Mr. President, I appreciate first off the bill that came out of the Ag Committee. It was a consensus product. There was a lot of bipartisanship support for it. I think it is important we move it forward. What is happening here now is…
Mr. President, I appreciate first off the bill that came out of the Ag Committee. It was a consensus product. There was a lot of bipartisanship support for it. I think it is important we move it forward.
What is happening here now is delaying something that is of critical timing to the producers in this country; they need to know what the rules are before they go into planting season next year.
By running out the clock, which essentially we have done this week, and unless we come to some agreement on amendments, we are going to lose next week. Then we are into December, and it is going to be awfully difficult to get a bill conferenced and on the President's desk before the end of the year.
I, for one, have an amendment, along with Senator Domenici and Senator Nelson, that has been filed. So I would say to my friend from Iowa that we are more than happy, if the leadership on the majority side would be agreeable, to us calling up amendments.
But as was noted by my colleague from Georgia, the current state of play is they have filled the amendment tree, thereby making it impossible for us to get amendments called up, pending, under consideration, debated, and voted upon.
But I have one that I think is very important, it is very relevant. You talk
about amendments that are relevant to the farm bill that would expand the renewable fuel standard. That was something that was supported by the Senate in the Energy bill. I have my doubts about whether we are going to get an energy bill this year. But I cannot think of anything that is more important to farm country right now than making sure we have a higher renewable fuel standard, particularly in the short term.
2008 is critical. We are already at 7\1/2\ billion gallons. Where the current renewable fuels standard sits that was passed in 2005, we are going to, and have, eclipsed that. If we do not raise this renewable fuel standard in 2008 in the short term, we are going to have a terrible crunch out there.
We are already seeing ethanol plants that are stopping construction, those that are under construction that have stopped it. We have some, I know of one in North Dakota that ceased operations for a while because the margins are not there.
This is a very relevant amendment to the underlying farm bill, one that would strengthen the energy title in the bill and one which is critically important, from a timing standpoint, to producers across this country and those who would invest in the renewable energy industry. I would add, because I think this is a very important point not just for farm country, not just for our farmers and those in rural areas of this country who have benefited from ethanol production economically, but also it is important for our energy security.
We have got a very serious problem. Oil is approaching $100 a barrel. We need to be increasing the amount of renewable energy we produce, homegrown energy in this country, so we can lessen that dependence upon foreign energy. We have an opportunity to do that. The ethanol industry in this country has done remarkably well, thanks, in large part, to the renewable fuels standard enacted in 2005. But we have been overtaken by events. We are passing, we are blowing by that 7\1/2\ half billion gallons. We need to get the new renewable fuel standard in place.
The amendment we have offered--it is a bipartisan amendment--would do that. It would get us to 8\1/2\ billion gallons in 2008, which is critically important. We are running into a wall out there. It is dramatically affecting the ability of this industry to compete and to make sure that it continues to operate profitably and move us in a direction that lessons our dependence upon foreign energy.
So I would simply say to my colleagues, to the Senator from Iowa, the chairman of the committee, the ranking Republican, Senator Chambliss, that it would be very advisable, and I think advantageous, for us to be able to come to some agreement on amendments because delay, in the end, is not an option.
We cannot afford to go into next year without a farm bill. I would like to see this amendment considered. I hope the majority would make way for us to be able to offer amendments. This whole notion of filling the tree, I am not sure exactly what that accomplishes, other than to shut us down, at least in the short term.
So I would simply say we have an amendment, we are ready to do business as soon as the other side decides they want to open this bill for amendment. I hope we can do that and do it soon.
Madam President, I thank my colleague from Colorado for his comments, and the Presiding Officer, also members of the Agriculture Committee. We all worked together as has been mentioned. This was a bipartisan effort, and the product, I believe, has broad bipartisan support not only in the Agriculture Committee, but I think in the entire Senate.
It is important we get this bill under consideration. We are currently being blocked from considering amendments to it, and I hope the majority leader and the leadership on our side can come to some agreement about how we are going to proceed with regard to amendments because we don't have a lot of time left on the clock this year. It is critical that we get a farm bill passed so our producers across this country who are already beginning to make decisions about next year when it comes to planting, and lenders who are going to finance them, have some certainty about what the programs are going to be, what the rules are going to be as they begin to engage in making those decisions.
So I hope we can get this bill moving. It has been on the floor now for the past few days. ``On the floor,'' I use that term loosely because for all intents and purposes, action on it has been stalled. It is important that we come to an agreement about how we are going to proceed and what amendments we are going to debate and vote upon. But we need to get a bill through the Senate and into conference with the House and, hopefully, eventually on the President's desk before the end of the year.
