodity
programs is one-quarter of 1 percent of the entire Federal budget; one-
quarter of 1 percent.
When we wrote the farm bill in 2002, the estimates were that
commodity programs would take three-quarters of 1 percent of all
Federal spending. So support for commodity programs has been cut by
two-thirds. That is a dramatic reform. Where did the money go? All of
the new money, the $10 billion we are above baseline here, has been
paid for by other spending cuts. All of it went to nutrition.
Now, on the disaster program--I want to end on this note--here are
the States that got disaster payments over the last 3 years. Texas
qualifies too, because it got payments. So every single State, and
Guam, plus Puerto Rico, got support under the disaster program. None of
it budgeted for, none of it paid for. In this disaster proposal, we
budget for it and we pay for it. And to have the former chairman of the
Budget Committee suggest this is a slush fund--no, no, no. What this is
is being responsible. That is what this is called, because we know
there are going to be disasters. We do not know what they are, we do
not know where they are going to occur, but we know they will occur.
Instead of leaving it out, putting it on the charge card, we budgeted
for it and paid for it. This disaster program is not only budgeted for
and paid for, it also will only go to people who
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actually have disaster losses. It also requires them to have crop
insurance.
The CBO scoring proves this will increase the use of crop insurance,
which is good for taxpayers as well as farmers.
One other thing that is very important to understand. This will
protect against cuts in conservation. Because the one time they did pay
for disaster programs, where did they take the money? They took it out
of conservation. What a shortsighted approach that was. We have
hopefully prevented that from happening again.
I am extremely proud of the product that has been produced by this
group of Senators and Congressmen on a bipartisan basis. I thank our
chairman, Chairman Harkin, for bringing a vision of change to this farm
bill. Without that vision, without his passion for it, without his
pushing for it, moving in the direction of a greater emphasis on
conservation, it would never have happened; and to our ranking member,
Senator Chambliss, who has been a strong guiding voice throughout these
deliberations. He is somebody I formed a very close working
relationship with as we wrote this bill. He has had the best interests
not only of farmers and ranchers, he has had the best interests of this
country foremost in his mind every step of the way. This country and
certainly his State owes him an enormous debt of gratitude. We thank
Senator Chambliss for the extraordinary time and effort he has put into
this bill.
To Chairman Baucus, the chairman of the Finance Committee, who has
been such a rock throughout this process, who provided strong
leadership at every step of the way, and helped provide the financing,
along with the ranking member of the Finance Committee, Senator
Grassley, who also participated in hour after hour, day after day, week
after week, of deliberations to form a bill that was responsible, and
who provided much of the push to get these reforms adopted.
Now, I recognize this does not have all of the reforms certainly the
Senator from Iowa would have liked, but we would never have gotten this
much without his pushing. Chairman Peterson, on the House side, no one
worked harder to get this result. I applaud him for the remarkable vote
in the House today. The legislation passed there 318 to 106. That is in
the face of a Presidential veto threat.
The ranking member, Congressman Goodlatte, whom I came to have great
respect for in these discussions; thoughtful, responsible, rational.
Chairman Rangel, who helped us with the funding so we could pay for
this bill without any tax increase.
Congressman Pomeroy, the only Member of the House to serve on both
Ways and Means and the House Agriculture Committee, who played such an
important role.
In the Senate we cannot forget those other Members who played such
key roles: Senator Leahy with the dairy provisions, former chairman of
the committee; Senator Stabenow, who is, in large part, responsible for
the dramatic improvement in the treatment of specialty crops that are
such an important and growing part of American agriculture; and Senator
Lincoln, Blanche Lambert Lincoln. I tell you, her constituents have got
a fighter in their corner every day. Nobody is a more aggressive
fighter for her folks than the Senator from Arkansas.
Before I end, I wanted to say a few thanks to staff as well, because
this has been an effort that has gone on well more than a year. I want
to thank my own legislative director, Tom Mahr, who played such an
important role in making this all work financially. Jim Miller, my lead
negotiator. Jim Miller has given body and soul to this effort. I am so
proud of him. He is an encyclopedia on agriculture. He is also
extremely adept with the numbers. I estimate Jim Miller has spent 3,000
hours on this effort.
I also want to recognize Scott Stofferahn, who is my other lead
negotiator, who is the father of these disaster provisions, worked with
the agriculture commissioners around the country to come up with the
provisions for this reform.
John Fuher of my staff who is a young man who came on this team and
brought his ``A'' game. Joe McGarvey, who does the energy work on my
staff. Miles Patrie, who worked on the nutrition provisions. My deepest
appreciation for their extraordinary effort. Day after day, night after
night, weekend after weekend sacrificed.
To the chairman's staff, Mark Halverson and Susan Keith, who have
spent--I would not even know how to calculate the time and effort. I do
know Mark Halverson has gone gray in the effort.
The Finance Committee staff, as well. Before I mention them, I wish
to single out the extraordinary staff of Senator Chambliss: Martha
Scott Poindexter, Vernie Hubert, Hayden Milberg. What first-class
people. These are the kinds of public servants who deserve everyone's
respect.
On the Finance Committee staff, Russ Sullivan, Cathy Koch, Rebecca
Baxter, Jon Selib, Senator Baucus's legislative director.
Senator Grassley's staff, who are outstanding as well, absolutely
outstanding: Elizabeth Paris, Kolan Davis, Mark Prater, first-rate
people who did their level best for the American people.
I can tell you, I have never been more proud to be part of an effort
than I was to be involved in this one.
I see somebody else on the floor, the former chairman of the House
Agriculture Committee, the Senator from Texas--the Senator from Kansas;
I was seeing if I could get a rise out of him--Mr. Roberts, who has
been of so much importance to this conference effort and to the effort
in the Senate Agriculture Committee as well.
I tell you, I am proud of this product. This is a bipartisan product.
This is a bipartisan effort. It is good policy and it deserves our
colleagues' support.
I yield the floor.
The PRESIDING OFFICER (Mr. Salazar). The Senator from Iowa.
Mr. GRASSLEY. Mr. President, this farm bill has been a very long
process. Last fall the Senate Agriculture Committee asked the Senate
Finance Committee to help make up a budget shortfall we faced, and the
Finance Committee on which I serve stepped up to the plate. With eight
members of the Finance Committee also being members of the Agriculture
Committee, we had a real desire to make sure rural America had the best
farm bill possible. So following on what Senator Conrad said about
fellow Senators deserving compliments for their hard work, I am only
going to single out my colleague from Iowa Senator Harkin and my
colleague from Georgia Senator Chambliss, the top two members of the
committee, thanking them for the countless hours and weekends they put
into this bill for a long period of time; for some, over a period of a
year.
This was as difficult a farm bill to write and conference as I have
ever seen. My colleagues so far have given a good overview of what this
bill contains and what it does for those who are hungry, those who are
living in rural America, and those who are still involved in family
farm operations. But I wanted to take a minute to highlight a few of
the items that were most important to me and, obviously, to my home
State of Iowa. I think I have some experience to talk about because I
still sharecrop with my son Robin.
This isn't a blanket approval of the bill. I did have some
reservations about the bill because I didn't think it went far enough
in two true farm bill areas--payment limits and competition reform.
First, the ban on packer ownership that had been a part of the Senate
bill when it passed the Senate failed in an amendment I offered in
conference committee. This is unfortunate because the livestock
industry continues to become more vertically integrated and
consolidated. I think that is bad for the independent producer. The
recent announcement, for instance, that JBS Swift plans to acquire
Smithfield Beef Group, National Beef, and Five Rivers Feedlot should be
alarming to us as legislators. I continually have to wonder if when we
get down to just one single slaughterhouse, one single packinghouse,
will the Department of Justice and Congress begin to raise questions
about the trend we have had for consolidation? This is a trend that
continues to make it more difficult for independent producers to have
choice in to whom they sell their livestock and making it more
difficult to get a fair price for their livestock as the cash market
continues to shrink. We were able to include some reforms in the
livestock title, regardless of not
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doing what I think should have been done.
The Senate version of the farm bill included my language which banned
mandatory arbitration clauses in production contracts. I drafted this
bill after hearing about problems where producers were being forced to
enter into expensive arbitration proceedings, thus giving up all their
rights to have disputes finally resolved through the independent
judiciary. While we weren't able to have the arbitration language from
my bill included, we did reform production contracts to give growers a
true choice in selecting dispute resolution, ending the practice of
forced mandatory arbitration in binding contracts. The farm bill
conference report requires that contracts provide a clear statement of
choice to producers upfront as to which track of dispute resolution
they might want to use--arbitration or the court process. It also
prohibits the integrators from pressuring growers to make one choice or
the other. Any interference with the choice would constitute a
violation of the Packers and Stockyards Act. Further, the language
states that if a grower declines arbitration upfront, that grower can
still choose arbitration at the time the dispute arises, if both
parties consent to the use of arbitration. Together these provisions
constitute significant reforms and will help level the playing field
for our growers.
