[Congressional Record Volume 163, Number 75 (Tuesday, May 2, 2017)]
[Senate]
[Pages S2667-S2668]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Agriculture
Mr. THUNE. Mr. President, the past 8 years have been tough on
Americans. Despite the fact that the recession officially ended in June
of 2009, the economy never really rebounded. President Obama presided
over the weakest economic recovery in 60 years. His Presidency was
characterized by poor economic growth, a dearth of jobs and
opportunities, and almost nonexistent wage increases.
In 2016, the economy grew at a dismal 1.6 percent, far below the
level of growth displayed by a healthy economy. Typically 3 to 3\1/2\
percent is the average, going back to World War II. The GDP report for
the first quarter of this year underscored the need to implement the
kind of pro-growth policies that were lacking during the Obama years.
Republicans in Congress and the White House have already acted to
repeal a number of burdensome Obama regulations that were foisted onto
the American people near the end of his Presidency. We plan to keep up
our efforts.
Getting rid of unnecessary regulations will go a long way toward
freeing up businesses to grow and create jobs and put more money in
Americans pockets. Of course, repealing burdensome regulations is just
one of the things we need to get our economy healthy again. Fixing our
broken Tax Code is another. As a member of the tax-writing Senate
Finance Committee, I will be introducing tax reform legislation in the
near future, targeted primarily for Main Street businesses that pay
taxes at the individual rate.
I am looking forward to working on comprehensive tax reform with
Chairman Hatch and the rest of my colleagues on the Finance Committee
as we move forward this year. It is critical that passthrough
businesses, which are the main focus of my bill, are not left behind in
this effort.
Today, I want to talk about spurring growth in a specific sector of
our economy, one that is very important to my home state; that is, the
agricultural sector. Like so many other Americans, farmers and ranchers
in South Dakota and across the country have had a rough time of it over
the past few years. Market prices for farm and ranch products have been
on a steady decline since 2013, and net farm income has dropped
substantially as a result of that. Worse, there is little expectation
that prices will improve over the next few years, which means farmers'
and ranchers' incomes are likely to continue to decrease.
Farmers are struggling to repay their debts. Between 2014 and 2016,
the delinquency rates on farm non-real estate loans more than doubled.
Delinquencies on farm real estate loans rose from $1.18 billion in 2014
to $1.66 billion in 2016. While these numbers are not all-time highs,
the increases are disturbing and show no signs of reversing any time
soon.
Farming and ranching are not just careers in South Dakota; they are a
way of life, one that connects communities and families to the land and
one generation to the next. Nearly 3,000 South Dakota farm families
have been honored as operating century farms, meaning the same family
has operated at least 80 acres of that farm for 100 years or more. But
in today's weak agricultural economy, many families are afraid they
will be the ones to lose the farm or ranch that has been in their
family for generations. That would be a loss not just for them but for
our country.
Few of us understand the sacrifices that go into this way of life.
When we pick up a gallon of milk or a loaf of bread at the grocery
store, we don't think of the farmer who rose long before the Sun and
finished his day long after the Sun had set. Our country is made
stronger by the hard work, fierce dedication, and unconquerable spirit
of America's farmers.
We need to make a concerted effort to help farmers meet the
challenges they are facing right now so that America can continue to
help feed the world and Americans can continue to have access to the
home-grown products they depend upon.
So how do we do that? One thing we can do that would immediately
improve agricultural prices would be to quickly negotiate new bilateral
trade agreements. Agriculture is heavily dependent upon trade, and in
today's economic climate, we cannot afford to have our agricultural
exports restricted by inadequate trade policies.
U.S. farmers have lost ground internationally. Our current share of
the global grain market is just 30 percent, down from 65 percent in the
mid-1970s. We need to take steps to level the playing field for
American farmers and ranchers so they can be more competitive
internationally. I have encouraged the President to start by
negotiating a bilateral trade agreement with Japan.
Japan is one of our most important trading partners, but U.S. farmers
too often face hefty tariffs on the products they sell in Japan. U.S.
negotiators made important progress toward reducing these barriers
during the Trans-Pacific Partnership negotiations.
We need to build on the work they did and negotiate a bilateral
agreement with Japan as soon as possible. This would benefit a wide
variety of American producers, including South Dakota beef producers
who currently face a massive 38.5-percent tariff on the beef they sell
in Japan.
Trade agreements would help tremendously, but there is more we need
to do to ensure the long-term sustainability of production agriculture
in the United States.
