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[Page: S4137]  GPO's PDF
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   Ms. SNOWE. Mr. President, I rise today in support of the Farm Security and Rural Development Act of 2002. While previous farm bills have provided very little for the State of Maine and the New England region, I am pleased that the conference report before us, while by no means perfect, provides for a more equitable treatment for the farmers in Maine and the Northeast. I have been in touch with the farmers and growers in Maine throughout the development of the 2002 Farm bill , and they, like I, believe the Northeast has been shortchanged in past Farm bills.

   The State groups, such as the Maine Potato Board, the Maine Wild Blueberry Commission, the Maine Farm Bureau, the Maine Apple Growers, the Northeast Dairy Coalition, the Directors of the State's Farm Service Agency and Maine Rural Development, and the State Conservationist at the National Resource Conservation Service, believe that this conference report starts us down a path toward regional equity from which I would hope we will not stray in the future development of farm policies.

   In addition, on May 6, Commissioner Robert Spear of the Maine Department of Agriculture wrote me similar thoughts, stating that, ``I believe it is

[Page: S4138]  GPO's PDF

   First and foremost, this past year, I made a pledge to the dairy farmers of Maine that I was committed to see that the safety net they had through the now expired Northeast Interstate Dairy Compact would not be pulled out from under them. This has been my top priority for maintaining a way of life in our rural communities, and I am pleased that the Farm bill provides for a dairy program modeled on our Dairy Compact.

   I have stated numerous times on this floor that I would have much preferred that the Northeast Interstate Dairy Compact be reauthorized along with the inclusion of those Northeast States that surround New England that want to join the compact to ensure that people in the region can get fresh, low-priced fluid milk in their grocery stores. In contrast to the provisions contained in the conference report, the beauty of the Northeast Dairy Compact was that it required no Federal funding.

   Under the conference report, dairy farmers will get monthly payments over the next 3 1/2 years when the price of fluid milk drops, not yearly as other commodity programs, but monthly checks that come only when prices are low, and at the very time the producers need a better cash flow to keep the farm and their dairy herds going, as the Northeast Dairy Compact provided.

   I am very pleased that the dairy funding provided is retroactive to December 1, 2001, as it corresponds with the time when milk prices started to drop in New England and continue to remain low. The dairy farmers in my State will be able to count on approximately $3.2 million in added income from last December through this coming July, when it is predicted that prices may start to climb. These payments may literally save some of our small family farms as the Northeast Compact has done in past years, and I urge the USDA to get these retroactive payments out to the dairy farmers just as soon as possible.

   In the future, when the price of fresh fluid milk drops below $16.94 per hundredweight, our dairy farmers will receive 45 percent of the difference of that price and the current price of the fluid milk. This will apply to the first 2.4 million pounds of production of fluid milk or for a dairy herd of around 135-140 cows, a small family farm that has forged a way of life in New England for three and four generations.

   Not only has the dairy safety net been an important provision for me, but a substantial increase in funding for voluntary agriculture conservation programs has been a priority as well. Like the environmental groups I have worked with, such as Environmental Defense and the Environmental Working Group, I am disappointed that the conferees did not keep the Senate's higher funding numbers for funding to farmers to promote conservation in each of our States. But, I am pleased that there is still an 80-percent increase overall for conservation funding in this conference report.

   The funds going to Maine will at the very least be quadrupled, estimated to be close to $23 million by 2005. This is very important funding for a State that is facing pressures from the environmental impacts of growth and sprawl and pressures to preserve open spaces, and also the need to conserve our water resources, in some cases to restore the habitats of the now endangered Atlantic salmon in eight Downeast rivers, a few which flow through the heart of our Maine Wild Blueberry fields where water is important to both.

   The conference report also provides $1.03 billion in mandatory funding for rural development programs. Under the Rural Development Community Water Assistance Grant Program, for instance, Maine will receive $3 million of the $30 million in mandatory funding through 2011 to address drought conditions by making rural areas and small communities eligible for grant funding where there is

   a significant decline in quantity and quality of water.

   This funding is particularly critical when considering that, like many States on the East Coast, Maine has been experiencing an extended period of drought, so the funding that helps residents deal with drought conditions is of great importance. There are, according to the Maine Emergency Management Agency, 1,700 wells that have now gone dry in the State. Total precipitation for 2001 was the driest in 108 years of precipitation monitoring in the State. Precipitation has actually been below average for 22 of the last 24 months, and while we have been helped somewhat by recent snow and rain, NOAA's National Weather Service climate forecasters see limited relief from the drought in the months to come.

   Also, the Rural Water and Waste Facility Grants will provide Maine with up to $90 million over 10 years of additional resources to assist small rural communities with their drinking water and wastewater needs. Reauthorization of Rural Development Programs through 2011 will provide Maine with at least $1.5 million over 10 years for regional planning activities and technical assistance to small businesses.

   Grants to non-profit organizations will be provided to finance the construction, refurbishing, and servicing of individually-owned household water well systems in rural areas for low or moderate income individuals by providing resources to community based organizations to help families with severe drinking water problems.

