Date: 1986-09-22
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I yield myself such time as I may consume. Mr. Speaker. the purpose of H.R. 5407 is to Improve the quality of U.S. grain provided to both foreign and domestic buyers. The need for the legislation is made apparent by the rise in complaints filed recently by foreign purchasers of U.S. grain. and the increasing public perception that the quality of grain shipped from the United States does not match that of our major competitors. The fact that U.S. agricultural exports must seek markets today in an intensely competitive international environment significantly increases the importance of grain quality as a marketing factor. The United States. through recent changes in farm policy. has renewed its effort to be competitive in world grain markets on the basis of price. As long as other major producers of agricultural commodities attempt to match U.S. export prices. factors such as quality will gain in importance in determining who has an edge in reclaiming market share. H.R. 5407. as reported. will revise the United States Grain Standards Act declaration of policy to add statements that it is the policy of Congress to promote the marketing of high quality grain. that the primary objective of official U.S. grain standards is to accurately determine grain quality. and that the grain standards must provide a framework for the markets to establish grain quality improvement incentives. The bill will add a new provision to the act to prohibit. effective May 1. 1987. the recombination of grain with dockage or any other foreign material. including dust. removed from grain. Further. no dockage or foreign material of any origin could be added to grain. Dockage and foreign material are terms used in the grain industry to apply to a variety of items ranging from. pieces of grain kernels to nongrain material. The prohibition would apply to both .export and domestic shipments. The Secretary of Agriculture would have discretionary power to exempt handling practices by "last handlers" in the United States who sell grain to a domestic user or processor such as a cattle feeder or distiller. Recombined grain covered by this exemption could not flow back into domestic or export channels. and the exemption would end on December 31. 1987. Also. the prohibitions could not be construed to prohibit a number of traditional marketing and handling processes. These protected steps include: Treatment of grains to kill insects. blending of grain of differing quality to adjust the quality of the resulting mixture. domestic and export sales of dockage and foreign material in the form of pellets or as part of processed livestock rations. recombining dockage or foreign material. except dust. taken out of grain at an export loading facility from grain earmarked for a single specific shipment when this is done to ensure even distribution of the material through the specific graded cargo. with the exemption ending on December 31. 1987. and returning broken corn or grain kernels into a lot of the same kind of grain. Also. the Secretary would have general discretionary power to permit the addition of foreign material to grain if the step would aid farmers and be neutral or favorable in ensuring the quality of exported grain. The bill will amend the act to require the Secretary. subject to appropriation of funds. to compensate farmers and grain merchants. processors. or exporters if a change in Federal grain classification results in reducing the value of grain in inventory. The bill will direct the Secretary. in consultation with farmers and members of the grain industry. to make a study of the feasibility of adjusting the Commodity Credit Corporation grain premium and discount schedules to encourage the delivery. storage. and export of high quality grain. The bill will require the Secretary to publish and seek public comment on proposals contained in a pending House bill. H.R. 5354. the Optimal Grain Grading Act. The bill also will direct the Department of Agriculture to study the need for and availability of uniform tests to rate the suitability of grains and soybeans for specific uses. Where tests are found to be useful and economically practical. the Federal Grain Inspection Service would be directed to adopt them as far as practicablesection 8. The agency would also be directed to issue a final rule within 6 months to make grain inspection standards more accurately reflect levels of insect infestation. Mr. Speaker. this legislation will serve to enhance our agricultural export market position while having a minimal effect on legitimate grain industry practices. I urge the House to pass the bill. Mr. Speaker. I yield such time as he may consume to the gentleman from Iowa .