March 17, 2000

As preparation for spring crops continues across the state, House Agriculture Committee members broke ground in Lubbock March 6 for the first of 10 nationwide hearings to hear producer assessments of the nation’s current farm policy. Testimony from 19 producers—including Texas Farm Bureau President Donald Patman—praised the flexibility of "Freedom to Farm," while voicing their agreement with Committee Chairman Larry Combest (R-Tex.) that those market freedoms also require the government to fulfill its responsibilities to international trade-opening agreements, less costly regulations, and recognition of the tax burdens placed on producers.

"All of the members at this hearing know that we have a problem in agriculture," Combest said. "Producers expressed a clear desire to find improvements in farm policy, but no desire to abandon what we have."

Patman, a cotton, wheat, corn, soybean and beef producer from Waxahachie, said the provisions of the 1996 FAIR Act—specifically the flexibility that allows a farmer to plan for the marketplace—must be a part of any farm program. Under the FAIR Act, he said Agricultural Market Transition Act (AMTA) payments have been helpful in supplying a minimum safety net.

"We support the continuation of market transition payments as a hedge against risk, and also support their use in periods of low prices," Patman testified. "Recognizing that there are some problems with absentee landowners, these payments in the past two years have been critical to the industry."

The TFB president also urged the development of a counter-cyclical safety net to supplement AMTA payments, and stressed "adjustments must be made when periods of low prices extend several years, as they currently have." Patman suggested that with the current forecast of continued depressed prices, emergency supplemental funding at least equal to last year’s disaster package could be needed.

The farm leader also said improving trade is a high priority for Farm Bureau, suggesting the government implement the following:

• Lift trade sanctions.

• Provide permanent normal trade relations for China.

• Increase funding for P.L. 480, a food relief act.

• Increase the use of the Export Enhancement Program to gain additional foreign markets, including the continued use of Step 2 and Step 3 for cotton.

Crop insurance was another concern of the state’s largest farm organization, Patman said.

"Mr. Chairman," he said, addressing Combest, "this comes as no surprise to you, but crop insurance simply does not work. The program fails to protect legitimate producers and also allows abuses to the system."

Patman said Farm Bureau supports H.R. 2559, the legislation passed by the House Agriculture Committee, and hoped "that compromise can come with the Senate, soon."

He suggested special emphasis should be given to the development of a viable risk management program for livestock.

Finally, Patman said Farm Bureau supports the current loan rate structure put in place by the FAIR Act.

"Unfortunately, when those loan rates were established, no one expected farm prices to fall below those low rates," he said. "As an organization, we are concerned about government holding stocks, or producers simply looking for a government payment.