Lugar Again Fields Arguments on Farm Income Strength

July 30,1999

Senate Agriculture Committee Chairman Richard Lugar (R-IN) again told Senators projected net farm income for 1999 is comparable to last year and the 1990-97 average. He says he wants a financial assistance plan "based on the assessment of actual farm income needs."

In the second Dear Colleague letter this week, Lugar this time focused on projected government payments farmers will receive: $5 billion through market transition payments under the freedom to farm law and $6.6 billion in loan deficiency payments. With LDPs, he explained, farmers may repay loans at less than the original loan principal if market prices decline below the loan rate and keep the difference between the original loan rate and the actual price received.

"Emotions are understandably running high from areas in our country where farmers are hurting due to weather disasters, low commodity prices or sector-specific challenges," Lugar said. He reiterated his plan to conduct three days of hearings next week, and said agriculture Secretary Dan Glickman "has expressed his willingness to appear...and share the administration's perspective."