While last week’s mood in Washington was not optimistic that a
Farm Bill would be in place for the 2002 crop, this week it appeared that
the impossible might happen. Until Members met and reached an agreement in
the allocation of funding of the titles, staff was limited in the work
that could be done. Further, many of issues that separate the bills of the
two Houses are contentious.
While contentious issues remain, a tentative agreement was reached by
the conferees on March 19th on overall Farm Bill budget funding. This has
opened the way for staffers to continue the work of compromise within the
various titles.
With that agreement in place, NAWG Vice-Presidents Tommy Womack of
Texas, and Mark Gage of North Dakota as well as Domestic Policy Chair,
John Thaemert of Kansas, were in town to work with Patricia Buschette,
Farm Policy Director, to further NAWG’s agenda for a Farm Bill.
During the work on the Hill this week, many contacts were made with
Members of Congress and staffers to move the process forward. Briefing
papers that had been developed for the NAWG March Board meeting had been
refined and polished. A a one pager, the summary or Cliff Notes, if you
will, were used as formats for presentations. These proved to be effective
tools that provided a format to effectively convey the needs of the wheat
industry, and provided a summary for Hill offices.
During Hill visits it became clear that while an agreement for funding
is in place and has allowed the process to move forward, the foundation of
title funding is far from secure. The agreement serves as a framework that
is subject to change.
NAWG is generally pleased with the allocation of $46 billion for the
commodity title. Put in perspective, over ten years, the House’s bill
allocated $48.8 billion on the Commodity Title, while the Senate spent
$39.6 billion. The $46 billion, while not at the level of House spending
for the commodity title, is a favorable compromise. In addition to the $46
billion, conferees allocated $2.6 billion for what is referred to as a
cushion for “conferees’ priorities” and includes dairy, peanuts and sugar.
Other allocations include $17.1 billion for conservation and $6.4
billion for nutrition. An assumed saving of $1.9 billion from crop
insurance allows $3.3 billion for other titles.
The consistent message from the Hill is that a number of divisive
issues remain including payment limitations, dairy, updating acreage base
and yields, commodity loan rate differences, packer ownership, country of
origin labeling, and water rights as well as the delivery mechanisms of
the setting of LDP payments and fixed payments.
A compromise on the packer ownership provision proposes a study rather
than implementation of the ban as set forth in the Senate bill. It has
become increasingly obvious to some Conferees that this proposal could be
as damaging as it is meant to be constructive.
The conventional wisdom on the Hill is that many of the disagreements
will be settled through a compromise of some form. For example, payment
limitations is an issue that has engaged the attention of the country, as
the EWG’s website has provided massive but often misleading statistics
that have caused the public concern. What form limitations may take is not
known but that many Members seek some tightening of the limits.
The setting of LDP and fixed payment allocations will more than likely
be settled through some compromise of the House and Senate figures.
It is generally believed that base updating will be a part of the 2002
Farm Bill while there remains uncertainty about yield updating. Since base
updating is an option under both bills, it is expected to be an option in
the final bill. However, updating of yields has become a much-debated
issue, with its cost an important consideration. Further, there remains
concerns of yield updating, recoupling the farm program to current
production, and putting U.S. producers at risk of being in violation of
WTO compliance.
NAWG officers and staff had personal visits with Senator Pat Roberts
(Kansas), as well as Rep. Collin Peterson (Minnesota), Rep. Ed Whitfield
(Kansas), Rep. Greg Walden (Oregon), Rep. Scott McInnis (Colorado), Rep.
Mike Pence (Indiana), Rep. Richard Pombo (California) and Rep. Earl
Pomeroy (South Dakota).
Officers and staff also discussed issues with staff from the offices of
Sen. Dorgan (North Dakota), Sen. Thad Cochran (Mississippi), Rep. Mark
Kennedy (Minnesota), Sen. Tom Daschle (South Dakota), Rep. Bob Goodlatte
(Virginia), Sen. Pat Roberts (Kansas), Rep. Frank Lucas (Oklahoma), Rep.
Earl Pomeroy (North Dakota) as well as the Senate Agricultural Staff.
Because of concern that limited funding would mean a cutback in
commodity support, this week NAWG sent a letter to wheat conferees,
Conrad, Moran, Lucas and Peterson citing the need to provide equitable
support for the wheat industry. The letter went on to point out that the
wheat industry in their states need their support, and after analysis,
NAWG seeks a minimum $4.04 target price. However a $4.25 target price will
allow the wheat industry in America to remain viable.
While work continues on hammering out a Farm Bill, Senator Pat Roberts
(R-KS) along with co-sponsors Conrad Burns (R-MT) and Larry Craig (R-ID)
have introduced an agricultural supplemental assistance package for the
2002 crops. In his speech on the Senate floor, Senator Roberts presented
the legislation with the understanding that Congress would continue to
work toward the completion of a Farm Bill, but that this legislation “is
an important line in the sand that our producers and bankers can use to
gauge cash flow projections as they work on operating loans for this crop
year.”
The level of assistance under S 2040 includes a $5.047 billion Market
Loss Assistance payment equal to the 2000 AMTA payment. For wheat that
payment is set at $58.8 cents a bushel.
A report from the Ag staff is that the work will continue “seven days a
week.” NAWG’s presence on the Hill will continue through the spring recess
as staffers work through the many issues that must yet be resolved before
Members return the second week in April.
