December 20, 1979
Page 37371
Mr. MUSKIE. Mr. President, the Senate now is considering H.R. 3398, the Agricultural Adjustment Act of 1979. This bill would increase the 1980 farm program target prices for wheat and feed grains by about 7 percent above the 1978 and 1979 levels.
On several occasions in the past I have vigorously opposed extravagant increases in farm price supports on budgetary grounds. However, a number of factors have led me to support the farm bill now before the Senate.
First, although the wheat target price in H.R. 3398 might be slightly higher than warranted, the Agriculture Committee showed great fiscal restraint during its markup by voting down target price increases two and three times greater than those in the reported bill. I would like to commend Senator TALMADGE and the Agriculture Committee for their efforts at budgetary restraint.
Second, there is a clear need for this bill. Without new legislation, target prices could drop as much as 10 percent next year due to an adjustment formula adopted in the 1977 farm bill. In retrospect, this formula has proven unsatisfactory in times of rapidly increasing inflation. The low target prices projected under existing law would not provide adequate income protection for America's farm population in the coming year.
Farm target prices are not designed to guarantee every farmer a profit. Instead these prices provide a safety net to protect farmers from catastrophic losses in times of low farm prices. However, farmers are not immune from the ravages of inflation that are inflicted on every American. Production costs, especially fertilizer and energy costs, have escalated. Thus, a reasonable adjustment in farm price supports is necessary to prevent disastrous consequences should commodity prices be reduced significantly. I urge the approval of this bill.