Making Emergency Supplemental Appropriations Motion To Proceed
Mr. President, I ask unanimous consent the order for the quorum call be rescinded. Mr. President, I come to the floor today to discuss one of the issues we have been talking about an awful lot recently, and that is the farm bill; more…
Mr. President, I ask unanimous consent the order for the quorum call be rescinded.
Mr. President, I come to the floor today to discuss one of the issues we have been talking about an awful lot recently, and that is the farm bill; more specifically, the unique nature of agricultural production in the United States.
We are all going to leave next week and go home, hopefully, to celebrate Thanksgiving with our families, to talk about this wonderful blessing we have in this great country of ours--the enormous bounty that exists, the blessings of living in a free country, living in a place where we do not have to worry about going to the grocery store and finding the shelves empty or we do not have to worry about those things that are produced here not being safe or acceptable. That is because we have not only very conscientious producers and farmers, but we have a system and respect in our Government that recognizes how important it is to the American people to maintain that bounty.
As we all go home to celebrate Thanksgiving and give thanks for this wonderful country in which we live and the bounty that it provides us, I think it is so important to talk about the big tent that exists in this country, the big tent that encompasses all of the diversity of agricultural production in different regions across our Nation. It is an important aspect that we should embrace, and I hope my colleagues will think about that as well.
As we discuss the farm bill and agricultural production, my colleague, the Presiding Officer, is representing a wonderful agricultural State, beautiful and vast, and it is very different from mine in terms of its assets and what it contributes to this great land. My State is different than Colorado. It is vast and different, just within the boundaries of my State, but certainly in terms of what it brings to the table in our Nation in terms of the bounty that it provides.
Perhaps one of the most frequent questions from so many, particularly of my urban colleagues--because I do share a seat with so many other farm Senators on the Agriculture Committee, but a lot of times the question from my urban colleagues is, why are farms in Arkansas different from, say, farms in North Dakota or Michigan or Indiana or Colorado or other regions of our Nation?
Although the answer is pretty simple, it does require quite a lot of time to talk about. It looks as if we have a good bit of time today, so I thought I would seek this opportunity and, for the benefit of those inquisitive Senators who sometimes ask why are things different in different parts of our country and in all of our different States, offer an explanation that I give, certainly, to my colleagues and to others who are interested and concerned about us as a nation maintaining the safe and abundant and affordable supply of food and fiber that exists in this country for which we are all so thankful.
First, and this should come as no surprise, each of our States produces the agricultural products for which its climate and its soil are best suited. That is one of the things we do in Arkansas. It, obviously, has been that way for years. Farms in Arkansas might be older than those in some of the States that exist to our west. As our country was explored and discovered, many of those lands in the West were discovered, and their climates and their soil types were different. As we have grown as a nation, they have adapted themselves to the crops for which they are best suited. For the colder climates of the Midwest, it makes sense to produce corn and wheat and sugar beets. For us in the South, with our more humid climates, and given, certainly, our soil types--we have a large clay content and often sandy soil along our river bottom--we are suited for cotton and rice production. So that is the first explanation I try to give people, to talk about those differences so we better understand what the differences are.
Second, you have to take into consideration what the markets are for our commodities. Again, we are a vast country, full of so many blessings and diversity. As we have grown, international markets have grown and changed as well.
Let's start with corn. By now I think everyone in this body is familiar with the fact that we mandate a corn ethanol market through the renewable fuels standard. It is important that we move toward a renewable fuel. It has multiple purposes. Renewable fuels will help us clean up the environment and will certainly lessen our dependence on foreign oil. It also gives secondary markets for our growers. But so far we have only gotten pretty far on corn-based ethanol.
We have mandated this market for corn, and it has done quite well. We make sure those corn growers' prices stay up because there is a market. There are tax incentives that are built in to ensure those markets are going to be there for corn.
In addition to the creation of the market, we place a prohibitive tariff at the borders of our country to ensure that only American farmers have access to that corn market. That is for good reason. That marketplace has really matured in terms of ethanol production and the direction we are going to the point we are now realizing that renewable fuels are going to need to come from other sources as well; that we cannot just depend on that corn-based ethanol program but that we have to start looking toward cellulosic and biodiesel and biomass and a whole host of other renewable energy sources. But the fact is, we still protect that corn market to a tremendous degree.
For sugar, we have a unique program that doesn't make payments to farmers, but, like ethanol, it limits the international competition, and it supports the processing of these commodities.
