[Extensions of Remarks]
[Pages E1221-E1223]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

HUGO AND LAMAR AGRICULTURE FORUMS

______

HON. BOB SCHAFFER

of colorado

in the house of representatives

Thursday, June 10, 1999

Mr. SCHAFFER. Mr. Speaker, last month during the April district work
period, I had the opportunity to hear from many of my constituents
regarding the economic challenge in agriculture. Specifically, on April
7, 1999, I held two agriculture forums, one in Hugo, Colorado, and one
in Lamar, Colorado, to discuss some of the challenges facing
agricultural producers. The purpose of these forums was to allow
individuals and organizations to provide advice and suggestions about
the problems currently facing today's farmers and ranchers. We heard
from a number of experts who made presentations and fielded questions
at the well-attended events.
For example, at the earlier meeting in Hugo, we heard from Mr.
Freeman Lester, President of the Colorado Cattlemen's Association
(CCA). He mentioned country-of-origin labeling, packer concentration,
the European ban on hormone enhanced beef, estate taxes, wilderness
legislation, and reform of the Endangered Species Act as his main areas
of interest and concern. At this time, Mr. Speaker, I hereby include
the ``Colorado Cattlemen's Association Key Issues for the 106th
Congress'' in the record.

Taxes.--CCA supports the repeal of the death tax and
reductions in capital gains taxes. Death taxes are extremely
punitive with onerously high rates, and are the leading cause
of the breakup of thousands of family-run ranches, farms and
businesses. Congress' Joint Economic Committee has concluded
that death taxes generate costs to taxpayers, the economy and
the environment that far exceed any potential benefits
arguably produced.
Country-of-Origin Labeling.--CCA supports efforts to let
consumers know the origin of the beef they purchase. Consumer
surveys have consistently shown that the majority of
consumers support country-of-origin labeling for meat.
Imported beef is labeled by country-of-origin, either on the
product or on shipping containers, when it enters the U.S. to
facilitate inspection. However, these labels are lost during
further processing. Country-of-origin labeling will provide a
``brand-like'' mechanism for the beef industry. Currently
most beef is marketed as unbranded generic ``beef''
regardless of where it is produced. Other countries require
U.S. beef to be labeled by country-of-origin. Japan has
required all meat imports be labeled by country-of-origin
effective July 1, 1997 and Europe will likely require
labeling comparable to that required for domestic product,
once access to the European market is achieved.
Price Reporting.--CCA supports mandatory price reporting by
any U.S. packer controlling more than 5 percent of the live
cattle market. CCA also supports price reporting on boxed
beef and imports. It is vital to keep the playing field level
especially given that four major packers slaughter 80 percent
of the fed cattle and market approximately 85 percent of the
boxed beef. Openly assessable up-to-date information and
market transparency are necessary to keep the highly
concentrated processor sector from having insider or
privileged information that could give packers a significant
advantage over sellers or others in the beef trade. Secretary
Glickman has publicly indicated that the U.S. Department of
Agriculture (USDA) would welcome authorization to implement
mandatory price reporting.
Water Quality.--CCA believes that water quality regulations
address site-specific as well as species-specific needs and
are based on sound science, taking into account current
cattle industry environmental and economic practices that
have been successful for generations.
Property Rights.--CCA supports passage of a law to require,
at minimum, the federal government to prepare a takings
implication assessment (TIA) prior to taking an agency
action. Such TIA should: define the point at which a
reduction in the value of the affected property, due to a
regulation, constitutes a compensable taking; set clear
takings guidelines, and provide a mechanism for landowners to
avoid lengthy and costly litigation.