Secondly, I don't think the payment limitation reform goes far
enough, and Senator Conrad recognized that in the final part of his
remarks, that that is a concern I had. He did give me credit for
pushing and pushing and pushing and bringing it to the point where it
is. I believe it doesn't go far enough. Because on this Senate floor,
we had 57 votes to reduce the cap on all three forms of commodity
payments--direct payments, countercyclical and market loan benefits,
and loan deficiency payments. But we ended up having a fight in
conference just to keep those levels of current law. That is the good
news. The bad news is we didn't go as far as what those 57 votes on the
floor of the Senate thought we should do, a hard cap of $250,000.
So what did we do in its place? Senator Conrad explained some of
this, but I wish to emphasize it because it is a lot better than if we
did what the President asked us to do today, that we not pass this
bill. There is indication it will be vetoed and that we ought to extend
the existing farm bill for 1 year or 2 years. Well, when it comes to
limitations on farm income and who can participate in the farm program
and who cannot, those limitations in present law at $2.5 million are
laughable and, quite frankly, aren't even being enforced at that level
presently. So I come to the conclusion that what we have is better than
present law, not as good as what I want but, for the first time, having
something that is fairly meaningful toward reform and limits on high-
income people benefiting from the farm program.
The adjusted gross income limit did come down substantially, so that
is a step in the right direction. For the first time, we have a cap on
farm income of $750,000. Previously, there was no cap on farm income.
It will bring a $2.5 million adjusted gross income cap on nonfarm
income down from that $2.5 million that I said is laughable and
probably not enforced, down to a $500,000 cap on nonfarm income. But
these adjusted gross income limits are still too high, frankly, as far
as I am concerned. In some parts of the country, they may not be. I
have to admit that even though I am a farmer, I may not understand
agriculture in California, Texas, and the Southeast. But I sure
understand agriculture in the States of the Plains and the Midwest. You
go to almost any farmer and tell them that we put this limit of
$500,000 in for nonfarm income or that we put in a $750,000 cap on farm
income, they are going to kind of laugh at us and wonder if we haven't
been in Washington too long.
On the other hand, negotiation around here is the art of compromise,
and so I am going to vote for this bill with these caps in it. I am
going to thank my colleagues who negotiated for going a lot further the
last few days than I ever thought they would go. Hopefully, this keeps
some people who have the ability to withstand natural disaster, to
withstand sometimes politics affecting farm income, sometimes war,
sometimes international trade issues affecting farm income, people at
this level have the ability to withstand that. Smaller and medium-size
farmers don't have that ability. That is why we have a farm program. So
there is some level of income where people ought to be able to
withstand things that are beyond their control and still be in the
business of farming.
I am asking the people in the State of Iowa to look at these caps as
being a step in the right direction, not satisfying me but still better
than present law. That is why I think it is very necessary that we get
this into law. Hopefully, down the road we can make things even better.
I happened to have the Government Accountability Office pull data for
me on how many folks are actually getting payments over these new
income limits. Honestly, there aren't a lot. The conference committee
took steps, though, in other areas of reform; for instance, in the
right direction by eliminating the three-entity rule and going to a
system of direct attribution. In this particular instance, we do away
with the legal subterfuge of where there are limits in existing law,
that people could split up into three different units and each unit get
the limits that are presently allowed. So that legal subterfuge is done
away with. Also, in the commodity title, the administration, the House,
and the Senate all recognize the importance of including revenue
protection programs for farmers. All three groups, however, took
different approaches. I am pleased that an average crop revenue program
was included in the final bill as an option for farmers and
particularly because the hard work from this comes from a lot of corn
producers in my State.
Not only that, we were able to make the program a more viable option
for producers and make it available to them in the next crop year,
2009. I am excited to see what type of participation we get in the
program and the outcome of it, so that in the next farm bill debate, we
can decide whether revenue protection works. The people who thought
this up, those of us on the committee who went with the
recommendations, have confidence in the people who thought it up. But
there is nothing like the real world of seeing whether it works. So we
have a few years to make that determination. I hope it does work.
In addition, the White House has continued to say Congress can't use
timing shifts to save money and somehow they didn't count. Well, they
do count because farmers are going to have to make a judgment in the
way they do things to accommodate. Farm program payments will come
later in the year, but they will be expected to make crop insurance
payments earlier. So in fact, these do count and will pinch the
cashflow of a lot of independent producers, whether the White House
wants to believe it or not.
All that being said, I am pleased this farm bill is making
significant investments in rural America. I would like to point out a
program that I have named the Value-Added Producer Grant Program as one
of those. It has had a bit of a facelift since I first worked on this.
I bet it has been 6 or 7 years ago. But it is targeting funds directly
to beginning farmers and to ranchers, which is critical to getting
young farmers into business. I continue to hear good things about these
dollars being invested right into rural communities, and so I am
pleased we could get some mandatory money into the program, even though
the farm bill dollars were very tight.
I have also worked to give Black farmers, African-American farmers,
applying for Farm Service Agency loans who were involved in the Pigford
v. USDA discrimination lawsuit a chance to have their claims heard.
That is why I introduced earlier in 2007 the Pigford Claims Remedy Act.
There were circumstances out of these farmers' control, and they
weren't able to get their claims filed timely. The conference report
provides that these claimants who have not had their cases determined
on the merits may, in civil action, obtain that determination. In other
words, they are going to have their day in court that they feel they
did not get with the administrative process. It is time justice was
done for these African-American farmers. Civil rights at
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the U.S. Department of Agriculture has management problems that still
need to be addressed, so I want that department to know I will be
watching over the administration of this Pigford program very
carefully.
Last year, I called for a Government Accountability Office report on
farm payments going to farmers who had already died. We even held a
hearing on this issue before the Senate Finance Committee. The Farm
Service Agency paying dead farmers was a classic example of waste,
fraud, and abuse. It is a classic example of a department not doing its
job.
Now, I am not saying there might not be legitimate reasons to keep
estates of dead people open for a few years. But there was something
wrong with people who did not report that the structure of the farming
operation had changed, that somebody had died, and continued to get
farm program payments in a dead person's name.
So the farm bill is proactive in requiring the U.S. Department of
Agriculture to check payments against taxpayers' ID numbers at the
Internal Revenue Service. I am cautiously optimistic, however. I
requested a new Government Accountability Office report, and in
preliminary briefings I have learned that the U.S. Department of
Agriculture does not even enforce the current $2.5 million AGI limits.
It makes me wonder how they are ever going to enforce the more
complicated AGI limits we have put in place.
I should also add that based on the two Government Accountability
Office reports already released, we closed a fraudulent farm loss
loophole that allows operations to evade payment limits. We also were
able to shut down the generic certificate abuse with new Commodity
Credit Corporation 1099 reporting that I had asked the Treasury
Department to do something about way back in 2001, and, quite frankly,
they have done nothing.
Another issue I often hear from constituents about is the abuse of
the rural broadband loans going into areas where service is either
already provided by other capable entities or a high percentage of
households already have service. I do not believe the Government should
be in the business of subsidizing competition. We ought to be in the
business of helping people who do not even have the service.
Thus, we were able to include in the new farm bill a requirement that
in order to be eligible for a loan, the provider needs to be applying
for an area where 25 percent of the people do not have service and
where not more than three incumbent service providers are already
located.
I want to shift gears a bit now from the Agriculture Committee's role
to my role as a member of the Senate Finance Committee. Through that
role, I was able to secure even more reforms to agricultural policy
while protecting the interests of farmers and ranchers.
When the House passed this bill with a revenue offset for the extra
agricultural spending, I raised a concern to the tax-writing
committees. By yielding several billion dollars in new revenue for new
spending, the Ways and Means Committee established, in my judgment, a
very dangerous precedent.
There is always great temptation for any committees in the Congress
that have a veracious appetite for new spending to view the Ways and
Means Committee on the other side of the Hill or the Finance Committee
in the Senate--the tax-writing committees, in other words--as some sort
of a cash register. From a fiscal disciplinary standpoint, this
pressure, if unchecked, will lead to larger and larger government and
higher and higher taxes.
The hard-working American taxpayer is the loser because revenue
offsets are diverted from the highest and best uses: tax policy and
deficit reduction. The proliferation of reserve funds in budget
resolutions under both parties--I want to say both parties; so my party
is guilty of this as well--is very clear evidence of this pressure as
well. Those reserve funds might as well be labeled as tax-and-spend
funds because the committees that request them are not likely to cut
any spending.
So I raised concerns early in the farm bill deliberation about a very
dangerous slippery slope that Congress or the tax-writing committees
might be heading for.
So I am pleased to say in the Senate process, Chairman Baucus
listened to my concerns and agreed. We made it clear that we would hold
the line, and we did hold the line. The Finance Committee marked up a
bill that took care of agricultural priorities. But where we use
Finance Committee resources, we kept the benefits and authority within
the Finance Committee.
