Democrats Go After Freedom to Farm

February 4, 2000

The Democrat Policy Committee brought farmers and local officials to Washington this week to launch a series of hearings designed to show the failings of the 1996 farm law. The payments under the so-called Freedom to Farm program "do not make sense as a permanent policy," says the DPC, claiming the law fails to provide adequate income support.

Aaron Krauter, North Dakota farmer, told the committee hearing he does not buy multi-peril crop insurance "because it would have never paid even in our worst years. My lenders agree with me that all we would do is pay the premium and never collect in the bad years when prices are down."

Despite using best management practices, said Krauter, net income from production continues to decline each year. This year, his income and expense statement is negative. "Any corporate business in America would not keep this operation going for very long," he added.

Rick Sampsen, Dagmar, MT, said that despite having the best production averages in the history of his almost 100-year-old farm, "we have been unable to show a profit" for the last three years. "This is in large part due to failed farm policy resulting in wheat prices at 26-year lows, soybean prices as 23-year lows and corn prices at 13-year lows." However, these years would also include 1996, when wheat futures briefly got as high as $7 per bushel.

Pender Sharp, North Carolina farmer, said low prices and recent weather disasters "bring to the forefront the many shortcomings" of the 1996 farm law. The disaster aid provided last year "is only a small token of the losses that farm families incurred.

The agricultural "depression" shows up in fewer local government services, inadequate rural education and failing small businesses in rural communities, he added. "We are creating a dramatic disparity between rural and urban life."

Aaron Sokolowski, Holstein, IA, said his farm doesn. t generate enough income for his family. He "was forced to find a job working Sundays off the farm." He came to the hearing not to keep the government payments coming when the market is lower than average but "to somehow change the market by leveling the playing field and stopping the corporate integrators."