[Congressional Record (Bound Edition), Volume 147 (2001), Part 15]
[Senate]
[Pages 21597-21604]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 21597]]

          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DAYTON:
  S. 1629. A bill to provide farmers with better prices and higher 
profits through the marketplace; to the Committee on Agriculture, 
Nutrition, and Forestry.
  Mr. DAYTON. Mr. President, I rise today to introduce The Farm Income 
Recovery Act. Its objective is to produce better prices and higher 
profits through the marketplace. It thus addresses the principal 
failures of the current farm law, the so-called Freedom to Farm bill 
which was passed by the Congress in 1996.
  Freedom to Farm has, unfortunately, contributed to disastrously low 
market prices for agricultural commodities. Congress has thus been 
forced to appropriate disastrously high taxpayer subsidies in order to 
save American farmers from bankruptcy.
  Mr. President, Freedom to Farm was conceived with a laudable goal--to 
get the Federal Government out of agriculture. Farmers were free to 
plant whatever crops they chose, and commodities supports were then to 
be phased out during the life of the legislation. Unfortunately, U.S. 
domestic farm prices collapsed in the aftermath of Freedom to Farm.
  In October 1996, just before the Freedom to Farm legislation began, 
the price of a bushel of soybeans in Minnesota, my home State, was 
$6.84. In October of 2001, just last month, the price of that same 
bushel of soybeans was $4.05. In October of 1996, a bushel of corn 
brought Minnesota farmers $2.68. In October of 2001, it was only $1.60. 
The price of a bushel of wheat fell during those same 5 years from 
$4.27 to $3.
  In order to prop up farm income, Federal payments have soared during 
these 5 years. Last year, total Federal payments for all of agriculture 
totaled nearly $30 billion--by far, a record high--which almost equaled 
total net farm income. In other words, without Federal subsidies, there 
would be no net profit in American agriculture. Clearly, we must find 
another strategy, and that is the enormous task confronting the Senate 
Agriculture Committee, on which I am proud to serve.
  Our distinguished chairman, Senator Harkin, and the previous 
chairman, now our ranking member, Senator Lugar, have held many 
worthwhile hearings throughout this year. Just about every farm 
organization has testified. My colleague from Minnesota, Senator Paul 
Wellstone, also a member of the Agriculture Committee, and I have held 
field hearings throughout Minnesota. Additionally, both of us have held 
many meetings with groups of farmers, producers, and processors 
throughout our State.
  The product of all of the hearings, meetings, and discussions with 
Minnesota farmers is, for me, this Farm Income Recovery Act. As I said 
before, its objective is to help produce higher prices in the U.S. 
domestic commodity markets so that farmers can earn real profits, thus 
reducing or eliminating the need for Government subsidies. That is the 
best way to reduce the costs of farm programs--to reduce the need for 
them. And until we restore market prices to profitable levels, our 
choice will continue to be between either more subsidies or more 
bankruptcies.
  My Farm Income Recovery Act has four major components. The first is 
higher loan rates: $3.88 for wheat, $2.40 for corn, $5.36 for a bushel 
of soybeans, $2.40 for sorghum, $2.40 for barley, $60.65 a 
hundredweight for cotton, and $8.61 a hundredweight for rice.
  Secondly, it targets these higher loan rates, limiting them to 
certain amounts of production. It does not prevent farmers from 
producing more and more, but it says that we are going to limit these 
nonrecourse market loans to certain levels of production, which are set 
forth in the legislation. If a farmer wants to get bigger, wants to 
produce more and more of these commodities, he or she is certainly 
entitled to do so, but then they are on their own. The amount of 
production above these levels is subject to recourse loans, which have 
to be repaid with interest to the Federal Government. This means if the 
producers who want to get larger and larger decide to do so, they are 
not then going to be dependent upon the taxpayers of America; they are 
going to be standing on their own.
  Third, it establishes commodity reserves in order to help control the 
supply and, thus, help farmers decide at what prices they want to sell 
their commodities. It re-establishes a farmer-owned reserve program, 
which was one of the best features of previous farm legislation and 
which was one of the unfortunate casualties of the 1996 farm bill.
  It establishes a humanitarian food reserve fund through the Federal 
Government, through which the Federal Government can hold food 
commodities in reserve for the kinds of humanitarian efforts we see 
underway today in Afghanistan.
  It sets up a renewable energy reserve--which ties in nicely with 
another important feature of the farm bill which Senator Harkin has 
championed over the years and in our discussions of the last few 
months, alternative and renewable fuels in our country--to really boost 
the Federal incentives and support for ethanol, soy diesel, another 
promising biofuel which I have introduced other legislation to promote.
  As we encourage the use of these alternative and renewable fuels in 
our country, we are going to need to hold food commodities in reserve 
so we can assure consumers that there are going to be sufficient 
resources. We may reach the day in this country where we have such 
demand for ethanol and for soy diesel, that we need to go into this 
Government-held energy reserve in order to generate the additional 
supplies necessary to meet that demand. Not only would that be good for 
our oil independence, it would be a great contribution to a cleaner 
environment. It would boost domestic prices for corn, soybeans, and for 
other commodities that can be used for either ethanol or soy diesel 
production in ways that would, again, stimulate our domestic markets 
and reduce the need for taxpayer subsidies.
  Finally, the Farm Income Recovery Act establishes a voluntary program 
that, in periods of increased supply, will allow the Secretary of 
Agriculture to raise these loan rates for farmers who voluntarily set 
aside a certain percentage of their acreage for conservation; thus, in 
combination with our existing conservation programs, it will encourage 
better conservation practices by farmers, again, through positive 
marketplace incentives.
  Mr. President, I ask unanimous consent that a summary of my 
legislation, as well as the actual legislation, be printed in the 
Record at this point.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1629

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SEC. 101. DEFINITIONS.

       Section 102 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7202) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Considered planted.--The term `considered planted' 
     means--
       (A) any acreage that producers on a farm were prevented 
     from planting to a crop because of drought, flood, or other 
     natural disaster, or other condition beyond the control of 
     the producers on the farm; and
       (B) such other acreage as the Secretary considers as fair 
     and equitable'';
       (1) by striking paragraph (4) and inserting the following:
       ``(4) Contract acreage; loan acreage.--The terms `contract 
     acreage', and `loan acreage' mean (at the option of eligible 
     owners or producers on a farm)--
       ``(A) the total crop acreage bases established for all 
     contract commodities and loan commodities under title V of 
     the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) that 
     would have been in effect for the 1996 crop (but for 
     suspension under section 171 (b)(1)); or
       ``(B) the average number of acres planted and considered 
     planted to all contract commodities and loan commodities, 
     respectively, during the 1996 through 2001 crop years, 
     excluding any crop year in which such commodities were not 
     planted or considered planted, on the farm.'';
       (2) by striking paragraph (9) and inserting the following:
       ``(9) Farm program payment yield.--The term `farm program 
     payment yield' means

[[Page 21598]]

     the average yield per planted acre for a crop for a farm for 
     the 1996 through 2001 crop years, excluding any crop year 
     during which--
       ``(A) producers on the farm were prevented from planting 
     the crop because of drought, flood, or other natural 
     disaster, or other condition beyond the control of the 
     producers on the farm; or
       ``(B) the crop was not planted or considered planted on the 
     farm.

