Senate Approves Spending Bill

October 19, 2000

The Senate overwhelmingly approved the conference report on fiscal year 2001 agricultural appropriations. The bill now goes to the White House where President Clinton is expected to sign it. The bill includes disaster relief for crop losses and a host of other producer-related spending provisions. It also allows restricted sales to Cuba of food and medicine.

Included in the disaster relief provisions is $473 million for dairy farmer payments and $490 million for the Livestock Assistance Program for payments to producers in designated emergency counties. The vote on the bill was 86-8. The major disaster provision allows USDA to spend "such sums as necessary" to make emergency financial assistance available on 2000 crops.

Another $200 million is appropriated for the Rural Community Advancement Program, which provides funds for rural utility loans, rural water systems, business and industry loans and other uses; $35 million in technical assistance for the Conservation Reserve Program, which provides incentives for farmers to take highly erodible land out of production; and $10 million for producers eligible for livestock indemnity payments for disaster losses from drought or anthrax. The legislation also provides for about $20 million in direct payments to wool producers for the 2000 marketing year. The payment rate would be 40 cents per pound of wool to help offset the current 75 cents per pound production cost.

One other part of the bill includes language that may help farmers or ranchers hurt by another country illegally dumping or flooding the U.S. market with a particular commodity. The bill prescribes a system be set up where affected industries can receive money from the fines paid by the countries that have violated trade law.

REUTERS reports that U.S. companies could begin sales of food and medicine to Cuba by next spring, the result of another provision in the appropriations bill. Sales could begin four months after it is signed into law, although regulations to govern sales would have to be written.

Havana says it will not buy a single pill or grain of food because of financing and travel restrictions that were demanded by the anti-Castro faction in Congress. U.S. farm and business groups hope for sales nonetheless, REUTERS reports.

"It's too much in the interest of Cuba to let this slide," Latin America expert Pamela Falk said. It could take a few months to put U.S. regulations in place, she said, but sales negotiations could start at any time.

Click here for the full text of the Conference Report in .pdf format.