Congressman
CHARLIE STENHOLM
17th District of Texas

AG TALK
By Charlie Stenholm
May 16, 2002

President Bush Signs the 2002 Farm Bill into Law

Well, the big agriculture news this week was President Bush’s signature of the 2002 Farm Bill.

I was pleased to join with other Members of Congress and representatives from the nation’s agricultural organizations at the White House for an early Monday morning ceremony during which President Bush signed the 2002 Farm Bill into law.

Contrary to what has been said about this farm bill, it is not a budget buster, and in fact the president’s own budget provided the spending for this farm bill.

It is also worth noting that this six-year farm bill will spend less over that period of time than has been spent in ad hoc emergency payments over the past four years. 

President Bush believes this farm bill will eliminate the need for emergency assistance later this year and in the future.

He also said it breaks a bad fiscal habit of passing annual supplemental assistance measures to provide additional money to farmers. 

The president believes that those unpredictable payments have made it difficult for Congress to live within its own budget, and created uncertainty for farmers, ranchers and their creditors.

In addition, he believes the new farm bill will provide a safety net for farmers, without encouraging over-production and depressed prices. 

The bill that President Bush signed into law this week was more than two years in the making and had the support of 280 Members of the House and 64 Senators. 

It is the result of hard work on the part of Republicans and Democrats alike who recognized a common purpose and worked together on behalf of U.S. agriculture and rural America. 

Our farmers and ranchers have been hit hard in recent years by weather disasters and record low prices that haven’t been seen since the “dust bowl” days of the Great Depression.

I don’t think a perfect farm bill has ever been written, but this is a good compromise and sends a strong message to our producers that the U.S. Government will stand shoulder-to-shoulder with them in the international market place. 

It is my understanding that some folks have started to call USDA to ask about the timing of their first checks under the 2002 Farm Bill.

This past Monday, Farm Services Agency Administrator Jim Little told USDA Radio that farmers should not expect to get payments anytime soon and that it could take months for USDA to begin to send out checks. 

The administrator said that major provisions of the farm bill will not be published until later this fall.

He also pointed out that USDA is still making final payments under the 1996 Agricultural Market Transition Act (AMTA) provisions, and will continue to do so all the way until September, when the Freedom to Farm Act technically expires.

Agriculture Secretary Ann Veneman indicated that it will be a challenge for USDA to implement the many complex changes that will be brought about by this farm bill.

Earlier this week, she established a farm bill working group to plan, coordinate and implement the new farm law. 

The new programs in this bill are widespread and will affect many sectors including farm services, natural resources, conservation, rural development, nutrition, food safety, research, pests and diseases, and international trade. 

The secretary did say, however, that USDA staff has been working for several months to prepare for the farm bill and they are strongly committed to implementing it on a timely and efficient basis. 

In fact, USDA has called in veteran FSA officials from several states to help implement the new farm bill.

Let me emphasize that what is important now is the certainty that payments will be made. 

USDA Reviewing County Loan Rate Adjustments

For more than a year now, USDA has been reviewing county loan rates for some commodities that are out of line with the national average loan rate, especially wheat and corn. USDA is now in the process of deciding whether to make significant adjustments. 

During consideration of the farm bill, some of us anticipated that the Agriculture Secretary would take advantage of the change in national average loan rates to review and adjust the county loan rates, where it was appropriate. 

It appears the secretary will be taking action in this area, and I will be providing further information as it develops on down the line. 

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