Everyone knows the Finance Committee action made it possible for the
Agriculture Committee to move forward to spend more money than was in
the baseline. We took some of the policy pressure, then, off of the
Agriculture Committee.
The schedule and press stories bear out that basic point. We held the
line between agricultural policy in the Agriculture Committee and
agricultural policy in the Finance Committee when the farm bill was
processed on the Senate floor. Remember, that passed, I think, with 77
votes.
Now, the conference was quite a different matter. In the end, we kept
a decent but much smaller package of agricultural tax relief offsets
with agricultural tax reforms. We also split the baby, from the
jurisdictional point of view.
An extension of the Customs user fees, which is a tax-writing
committee offset, was used to offset the $10 billion in new
agricultural spending; in other words, meaning the $10 billion above
baseline. About half of that, the part dealing with the new
agricultural disaster relief trust fund, is in Finance Committee
jurisdiction. The balance is going to pay for new agricultural spending
above the budget baseline.
In my view, this was an unfortunate and troubling compromise for the
tax-writing committees. We mitigated some of the damage to the
institutional structure of the tax-writing committees, but we also at
the same time opened the door. It is a door I was glad to keep slammed
shut during the years I chaired the Finance Committee. I worry greatly
about the precedent that has been set here. Pressure will be brought to
bear in the future for more nontax-writing committee spending to be
offset with Finance Committee resources.
I sincerely worry about the effect of this precedent on the power and
resources of the two chairmen, my friends, Mr. Rangel, the chairman of
the House Ways and Means Committee, and Senator Baucus, the chairman of
the Senate Finance Committee. Other committees are loathe to cut their
spending and to reform large programs in their jurisdictions.
So the easy street for other committees is to assign their funding
problems to the tax-writing committees and to blame the tax-writing
committees for any funding problems. As my friends, the two chairmen,
know better than anyone else, the demands within the tax-writing
committees for offsets are a big challenge just to do the work the tax-
writing committees have to do.
I hope we all have learned a lesson. We should not use the tax-
writing committees' resources as an easy way out for other committees
that are reluctant to make the tough choices in the oversight and
development of programs in their jurisdiction.
There have been also some significant benefits, though, from the
Senate Finance Committee's involvement in this bill.
The farm bill also includes some customs and trade provisions that I
want to address. First, it includes a compromise on expanding our
existing trade preference program for Haiti.
This was a priority for the chairman of the House Ways and Means
Committee. In addition to expanding Haiti's trade preferences, the
compromise calls upon the President to identify any textile or apparel
producers in Haiti that fail to comply with core labor standards, as
defined in the legislation, or the labor laws of Haiti that relate to
the core labor standards.
The statement of managers accompanying the conference report states
very clearly that the Conferees recognize that the core labor standards
defined in the legislation refer to the rights as listed in the 1998
International Labor Organization Declaration on Fundamental Principles
and Rights at Work and its Follow Up.
We voted for the 1998 ILO Declaration. We respect, promote, and
realize the labor standards stated in the 1998 ILO Declaration.
Moreover, the legislation applies only with respect to labor practices
in Haiti. It does not address and cannot impact our domestic labor
practices in any way.
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Now, the legislation further calls upon the International Labor
Organization to report periodically on the compliance of individual
producers in Haiti with the core labor standards and the labor laws of
Haiti.
And the legislation directs that in identifying producers that fail
to comply with core labor standards, the President shall consider these
ILO reports. The President is free to consider any other information,
and the final decision rests entirely with the President.
Nothing in the legislation forces the President to make any
particular determination. It just says that the President shall
consider these reports.
And if the President determines that a producer in Haiti is not in
compliance and refuses to comply, the legislation directs the President
to withdraw, suspend, or limit benefits to that producer under the
trade preference program until the producer comes into compliance.
As I said at the outset of my remarks, I am not making a blanket
endorsement of the farm bill. I have my reservations. Had I written the
Haiti provisions from scratch, they would have looked very different.
But this issue was part of a broader negotiation, and compromises were
necessary if we were going to produce a final product.
The proponents compromised too. Originally they proposed requiring
the President to withdraw trade benefits solely as a consequence of the
ILO reports. That was never something I could accept. Ultimately, they
dropped that demand and agreed to defer to the President's discretion.
The compromise language that is in the bill is specific to Haiti and
responds to the unique economic and political situation in that
country. I accepted it based on that narrow context as part of an
overall compromise to conclude these negotiations.
Another issue that we addressed in the farm bill is a recent proposal
by the Customs and Border Protection agency to change the way certain
imports are valued for purposes of assessing duties.
The agency proposed eliminating its current practice of allowing
importers to base customs value on the first price paid in a series of
transactions that culminate in the importation of a product into the
United States. Customs has instead proposed a mandate that importers
must use the last transaction price.
This proposal has drawn significant concern from the business
community and in Congress, for a number of reasons. First, it appears
to counter an established practice that has been around since at least
1988. And some argue that it would lead to tariff increases of 8 to 15
percent.
Moreover, Customs doesn't collect data on the extent to which the so-
called first-sale option is used. Nor does the agency have a clear
sense of the economic impact of the proposed change. Yet the agency did
not consult Congress or the business community before proposing this
change in administrative practice.
Consequently, we included a provision that directs Customs to collect
additional data for 1 year on the usage of the first-sale option. We
further directed the International Trade Commission to submit a report
to Congress analyzing the data to be collected by Customs.
Finally, we included a sense of Congress that Customs shall not
implement any change to disallow the first-sale option prior to January
1, 2011. After that date, Customs can implement a change but only if
the agency consults with the committees of jurisdiction in Congress and
the business community, and also receives approval for such a change
from the Treasury Department.
That is because the Treasury Department retains rulemaking authority
over Customs regulations, though a portion of that authority has been
delegated to the Department of Homeland Security.
I do want to say some other things the Senate Finance Committee has
done. We create a new, temporary cellulosic biofuels production tax
credit. This provision will encourage the development of a new cutting
edge alternative biofuel industry.
Cellulosic biofuels can be produced from agricultural waste, wood
chips, switchgrass, and other nonfood feedstocks. With an abundant and
diverse source of feedstocks available, cellulosic biofuels hold
tremendous promise as a home-grown alternative to fossil-based fuels.
With cellulosic ethanol, and with the additional feedstocks from corn
stover, from wood chips, from switchgrass, and other things that have
cellulose in them, we are going to be able to move beyond just grain
being used to make ethanol.
Now, that is going to solve some problems. But one of the problems
that it is going to solve, if people will be patient, are these
demagogic statements that are going on now about the production of
ethanol bringing up the high price of food.
Ethanol is being blamed for everything right now. Ethanol is being
blamed for rice going up. We do not make ethanol out of rice. Bread
goes up. They have riots in Cairo, and corn ethanol is being blamed for
it. There is a whole conspiracy on the part of the grocery
manufacturers of America, hiring a public relations firm to put on a 6-
month crusade against ethanol. It is a scapegoat. It is intellectually
dishonest.
In 1980, the people of this country asked Congress to put some
incentives in because we ought to have renewable fuels, and ethanol was
the direction to go. The farmers of America responded by growing more
corn. Farmers invested, setting up ethanol plants. For 25 years, there
have been incentives for ethanol production. Ethanol is becoming a
major component now through renewable fuels and less dependence upon
foreign sources of oil. For 25 years, everything about ethanol has been
good, good, good, good--whether it was good for the farmers, good for
the environment, good for jobs in rural America, or good for less
dependence on foreign sources of energy.
Then, all of a sudden, corn goes up to $4 a bushel a year ago, and
then everybody gets on ethanol. It is an intellectually dishonest
attack that irritates the heck out of me, and I think we ought to band
together as we always have done. The farmers of this country responded
when the country wanted renewable fuels, and for 25 years nothing bad
was said about ethanol. Then, all of a sudden, the price of food goes
up, and ethanol gets blamed for it.
Ninety-five percent of the grain in the world is eaten; 95 percent of
the grain is eaten. Last year the farmers of America planted more acres
to corn than any year since 1944. The farmers of America produced 2.3
billion more bushels of corn last year. Only 600 million bushels of
that 2.3 billion bushels of corn went into ethanol.
The other 1.7 billion bushels are available for everything else
anybody wants to use them for, including if they want to eat the same
corn animals eat. Yet I am hearing people complain about ethanol being
the reason that rice and wheat are high priced and somehow scarce. We
have to wake up the people of this country to the fact that the farmers
of America responded when they wanted alternative energy, and that
alternative energy is not at fault.
In fact, Iowa State University has studies showing that the price of
gasoline would be 30 or 40 cents higher today if it had not been for
what ethanol is producing. We have to get over it. Maybe this new
program on biofuels from things other than grain will help calm that, I
hope, because cellulosic biofuels is still science in the making, and
scientists are telling us in 3 to 5 years it is going to be
commercially viable.
This bill, then, includes a new, temporary cellulosic biofuels
production tax credit for up to $1 per gallon, available through
December 31, 2012, as an incentive toward cellulosic ethanol, the same
way we have since 1980 on a tax incentive for ethanol from grain.
