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Testimony on farm bill centers on trade issues

By , The Idaho Statesman
October 29, 2001
 
Trade issues overshadowed subsides and conservation in a U.S. Senate hearing Saturday on a proposed 10-year farm bill.

Grain farmers called for continued and even greater subsidies for crops so they can survive in a hostile world market.

Other farmers urged more emphasis on conservation incentives to relieve the burdens of federal environmental mandates.

But almost all of the farmers who testified at the Senate Agriculture Committee hearing chaired by Idaho Republican Sen. Mike Crapo agreed that trade issues trumped their differences over how to divvy up federal funds.

"I think we as American farmers have been short-changed by our negotiators," said Perry Meuleman, a sugar beet grower from Rupert.

"If you complete this farm bill this year, it would be advantageous to Idaho farmers," said Evan Hayes, a wheat farmer from American Falls.

But the Senate's shifting view on the bill and its desire to finish up by mid-November make it unlikely the farm bill will be completed this year, Crapo said.

"I think we have our work cut out for us to complete a farm bill this year," he said.

Saturday's hearing was aimed at taking comments on a new bill authorizing farm programs for the next decade.

The House approved a $168 billion version earlier this month that continues to provide most of its funding to large farmers in the form of direct payments.

The issue is important in Idaho because $262 million was paid directly to Idaho farmers in 2000 -- one third of their personal income.

Overall, farm programs accounted for more than $600 million in federal spending in the state in 2000.

President Bush has opposed the House bill and favors a bill by Sen. Richard Lugar, R-Ind., that phases out subsidies, increases crop insurance and shifts funding to conservation incentive programs.

Grain growers urged Crapo to help pass a bill similar to the House bill this year before federal funding dries up because of a slowing economy and increased security spending.

Even with large subsidies, many Idaho farmers are struggling against federal policies that increase the value of the dollar against other currencies. This makes farm products from other countries cheaper here.

New Zealand farmers have a two-to-one advantage over Idaho ranchers in the marketplace, said Brad Little, who just sold his family sheep business.

"The reason rural America is dead is the exchange rate," Little said.

The strong dollar favors consumers and investors at the expense of producers, he said.

"Until the U.S. decides whether it's going to be a consuming nation or a producing one, we're going to continue to lose ground," said Dennis Vander Stelt, a Kuna dairy farmer. "Everyone in the world wants a piece of the American consumer."

The toughest decision this year, Crapo said, will be whether to grant Bush so-called "fast track" authority to negotiate trade bills. It would prevent Congress from making major changes in any trade agreement once completed.

"I don't have much confidence Congress will kill a bad deal for agriculture," Crapo said.

But he remains undecided whether he will support giving Bush the authority other presidents have had.

All the speakers Saturday supported an increase in spending for programs that idle farmland for open space, erosion control and wetlands protection.

A new program that would expand incentives for water cleanup and other environmental initiatives received strong support only from the Idaho Association of Conservation Districts.

Tim Hopkins of Idaho Falls, chairman of The Nature Conservancy of Idaho, applauded Crapo's efforts to increase conservation spending in the bill, noting it helps the economy and ecology.

"Maintaining working farms and ranches helps protect existing wildlife corridors, winter range and other crucial habitat features," Hopkins said.