Calls on House to Ratify Disaster Relief

The American Soybean Association (ASA) has endorsed the $7.4 billion farm assistance package approved by the Senate on August 4 and is urging Members of the House of Representatives to ratify disaster relief for 1999 crops. ASA considers the Senate package an important step toward supporting soybean producer income during a period when soybean prices have fallen to their lowest levels since the early 1970s.

"The combination of low prices and drought in many parts of the country has dealt a devastating blow to soybean farmers," said new ASA President Marc Curtis of Leland, Miss. "While other sectors of the U.S. economy are thriving, thousands of farmers are struggling financially. The Senate action to support production agriculture will benefit rural communities and the entire United States."

The Senate farm relief plan provides $5.54 billion to increase 1999 Agricultural Marketing Transition Act (AMTA) payments by 100 percent. It also includes $475 million for oilseed producers that would be based on actual 1999 oilseed production. Based on crop production forecasts, the provision should provide soybean producers with approximately 15 additional cents per bushel. ASA had previously raised concerns that AMTA payments do not reflect soybean prices and income, since they are based on former program crop acres and yield.

Members of Congress have stated they intend to consider disaster relief for crop yield reductions late this Fall when losses are known. Meanwhile, Senator Thad Cochran (R-MS) added $400 million to reduce crop insurance premiums as part of the aid package that was attached to the $68 billion agriculture appropriations bill.

Senators John Ashcroft (R-MO) and Chuck Hagel (R-NE) also succeeded in including provisions to exempt agriculture and medicine from economic sanctions unless the sanctions are proposed by the President and approved by both the Senate and House. ASA is working with senators to clarify the impact of an amendment that would require special licenses to sell to the governments of countries classified as terrorist states. Sanctions relief has been a priority issue for the ASA for the past three years to regain access to markets and increase demand for U.S. soybeans and soy products.