Reaction to Farm Aid Package Mostly Positive

August 6, 1999

Initial reaction to the Senate's $7.65 billion in emergency aid to farmers has been positive, but the lead Democrat in the battle for $11 billion in assistance vows the fight isn't over. Senate Agriculture Committee Chairman Richard Lugar (R-IN) also admits there will be a "continuing debate" on the aid issue.

Sen. Tom Harkin (D-IA) said "the fight is far from over" and pledged not to give up until Congress responds "adequately" to the "economic devastation in rural America." He added, "The only victory for farmers (in the emergency aid measure) is that after four months of pushing, my Republican colleagues have finally admitted the reality of the farm crisis. But their aid package is not sufficient. We've got a long way to go."

Although he voted for the final package, he said he hoped that as members of Congress go home for the August recess "they'll hear from their constituents about the depth of this crisis. Maybe then Congress will come back and support an adequate level of assistance as the bill heads to conference."

Harkin and Sen. Byron Dorgan (D-ND) announced they will hold a hearing on farm economic conditions in Bondurant, IA, Monday. It's one of a series of hearings the Democratic Policy Committee is holding to discuss the depth of financial difficulties farmers and rural communities are experiencing and whether the current farm law needs to be changed.

Lugar, however, while admitting the debate will continue, also notes that the latest round of emergency aid shoves net farm income beyond the $50 billion total for 1999. That compares to an average net farm income for the 1990s of $45.7 billion. About 47% of the 1999 income total will be federal government payments, says Lugar.

This week's aid package "is only the beginning of a substantial debate which will go on throughout this month and fall," he added. He noted that the House has yet to consider emergency farm assistance, and the Clinton Administration has "remained silent about what the scope of such aid should be."

Sen. Charles Grassley (R-IA) said the package "will send a clear signal to bankers, renters and family farmers that there is going to be additional help coming at a critical time when farmers need to make decision on their marketing and operating plans." He did rue the fact that the package as approved "contains less support for pork producers than we sought" with an earlier version that was defeated.

National Pork Producers Council President John McNutt said the $325 million in livestock and dairy assistance included in the package "is insufficient when compared to the $4 billion lost by pork producers." Leaving it up to USDA to divide the $325 million among livestock and dairy producers will do nothing to halt the slide into bankruptcy predicted for up to one-third of independent pork producers by the end of this year, he added.

The Independent Community Bankers of America called the package "a message sent loud and clear that help is on the way." That "should raise sagging spirits, if not sagging prices in farm country."

Agriculture Secretary Dan Glickman was quoted by BRIDGE NEWS saying the aid is insufficient because it doesn't aim assistance directly at farmers.. He didn't propose that Congress appropriate more money, only that some of the aid should address specific disaster needs. The Clinton Administration has repeatedly declined to ask Congress for specific dollar amounts, and has not sent a specific emergency request to Capitol Hill. This reticence has frustrated some Democrats but has not stopped the Administration from harshly criticizing Republican efforts.

The American Soybean Association endorsed the package and urged the House to go along. "Thousands of farmers are struggling financially. The Senate action to support production agriculture will benefit rural communities and the entire United States," said ASA.

House Agriculture Committee Chairman Larry Combest (R-TX) said that with crop insurance reforms passed by his committee and the Senate aid package, "we confront the farm crisis this season and offer the means for producers to financial protect their crops and livestock for the future."