Senators Urge More for Agriculture

March 21, 2001

A group of senators has asked the Senate Budget Committee to authorize yet another farmer economic bailout program similar to what was appropriated last year or about $10 billion. "We support making market loss assistance available so that the total amount of assistance available through the 2001 Agricultural Market Transition Act payment and the market loss assistance payments will be the same as was available for the 2000 crop," they said in a letter to committee Chairman Pete V. Domenici.

They admitted it was "unusual" to request funds for the current fiscal year be provided in a budget resolution for the next fiscal year, "but the financial stress in U.S. agriculture is extraordinary." Low commodity prices and depressed farm income persist, they reasoned. Net cash arm income this year will be the lowest since 1994 without supplemental assistance and about $4 billion less than the average of the 1990s, they noted a recent USDA projection.

The senators also noted "rapidly increasing input costs including fuel, fertilizer and interest rates" that are having a significant impact on farming. "In order to provide effective, predictable financial support which also allows farmers and ranchers to be competitive, sufficient funding will be needed to allow the agriculture committee to ultimately develop a comprehensive package covering major commodities in addition to livestock and specialty corps, rural development, trade and conservation initiatives. Until new legislation can be enacted, it is essential that Congress provide emergency economic assistance necessary to alleviate the current financial crisis."

Sen. Thad Cochran (R-MS) was the lead senator on the letter along with Sen. John Breaux (D-LA). A total of 21 senators signed the letter.