Senate Praised for Sanctions Reform, Farm Aid

WASHINGTON, D.C., October 18, 2000 -- Passage of the agricultural appropriations bill by the Senate today will lead to resumption of trade with several countries and provide significant emergency assistance for farmers, according to the American Farm Bureau Federation.

The Senate passed the legislation by an 86-to-8 vote. The House passed the agriculture spending bill (H.R. 4461) on Oct. 11 and the White House has indicated President Clinton will sign it.

AFBF President Bob Stallman said he was particularly pleased with the sanctions reform portion of the bill, which lifts the embargo on food and medicine sales to Cuba, Iran, Libya, North Korea and Sudan. He said he is hopeful those countries will soon begin buying U.S. farm goods as an indication of their support of the sanctions reform measure.

"This has been a historic action on the part of both the House and now the Senate," Stallman said. "And with President Clinton saying he will sign the bill, it really is a signal to American farmers and ranchers that our country will no longer use food as a weapon."

He said the most immediate result of the sanctions reform is likely to be additional sales to Iran, which accounts for up to $3 billion of the nearly $6 billion purchased annually by the five counties affected. Stallman said he believes "Iran will come into the corn and wheat markets in the near future and that will certainly be encouraging to our grain producers."

Stallman said Farm Bureau has had a particular interest in Cuba since the relatively short distance to the island nation provides a competitive advantage for U.S.-grown food. He noted that AFBF Vice President Jack Laurie will lead a group of Michigan Farm Bureau and Michigan Bean Commission members to Cuba next month.

Stallman said, "Sales of food to Cuba may begin very slowly, due in part to politics and the continuation of restrictions, such as those affecting third-country financing and travel. However, the agricultural community will continue to work with Congress to further reduce trade restrictions.

"We hope to eventually provide a significant amount of food and feed products -- not only wheat, rice, beans and dairy products but also such items as fruits and vegetables and meat -- particularly as Cuba builds its tourism industry."

The farm leader said the $3.5 billion weather assistance package will provide much needed financial assistance for grain and livestock producers who have suffered various types of economic losses. "These funds will not make them whole but they will certainly help those who have endured severe weather problems this year," he said.

"Also important to farmers with program crops is that the cap on loan deficiency payments and marketing loan gains is being doubled to $150,000. With such low commodity prices, farmers need this additional income to meet increased financial obligations, such items as higher diesel fuel prices and other production costs.

"Extra assistance is needed in extra-bad times and this has been a tough year for farmers and ranchers as prices and incomes have fallen to low levels. We appreciate what Congress and the president are doing to help agriculture in this difficult period," Stallman said.

Contacts:

Don Lipton 202/484-3624 donl@fb.org

Dave Lane 202/484-3610 davel@fb.org

This page was last modified Thu Oct 19, 2000 at 03:56 am