Ag Policy Update–15 MAY 02 –SPECIAL       

(Sunup Program to be aired 16 MAY 02)

 

1.     It is official, the new farm bill became law this week with the President’s signature.  What’s the latest?

 

–The next stages are implementation and education.

–USDA has a new website for the farm bill. 

–While it is incomplete, it is a beginning to provide information.

–OCES is working with FSA and NRCS to provide inservice education to field staff and be available for public programs.

–Within the next month, there will be decision aids and information available through Extension to help producers decide what they need to do.

–It would be useful for producers who plan to participate in these new programs to begin to collect information on their production practices for the past 5 years.

 

 

 

2.        What kinds of decisions will producers need to consider?

 

–They will want to consider decisions on updating base and yield.

–They may also want to consider distribution and participation choices for land owners vs. tenants.

–There will also be opportunities to consider conservation program participation.

–They may also need to meet with bankers to consider how much help to expect from commodity program participation.

–Some producers will be considering whether to change the production crops and use of haying and grazing.

3.     In spite of this passage of the largest spending for agriculture ever, some producers and Congressional reps are saying they now need more for disaster assistance.  Can you tell us what this is all about?

 

–Because of weather-related disasters, some producers are in need of additional assistance.

–As you say, the problem is that this request is coming on the heels of a new farm bill that Bush claimed would “eliminate the need for supplemental support later this year and in the future”.

–The reason I think emergency aid could be justified, at least this year, is that the funds in the new farm bill won’t necessarily go to the producers who are hard hit by the recent and current weather disasters.

–If emergency aid is not granted by Washington, those who need it most may be left out.

–This was one of the concerns many of us expressed when the new farm bill was being considered.

–The public backlash against the tax dollars going into the new farm bill may prevent farmers in need from getting help.

 

4.     You mentioned last week that the next big issue would be Trade Promotion Authority.  Sure enough, the Senate did pass it this week.  But it didn’t seem to go as the President had hoped.

 

–That’s right.

–A bit of background first: TPA, formerly known as fast track gives the President the authority to negotiate trade agreements in good faith with the understanding that when the agreements are given to Congress, they can only vote to approve or disapprove, with no amendments or other modifications.

–When fast track authority was up for renewal in 1994, the Republicans refused to renew it for Clinton.

–Ironically, it is some of those same Republicans who are saying how important it is for the President to have this authority.

 

5.     So what has Congress now done about TPA?

 

–The House has already passed TPA and without strings.

–In a strange collaboration between liberal Democrats who fear what new trade agreements may do against labor or the environment and conservative Republicans who fear what they may do to US agriculture and national sovereignty, a TPA bill was passed with an important amendment.

–The Craig (R-ID)-Dayton (D-MN) amendment says that if a negotiated trade agreement changes US trade laws, Congress has the option to amend those portions of the agreement.

–This is a serious defeat for Bush, but it may still be salvaged in conference.

 

–If we are to be a world leader in trade agreements, the President needs TPA.

–The Craig-Dayton amendment will make it difficult to successfully negotiate future agreements. 

–If there are other ways to address the concerns with respect to labor, the environment and impacts on producers, the conference needs to do so in a way that does not tie the hands of the President.

 

 

6.        Finally, President Carter is in Cuba.  Any impact on agriculture?

 

–US agriculture and the people of Cuba will both be better off when the embargo and sanctions are lifted.

–Some US wheat deals are already starting to move, but they are very difficult.

–You may recall free trade with Cuba was a provision in the Senate farm bill, but failed in conference.

 

–One of the most hypocritical stands of US foreign policy with past administrations and President Bush has been the stand on Cuba.

–On the one hand, we say that we welcome open relations and trade with China, which has had one of the worst human rights records of the past 50 years, and which uses prison labor to unfairly compete on world markets.  We justify this by saying that open relations and trade will speed democracy in China.

–On the other hand, we say that we have no intention of having relations or trade with Cuba, which also has no democracy and a poor human rights record.  We justify this by saying that open relations and trade would only bail out Castro.

–When the Bush or a future US Administration admits the absurdity of that stand and decided to open trade with Cuba, Oklahoma agriculture will benefit.

 

7.        Congress:

 

a.        Recent activity:

–Senate passes a modified version of TPA

 

b.        Current/upcoming:

–House and Senate Budget & Appropriations Committees working on budget resolution and the beginnings of appropriations process.

–House-Senate conference will consider TPA

–Emergency aid for disaster assistance will be considered by Congress.

 

c.        2002 Schedule:

–As of Monday May 20, there are 69 working weekdays in Washington this session.

27 May-2 Jun        Memorial Day Break

1-7 Jul                Independence Day Break

5 Aug-2 Sep        Summer Break (Senate)

29 Jul-3 Sep        Summer Break (House)

16 Sep                Yom Kippur

–Target adjournment 4 Oct

–5 Nov is Election Day

 

d.        Key issues:

–Trade Promotion Authority

–Bioterrorism & homeland defense

–Healthcare reform

–Prescription drug benefits

–Merger activities, especially in agriculture

–Disaster assistance for agriculture

 

 

 

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