Subject: 95 Farm Bill Review 8-10-94
From: [email-masked] (IATP)
Date: 10 Aug 1994 22:41:43 -0000
Newsgroups: alt.sustainable.agriculture

1995 FARM BILL REVIEW
Volume 1, Number 8
Wednesday, August 10, 1994
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HEADLINES:
- Too Much Regulation, Not Enough Environmental Incentives Cited at 
Farm Bill Hearings
- House Passes Disaster Aid Reform Package
- Espy: All Farm Programs Up for Debate
- House Rejects Dairy Self-Help GATT Bill
- Clean Water Act Likely On Hold Until Farm Bill
- Farm Groups Push for Export Policy Changes
- Midwest, Plains Grain Farmers Affected Most by Changes in Farm 
Subsidies
- EVENT
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Too Much Regulation, Not Enough Environmental Incentives Cited at 
Farm Bill Hearings

Many of the 150 farmers, ranchers and environmentalists who 
attended the USDA's first farm bill field hearing July 14 in Spokane, 
Washington complained that too much federal farm regulation has 
resulted in the squeezing of farmers' profits and the discouragement 
of environmental stewardship.

"We have more requirements and less incentives," said Read Smith, a 
Washington farmer.  "As time goes on, producers will be asked to 
produce more and receive less."  Smith notedthat farmers who 
presently fail to meet environmental standards are penalized, but 
those who exceed standards are not rewarded.

Assistant Agriculture Secretary for Natural Resources and the 
Environment James Lyons assured the Spokane crowd that the 
administration aims to "design a system that achieves the dual goals 
we have: that is, good land stewardship and profitability for the 
farmer."

Meanwhile, in Washington, D.C., the House Agriculture Subcommittee 
on General Farm Commodities heard similar testimony in favor of  
programs that reward farmers for environmental stewardship and 
encourge marketing flexibility.  

Ferd Hoefner of the Sustainable Agriculture Coalition told the 
subcommittee proposals to create an Environmental Reserve Program 
are being developed to replace the Acreage Reduction Program 
(ARP).  Hoefner explained that under the Environmental Reserve 
plan some of the money allocated for deficiency payments would be 
used to pay farmers to reduce production in an environmentally 
beneficial way.  Currently farmers must set aside a required number 
of acres under the ARP program in order to qualify for deficiency 
payments.

The National Corn Growers Association (NCGA) told the committee it 
would push for  a program that combines crop base acres and 
historic oilseed and alfalfa acres to create a "freedom acreage base."  
Under the proposal, farmers could shift up to 25 percent of the 
combined acreage to any eligible crop.  "Flexibility that will allow 
producers to shift the use of productive resources in response to 
market, environmental and conservation considerations remains an 
important goal," said Pete Wenstrand, NCGA president.

Sources: Luis Cabrera, "Farmers Push for Incentives Over Fines in 
New Farm Bill," FARM & RANCH GUIDE, July 29, 1994; SENTER ON THE 
HILL, August, 1994;  Gordon  S. Carlson, "Aid to Large Farms, 
Environment Issues Are Focus of Early Farm Bill Hearing," 
FEEDSTUFFS, July 18, 1994.
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House Passes Disaster Aid Reform Package

The House passed a bill Friday that aims to cut the government's 
annual $2.4 billion disaster-aid costs by requiring more farmers to 
participate in the federal crop insurance program.  If the Senate 
approves a similar measure, farmers will be required to pay a $50 
administrative fee to redeem crop insurance benefits.  The measure 
eliminates the need the for emergency crop disaster bills as 
authorized in the 1990 farm bill.  The Senate is scheduled to vote on 
the bill soon.

Sources: "House Passes Bill to Cut Farm Disaster-Aid Costs," WALL 
STREET JOURNAL, August 8, 1994; Juan Miguel Pedrazza, "House 
Covers Crops and Farmers," AGWEEK, August 8, 1994; Robert Greene, 
"Crop Insurance," AP, August 5, 1994.
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Espy: All Farm Programs Up for Debate

Agriculture Secretary Mike Espy told reporters following a Future 
Farmers of America  State Presidents' conference that all farm 
programs will be up for debate under the 1995 farm bill.  
"Everything is on the table, nothing is sacrosanct," Espy said.   

Espy listed several program options currently being considered by 
the USDA, including continuing deficiency payments, income support 
and whether "we eliminate subsidies altogether."  

Joseph Glaubner, the Agriculture Department's principal consultant 
predicted that Congress would create a pilot program based on the 
Iowa Revenue Assurance plan, which could be expanded if 
successful.

Under the Iowa plan farmers would no longer  be paid a per bushel 
subsidy.  Instead, the federal government would make payments 
only to farmers who have suffered severe income losses as the result 
of a drought, flood or collapse in market prices.   And then it would 
pay a farmer only enough to restore their revenue for that year to 
70 percent of their average revenue during the previous five years.   
The USDA calculates that under the Iowa plan, farmers would end up 
receiving less than half the income subsidy they currently receive.