     SEC. 201. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN 
                   DEFICIENCY PAYMENTS.

       Amendment to the Agricultural Market Transition Act.--Title 
     I of the Agricultural Market Transition Act (7 U.S.C. 7201) 
     is amended by inserting after Subtitle H the following new 
     subtitle:

``Subtitle I--Counter-Cyclical Economic Assistance for the 2002 Through 
2008 Crops--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

     ``SEC. 131A. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 
                   LOANS.

       ``(a) Nonrecourse Loans Available.--For each of the 2002 
     through 2008 crops of each loan commodity, the Secretary 
     shall make available to producers on a farm nonrecourse 
     marketing assistance loans for loan commodities produced on 
     the farm. The loans shall be made under terms and conditions 
     that are prescribed by the Secretary and at the loan rate 
     established under section 132A for the loan commodity.
       ``Eligible Production.--Any production on a farm of a 
     program participant of a loan commodity shall be eligible for 
     a marketing assistance loan under subsection (a) subject to 
     the limitations established in paragraphs (1), (1)(A), (1)(B) 
     and (2) conditions established in section 202.
       ``(1) Except as provided in section 202, the producers on a 
     farm shall be eligible for a marketing assistance loan for a 
     quantity of a loan commodity for a crop year under subsection 
     (a) obtained by multiplying--
       ``(A) the number of acres planted to each loan commodity on 
     the farm; by
       ``(B) the farm program payment yield for the loan commodity 
     on the farm.
       ``(2) Maximum number of acres.--The producers on a farm 
     shall not be eligible for a marketing assistance loan for 
     production on acres planted to loan commodities in excess of 
     the total program crop loan acreage for the farm.
       ``(b) Compliance With Conservation and Wetlands 
     Requirements.--As a condition of the receipt of a marketing 
     assistance loan under subsection (a), the producer shall 
     comply with the applicable conservation requirements under 
     subtitle B of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3811 et seq.) and applicable wetland protection 
     requirements under subtitle C of title XII of the Act (16 
     U.S.C. 3821 et seq.) during the term of the loan.
       ``(c) Additional Outlays Prohibited.--The Secretary shall 
     carry out this subtitle in such a manner that there are no 
     additional outlays as a result of the reconstitution of a 
     farm that occurs as a result of the combination of another 
     farm that does not contain eligible cropland covered by a 
     production flexibility contract for the 1996 through 2002 
     crops.
       ``(d) Option To Participate With Respect to 2002 Crop.--
     Under such terms and conditions as may be prescribed by the 
     Secretary, a producer may terminate the production 
     flexibility contract in effect for the 2002 crop, and thus 
     forgo any right to a contract payment for the 2002 crop, in 
     order to participate in the marketing loan assistance 
     provided under this subtitle for the 2002 crop.
       ``(e) Full Planting Flexibility Provided.--Notwithstanding 
     section 118 of Subtitle B, or any other provision of this 
     Act, any commodity or crop may be planted on contract acreage 
     or other acreage on a farm.
       ``(f) Use of Commodity Certificates.--Notwithstanding any 
     other provision of law, including section 115 of this Act, 
     the Secretary may not make use of commodity certificates or 
     the commodity loan redemption certificate program for the 
     purposes of this subtitle, or any other purpose.

     ``SEC. 132A. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

       ``(g) Generally.--Loan rates for crops eligible for 
     marketing assistance loans under section 131A for any loan 
     commodity, as defined in section 102, to mean wheat, corn, 
     grain sorghum, barley, oats, upland cotton, rice, extra loan 
     staple cotton, and oilseeds, including soybeans, sunflower 
     seed, rapeseed, canola, safflower, flaxseed, mustard seed, 
     and other oilseeds, if designated by the Secretary, shall be 
     established in accordance with this section.
       ``(h) Annual Determination.--The Secretary shall, for each 
     of the 2002 through 2008 crops, make an annual determination, 
     in accordance with subsections (c) and (d), to establish the 
     national and individual loan rate for each loan commodity.
       ``(i) National Average Loan Rate.--The national average 
     commodity marketing loan rate for each loan commodity shall 
     be established at a rate--
       (1) after making weighted county loan rate adjustments, 
     that is not less than 80 percent of the three year moving 
     average of the full economic cost of production per unit per 
     planted acre, and annually adjusted for both the percentage 
     change in variable production input expenses, and 
     productivity changes as determined by the Economic Research 
     Service using the best and most recently available data
       ``(2) for each of the 2002 crops, the national average loan 
     rate is not less than--
       ``(A) for Wheat: $3.88 per bushel;
       ``(B) for Corn: $2.40 per bushel;
       ``(C) for Soybeans: $5.36 per bushel;
       ``(D) for Upland Cotton: $60.65 per hundredweight;
       ``(E) for Rice: $8.61 per hundredweight; and
       ``(3) for the 2002-2011 crops of feed gains and other loan 
     commodities closely related to those identified in paragraph 
     (2), the Secretary shall determine the rate at a level that 
     is fair and reasonable in relation to the rate provided for 
     the closely related commodity.
       ``(j) For producers of program commodities who exceed the 
     limitations established in Section 202 of this Act, the 
     Secretary shall provide, recourse commodity marketing loans 
     subject to the agreement of eligible producers as a condition 
     for receiving such commodity marketing loans that the 
     producer agrees to repay the Commodity Credit Corporation, on 
     or before the maturity of such loans, the full amount of the 
     loan principal plus any accrued interest on those loans.''
       ``Individual Marketing Loan Rates.--The national average 
     commodity marketing loan rates established under subsection 
     (c) shall be adjusted to establish individual marketing loan 
     rates for eligible producers in accordance with the 
     provisions of this subsection.
       (1) ``Payments in lieu of loans.--For payments under this 
     subtitle taken in lieu of loans, including loan deficiency 
     payments made under section 135A of this subtitle, the 
     Secretary shall develop a similar methodology as described in 
     paragraphs (1) through (3). The methodology shall assume for 
     the purposes of establishing the loan deficiency payment that 
     the marketing loan was actually taken by the producer.''.

     ``SEC. 133A. TERM OF LOANS.

       ``(a) Term of Loans.--In the case of each loan commodity 
     (other than upland cotton and extra long staple cotton), a 
     marketing assistance loan under section 131A shall have a 
     term of 9 months beginning on the first day of the first 
     month after the month in which the loan is made.
       ``(b) Special Rule for Cotton.--A marketing assistance loan 
     for upland cotton or extra long staple cotton shall have a 
     term of 10 months beginning on the first day of the month in 
     which the loan is made.
       ``(c) Extensions Allowed.--The Secretary may extend the 
     term of a marketing assistance loan for any loan commodity 
     for the purpose of establishing or maintaining any of the 
     commodity reserves established under the Agricultural Act of 
     1949.

     ``SEC. 134A. REPAYMENT OF LOANS.

