Remarks by Secretary of Agriculture Dan Glickman News Conference Agriculture Appropriations Bill October 27, 1999 Release No. 0427.99 Remarks As Prepared for Delivery by Secretary of Agriculture Dan Glickman News Conference Agriculture Appropriations Bill October 27, 1999 "With last Friday's signing by the President of the fiscal year 2000 agriculture appropriations bill, USDA is moving quickly to get the emergency money into the hands of our struggling farmers and ranchers. "The $5.5 billion in income assistance payments -- the supplemental AMTA payments -- will be the easiest to distribute, and virtually all of this money will go out in the next few weeks. In fact, we started issuing payments on Monday, only one business day after the President signed the bill. Hundreds of millions of dollars are already in the mail. "This will bring total direct assistance to farmers to $22.5 billion in 1999 the highest in history. The previous high was $16.7 billion in 1987. "Over the next couple of months, we expect to make the rest of the income assistance payments, including those for peanuts (approximately $42 million), tobacco ($328 million), and dairy ($128 million). "The bill also includes $1.2 billion in crop loss disaster assistance and $200 million for livestock assistance. Crop loss payments will be administered in a similar fashion to last year and since the software is ready we will not have to spend precious time deciding whether the single-year or multi-year track provides the producer with the highest payment. We expect sign-up to begin by the end of the year. And for those who sign up we will provide 35% of the money in advance for verified losses. "I am concerned that although Congress agreed to mandatory livestock reporting, there is no money allotted to implement this program. It will cost $4.7 million and so far we don't see any way other than through Congressional action to fund the program. "I'm pleased that the bill offers some risk management tools to our farmers, including $400 million for an estimated 25% premium discount for crop insurance, which will take effect immediately. In doing so, Congress essentially passed into law the same action we took administratively last year. Since the sales date for winter wheat has passed, we are re-opening sales for winter wheat through December 1. "While the bill provides $475 million for oilseeds including soybeans, Congress made the program details particularly complex so we expect it will take some time to get these payments out. "Demands for USDA loans continue to increase and there is very little money in this bill to meet this demand. Right now we have the authority to provide $3 billion in loans, $2 billion less than we need. I'm asking that Congress address farmers' credit needs in a supplemental bill. "While we are working diligently to carry out our responsibilities, don't confuse swift implementation with agreement on principle. My feeling and the President's feeling is that this bill falls short. . "First, I believe that the income loss assistance is inadequately targeted and will be unfairly distributed. The President and I pushed for a payment formula that, logically, considered planting and crop production from this year, when low commodity prices and weak export markets pummeled our farmers and ranchers. "Congress instead opted for a system that links payments to producers' acreage going back nearly a decade and yields going back two decades. As a result, payments will be made based on conditions that may no longer exist. Some farmers will be compensated for a crop that's doing quite well...others for a crop they don't even plant anymore. And some farmers will be receive money for the corn they didn't plant while they are receiving payments for the soybeans they did plant. Meanwhile, some producers who endured the most economic stress and hardship this year will get short-shrifted. "Also, in my opinion, the amount of disaster assistance in the bill is not nearly adequate to compensate farmers for the havoc wreaked by natural forces beyond their control. $1.2 billion Hurricanes Floyd, Bret and Irene and floods in the Northern Plains and drought. We need more disaster assistance, and we will fight for more funds that will provide it. "Ultimately, the lesson to be learned from this emergency assistance bill is that our underlying farm policy is flawed and must be reformed. "The 1996 Farm Bill cut a hole in the safety net, providing insufficient cushion for farmers and ranchers during years when the farm economy goes south. "It left us with a shell of a farm policy forcing ad-hoc payments which are increasing rather than decreasing government support. As I said earlier, 1999 farm payments are now projected to approach $22.5 billion, the highest ever. "Lurching, ad hoc style, from one patchwork emergency bill to the next is not the most effective way to help farmers. "And we shouldn't wait until the expiration of the Farm Bill in 2002. The fact is, with two years of emergency payments to farmers, Congress has already seriously amended the farm bill. What is needed now is a thought-out, well-balance farm bill that we can work on if we address it early in the year -- before we are looking again emergency farm legislation. "I'm not laying all the blame on Congress. I think we need to work together to formulate sound farm policy. I have already offered some very specific suggestions. And we at USDA continue to look at additional ways to improve farm policy and strengthen the safety net for farmers. "Finally, I just want to say a word about across the board cuts that Congress is considering. They would be devastating. For example, under the 1.4% proposal we would have to cut nearly 200 meat and poultry inspectors when there is a need to hire even more inspectors to meet unmet inspection needs. The very emergency payments I spoke about today would have to be scaled back. Salaries and expenses to provide emergency assistance would be cut. There would be less money for rural housing and water and waste systems. There would be harmful cuts to our Women, Infants and Children Program. The list goes on, but the point is, indiscriminate across the board cuts would do a lot of unnecessary damage. "Now, I'll be glad to take questions." #