American Soybean Association (ASA) First Vice-President Mike Yost and representatives of 11 other farmer organizations met with Republican Senators to discuss how to boost agricultural exports and support farm income. The organizations had sent an ASA-initiated letter to Senate Majority Leader Trent Lott (R-MS) on May 12 identifying specific actions to stabilize the farm economy.

"The United States must keep its place at the international trading table if agriculture is to maintain its position as our nation’s leading export," Yost said. "Congressional approval of IMF funding, Fast Track negotiating authority and renewal of Most Favored Nation Status for China are essential to our competitiveness abroad and stability in the farm economy at home. Congress must move quickly to prevent the ripples of the economic crisis in Korea and Indonesia from growing into shock waves in large markets, such as Japan and China."

Senators attending the meeting included Senators Richard Lugar (R-IN), Conrad Burns (R-MT), Pat Roberts (R-KS), Larry Craig (R-ID), Thad Cochran (R-MS), Charles Hagel (R-NE), Rod Grams (R-MN), Craig Thomas (R-WY), Charles Grassley (R-IA), Wayne Allard (R-CO), Mitch McConnell (R-KY) and Dirk Kempthorne (R-ID). Senate Majority Leader Trent Lott (R-MS) also participated. The Senate Republicans said they intend to promote trade-oriented policy and tax reforms that will benefit agriculture. The agricultural representatives indicated they would focus their requests on specific legislation and administrative actions that can be supported on a bipartisan basis. ASA and the other groups also intend to promote an agriculture-friendly tax bill including full deductibility of health care costs, estate tax relief, and the Farm and Ranch Risk Management (FARRM) legislation that is currently pending in the House and Senate.

The Senators told Yost and other agricultural group leaders that they would work to achieve these trade-oriented policy and tax reforms before Congress adjourns in October. The agricultural representatives indicated that they would broaden their coalition to ensure the strongest possible grassroots support for meaningful long-term and short-term improvements in the U.S. farm economy.

The original list of initiatives proposed in the May 12 letter included:

1. Fast Track negotiating authority must be actively sought by the Administration and approved by Congress;
2. Legislation to provide $18 billion to replenish the international Monetary Fund should be immediately passed by the Congress;
3. The Administration and Congress should modify U.S. sanctions policy to allow greater flexibility for food exports to restricted countries, including Iran and Cuba;
4. The Administration should commit to seek agreement to end unfair trade practices in the next round of multilateral trade negotiations;
5. Congress should appropriate $35 million for the Foreign Market Development Program to allow continued operation at the current level;
6. Congress should restore funding to allow the Market Access Program to operate at its current level of $90 million;
7. The Administration should immediately expand the Supplier Credit Guarantee Program under GSM-102 and -103, and increase the amount of risk covered under the program to 85 percent from the current level of 50 percent. The GSM-5 Direct Credit Sales Program should be reactivated;
8. Budget baselines equal to annual outlays permitted by the WTO should be provided for the Export Enhancement Program. EEP should be used to combat unfair trade practices, or unused funds should be shifted to other WTO-legal export programs.
9. Congress should immediately pass the Conference Report on the Research Title of the FAIR Act (S. 1150), providing $470 million for delivery of federal crop insurance and $600 million for national agricultural research objectives;
10. Income averaging for farmers and ranchers and full deductibility of health insurance premiums should be made permanent in the next tax bill;
11. Farm and Ranch Risk Management (FARRM) accounts should be authorized in the next tax bill.

The letter was signed by the American Soybean Association, American Farm Bureau Federation, National Association of Wheat Growers, National Barley Growers Association, National Cattlemen’s Beef Association, National Corn Growers Association, National Cotton Council of America, National Grain Sorghum Producers Association, National Grange, National Oilseed Processors Association, National Pork Producers Council and National Sunflower Association.