Date: 1985-03-05
Speaker: DE LA GARZA (democrat)
Chamber: H

I thank the gentleman for yielding me this time. Mr. Speaker. I am going to focus my remarks on the part of the Senate amendment to H.R. 1096 involving agriculturethe farm credit assistance package contained In titles II and III. In that regard. I strongly urge my colleagues to adopt the pending rule. which will complete congressional action on H.R. 1096 and send it to the President for signing. Since the administration first. announced its farm aid measures last fall. the problems facing farmerslow prices. mounting debt. and plummeting land valueshave steadily worsened. By the time the 99th Congress convened in January. it was clear that the administrations efforts werent working. Now. as the time for spring planting draws near. the agricultural crisis has reached a boiling point. Without the measures included in H.R. 1096. many of our Nations farmers will be unable. in the next few days and weeks. to begin work on the 1985 crops. They will have to liquidate or be foreclosed. How many will go under? No one can predict. What we do know is that in the last few years we have seen a steady decline in the farm economy. One estimate states that financial problems on the farm have directly or indirectly cost Americans 260.000 jobs and $5.1 billion in lost income. Worse. in the last few months the decline appears to have accelerated rapidly. Right now. at least onethird of all farm debt. around $75 billion. is held by farmersprimarily by fulltime commercial family farmersexperiencing serious financial stress. An alarming number of these farmers are on the verge of bankruptcy. One estimate is that perhaps 9 percent of all farmers will be forced out of business soon unless something Is done. In some heavily agricultural areas of the Nation. the problem is even worse. The Government must recognize and deal with this growing problem because agriculture is central to our Nations economy. A tidal wave of farm failures will have ripple effects on every segment of the national economy. . The Senate amendment. while perhaps not perfect. is well worth our approval for three reasons. First. it directly addresses the most immediate problem facing farmersthe crushing debt load that has precipitated this crisisby providing for restructuring of existing debt and making more 1985 operating credit available to farmers. In this regard. I would note that the Senate amendment is very similar to H.R. 1035. which passed the House by an overwhelming margin last week. Second. it is targeted where it will do the most good. The assistance under the bill is directed at family farmers. not the giant corporate farms. And. the bill is targeted to those who still have a chance to make it with some timely aid. Third. the agricultural titles of the amendment are relatively modest in costagriculture outlays are estimated to be $254 million over 6 years. counting interest receipts to the CCC on advance recourse loans. I believe much more could be done. However. as we have seen the Federal deficit skyrocket over the past 3 or 4 years. the Agriculture Committee has strongly emphasized a policy of fiscal restraint in developing farm legislation. Indeed. our producers suffer more than most other businessmen from the high interest rates and overvalued dollar that these ruinous deficits have spawned. * The Agriculture Committee. since 1980. has reported legislation signed into law that will reduce Department of Agriculture program costs by $29 billion in the period through 1987. In fact. the President. when he signed the Agricultural Programs Adjuqtment Act of 1984 into law. stated that the bill was the first down payment on the deficit. Further. I would note that the farm commodity programs. in total. are in extremely small part of the overall Federal budget. Specifically. in 1984. those programs were less than 1 percent of the Federal budget. in 1985 will be about 1.6 percent of the Federal budget. andit is pstimatedin 1986 will account for Just 1.2 percent of the total budget. The Senate amendment is sound legislation. it is necessary legislation. I urge my colleagues to send it to the President for signing. I believe that the President will adopt the responsible course. showing compassion for our farmers in their time of need. and sign H.R. 1096 into law.