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CONGRESSMAN COLLIN C. PETERSON Minnesota
- 7th District http://www.house.gov/collinpeterson/ FOR IMMEDIATE
RELEASE: April 26, 2002 Peterson Announces Farm Bill Agreement (Washington, DC) – After weeks of discussion,
Congressman Collin C. Peterson (DFL-7th District) announced
that the Farm Bill Conference Committee has reached an agreement on a new
Farm Bill. The six-year bill contains $73.5 billion in funding over current spending
levels to pay for programs in commodities, conservation, rural
development, nutrition, and trade.
The final bill is expected by next week, followed by approval of
the full House and Senate, and then signed by the President.
According to Peterson, a senior member of the Farm
Bill Conference Committee, the process was long and difficult. “We waded through thousands of
pages of proposals and counter-proposals and carved out a compromise,”
Peterson said. “This is the
best deal we could put together at this time. No one got everything they
wanted and there was a lot of give and take on all sides. Is it everything we wanted? No, but it gives us a Farm Bill to
work from. “I am disappointed that the disaster provision was not
included in the Farm Bill, however, I helped raise awareness of the
problems facing many parts of rural Minnesota. Because emergency disaster
aid did not make it into this Farm Bill, I’ve introduced legislation in the House that would provide $1.8
billion for crop loss assistance. I’m cautiously optimistic that
the House Leadership will agree to include this assistance in the
Supplemental Appropriations bill moving through Congress right now.” According to Peterson, marketing loan rates are set
for two years and then slightly lowered afterwards, but are floored for
the duration of the Farm Bill.
Although the final numbers may change, expected loan rates are: wheat $2.80(2.75
after two years), corn $1.98(1.95), barley $1.88(1.85), soybeans
$5.03(4.96), minor oilseeds $.093, and oats $1.35. Target
prices and fixed payment levels are still subject to final budget analysis
by the Congressional Budget Office. A new dairy safety net will be available with
the new Farm Bill as well.
The bill establishes a counter-cyclical National Dairy Program for
three and a half years that makes payments to all U.S. producers up to 2.4
million pounds of milk (133-cow equivalent). The payments will be set at 45% of
the difference between the Boston Class I price and $16.94 per
hundredweight. “We were able
to craft a national dairy payment system that treats all regions the same
and is targeted to smaller farms,” said Peterson. Although not resolved in the Conference Committee, the
issue of packer ownership of livestock will continue to have a voice. “I
can assure everyone out there who called for a ban that you have moved
this issue forward. My colleagues on the Agriculture Committee who opposed
this effort heard the message that something must be done. “I plan to draft
legislation that would update the nearly 100-year old Packers &
Stockyards Act in order gain more market power and transparency for our
farmers,” Peterson said. “I also received assurances that we will hold
hearings that will eventually lead to legislation on this important
issue.” Peterson was the only House member of the Farm Bill
Conference Committee who voiced his support for the elimination of packer
ownership of livestock.
The agreement also includes a new country of origin
labeling requirement on fruits, vegetables, and meat. On the meat side, poultry is
excluded but beef products will be required to be labeled as born and
raised in the United States.
The bill requires the creation of a voluntary system that would
become mandatory in two years.
“Although I have some concerns about the compromised version of
country of origin labeling, I believe this is a positive turn in the
effort to get better labeling of our food.” The Conference Committee also agreed to significantly
increase conservation program spending 80 percent over current levels.
“There has been strong support for conservation in the Farm Bill
discussions,” Peterson said. “I think farmers, sportsmen and
conservationists agree that we share common ground on increasing these
programs.” Funding levels for specific conservation programs may
still be adjusted somewhat in order to remain within the allocated $17.1
billion increase in conservation spending. Increases in conservation spending tentatively include
raising the cap on acreage in the Conservation Reserve Program (CRP) from
36.4 to 39.2 million acres. The committee also agreed to fix the problems
with conservation priority areas in CRP, elevate wildlife as a declared
priority of the program, and to encourage use of CRP land for developing
wind energy and biomass, including hybrid poplar. The Wetland Reserve Program (WRP) and the Wildlife
Habitat Incentives Program (WHIP) are expected to each see significant
increases, with WRP acreage enrollment doubling in size with an additional
1.35 million acres, and WHIP funded at $700 million over the life of the
Farm Bill. It is anticipated that the Environmental Quality
Incentives Program, which provides cost share assistance to farmers, will
increase to $9.0 billion. Tentative agreement was also reached to establish two brand new conservation programs. The two million acre Grassland Reserve Program will preserve and restore native prairies, and a $2.0 billion nationwide Conservation Security Program will provide incentive payments to producers for certain farm practices on working lands. -30-
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