This provision is estimated to cost about $403 million over a 10-year
period of years that the tax credit is available to American investors
who are willing to take the risk of producing cellulosic ethanol.
The new cellulosic biofuels production tax credit will be funded in
part by a 2-year extension of the tariff on ethanol and reform in the
current ethanol blenders' credit, which will be reduced from 51 cents
per gallon to 45 cents per gallon on January 1, 2009, the first day the
cellulosic producers' credit will be available. One other thought that
came
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to my mind just now about an attack on ethanol. We have people who have
voted for ethanol in this Senate. Twenty-two of them have sent a letter
to the EPA saying that the mandate on ethanol ought to be lifted--the
very same Senators who have complained because we aren't doing enough
for renewable energy.
The last tax title I wish to refer to--and then, for my colleagues, I
am just about done--is the Conservation Reserve Program payments. We
have had this situation where the IRS has been taxing cash payments
that farmers receive from Conservation Reserve Program payments--CRP
payments--with the Social Security tax, the payroll tax. If you are a
farmer receiving cash payments, if you rent your land and you receive
cash payments, you obviously don't pay Social Security tax on that
money. But the IRS ruled that if you were getting cash payments on CRP,
you had to pay Social Security on it. So we take care of that problem
in this bill as well. That is something we have been working on since
1999, and I am glad to have the opportunity to correct something the
IRS has done that is an injustice to landowners who receive cash
payments.
I understand that some of my colleagues have concerns over the
extension of the ethanol tariff in the farm bill.
I would like to point out that the United States already provides
significant opportunities for countries to ship ethanol into our market
duty-free.
Numerous countries don't pay the U.S. ethanol tariff at all. Through
our free trade agreements and trade preference programs, some 73
countries currently have duty-free access to the U.S. market for
ethanol fully produced in those countries.
For all other countries, including Brazil--the world's major exporter
of ethanol--the United States provides duty-free access through a
carve-out in the Caribbean Basin Initiative.
So Brazilian ethanol exporters currently don't have to pay the U.S.
tariff.
Under the Caribbean Basin Initiative, ethanol produced in Brazil and
other countries that is merely dehydrated in a Caribbean country can
enter the United States duty-free up to 7 percent of the U.S. ethanol
market. That is very generous access.
Moreover, this duty-free access--as it captures 7 percent of U.S.
ethanol consumption--grows every year.
Yet Brazil and other countries have never come close to hitting this
7 percent cap. In fact, as of Monday, the 7 percent cap was filled only
23 percent for the year. So we are almost halfway into 2008, and
foreign ethanol exporters haven't even filled by one-quarter the
generous duty-free access that we give them.
And it isn't that the Caribbean Basin Initiative countries don't have
the capacity to dehydrate more Brazilian ethanol. They do. Current
dehydration capacity in the Caribbean Basin Initiative countries is 580
million gallons, well above the over 452 million gallon duty-free
allotment for 2008.
Brazil isn't taking full advantage of the duty-free treatment
currently available to it. I don't know why we should bend over
backwards to provide yet more duty-free access for Brazil.
This is especially the case given Brazil's stance in the Doha Round
negotiations of the World Trade Organization. Brazil is resisting
efforts to further open its market to imports of U.S. industrial goods
and services.
We shouldn't even discuss reducing or lifting the tariff until Brazil
takes full advantage of its current ability to ship ethanol duty-free
to the U.S. market.
Finally, the ethanol tariff is a revenue-raiser for the farm bill.
The cost of the new cellulosic biofuels production tax credit will be
offset, in part, by an extension of this tariff. In this way, the
ethanol tariff will help us move toward the development of a new
cutting edge alternative biofuel industry that will produce fuels from
agricultural waste, woodchips, switchgrass, and other nonfood
feedstocks.
Mr. President, I yield the floor.
The PRESIDING OFFICER. The senior Senator from Arkansas is
recognized.
Mrs. LINCOLN. Mr. President, I rise today to add my support as well
to the Food, Conservation, and Energy Act of 2008. It has been a very
long and arduous process, but I think those of us who have been
extremely engaged in this process are proud. We are proud of the hard,
bipartisan work that has gone into this bill, and we are proud of the
product. Although many of us know that none of us could get everything
we wanted in this bill, we worked hard in a bipartisan way and in a way
that was respectful to the diversity of this country to come up with a
product we could all rally around and be supportive of on behalf of
this country and the hard-working farmers out there who support this
country as well as those of us who enjoy their bounty, not to mention
the many other good components of this bill we worked hard together on,
again, in a bipartisan way to come up with a good result.
However, the finish line being in sight, it is still not quite over
yet. That is why I wish to first of all encourage my colleagues to send
a strong message to President Bush to sign this bill that supports
rural America and sets a long-term strategy for investing in those
communities across this land that provide us with the unbelievable
bounty this great Nation affords us.
This is only my third farm bill, so I have not been engaged in this
process quite as long as many of my colleagues who have already spoken.
But I have to tell my colleagues, as Senator Conrad mentioned, I feel
quite passionate about this bill because I feel quite passionate about
the farm families in this country.
I myself come from a seventh-generation Arkansas farm family, and I
have watched, as I have grown up--not just in my own family but in
families across our State--the hard-working communities that take such
a sense of pride in being Americans but, more importantly, providing
for this country and the world the safest, most abundant and affordable
supply of food and fiber anybody could.
Yes, I am sure my colleagues will be delighted when I sit down and
quiet up because I have been extremely passionate about this bill
because I believe in those people of my State. I believe in the passion
and the pride they have in who they are as Arkansans and, more
importantly, who they are as Americans.
I am proud of the work we have done, and I am proud to have fought
hard for their needs and their concerns, for the diversity they
represent in the infinite number of business operations and farm
operations that exist in this great country, enabling us as a nation to
be able to say that we can provide the most efficient and effective
production of food and fiber for the world, particularly at a time
when, as my colleague from Iowa mentioned, in places across the globe
people are fighting over food and the need for food. We have the hard-
working farm families of this country to thank for the incredible
effort of making sure we don't go through that, that we don't
experience those things.
I wish to first start by thanking the chairman of our Agriculture
Committee, Chairman Harkin, and his hard-working staff. I wish to thank
the chairman for his leadership throughout this process and, again,
although none of us got everything we wanted in this bill, his
willingness and the willingness of his staff to be consistently there
for us and to listen to the concerns we have expressed. I appreciate
all of the hard work and the many hours they have put into this.
I wish to thank not just his staff but the staff of all of the other
Members who have worked so diligently with me and my staff through this
process. We do have many perspectives in this bill from many different
regions of this country, but we do know at the end of the day how to be
respectful of one another.
I especially wish to thank the ranking member, Senator Chambliss, and
without a doubt his incredible staff, Martha Scott Poindexter and
Vernie Hubert, who have been tremendous and have put incredibly hard
work into this bill. They have been not only a great asset in the
putting together of this bill, but they have been good friends, and I
am enormously grateful.
I wish to thank Chairman Baucus for his work and the excellent work
of his staff on this very important tax title, along with his ranking
member Senator Grassley and his staff. Their efforts to secure funding
for this bill have been tremendous.
I also wish to say a special thanks to Senator Conrad and his staff.
They
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have sought to find the common ground and to bring people to the table.
They have been thoughtful. They have been understanding. They have been
tireless at making sure there was a reasonableness about our
discussions and that the facts and the figures were clear as we debated
all of these issues.
So many of the other members of the committee as well as Members of
the body who have engaged in all of these discussions have done a
tremendous job in bringing this all together.
Of course, on the House side, Chairman Peterson and Ranking Member
Goodlatte as well as Chairman Rangel have done an incredible job in
working with us, and we appreciate so much their hard work.
I would also like to add my special thanks to my own staff, Ted
Serafini and Anna Taylor, who have been an incredible support for me
and made a tremendous effort in making sure our voice from Arkansas and
the voices of the people we represent were so passionately heard with
such great expertise, as well as my former staffer Robert Holifield,
who worked very hard on this bill before he left our staff.
Those of us on the conference committee have worked hard to come up
with this bill, and we wanted it to be practical. We wanted it to be
realistic and exhibit the reforms that so many people have been asking
for. A lot of time and energy was put into the final bill, and it is a
good compromise. While it doesn't contain everything, as I said, that I
want to see or anybody else on the committee wanted to see, it does
ensure that we maintain the blessings we have here in this great
country of American agriculture.
I often say to people at home that what we should be doing up here is
not looking for legislation to be a work of art but to be a work in
progress. As many of us who have worked on many farm bills know, it is
a work in progress and continues to be--not just in what we do with
this farm bill, but, as the Senator from Iowa mentioned, we look for
making sure that the actions we have taken do not have unintended
consequences and that we pay close attention to ensure that the things
we have done do not disproportionately harm our great efforts of
production agriculture.
