The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“SEVERE DROP IN PORK PRICES” mentioning the U.S. Dept of Agriculture was published in the Senate section on pages S3298-S3299 on March 24, 1999.
The publication is reproduced in full below:
SEVERE DROP IN PORK PRICES
Mr. ASHCROFT. Mr. President, I ask that two letters be printed in the Record. Senator Bond and I worked on an amendment to the supplemental appropriations bill that would help the plight of the hog farmers in the state of Missouri and across the nation.
The Missouri Farm Bureau, the Missouri Pork Producers, the American Farm Bureau, and National Pork Producers Council requested our assistance, and we have responded by working with the Appropriations Committee to get an amendment included in the supplemental appropriations bill that makes $250 million available for farmers struggling to survive the severe drop in pork prices. Under the amendment, the U.S. Department of Agriculture would be provided with
$150 million new funds and would be given the authority to use another
$100 million, that the USDA already has, to help hog farmers.
It is the understanding of those of us that have offered this amendment today that the majority of the funds available to the Secretary of Agriculture will be used on behalf of our nation's pork farmers. Last year, all of the major commodity groups received disaster assistance, but the hog farmers received nothing.
The letters from the Missouri Farm Bureau, the American Farm Bureau, and the National Pork Producers Council define further the farmers' interest in our amendment.
The letters follow:
Missouri Farm Bureau Federation,
Jefferson City, MO, March 18, 1999.Hon. John Ashcroft,U.S. Senate, Washington, DC.
Hon. Christopher Bond,U.S. Senate, Washington, DC.
Dear Senators Ashcroft and Bond: On behalf of Missouri Farm Bureau, the state's largest general farm organization, I am writing to express our strong support of your efforts to make additional funding available to the U.S. Department of Agriculture for economic disaster payments to pork producers. We believe that waiving the existing cap on USDA Section 32 funds and appropriating an additional $150 million to Section 32 will pave the way for the Secretary of Agriculture to provide much-needed relief to pork producers.
According to the University of Missouri, cash receipts for the U.S. pork industry are expected to average less than $9 billion in 1998, a reduction of over $4 billion from the 1997 level of $13.2 billion. Although hog prices have recovered from the historic lows experienced over the October 1998-January 1999 period, they remain far below the average cost of production. Economists have now estimated the market failed to reflect normal supply and demand conditions last Fall when hog prices plummeted to 8 cents per pound. Studies indicate that under normal supply and demand conditions prices would have fallen to between $25.87 a hundredweight and $29.41 a hundredweight.
Funds that will be available for direct payments under Section 32 will not compensate pork producers for all the staggering losses experienced in recent months. However, these funds will enable producers to relieve some financial pressure making it easier to survive until profitability returns.
It is critical the Secretary of Agriculture understand the purpose of the pending amendment is to supplement existing Section 32 funds and provide emergency assistance to pork producers. We encourage the Secretary to work with Members of Congress and the agricultural community to develop the guidelines under which the funds will be administered. We do not support using the same parameters used for the recent Small Hog Operator Program.
Thank you for your leadership on this issue.
Sincerely,
Charles E. Kruse,
President.
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March 18, 1999.Hon. John Ashcroft,U.S. Senate, Washington, DC.
Dear Senator Ashcroft: The American Farm Bureau Federation and the National Pork Producers Council commend you for your efforts to help pork producers who have suffered due to the lowest prices since the Great Depression.
We support your amendment to the FY 1999 supplemental appropriations bill, which would provide $150 million to USDA for additional aid to hog farmers. As you well know, U.S. pork producers lost over $2.5 billion in equity in 1998 and are expected to lose another $1 billion in equity in 1999. The nation's pork producers are facing another difficult year due to continued depressed prices and are looking to Congress for direction with regard to the recent economic disaster faced by the U.S. pork industry.
AFBF and NPPC appreciate your efforts on behalf of the nation's pork producers and look forward to working with you on behalf of agriculture.
Sincerely,Dean Kleckner,
President, American Farm Bureau Federation.John McNutt,
President, National Pork Producers Council.
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