[Congressional Record (Bound Edition), Volume 152 (2006), Part 12]
[Extensions of Remarks]
[Pages 16262-16263]
[From the U.S. Government Publishing Office, www.gpo.gov]




          INTRODUCTORY STATEMENT FAMILY FARM ENERGY RELIEF ACT

                                 ______
                                 

                             HON. TOM UDALL

                             of new mexico

                    in the house of representatives

                        Thursday, July 27, 2006

  Mr. UDALL of New Mexico. Mr. Speaker, rising costs tied to current 
energy prices are adversely impacting family farmers rendering some 
farms unsustainable. In fact, I have heard from some constituents in my 
home state of New Mexico who cannot afford to plant crops this year due 
to energy prices. We are in danger of losing family farms.
  That is why I rise today to introduce the Family Farm Energy Relief 
Act. This legislation proposes to repeal tax incentives to oil and gas 
companies from the Energy Policy Act of 2005 to instead provide energy 
rebates to family farmers.
  The Energy Policy Act of 2005 provided approximately $2.633 billion 
in tax breaks for oil and gas companies over the next 11 years. During 
times of high gas prices and record profits for oil and gas companies 
these tax breaks are wholly unnecessary. In fact, the current 
administration has agreed that they are unnecessary. President Bush 
recently stated Congress has got to understand that these energy 
companies don't need unnecessary tax breaks . . . I'm looking forward 
to Congress to take about $2 billion of these tax breaks out of the 
budget over a 10-year period of time. Cash flows are up. Taxpayers 
don't need to be paying for certain of these expenses on behalf of the 
energy companies.
  The Family Farm Energy Relief Act legislation redirects the monies 
from the Energy Policy Act to family farmers to help pay the cost of 
farm diesel over the next three years. Approximately 3.4 billion 
gallons of farm diesel were sold in the United States in 2004, 35 
million gallons to New Mexican farmers and ranchers.
  The rebate program gives a tax credit to qualified family farmers 
equaling 10 percent of yearly farm diesel expenses. Additionally, 
qualified family farmers who produce biodiesel for sale or personal use 
would receive an additional 10 cents per gallon credit.

[[Page 16263]]

  The program will redistribute approximately $870 million per year in 
tax credits for farm diesel expenditures and approximately $8 million 
per year in tax credits for biodiesel production over three years. 
Expenditures from this program will not exceed the $2.633 billion oil 
and gas tax incentives from the Energy Policy Act.
  Mr. Speaker, family farmers and the Agriculture sector have been a 
staple of the American economy since before we were a nation. Many 
family farmers already face great obstacles to success and may have 
already succumbed to large agriculture conglomerates. The Family Farm 
Energy Relief Act is not meant to be a substitute for the long-term 
energy solutions we all seek for our Nation. As much as each of us 
understands the necessity of a comprehensive and balanced approach to 
energy development, so too should we realize that in every state there 
are hard-working family farmers whose monthly budgets are being 
stretched to the breaking point by energy costs. While we must approach 
this country's energy demand with the willingness to make the tough, 
long-range choices demanded of us, it is equally important that we heed 
the suffering being caused by the current high prices. Let us help ease 
the increasing burden of fuel costs and help ensure that these farmers 
remain one of the backbones of our country and our country's economy.

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