Date: 1993-09-30
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I am privileged to be the one that was recognized. Mr. Speaker. the problem we find ourselves in has been eloquently articulated by the chairman of the subcommittee and by the ranking member. We have had meetings with everyone concerned. including a personal visit by myself with the author of the amendment In the Senate. We have come up with what we think is a particularly applicable resolution. Mr. Speaker. I rise In support of the amendment to remove the portion of the Senate amendment that retroactively eliminates fundIng for the wool and mohair programs. I offer this amendment In order to prevent the Senate amendment from applying to the marketing of the 1993 crops of wool and mohair. Let me explain why the House should approve this amendment. The Senate amendment would prohibit payments to wool and mohair producers during fiscal 1994. As a consequence. Government payments for the 1993 crops of wool and mohairwhich would be paid during fiscal 1994--will be eliminated retroactively. without notice or warning. . Mr. Speaker. eliminating the program retroactively was not the Intent of the author of the Senate amendment Whether you think the wool program Is worthwhile or not. I hope you recognize the unfairness of retroactive elimination to sheep and goat producers In all 50 States. Whether you support the wool program or not. the reality is. that a significant portion of income for wool and mohair producers comes from Government payments. Thats the reality. Believe me. my preference and the desire of every farmer In this country Is to compete on a level playing field and get a decent Income from the marketplace. But that Is not the reality of the marketplace for wool end mohair. This Industry faces a very depressed market for wool and mohair. In large part because of policy decisions taken by Australia. In addition. American woolgrowers face heavily subsidized competition from the European Community. Thats the reality of the mretplace. If we Immediately and retroactively eliminate the wool and mohair programs this Congress could very well be forcing 25 to 30 percent of our Nations 100.000 wool and mohair producers of the land and Into bankruptcy court. Lenders have extended loans based on the expectation that the market sale of this years crop will be supplemented by a Govemment Incentive payment next year. In some cases. the Government checks are the collateralthe woolgrower doesnt even get the Government H7310 c payment. it goes straight to the bank to pay this years operating loan. If Congress eliminates the programs now. lenders will call In these loans. Retroactive elimination of the wool and mohair programs would economically devastate thousands of our Nations wool and mohair producers. Eliminating the wool and mohair programs. In the manner proposed~n the Senate amendmrent Is also unfair because it allows for no transition time for producers to rearrange their financing and production plans. Again. the Immediate and retroactive portion of the Senate amendment Is simply unfair and must be corrected. Mr. Speaker. a few weeks ago I received a letter from President Clinton thanking me and the committee for our work4ncluded In the 1993 Reconciliation Actto reform the operation of the wool and mohair programs. What we did in that legislation was reduce the maximum payments a wool or mohair producer could receive by twothirds by 1997. This Is what the President wrote to me: This represents an Important step forward in reforming the program. and I commend you and the committee for moving forward aggressively on this issue. That is what President Clinton wrote to me on our actions to reform the wool and mohair program. Mr. Speaker. I recognize--as do all of us who represent farm and rural areas--that a majority In Congress and this administration want to see further savings achieved and further reforms In our farm programs. The House Agriculture Committee--just as Chairman DURBIN and his Appropriations Subcommittee have done In this conference reportIs taking steps necessary to respond to these concerns. The amendment I am offering eliminates funding for the wool and mohair programs In fiscal 1994 but it does allow producers to receive payments on their 1993 crops of wool and mohair. Mr. Speaker. It Is only fair that the Federal Government not renege on a financial compact that 100.000 American families based their financial decision on earlier this year. This amendment puts wool and mohair producers on notice that they cannot expect Federal assistance next year. Furthermore. t Is my Intention to have the House Agriculture Committee follow through with authorizing legislationto be brought back to the House floor later this yearto amend the Wool Act and to give Members in the House the opportunity to vote on reforms or elimination of the program. I urge Members to support my amendment.