I do want to express my appreciation to the leadership on the committee: Senator Harkin, the chairman of the Agriculture Committee, and the ranking member, Senator Chambliss, for their efforts and leadership on the bill; also, my colleague from North Dakota, Senator Conrad, who is chairman of the Budget Committee, and Senators Baucus and Grassley, who are chair and ranking member, respectively, of the Finance Committee for their efforts in helping us craft funding that would allow the Agriculture Committee to draft a workable and what I believe is an effective farm bill which will move agriculture forward for the next 5 years.
As was noted by my colleague from Colorado, writing farm policy is more regional than it is political. I commend my colleagues on the Agriculture Committee who represent literally every geographic region in the United States for their tenacity in representing the interests of their State as we drafted the farm bill. Most of all, I commend them for the respect they have exhibited throughout this farm bill drafting process to the various needs of each Member's State.
Also, together the committee has drafted a bill I believe is something we can go home and talk proudly about not only in South Dakota to my farmers and ranchers, but also to our Native American tribes and to every man, woman, and child in South Dakota and across this country who enjoy the safest, most affordable food supply in the world.
The 2002 farm bill, which I helped draft as a member of the House Agriculture Committee, very successfully provided economic support to America's farmers and ranchers when prices dropped below the cost of production. Yet this same farm bill--this same farm bill saved American taxpayers $20 billion over 5 years when prices improved and its economic safety net components were not triggered, which is good policy, and precisely the way it was intended to work.
Thanks to the success of the 2002 farm bill, we had $22 billion less in the Commodity Credit Corporation baseline to write the 5-year, 2007 farm bill than CBO had estimated in 2002.
This farm bill addresses three of my highest priorities for the 2007 farm bill, and I would like to speak briefly, if I might, to each of those. As I said earlier, first, it must provide an economic safety net for American agriculture.
Today's farmers and ranchers face multiple uncertainties thanks mostly to the weather. Yet our Nation's farmers and ranchers not only feed every American, they help feed billions of others across the globe. They are expected to provide this food economically--and have done so--often at prices lower than their production costs. Thankfully, commodity and livestock prices are higher now than they have been for most of the past decade, but so are input costs such as fuel, fertilizer, and chemicals. Those things have all gone up as well. The 2007 farm bill needs to continue with safety net provisions that support agriculture when commodity prices drop because input prices will not drop accordingly.
The provision in this farm bill which extends the current farm bill countercyclical program accomplishes this price protection. Yet as I stated earlier, it is of no cost to taxpayers when commodity prices reach the levels we are experiencing now.
Permanent disaster coverage is another farm bill essential I have been fighting for over the past several years, and I am pleased it is also included in the 2007 farm bill.
In agriculture's uncertain economic future, direct and countercyclical payments, a permanent disaster program, and a healthy crop insurance industry are all important to a sound economic future for South Dakota agriculture.
So the economic safety net for American agriculture is a critically important priority in this farm bill. It is addressed. It maintains the basic framework that has worked so well from the 2002 farm bill which, as I said earlier, actually has saved the taxpayers billions of dollars over what was projected at the time because as prices went up, commodity prices went up, subsidy payments went down, which is precisely the way the farm bill was designed to work. We build upon that in the safety net of the 2007 farm bill.
The second priority we need to have in this bill is this farm bill needs to include alternative energy development and expansion. Alternative energy; namely, corn-based ethanol, has already changed the American agricultural landscape and has given many farmers and local economies renewed hope for the future. However, we recognize the limitations placed on corn-based ethanol, simply due to the number of acres that can be devoted each year in this country to producing corn. Thanks to the groundwork that was laid by corn-based ethanol, cellulosic ethanol is positioned to complement corn ethanol.
The energy title in this farm bill contains the sustainable cellulosic ethanol production incentives that were laid out in my Biofuels Innovation Program legislation, which I introduced earlier this year along with Senator Ben Nelson from Nebraska. Cellulosic ethanol produced competitively will not occur on its own. It is imperative these incentives are included in the 2007 farm
bill to kick-start the cellulosic ethanol industry.
The energy title in this bill also includes $25 million in mandatory spending for the Sun Grant Initiative, which is already established in land grant universities across the United States and which has made great strides in research and development of cellulosic ethanol.
I want to come back to that point in just a minute, but I also want to address what I think is the third important priority in this particular farm bill and that is a sound conservation title.
Conservation should not compete with production agriculture; rather, it should complement it.
Along with uncertain weather conditions, our Nation's agricultural landscape with its fertile and productive farmland is also peppered with millions of acres of marginal and fragile lands. The conservation title of this farm bill includes an assortment of conservation programs that include tools for farmers and ranchers to exercise sound land stewardship in unison with maximizing crop production.
My home State of South Dakota is unique in that along with its high ranking as an agricultural State, wildlife and outdoor recreation contribute mightily to its economy as well. I believe the conservation title included in this farm bill will assist South Dakota farmers and ranchers in their efforts to maximize agricultural output, protect and enhance its fragile lands, and help keep our State's recreational industry vibrant and healthy.
