On Thursday, the Senate Agriculture Committee passed a farm bill
commodity proposal supported and crafted by Senators Harkin (D-IA),
Daschle (D-SD), and Conrad (D-ND). Action on the commodity title and the
conservation title completed committee action on the Farm Bill, clearing
the way for movement to the Senate floor.
NAWG officers Tommy Womack and Terry Detrick, along with NAWG Domestic
Policy Chair Al Skogen, were back in Washington this week carrying our
priorities to the Hill and working with Senate offices.
The bill as passed by the committee includes several items that
correspond in principle with NAWG’s policy goals for the farm bill. NAWG
is still awaiting final copies of the passed bill, so the following
description is based on the best information we have at the moment but is
subject to revision.
The legislation sets a target price for wheat of $3.45 per bushel
payable on 100% of base production; last minute changes secured by
Senators Conrad, Daschle, and Baucus preserved the option of keeping
current base acres, rather than being compelled to update base, as earlier
drafts of the bill would have caused. The $3.45 number consists of a $3.00
loan rate and a 45¢ fixed payment in the first two years. The fixed
payment declines in years 3-5, but the $3.45 target remains in place and
the balance of the protection is provided by a countercyclical payment.
Corresponding values for barley are a $2.20 target, with a $2.00 loan rate
and a declining fixed payment starting at 20¢.
Republicans, led by Senators Thad Cochran (R-MS), Pat Roberts (R-KS),
and Craig Thomas (R-WY) offered a substitute in committee which failed on
a straight party line vote (Ranking Member Richard Lugar (R-IN)
abstained). Verbal descriptions from Republican staff indicated that the
bill provided higher levels of fixed payments, loan rates equivalent to
the House-passed bill, and FFARM accounts as a countercyclical mechanism.
The Democratic proposal passed the Committee on a vote of 12-9.
“We’re pleased by the hard work of Senators and staff of both parties
to offer proposals, and thank them for their efforts on behalf of wheat
growers,” said NAWG President Dusty Tallman. “We know that regardless of
party affiliation, our wheat-state Senators were working for our best
long-term interests, and we appreciate them all for that.”
“The critical thing for us is to get a Farm Bill passed this year,”
said Tallman. “We view the proposal that passed the Committee as the one
that is most readily conferenced with the House-passed bill, most likely
to pass the full Senate, and generally consistent with our policy
objectives. While we would like to see adjustments in some of the
provisions, it is the best proposal we’ve seen from the Senate Committee.
Democratic Senators went to great effort to fix objectionable provisions
on base acres in this bill, and their success in this area won our
support.”
The committee earlier considered a competition title to the farm bill
would, among other things, establish a USDA Office of Special Counsel for
Competition Matters that would investigate, prosecute and regulate
agricultural mergers and competition issues. Arguments against the terms
of the title charged that such legislation would create unfair and
unnecessary burdens and would result in unnecessary hurdles to business.
The title that was stricken by a vote of 12 to 9.
The country of origin provision was introduced by Senator Paul
Wellstone of Minnesota as an amendment to the miscellaneous title,
requiring retail labeling of meat, fish and produce by country of origin.
Under the terms of this provision retailers of beef, lamb, pork and
perishable agricultural commodities must inform consumers of the country
of origin of the commodity.