Also on hand was Mr. Brad Anderson, Executive Director of the
Colorado Livestock Association (CLA). Mr. Anderson expressed his
disappointment with the lack of fairness in implementation of the North
American Free Trade Agreement (NAFTA). Specifically, he felt our
government should do more to expose Canada's subsidies and that we
needed to do a better job of opening more markets around the world for
Americans agricultural products.
He also mentioned his concern with Amendment 14, a recently passed
state ballot initiative, he said would ``put hog producers out of
business.'' Amendment 14 sets the air particle ratio, an odor
measurement, for hog farms at 2-1, a standard which is virtually
impossible to meet. The air particle ratio for industry is 7-1, leading
him to believe that agriculture is being unfairly targeted.
Mr. Anderson also mentioned the shortage of workers and the need to
eliminate the sales tax on agricultural products, which was recently
accomplished at the state level at the end of this year's session of
the General Assembly in Colorado.
The panel also included Mr. Greg King of the Lincoln County Farm
Service Agency (FSA). Mr. King mentioned his frustration with the
Freedom to Farm Act passed by Congress in 1996. He felt it would not
work as originally designed, unless our government was willing to open
more markets for trade. ``We are currently shut out of 108 markets
because of embargoes,'' he said.

In addition, Mr. King also spoke of the need to reform the Endangered
Species Act. He specifically mentioned the possibility of devastating
impacts to the agricultural industry should the proposed listing of the
mountain plover and the black-tailed prairie dog move forward. The
irony is that the Natural Resource Conservation Service under (USDA)
has worked with farmers and ranchers for years to develop
``environmentally friendly'' ranching and farming practices. Now,
however, the U.S. Fish and Wildlife Service (USFWS) has stepped in and
said farmers and ranchers need to manage their land for these species,
the mountain plover and the black-tailed prairie dog. if this were to
occur,

[[Page E1222]]

ranchers would be forced to manage at least a portion of their land in
a way which could include overgrazing and other practices harmful to
the environment.
Mr. Ron Clark, Secretary-Treasurer of the Colorado Association of
Wheat Growers, was another member of the panel. Mr. Clark observed
wheat prices are very low. Low wheat prices combined with two above
average wheat crops in the last two years have caused an extreme
hardship for wheat farmers. At this point, Mr. Speaker, I will include
for the Record Mr. Clark's remarks:

Thank you Congressman Schaffer for the opportunity to
provide comments at this Ag. Forum. My name is Ron Clark and
I am a wheat producer from Matheson, Colorado, and Secretary-
Treasurer of the Colorado Association of Wheat Growers.
Wheat prices are at their lowest level in eight years as a
result of two above average U.S. wheat crops and ending
stocks of wheat significantly above historic levels. Because
of this difficult situation, the National Association of
Wheat Growers has developed a 1999 Wheat Action Plan which I
would like to highlight for you.
First, let me discuss the domestic part of the plan. We
need a safety net. This can be accomplished by the following
legislative action: lifting loan caps and reauthorizing '99
market loss payment; advancing year 2000 agricultural
marketing transition act payments; and reforming crop
insurance to develop affordable alternatives that will
protect against crop and revenue losses.
Now, let me discuss the export part of the plan. We
recommend the following legislative action to move more U.S.
wheat into export markets.
Request that the administration immediately approve Niki
Trading Company's request to buy $500 million of U.S.
agricultural products for Iran, including two million metric
tons (or 73.5 mil. bu.) of wheat.
Seek an end to trade sanctions that currently preclude U.S.
wheat from 11 to 15 percent of the world wheat market.
Fund existing export programs to the full extent authorized
in the 1996 Farm Bill.
Fund discretionary export programs like PL-480 Title I and
the Foreign Market Development Cooperator Program at Fiscal
Year 1999 program levels or greater.
Fund the Market Access Program at the Fiscal Year 1999
level.
Fund the Export Enhancement Program at the Farm Bill
authorized level of $579 million and strongly urge the
Secretary of Agriculture to use it.
Approve trade negotiating authority (or fast track)
immediately.
Approve the United States Agricultural Trade Act of 1999
(S. 101), to promote trade in U.S. agricultural commodities,
livestock, and value-added products and to prepare for future
bilateral and multilateral trade negotiations.
Approve the Food and Medicine Sanctions Relief Act of 1999
(S. 327), to exempt agricultural products, medicines, and
medical products from U.S. sanctions.
The Colorado wheat industry sincerely appreciates your
leadership and support that you have shown as a member of the
House Agriculture Committee. We look forward to hosting the
annual wheat tour for you again this year on June 5. I would
be happy to answer any questions that you might have. Thank
you.