Additionally, $20 million is provided per year to fund the Open Fields Initiative. Open fields underwrites State programs, such as the 1 million-acre program in South Dakota that offers incentives to farmers and ranchers who voluntarily open their land to hunting and fishing.
I believe this farm bill targets a higher percentage of Federal farm program payments to family-sized farming operations. Several modifications to payment caps and the elimination of the three entity rule included in this bill are a step in the right direction to providing assistance where it is most needed: to family farmers and ranchers across America.
However, those who criticize farm policy must be careful in their characterizations of ``large-scale'' farmers. A family farming operation consisting of a father and one or more offspring in today's agricultural scale can easily gross several million dollars, while providing a modest living to the family members. We don't want to shut the door of these family operations by taking away economic safety net programs or the conservation tools they need to productively farm.
Americans' health and nutrition is a major consideration in this farm bill as well. For example, of the total budget outlays in this farm bill, 67 percent of the amount falls under the nutrition title, compared to less than 15 percent for the commodity title, and 9 percent for the conservation title. In the Senate farm bill, the Fruit and Vegetable Program, a part of the School Lunch Act which was previously restricted to a number of States, would be expanded to operate in every State in the country. Additional funding would be made available to each State based upon the proportion of the population of a State to the population of the United States.
Additionally, a provision I offered, which is included in the farm bill, expands the fresh fruits and vegetables School Lunch Program to over 100 Indian reservations nationwide.
Mr. President, one of the problems we encounter when drafting farm legislation, when commodity and livestock prices are higher, is the perception that these high prices will last. A farm bill lasts only 5 years. We have no guarantee current prices will remain steady for the next 5 years. Anybody who has been associated with production agriculture for any period of time will tell you these prices we are experiencing currently are not going to last permanently.
The 1996 farm bill was written during a higher commodity price cycle, with not enough thought given to how the policy would work when prices dropped. During the last 2 years of that farm cycle, billions of dollars in market loss assistance payments were issued because of an inadequate ``safety net.''
The current direct payments structure included in this farm bill is a fixed payment based upon historical planting, not current crops, yields, or prices. This decoupling keeps the United States more compliant with international trade agreements.
Mr. President, I encourage my colleagues to support this farm bill. I ask them to carefully consider the countless hours of discussion and negotiations, the numerous field hearings held by the Agriculture Committee across the country, and the voices of the American people that have been heeded by the Agriculture Committee in writing this bill.
As noted earlier, this is not a perfect bill. There has been no perfect farm bill in my experience, and I have been associated with several as a former staffer, and now as a Member of the Senate, and prior to that, as a Member of the House of Representatives.
This is a balanced farm bill that will make America a better place for all of us and will make rural America stronger. It includes the important components I talked about: A strong safety net that includes the disaster title of the bill, which is something we fought long and hard for; a strong energy policy that will help encourage and provide financial incentives for the development of cellulosic ethanol production in this country; and a strong conservation title and, as I said earlier, a tremendous investment in the nutrition title of the bill. It is all done in a way the CBO says is paid for.
I think it is important, as we move the bill forward, we help people across this country understand what is at stake in a farm bill. I think a lot of people across the country sometimes fail to grasp the importance of making sure we have a safe and reliable and affordable food supply in this country. If you look at other countries in the world--such as in Europe--they know what it is like to go hungry.
One of the reasons we have had farm policies in place for some time is because Americans learned during the Great Depression we have to have a strong farm economy that meets the food needs of people in this country.
The other thing I will mention--and I will come back to it because I said I would--is that this traditionally has been a farm bill that deals with food and fiber for the American people. I believe we are making a transition as well. In this particular farm bill, it is not just about food and fiber, it is also about fuel. I believe we have a responsibility as Members of Congress to do everything we can to lessen our dependence upon foreign sources of energy. I am deeply concerned about the future of this country when oil prices are approaching $100 a barrel and gas is over $3 a gallon, with no end in sight. We have little or no control over that because 65 percent of our petroleum comes from outside the United States from foreign cartels.
I happen to believe, as a matter of principle and practice, it is better for us, as a country, when it comes to buying our energy, to buy it from an American farmer where we are adding jobs and growing the economy in this country than giving our money to some foreign cartel that might use it to fund a terrorist organization that will turn around and attack the United States. That is why the energy policy of this particular farm bill is so important.
I have an amendment that has been filed, along with Senators Domenici, Dorgan, Johnson, and Nelson--I believe the Presiding Officer is on it as well--which would expand the renewable fuels standard beyond where it is today. The standard we adopted in the 2005 farm bill calls for 7.5 billion gallons of renewable energy by 2012.
