Date: 1982-03-18
Speaker: ROBERT C. BYRD (democrat)
Chamber: S

Mr. EAGLETON. Mr. ExoN. Mr. FORD. and Mr. SASSER) submitted the following resolution. which was referred to the Committee on Agriculture. Nutrition. and Forestry. S. REs. 346 Whereas the people of the United States and millions of people elsewhere in the world depend on U.S. agriculture for food and fiber. Whereas a strong agriculture is essqntial to the economic wellbeing of the Nation. Whereas U.S. agriculture is highly capitalIntensive and farmers must borrow substantial amounts of money to sustain efficient production. Whereas. in the past. a depressed farm economy has foreshadowed severe recession in the general economy. Whereas farm income in 1982 (alter adJustment for inflation) will. in the absence of changes in the Administrations agricultural policy. be the lowest ever reported due to a combination of falling commodity prices. high production costs. including interest charges. and sluggish export markets. Whereas. because of reduced commodity prices and high interest rates. many farmers are delinquent in meeting their obligations under loans and having trouble obtaining new loans to continue farming. Whereas abnormally low farm income and the credit problems many farmers now face are seriously weakening U.S. agriculture. Whereas the Federal Government stands to expend billions of dollars if (1) Farmers Home Administration loans to farmers are foreclosed and the debt security on the loans does not cover the.amounts owed. and (2) due to falling commodity prices. large sums must be paid to farmers in deficiency payments under the wheat. feed grain. upland cotton. and rice programs: and Whereas the Consolidated Farm and Rural Development Act. the Agricultural Act of 1949. and other Acts of Congress give broad authority to the Executive Branch of the Government to take emergency action to strengthen U.S. agriculture in time of economic stress: Now therefore. be it Resolved. That it is the sense of the Senate that the President should work with. and encourage. the Board of Governors of the Federal Reserve System to adjust Its monetary policy. as soon as practicable. so as to reduce the rate of interest farmers must pay to obtain credit for necessary production items. SEC. 2. It is further the sense of the Senate that the President and the Secretary of Agriculture should use the broad authorities vested in them by Congress to take emergency action immediately to stabilize commodity prices received by farmers and provide credit assistance to farmers. including. but not limited to. the following ac tions: (1) the implementation of a voluntary paid land diversion program in 1982 for producers of wheat. feed grains. upland cotton. and rice. (2) the establishment of price support loan rates for the 1982 crops of wheat. feed grains. and rice at levels. significantly higher than those previously announced. that will provide more adequate price protection to farmers. (3) the implementation of an aggressive export development program to*expnd existing markets. and open new markets. for U.S. agricultural commodities. using all aulthorities available to them. including tihe Commodity Credit Corporation Charter Act and the Agricultural Trade Act of 1978. (4) the provision of loan guarantees to finance the establishment of facilities that use grain to produce alcohol for use in fuel. as provided for in section 137 of Public Law 9751 (making continuing appropriations for fiscal year 1982). (5) the implementation of a temporary program to (a) provide for deferrals on repayment. and a moratorium on foreclosures. of Farmers Home Administration farm loans for borrowers who are not now able to meet their debt obligations without unduly impairing their ability to meet essential farm needs (including family subsistence) due to circumstances beyond their control. and (b) permit such farm borrowers to obtain reamortization or rescheduling of their loans to provide equitable repayment terms (including an interest charge at the original rate established for the loan) consistent with their farm and financial condition. and (6) the nationwide implementation of tile economic emergency loan program to provide operating credit to farmers. using repayments by farmers on prior loans to fund the program. SEC. 3. It is further the sense of the Senate that the President. in nominating persons for positions on the Board of Governors of the Federal Reserve System that will become open in 1982. ensure that agricultural interests are provided fair representation on the Board. SEc. 4. The Secretary of the Senate shall transmit copies of this resolution to the President and Secretary of Agriculture.