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Texas Agriculture Archive

May 17, 2002

FB: energy bill good for farmers

The American Farm Bureau Federation has applauded Senate passage of a comprehensive energy bill that will benefit American farmers, consumers and the environment.

The energy measure's highlight—the renewable fuels standard—calls for the use of 5 billion gallons of renewable corn-based ethanol and soybean-based motor fuels by 2010. The measure also bans the petroleum-based oxygenate MTBE, which has been shown to pollute groundwater. Farm Bureau was instrumental in crafting this historic agreement between the petroleum industry and agriculture.

"The Senate energy bill is a victory for agriculture," said AFBF President Bob Stallman. "The new renewable fuels requirements will triple the use of farm-grown motor fuels over the next 10 years—boosting commodity prices and farm income, reducing our dependence on foreign oil, and helping to achieve air pollution reduction goals."

Estimates show the renewable fuel standard will replace 66 billion gallons of foreign crude oil and increase net farm income by more than $6.6 billion per year.

Stallman also praised senators for rejecting a measure that would have increased fuel economy standards for light trucks—an every day "tool" on farms and ranches.

Because of the horsepower farmers and ranchers demand from light trucks to perform daily tasks, Stallman said any power reduction as a result of increased efficiency standards would "impose serious hardships on American's farmers and rural communities."

Even though the Farm Bureau-supported issue of limits on packer ownership of livestock was dropped from the final version of the farm bill, that measure's primary sponsor, Sen. Tim Johnson (D-S.D.) continues the push for reform.

In a letter to Senate Agriculture Chairman Tom Harkin, Johnson called for a packer ownership field hearing in his home state.

In his letter, Johnson said the issue was "of such importance to livestock producers" in his state and to other livestock producers across the nation that he was requesting that a hearing on his packer ownership legislation be convened "as soon as possible."

"I think it would serve the committee best to convene a hearing in South Dakota, where authentic farmers and ranchers deal with these issues on a daily basis, rather than in Washington, where the packer-apologists are most comfortable," Johnson wrote. "While the opponents of making livestock markets more competitive are probably celebrating the defeat of my legislation in the farm bill conference, it's critical that Congress demonstrate leadership and a willingness to act on this issue in a timely manner."

Homeland security efforts continue

Agriculture Secretary Ann Veneman has outlined steps the Agriculture Department has taken to strengthen homeland security planning and preparedness.

Veneman announced that USDA has allocated $43 million to assist states increase homeland security preparedness through grants and federal/state partnerships.

In testimony before the Senate Appropriations Committee, Veneman discussed how USDA is spending $328 million allocated to the department in January through the defense appropriations supplemental.

Veneman also outlined proposed increased spending in USDA's fiscal year 2003 budget, which would provide support for pest and disease protection systems and food safety programs.

"Following September 11th, we took immediate steps to secure sensitive facilities and examine vulnerabilities throughout the food chain," Veneman said. "Today we remain vigilant."

Amendments may kill TPA

U.S. Trade Representative Robert Zoellick said that an amendment that could be offered to trade promotion authority legislation in the Senate is a "killer amendment" that could bring down the whole bill.

The amendment, drafted by Sens. Larry Craig (R-Idaho) and Mark Dayton (D-Minn.) would allow Congress to amend provisions of future trade agreements that alter U.S. antidumping, countervailing duty and other trade remedy laws.

"[I]t basically says, 'yeah, you can use TPA for everything but any thing that changes our laws,' which is a lot, and it kills the whole thing," Zoellick said in a speech to the business group Council of the Americas.

Zoellick said there were other amendments "that in my view are killer amendments," but he didn't specify any of them other than the Craig-Dayton amendment.

Zoellick urged his audience to increase its lobbying on behalf of TPA and against any "protectionist" forces in the textile and steel industries.

Otherwise, he said, "we're going to lose this thing."

Notable Quotables

"(This farm bill) is for rural America. It's not for rural Mexico, it's not for rural Canada, it's not for rural Europe."

—House Ag Committee Chairman Larry Combest (R-Texas) in response to harsh criticism from officials from competing nations who complain that their trading capabilities will be hard hit as a result of the new U.S. farm bill.