Another member of the panel was Mr. Carl Stogsdill of Lincoln County,
representing the Farm Bureau. Mr. Stogsdill spoke of his concerns
relating to the Endangered Species Act and its impacts on farmers and
ranchers. Following are the Farm Bureau's ``Priorities For the 106th
Congress:''

Food Quality Protection Act.--Farm Bureau has declared the
proper implementation of the Food Quality Protection Act as
its top priority. Farm Bureau will work with the
Environmental Protection Agency (EPA), land grant
universities and local officials to get the act implemented
as Congress originally intended.
Budget and Tax Reform.--Farm Bureau will continue to work
for the elimination of the ``Death Tax'' and reduction of the
capital gains tax. Other issues include: Farmer and Rancher
Risk Management accounts, the balanced budget amendment,
elimination of the Alternative Minimum Tax for agriculture,
income averaging, unemployment tax exemption and Individual
Retirement Accounts for farmers.
Environmental Issues.--Farm Bureau will continue to push
for private property rights protection and elimination of
disincentives in regard to endangered species, clean water,
clean air and wetlands.
Trade.--Farm Bureau will be heavily involved in gaining
``Fast Track'' authority for the administration and
eliminating existing trade barriers. Also, Farm Bureau hopes
to be active in this year's round of the World Trade
Organization's discussions.
Regulatory Reform.--Farm Bureau will attempt to pass
legislation requiring standardized risk assessments and cost/
benefit analysis on all proposed regulations. There will also
be a push for a reform of the Department of Labor's H-2A
program.

Mr. Mark James of the Lincoln County Stockmen also served on the
panel and expressed his concern with aspects of the Endangered Species
Act. Mr. James thought it was silly black-tailed prairie dogs would be
added to the Endangered Species List. ``Prairie dogs? Get reasonable,''
he said. Mr. James' comments were echoed by many of those in
attendance.
Later that evening, at the forum held in Lamar, Mr. John Schweizer,
District Representative for the Colorado Farm Bureau, spoke about
issues facing farmers in the southeastern portion of the state. Mr.
Schweizer cited his hope there would be continued tax relief for
farmers such as complete elimination of the ``death tax.'' He was quick
to point out, however, that even though times are tough, ``(farmers)
are not looking for handouts.'' In fact, he expressed support for the
1996 Farm Bill which was supposed to remove government from the farm.
Unfortunately, according to Mr. Schweizer, ``rather than cut the cord,
the government tightened the noose.''
Mr. Schweizer also said the Administration and Congress needed to do
more to open markets abroad. One way in which this could be
accomplished, he felt, would be to fully fund and utilize the Export
Enhancement Program. He also questioned the effectiveness of shutting
American farmers out of world markets by using political sanctions
against other countries.
Chad Hart of the Prowers County Farm Service Agency also offered his
perspective. His main concern was the administration of the disaster
assistance program which is running way behind. Cuts in funding have
adversely impacted their ability to do their job in that the speed of
response to emergencies has been greatly reduced. They are forced to do
much more with far fewer employees.
Another member of the panel was Mr. Bob Arambel of the Northeast
Prowers County Conservation District. He runs a farm northeast of
Holly, Colorado, and has had concerns regarding water quality on the
lower Arkansas River. Although they have received some money to
increase their compliance with water quality statutes, he was concerned
reauthorization of the Clean Water Act may have adverse impacts on
farming and ranching in the region if standards cannot be met right
away. Mr. Arambel also had concerns about the direction of the
Endangered Species Act.
Mr. Vernon Sharp, President-elect of the Colorado Cattlemen's
Association, mentioned taxes as his issue of greatest importance. He
felt estate taxes and capital gains taxes were big problems, that they
were punitive in nature and punished people for making good business
decisions. He also felt the government should provide some sort of
income tax relief in the near future. ``This year I spent $900.00 to
have someone do my taxes to find out I have no income,'' he said.
Mr. Sharp went on to say property rights were also a very important
issue and the federal government should fully compensate landowners
when impeding their ability to use their land as they see fit. He cited
the Endangered Species Act as a major threat to farmers and ranchers
and their ability to manage their land.
Also on the panel was Mr. Jim Geist, Executive Director of the
Colorado Corn Growers Association. At this point, Mr. Speaker, I refer
the House to the remarks of Mr. Geist.

