Dairy assessment
(Continued from Page A 26)
uses to collect income support
payments on 92 percent of the total
acreage eligible for planting to the
basic crops (as long as 50 percent
of the “permitted acreage” was
actually used for the basic .crop).
That provision was interpreted by
the Agriculture Department as
allowing farmers to use the ad
ditional idled acreage for any
nonprogram crops while-' still
collecting income payments on 92
percent of permitted program
acreage. H.R. 1614 would, in effect,
ban eligibility for support
payments on the additional idled
acreage if a farmer uses it for
crops which have not been
specifically approved for this
purpose by the Secretary of
Agriculture and that approval
could be given only for com
modities designated by the bill and
only if planting a particular
commodity on the additional idled
acres would not drive down prices
and incomes for existing producers
of the commodity involved. (Note:
The commodities which the
Secretary could allow on ad
ditional idled acres, but only if this
would not harm existing
producers, include specifically
designated relatively minor or
C iha Cicig)
experimental crops, such as sweet
sorghum, guar and kenaf, and do
NOT include commodities such as
dry beans, peanuts, tobacco, and
potatoes.) Haying and grazing on
the additional idled acres will be
allowed, at the option of state
Agricultural Stabilization and
Conservation Committees, unless
the Secretary of Agriculture rules
this would have a serious adverse
economic impact. The new rule on
nonprogram crops would not apply
to farmers who planted or con
tracted to plant such crops on
additional idled land before Feb.
26,1986. (Note: For producers who
plant nonprogram crops on ad
ditional idled acreage without
seeking income support payments
on the acreage, the bill provides
that planting history Of the far
mer’s basic crop will be protected
on up to half of his nonprogram
crop acres in 1986 and 1987, up to 35
percent in 1988 and 20 percent in
1989, with no protection in 1990.)
The EXPORT ASSISTANCE
PROGRAMS section reduces
mandatory funding levels for two
export promotion programs. In the
Targeted Export Assistance
program, which initially required
the Agriculture Department to use
$325 million annually in cash or
commodities for each of five fiscal
years beginning with 1986 (to
combat unfair trade practices of
other exporters), the new bill
reduces the mandatory floor to
$llO million for the first three
years and returns to $325 million
for the 1989 and 1990 fiscal years.
In an Export Enhancement
Program which initially required
use of not less than $2 billion in
commodities as export “bonuses”
during the period ending Sept. 30,
1988, the new law sets the
minimum at $1 billion but gives the
Secretary of Agriculture discretion
togouptoatota!ofsl.sbillion. '
The ADVANCE COMMODITY
LOAN provision is a “sense of
Congress” provision urging the
Secretary of Agriculture to ac
tivate a section of the 1985 farm
law which gives him discretionary
authority to make advance
commodity support loans to
producers of any crop for which
ordinary post-harvest support
loans are available. The advance
loans, if made, would be on a
“recourse” basis, meaning that
they must be repaid and cannot be
satisfied by forfeiting the com
modity collateral to the govern
ment. In addition, producers
getting any such loans would have
to protect their crops with crop
insurance. Under H.E. 1614, the
Secretary is urged to approve
advance loans to producers who
Weeds, grasses and trash in no-till
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cannot otherwise get enough credit
to finance planting of 1986 crops.
OTHER PROVISIONS of H.R.
1614 include:
- Authority for wheat and feed
grain growers to graze or harvest
hay during at least five principal
growing-season months on acreage
held out of 1986 grain production to
satisfy acreage reduction program
requirements.
- A section requiring the
Secretary of Agriculture to hold
public hearings on and to im
plement a marketwide service
payment plan allowing dairy
cooperatives to get compensation
for processing non-member milk
and providing other services such
as transporting milk from other
areas.
- A section reducing the salary
level for the post of presidential
Special Assistant for Agricultural
Trade and Food Assistance which
was created by the 1985 farm law.
The level would be set at not less
than the amount paid to Executive
Level 111 officials (instead of the
level I, cabinet Secretary level
originally provided), and ap
pointment of the new aide will be
required by May 1,1986.
- Discretionary authority for
the Agriculture Department’s
Commodity Credit Corporation to
export up to $3O million worth of
surplus commodities annually and
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to use the money to finance
research and development on
external combustion engines
which use non-petroleum fuels.
- A directive to the Agency for
International Development
requiring submission by April 15 of
a plan for using reserve funds for
African famine relief.
- A directive requiring the
administration to announce by
March 31 the amount of surplus
commodities owned by the
Agriculture Department’s Com
modity Credit Corporation which
will be available during the
current fiscal year for overseas
donation under a program (Section
416) provided by existing law.
-An extension of time for
completing studies of quality
control systems used in the food
stamp program.
- A provision allowing federally
licensed operators of grain
warehouses to transfer stored
commodities to other licensed
warehouses under terms to be
specified in regulations by the
Secretary of Agriculture.
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