       ``(d) Repayment Rates for Wheat, Feed Grains, and 
     Oilseeds.--The Secretary shall permit a producer to repay a 
     non-recourse marketing assistance loan under section 131A for 
     wheat, corn, grain sorghum, barley, oats, and oilseeds at a 
     rate that is the lesser of--
       ``(1) the loan rate established for the commodity under 
     section 132A, plus interest (as determined by the Secretary); 
     or
       ``(2) a rate that the Secretary determines, consistent with 
     the policies and purposes of section 110A of the Agricultural 
     Act of 1949, will--
       ``(A) minimize potential loan forfeitures;
       ``(B) minimize the accumulation of stocks of the commodity 
     by the Federal Government;
       ``(C) minimize the cost incurred by the Federal Government 
     in storing the commodity; and
       ``(D) allow the commodity produced in the United States to 
     be marketed freely and competitively, both domestically and 
     internationally.
       ``(e) Repayment Rates for Upland Cotton and Rice.--The 
     Secretary shall permit producers to repay a non-recourse 
     marketing assistance loan under section 131A for upland 
     cotton and rice at a rate that is the lesser of--
       ``(1) the loan rate established for the commodity under 
     section 132A, plus interest (as determined by the Secretary); 
     or
       ``(2) the prevailing world market price for the commodity 
     (adjusted to United States quality and location), as 
     determined by the Secretary.
       ``(f) Repayment Rates for Extra Long Staple Cotton.--
     Repayment of a marketing assistance loan for extra long 
     staple cotton shall be at the loan rate established for the 
     commodity under section 132A, plus interest (as determined by 
     the Secretary).
       ``(g) Prevailing World Market Price.--For purposes of this 
     section, the Secretary shall prescribe by regulation--
       ``(1) a formula to determine the prevailing world market 
     price for each commodity, adjusted to United States quality 
     and location;
       ``(2) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for each loan 
     commodity;
       ``(3) further adjustments to the prevailing world market 
     price for upland cotton, as described in subsection (e) of 
     section 134 of this Act.

[[Page 21599]]



     ``SEC. 135A. LOAN DEFICIENCY PAYMENTS.

       ``(a) Availability of Loan Deficiency Payments.--Except as 
     provided in subsection (d), the Secretary may make loan 
     deficiency payments available to producers who, although 
     eligible to obtain a non-recourse marketing assistance loan 
     under section 131A with respect to a loan commodity, agree to 
     forgo obtaining the loan for the commodity in return for 
     payments under this section.
       ``(b) Computation.--A loan deficiency payment under this 
     section shall be computed by multiplying--
       ``(1) the loan payment rate determined under subsection (c) 
     for the loan commodity; by
       ``(2) the quantity of the loan commodity that the producers 
     on a farm are eligible to place under the non-recourse 
     commodity marketing loan but for which the producers forgo 
     obtaining the loan in return for payments under this section.
       ``(c) Loan Payment Rate.--For purposes of this section, the 
     loan payment rate shall be the amount by which--
       ``(1) the loan rate established under section 132A for the 
     loan commodity; exceeds
       ``(2) the rate at which a loan for the commodity may be 
     repaid under section 134A.
       ``(d) Exception for Extra Long Staple Cotton.--This section 
     shall not apply with respect to extra long staple cotton.''.

     SEC. 202. PROGRAM TARGETING.

       (a) Applicability of Payment Limitations.--Except as 
     provided in subsections (b-d), the provisions of sections 
     1001 through 1001C of the Food Security Act of 1985, as 
     amended, shall be applicable to contract payments made under 
     this Act for the 2002 crops.
       (b) Single Attribution.--The Food Security Act of 1985 is 
     amended by adding after section 1001E, the following 
     section--
       ``(b) Single Entity.--Notwithstanding any other provision 
     of this Act, the limitations on payments provided in Sections 
     1001 through 1001C shall apply to a single farming or 
     ranching entity. Payments to a single farming entity shall 
     not exceed the payment limitations provided under this Act, 
     the Agricultural Act of 1949, or any other law.
       ``(c) Use of Tax Identification Number.--The Secretary 
     shall promulgate regulations to ensure that the payment 
     limitations of this title are enforced through a single 
     attribution rule. Payments to a single farming or ranching 
     entity, as described or identified by employer tax 
     identification number, shall not exceed the applicable 
     payment limitation amount. Notwithstanding any other 
     provision of law, such regulations issued by the Secretary 
     shall eliminate the multiple or three-entity allowance.
       ``(d) Partnerships and Related Entities.--With respect to 
     partnerships and related entities which are not organized as 
     sole-proprietorships, benefits available under the marketing 
     loan provisions of Subtitle I of the Agricultural Act of 1949 
     shall be allocated according to the share of production and 
     market risk assumed by each member of the entity.''.
       (c) Limitation on Eligibility of Other Entities.--No 
     individual, organization or institution with annual gross 
     income in excess of $2 million shall be eligible for 
     commodity marketing loan program benefits if agricultural 
     production does not account for at least 75% of that entity's 
     annual gross income.
       (d) Limitation on Eligibility for Non-Recourse Commodity 
     Marketing Assistance Loans.--Notwithstanding any other 
     provisions of sections 1001 through 1001C of the Food 
     Security Act of 1985 and subject to the provisions contained 
     in Section 202, subsections (a) through (d) of this act, the 
     Secretary shall establish a maximum number of commodity 
     production units for each program crop per individual 
     producer that are eligible for non-recourse commodity 
     marketing assistance loans.
       (e) In fulfilling the requirements of subsection (d), the 
     Secretary shall ensure producer flexibility to determine 
     which crops and the percentage volume of those crops on which 
     the producer may receive program benefits, except that in no 
     instance shall a producer be entitled to receive benefits on 
     a volume of production that exceeds one hundred percent of 
     the production for an individual crop or the sum of 
     percentages of the maximum eligible volume of production from 
     two or more eligible crops.
       (f) The quantity limitations established by the Secretary 
     shall not be more than ten percent greater or ten percent 
     less than the quantities for each crop described in 
     subsection (a).
       (a) Wheat--125,000 bushels, Corn--225,000 bushels, 
     Sorghum--225,000 bushels, Barley--225,000 bushels, Oats--
     250,000 bushels, Rice--75,000 hundredweight, Upland Cotton--
     10,500 hundredweight, Extra Long Staple Cotton--12,500 
     hundredweight, Soybeans--100,000 bushels, Minor Oilseeds--
     60,000 hundredweight.

     SEC. 203. COMMODITY RESERVES.

