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“HARD TIMES” mentioning the U.S. Dept of Agriculture was published in the House of Representatives section on pages H6380 on July 26, 1999.
The publication is reproduced in full below:
HARD TIMES
The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Kansas (Mr. Moran) is recognized for 5 minutes.
Mr. MORAN of Kansas. Mr. Speaker, last Thursday I spoke on this House floor about the crisis facing farmers and ranchers. This evening, I continue my efforts to inform my colleagues about the seriousness of the issues and the need to act now.
Last week, I introduced with some of my colleagues legislation that takes an important step to help producers make it through this period of extremely low prices. I encourage my colleagues to support H.R. 2568, the Market Loss Assistance Act of 1999. This straightforward bill provides producers an immediate shot in the arm. Under this bill, producers would receive an additional payment equal to 75 percent of their current farm payment. While this is only one part of a solution to help producers, it is an important part, and it provides immediate assistance. We need to assure our farmers that relief is on its way. Let us begin the debate on disaster assistance now.
Part of the problem is the loss of exports. In 1996, agricultural exports hit a record of $59.9 billion, and since then, agricultural exports have fallen substantially. This year, exports are predicted to be $49 billion for a loss of over 18 percent since 1996, just 3 years ago.
Not surprisingly, as exports have fallen, so has net farm income. Since 1996, net farm income has fallen to $45 billion, a decline of 15 percent. That $45 billion net farm income now stands at the same level as a decade ago. Does anyone think the cost of fertilizer, land payments, equipment, and other farm inputs have remained the same price for the last decade? Of course not.
In the world of agricultural export promotion we have lost the battle on behalf of farmers, and if the current trend continues, we may soon lose the war.
This chart paints a very clear picture on where the United States is on its commitment to helping American farmers and ranchers compete around the world. About $8.45 billion is spent each year on agricultural subsidies. Of this, the United States represents $122 million or roughly only 1.4 percent.
We repeatedly tell our farmers and ranchers to produce for the world and compete for world markets. When your principle export competitor is the European community, the battle for market share under these conditions does not take long. In 1996, the EU spent 69 times more than we spent for export assistance. We cannot let this go on.
Out of this pie, 83.5 percent of the export assistance programs are spent by the European community. Ours are 2.5 percent.
When I first arrived in Congress, the Department of Agriculture indicated that we could not use export promotion funding because prices were too high and that shipping our U.S. farm products overseas might make them even more expensive. Now I am told we cannot use export funds because it would drive the prices even lower; a story I find particularly hard to believe in light of tight storage situation and low farm prices already well under the loan rate.
If the bitter medicine of low prices must be taken, I would recommend we aggressively work through this period and move U.S. agricultural products. Our farmers are locked in a battle competing for international markets. We cannot continue to abandon them. We must use our export programs forcefully, and we must act now.
Mr. Speaker, farmers are willing to compete in the global marketplace, but they cannot compete with foreign treasuries. I urge all my colleagues to join in the fight for the American farmer. We need short term disaster assistance; and for the long run, we need agricultural exports.
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