From day one, there was a lot of give-and-take. In the end, I think
Members and their staffs have produced a good compromise and a
compromise that respects and appreciates the diversity of our country
and certainly the great wealth and bounty of what our Nation has.
There are so many good things in this bill to be proud of, and I am.
Several of my colleagues have already touched on the increased
investment in nutrition, renewable energy, conservation, and rural
development. All of these will benefit our country greatly.
As one of the cochairs and cofounders of the Senate Hunger Caucus, I
am very proud that nutrition was a priority in this bill. This bill
commits $10.36 billion--nearly 73 percent of the bill--for nutrition to
continue the fight against hunger. Hunger is a disease we can cure. We
know how to cure it. We simply have to set it as a priority, and this
bill does.
It represents the largest amount of funding for nutrition programs in
our Nation's history. At a time when 20 million Americans are living in
poverty, it should represent certainly no less. One billion of that is
allocated for the Fresh Fruit and Vegetable Program which provides free
fresh fruits and vegetables to low-income children in our schools
nationwide. It also expands the Senior Farmers Market Program by $50
million to help them purchase fresh fruits at places like farmers
markets and roadside stands throughout the country. I am proud that the
bill aims to reduce food insecurity among our children and our elderly,
among our low income and those who are in need. This is a good part of
our bill.
This bill also provides farm families, ranchers, and small businesses
throughout the greater part of rural America with the opportunities and
the incentives to develop renewable energy sources and continue the
drive toward greater energy efficiency in this country. As we have seen
with the huge rise in gas prices this year, reducing our dependence on
foreign oil is an absolute necessity for our Nation's future security.
I see the passion in my Arkansas farmers and entrepreneurs in rural
Arkansas and across this great country for producing alternative and
renewable energy sources. They stand ready. They stand ready to take
advantage of the incentives and the call we have in this bill to lessen
our dependence on foreign oil and empower our own selves, our own
country with renewable fuels that will not only create jobs but provide
a better environment for future generations. In this bill, we have the
beginnings particularly of making sure we not only lessen our
dependence on foreign oil but we do so in a way that is good for our
environment.
I am also grateful that an important provision in this bill that I
supported will bring tax parity to the timber industry which is so
important to my State. This change will help our timber farmers and
millers remain competitive globally during tough economic times. Last
year, the downturn in the forestry industry resulted in the loss of
more than 3,000 jobs and nearly $14 million in State and local revenues
in my State of Arkansas.
Conservation is also a big part of this package. It does a tremendous
amount. As a farmer's daughter, I saw no greater conservationist than
my own father, as a farmer who took great pride in not only the land of
our farm and the future generations who would get to use that land but
also in the conservation that surrounded our farm and in our county,
because not only was it important to his livelihood and for future
generations of our family, for the expertise and his productivity on
our farm, but it also was an enhancement and an unbelievable endowment
to future generations for the wonderful pastime that so many Arkansans
enjoy. Whether it is fishing in our rivers and streams, whether it is
hunting in our forests, all of the many things we see in our State that
my children and other Arkansans enjoy, it is a true blessing to see
that conservation, and certainly it is important to our agriculture
producers and others.
The chairman, Chairman Harkin, has been a tireless advocate for
conservation programs, and we appreciate that. I am pleased that once
again he has produced a bill that is progressive in this area.
It includes a $4 billion increase in conservation programs, including
a $1.3 billion investment in the Wetlands Reserve Program, which is
very popular and productive in my State. We have the largest timber
wetlands in North America, with the White River Waterfowl Refuge, along
with the incredible lands--mostly nonproductive farmlands--that have
been put into the wetlands reserve and the wetlands program and have
contributed greatly to the environment. We have not only spotted the
ivory-billed woodpecker, but we have tremendous migratory birds--not
only the waterfowl but some of the largest areas for neotropical
migratory birds, songbirds. It is a wonderful asset for this country
and for future generations.
It ensures we are the best stewards of the land that we possibly can
be and, above all, it helps us to leave our children with the
environment they deserve.
It also includes a tax deduction to reduce the costs of implementing
recovery plans under the Endangered Species Act. I see Senator Crapo,
whom I have worked a lot with on this issue.
The current Endangered Species Act plays a crucial role in protecting
threatened endangered species and habitats and in promoting species
recovery. However, on private lands, which are relied upon by the
majority of threatened species for their survival and recovery, the
current law doesn't provide all the necessary tools we need.
This provision in the farm bill ensures that our private landowners
are given the incentives they need to protect our endangered and
threatened species and engage with State governments and the Federal
Government to protect them by making sure they can work on their land
and give the needed protections that are needed in order to protect the
habitats so we never even see these species going on the endangered
species list to begin with.
This bill also provides an additional $150 million to promote
economic growth, improve infrastructure, and create jobs in rural
America through the rural development title.
This investment will help improve access to broadband in rural
America,
[[Page S4168]]
as well as provide loans for rural hospitals, so they can provide the
best care for patients living in those rural areas.
Oftentimes, I think many of us who grow up in rural America, and who
go home regularly to rural America, wonder if inside the beltway there
are enough people still here who understand the importance of
infrastructure needs and investing in rural America--whether it is
broadband and making sure folks in rural America have an on-ramp to the
information highway that exists or whether it is just that they have
clean drinking water in those communities. It is something we can never
forget because those precious rural areas of this country will remain
out there and those people will remain out there and we have to stand
up for them.
The bill also provides serious reform while maintaining the safety
net for our family farmers so they can compete in the global
marketplace.
Throughout this process, we have heard time and time again that there
must be reform. So many of us started early in this process to see
where we could bring about the kind of reforms that were being
demanded. We have provided in this bill the most significant reform in
our Nation's history in this farm bill. The bill lowers the overall cap
on program payments from $360,000 to $105,000.
We have seen the need to address the loopholes that allow producers
to avoid the caps. So we have eliminated those loopholes most
frequently--the three-entity rule and generic certificates.
I also heard of the need for transparency, so the committee bill
added direct attribution, which will track payments directly to a
living, breathing individual producer, a farmer out there who is
putting their hard-earned time, energy, blood, sweat, and tears into
producing these agricultural products.
I advocated for reform and transparency from the very beginning
because I knew it was something people wanted to see. But I also think
we must be careful that we understand what the possible consequences of
these reforms might be.
The 2002 farm bill established a solid safety net program when yields
and prices were low.
While we have maintained the integrity of that program, the $2.5
million means testing on income limits established in that bill in 2002
were never fully enforced by this administration. The Senator from Iowa
brought up that point. It is hard to know where to go from those caps
in the 2002 bill and today's bill to increase that transparency and
increase those reforms, if we don't even know what the first limit
actually did.
That is why it does create some concern in me to hear that the
administration is saying this bill doesn't go far enough in regard to
these reforms. How do we know if it doesn't go far enough if we have
never enforced what has been on the books to begin with?
Prior to the 2002 farm bill, no means test existed for farm programs.
Now, I have to say I have concerns that all of a sudden we are going to
begin means testing farmers and producers across this country, but we
shy away and shiver in this body when means testing is talked about for
anything else.
We knew it was important to eliminate loopholes that nonfarmers used
to receive program payments, and during the 2002 farm debate, we
instituted the $2.5 million test.
In the bill that passed the Senate in December, we lowered the means-
testing cap to $750,000, which respected our regional differences and
avoided the unintended consequences that might arise in this
compromise.
Let's not forget that we also significantly reformed individual
program pay limits on top of that, which should sharply reduce benefits
to producers who remain eligible, as long as they are below that means-
testing level we have imposed. I thought the Senate bill did a good job
on that compromise and have remained hopeful that those limits, and
certainly something close to those limits, is where we can be.
During conference, we agreed to add an additional component that
factors in nonfarm income.
However, it is not enough for this administration, and they continue
to threaten a veto of this incredibly hard-fought, bipartisan
compromise. As I mentioned, I do have some concerns about means testing
because we are means testing the most efficient and effective producers
of agricultural products in the world, at a time when we are
experiencing a world food crisis, and we want to ensure that not only
will we maintain the kind of production that we have consistently but
also that we do it by setting an example in respect to clean water and
clean air and, certainly, in respect to all the other unbelievable
demands and restrictions that are placed on our farmers with respect to
the environment.
We don't know what those consequences might be, and I hope we will
keep in mind--as the Senator from Iowa mentioned--that as we move
forward in looking at this bill, thinking about how those effects may
have unbelievably unintended consequences. Again, there have been an
awful lot of fights for the means testing on our agricultural
producers, while there are so many other benefits in this country that
are not means tested. I noticed my colleagues earlier mentioning the
fact that farm income is up. But I also noticed that nobody hardly
mentioned the fact that reflects the reality of what farmers in this
country are going through in terms of the environment of skyrocketing
production costs and restrictive trade laws, which in our region of the
country are much more restrictive. Trade laws are much more restrictive
to the commodities we grow, and certainly production costs that are
much higher for capital-intensive crops.