       Amendment to the Agricultural Act of 1949.--Title I of the 
     Agricultural Act of 1949 is amended by adding after section 
     110 the following new section:
       ``(g) Sec. 110A. Commodity Reserves.
       Farmer Owned Production Loss Reserve.--
       ``(1) Purpose.--It is the purpose of this subsection to 
     create a farmer owned reserve to provide--
       ``(A) stocks to be released to the marketplace when prices 
     rise to appropriate levels; and
       ``(B) a reserve that may be utilized to provide additional 
     production assurance and economic support to supplement the 
     Federal Crop Insurance Program, and for other purposes.
       ``(2) Establishment.--The Secretary shall establish and 
     administer a farmer-owned and farmer-stored reserve program 
     under which producers of agricultural commodities will be 
     able to--
       ``(A) store agricultural commodities when those commodities 
     are in abundant supply;
       ``(B) extend the time period for the orderly marketing of 
     the commodities;
       ``(C) provide for adequate carry over stocks to ensure a 
     reliable supply of commodities;
       ``(D) replace lost production or declines in crop yields 
     for agricultural producers that participate in the Federal 
     Crop Insurance Program; and
       ``(E) such other purposes which will assist farmers bear 
     the economic uncertainty of agricultural production, or 
     provide for the orderly marketing of agricultural 
     commodities.
       ``(3) Name.--The agricultural commodity reserve established 
     under this subsection shall be known as the ``Farmer Owned 
     Production Loss Reserve''.
       ``(4) Reserve open.--The reserve shall initially be open to 
     all agricultural producers to enter up to 20 percent of 
     average annual individual production of crops determined 
     eligible by the Secretary. Additional amounts may be accepted 
     up to the maximum allowable national level established under 
     paragraph (9). No individual may enter more than 20 percent 
     of average annual production of the commodity.
       ``(5) Equitable participation.--The Secretary shall ensure 
     that equitable participation opportunities are provided to 
     all eligible producers within the limited scope of the 
     reserve program authorized by this subsection.
       ``(6) Price support loans and direct entry.--In carrying 
     out this section, the Secretary shall provide both--
       ``(A) for direct entry into the reserve; and
       ``(B) extended price support loans, and loan discounts, for 
     agricultural commodities. An extended loan shall be made to a 
     producer after the expiration of the original 9-month price 
     support loan, and the loan shall be extended at no less 
     favorable terms than the current rate of support for the 
     commodity.
       ``(7) Production losses.--
       ``(A) Generally.--The Secretary shall administer a program 
     to utilize the commodity reserve authorized by this 
     subsection to allow agricultural producers that participate 
     in the Federal Crop Insurance Program to--
       ``(i) under certain conditions, redeem and market reserve 
     commodities at a discount to the entry level price; and
       ``(ii) use stocks in the reserve to offset a portion of 
     actual insurable production losses not indemnified through 
     multi-peril or other buy-up crop insurance policies.
       ``(B) Loan repayments.--Under the program authorized by 
     this paragraph, the Secretary shall discount the repayment 
     amount of the loan or extended loan if the actual production 
     of the commodity on the farm for any crop year, as provided 
     in paragraph (C), is less than the actual production history 
     established for the farm. The amount of this discount shall 
     be determined by the Secretary after considering anticipated 
     payments from the Federal Crop Insurance program, costs of 
     production, and other factors in order to provide support to 
     the producer for the full value of lost crop or reduced 
     yield.
       ``(C) Replacement for production.--The Secretary shall 
     utilize the reserve to fully replace lost production for a 
     producer when actual production yields for the commodity for 
     the crop year on the farm is less than 95 percent of the 
     actual production history established for the farm.
       ``(D) Limitation.--At no time may the reserve be utilized 
     to assist any producer in excess of 20 percent of individual 
     annual production.
       ``(8) Storage payments.--The Secretary shall also provide 
     storage payments to producers of agricultural commodities to 
     maintain the reserve established under this subsection. 
     Storage payments shall--
       ``(A) be in such amounts and under such conditions as the 
     Secretary determines appropriate to encourage producers to 
     participate in the program;
       ``(B) reflect local, commercial storage rates subject to 
     appropriate conditions concerning quality management and 
     other factors; and
       ``(C) not be less than comparable commercial rates, except 
     as provided by paragraph (B).
       ``(9) Quantity of commodities in program.--The Secretary 
     shall establish maximum quantities of commodities that may 
     receive loans and storage payments under this subsection in 
     such reasonable amounts as will enable the purposes of the 
     program to be achieved. In no event may the reserve exceed 20 
     percent of the average annual production of the agricultural 
     commodity.
       ``(10) Discretionary exit.--A producer may repay a loan 
     extended under this section at any time.

[[Page 21600]]

