Motion To Instruct Conferees On H.R. 2419, Food And Energy Security Act Of 2007
I thank the chairman. My friend from Arizona and I agree many times on many issues, but this is one on which I must disagree. There has been a lot of discussion about reform in the farm bill. I think before I go down and list some of the…
I thank the chairman.
My friend from Arizona and I agree many times on many issues, but this is one on which I must disagree.
There has been a lot of discussion about reform in the farm bill. I think before I go down and list some of the reform that is being considered in this current farm bill, I think we have to step back and look at what has transpired with the 2002 farm bill.
The 2002 farm bill actually cost $25 billion less than what it was originally projected to cost. Let me repeat that. This is a Federal program that actually came in $25 billion less than what it was budgeted. I would ask my friend from Arizona; name me another mandatory program in the last 5 years that has come in under what was originally projected.
Additionally, the Congressional Budget Office projection for what farm policy will cost has imposed for the baseline going forward a $60 billion reduction over what was originally planned in 2002. The reason that that reduction is in place and the reason that this bill came in $25 billion less than what it was projected is because it was working the way it was supposed to.
And it was designed when commodity prices were low for there to be a safety net so that we could preserve that farm infrastructure. When the commodity prices are high, then the safety net was not available because there was no need for that safety bill. So when you look at the reform, $60 billion sounds like a lot of reform to me. Now I don't know about out in Arizona, but $60 billion in Texas is a lot of money.
Additionally, one of the things, and I think the chairman alluded to this, is that both in the House and the Senate bill, the three-entity rule has been eliminated bringing some transparency; in other words, being able to boil it down, who is actually farming, and making sure that the farm safety net is actually available to those people that are involved, actively engaged in farming.
The other thing that is going on here is that with the elimination of that three-entity rule, it is estimated that some 50 percent reduction will be affected, some of the operations that are
currently under this bill. So that is a fairly good reduction when you look at 50 percent for some of those operations.
Compared to the House and the Senate version, quite honestly, a $10,000 reduction has been on the table over the original House version. As the chairman mentioned, these discussions are still under way and we don't know what that final number is going to be.
The other thing, and the chairman also alluded to this, because there has been a lot of discussion about are these payments going to millionaire farmers. And so one of the things that we have taken is steps to materially reduce the adjusted gross income figure, some 70 percent reduction.
Now I think the point that the chairman was trying to make, and it is a very important point, 30, 40, years ago farmers across America could farm a small piece of land and make a good living. Today, in a global economy where they are competing with producers all over the world, what they are faced with is, how do they get to a size that makes sense with today's cost of production and with today's cost of tractors and all the equipment necessary. And the days of a small farm being able to support a family are gone. So today, many farmers in my district, for example, are farming 3,000 and 4,000 and 5,000 acres, and this is still a family farm. This is not a company that has a lot of employees; this is a family farm. And so when you look at those numbers, it takes a lot of money, it takes a lot of capital and investment for them to produce this many acres.
Farmers are taking a big risk today. Yes, the commodity prices are up, and that is a good thing for farmers and producers. The bad news for them, though, is that their costs are up as well. Looking across fuel and fertilizer and all of those, in just the last few years production costs for commodities is up almost 25 percent.
One of the things that, as we look at this farm bill, I think we have to step back and look at it and I think sometimes I get kind of amused. As we talk about this farm bill, only about 12 percent, Mr. Speaker, 12 percent of this farm bill actually has anything to do with production of agriculture. A good portion of this farm bill has to do with food stamps and nutrition programs and conservation programs. While those may be worthy, I am not here to debate those, when we look at the production of the agriculture part, the part that actually allows American agriculture to produce food and fiber for Americans, we are talking about 12 percent of this bill having anything to do with that.
So when you step back, why is that important to America? Why should America be concerned about having a good, strong agricultural industry in this country? Well, I will tell you why, Mr. Speaker. Right now, we are watching with amazement as we look at people, Americans across America having to pay $3.50 a gallon for gasoline. We have seen tremendous increases. This country today is energy dependent. That means that we wake up every morning looking for some other country to furnish the energy that it takes to run our country's economy. It is, quite honestly, a security risk to our country as well as an economic security risk to our country. And so how did we get in that situation is because we let America's infrastructure for producing energy fall to the wayside. We did not make it a priority.
My greatest fear here today is that, as we move forward, if we begin to undermine American agriculture, who will then feed and clothe Americans in the future? Do the American people want to wake up every morning and wonder where we are going to get our next meal? What country is going to feed us?
Because we let American agriculture infrastructure fall to the wayside. Our producers are competing on an unlevel playing field. I wish the playing field was level. If the playing field was level, we wouldn't need any of these programs, because American producers can compete with anybody in the world on a level playing field.
Unfortunately, the WTO discussions that we have been involved in have not yielded much fruit. Many countries that our producers are competing with all across the world are competing against other countries that provide subsidies at a much greater level than we are providing under this underlying bill.
So while I appreciate the gentleman from Arizona's concern about being fiscally responsible, I understand that he would like to see some reforms. I am here tonight to tell him that there are a lot of reforms in this bill. But at the same time, it is important to have a balanced bill to make sure that we have a strong agricultural economy in this country from this point forward so that when Americans wake up every morning, they are not going to worry about who is going to feed or clothe them.