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“INTRODUCTION OF H.R. 3744 LEGISLATION AMENDING THE FOOD FOR PEACE PROGRAM” mentioning the U.S. Dept of Agriculture was published in the Extensions of Remarks section on pages E709 on April 29, 1998.
The publication is reproduced in full below:
INTRODUCTION OF H.R. 3744 LEGISLATION AMENDING THE FOOD FOR PEACE
PROGRAM
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HON. GEORGE R. NETHERCUTT, JR.
of washington
in the house of representatives
Wednesday, April 29, 1998
Mr. NETHERCUTT. Mr. Speaker, today I introduced a bill designed to help farmers participating in the PL 480 Food for Peace Program who have experienced trouble moving their product by rail to U.S. ports.
Under PL 480, the Department of Agriculture invites farmers and processors to sell their product (e.g. grain, peas, lentils, barley) to the federal government. At the time they advertise their tender, the Department also specifies where and when the product has to be delivered. Farmers and processors are able to calculate their bids based on the cost to produce, the cost associated with rail shipment, the time normally required to get empty rail cars, and the time needed to have the railroad move cars to the port specified by the Department. Successful bidders sign a contract with the Department prior to shipping their product, but they don't receive payment from the government until after it is delivered to the port.
This arrangement has generally worked well over the years, but last summer and fall a large number of farmers and processors--through no fault of their own--experienced tremendous difficulty abiding by the terms of their contracts with the Department. Rail congestion in the midwest and west caused many shipments to arrive late, thus missing sailing dates and generating expensive damage claims against farmers and processors. My bill would hold farmers and processors harmless against these kinds of damages.
It is unreasonable for the government to hold farmers and processors liable for damages in instances where they make a good faith effort to load and transport their product on a timely basis. Farmers and processors surrender their product to a railroad for shipment to a port, but they have no ability to control its delivery and, under current program rules, they pay damages for late arrival.
As an aside, I am aware that the Department of Agriculture has relieved some PL 480 participants from damages arising from last summer's rail service difficulties in the midwest, but I don't think it prudent to leave the issue of future damages to the discretion of the Department. Farmers and processors need the certainty of knowing that they will not be liable for transportation problems beyond their control.
I ask all Members to cosponsor this legislation. The PL 480 Food for Peace Program is an important market for many farmers and processors, but under the current rules, it presents a whole host of unknowns that jeopardize future participation, especially in light of ongoing rail service problems.
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