       ``(h) Humanitarian Food Assistance Reserve.
       ``(1) Purposes.--It is the purpose of this subsection to 
     create a food reserve that will--
       ``(A) ensure the capacity of the United States to fulfill 
     its current and future commitments for humanitarian nutrition 
     assistance programs;
       ``(B) support the International School Lunch Program which 
     will seek to prevent hunger and malnourishment and improve 
     educational opportunities among the estimated 300 million 
     needy school children around the world; and
       ``(C) for other purposes to meet domestic and international 
     humanitarian food relief needs, and to establish and maintain 
     a food reserve to enable the United States to meet its 
     emergency food assistance needs.
       ``(2) Establishment.--The Secretary is authorized to 
     establish and administer a government-owned and farmer-stored 
     reserve program under which producers of agricultural 
     commodities will be able to--
       ``(A) sell agricultural commodities authorized by the 
     Secretary into the reserve; and
       ``(B) store such agricultural commodities.
       ``(3) Name.--The agricultural commodity reserve established 
     under this subsection shall be known as the ``Humanitarian 
     Food Assistance Reserve''.
       ``(4) Purchases.--The Secretary shall purchase agricultural 
     commodities at commercial rates in order to establish, 
     maintain, or enhance the reserve when--
       ``(A) such commodities are in abundant supply; and
       ``(B) there is need for adequate carryover stocks to ensure 
     a reliable supply of the commodities to meet the purposes of 
     the reserve; or
       ``(C) it is otherwise necessary to fulfill the needs and 
     purposes of the domestic and international nutrition 
     assistance programs administered or assisted by the 
     Secretary.
       ``(5) Limitation.--Purchases under this subsection shall be 
     limited to amounts of agricultural commodities needed to fill 
     one-year estimated needs and commitments of the nutrition 
     programs supported by the reserve. Otherwise, the Secretary 
     may establish maximum quantities of commodities in such 
     reasonable amounts as will enable the purposes of the program 
     to be achieved.
       ``(6) Release of stocks.--Stocks shall be released at cost 
     of acquisition, and in amounts determined appropriate by the 
     Secretary, when market prices of the agricultural commodity 
     exceed 100 percent of the full economic cost of production of 
     those commodities. Cost of production for the commodity shall 
     be determined by the Economic Research Service using the best 
     available information, and based on a three year moving 
     average.
       ``(7) Storage payments.--The Secretary shall provide 
     storage payments to producers that wish to store agricultural 
     commodities to maintain the reserve established under this 
     subsection. Storage payments shall--
       ``(A) be in such amounts and under such conditions as the 
     Secretary determines appropriate to encourage producers to 
     participate in the program;
       ``(B) reflect local, commercial storage rates subject to 
     appropriate conditions concerning quality management and 
     other factors; and
       ``(C) not be less than comparable local commercial rates, 
     except as may be provided by paragraph (B).
       ``(8) Quantity of commodities in program.--The Secretary 
     may establish maximum quantities of commodities that may 
     receive loans and storage payments under this subsection in 
     such reasonable amounts as will enable the purposes of the 
     program to be achieved.
       ``(9) Management of commodities.--Whenever fungible 
     commodities are stored under this subsection, the Secretary 
     may buy and sell at an equivalent price, allowing for 
     customary location and grade differentials, substantially 
     equivalent quantities of commodities in different locations 
     or warehouses to the extent needed to handle, rotate, 
     distribute, and locate the commodities that the Commodity 
     Credit Corporation own or controls. The Secretary shall make 
     purchases to offset such sales within a reasonable time, and 
     shall make public full disclosure of such transitions.
       ``(i) Renewable Energy Reserve.
       ``(1) Purposes.--It is the purpose of this subsection to 
     create a reserve of agricultural commodities to--
       ``(A) provide feedstocks to support and further the 
     production of the renewable energy; and
       ``(B) support the renewable energy industry in times when 
     production is at risk of decline due to reduced feedstock 
     supplies or significant commodity price increases.
       ``(2) Establishment.--The Secretary is authorized to 
     establish and administer a government-owned and farmer-stored 
     renewable energy reserve program under which producers of 
     agricultural commodities will be able to--
       ``(A) sell agricultural commodities authorized by the 
     Secretary into the reserve; and
       ``(B) store such agricultural commodities.
       ``(3) Name.--The agricultural commodity reserve established 
     under this subsection shall be known as the ``Renewable 
     Energy Reserve''.
       ``(4) Purchases.--The Secretary shall purchase agricultural 
     commodities at commercial rates in order to establish, 
     maintain, or enhance the reserve when--
       ``(A) such commodities are in abundant supply; and
       ``(B) there is need for adequate carryover stocks to ensure 
     a reliable supply of the commodities to meet the purposes of 
     the reserve; or
       ``(C) it is otherwise necessary to fulfill the needs and 
     purposes of the renewable energy program administered or 
     assisted by the Secretary.
       ``(5) Limitation.--Purchases under this subsection shall be 
     limited to--
       ``(A) the type and quantities of agricultural commodities 
     necessary to provide approximately one-year's estimated 
     utilization for renewable energy purposes;
       ``(B) an additional amount of commodities to provide 
     incentives for research and development of new renewable 
     fuels and bio-energy initiatives; and
       ``(C) such maximum quantities of agricultural commodities 
     determined by the Secretary as will enable the purposes of 
     the renewable energy program to be achieved.
       ``(6) Release of stocks.--Stocks shall be released at cost 
     of acquisition, and in amounts determined appropriate by the 
     Secretary, when market prices of the agricultural commodity 
     exceed 100 percent of the full economic cost of production of 
     those commodities. Cost of production for the commodity shall 
     be determined by the Economic Research Service using the best 
     available information, and based on a three year moving 
     average.
       ``(7) Storage payments.--The Secretary shall provide 
     storage payments to producers of agricultural commodities to 
     maintain the reserve established under this subsection. 
     Storage payments shall--
       ``(A) be in such amounts and under such conditions as the 
     Secretary determines appropriate to encourage producers to 
     participate in the program;
       ``(B) reflect local, commercial storage rates subject to 
     appropriate conditions concerning quality management and 
     other factors; and
       ``(C) not be less than comparable local commercial rates, 
     except as may be provided by paragraph (B).
       ``(j) Commodity Credit Corporation.--The Secretary shall 
     use the Commodity Credit Corporation, to fulfill the purposes 
     of this subsection. To the maximum extent practicable 
     consistent with the purposes, and effective and efficient 
     administration of this subsection, the Secretary shall 
     utilize the usual and customary channels, facilities and 
     arrangement of trade and commerce.''.

     SEC. 204. DISCRETIONARY INVENTORY MANAGEMENT AND PROGRAM 
                   COST-CONTAINMENT.

       (a) Short Title.--This section may be cited as the 
     ``Discretionary Inventory Management, Program Cost-
     Containment, and Fiscal Responsibility Act of 2001''.
       (b) Amendments to the Federal Agriculture Improvement and 
     Reform Act.--Subtitle F of title I of the Federal Agriculture 
     Improvement and Reform Act (7 U.S.C. 7201) is amended by--
       (1) striking out the subtitle heading and inserting the 
     following new heading--

                  ``Subtitle F--Permanent Authorities

                    ``Chapter 1--Price Support; and

       (2) by adding at the end the following new chapter--

   ``Chapter 2--Discretionary Inventory Management and Program Cost-
                              Containment

     ``SEC. 173. DISCRETIONARY INVENTORY MANAGEMENT AUTHORITY.

       ``(a) Generally.--Notwithstanding any other provision of 
     this Act, or the Agricultural Act of 1949, the Secretary may 
     establish a voluntary inventory management program for loan 
     commodities under the provisions of this section. Such 
     program shall be established on a whole farm basis and shall 
     include total program crop acreage for the farm.
       ``(b) Incentives Offered.--The Secretary may offer 
     incentives, as defined in subsection (f), to agricultural 
     producers of loan commodities that agree to forgo production 
     on a specified percentage of the acreage planted to eligible 
     commodities. The production management program may be 
     announced when the Secretary determines that the estimated 
     total supply of loan commodities for the next crop year, in 
     the absence of such a program, will be excessive taking into 
     account the need for an adequate carryover to maintain 
     reasonable and stable supplies and prices and to meet a 
     national emergency.
       ``(c) Acreage Defined.--Inventory management acreage must 
     be acreage that either--
       ``(1) has previously been under a production flexibility 
     contract, or
       ``(2) was previously planted an eligible loan commodities 
     for at least three of the last five years.
       ``(d) Conservation Uses.--Inventory management acreage 
     shall be devoted to approved conservation and wildlife uses, 
     as defined by the Secretary. Adequate safeguards from weeds, 
     and wind, soil, and water erosion must be provided.

[[Page 21601]]

       ``(e) Acreage Options.--If announced, the inventory 
     management program shall offer the producer a range of 
     acreage participation options. Under such a program, the 
     Secretary shall offer producers the option to set-aside 5 
     percent, 10 percent, 15 percent, or 20 percent of total 
     commodity acreage. Total program acreage shall include 
     applicable inventory management acres from the previous crop 
     year.
       ``(f) Incentive Defined..--
       ``(1) The incentive offered by the Secretary for agreement 
     to forgo production on a specified percentage of loan 
     commodity production acres shall be an increase in the 
     marketing loan rates for eligible commodities for the 
     individual producer in an amount that is equal to one half of 
     the percentage of the percentage inventory management or 
     acreage option selected under subsection (e).
       ``(2) The increase in the marketing loan rate for an 
     individual producer, shall be as follows--if the inventory 
     management acreage is--
       ``(A) 5 percent, then the marketing loan rate shall be 
     increased by 2.5 percent.
       ``(B) 10 percent, then the marketing loan rate shall be 
     increased by 5 percent.
       ``(C) 15 percent, then the marketing loan rate shall be 
     increased by 7.5 percent, and
       ``(D) 20 percent, then the marketing loan rate shall be 
     increased by 10 percent.
       ``(g) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(h) Regulations.--The Secretary shall issue such 
     regulations as may be necessary to carry out this section.
       Cross Compliance and Offsetting Compliance.--The Secretary 
     shall require that compliance on a farm with the terms and 
     conditions of any other commodity, conservation, or any other 
     program is required as a condition of eligibility for 
     inventory management incentives provided under authority of 
     this section.''.
                                  ____


