GLICKMAN SENDS LEGISLATION TO CONGRESS TO HELP FARMERS Release No 0145.00 Mary Beth Schultheis (202) 720-4623 mary_beth.schultheis@usda.gov GLICKMAN SENDS LEGISLATION TO CONGRESS TO HELP FARMERS WASHINGTON, May 4, 2000 Agriculture Secretary Dan Glickman has sent Congress legislation to enact President Clinton's $11.5 billion plan to significantly strengthen the farm safety net for American farmers and ranchers. "President Clinton and I have repeatedly warned that the 1996 Farm Bill offers an inadequate safety net for farmers," Glickman said. "Now two years of low commodity prices, natural disasters and nearly $15 billion in off- budget emergency relief for farmers have shined a glaring light on the inadequacies of the safety net provisions of the '96 legislation." Glickman added that the agriculture community rightfully expected that Congress would finally see the need to retool the farm bill and provide for a long-term safety net, but since that has not happened yet, Congress should enact Farm Bill changes to provide counter cyclical payments that increase when times get tough and decrease when the farm economy rebounds. "This legislation would enhance farm income, increase environmental protections, expand crop insurance and expand economic opportunity in rural America," said Glickman. The President's proposal, unveiled earlier this year, includes Supplemental income assistance payments to eligible farmers, when their gross income for a crop falls below 92 percent of their preceding five- year average. The dairy price support program is also extended to 2002. A new $600 million Conservation Security Program to provide annual stewardship payments to farmers and ranchers who implement sound conservation practices. An expansion of the Conservation Reserve Program acreage cap to 40 million acres; sets the Wetland Reserve Program's annual enrollment cap at 250,000 acres; increases funding for the Environmental Quality Incentives Program to $325 million annually; reauthorizes the Farmland Protection Program at $65 million annually; and provides $50 million annually to reauthorize the Wildlife Habitat incentives Program. Provisions for reforming the crop insurance program by significantly discounting farmers' premiums, addressing losses that occur in multiple years, establishing a pilot program for livestock, providing additional funding for research and development, modifying the area-wide trigger on non-insured assistance payments, and requiring crop insurance coverage for participation in other programs. Expands economic opportunities by providing for annual funding of $15 million, through FY 2008, for the rural communities that the Administration had previously designated as empowerment zones and enterprise communities. Proposes using $80 million in FY 2001 and $50 million in FY 2002 to provide capital equity for new livestock and other processing cooperatives. This major new two-year initiative will significantly strengthen the farm safety net and broaden Federal support to more producers of more commodities in more areas of the country. In addition, new initiatives are being taken under current authorities to maintain maximum marketing assistance loan rates, provide farm storage facility loans, make incentive payments for bioenergy production, and for enrollment of land in the Conservation Reserve Program continuous sign-up. In total, it will provide more than $11.5 billion in greatly needed additional assistance to the rural economy.