June 25, 1999

House Agriculture Committee Chairman Larry Combest (R-TX) took issue with agriculture Secretary Dan Glickman's reference to supplemental freedom to farm payments as "trade distorting payments." If the regular payments, being made annually under the 1996 farm law, are not trade distorting, neither are the supplemental payments, says Combest.

Glickman made the comment during a hearing before the House Agriculture Committee this week. Combest says the supplemental payments were made after the production year "and could have no effect on producers' planting decisions. How in the world is Congress to help farmers deal with lost markets if even the most non-trade distorting assistance is to be limited by the actions of USDA?"

The secretary said he would review the decision and that pleased Combest. The decision "is one that can have a profound impact on U.S. farmers," Combest said. "Just as the determination was made that AMTA (agricultural marketing transition) payments are not trade distorting, the supplemental AMTA payments should not be considered trade distorting."