                      The Farm Income Recovery Act


        Better Prices and Higher Profits Through the Marketplace

       Since the commodity market collapse in the late 1990's, 
     farmers in Minnesota and the rest of the country have learned 
     a hard lesson: the 1996 ``Freedom to Farm'' Act lacks an 
     adequate safety net for farmers struggling with severe price 
     fluctuations. As a result, year after year, the Federal 
     Government has been forced to pass billions of dollars in 
     emergency funding, barely enough to allow many of these 
     farmers to survive.
       We cannot continue this pattern--it is hurting our farmers, 
     and its is fiscally irresponsible, costing taxpayers close to 
     $33 billion in emergency assistance over the past five years.
       The goal of the Farm Income Recovery Act is to raise market 
     prices for farmers, with the added benefit of reducing the 
     cost of the taxpayer. It provides farmers with a secure 
     safety net that can offset severe price fluctuations and can 
     help manage uncertainties in the marketplace by boosting 
     marketing assistance loan rates. It creates a sound reserve 
     program, allowing producers to store their commodities when 
     they are in abundant supply, so market prices do not continue 
     to spiral downward. And it is counter cyclical, so it kicks 
     in to help farmers when prices are low, but phases out when 
     prices increase.


                Boosting Marketing Assistance Loan Rates

       The Farm Income Recovery Act boosts marketing loan rates, 
     establishing an equitable, counter cyclical assistance 
     program based on costs of production.
       Instead of basing loan rate calculations on an arbitrary 
     snapshot of community prices in a given year, the bill 
     directs the Secretary of Agriculture to establish marketing 
     loan rates at not less than 80 percent of the economic cost 
     of production, allowing loans rate to adjust annually to 
     changes in both producer input costs and productivity.
       The loan rates in the Farm Income Recovery Act are far more 
     equitable than current rates, as well as the rates proposed 
     in the Farm Bill passed by the House of Representatives and 
     even those being suggested by the Senate Agriculture 
     Committee:

----------------------------------------------------------------------------------------------------------------
                                                                               Farm
                                                                  Current     Income      House       Senate Ag
                         Crop and unit                           loan rate   Recovery     passed      committee
                                                                               Act                       \1\
----------------------------------------------------------------------------------------------------------------
Wheat (bushel).................................................      $2.58      $3.88   $2.24-2.58         2.94
Corn (bushel)..................................................       1.89       2.40    1.64-1.89         2.05
Sorghum (bushel)...............................................       1.71       2.40    1.44-1.89         1.98
Barley (bushel)................................................       1.65       2.40    1.40-1.65         1.98
Soybeans (bushel)..............................................       5.26       5.36    4.06-4.92         5.20
Upland Cotton (Cwt)............................................      51.92      60.65        51.92        54.50
Rice (Cwt).....................................................       6.50       8.61         6.50         6.90
----------------------------------------------------------------------------------------------------------------
\1\ As of 10/31/01.

       To discourage overproduction, the Farm Income Recovery Act 
     directs the Secretary to establish limits on the crop amounts 
     for which individual producers can receive nonrecourse 
     marketing loans. This limit is calculated by multiplying a 
     producer's 1996-2001 crop years average acreage base by the 
     1996-2001 crop years average yield base.


                  TARGETING HELP TOWARD FAMILY FARMERS

       The Farm Income Recovery Act is designed to target its 
     benefits to family farmers by limiting the amount of a crop 
     for which farmers can receive nonrecourse loans. Production 
     that exceeds limits would be eligible for recourse loans, 
     which must be paid back, with interest, to the Federal 
     Government: Wheat, 125,000 bushels; Corn, 225,000 bushels; 
     Sorghum, 225,000 bushels; Barley, 225,000 bushels; Oats, 
     250,000 bushels; Soybeans, 100,000 bushels; Rice, 75,000 
     hundredweight; Upland Cotton, 10,500 hundredweight; Extra 
     Long Staple Cotton, 12,500 hundredweight; and Minor Oilseeds, 
     60,000 hundredweight.
       The targeting provision also prohibits program 
     participation by anyone whose annual gross income exceeds $2 
     million of which agricultural production accounts for less 
     than 75 percent.


         Using Commodity Reserves to Achieve Policy Objectives

       In the past, commodity reserves languished in Government 
     stockpiles unless high prices triggered their release into 
     the market--which would often result in depressed prices.
       Under the Farm Income Recovery Act, commodity reserves 
     would not enter the free market, where they could have a 
     depressive effect on prices; instead, they would be used 
     exclusively to achieve other policy objectives as follows:
       The Farmer-Owned Production Loss Reserve allows producers 
     to store a specified amount (up to 20 percent of their annual 
     production) of program commodities when they are in abundant 
     supply, and supplements the Federal Crop Insurance Program by 
     providing additional risk protection to producers who suffer 
     production losses.
       The Humanitarian Food Assistance Reserve allows the Federal 
     Government to purchase, store, and utilize commodities to 
     ensure the capacity of the United States to fulfill current 
     and future humanitarian nutrition assistance commitments and 
     stimulate economic development in the neediest parts of the 
     world. The quantity that may be purchased by the government 
     for the reserve is limited to approximately one-year's 
     estimated commitments. Some examples of humanitarian programs 
     that may benefit from this reserve are the Food for Peace 
     Program, United Nation's World Food Programs, and the 
     proposed McGovern/Dole Food for Education Program.
       The Renewable Energy Reserve allows the Federal Government 
     to purchase, store, and utilize commodities such as corn and 
     soybeans that are used to create renewable fuels like ethanol 
     and biodiesel when production is at risk of decline due to 
     reduced feedstock supplies or significant commodity price 
     increases. The quantity that may be purchased by the 
     government for the reserve is limited to approximately one-
     year's estimated utilization for renewable energy purposes.


                 Cost containment Through Conservation

       In times of overproduction, the Farm Income Recovery Act 
     authorizes the Secretary of Agriculture to establish a 
     voluntary program that would further increase loan rates for 
     producers who voluntarily set aside a percentage of their 
     acreage for conservation as follows:

------------------------------------------------------------------------
                                                                Percent
                                                               increase
                      Acreage set aside                         of loan
                                                                 rate
------------------------------------------------------------------------
5 percent...................................................         2.5
10 percent..................................................         5
15 percent..................................................         7.5
20 percent..................................................        10
------------------------------------------------------------------------

                             Cost Estimate

       The Congressional Budget Office is currently calculating a 
     cost estimate for the Farm Income Recover Act. However, the 
     Agricultural Policy Analysis Center at the University of 
     Tennessee has estimated the 10-year cost of a very similar 
     program at about $50 billion over current expenditure levels 
     for the next 10-year budget cycle. By comparison, the House 
     Farm Bill's Commodity Title, which covers comparable issues, 
     has been scored at $48.8 billion.