Sometimes sugar is supported in the processing facilities, and therefore those protected markets and that payment coming down to those farmers is a little bit trickier to understand than the regular commodity program.
Rather than offering a whole lot of detail on a program that does not directly impact my State, I would rather direct folks to the individuals who represent the States here that are affected by those crops. I think it is most important to let those who understand crops in their States give their descriptions because they have a better intuitive idea of how those programs work and how their growers benefit and how the economy benefits from it and certainly how the American people benefit. There are a lot of Members who can tell you about that.
As the President knows, we on the Ag Committee--everyone has their specialty and certainly their best understanding when it comes to corn and sugar. I kind of focus on the folks who know those the best to be able to provide you the details. But, in short, sugar has an entirely separate program
subject to different disciplines but with a market that is very domestic and exclusively limited to American sugar farmers. So you have two of these products now, or commodities, that have very different disciplines in terms of what protects them or what provides them that very defined as well as insured marketplace through both the constricting of the marketplace without allowing imports to come in and also the incentives they have in the way those safety nets are provided to them through their processing.
Now, here is a market that I do know about and that I can talk about, and that is what comes from my region of the Nation, which is cotton and rice.
First and most importantly, I need to point out that these two commodities are subject to very intense global competition. Rather than simply state that as a fact, I will offer a couple of explanations.
Rice is a stable commodity globally, all over the world. As such, it is produced in many regions, including the developing world, those nations which are not as developed as we are or as old and efficient as we are. The same is true for cotton.
What is also true is that our market is open to direct competition from international producers while our access into their foreign marketplace is extremely limited. Now, that means our border is open to their rice and cotton being shipped into our country. So our growers not only have to compete to get into our marketplaces, but they have to compete here with products that are allowed to come in from other countries--the rice and cotton, specifically.
I think the best example or one of the best examples is Japan. Japan's rice tariff comes in at over 400 percent. That is more than enough to keep American rice out of their marketplace, I have to tell you, a 400-percent tariff on rice going into Japan. Yet our markets are open. Our markets are open to commodities coming into this country.
Another good example that can be used is the treatment of rice in the recently negotiated Korean Free Trade Agreement. For every product produced in the United States of America, we reduce the Korean tariff, limiting our access into theirs immediately or phased in over 20 years, every one with the exception of one commodity--it is rice, one commodity that is not allowed to be exported into the Korean marketplace.
So it just goes to show you the fact that our commodities, although they are different and grown differently and a whole host of different things, also are treated differently in the global community and in the global economic venue. At this point, you should start to be seeing a pattern here in terms of the differences not only in how we grow our commodities but also how our commodities are dealt with in the marketplace. Our market is open to competition, while our export markets remain closed to our growers of our commodities.
Now, do not get me wrong, I am not here advocating that we need unabashed free trade for agriculture because I know that to expose the Third World to our productivity would decimate vulnerable parts of their economies that support the poorest of the world's poor. So that is not what we are talking about. This dynamic is more than a reality for U.S. farmers; it is a part of America's obligation within the World Trade Organization.
Now, I will summarize that point just briefly. In the WTO, the United States and other developed nations must report their subsidy level, and they must restrict their tariff level. The conversion is true for the developing nations that are members of the WTO. They are not subject to even reporting their subsidy, and they have little to no obligation with respect to opening their markets.
Now, again, I am not saying this is a total and complete outrage; I am merely trying to paint a more comprehensive picture of what American agriculture is up against in the global economy. Without a doubt, as we have heard in multiple different meetings across the Hill that many of us go to, whether it is our lunch groups or our hearings in committee and others, we hear all of the talk about global trade and about the global economy and developing countries and where they are going, placing priorities in education and infrastructure investment and a host of other things, and we see our trade deficit growing. Yet agriculture has always been one of those areas where not only we as Americans feel it is important to maintain that domestic production of a safe and affordable and available food supply, but we also know it is a big issue to other countries that they can maintain some domestic production and hopefully as much as they possibly can grab hold of in terms of that domestic production.
With that said, it simply cannot be ignored that these disparities in international competition contribute to the world in which the U.S. cotton and rice producers must compete and therefore influence how they must structure their operations. So, again, for us, in meeting different demands, in looking at the global marketplace and trying to figure out how we structure ourselves as growers, it is not just about the soil type or the weather and the climate; it is also about the international marketplace, which leads me to the explanation of the last question which is posed to me; that is, Why are Arkansas farms so big?
