July 26, 1999
Radio Actuality: Maria Leavey (703) 418-2060
Plan Would Provide Desperately Needed Economic Assistance
to Farm Families and Rural Communities
WASHINGTON --- Stating that, "farm families and rural communities are facing
the worst economic crisis since the mid-1980s and perhaps since the Great
Depression," U.S. Senator Tom Harkin (D-IA) today announced that he along
with Senate Democratic Leader Tom Daschle and Farm State Democrats will
offer an amendment to the Agriculture Appropriations bill to provide approximately
$9.9 billion in emergency assistance to rural America. Harkin, who is the
ranking Democrat on the Senate Agriculture Committee and a senior member
of the Appropriations Committee, has been the leader in Congress pushing
to provide urgently needed assistance in the midst of the current farm
crisis.
"Congress is now preoccupied with passing a tax bill," said Harkin. "This
Congress is bound and determined to give windfalls to those in our society
with the highest incomes. By contrast, we are trying to get some help out
to farm families who are struggling to show any income at all.
A recent U.S. Department of Agriculture report projected the 1999/2000
season average corn and soybean prices at $1.85/bushel and $4.30/bushel.
These projections are half of the levels seen a few years ago and comparable
to the prices of the 1980's farm crisis. The report cites strong production
and relatively weak exports as the primary reasons for the continued low
prices. These factors are not expected to change before this year's harvest.
"We have crafted an emergency package that deserves immediate attention
by Congress. There is no justification for further delay. I started working
in May to get this emergency package passed, and since then the situation
in rural America has only gotten worse. I will not give up until this Congress
responds to the economic devastation in rural America," said Harkin.
The Senate Democratic plan would provide $9.9 billion in emergency assistance
to farmers. The core of the package would provide additional disaster assistance
and income support through the formula for Agricultural Marketing Transition
Assistance payments. The amendment will also include additional types of
assistance including funds for the Farm Service Agency, dairy income assistance,
cotton marketing assistance, and assistance to pork and other livestock
producers, as well as soybean producers.
"Rural America urgently needs a substantial emergency package," said Harkin.
"But, we can't keep coming back year after year -- or even more frequently
-- for economic assistance. Rural America deserves a farm policy that works.
The Freedom to Farm bill has failed miserably. Farmers must have a farm
policy that brings some economic stability and farm income protection.
Congress must begin a major overhaul to repair the safety net that was
shredded in the Freedom to Farm bill."
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