   There are provisions to train rural firefighters and emergency personnel to assist small communities in Maine with homeland security issues, to support the rural business investment program, and $80 million for loan guarantees to provide local TV signals to rural areas.

   In regard to the Rural Empowerment Zones, Rural Enterprise Communities, and Champion Communities for Direct and Guaranteed Loans for Essential Community facilities, the city of Lewiston, ME, will now be eligible to take advantage of the benefits of Community Facility Direct and Guaranteed Loan Programs. Lewiston was one of only two communities nationwide specifically named in the Farm Bill Conference Report.

   For agricultural research, the conference report expands the Initiative for Future Agriculture and Foods Systems, important to the University of Maine as a real new source of research and development funding. The University has competed successfully for these grants in the past and currently has a $2 million IFAFS grant for looking at small integrated farm systems, along with being cooperators of several other IFAFS grants around the country.

   For the promotion of Maine value-added agricultural products around the world, the Market Access Program will be increased to $200 million annually by 2006, which is up from the current funding of $90 million. The MAP has been invaluable in helping to advertise the quality of our Maine potatoes and wild blueberries, helping growers to market their products abroad. Another $20 million is provided to help growers of fruits and vegetables and other specialty crops combat trade barriers. In addition, $200 million is provided to purchase agriculture products for the School Lunch Program, and products listed as eligible for the program are potatoes, blueberries, and cranberries, all grown in the State.

   Funding for 15 underserved States, of which Maine is one, is doubled, now set at $20 million annually for fiscal years 2003-2007 for marketing assistance, organic farming, pesticide reduction projects, and conservation assistance to help farmers sustain their working lands.

   Somewhat overlooked in the conference report is a newly created title that was included in the Senate-passed bill for energy efficiency and conservation, providing $450 million for research on bio-based fuels, a Federal biofuels purchasing program and efficiency measures that can make renewable energy the cash crop for the 21st Century.

   To help decrease the country's reliance on foreign oil imports, a competitive grant program will support development of biorefineries for conversion of biomass into fuels, chemicals and electricity. A biodiesel fuel education program will be funded at $1 million a year. The conference report will also establish a competitive grants program for energy audits and renewable energy

[Page: S4139]  GPO's PDF

   In addition, $23 million a year from 2003 to 2007 is provided for a loan, loan-guarantee and grant program to help farmers, ranchers and rural small businesses purchase renewable energy systems and make energy efficiency improvements. Also authorized is the continuation of the Commodity Credit Corporation bioenergy program and includes animal byproducts and fat, oils and greases as eligible commodities.

   A competitive grant program is established to support development of biorefineries for conversion of biomass into fuels, chemicals and electricity. A biodiesel fuel education program would be funded at $1 million a year.

   Of great interest to many small forest landowners in Maine is a provision in the conference report's forestry title for $100 million in obligated funds for the Forest Lands Enhancement Program, which will provide financial and technical assistance to small, private, non-industrial forest landowners for a variety of good management practices.

   The conference report also includes critical increases and updates to the nutritional safety net for America's families. The food stamp program fulfills an important need for millions of people nationwide and, thanks to the $6.3 billion in new dollars over the next 10 years for this program that is included in the conference report, countless additional needy families in Maine will be served by this program.

   I am certain that I am not alone when I hear complaints from my State about the administrative difficulties and barriers inherent in Federal programs, and the food stamp program is certainly one that has been in need of simplification. The conference report allows States to simplify and reduce their reporting requirements, and allows States to use a common definition of what counts as income similar to other public assistance programs, and are two essential components for streamlining the administrative burden associated with these benefits.

   Through the last farm bill established in 1996, which is better known as the Freedom to Farm Act, Congress tried to establish a new system of price and income supports for commodities that would lead to a shift toward a more market-oriented agricultural policy by gradually reducing financial support. Unfortunately, we had no crystal ball to tell us that export markets and farm prices would decline. This precipitous situation had Congress enacting four different supplemental measures from 1998 through 2001 that provided an additional $23 billion in non-disaster related farm income commodity assistance. We simply are not being fiscally responsible by continuing to do commodity farm bills on an ad hoc basis, and the conference report will hopefully prevent the need for ad hoc non-disaster supplementals in the future.

   For the 2002 farm bill , I strongly supported the amendment that passed in the Senate farm bill that capped farmers' payment limitations on commodity crops at $275,000 over the House version that had payments capped at $550,000, and I am not pleased that the limitation was raised in conference to $360,000 and the language was weakened on eligibility. I do not represent a State that raises an appreciable amount of commodity crops, so I cannot speak to the funding importance for those in the heartland of the Nation and in the South, but I do know what is important for my State and everywhere I look in this Farm Bill Conference Report in the non-commodity titles, I see funding provisions that will bring opportunities to every corner of the State of Maine.