It should not be difficult for Members of this Chamber to understand that when you face intense competition and your foreign markets are closed, you have to create efficiencies. You have to create efficiencies elsewhere in your business operation in order to be able to compete because you do not set the world market price. You have to be able to compete on that international global stage by your own efficiencies.
It is the good fortune of everyone in America that our farmers are the most efficient farmers in the world. Certainly, we are the beneficiary of that in this great country, but people all across the globe understand that, that not only are we the most efficient and can do it the most affordably, but we produce the safest and set a standard in many instances across the globe of what is going to be produced in future generations in terms of sustenance of life. We have improved our efficiencies in ways that cannot be described here in a short period of time, but suffice it to say that the American farmer is the most efficient on Earth, and are we not all glad? That is something for us to be proud of in this body and across this land. If you are not or if you take our bounty for granted in this great Nation, you should be ashamed of yourself. That is the reason this bill is so important, is that we have been handed this blessing. We have worked hard on this Earth in this great land of ours. But we certainly have reason to be proud.
Despite our efficiency in cotton and rice country, we are still operating on very thin margins of profit. In some years, we merely hope for profit that really never comes.
What we have done to help level that playing field is to expand our operation to further reduce our per-unit cost and, in turn, create a competitive economy of scale. Now, that means we have to spread our risk out over a greater abundance of production because that is one of the only ways we have to get the efficiency to be able to be competitive in a very restrictive market, and that is to have a large economy of scale and mitigate our risk over a greater area.
Now, unfortunately, many newspapers and some of my colleagues attribute USDA statistics for commercial-size operations to many of our Arkansas and southern farms and assume we are no longer family farms simply because of our size. What a terrible misrepresentation. I think it really diminishes what we are about in this body, which is to embrace our diversity and embrace the good work all of these hard- working farm families do across this Nation. And without a doubt, it is simply untrue. I do not know of too many nonfamily farms in my State. There are a lot of people who are going to tell you that because they belong to a cooperative or because they maybe farm more acreage, they are not a family farm. In fact, I do not even know of one.
What I do know a lot about is fathers and sons, wives, daughters, brothers and sisters who work the land with one another. They have to come together. They have to build their operation, come together, and stay together if they are going to survive. Even when that generation upon generation finds
that one of those brothers or sisters happens to move to the city to become a doctor or maybe an electrician or maybe a fireman or maybe a lawyer, they still help share the risk of what that farm has to do, which is to create that economy of scale in order to be competitive.
So hopefully we can still consider those people a family farm, because, guess what, they are still a family, and they are still farming and they are all carrying the risk of what it takes to be competitive in that global marketplace. Now, their operations may exceed several thousand acres, and they most certainly are still family farms.
In fact, I cannot imagine a definition of a family farm that does not include the overwhelming majority of Arkansas farmers, but apparently such a definition exists. USDA seems to come up with these definitions, and they print them out up here in Washington, inside this bubble, and they fail to realize that there is a lot of diversity in this great country. There are a lot of family farms that exist. It is not just family farms in the Midwest, it is not just family farms on the east coast, but it is family farms in other regions of the country too--yes, in our region of the country too.
Now, I will go ahead and put my colleagues on notice that until those misrepresentations cease--and I have to tell you, they have been long and hard for many years in terms of the misrepresentations of what a farm is and who constitutes that farm. You know, I am a daughter of a farmer, but I cannot imagine the way I get labeled as having been this huge farmer when I am not even farming. Yet that misrepresentation continues to come out there just because it is convenient and it is sensational and people can use it.
Well, I have to say that it does not matter to me what happens to me, but it does matter what happens to those hard-working farm families who are working so hard to make sure we enjoy that safe and abundant and affordable food supply regardless of what happens in the international community. My colleagues know they are going to hear a lot more from me on farm policy that supports farmers throughout this great country as the debate goes on.
It is my opportunity to describe and talk about the individuality of each of these areas. I will hone in on my part of the country because I leave how other commodities are farmed up to those who farm them. But I can definitely tell you, having walked rice levees and scouted cotton and chopped down coffee bean plants in a soybean field, how our farms run and why they run that way, I understand the markets. I understand the global trade implications that exist. I understand that all of the programs we design oftentimes in the farm bill don't fit us.