On behalf of Colorado's corn farmers, I appreciate the
opportunity to express corn's policies and positions on
issues that will have direct and indirect effects on the
state's corn industry.
Demand for corn grows when our customers are satisfied. To
increase demand and customer satisfaction, the United States
must become a dependable supplier of commodities. Some of the
issues that can assure U.S. corn and its products full access
to world trade markets include the following: sanction
reform; Fast Track authority; support of IMF funding and
trade negotiations, including the specific objective of
mutual acceptance of genetically enhanced agricultural
products; continued leadership in the World Trade
Organization; and Free Trade Area of the Americas
negotiations.
Corn producers continue to strive for a fair deal from the
government. They are looking for market-driven farm programs,
minimal consistent regulations, federal tax policy reform and
sufficient financial and credit program so that this country
can maintain its food security.
Improving our national transportation infrastructure in
order to maintain a competitive advantage is becoming a high
priority for grain producers nationwide. Upgrading rivers,
locks and dam systems, improving the nation's railroad system
and maintaining adequate highway funds for states will enable
grain producers to move commodities to domestic and
international customers when needed.
We support an active research and education commitment by
all segments of the corn industry and government. Research
and commercialization of corn products adds to the value of
corn. Investing in technological advancements, working with
the marketplace, and educating and communicating with
consumers about the value of corn in their daily lives will
enable our nation to have a stronger rural economy and
greater national economic strength.
Leaving our world in better shape than when we found it has
been a top priority in agriculture for generations. In using
Best

[[Page E1223]]

Management Practices (BMP) to build soil through
conservation programs, BMP implementation to improve water
quality, and utilizing the best crop protection practices
available, corn producers are truly planting a crop that
can help clean up the environment, from both a water and
air quality standpoint. The growing concern within
agriculture is the small, vocal, hard-line environmental
groups trying to impose regulations on production
agriculture that are uneconomical, unproven and that could
have the effect of driving our nation's food production
capabilities off our shores.
Agricultural producers in Colorado are struggling with poor
economic conditions in the marketplace due to burdensome
supplies--supplies that could be sold in international
markets--and environmental regulations that will choke off
sustainable food production capabilities. Much has to be done
in short order to protect one of our nation's most valuable
resources--America's farmers and ranchers.
Again, thank you for the opportunity to express to you just
some of the issues and concerns that Colorado corn producers
will be focusing on in the near future.

Our last panelist of the evening was Ms. Elena Metro, State Executive
Director of the Colorado Pork Producers Council. Her thoughts focused
on the state initiative, earlier alluded to, Amendment 14. Ms. Metro's
presentation included this statement which I ask to be included in the
Record:

The Colorado pork industry has been singled out by
individuals and groups to be ``controlled'' by harsh rules
and regulations. Amendment 14 here in Colorado is the result
The Colorado Pork Producers Council on behalf of the pork
industry in Colorado asks that if rules and regulations are
written and become law, whether on a state or national level,
that these rules be based on ``sound science,'' be fair and
equitable, and not ``socially engineered.''

Mr. Speaker, I would like to close by thanking all of the
participants for their input. Former Speaker of the Colorado House of
Representatives, Mr. Carl ``Bev'' Bledsoe moderated the forum in Hugo.
Ms. Sparky Turner moderated the forum in Lamar. Both did an outstanding
job and helped draw many helpful thoughts and comments from all
speakers.
It's obvious after hearing from my constituents that more needs to be
done to expand trade with foreign countries. We need to bring some
sanity to the Endangered Species Act, and we need to use sound science
when making decisions about regulations which will affect a very
important segment of our population--the farmer.

____________________