Roberts Calls for Another Farmer Relief Package

March 22, 2002

Sen. Pat Roberts (R-KS) Thursday introduced an assistance package that protects farmers through the current crop year and provides guidance to producers and their lenders as they work to determine operating loans for spring planting decisions. The $7.35 billion agricultural assistance bill ensures that producers will receive assistance above last year's levels if Congress does not finish a new farm bill in time for it to apply to 2002 crops.

"Most importantly, it allows our nation's farmers and their bankers to plan their investments through 2002," Roberts said. "Timing has become critical. Even if new farm legislation is passed shortly after Congress returns from the Easter recess, it would be too late to implement before late summer. That would be devastating for producers who need to know now how to plan for the new year."

Roberts said his legislation relies on formulas under the 2000 AMTA payment and thus could be implemented more easily by USDA. The year 2000 date was used because it results in higher payments than the 2001 and 2002 AMTA formulas and the 2001 market loss assistance (MLA) formula.

"American farmers know there is no excuse for the current farm bill situation in Congress," Senator Roberts said. "The Senate, in passing a seriously flawed, partisan bill, has slowed the process and delayed much needed assistance from reaching producers.

"My legislation is designed to bridge the gap and protect farmers if a new farm bill can not be passed by Congress for the 2002 crop."

Major provisions of Roberts' bill include market loss assistance (MLA) distributed through the AMTA payment formula with payments equal to the 2000 AMTA payment level. According to USDA, the 2000 AMTA payment for each crop was wheat 58.8 cents/bu; corn 33.4 cents/bu; sorghum 40 cents/bu; barley 25.1 cents/bu; cotton 7.33 cents/lb; rice $2.60/cwt and oats 2.8 cents/bu. This is the payment rate that producers would receive based upon the number of bushels they receive payments on under their existing AMTA contracts.

Also the bill calls for oilseed payments totaling $466 million for direct payments to producers. This should be a payment of approximately 14 cents/bu. Other payments would be for peanuts ($455.21 million for direct payments to producers); honey ($93 million to provide recourse loans to producers for 2002); wool and mohair ($16.94 million in direct payments); cottonseed assistance ($93 million); and specialty crops ($186 million for commodity purchases). No less than $55 million must be used for school lunch program purchases.

In addition, the dairy price support program would be extended through Dec. 31.