For example, take disaster assistance. I was glad to work with my colleagues in the Midwest who wanted to see a disaster assistance program, even though it doesn't benefit my farmers that much. When you have a farm in the South and you are farming rice, you have to control your environment. Have you ever seen a rice field that has no water on it? Unless it is being harvested, you haven't. The reason is, you have to control that environment. When it comes to disaster assistance, those counties get the same national disaster declaration on a drought. But guess what. They are never going to get that disaster assistance because they hardly ever hit the 35-percent yield loss that comes with another stipulation in disaster assistance, because they have controlled their environment.
I will tell you what: They have spent twice the effort and resources and money in plowing into that crop what they needed to combat that drought and that disaster that was occurring. So they need another tool. They need another tool within the confines of our farm legislation that allows them to market their crop, to market their crop in this competitive global marketplace so the Government doesn't have to do it for them.
As I plow through this--and I know I will have many other opportunities to do so--I hope I have answered some questions or at least demonstrated some of the differences in our ag land down in the southern half of the Nation. We are all a little different. I have to tell you, for that we should be extremely grateful and proud, and we should embrace that diversity. As a nation, that is what makes us strong, our diversity and our willingness to embrace it and our willingness to respect it. That is what makes us Americans. Despite these differences, it has always been my view that regardless of the type of crop or the region of the country you live, if you contribute to the production of safe agricultural commodities, I consider you a farmer. I consider you an American farmer. I don't judge that and I don't judge you as an American farmer based on whether you are in one region or another or how big your family is or how big your farming operation is. I judge you by the fact that you are willing to go to work and work hard every day to do the best you can, to be as efficient as you possibly can, not only in this country but in the global marketplace, with tremendous respect to the environment, the conservation of land, and the ability to produce a safe and productive food supply. That is who farmers are.
If we let other people define who a farmer is and a farm family is, then we will be sorely disappointed when we start to outsource our food to other countries. I think we have become sorely disappointed to find ourselves dependent on foreign oil, to have outsourced our need for energy in the oil arena to other parts of the world. We will find ourselves once again in the next several years with a trade deficit in agriculture, outsourcing our food supply. I don't think Americans want to go there; I really don't. I think they are willing to listen for the diversity and expertise and the hard work that goes on by America's farmers to continue to produce that safe and abundant, affordable food supply. As a farmer, regardless of the region of the country, we have to help our farmers keep meeting that competition.
I have the reputation of being that kind of person, of reaching out and working with people, understanding differences, accepting differences and accepting other people's ideas. I hope we all have that attitude. But mostly, I try to be respectful of people. Unfortunately, my farmers and I have not been given that same respect by everybody. I am going to continue to work hard to prove my point because I am going to earn that respect. I am going to earn that respect not only in what we have done in this underlying bill, in creating the greatest, most substantial reform in decades. We started over here in current law and most of the extremes that people want are way over here. Guess where we have moved. In terms of providing the reforms that the media and others all clamor about, we have come from here all the way over here. That last little bit people want to ask of us will outsource the food supply that southern growers have so proudly provided this country for many years.
I am proud to be here to defend and support and be proud of Arkansas farm families. They have worked hard. They will continue to work hard. I have fought this fight for several years, and I will continue to defend the programs and my farmers who use them within the limits of the law. Creating greater reform is important. Our farmers want to make sure they are in compliance with the law and that they are working hard within the parameters to do their very best. But they also want to be able to be competitive, because they want to continue to provide that safe and abundant supply of food and fiber. And they can--most efficiently, most effectively, most safely, as well as with the greatest respect to the environment. I hope people will not continue the sensationalized stories and misrepresented facts in order to get something done that does nothing but move forward in outsourcing our food and fiber supply.
I hope I have brought some clarity here today. I will continue to try to do that. I look forward to working with my colleagues. We have a long road ahead of us to get something done. But I think everybody will agree it is worth it. It is well worth it, as we return home to be with our families, to give thanks for this wonderful Nation we live in and the bounty it provides. I hope we will come back and sit down and get to work supporting America's farm families and the hard work they do, recognizing all of the tremendous challenges they face, mostly challenges they have no control over. Whether it is the trade agreements they operate
under, whether it is the environment and the weather they deal with that they have no control over, it is certainly within the confines of the requirements and the regulations we present them to empower them to do a better job or certainly the best possible job in taking good care of the land and being good stewards of this great land we have.
I thank the Chair. I look forward to working with my colleagues.
I yield the floor.