Every 5 years, Congress has the opportunity to reset Federal farm
policy when it passes the farm bill. The current farm bill expires in
2018, and it is not too early to start the drafting process for the
next bill.
I served on the Agriculture Committee in the House and now serve on
the Senate Agriculture Committee under the strong leadership of my
friend from Kansas, Chairmanship Pat Roberts. I will be working on my
fourth farm bill, and I take this responsibility very seriously.
I spend a lot of time talking to farmers and ranchers while I am back
home in South Dakota, and I have been developing legislation based on
the feedback they give me about Federal programs. I have already
introduced two key proposals that I hope will be part of the final farm
bill that we pass next year, and I will be introducing several more
farm bill legislative proposals this year.
All farmers are familiar with the Conservation Reserve Program, or
CRP, which provides incentives for farmers to take environmentally
sensitive land out of production for 10 to 15 years. But a lot of
farmers have told me that they don't want to retire portions of their
land for a decade or more. To address this, I am proposing a new
program that would reduce operating costs by providing a modest rental
payment and increasing crop insurance premium discounts.
The program I am proposing, the Soil Health and Income Protection
Program, would provide a new, short-term option for farmers that would
allow them to take their worst performing cropland out of production
for 3 to 5 years, instead of the 10 to 15 years required by CRP rules.
This program would result in improved soil health and reduced crop
insurance costs, and it would provide beneficial areas for wildlife
while also improving the bottom line for participating farms.
[[Page S2668]]
The other key proposal I have introduced would make a number of
revisions and management improvements to the CRP program and other U.S.
Department of Agriculture easement programs.
CRP plays a very significant role in South Dakota's economy, as it
provides a major portion of the habitat for the Chinese ringneck
pheasant, which brings more than $250 million each year to my State's
rural areas, towns, and cities. Unfortunately, farmers have spent years
frustrated by some of the ways the Department of Agriculture has
managed this program.
We need to make sure that Federal farm programs don't discourage
farmers and ranchers from participating, especially in times like
these, when these programs are sorely needed to provide valuable safety
net assistance and to help protect soil and water.
My conservation program legislation addresses major concerns that
farmers have with CRP and other USDA conservation programs by allowing
commonsense use and management of land enrolled in these programs,
which improves these programs for farmers and at the same time saves
taxpayers' money.
My legislation also expands the CRP acreage cap by 25 percent and
uses historical acreage averages to make sure CRP will be available in
States that have used it and that need it the most. Above all, the
acres enrolled in CRP and other easement programs must be effectively
used and managed to maximize their usefulness and effectiveness for
land and water conservation and wildlife, and I will work to make that
happen.
In addition, both of my legislative proposals contain provisions to
provide additional support to young, beginning, and socially
disadvantaged farmers and ranchers, as well as to military veterans. We
need to ensure that young and beginning farmers and ranchers and others
have opportunities to succeed, especially now, when even seasoned
farmers are struggling.
Along with trade agreements and the farm bill, there are other things
we can do to help farmers and ranchers and small businesses. This year,
we plan to take up major reform of our broken, bloated Tax Code. Making
sure that we consider the needs of farmers and ranchers during this
debate will be one of my priorities.
We can also help farmers and ranchers by removing burdensome
government regulations that do little to help the environment but force
farmers to spend untold hours and dollars on compliance.
One example of this kind of burdensome regulation is the so-called
waters of the United States rule, something with which every farmer and
rancher is familiar. This EPA regulation improperly used the Clean
Water Act to justify expanding the EPA's regulatory authority to waters
like small wetlands, creeks, stock ponds, and ditches. The rule
specifically targeted the Prairie Pothole Region, which covers five
States, including nearly all of eastern South Dakota. I am grateful
that the President chose to protect farmers and ranchers by announcing
a review of this rule in February of this year.
We could further support American farmers by removing yet another
unnecessary regulatory hurdle, and that is the Reid vapor pressure
regulation, which restricts the sale of E15 fuel during the summer
driving season.
Providing a waiver for E15, as enjoyed by other fuels, is a
bipartisan, no-cost way to roll back regulation and grant consumers
real choice at the pumps, as well as to help our farmers.
Our Nation and the world depend on American farmers and ranchers. We
need to make sure they can sustain their operations and continue to
efficiently feed America and the world.
I look forward to continuing our work on tax, trade, regulatory, and
farm bill policies that support farmers and ranchers in South Dakota
and throughout our country.
When agriculture does well, I would argue, our national economy does
well.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant bill clerk proceeded to call the roll.
Mr. DAINES. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.