May 19, 2000

Congress given
$11.5 billion farm aid package

The Clinton administration on May 4 sent to Capitol Hill an $11.5 billion farm package aimed at strengthening the farm safety net for American farmers and ranchers.

Agriculture Secretary Dan Glickman said the package, which covers a two-year period, would offer some retooling of the 1996 Freedom to Farm law.

“President Clinton and I have repeatedly warned that the 1996 farm bill offers an inadequate safety net for farmers,” said Glickman. “This legislation would enhance farm income, increase environmental protections, expand crop insurance and expand economic opportunity in rural America.”

The core of the package is special payments, which would flow automatically to U.S. grain, cotton and oilseed farmers when prices are low. Some $3.06 billion would be dispersed for this year’s crops and $2.54 billion for 2001 crops.

The package also contains 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.