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.
“AGRICULTURE MARKET FAILURE PROTECTION ACT OF 1999” mentioning the U.S. Dept of Agriculture was published in the Senate section on pages S4954-S4955 on May 10, 1999.
The publication is reproduced in full below:
AGRICULTURE MARKET FAILURE PROTECTION ACT OF 1999
Mr. SARBANES. Mr. President, I rise today in support of S. 30, the Agricultural Market Failure Protection Act of 1999. The purpose of this bill, of which I am co-sponsor, is to protect farmers against income loss resulting from severe economic downturns and weather-
related crop losses. In my view this legislation is very timely, considering the current status of our nation's agricultural economy.
We have been experiencing alarming economic conditions in the agricultural sector for over two years. A combination of declining crop prices, reduced yields, and unfavorable export markets have led to a substantial decrease in overall farm incomes. As a nation, we often forget how important it is to protect the vitality of our agricultural producers. We do not want to wait until farms disappear and our supermarkets can no longer stock their shelves to address this situation.
Farmers in my own state of Maryland are not immune to the effects of this crisis. Over the past two years, they have been hit hard by low commodity prices and a widespread drought that has destroyed a significant number of crops. The Maryland Agricultural Statistics Service reports that total farm income fell $8.2 million last year to
$265.4 million overall. This was a 3 percent decline. Since 1996, farm incomes in Maryland have fallen 26 percent. Prices for grain, corn, soybeans, and hogs are all down, some at 20 to 30 year lows. A recently published article from The Baltimore Sun illustrates the impact of this crisis on the economy of Maryland.
In an effort to address this decline, the Agriculture Market Failure Protection Act would revise marketing assistance loan rates, authorize six-month loan extensions, and amend the Internal Revenue Code to temporarily increase the number of years permitted for the carry back of net operating losses for certain farmers. In short, it would help prevent future income loss by giving farmers a chance to run their operations without constantly being at the mercy of the market. With these changes to the Agricultural Market Transition Act, farmers will be able to spread crop sales throughout the entire season, and subsequently allow them to take advantage of higher prices.
The legislation which Senator Daschle has introduced leaves commodities in the hands of farmers, thereby allowing them to make their own marketing decisions for the future. I commend him for introducing this legislation, and in light of the current state of the agricultural economy, I urge all of my colleagues to support S. 30, the Agricultural Market Failure Protection Act of 1999.
I ask to have printed in the Record the Baltimore Sun article.
The article follows.
Md. Farm Income Down 3% in 1998; Grain Growers Suffer Big Losses, But
Poultry, Dairy Farmers Do Well
(By Ted Shelsby)
The extra-fat paychecks of poultry farmers and dairymen last year were not enough to offset big losses by grain growers, and the state ended 1998 with a 3 percent decline in net farm income, according to preliminary estimates released yesterday by the Maryland Agricultural Statistics Service.
Total farm income in Maryland fell $8.2 million last year to $265.4 million.
It was the second consecutive year that Maryland farmers have been hurt by low commodity prices and drought. Farm income last year was 26 percent lower than in 1996.
``This is going to have a serious impact on our rural economy,'' Maryland Department of Agriculture Secretary Henry A. Virts said.
``The farm equipment dealers are going to suffer. The feed dealers are going to suffer. The truck dealers, restaurants and furniture stores are going to suffer, too. Anybody who serves the farm industry is going to feel the decline.''
The drop in farm profit last year was blamed primarily on low commodity prices and a summer drought that destroyed grain crops in Southern Maryland and the Eastern Shore.
``Grain prices were down, down, down last year,'' said Ray Garibay, head of statistics services for the Agriculture Department, in releasing his net income estimate. He added that the prospects for prices are no better for this year as a result of large supplies of grain in storage.
But not all segments of agriculture shared in the hard times.
Garibay said that 1998 will be remembered fondly by poultry and dairy farmers.
``Last year was our best in the past 10 or 12 years,'' said Lewis R. Riley, an Eastern Shore chicken grower and former state agriculture secretary.
``Poultry prices stayed healthy throughout 1998, and in most case farmers were paid a price bonus by the processors,'' Riley said.
He explained that the bonus, which totaled between $5,000 and $6,000 for his farm, is like a profit-sharing plan in which the chicken processors pay farmers above their contract price when wholesale poultry prices rise.
``It's a windfall for good prices,'' Riley said, ``and it made 1998 a very good year for poultry growers.''
State dairy farmers also benefited from record milk prices late last year due to a shortage of milk caused by weather problems in Southern California.
Ed Fry, who operates a dairy farm near Kennedyville, said farmers profited from a shortage of cheese and butter last year. ``High milk prices, coupled with low grain prices, made for a very good year for the dairy industry in general,'' he said.
Fry noted that the good times are coming to a halt. He said the basic formula price of milk set by the U.S. Department of Agriculture dropped 37 percent last week, and farmers will feel the bite in their milk checks beginning next month.
Grain farmers have been feeling a financial pinch for more than a year.
Melvin Baile Jr., past president of the Maryland Grain Producers Association, said corn and soybean growers were lucky to break even last year.
``Prices were off 20 percent for corn and the same for soybean,'' said Baile, who farms 700 acres outside New Windsor in Carroll County.
He said the double whammy of low prices and poor yields was particularly hard on Southern Maryland and Eastern Shore farms that experienced the brunt of last year's drought.
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