July 25, 1975
Page 25003
Mr. MUSKIE. I thank the Senator.
Mr. President, my objective in speaking on the agriculture and related agencies appropriation bill for 1976, H.R. 8561, is to reflect on the national priorities in this bill and to give some general sense of the impact on the over-all budget targets set in the first concurrent resolution on the budget, House Congressional Resolution 218, last May 14.
I wish to commend Senator McGEE, Chairman of the Agriculture Appropriations Subcommittee, and Senator BELLMON, ranking member of the Senate Budget Committee, for their recognition of the limitations imposed by the budget resolution.
The agriculture and related agencies appropriation bill, H.R. 8561, appears to be consistent with the aggregate levels of spending anticipated in the budget resolution and, to the degree that one can make precise calculations where entitlement programs such as food stamps and price supports are involved, within the general guidelines of the seven functional categories which fall under this bill.
The agriculture function, in which commodity supports are included, requires continuing attention because of the uncertainty of price levels may require outlays exceeding the target figures.
I would point out that this conclusion takes into account the projections of the Congressional Budget Office regarding the annualized cost of the food stamp and other nutrition programs. This bill recognizes that the President has not yet formally readjusted his estimates through a budget amendment and therefore has only recommended budget authority consistent with his earlier request, although reports of both the Senate and House committees and the mid-term review by OMB recognize that additional funds will be required through a supplemental to acknowledge these necessary claims.
While this bill appears to be consistent with the budget resolution, flexibility is declining — the difficulty of future choices and trade-offs becomes more acute as we move through the appropriations process. We must apply a clear standard of "compelling requirement" for every amendment offered today to this bill as well as to any supplementals which might be required later in the fiscal year.
The current recession has significant impacts on this critical sector of the economy. All Americans — be they farmers or consumers — are touched by this bill. Agriculture is a bellwether — good times for farmers indicate generally good times for us all. When depression strikes the farm, havoc results not only to the farmer but to us all.
H.R. 8561 makes important contributions to relieving these difficulties and supporting significant agricultural activity.
Title I of the bill deals, among other things, with funds for the extension service — a particularly valuable program in my own State of Maine, the Federal-State marketing improvement program, designed to bridge the gap between research and its practical use by producers and marketing agencies, and the Agricultural Stabilization and Conservation Service, designed to protect and improve the farmer's income against the vagaries of depression, to keep agricultural production in line with our anticipated requirements and needs, and finally to put a greater reliance on the marketplace as the principal source of farm income.
Title II of this act relates to rural development and assistance and is critical if we are to continue to support necessary loans for rural housing, rural industrialization and other important business and industrial development grants in the rural development area. Moreover, it supports the essential programs of the Farmers Home Administration.
Title III of H.R. 8561 provides critical help for people throughout the United States significantly affected by the worst economic conditions since the 1930's. It provides for a special milk program, school lunch programs, the food stamp program and a special supplemental food program designed to provide cash grants to make supplemental food available to pregnant women, nursing mothers and children up to four years of age.
Title IV of the bill primarily deals with the Public Law 480 — food for peace program. The funds requested here reflect reductions made because of the changing conditions in Southeast Asia.
It is critical to point out to all that while some harbingers of doom cry the end of the importance of agriculture and the small farm in America, in my State of Maine our agriculture is alive and growing, but struggling under the burden of recession.
Let me share a few facts with you. The decline of the farms halted in 1974 and 1975.
The size of farms has increased from an average of 203 acres to 225 acres from1965 to 1974.
The value of farm real estate has increased 71 percent since 1970.
But all is not positive.
In 1973, sales were $407 million, in 1974 sales were $466 million. The impactof our current economic difficulties is likely to cause farm income to drop in 1975 to below 1973 levels. The income of Maine dairy farmers fell 10 percent in real terms last year. Potato farmers suffered a serious decline.
The erratic nature of the market in Maine and throughout the country — a market buffetted by wind, weather, and the economy — cannot well stand the strain.
Many provisions of this agriculture appropriations bill can serve to moderate the difficulties and the strain.
I wish to commend again the work of Senator McGEE and the distinguished Senator from Oklahoma, Senator BELLMON.
I intend to vote for it in the hope that it will assist farmers and Americans affected by rising food costs in dealing with the continuing pain of our depression.
In general, I will say that this bill falls within the general guidelines of the first concurrent resolution, and I would like to vote for it. I would like to flag two points, however, so that Senators may be aware. First of all, the bill avoids appropriating the full funds required for the food stamps and, instead, provides 7/12ths of the needed funds. A supplemental appropriation will be needed, therefore. This is recognized in the report of the committee, but I thought it ought to be brought to the attention of the Senate.
The staff of the Budget Committee has annualized the food stamp needs and, given all of the exigencies and unknowns, the number appears to be within the resolution on that item.
The second point that I would like to make is the agricultural function, which is one of seven functions represented in the bill and could conceivably be over the target, depending upon prices in the marketplace. New estimates probably will be required before the end of the year. The determining factor is the level of price support required. If prices should fall, then the costs would rise and we could be faced with a figure that rises above the budget resolution.
The best available information at this time is that because of present price trends, this function will, in the final analysis, approach the target figure.
I thought those two points ought to be made in connection with the budget resolution. I commend my good friend fromWyoming, the chairman of the subcommittee and the ranking Republican (Mr. BELLMON) , who is also ranking on the Budget Committee, for their assistance.
Mr. McGEE. The members of the committee appreciate the Senator's comments inasmuch as his new role as chairman of the Budget Committee makes it possible to make an assessment in terms of fiscal responsibility.
We are very agreeable to the assessment that he has made and appreciate the generosity of his remarks.
I just want to say that my ranking minority member has been of indispensable help and leadership in this whole enterprise, to try to get this within the strictures of budget mandates and the sense of responsibility at this time.
I thank the Senator from North Dakota, likewise. Without them it would have been impossible to arrive at this point in the negotiations.
The chairman of the full committee is our toughest task driver of all. It is he who said "If you do not stay under the tent, you may have to get out entirely."
So as a self-motivating device we have met the requirements of our most respected full committee chairman, the distinguished Senator from Arkansas, and hope that this bill meets those requirements.