Date: 1982-03-09
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I yield myself such time as I may consume. Mr. Speaker. I rise in support of H.R. 2160. a bill to amend and update the provisions of the Potato Research and Promotion Act of 1971. H.R. 2160. known as the Potato Research and Promotion Act Amendments of 1982. essentially does the following: First. it expands the membership of the National Potato Promotion Board. which administers the program. to Include representatives from the public. Second. it authorizes an increase in the rate of assessment levied on potatoes to fund the program. Third. it provides for reimbursement to USDA for all expenses incurred in administering the program. Fourth. it provides for a more efficient and speedier enforcement system by giving the Secretary of Agriculture authority to implement administrative remedies through warning notices. cease and desist orders. and civil penalties. and Fifth. it provides a safeguard to keep in force any existing plan. in the event a referendum falls to approve proposed amendments to any potato research and promotion plan. Perhaps a little background and history of this legislation will help us to better understand the nature and purpose of this bill. Eleven years ago. Mr. Speaker. on January 11. 1971. the Congress enacted the Potato Research and Promotion Act to enable potato growers to finance a nationally coordinated research and promotion program to improve their competitive position and expand their markets. The financing of this program was to come from a voluntary system of assessments among participating potato growers on all potatoes harvested for commercial use. That act gave our Nations potato producers the tools they needed to secure their position in the market. A National Potato Promotion Board selected by the Secretary from nominations made by potato producers administers the program. The Boards activities have included industrywide merchandising and advertising programs. export promotion programs. and the development of nutritional data and guidelines. Since its enactment in 1971. the voluntary assessment program has enjoyed the participation of over 97 percent of potato growers in the country. This bill. H.R. 2160. incorporates amendments recommended by the National Potato Council together with amendments suggested by the administration. Why is it necessary to raise the rate of assessment? Because since its inception in 1971. the assessment rate for potatoes has remained constant. while the Consumer Price Index has risen over 100 percent. This erosion of purchasing power has reduced money available for potato promotion. Under existing law. checkoff contributions to the potato programwhich would be refunded to any individual farmer who wishes to request itare limited to 1 cent per 100 pounds produced by each commercial grower. Under H.R. 2160. farmers would vote on a proposal which would allow the assessment to rise to a level based on past market prices. The ceiling for each year would be onehalf of 1 percent of the average potato market price during the preceding 10 years. For 1983. this formula would yield a level of about 1.9 cents a pound and could bring farmer contributions to $4.2 million compared with $2.3 million under existing law. The proposed change in the assessment rate will generate the revenues necessary to continue the marketing and research assistance so vital to the potato industry. However. let me explain that. before any increase in assessment could become effective. the plan governing operations of the program would need to be amended and the revised plan approved by potato producers in a na. tional referendum. Based on experiences had by similar national commodity research and promotion boards. R.R. 2160 provides that membership of the board. pres ently restricted to potato producers. be expanded to include representatives from the public. USDA provides oversight on similar promotion programs for a number of agricultural commodities. and with the exception of the program for wool and potatoes. the Department is fully reImbursed for its costs from assessments collected on the sale of the commodity. H.R. 2160 would eliminate Federal funding of costs incurred in the administration of this act and bring the potato program into conformity with present USDA policies. Costs for the administration of this program will be borne by the potato producers. Assuming enactment of the bill by fiscal year 1983. CBO estimates that this reimbursement will result in savings to the Government of $48.000. $52.000. $55.000. $58.000. and $61.000 in fiscal years 1983 through 1987. respectively. based on the current estimated cost of about $45.000 for the referendum and administrative expenses. By modifying the enforcement provisions. this bill will adopt a streamlined procedure similar to other commodity boards. This will assure a more expeditious administrative system instead of the present cumbersome procedure dependent on the Federal district courts. The enforcement provisions are modified to provide the Secretary with authority to deal directly with violators through written warning notices. cease and desist orders. and civil penalties. The committee believes that this administrative enforcement authority will result in increased compliance. These changes. too. would conform the Potato Research and Promotion Act to the Departments Policy governing similar commodity promotion programs. Finally. Mr. Speaker. in order to assure the continuity of any existing potato research and promotion plan. the bill provides that said plan would remain in effect in the event proposed amendments to said plan were not approved in a referendum. Thus. if in the referendum. producers should fail to approve -the increase in assessment authorized by H.R. 2160. the existing plan would continue in effect and the program would not be discontinued. I ask all members to join me in supporting enactment of H.R. 2160. Mr. Speaker. I yield such time as he may consume to the distinguished gentleman from California . the author of the legislation.