5 December 01 
(Sunup Program to be aired 6 December 01)  

1.                  Farm bill activity in the Senate continues to move forward on the farm bill.  What’s the latest?

–Viewers will recall that the Senate Ag Committee passed its version of the next farm bill 3 weeks ago.
–The floor debate is now beginning, and may continue into next week.
–The Republicans had initially indicated they would slow the process down.
–Now, Sen. Lott is saying the debate can proceed, but alternatives and amendments should be considered.
–House Ag Committee Chair Combest apparently wants to be leader of the Senate–he’s telling them to get it done this week, that’s its unconscionable to delay further.

2.         Let’s take a moment to compare the House bill and what we know will be introduced on the floor of the Senate.

House                                         Senate
Title                                      HR 2646                                        S 1731
length/cost                        10 yrs/$170 b.                               5 yrs/$94.4 b.
Direct (flex) payment             yes                                                       Yes
Counter-cyclical pymt            yes                                                       Yes
Marketing loan gains/
LDPs                                       Yes                                                      Yes
Flexibility                                 Yes                                                      Yes
More conserv. funds               yes                                                       Yes
Maintain trade/rural
dev./nutrition/other
programs                                 Yes                                                      Yes
Direct & counter-
cyclical payment
(wheat) $3.64/bu                 A-$3.45*                                             B-$3.45

Total payment limits           $275,000                                            $250,000

*Note: based on current language in draft proposed bill.

3.         What conclusions are you reaching in the preliminary evaluation of the 2 bills?

–They’re both much more similar than when Harkin first introduced a bill in the Senate Ag Committee.
–The House bill gives higher direct & counter-cyclical payments than does the Senate bill.
–However, the new innovations in the conservation title of the Senate bill provide a potential for more producers to get more from the Senate Ag Committee bill.
–The Senate Ag Committee bill is more restrictive on payment limits, but neither bill does anything to address the concerns that many have with distribution of payments.
–The Senate offers more funding for most other areas of the bill (rural development, dairy, trade, nutrition, forestry, research)
–Both generally maintain agriculture’s dependence on government payments, and do nothing to encourage a transition to a free market with a sustainable price.
–The Senate’s higher loan rates may harm competitiveness.

4.         How smoothly is the floor debate likely to go?

–Unless party discipline constrains the debate and focuses the vote this could be ugly and long.
–There are amendments to both increase and decrease funding for conservation, dairy, & trade.
–There are amendments to both increase and decrease loan rates.
–There are amendments to substitute the entire bill or portions thereof with a comprehensive risk management program, a farm savings account, or an alternative support mechanism.
–Some Senators want to introduce the House version in the Senate.
–The Administration has sent mixed signals on what it wants.
–As of now, there is no bipartisan consensus with votes to pass.

5.         It’s late in the year.  What deadlines is Congress facing?

–The latest continuing resolution on extended debate on the spending bills is 7 Dec, but that will be extended to 14 or 21 Dec.
–Just last week, they were saying Congress would adjourn 14 Dec.  This week, the new date is 21 Dec
–9 of the 13 spending bills have been passed, & 8 signed into law.
–The vote on TPA is scheduled for today.
–The economic stimulus package is still mired in gridlock.
–If & when the Senate passes its version of the farm bill, a conference committee will still have to iron out the differences.
–It is possible it could be done this year, but I’m not optimistic.

 

A point of personal privilege:

Harry Mapp, a good man and noted ag economist here at OSU, died last night after a several year battle with cancer.  He retired earlier this year after a 40 year career.  Harry exemplified what we all strive for:  hard work, selflessly for the public; objective, relevant scientific research; sensitive, meaningful, caring teacher.  To the end, he insisted on maintaining an active, quality life, and was bedridden for only the last 3 days of his life. 

Many of viewers knew of Harry through his research in water economics or ag finance, or his teaching of thousands of ag students.  He will be missed.

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 7 Dec).

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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