The Senate’s ‘landmark’ Farm 8i11... a summary
WASHINGTON - The Senate
Saturday, by a vote of 61-28, passed
and sent to a House-Senate con
ference H.R. 2100, an omnibus
farm bill reauthorizing the major
Federal farm programs.
The four-year farm bill reduces
loan rates for wheat, feed grains,
cotton and rice, sets target prices
for those program commodities,
reauthorizes other commodity
programs, extends and expands
export programs of the U.S.
Department of Agriculture,
contains strong, new, soil con
servation provisions and
strengthens the credit programs of
the Farmers Home Ad
ministration.
The cost of the main commodity
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provisions of the bill is projected to
be more than $5O billion over the
next three fiscal years. The
Congressional Budget Resolution,
passed the beginning of August,
assumes $38.8 billion for
agriculture programs.
Senator Jesse Helms, Chairman
of the Agriculture Committee,
voted against final passage of the
bill, and said that despite im
provements made to the bill during
Senate action, it still fails to make
changes in farm programs
necessary to restore health to
American agriculture.
“The bill passed by the Senate
contains many improvements over
the bill reported by the Agriculture
Committee,” said Helms. “For
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tunately, we were able to reduce
the cost of the bill by about $lO
billion through the amendment
process, and other desirable
changes were made in the bill.”
“As I have said, there is much in
this bill that is good. However, it
continues many policy flaws found
in current law. While the
movement to market-oriented loan
rates makes this landmark
legislation by setting the stage for
American agriculture to become
competitive again, the direct
subsidies are still set at levels that
will encourage surplus production.
Billions of dollars of income
supports will still be paid out in
discriminately, resulting in
billions of dollars of payments to
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the largest fanners who need the
help the least. And, the bill calls for
spending far in excess of the
targets set by Congress in the
budget resolution.”
“I am encouraged by the
progress and improvement made
on the floor. I think we have a very
good chance to shape a bill in
conference that will be both good
policy and fiscally sound. These
are the two tests that must be met
if we are to produce a bill the
President will be able to sign,”
said Helms.
“The conference committee
should begin its work by the first or
second week in December. If the
conferees can work together
toward the goal of a bill that is
good policy without breaking the
budget, I believe we can have a
farm bill enacted by the end of the
year,” concluded the Chairman.
Major provisions of the bill in
clude:
EXPORT TITLES:
-Expands the intermediate
export credit program to authorize
the guarantee of loans of 3 to 10
years and requires loan guaran
tees at the following levels: no less
than $5OO million for fiscal years
1986-88, and no more than $5OO
million for fiscal year 1989.
-Requires the Commodity
Credit Corporation to make
available at least $5 billion in
short-term export credit
guarantees for each of the fiscal
years 1986-89.
-Extends the Agricultural
Export Credit Revolving Fund.
-Requires the Secretary to use
at least $325 million of CCC funds
or CCC commodities in each of the
fiscal years 1986-68, and such funds
and commodities as the Secretary
deems necessary for each of the
fiscal years 1989-91, for export
assistance for U.S. commodities
adversely affected by the foreign
subsidies, import quotas, or unfair
trade practices used by other
countries.
-Requires the Secretary to sell
for export at least 150,000 metric
tons of CCC-owned dairy products
in each of the fiscal years 1986-88.
-Requires that at least $2 billion
of CCC-owned commodities be
it'
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used to enhance and encourage the
export sales of U.S. agricultural
commodities during fiscal years
1966-88.
--Exempts certain U.S.
Department of Agriculture export
programs - those referred to as
“commercial” sales programs
from cargo preference
requirements, including those
which use CCC stocks to enhance
U.S. agricultural exports, the
“blended credit” program, and
short-term credit programs. Cargo
preference requirements on
“concessional” sales programs
(Public Law 480 and section 416 of
the Agricultural Act of 1949) will be
increased from the current 50
percent requirement of 75 percent
over a period of three years, as
follows: a 10 percent increase in
1986 and 1987, and a third increase
of 5 percent in 1988. Funding for the
increased share in Cargo
preference requirements will be
through the establishment of a
borrowing authority in the
Department of Transportation.
P.L.480;
-Requires that at least 25 per
cent of the value of title I sales, or
500,000 metric tons (whichever is
greater), but not more than 50
percent of such sales be sales for
foreign currencies. The foreign
currency generated by these sales
will be converted into dollars over
a 10- to 30-year time period, the
conversion to begin on a date 10
years after the sale of the com
modities.
-Authorizes the President to
enter into agreements with
financial intermediaries in foreign
countries under which the ‘
President would lend the foreign
currency generated from com
modity sales to the intermediary
for the purpose of making loans to
finance private enterprise in
vestment within a developing
country at reasonable rates of
interest.
-L er title 11, requires the
distribution for nonemergency
purposes of 1.9 million metric tons
in each of fiscal years 1986 through
1989, of which at least 1.425 million
metric tons must be distributed
(Turn to Page Dl2)
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301-452-8521