I hope the unintended consequences of establishing payment limits and
means testing would not shift the landlord-tenant relations to cash
rent and place producers, who are working hard each day to shoulder
that risk solely of restrictive trade rules, bad weather, and
unbelievably skyrocketing input costs--I hope that is not one of the
unintended consequences that we see.
In the end, this bill is about ensuring that our family farmers can
continue to produce the world's safest, most abundant supply of food
and fiber.
Our farmers also produce their commodities the most efficiently and
effectively in the world, and they do it by keeping the cost of our
food and fiber per capita the lowest of any developed country, as
Senator Conrad mentioned.
Moreover, they do it with respect to our environment, so our children
and future generations can enjoy this unbelievable country of bounty
and beauty. They do it by following the Clean Water Act, Clean Air Act,
and so many other restrictions that we place on them in order to ensure
they are setting the example and doing the best job possible regarding
our environment.
They are excellent conservationists and stewards of the land because
they understand that if they care for the land, it will take care of
them. It is something we should never lose sight of.
I am proud of the work we have done on this bill, and I encourage my
colleagues to support the final version. No bill is ever perfect. This
one gives our family farmers the certainty they need to continue to
compete effectively in the global marketplace. It focuses on the
unbelievable needs throughout this country in nutrition, energy,
conservation, and rural development.
Again, I am proud to have worked in a bipartisan way with so many
colleagues on the Senate Ag Committee, as well as others in this body
and in the other body across the Capitol dome.
My last plea before I yield the floor is to my colleagues. It is that
we will never allow ourselves or the people of this country to take for
granted what we have been blessed with in this country. This is a great
country, and we have a lot of incredibly hard-working people. Many of
them are spread out over the rural areas. I hope we will never allow
the American people to take for granted what this bounty means to them
and, more importantly, that we in this body will never take for granted
the hard work that goes on beyond this beltway to make us the richest
country in the whole world. I hope we can continue in that same
bipartisan fashion, recognizing and respecting the incredible diversity
across this country that has blessed us for so many years.
I encourage my colleagues to support the great bipartisan product we
brought to the floor.
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I yield the floor.
The PRESIDING OFFICER. The Senator from Idaho is recognized.
Mr. CRAPO. Mr. President, I also rise today in support of the farm
bill conference report. Before my colleague, Senator Lincoln, leaves
the floor, I wish to take a few minutes to thank her for the tremendous
work she has been willing to do with me. She and I were both elected to
the House of Representatives in the same year, and we were elected to
the Senate in the same year. We have served on a lot of the same
committees, not the least of which has been the Agriculture Committee
and the Finance Committee, both of which have important parts of this
legislation.
We have had a tremendously good relationship over the years. We come
from different sides of the aisle, but we work closely together in a
bipartisan way on issue after issue. One of those very important
issues, which Senator Lincoln already mentioned, is the Endangered
Species Reform Act. I will talk about that later in my remarks.
Before she left the floor, I wished to thank her for being the lead
cosponsor on that legislation that we have worked on literally for 6 or
7 years, to make sure we build a consensus-based solution to issues in
this country that will make a difference. Again, I thank the Senator
for that. I truly appreciate the working relationship we have, and I
could not agree more with the comments she has made overall about the
farm bill and the tremendous blessing we have in this Nation to have
literally the lowest per capita cost in the world in our budgets for
the American families with regard to the dollars they must put forward
for food and fiber. At a time when people around the world are
struggling to deal with recent natural disasters and to ensure that
their families have the food they need, we need swift enactment of this
farm bill that will provide long-term certainty for farm families as
they continue to feed the world's hungry.
This is the third farm bill that I have worked on since I have been
elected to Congress. I have to say that although each bill, as we moved
through the issues of the day, presented their unique problems, this
has been the most difficult to bring together in a conference where we
could literally come together--House and Senate, Republicans and
Democrats--and propose good, solid policy for our Nation's food and
fiber. I think we have to give credit to those who have been leaders in
the Senate in making that happen: our chairman, Senator Harkin; our
ranking member, Senator Chambliss; and on the Finance Committee, which,
as I said, also has a significant piece of this legislation, our
chairman, Max Baucus; and the ranking member, Charles Grassley. There
are many others.
Now that I started mentioning Senators, I could literally go through
the members of the Agriculture Committee, both sides of the aisle, the
members of the Finance Committee, both sides of the aisle, and list
Member after Member who has worked tirelessly to make sure this policy
comes together in a farm bill we can be proud of and which will
strengthen America globally.
It is not limited to just the members of the Agriculture or Finance
Committees. This Senate is committed to making sure we develop the
kinds of policies that will keep our Nation strong and globally
competitive, and many of those policies are included in this
legislation.
In preparation for this farm bill, I held 23 farm bill listening
sessions in my State, all across Idaho, to get input from Idahoans
about what they need and what they saw important in a new farm bill. I
appreciated the input I got from my constituents and, frankly, utilized
that input in working with my fellow members on the Agriculture
Committee and Finance Committee as we crafted this legislation.
There are a number of provisions I wish to highlight tonight.
The first, which I have already mentioned, is a part of the bill that
comes in the conservation piece the Finance Committee worked so hard to
bring forward. As I think most people who followed the debate in the
battles over the farm bill over the last few months have realized, one
of the battlegrounds--in fact, the major battleground--was the effort
by the Finance Committee in the Senate to bring forward a significant
new addition to the conservation efforts in our country as we deal with
conservation policy.
One of the more important pieces of that battleground, if you will,
was the Endangered Species Reform Act. The battle was not really over
the policies; it was over the dollars because we wanted to make sure we
paid for the increased costs of what we were doing. But it was
nevertheless a very difficult time as we tried to find a path forward.
Most people who are involved in land management issues, whether they
be farmers, consumers, or people who are involved in development or
simply homeowners, realize that we have had a significant area of
conflict in this country for decades over the implementation of the
Endangered Species Act.
There is very little disagreement that we want to protect and
preserve the beautiful environmental heritage we have and the species
we have that are so rich and abundant in our country. At the same time,
we wanted to try to find a way to avoid conflict with private property
owners and with the economic activities of people in our country who
are trying to develop jobs and opportunities in the economy to provide
for themselves and their families. It is that conflict which we have
worked on in the context of the Endangered Species Act now for about,
as I say, 6 or 7 years, to try to build a solution that could be
broadly supported but which would help both species and people, the
economy, and help private property owners and those who are interested
in protecting and preserving our rich environmental heritage.
We have succeeded in the Endangered Species Reform Act. This act is
broadly supported by the environmental community because over 80
percent of the threatened or endangered species in our Nation is
located on private property. The act does not give us the ability to
reach into the private property as effectively as we need to help
implement recovery plans for species that are threatened or endangered.
This legislation does so.
At the same time, as I indicated earlier, our private property owners
have been concerned about the reach of the Endangered Species Act and
what it would do to them if an endangered species were found on their
property. This act makes it so they can actually find economic
compensation if that happens.
The core of the act is that it focuses on helping landowners on a
voluntary basis have a tax deduction for actions they undertake on
their property to help implement recovery plans, to help facilitate and
strengthen species.
This is a tremendous incentive, with the backing of the Federal
Government, for these tax deductions to encourage private property
owners to undertake activities that will tremendously benefit species
on their property. The private property owners are compensated for the
impacts on their property, the species are benefited, and everyone in
the country is a winner in terms of the improvement of the
opportunities to strengthen our endangered species protection.
This has the broad support of sportsmen organizations across this
country, of environmental organizations across the country, and of
private property groups across the country.
I am glad we were able to work our way through literally the
battlegrounds we faced in order to make sure we got this legislation
included in the final piece of the farm bill.
There is more to do. We had to work it through and adjust pieces of
it that we would rather have kept in, but we got the core of the bill
in place. And now we look forward to strengthening and improving this
important protection of the Endangered Species Act.
While she is on the floor, I thank Senator Stabenow for her
tremendous efforts in the conference to make sure we were successful in
getting this critical legislation for the endangered species and
private property owners included in the final conference report.
Specialty crop producers were also very significantly benefited by
this legislation. Speciality crop producers in Idaho and nationwide
will receive more than a $2 billion investment in programs important to
them, including $456 million for speciality crop block grants that
assist with marketing, research promotion, and other efforts to
increase the competitiveness of speciality crops.
[[Page S4170]]
Again, Senator Stabenow should be given great credit for fighting to
work with me and many others to make sure this happened.
The legislation also contains significant assistance for producers
impacted by disaster, including new assistance for aquaculture
producers who are impacted by drought or assistance for ranchers
utilizing the Federal grazing permits who are impacted by a loss of
grazing due to fire.
In addition, more than $4 billion in new spending is going to be
provided for conservation programs which enable landowners to meet the
environmental needs and goals and, frankly, in many cases mandates that
we put on them to make sure our environment is protected and preserve.
