May 23, 1977
Page 16075
Mr. MUSKIE. I thank the distinguished majority leader.
Mr. President, the farm bill (S. 275) which we began considering earlier today and will consider again tomorrow makes major changes in the farm income support programs which greatly increase the budget for fiscal year 1978, as well as future years. President Carter has stated explicitly that he will veto the bill as reported if it passes the Senate in its present form, and there was placed in the RECORD earlier this afternoon by the distinguished floor manager a letter which Senators have received from the Secretary of Agriculture, Mr. Bergland, detailing the administration's problems with the bill.
As chairman of the Budget Committee, I am deeply concerned that the provisions to which the President objects also exceed costs requested by the Agriculture Committee in its March 15 report which outlined its legislative agenda upon which the budget resolution Congress approved 10 days ago was based. As a result, the cost of this bill was not contemplated in the first concurrent resolution and full funding of this bill, as reported, would breach the resolution targets by almost $1 billion. Since much of the cost in this bill involves entitlement programs, there will not be a subsequent opportunity to reduce these costs through an appropriations bill.
The largest single element of this overage results from an increase — to $2.90 per bushel from $2.47 in existing law — in the target price for wheat for the 1977 crop year. This provision increases entitlements for the 1977 wheat crop with respect to payments to farmers to make up the difference between the season average price and the target price. While the first concurrent resolution estimated some increase in commodity price support outlays based on best estimates of weather, planting decisions, and world market conditions, the $2.90 figure is excessive, and I will introduce an amendment to reduce that amount to $2.65. The result would be a savings of approximately $0.5 billion which would still allow an increase of $0.18 per bushel over existing law. I understand that President Carter would not veto the measure on this account if the 1977 wheat crop price I support is reduced to this level.
I am also concerned about the international grain reserve, another item in this bill which may have fiscal 1978 implications depending on the manner in which the program is implemented. To avoid this potential source of additional cost, I understand that Senator BELLMON this afternoon offered an amendment to eliminate this item as a fiscal 1978 cost problem, and there will be a rollcall vote on that amendment sometime tomorrow. I will certainly support his effort to bring the farm bill into line with the first concurrent resolution.
Now is not the time to commit the Federal Government to additional spending not contemplated in either the congressional budget or the President's. The budget contains a generous allowance for agricultural programs. The Senate adopted an outlay target of $3.7 billion for agriculture. The conference raised that target toward the House level, to $4.35 billion. Both Houses have now adopted that figure. The deficit for fiscal 1978 is already $64.6 billion. We simply cannot afford to push this figure any higher. We must not abdicate our responsibility to take a fiscally responsible course in our domestic programs.
I urge my fellow Senators to support the first concurrent budget resolution by supporting the amendments I have described in my comments this afternoon.
With that I yield the floor. I thank my good friend, Mr. RANDOLPH, for his courtesy in giving me this time.