Mr. President, we are going to hit 7.5 billion gallons by the end of this year. It is important for those who are investing in the ethanol industry, for our farmers and for those making decisions about whether to build another plant--and a lot are planned and under construction. We have 13 ethanol plants in South Dakota, and four are under construction. We have ethanol plants all across the country in some phase of construction that have been stopped cold because of the uncertainty about the future of the industry. When we blow by 7.5 billion gallons of production of ethanol, we need to know what the future holds.
The Energy bill contained a provision that expanded the renewable fuels
standard to 36 billion gallons by 2022. We have said we hope the Energy bill passes, but in the event it doesn't--and that looks to be uncertain--we ought to try to get that renewable fuels standard passed as part of this farm bill. It improves and strengthens the energy title in the farm bill by guaranteeing there is a market not only 10 years from now, or in 2022, when it calls for 36 billion gallons, but next year, in 2008, when we have already gone by the 7.5 billion-gallon cap called for in the 2005 bill.
This amendment would get us to 8.5 billion gallons by next year. So there would be another billion gallons of ethanol production called for in the renewable fuels standard. That is of immediate concern to this industry. We need to grow the industry. If you look at the statistics, in 2006, the production and use of ethanol in the United States reduced oil imports by 170 million barrels, saving $11 billion from being sent to foreign and sometimes hostile countries.
This is an industry we need to continue to support. When we get 65 percent of our petroleum needs outside of the United States, it is critical we continue to develop home-grown energy we can make from renewable sources in the United States, which is not only good for the economy and the environment, but for our energy security. I hope during the course of the farm bill debate, when decisions are being made about which amendments to allow to be considered and debated and voted upon, the renewable fuels standard amendment is on that list. I think it is that important. I don't think there is anything, frankly, more important that we can be doing, with the exception of ensuring there is a good, strong safety net in the bill that will help secure American agriculture for the future, help keep this growing renewable fuels industry prospering and expanding and doing what they do best, and that is reducing our dependence upon foreign energy, having a renewable fuels standard in place that expands dramatically beyond where we are today.
As I said before, there are great incentives in this bill for cellulosic ethanol production. People say we are running out of room or ceiling when it comes to corn-based ethanol. That may be true. We believe it is about 15 billion gallons that we can get from corn, and then we have to figure out how to make it out of some other form of biomass. But there is investment going on in R&D and technologies that, I believe, is going to be commercialized in the near future that will allow us to use switchgrass, wood chips, and other types of biomass. There is a project in South Dakota right now to make cellulosic ethanol from corncobs on a commercial scale. According to POET Energy, using more of the corn crop for ethanol production, such as corncobs, will be able to produce 11 percent more ethanol from a bushel of corn and 27 percent more from an acre of corn.
So we are already beginning to make a transition from the kernel of corn to the cob and dramatically increase the amount we can produce. Couple that with the research going into producing ethanol from switchgrass, blue stem grass, wood chips, and other types of biomass, the sky is the limit.
It is important we keep this going. We are facing a serious crisis, in my view, if we don't expand the renewable fuels standard. Frankly, I hope we increase the blends that are allowed of ethanol, blended with a gallon of gasoline, from the current 10 percent to a higher level--I hope to 20 percent--which would act in a dramatic way to double the market for ethanol. These are steps we need to be taking as a country, as a Congress, if we are serious--and we need to be serious--about this problem we have today of nearly $100 a barrel of oil, with no end in sight to where it is going, and us having no control of that because we are so dependent upon foreign sources of energy.
The amount of ethanol we produce in this country, it could be argued, maybe isn't all that significant to the amount of gasoline we use--7.5 billion gallons of ethanol, and we use about 140 billion gallons of gasoline every year. When you talk about displacing 170 million barrels of oil, saving $11 billion from being sent overseas to some foreign country, a foreign cartel, that is $11 billion that is staying right here on American soil, investing in American jobs and in the American economy.
This is an industry we need to keep going. I hope the renewable fuels standard amendment will be included in that list and, as the bill progresses through the process, I hope we can get a product through in the near future so that we can pass it, go to conference with the House and, hopefully, ultimately, get a bill on the President's desk. At that point, we will have the challenge of getting the President to sign the bill.
I think the bill is made stronger by these energy provisions being included because I think it is so important to America's future--not just to the future of agriculture in South Dakota or Colorado or places like that, but to America's future. This farm bill takes us in a great direction, and the renewable fuels standard amendment will make it that much stronger.
I hope we can get into the deliberations about this and that we can get working on amendments and voting on amendments and getting a bill passed, with a big bipartisan vote, that we can send to conference and on to the White House that will put in place a policy for the next 5 years that will make agriculture strong, make America competitive in the world marketplace, and make sure we have food, fiber, and fuel for America's future.
I yield the floor, and I suggest the absence of a quorum.