I have often said, as we talked about different farm bills, and this
one is no different--in fact, this one is probably a better example
than any we have done so far--that one of the most, I will say the most
important pieces of legislation this Congress ever works on with regard
to truly making a difference in protecting, preserving, and
strengthening our incredible environmental heritage in this country is
the farm bill because of the powerful provisions we have in the
conservation title.
This farm bill moves forward with significant strides to strengthen
and enhance the environmental and conservation goals of our country
through farm policy and private property policies.
This investment is an important step we must not forget. Farm bill
conservation programs are an example of the Federal Government
assisting with the environment in the right way with a carrot rather
than a stick. Our conservation programs have contributed significantly
to improving water and air quality and preserving and enhancing habitat
for species.
An estimated 95 percent of the world's consumers live beyond our
borders. The bill also will assist in reaching those consumers by
expanding market opportunities through the inclusion of $200 million
annually for the Market Access Program.
In addition, the bill seeks to better ensure adherence to the
softwood lumber trade commitments through inclusion of a softwood
lumber importer declaration program. I appreciate the tremendous work
that was done to include this important provision.
The legislation also continues and expands support for the Idaho
commodity producers, including our barley, dairy, pulse crop, sugar,
wheat, and wool producers. Idaho's agricultural industry is more than a
$5 billion industry and is a critical part of Idaho's economy.
The commodity title in this bill will continue to allow those farmers
to be protected and strengthened as they face incredible global
pressures and, frankly, what I consider to be anticompetitive actions
by other nations as we deal in a global agriculture market.
The legislation benefits rural America in a number of important ways.
Across the United States, rural communities struggle to access funds
necessary to comply with Federal, State, and local environmental
regulations. Through changes to SEARCH grants, small rural communities
with populations of 2,500 or less will have greater and more
streamlined access to funding to assist with water and wastewater
infrastructure projects. Let me explain what this means.
Across this country, we have requirements that our wastewater and our
drinking water be protected. In fact, often in America we talk about
the fact that we have the safest, cleanest water in the world. When you
come to America to visit, you don't have to worry about drinking the
water. When you live here, you don't have to worry about drinking the
water. The reason is because of our very strong environmental
standards.
We are proud of that, and we need to protect our water quality. But
the protection comes at a price, and often the mandates we put on
communities to assure that water quality are not able to be met by the
smaller communities because they simply don't have the economies of
scale to be able to implement the wastewater and other treatment
facilities that are necessary to enable them to comply with the
environmental mandates and keep the water quality so clear and clean.
We need to provide ways to assist these strapped rural communities as
they try to do what we all want to do, and that is make sure America
has clean, safe water. That is what these projects will do in the
SEARCH legislation.
The bill also provides $120 million in mandatory spending to be
directed at pending applications for water and wastewater disposal
grants and loans--Again, to help with the same problem.
As well in the rural areas, broadband access is a key to growth and
economic development. This farm bill simplifies the application process
for broadband assistance and ensures that broadband assistance is
targeted at communities with the least amount of access.
Improving the economic position of rural areas by stimulating the
growth of rural businesses is accomplished through reauthorization of
important programs such as the rural business opportunity grants and
the rural cooperative development grants, which will ensure the
continuation and technical assistance and training to our Nation's
rural businesses and cooperatives.
In addition, value-added producer grants are going to continue to
provide producers with the means to improve on the value of their
products through planning activities and marketing and the
reauthorization of the national rural development partnerships which
will enable individual State partnerships, such as the Idaho Rural
Partnership, to continue working to strengthen and improve life in
rural America.
The farm bill also incorporates language from the Biodiesel Education
and Expansion Act of 2007. That is S. 1791 which I introduced with
Senator Klobuchar to reauthorize the Biodiesel Education Program. This
program has been very important to the biodiesel effort in Idaho. The
University of Idaho has received about 20 percent of those funds
through a competitive grants process to help educate Government and
private owners of vehicle fleets about the benefits and technical
aspects of biodiesel fuel.
In addition, the bill includes a new temporary cellulosic biofuels
production tax credit for up to $1.01 per gallon available through
December 31, 2012.
The conference report also provides $300 million for the Bioenergy
Program which provides incentives for expanding production of advanced
biofuels made from agricultural and forestry crops and associated waste
materials, including animal manure and livestock food processing waste.
The importance of this is that we in the United States have a serious
problem in our energy policy. We can debate the many aspects of it in
other contexts. The bottom line is we are far too dependent on
petroleum in this country as a source of energy. And in the context of
petroleum, we are far too dependent on foreign sources of petroleum.
I often analogize our core need in terms of energy policy of being
one of trying to diversify our energy portfolio. We need to move into
alternative and renewable fuels, and we need to provide the support to
enable us to do the research and development to expand energy
opportunities.
One of the things this bill does in areas I already mentioned, such
as cellulosic biofuels and other efforts in that context, is to help us
do the research and to do then the thinking that goes into making sure
we move into these other types of alternative and renewable fuels.
Another important part of this legislation in that context is that we
establish a sugar-to-ethanol program which will better enable the sugar
industry to contribute to our energy independence.
There are many things we could be doing and we ought to be doing--all
of them to find the ones that will best work and will best help us to
diversify our energy economy.
The legislation also provides expanded fresh fruit and vegetable
programs, which provides domestically grown fresh fruit and vegetables
to students as healthy snacks and educates our students in every State
on the importance of eating healthy foods.
This program has already been well received as a pilot program in a
number of States, including Idaho. I am proud to continue this program
not only in Idaho but to help expand it to all States across the
country.
The bill strengthens assistance for America's food banks by providing
more than $1 billion for the next 10
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years for commodity purchasing, nearly doubling the current funding
level. Access to food banks is particularly important given the
economic hard times that we are facing with regard to high gas prices.
Also, I would like to talk a little bit more about the global
competition we face. As I indicated earlier, one of the pressures that
our producers face is anticompetitive conduct from other nations. These
are subsidies, tariffs, or nontariff barriers which are erected against
our producers.
Yes, we support our agricultural producers and, yes, we have tariffs.
I am not sure what the numbers are today, but within the last couple of
years the imbalance in those tariffs shows what I am talking about. The
average I am recalling that we have discussed over the last few years
is that the average tariff against our producers as we try to export
into other countries is around 60 percent, whereas the average that we
impose on those bringing their products into our country is more in the
neighborhood of 10 or 12 percent.
Those kinds of disparities create tremendous trade barriers to our
producers. The same is true with the level of subsidies provided to
producers in other countries that compete with our producers. One of
the critical parts of this bill is to provide that safety net or that
protection to our producers in the international contest as we seek to
make sure the trade arena globally is balanced fairly.
I know some have criticized this bill by saying it spends too much
limited Federal funding on agriculture. Let me make an important note
there. This bill has a number of titles. Agriculture commodity programs
are one of those titles. About 70 percent of the spending in this bill
goes to our nutrition programs, such as the Food Stamp Program.
Most people in America don't realize that because we often call this
the farm bill. Yet 70 percent of it goes into our nutrition programs.
What percent goes to the commodity programs? A little less than 14
percent. And those important conservation programs I talked about? They
get around 7 percent of the funding in the bill. The rest, the 8 or 9
percent that is left over, goes into the rural development part, the
titles--the energy titles and other portions of the bill that are
critically important to our national concerns, such as rural
development and energy.
When you look at this bill, it is not an ag bill or a farm bill. It
is a food and fiber bill. It is much more than that. It is a bill that
is very important, as I have said, to everything from energy policy to
rural development to our conservation efforts in this country to our
agriculture commodity programs and to our nutrition programs for those
who face hunger in this Nation. It is important to recognize that.
Also, I think it is important for us to note that some criticize this
bill for not being reform minded enough and not being strict enough on
payment limitations for the extremely wealthy who, it is claimed, get
all of the resources of the bill in that 14-percent commodity title.
However, the conference report has taken major steps forward in terms
of reform. I think those steps need to be recognized and noted.
The conference report would eliminate the triple entity rule, which
has already been talked about extensively on the Senate floor tonight,
and changes the current adjusted gross income limit from $2.5 million
to $500,000 for nonfarm and $750,000 for farm income. These are
considerable reforms that should be acknowledged and recognized.
This is a broad and diverse country, and no bill is a perfect bill
from the perspective of any individual Senator, I am sure. We have 50
States and 435 Congressional Districts and we have tremendous debates
about how we should implement policy. But this bill worked its way
through that process to develop policy and reforms that are meaningful
and significant and should not be undermined.
In conclusion, this legislation with its 15 titles covers a wide
range of important policy matters that go far beyond our traditional
farm support, as I have said. These titles include things, as I have
indicated, such as conservation, trade and food aid, nutrition, farm
credit, research, energy opportunities, crop insurance, and disaster
assistance and many more. The breadth and depth of this legislation
reaches into so many people's lives--everyone in America, not just
those in farm country--everyone in America should be paying attention
to this legislation and should be glad that we have been able to find
that agreement that has enabled us to get a conference report between
the House and Senate.
