Encourages the Senate and the President to Support the Package

The American Soybean Association (ASA) has endorsed the $8.7 billion farm assistance package worked out by Senate and House negotiators and approved by the House today. ASA is urging members of the Senate and President Bill Clinton to also approve the package. ASA considers the package an important step toward supporting producer income during a period when commodity prices have fallen to their lowest levels since the early 1970s.

"The combination of low prices and natural disasters in many parts of the country has dealt a devastating blow to soybean farmers," said ASA President Marc Curtis of Leland, Miss. "Thousands of farmers are struggling financially and need assistance to help them stay in business. This farm aid package provides a good combination of safety net features for U.S. soybean producers."

The package passed today by the House of Representatives is a compromise developed by a Joint Senate-House conference committee. The package includes $5.54 billion in market loss payments, which will increase a producer’s 1999 Agricultural Marketing Transition Act (AMTA) payments by 100 percent. The bill provides advanced payments in full each October 1, and protections for tenants and sharecroppers. The package also includes $1.2 billion for disaster assistance due to weather-related losses and $400 million for crop insurance discounts with rates held at 1999 levels.

Soybean producers will be able to participate in an oilseed-specific allocation of $475 million to support oilseed producer incomes. ASA estimates that this payment will be worth approximately 15 cents per bushels of soybeans.

The bill also will double the payment limit from $75,000 to $150,000 on loan deficiency payments and marketing loan gains available to producers when market prices are below federal minimums. The limit is a maximum amount for all eligible crops a farmer produces.

"ASA is asking the Senate and the President to move quickly in support of this House-Senate compromise bill," Curtis said.