House Ag Panel Retreat Scheduled

January 7, 2000

The House Agriculture Committee holds a retreat at the Wye River Plantation on Maryland's Eastern Shore late this month. The agenda appears to be wide open as the committee attempts to forge directions for legislation and policy issues in 2000.

Ranking Democrat Rep. Charles Stenholm (TX) is expected to push hard for his supplemental income plan that would pay farmers when prices decline below prescribed levels. One question unanswered so far is whether the Clinton Administration will support the Stenholm approach or some modification of his proposal. Some Administration sources have told AgricultureLaw.com the President will endorse a version of Stenholm's plan.

Another major issue of indirect interest to the committee is the level of loan rates for 2000 crops. Although it's mostly guesswork now, it appears the soybean, corn and wheat loan rates will be held at the 1999 levels - $5.26 per bushel for soybeans, $1.89 per bushel for corn and $2.58 per bushel for wheat.

The soybean loan rate could be reduced to $5.13 under existing formulas, but USDA officials tended to throw cold water on that possibility. It's early in the determination process on loan rates; the Office of Management and Budget has not seen a proposal yet from USDA. However, it is likely that an announcement could come later this month.

Loan rates will be important for the House Agriculture Committee since they partially could determine farmers' financial conditions later this year if problems develop with weather or prices or both. Low farm prices are expected again this year, leading to speculation that Congress will enact yet another disaster aid package to shore up farm income. The November elections probably will shorten the congressional legislative year, forcing Congress to act earlier than in the past on farm aid.

The committee also plans a series of field hearings this winter along with hearings in Washington on farm policy and programs. Agriculture Secretary Dan Glickman has been asked to testify and provide details to the committee on what the administration wants to accomplish this year on policy issues.

A committee official says the policy issues to be discussed at the retreat will go far beyond actual farm programs and involve tax relief and environmental issues as well as other regulatory matters that affect farmers.

Another issue still unresolved is crop insurance reform and the broader issue of risk management in general. The House has approved its version of crop insurance reform, but the Senate Agriculture Committee bogged down last year. Committee Chairman Richard Lugar (R-IN) has a risk management proposal that would pay farmers for using certain risk management practices on their farms.

Stenholm has said his bill would not replace the 1996 farm law, but the provisions would pay farmers in addition to the transition payments under the so-called Freedom to Farm law. That takes some of the pressure off significant change to the 1996 law. The committee could accept some type of payment plan that would operate in tandem with current law until the 1996 statute expires in 2002.