Again, I thank all my colleagues for their tremendous work in this
very difficult and lengthy process we have been going through, to make
sure we develop the right policies for our food and fiber in this
Nation, and we continue to keep America strong and on the competitive
edge in the production of food and fiber for the world.
Mr. LUGAR. Mr. President, I rise today to express my opposition to
the Food, Conservation, and Energy Act of 2008, referred to as the 2008
farm bill. The 2008 farm bill contains many worthwhile polices,
including valuable investments in conservation and nutrition programs.
However, it fails to provide meaningful crop subsidy program reforms
that most Americans would support.
This farm bill continues a set of antiquated programs that send a
majority of payments only to farmers earning over $200,000 a year. It
exceeds the budget allocation by $10-$20 billion through the use of tax
policies and budgetary sleights of hand. The perception of being within
the budget limit is not reality.
While it is true that subsidies are only part of the overall bill,
Congress should not accept these outmoded policies in order to move
along other priorities. The fiscal, food and trade policy costs are too
great and too damaging.
This farm bill continues the ``three-legged stool'' of a ``farm
safety net'' that targets mostly corn, soybean, wheat, rice, and cotton
farmers. The first leg is the practice of sending $20 billion in direct
payments to only 43 percent of U.S. farms. Of those, only 8 percent
receive 58 percent of the payments. These payments have nothing to do
with markets, disasters, or need, and they have been ruled to violate
trade agreements. This farm bill reduces these payments by a miniscule
2 percent. Farmers, who had received an average $94 per acre for a
history of growing rice, would still receive $92.40 under this farm
bill.
Second, the farm bill continues counter-cyclical payments that are
made when prices go down. Third, these targeted farmers may also
receive unlimited marketing loan payments--farmers do not need to repay
government loans if prices fall below a targeted rate. Additionally,
this farm bill retains a government administered supply and demand
program that keeps sugar prices for consumers well above world market
prices.
Farm bill conferees added yet a fourth leg to the farm subsidy stool
by creating a new $4 billion standing disaster program to cover losses
due to droughts and floods. The idea of a permanent disaster program
may have merit, especially when you consider that Congress has passed
legislation to fund ad hoc disaster payment assistance nearly every
year for the last 20 years. But we should ask ourselves, if the current
expensive farm bill is failing to provide a safety net to farmers when
these devastating events do happen, then what is the purpose of the
farm bill? Why do we need a new program administered by a separate
Federal agency to fulfill what most Americans believe is the core
purpose of the legislation before us? We should fix the root problem,
namely that the current subsidy system does not work and wastes
taxpayer dollars.
Trade distortion is yet another major problem with the bill. In 2004,
Brazil won a World Trade Organization, WTO, case against U.S. cotton
programs based on the trade distorting nature of direct payments,
countercyclical payments, and marketing loan payments. Similar cases
against other commodities are now being deliberated. Surprisingly,
instead of fixing the programs to shield U.S. farmers from these
challenges, this farm bill continues these programs and provocatively
increases the subsidy rates.
How, in good faith, can we ask other governments to join us in
trading partnerships, or to abide by fair trade agreements, when this
Congress blatantly ignores our own commitments? Some Senators may
wonder why we
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should be concerned about violating WTO commitments. They might think
that this is simply limited to agriculture or specific crops with
little impact on our overall economy. Others might even suggest that we
are better off building up more barriers to trade; that this farm bill
is about American farmers not farmers in Brazil or elsewhere. However,
if Senators look further down the line they will see that our WTO
violations could cost the United States billions in revenue,
intellectual property, and lost trade opportunities. Failure to move
toward compliance will invite retaliatory tariffs that legally can be
directed at any U.S. industry.
It could be argued that flaunting these commitments would be
justified in order to save the U.S. farming sector from sure ruin.
However, that would ignore the realities of our current farm economy
and the actual structure of these farm programs. Thanks to strong
foreign and domestic demand, net farm income for 2007 was nearly $89
billion, up $30 billion from 2006 and $30 billion above the average for
the previous 10 years, setting a new farm income record. Estimates for
2008 project net farm income to top $92 billion. As a result, average
farm household income is projected to be almost $89,000 in 2008, up 9
percent from 2006, and well above average U.S. household income of
$67,000.
We need a new farm bill that ensures a stable farm economy and a
healthy food supply. I do not believe our Nation is best served by this
farm bill that continues to make payments that defy common sense, snubs
our trading partners, and balloons taxpayer spending. Last year I
joined Senator Frank Lautenberg and others in offering a farm bill
alternative that received 37 votes on the Senate floor. It would have
provided all farmers with a more equitable ``safety net,'' as well as
greater investment in conservation, rural energy projects, and
nutrition.
Under the proposal, farmers, for the first time, would receive--at no
cost to them--either expanded county-based crop insurance policies that
would cover 85 percent of expected crop revenue, or 80 percent of a
farm's five year average adjusted gross revenue. These subsidized
insurance tools already exist, but our reforms would have made them
more effective and universally used, while controlling administrative
costs. Farmers would also be able to purchase insurance to cover the
remainder of their revenue and yields. In addition, the amendment would
have created optional risk management accounts that would be available
to every farmer and rancher and provide incentives for them to put away
money in good years to cover lean years. Our program would be available
to all farmers in the country--regardless of products--and not just a
select few corn, soybean, wheat, rice, and cotton farmers.
Using the savings from this approach could fund important expansion
in conservation, nutrition, energy, and research programs. In fact, the
approach made more significant investments within the Federal budget in
these areas than the farm bill before us and even found savings to help
pay down our Nation's budget deficit, which this year is approaching
$400 billion.
I will vote against the farm bill conference report and support a
presidential veto of the bill. I further suggest that the Lugar-
Lautenberg FRESH Act remains a reform option, a constructive
alternative that will save taxpayers billions, provide a generous
safety net, and allow for funding of farm, nutrition, bioenergy,
conservation, and rural development programs without budget-breaking
gimmicks.
Mr. DOMENICI. Mr. President, every morning thousands of Americans
wake up to a bowl of Wheaties, the vast majority of whom have never
asked where their Wheaties come from. I submit to you that the farm
bill is the primary factor responsible for providing America with safe,
healthy, and affordable food and fiber, including Wheaties. What we are
debating today is of paramount importance to each and every American.
If you look at the title of this bill, the Food, Conservation, and
Energy Act of 2008, you will not see the word agriculture. This begs
the question, What does this bill really mean to agriculture and the
American farmer and rancher?
By way of example, I have been contacted by the Dairy Producers of
New Mexico which told me that the farm bill does not, on the whole,
help rural New Mexico. Rather its policies have short-term and long-
term implications that can harm my State. The primary source of
economic activity in rural New Mexico today is dairy farming. There are
approximately 172 dairy farms with approximately 4,221 direct employees
and 17,150 indirect employees. These local operations contribute $1.02
billion direct dollars to the economy and $2.6 billion indirect dollars
to the economy. The farm bill undermines the economic stability that
the dairy industry plays a large role in creating.
The dairy title subsidizes dairy farmers who compete with New Mexico
dairymen. Under the farm bill, the ``MILC'' program not only funds milk
produced in other regions of the country, at rates higher than New
Mexico, it increases those payments. The new bill ensures that the
amount of those payments will rise when feed prices go up. This is
despite the fact that virtually all of the grain used by producers
outside New Mexico is raised by them and they are insulated from much
of that price inflation. New Mexico's farmers purchase their feed but
receive only partial payments. In short, the Dairy Price Support
Program provides no support at all.
I applaud the efforts that were made in this bill to address
nutrition concerns, provide for broader flexibility for specialty crop
growers, and assist rural communities. However, it does not appear to
me that enough progress has been made toward conservation programs and
other reform initiatives. Moreover, while the bill does continue the
peanut handling benefits it does not continue the peanut storage
provisions contained in the 2002 farm bill. This alone will cost New
Mexico peanut growers up to an additional $50 to $60 per ton, which
represents at least $74 million to peanut producers in my State. I am
not convinced that this is the best we can do for the people who feed
our Nation and I am left wondering if this farm bill is already out of
date before it is even law.
The Congressional Budget Office tells us that this bill will cost
$307 billion over the next 5 years and almost double that figure over
10 years, which is cause for concern in and of itself.
Ultimately, I am unwilling to support a measure that is
counterproductive to the most important agriculture component in New
Mexico, our dairy industry. Instead of enacting policies that will
encourage stability and continued growth of dairies in States like New
Mexico, the conference report before us today says our farm policy
should be to erect unreasonable hurdles and obstacles for many dairies.
I intend to vote against this bill and I urge my colleagues to do the
same.
Mr. HARKIN. Mr. President, I certify that the information required by
Senate rule XLIV, related to congressionally directed spending, has
been identified in the conference report to accompany the Food
Conservation and Energy Act of 2008, numbered H.R. 2419, filed on May
12, 2008, and that the required information has been available on a
publicly accessible congressional Web site at least 48 hours before a
vote on the pending conference report.
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