15  November 01 
(Sunup Program to be aired 15 November 01)  

1.  Farm bill activity in the Senate continues to move forward, and maybe in other directions.  What’s the latest?

–The Senate Ag Committee  completed markup and passed a new farm bill version today.
–The Harkin bill was used as a vehicle for the bill, but some key changes were made to get the votes to pass it.
–Titles such as credit, trade, rural development, nutrition, forestry, energy and research were left intact.
–The competition title failed in a vote along party lines, a few Southern Democrats helped defeat it.
–The conservation title was also passed with bipartisan support from Lugar.
–The commodity title was rewritten to satisfy Daschle and Conrad.
–Expect some of Harkin’s provisions that failed in committee to be offered as amendments on the floor.
–The past week has also been eventful because other members of the Senate Ag Committee have introduced unique versions of the farm bill:
–Lincoln (D-AR), Hutchinson (R-AR), Miller (D-GA), Helms (R-NC) and other non-committee senators introduced the House version with a few modifications.
–Dayton (D-MN) introduced a farm bill with loan rates even higher than the Harkin version.

2.  So, what’s likely to happen next?

–Daschle will likely schedule the farm bill for a floor vote soon.
–There is likely to be a floor fight on the bill itself or some key provisions.
–There have been 3-5 other farm bills proposed or discussed, and some Senators want the House version.
–Daschle has said he won’t allow the House version to come to the floor.
–The scoring of the cost of the bill is still an issue, especially if it goes over the level agreed to by the previous Congressional budget resolution.
–Even if the Senate passes the Harkin version, there is sure to be a major battle in conference and with the President.

3.  Can you give us some highlights on what was in the rewrite of the commodity title that passed in the Senate Ag Committee?

--Price & Income Support for 2002-06 will allow participants to sign up for one of two options.
--Option One provides both direct payments and counter‑cyclical payments and would requireproducers to update base acres and base yields.
--Option Two provides direct payments based on the payment acres and payment yield for their current production flexibility contracts.
--Loan rates for most crops (except soybeans and minor oilseeds) would be increased.
--Extends milk price support program at $9.90 per hundredweight through 2006 and establishes a national counter‑cyclical income support program for dairy producers.
–Replaces the quota‑based peanut program with a new peanut program that pays benefits on 100 percent of base acres; provides direct payments of $100 per ton for 2002 and 2003, $50 per ton for 2004 and 2005, and $25 per ton for 2006; establishes a safety net price for peanuts of $500 per ton and loan rate of $400 per ton. The payment rate for counter‑cyclical payments would equal the difference between the safety net price minus the direct payment minus the higher of the season average price or the loan rate for the crop; compensates previous peanut quota holders for the loss of the quota asset value at 10 cents per pound per year for 5 years.
–Sets aside $40 million in per‑bushel incentive payments for hard white wheat for domestic and overseas markets.

4.  Congress does seem to be making headway on the spending bills, including the Ag Appropriations bill.  What can you tell us?

–Viewers may recall that the 13 spending bills for funding all government activity are supposed to be passed and signed by 1 Oct, the start of the fiscal year.
–Congress has now passed 6 of the 13, and the President has signed 5.
–The House and Senate have approved the Ag spending bill conference report & it should be going to the President soon.  It includes:
–$75 b. spending for fy 02
–$18.7 b. for discretionary spending
–level or increased spending for most programs/agencies
–The latest continuing resolution, which allows the Federal government to operate without approved spending, runs thru 16 Nov, but will be extended.

5.  Trade negotiations seem to have provided a breakthrough for world trade talks next year.  What do we know?

–Some of the details are still sketchy.
–However, it appears that negotiators have agreed to re-start WTO talks for a new round next year.
–Reps from 142 member countries have been meeting in Doha, Qatar.
–Some of the sticking points included ag subsidies and biotechnology.
–The EU apparently agreed to a compromise.
–We’ll know more in the coming days.
–It is also worth noting that both China and Taiwan became members of WTO this past week.
–While China has great potential as an ag product customer in the future, Taiwan is significangt now.
–Taiwan is consistently among our top 10 foreign customers for ag commodities and products.
–Taiwan last year was our number 5 customer buying about $2 billion in crops and livestock from the US.
–Taiwan reduced tariffs and agreed to end their ban on rice imports, as well as eliminating nontariff barriers, including on chicken, milk and peanuts.

6.  Congress:

a.  Recent/Current:

–Primary focus on spending bills and terrorist attack response

b.  Upcoming:

–Senate may consider farm bill this week or next on the floor.
–Several initiatives on agro-bioterrorism

c.  Congressional Calendar:

–The target adjournment date has passed; date of adjournment unknown (current resolution on spending expires 16 Nov).

 

d.  Key issues for this session of 107th Congress include:

–dealing w/war effort & acts of terrorism
–completing/continuing progress on the next farm bill
--dealing w/Social Security, Medicare, Medicaid
–consider debt reduction & appropriations bills
–campaign finance reform
–education reform
–prescription assistance
–moratoria on mergers in agribusiness
–Endangered Species Act reform
–energy policy reform
–Trade Promotion Authority (TPA–formerly Trade Negotiating Authority TNA, formerly fast track authority FTA)

 

 

 

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