LIMITS FOR FARM PAYMENTS -- HON. NICK SMITH (Extensions of Remarks - March 06, 2002)

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HON. NICK SMITH OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Tuesday, March 5, 2002

Mr. SMITH of Michigan. Mr. Speaker are we going to have a vote of ``yea'' or ``nay'' on limits for farm payments?

I would first offer a quote by the President from last August, ``There's a lot of medium-sized farmers that need help, and one of the things that we're going to make sure of as we restructure the farm program next year is that the money goes to the people it's meant to help.''

The following is a dear Colleague sent out yesterday and signed by Representatives NICK SMITH, MARCY KAPTURE, JOHN HOSTETTLER, EARL POMEROY, EARL BLUMENAUER, DAN MILLER, DOUG BEREUTER, and TAMMY BALDWIN, and I quote, As the farm bill conferees begin deliberations, I ask for your help in bringing about meaningful federal farm policy with limits on how much money a farm can receive. As President Bush has said, we should work to send him a bill that directs support to those it was meant to help, namely small and mainstream family farms.

In response to the Dear Colleague letter dated February 27, 2001 from Representatives CHAMBLISS and BERRY, one thing should be made clear: there are no effective limits for price support payments farmers may receive in current law, or in the House-passed farm bill. When the $150,000 limit is reached, any producer can continue to receive unlimited price support benefits through loan forfeitures and certificates. According to the Environmental Working Group's website (www.ewg.org) the top 5 recipients from 1996-2000 were: Riceland Foods, Inc. $49 million; Farmers Rice Corporation, $38.2 million; Harvest States Coop, $23.8 million; Tyler Farms, $28.2 million; Producers Rice Mill, Inc., $19.8 million. Do we really want federal farm policy that gives unlimited support to huge farm operations?

Last October, the Smith payment limitation amendment was brought before the House under the 5-minute debate rule. Despite the time limit on debate and organized opposition, the amendment fell just 26 votes short of passage. However, payment limitations successfully moved in the Senate farm bill by a vote of 66-31. Now we must resist the efforts of those who seek to thwart our efforts to cap farm subsidies. Unlike what has been suggested, most states do not have a single farmer who would be affected by the limitations we are trying to establish.

If you have any questions or would like to sign on to the letter of Representatives POMEROY and BEREUTER requesting payment limitations, contact Representative POMEROY's office, Representative BEREUTER's Office, or Representative SMITH's office.
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