The Honorable Tom Harkin
Ranking Member, Senate Agriculture, Nutrition and Forestry Committee
United States Senate
Washington DC 20510

Dear Senator Harkin:

On behalf of America's family farmers and ranchers, we are writing to express our concerns about the depressed state of the production agriculture economy and the need for timely congressional action.

Across the board, agriculture producers are experiencing very difficult economic conditions. Commodity prices are below break-even levels, exports are down, imports are up, and net farm income continues to decline. For these reasons, Congress must act soon. Waiting will only worsen the problems faced by many farmers and ranchers.

We believe additional funds should be provided in the emergency supplemental legislation pending in Congress to meet the 1998/99 production loss, low commodity prices, and credit needs of America's farmers and ranchers.

Specifically, Congress should include emergency funds to:

· Restore equity by raising loan rates for wheat, feed grains, and other commodities to encourage producers to plant for the marketplace and not for government programs.

· In addition to restoring equity on loan rates, Congress should provide an emergency $4 billion fund to allow the Secretary of Agriculture to respond to emergency price and/or production disasters in a timely manner.

· Fully fund USDA credit guarantee and direct lending programs.

· Provide $75 million to address the increased workload of the USDA delivery system.

· Freeze the further reduction of USDA field delivery personnel or offices for the duration of the farm crisis.

· Fully fund the Emergency Livestock Assistance Program to prevent pro-rating payments for the 1998 disaster.

· Fully fund the 1998 and multi-year crop loss disaster program.

· Earmark $1 billion in Commodity Credit Corporation funds for a purchase and donation program for oilseeds.

· Provide funds for direct market loss payments for livestock producers.

· Fully fund the cotton step 2 program.

· Adopt legislation to allow USDA to advance market transition payments for up to one year for each of the remaining years of the 1996 farm bill to make it consistent with what occurred in the 1998 omnibus appropriations bill.

It is vitally important to the future of America's farmers and ranchers that emergency assistance is provided in a timely manner. While we understand the difficulty of funding such a large request, the situation in rural America calls for drastic action.

Senator Harkin, we sincerely appreciate the strong commitment you have shown to the nation's family farmers and ranchers and your persistent efforts to bring relief to the countryside. We thank you for your leadership throughout the farm crisis and for your timely consideration of this important request.

Sincerely,
 

Leland Swenson
President, National Farmers Union
 
 

cc: Members of the Senate Appropriations Committee
Members of the House Appropriations Committee
Members of the Senate Agriculture Committee
Members of the House Agriculture Committee