Sources: "No Farm Programs Sacred in 1995 Farm Bill -- Espy," 
REUTER, July 27, 1994; Richard Orr, "Illinois, Iowa Farmers Devising 
Plans to Continue Government Subsidies," CHICAGO TRIBUNE, August 
8, 1994; Peter T. Kilborn, "Iowa Farmers Rebel Against Subsidies, 
Seeking New Setup," NEW YORK TIMES, July 25, 1994.
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House Rejects Dairy Self-Help GATT Bill

The House Agriculture Committee voted 12-10 against including a 
dairy "self-help" ammendment in a GATT implementing legislation 
package.  Gary Hanman, chief executive officer of MidAmerica 
Dairymen, Inc., said prospects for Senate approval of the bill are slim.  
"At best it's an extreme long shot," Hanman said.   Instead he 
predicted "the self-help concept will be part of the 1995 farm bill."

The self-help bill, sponsored by Representative Harold Volkmer (D-
Missouri), aims to create an industry board that would export 
surplus dairy products at world market prices.  

Source: Joel McNair, "Dairy 'Self-Help' Plan Turned Down," AGRI-
VIEW, August 5, 1994.
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Clean Water Act Likely On Hold Until Farm Bill

Chances of the Clean Water Act being rewritten simultaneously with 
the 1995 farm bill or as part of farm legislation are reportedly 
growing.  

The KIPLINGER AGRICULTURE LETTER notes "some EPA officials are 
eyeing the farm bill as a way to attack nonpoint pollution ... [and] 
figure many of their goals on reducing sediment and chemical runoff 
could be accomplished as easily by changing USDA programs as with 
whole new programs run by EPA itself."  

Senator Patrick Leahy (D-Vermont) implied in a July 25 ROLL CALL 
article that he would seek to orient 1995 farm bill legislation more 
toward the preservation of water quality.  "I drafted the 1990 farm 
bill with the Clean Water Act in mind," Leahy wrote.  "It is my 
intention that the 1995 farm bill continue this effort."

The Clean Water Act, currenlty under consideration in Congress,  was 
established in 1972 to protect and maintain the quality of America's 
water supply.

Sources: Senator Patrick Leahy, "Cleaner Water? Farm Bill Can Help 
Too," ROLL CALL, July 25, 1994;  "Field Narrowing for Late Hill 
Action," CONGRESSDAILY, August 8, 1994; KIPLINGER AGRICULTURE 
LETTER, August 5, 1994. 
________________________________________________________
Farm Groups Push for Export Policy Changes

A host of farm organizations  are pushing for redefinition of the 
Export Enhancement Program (EEP) in light of GATT implementation 
requirements and next year's farm law.  The National Association of 
Wheat Growers, the Texas Farm Bureau and the National Council of 
Farmer Cooperatives testified unanimously during a House 
Subcomittee meeting in favor of fully funding and aggressively 
utilizing export development tools, like EEP, to boost U.S. farm sales.  

EEP was created as part of the 1985 farm bill to target foreign 
markets for U.S. exports by competing directly with subsidized 
European export sales.   EEP is slated for $1 billion worth of spending 
cuts to pay for  GATT.  Lawmakers, led by Representative Jill Long 
(D- Indiana), are calling on the Clinton administration to redirect EEP 
funds targeted for GATT cuts to other export promotion programs 
allowable under the trade pact.  

Sources: Jenny Tomkins, "U.S. Lawmakers Seek to Redefine Ag 
Subsidy Programs," REUTER, July 27, 1994; "Farm Groups Voice 
Concers as Farm Bill Debate Opens," MILLING & BAKING NEWS, 
August 9, 1994.
________________________________________________________
Midwest, Plains Grain Farmers Affected Most by Changes in Farm 
Subsidies

An article in the July issue of AGRICULTURAL OUTLOOK (AO) notes 
that households operating cash grain farms in the Midwest and 
Northern Plains "would be most affected by any changes in 
commodity programs."  Over two-thirds of all program payments are 
made to producers who operate in the 14 Midwest and Plains states.  

Source: "Commodity Programs & Farm-Rural Economies," 
AGRICULTURAL OUTLOOK, July, 1994.
________________________________________________________
EVENT

Final Farm Bill Hearing: Thursday, August 11, Harbor Inn, 
Sacramento, California.  If you are unable to attend the forum, but 
want to offer the USDA your views, write "Listening Project," Soil and 
Water Conservation Society, 7515 Northeast Ankeny Road, Ankeny, 
IA 50021-9764.  All comments received prior to August 15 will be 
forwarded to the USDA.
________________________________________________________
Produced by Gigi DiGiacomo, The Institute for Agriculture and Trade 
Policy, 1313 5th Sreet SE, Suite 303, Minneapolis, MN 55414-1546.  
(612) 379-5980.  Fax: (612) 379-5982. E-Mail: [email-masked].  The 
Institute publishes news bulletins on a wide range of environment, 
agriculture, trade, and biotechnology issues.  Bulletins cannot be 
reproduced or distributed without prior permission.  Any use of this 
material must include proper attribution.  A copy of any publication 
citing material from this bulletin is appreciated.
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