   Specifically, I ask unanimous consent that a letter of support from the Maine Potato Board be printed in the RECORD, that expresses my feelings well about how important the increased funding for conservation, rural development, and the Market Access Program are to Maine. Part of what Don Flannery, executive director said was `` . . there are concerns that we all have with the bill but we also believe there are many direct benefits to Maine potato growers and Maine agriculture.''

   On balance, I would be remiss to the agricultural and conservation communities in Maine to dismiss this bill or to dismiss President Bush's commitment to U.S. agriculture to sign the 2002 farm bill into law. I am casting a yes vote for the rural communities and for the farmers of Maine who are the backbone of the State's economy.

   There being no objection, the letters was ordered to be printed in the RECORD, as follows:

   MAINE POTATO BOARD,

   Presque Isle, ME, May 8, 2002.
Hon. OLYMPIA J. SNOWE,
Russell Senate Office Building,
Washington, DC.

   DEAR SENATOR SNOWE: I would like to take the opportunity to express our support for the Farm Security Act of 2002 ``Farm Bill'' . While we understand that there are issues that remain contentious and it does not include some of the programs we had hoped for, the Farms Savings Account to name one, we encourage support of the bill and vote for passage.

   As I stated, there are concerns that we all have with the bill , but we also believe there are many direct benefits to Maine potato growers and Maine agriculture. If we are to develop new markets for potatoes and potatoes products, export markets will need to be a major area of development. The increased funding in the Market Access Program is a step in the right direction and potentially will benefit the potato industry in Maine. Another element of the bill that will help develop export markets is the Technical Assistance for Specialty Crops (TASC).

   Conservation is an area that is of the greatest concern for all of agriculture, and this bill will provide an increase in funding to help producers in Maine continue to implement sound conservation practices. The Water Conservation Program will aid agriculture in dealing with an ever increasing demand for water to produce quality crops.

   The Rural Development Title includes funding under existing programs that will be a benefit to the Maine potato industry and Maine agriculture. To remain competitive in a world market place, we must continue to develop products that meet the consumer's demands. The Value-Added Agriculture Market Development Program will do just that. It will allow Maine producers access to funds to develop value-added agriculture products to meet these demands.

   Again, I hope you will support the bill ; it will have a positive impact on Maine agriculture. If you should have any questions or if I can provide any additional information, please contact me at 207-769-5061.

   Sincerely,

   Donald E. Flannery,
Executive Director.

--

   DEPARTMENT OF AGRICULTURE,

   FOOD & RURAL RESOURCES,

   Augusta, ME, May 6, 2002.
Senator OLYMPIA J. SNOWE,
Russell Senate Office Building,
Washington, DC.

   DEAR OLYMPIA: I want to thank you for the time and effort you and your staff spend ensuring the Federal programs and laws work for Maine farmers. This has been especially true over the past year as Congress worked on the Farm Bill .

   The Farm Security and Rural Investment Act of 2002 has some flaws, primarily the lack of payment caps and the bias toward growers in the south. However the legislation provides many benefits to Maine agriculture.

   Whatever disappointment Maine dairy farmers may have over losing the Compact has to be tempered by the provisions establishing the National Dairy Program. Farmers receive a monthly payment of 45 percent of the difference whenever the Class 1 price falls below $16.94. It is retroactive to December 2001. Our calculations show the retroactive clause alone will provide our farmers payments totaling about $3 million.

   The bill spends $15 million annually on the Senior Farmers' Market Nutrition Program. Implemented in Maine through our Senior FarmShare it has proven wildly successful with both farmers and seniors. This year, with funds from a combination of sources, including U.S. Department of Agriculture, we are providing nearly $1 million worth of locally grown fresh fruit and vegetables to low-income elderly in Maine.

   Another program with direct benefits to Maine is one I know you have worked on in the past, financial assistance for apple producers who have suffered from low market prices. The bill provides $94 million for losses in the 2000 crop year.

   The $17.1 billion in conservation funds contained in the bill represents a dramatically increased commitment to the environment.

   Among the highlights for Maine are $985 million for the Farmland Protection Program, a 20-fold increase. Maine leverages state money with funds from this Federal pot through the Land for Maine's Future Program to preserve open space and keep families on working farms.

   The bill sets aside $50 million, to continue conservation and risk management programs authorized in the Agricultural Risk Protection Act of 2000. These programs have already provided money to farmers in Maine for irrigation projects and organic certification. Maine is one of the 15 underserved states eligible for these funds.

   For Maine farmers raising specialty crops, almost all the growers in the state, the bill has a couple of benefits. It substantially increases funding for the Market Access Program, which subsidizes efforts to increase non-branded export promotion. The bill also continues the restrictions on planting fruits and vegetables on program acres, a critical

[Page: S4140]  GPO's PDF

   I could continue. The list I have provided you are just the highlights of the reasons I support the Farm Bill . I believe it is a good improvement over the so-called Freedom to Farm . The bill strengthens the safety net for all farmers, it more equitably distributes federal farm dollars and it provides strong incentives to improve stewardship.

   Thank you and I look forward to continue working with you on issues of importance to Maine farmers.

   Sincerely,

   Robert W. Spear,
Commissioner.

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