  Mr. DAYTON. In summary, this legislation, which was developed in 
close consultation with the National Farmers Union and the Minnesota 
Farmers Union, really bears the imprint of the farmers in Minnesota, 
with whom I have consulted over the last several months--really over 
the last 20 years. It accomplishes what farmer after farmer in 
Minnesota has told me that he or she is searching for, and that is a 
farm program that encourages market prices to levels where farmers can 
make a profit in the marketplace.
  I come from a business family, and I know you don't stay in business 
if you cannot earn a profit for what you produce and sell. 
Unfortunately, the ability and the opportunity to earn a profit is what 
has been taken away from farmers in Minnesota and across this country.
  I am humbled by the fact that for 60 years Members of this body, from 
both sides of the aisle, have endeavored to create a Federal 
agricultural policy that would best serve the interests of Minnesota 
and other American farmers. Sometimes they have succeeded in doing so; 
sometimes their efforts have fallen short.

[[Page 21602]]

  I do not know if this legislation provides the right answer for all 
the farmers across this country, but I do know it is a step in a better 
direction from what we have today. It is a step toward higher prices in 
the marketplace; it is a step toward lower taxpayer subsidies; it is a 
step toward putting agriculture in this country back on its own 
economic feet so it is not dependent on Government programs and not 
dependent on every decision we make in Washington to dictate what the 
next course of action will be.
  I look forward to working with colleagues on this legislation.
                                 ______
                                 
      By Ms. COLLINS:
  S. 1633. A bill to amend the Cooperative Forestry Assistance Act of 
1978 to establish a program to provide assistance to States and 
nonprofit organizations to preserve suburban open space and contain 
suburban sprawl, and for other purposes; to the Committee on 
Agriculture, Nutrition, and Forestry.
  Ms. COLLINS. Mr. President, the people of Maine have always been 
faithful stewards of the forest because we understand its tremendous 
value to our economy and to our way of life. From the vast tracts of 
land in the north to the small woodlots of the south, forest land helps 
shape the character of our entire State. While our commitment to 
stewardship has preserved the forest for generations, there is a new 
threat to Maine's forest that requires a new approach.
  The threat is suburban sprawl, which has already consumed tens-of-
thousands of acres of forest land in southern Maine. Sprawl occurs 
because the economic value of forest or farm land cannot compete with 
the value of developed land. The problem is particularly acute here in 
southern Maine where a 108 percent increase in urbanized land over the 
past two decades has resulted in the labeling of greater Portland as 
the ``sprawl capital of the Northeast.''
  I am alarmed by the amount of working forest land and open space that 
has given way to strip malls and cul-de-sacs. Our State is trying to 
respond to this challenge. The people of Maine have approved a $50-
million bond to preserve land through the Land for Maine's Future 
Board, and continue to use scarce local funds and contribute their time 
and money to preserve important lands and to support our State's 88 
land trusts.
  The people of Maine are forging a new approach to preserving our 
working forest and protecting our communities from sprawl. It is time 
for the Federal Government to support these efforts.
  Today I am introducing the Suburban and Community Forestry and Open 
Space Initiative Act. The legislation, which was drafted with the 
advice of land owners, conservation groups, and community planners, 
establishes a $50-million grant program within the U.S. Forest Service 
to support locally-driven projects that preserve working forests. State 
and local governments, as well as nonprofit organizations, would 
compete for funds to purchase land or conservation easements to keep 
forest lands, threatened by development, in their traditional use.
  Projects funded under this initiative must be targeted at lands 
located in parts of the country that are threatened by sprawl. The 
legislation requires that Federal grant funds be matched dollar-for-
dollar with State, local, or private resources. The grant program will 
help promote sustainable forestry and public access to forest lands. My 
legislation protects the rights of property owners with the inclusion 
of a ``willing-seller'' provision and it allows non-profits, States, 
and municipalities--but not the Federal Government--to hold title to 
land or easements purchased under the program.
  The $50 million that would be authorized by my bill would help 
achieve a number of stewardship objectives. First, my legislation would 
help prevent forest fragmentation and preserve working forests, helping 
to maintain the supply of timber that fuels Maine's most important 
industry. Second, the resources made available as part of my 
legislation would be a valuable tool in communities that are struggling 
to manage growth and prevent sprawl. Currently, if the town of Gorham, 
ME or another community trying to cope with the effects of sprawl 
turned to the Federal Government for assistance, none would be found. 
My bill will change that by making the Federal Government an active 
partner in preserving forest land and managing sprawl, while leaving 
decision-making at the State and local level.
  We can all be proud of the work being done in Maine to protect our 
working forests for the next generation, and I am grateful that many of 
the people and organizations that are leading this effort are 
supporting my legislation. By enacting the Suburban and Community 
Forestry and Open Space Initiative Act Congress can provide a real 
boost to conservation initiatives, help preserve sprawl, and help 
sustain the vitality of natural resource-based industries.
                                 ______
                                 
      By Ms. Collins:
  S. 1634. A bill to amend the Federal Food, Drug, and Cosmetic Act to 
improve the safety of perishable products whose import is regulated by 
the Commissioner of Food and Drugs, and for other purposes; to the 
Committee on Health, Education, Labor, and Pensions.
  Ms. COLLINS. Mr. President, I rise today to introduce The Imported 
Food Safety Act of 2001. Food safety has been a serious public health 
concern in America for some time, but our awareness of the 
vulnerability of our food supply has been heightened since September 
11.
  I have long been concerned about the adequacy of our Nation's 
imported food supply system. In 1998, in my capacity as chairman of the 
Permanent Subcommittee on Investigations, I began an in-depth 16 month 
investigation into the safety of food imports. This investigation 
revealed much about the government's flawed food safety net. 
Regrettably, in the intervening three years, little has changed, and 
now we must acknowledge that those systemic shortcomings can also be 
used by those who wish to perpetrate acts of bioterrorism.
  As part of the investigation, I requested the GAO to evaluate the 
federal government's efforts to ensure the safety of imported foods. In 
its April 1998 report, the GAO concluded that ``federal efforts to 
ensure the safety of imported foods are inconsistent and unreliable.'' 
Just last month, the GAO reiterated that conclusion in testimony before 
the Senate's Subcommittee on Oversight of Government Management.
  During five days of Subcommittee hearings, we heard testimony from 29 
witnesses, including scientists, industry and consumer representatives, 
government officials, the General Accounting Office, and two persons 
with first-hand knowledge of the seamier side of the imported food 
industry, a convicted Customs broker and a convicted former FDA 
inspector.
  Let me briefly recount some of the Subcommittee's findings which make 
it clear why this legislation is so urgently needed: weaknesses in FDA 
import controls, specifically the ability of importers to control food 
shipments from the port to the point of distribution, make the system 
vulnerable to fraud and deception and clearly to a terrorist attack; 
the bonds required to be posted by importers who violate food safety 
laws are so low that they are considered by some unscrupulous importers 
as the cost of doing business; maintaining the food safety net for 
imported food is an increasingly complex task, made more complicated by 
previously unknown foodborne pathogens, like Cyclospora, that are 
difficult to detect; our recent experience with anthrax has taught us 
that there is much more public health officials need to know to ensure 
the safety of our food; because some imported food can be contaminated 
by substances that cannot be detected by visual inspection, grant 
programs need to be established that will encourage the rapid 
development of food safety monitoring sensors that are capable of 
detecting chemical and biological contaminants; since contamination of 
imported food can occur at many different places from

