Producer Groups Outline Ways to Improve Farm Economy

September 15, 1999

Officials representing the major crop and livestock producers laid out proposals Tuesday before the House Agriculture Committee designed to improve prices for farmers facing a second consecutive year of financial difficulties. The proposals range from tax reform to direct payments to trade issues.

Chandler Keys, vice president, public policy, National Cattlemen's Beef Association, called for tax reform: repealing the so-called death tax; reducing the capital gains tax; authorizing farm and ranch risk management accounts (FARRM accounts); authorizing 100% deductibility of health insurance premiums for the self-employed, and alternative minimum tax relief.

"Aggressive pursuit of solutions to trade disputes, unfair trade restrictions and barriers to U.S. agricultural products is another key area," he said. The World Trade Organization talks open in November and "the frustration with the European Union in particular begs for some hard-nosed discussions with some of our trading partners on what American not only expects but will demand, to ensure continued support for international trade agreements."

The National Farmers Union laid out its "farm crisis relief plan" that would cost almost $17 billion, including almost $12 billion, most of it in supplemental program payments to farmers. "In the near term, the economic crisis confronting agriculture requires immediate attention," said NFU President Leland Swenson. "The NFU supports legislation to provide...producer economic equity, inventory management, agriculture regulatory transition, conservation and credit, and trade and humanitarian assistance."

National Corn Growers Association Chairman Ryland Utlaut told the committee Congress should provide emergency market loss payments equal to a producer's 1999 payments under the 1996 farm law; ensure that a producer's full production is eligible for loan deficiency payments; restore a storage facility loan program to provide storage assistance without encouraging the stockpiling of grain; pass crop insurance reform that increases affordable risk management options, and work to restore lost export markets.

John McNutt, National Pork Producers Council president, reiterated the NPPC's pork producer recovery plan that calls for a one-time direct cash payment of no more than $50,000 to each producer regardless of size of operation; another humanitarian aid package of at least 50,000 tons of pork for Russia; a humanitarian assistance program through which pork would be donated to needy countries, and help informing a national producer-owned cooperative.

The American Farm Bureau Federation called for "at least" $4 billion in additional Agricultural Market Transition Act payments for 1999 and $2 billion to fund concessional sales and food assistance to foreign countries as well as $2 billion for a reformed crop insurance program and reduced regulatory costs.