For Immediate Release
Tuesday, February 12, 2002

Contact: Beth Lee
202-224-4224

Senate Votes on Important Farm Bill Issues: Packer Ban, Water Rights, and Disaster Aid

Washington D.C. – Today the U.S. Senate voted on three amendments critical to the Farm Bill. The following is an explanation of each amendment with statements from U.S. Senator Chuck Hagel (R-NE):

Senator Grassley’s (R-IA) Amendment to Ban Packer Ownership:Hagel voted for the Grassley Amendment, which was approved by a vote of 53 to 46.

The Grassley amendment keeps restrictions on packer control and ownership of cattle and hogs. Instead of removing the packer restrictions, the amendment clarifies the language so that it would not prohibit producers from selling their livestock through the use of forward contracts and other risk management measures. In December 2001, the Senate voted and passed legislation that restricts ownership of livestock by meat packing plants to no more than 14 days prior to slaughter. Since that time, legitimate questions had been raised regarding the interpretation of the packer restriction.

"This improved language will help create greater competition, access, transparency and fairness into the livestock market while allowing smaller and medium-sized producers to enter into marketing arrangements and contracts that provide them with new opportunities,” Hagel said.

Senator Crapo’s (R-ID) Amendment on Water Rights: Hagel cosponsored and supported this Amendment, which failed by a vote of 45 to 55.

“The Crapo amendment attempted to keep water rights in the hands of the farmers,” Hagel said in a floor statement. “The creation of the Water Conservation Program, as proposed by Senator Reid (D-NV) sets a very dangerous farm policy precedent. It will open the door to federal infringement on state water rights. There will be many unintended consequences for the nation’s agricultural producers – the people we are trying to assist today. The Water Conservation Program is a threat to private property rights and conflicts with individual state water laws and programs. The bottom line is states do not need more federal interference and regulation.”

Disaster Aid Amendment: Hagel voted for the Disaster Aid Amendment, passed the Senate by a vote of 69 to 30.

The amendment authorizes $2.4 billion to assist agriculture producers who suffered losses due to natural disasters last year. The funds will provide disaster aid to eligible agriculture producers through the Crop Disaster Program (CDP) and the Livestock Assistance Program (LAP).

“If this amendment is included in the final agriculture bill agreed to by both the House and Senate then eligible agricultural producers from eligible counties with crops or livestock affected by natural disasters last year will be able to apply for disaster assistance,” Hagel said.