MEMPHIS, Oct. 5 (Special) – House passage of
the Farm Security Act of 2001 is "an important step to putting
effective long-term farm policy in place for the next 10 years,"
said National Cotton Council Chairman James E. Echols.
"We
are deeply grateful to Agriculture Committee Chairman Larry Combest,
the members of the committee and the members of the congressional
staff for their determined and successful effort to craft and pass
this important legislation."
The House passed the $170
billion bill on a 291-120 vote after defeating amendments that would
have shifted $19 billion from commodity programs to conservation and
placed limits on payments farmers receive for marketing loan gains,
loan deficiency payments and loan forfeitures.
"We still have
much work to do," said the Memphis, TN, merchant. "The Senate has
yet to develop its policy recommendations, but we hope the House
action will stimulate movement in the Senate.
"The
Administration’s disappointing last-minute criticism of the House
bill, including comments about the availability of funds for
agriculture programs, is another indication that we have much more
work to do to promote prompt enactment of new farm
policy.
"Finally, the very narrow defeat of the conservation
amendment, the number of votes for the payment limitations amendment
and the extensive press coverage and rhetoric about ‘large,
corporate’ farms during the debate are of concern. We must reinforce
our resolve to educate elected officials on the importance of a
commercially viable production agriculture sector and a healthy
domestic textile industry."
Key provisions of the bill for
cotton, beginning with the 2002 crop, include:
Maintaining
the marketing loan and 3-step competitiveness
provisions;
Stable fixed payments for the 10-year life of the
bill amounting to approximately 6.7 cents per pound for
cotton;
Allowing producers to opt for a modified payment acre
base;
Maintaining the 3-entity rule;
Increasing the
limit on fixed payments to $50,000;
Providing a price-based
counter-cyclical program, with cotton’s target price at 73.6 cents
per pound;
Limits of $75,000 for the counter-cyclical payment
and $150,000 for the marketing loan gain payment;
Continuing
the certificate redemption of loan collateral;
and
Establishing loan eligibility for program crops grown on
non-eligible
farms.
