The American Soybean Association (ASA) is urging Congressional leaders to work constructively to develop an improved emergency agricultural relief package that will provide adequate economic assistance to meet the needs of producers and rural communities during the current period of severe distress. ASA Chairman Mark Berg, a soybean producer from Tripp, South Dakota, said, "We are concerned that competing versions of the economic relief proposals could jeopardize the type of bipartisan effort necessary to provide meaningful producer assistance. For many producers, the market loss payments in the appropriations bill are inadequate to address income losses associated with a combination of poor commodity prices and reduced export sales opportunities."

"To minimize the potential for additional emergency action in the future, Congress must fulfill the promise of legislation to promote free and fair trade, tax and regulatory reform, and improved risk management programs for U.S. producers that Congress pledged during the 1996 Farm Bill process," said Berg. "Failure to accomplish these goals in a timely manner has reduced the ability of producers to adjust and absorb the economic shocks we now face. In addition, sanctions reform that exempts food and food product exports from foreign policy actions, funding of the International Monetary Fund and approval of Fast Track trade negotiating authority are still critical agenda items that must be addressed in the near term," Berg added.

"The Asian and other regional economic difficulties combined with record, or near record crop production of many commodities, including a forecast 2.8 billion bushel soybean crop, have contributed to the current dilemma," Berg stated. "They are not, however, the only cause. Unfair trade policies of our competitors and unilateral economic sanctions have also take a significant toll on the economic viability of American farmers."

"The Administration also has the responsibility to fully utilize existing authorities and funding to aggressively challenge unfair trade practices, develop long term commercial markets, and expeditiously purchase and transport U.S. agricultural products within the supplemental humanitarian assistance programs announced last summer," Berg added.

ASA is urging Congress to forge a viable economic relief program that includes tax reforms that provide both short and long-term assistance to U.S. farmers. Clarification of the tax status of the 1999 agricultural market transition payments, full deductibility of health insurance premiums, permanent income averaging, 5-year net operating loss carryback, an increased business expensing limit, and creation of tax exempt Farm And Ranch Risk Management (FARRM) accounts should all be included in the package.

"In the final days of this Congressional session, we are urging both parties and both Houses of Congress to work together to improve the emergency economic relief package," Berg said. "Failure to reach an acceptable agreement to address the financial crisis in U.S. agriculture prior to adjournment is an unacceptable outcome that fails to serve the interests of either party and puts our nation’s farmers and their rural communities at great risk."