[[Page 21603]]

the farm to the table, the ability to trace outbreaks of foodborne 
illnesses back to the source of contamination requires more coordinated 
effort among Federal, State, and local agencies responsible for 
ensuring food safety, as well as improved education for health care 
providers so that they can better recognize and treat foodborne 
illnesses. Again, our recent experience with anthrax underscores the 
need for better coordination and education.
  Since the terrorist attacks that occurred just weeks ago, we have 
been living in a changed world. We are battling enemies who show no 
regard for the value of human life, and whose twisted minds seek to 
destroy those who embody democracy and freedom. It has never been as 
important as it is now to ensure that our food supplies are adequately 
protected against contamination, both inadvertent and intentional.
  President Bush and his Administration are acting swiftly and 
decisively on all fronts. Among the responsibilities of the Office of 
Homeland Security is the protection of our livestock and agricultural 
systems from terrorist attack. And the Secretary of Health and Human 
Services, Tommy Thompson, has been working tirelessly to obtain the 
additional tools necessary to combat bioterrorism.
  On October 17, 2001, Secretary Thompson appeared before the Senate's 
Governmental Affairs Committee, and testified about the Federal 
Government's efforts to ensure that the country is adequately prepared 
to respond to bioterrorist threats. He identified food safety and, in 
particular, imported foods, as vulnerable areas that require further 
strengthening. Similarly, at a recent hearing before the Health, 
Education, Labor, and Pensions Committee, public health experts were 
unanimous in expressing concern about the vulnerability of our food.
  Weak import controls make our system all too easy to circumvent. 
After all, FDA only inspects fewer than one percent of all imported 
food shipments that arrive in our country. Those shipments are sent 
from countries around the world, most of whom wish us no harm. Yet, 
because of the hard lessons we have had to learn since September 11, we 
must be more vigilant about protecting ourselves. It is vital that we 
take the necessary steps to close the loopholes that unscrupulous 
shippers have used in the past and that bioterrorists could exploit 
now.
  I first became concerned about the safety of the U.S. food supply in 
1998 when I learned that fruit from Mexico and Guatemala was associated 
with three multi-state outbreaks of foodborne illnesses that sickened 
thousands of Americans. Regrettably, those type of outbreaks are far 
too common. The Centers for Disease Control and Prevention, CDC, 
estimate that 76 million cases of foodborne illnesses occur each year. 
Fortunately, the majority of these incidents are mild and cause 
symptoms for only a day or two. Less fortunately, the CDC also 
estimates that over 325,000 hospitalizations and 5,000 deaths result 
from those 76 million cases. And as astonishingly high as those numbers 
are, they are estimates, and the truth may be even more deadly.
  It was because of my concern that I began the Subcommittee's 
investigation of the adequacy of our country's imported food safety 
system. During the Subcommittee's hearings, the testimony I heard was 
troubling. The United States Customs Service told us of one 
particularly egregious situation. It involves contaminated fish and 
illustrates the challenges facing federal regulators who are charged 
with ensuring the safety of our Nation's food supply.
  In 1996, Federal inspectors along our border with Mexico opened a 
shipment of seafood destined for sales to restaurants in Los Angeles. 
The shipment was dangerously tainted with life-threatening 
contaminants, including botulism, Salmonella, and just plain filth. 
Much to the surprise of the inspectors, this shipment of frozen fish 
had been inspected before by Federal authorities. Alarmingly, in fact, 
it had arrived at our border two years before, and had been rejected by 
the FDA as unfit for consumption. Its importers then held this rotten 
shipment for two years before attempting to bring it into the country 
again, by a different route.
  The inspectors only narrowly prevented this poisoned fish from 
reaching American plates. And what happened to the importer who tried 
to sell this deadly food to American consumers? In effect, nothing. He 
was placed on probation and asked to perform 50 hours of community 
service.
  I suppose we should be thankful that the perpetrators were caught in 
this case. After all, the unsafe food might have escaped detection and 
reached our tables. But it worries me that the importer essentially 
received a slap on the wrist. I believe that forfeiting the small 
amount of money currently required for the Custom's bond, which some 
importers now consider no more than a ``cost of doing business,'' does 
little to deter unscrupulous importers from trying to slip tainted fish 
that is two years old past overworked Customs agents.
  It is imperative that Congress provide our Federal agencies with the 
direction, resources, and authority necessary to protect our food 
supply from acts of bioterrorism and to keep unsafe, unsanitary food 
out of the United States.
  I have worked with the FDA, the Customs Service, and the CDC to 
ensure that my legislation corrects many of the vulnerabilities that 
have been identified in our imported food safety system. Let me 
describe what this bill is designed to accomplish.
  My legislation will fill the existing gaps in the food import system 
and provide the FDA with stronger authority to protect American 
consumers against tainted food imports. First and foremost, this bill 
gives the FDA the authority to stop such food from entering our 
country. My bill would authorize FDA to deny the entry of imported food 
that has caused repeated outbreaks of foodborne illnesses, presents a 
reasonable probability of causing serious adverse health consequences, 
and is likely without systemic changes to cause disease again.
  Second, this legislation would enable the FDA to require secure 
storage of shipments offered by repeat offenders prior to their release 
into commerce. Unscrupulous shippers who have demonstrated a 
willingness to knowingly send tainted food to our country cannot be 
overlooked as potential sources of bioterrorist acts. My bill would 
also prohibit the practice of ``port-shopping,'' and would require that 
boxes containing violative foods that have been refused entry into our 
country be clearly marked. This latter authority is currently used with 
success by the U.S. Department of Agriculture. My bill also would 
require the destruction of certain imported foods that cannot be 
adequately reconditioned to ensure safety.
  Third, the legislation would direct the FDA to develop criteria for 
use by private laboratories to collect and analyze samples of food 
offered for import. This will ensure the integrity of the testing 
process.
  Fourth, the bill would give ``teeth'' to the current food import 
system by establishing two strong deterrents, the threats of higher 
bonds and of debarment, for unscrupulous importers who repeatedly 
violate U.S. law. No longer will the industry's ``bad actors'' be able 
to profit from endangering the health of American consumers.
  Finally, my bill would authorize the CDC to award grants to state and 
local public health agencies to strengthen the public health 
infrastructure by updating essential items such as laboratory and 
electronic-reporting equipment. Grants would also be available for 
universities, non-profit corporations, and industrial partners to 
develop new and improved sensors and tests to detect pathogens and for 
professional schools and professional societies to develop programs to 
increase the awareness of foodborne illness among healthcare providers 
and the public.
  We are truly fortunate that the American food supply is one of the 
safest in the world. But our system for safeguarding our people from 
imported food that has been tainted, either intentionally or 
inadvertently, is flawed.

[[Page 21604]]

  Finally, I am very pleased to also be working with my colleagues on 
bipartisan bioterrorism legislation that targets problems posed by 
bioterrorist threats to our Nation's food supply and public health. I 
believe that the measures provided for in my Imported Food Safety Act 
of 2001, and the bipartisan bioterrorism bill, will significantly 
reduce the threat to our country. I hope that we will pass both pieces 
of legislation this year.

                          ____________________