Miller contact: 202-224-7777
Cleland contact: 202-224-0082

April 26, 2002

Miller, Cleland: Final Agreement on Farm Bill 'Great for Georgia'

WASHINGTON - U.S. Senators Zell Miller and Max Cleland praised the final agreement that was reached today on a new Farm Bill, saying it includes an adequate payment limit for all farmers and good funding levels for two of Georgia's largest crops: peanuts and cotton.

The final agreement came two days after Miller, Cleland and four other Southern senators met with Majority Leader Tom Daschle and pushed him to make sure the final bill meets the pressing needs of Southern farmers.

"It took a long time, but the good news is we now have a Farm Bill that is great for Georgia," Miller said.

Senator Cleland said, "The agreement that was reached today looks like a good outcome for Georgia farmers. This was a very difficult conference process, but even so, it took too long and I think hurt farmers in the process. Now that a deal is on the table however, I do think Georgia farmers will benefit from the new Farm Bill."

Although the bill did not keep the total overall funding for peanuts at the higher level passed by the Senate, the new total is about $400 million more than the amount passed by the House. Also, the House-Senate conferees did agree to the higher 11-cent buyout rate for peanut quota holders that Miller and Cleland persuaded the Senate to pass. Quota holders will receive 11 cents per pound of quota for five years.

"This is a victory for Georgia quota holders," Miller said. "This level of funding will help them make a smoother transition from the quota system to the new market system."

The funding levels for the peanut program in the new Farm Bill are a compromise between the levels passed by the House and Senate. They include a loan rate of $355 per ton, a target price of $495 per ton and a direct payment of $36 per ton. The bill also kept language supported by Cleland and Miller requiring labels on peanut products to indicate their country of origin, giving consumers the ability to choose American-grown peanuts.

Senator Cleland said, "While I would like to have seen the larger Senate amount for peanut target prices and loan rates retained, the compromise was higher than the original figure in the House of Representatives' plan on both accounts. I was especially pleased that the Miller-Cleland quota buy out program has been retained in conference at 11 cents a pound for five years, and that my country of origin measure for peanut labeling was also included."

Cleland continued, "The inclusion of a separate peanut payment limitation was essential, and an improvement over the Senate version that I was very happy to see included. With this compromise, the bill is a net gain for Georgia."

The new bill sets the annual limit on federal crop payments at $360,000, which is higher than the $275,000 payment limit passed by the Senate, but less than the current payment limit of $460,000. Farms in the South are affected more by the payment limits because they tend to be larger, more costly operations. Also, Southern farmers are already struggling with skyrocketing production costs and low commodity prices.

In addition to the higher payment limits, the new Farm Bill also maintains use of generic certificates and the "three-entity" rule.

Senator Miller said, "I'm very glad we came out with a higher payment limit than what the Senate passed. Our farmers in Georgia and across the South desperately needed a fairer payment limit."

For cotton farmers, the new Farm Bill is a compromise between the House and Senate funding levels. The conferees settled on a loan rate of 52 cents per pound, a direct payment of 6.67 cents per pound and a target price of 72 cents per pound.

Miller and Cleland said they remain hopeful that the new Farm Bill can be implemented for this growing season. Miller, Cleland and other senators sent a letter to Agriculture Secretary Ann Veneman in February, calling on her to begin drafting the new rules and regulations for a new Farm Bill back then in anticipation of its passage.

Senator Miller said, "Our peanut farmers have been in limbo long enough, and they need to be able to hit the ground running. I hope for our farmers' sake that the USDA will have the new rules ready to go ASAP."

The 1996 Farm Bill expires at the end of this year. The new Farm Bill sets the nation's farm policy for the next six years. Agriculture is Georgia's top industry and provides one of every six jobs.

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