Senate Could Have Showdown Votes Today on Ag Aid

August 3, 1999

Republicans and Democrats may get the chance to vote on their respective farmer assistance packages in the Senate today. The Democrats will attempt to get a $10.8 billion emergency assistance attached to the agricultural appropriations bill; Republicans have a more modest $7 billion proposal. Meanwhile, the Senate Agriculture Committee holds a hearing on farm income problems today at 9 a.m.

The Democrats' package includes direct income assistance, additional disaster assistance, emergency conservation assistance, livestock feed assistance, cotton Step 2 money, money for humanitarian donations, dairy assistance, cash payments to peanut growers, funds for Farm Service Agency salaries and expenses and farm guaranteed loans and rural economic assistance. Nearly $1 billion would go to weather-related disasters. The plan would continue a special discount on crop insurance premiums that began this year.

Much of the Republicans' assistance would go to doubling the annual payments made under the freedom to farm law. Sen. Thad Cochran (R-MS) says in that way, the money will go directly to farmers, not into USDA programs. The Republican plan also includes payments to producers of oilseeds, milk and peanuts, as well as ending an assessment that is now levied on sugar growers. Unlike the Democratic plan, the amendment offered by Republicans does not feature the crop insurance premium discount.

The Republican plan would also double the current payment limit on loan deficiency payments, the payments farmers receive when prices are below the loan rate. Because that gap has widened, more farmers are expected to be hit by the limit this year.

In one indication of how perceptions of the farm income crisis have changed, the Republican package is more expensive than the proposal Democrats made a few months ago, while the Democratic proposal has grown by 85% since then.

The first vote could come this afternoon, but not before Senate Agriculture Committee Chairman Richard Lugar (R-IN) holds a hearing on the subject of farm aid. That comes today at 9 a.m. in 216 Hart Building with Secretary of Agriculture Dan Glickman testifying.

Secretary of Agriculture Dan Glickman and J.B. Penn, senior vice president of Sparks Companies, Inc., will testify. Additional hearings may be held Wednesday and Thursday, depending on floor action.

Consideration of dairy legislation may wait until Wednesday. Amendments are expected that would extend the life of the Northeast Dairy Compact, authorize a massive southern compact, lock in higher prices for dairy farmers under USDA's milk marketing order reform and extend the milk price support program. Midwest senators may offer a host of amendments in an attempt to filibuster the dairy debate.