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News from the Minnesota Association of Wheat |
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SANCTION REFORM TAKES A STEP FORWARD BY WAY OF THE HOUSE LEADERSHIP TAKING A STEP BACK The letter states that the organizations "urge opposition to any rule for the consideration of the FY2001
Agricultural Appropriations bill that does not provide fair and equitable consideration of sanctions reform." The Appropriations bill was expected to come to the House floor Thursday with a vote possibly in the
afternoon. Congressmen George Nethercutt (R-Washington) however, in support of American farmers and ranchers, stood against the leadership and led a vigorous opposition to any rule on the floor that would strip the
sanctions reform provision. Nethercutt was joined by a coalition of farm state legislators and those who feel the Cuban embargo is a tool that has outlived its usefulness. Fearing the potential embarrassment of losing
the vote on the rule, the House leadership withdrew the rule and sent it back to the Rules Committee. This essentially saved the fight for another day, but buoyed sanctions reform supporters and kept momentum moving in
their direction. Ironically enough Majority Whip Tom Delay (R-Texas), an staunch defender of the embargo, derailed against procedural maneuvering by opponents of the China PNTR bill, but continue to use them to their
fullest extent in his personnel fight against Cuba. Congressmen will be in their home states and districts over the Memorial Day break, please use this opportunity to keep them aware of your support for sanctions
reform.
HOUSE APPROVES PNTR FOR CHINA - 237 TO 197 The House of Representatives Wednesday voted to
approve Permanent Normal Trade Relations (PNTR) for China by a resounding vote of 237-197. The final tally included 164 Republicans and 73 Democrats to provide the comfortable margin of victory. After hours of
impassioned debate on both sides, opponents David Bonior (D-Ohio) and Nancy Pelosi (D-California) drafted a motion to recommit that would have sent the bill back to committee. The motion, an attempt to essentially
defeat the bill procedurally, was easily defeated and the vote on H.R. 4444 began in earnest. The vote count reached the necessary 218 with over nine minutes still remaining in the time period allotted for the vote.
Speaker of the House Dennis Hastert (R-Illinois) and Ways and Means ranking member Charles Rangel (D-New York) closed out the debate with impassioned pleas to vote for this legislation and engage China in order to give
our farmers and workers access to this vast market and further the causes of human rights and democracy. This victory came one week after the U.S. wheat industry participated in an agricultural fly-in to press
legislators to support PNTR for China. Wheat growers visited every House member's office to highlight the benefits of the agreement for American farmers and ranchers. Several participants in the fly-in reported numerous
constructive conversations with House members and agriculture legislative assistants about the benefits of PNTR to the U.S. economy. Several key events over the last month attributed to the solid victory, including
the intense lobby effort by the U.S. agricultural industry. Of thirty-eight districts identified as large wheat districts 30 voted in favor of PNTR. Thirty-four members of the House Committee on Agriculture also voted
in favor of the measure while 17 voted against. Those on the Agriculture Committee voting to grant PNTR to China included: Barrett (R-Nebraska), Berry (D-Arkansas), Bishop (D-Georgia), Boehner (R-Ohio), Boswell
(D-Iowa), Calvert (R-California), Canady (R-Florida), Chambliss (R-Georgia), Combest (R-Texas), Cooksey (R-Louisiana), Dooley (D-California), Etheridge (D-North Carolina), Everett (R-Alabama), Ewing (R-Illinois),
Fletcher (R-Kentucky), Goodlatte (R-Virginia), Gutnecht (R-Minnesota), Hill (D-Indiana), Jenkins (R-Tennessee), John (D-Louisiana), LaHood (R-Illinois), Lucas (D-Kentucky), Lucas (R-Oklahoma), Minge (D-Minnesota), Moran
(R-Kansas), Ose (R-California), Pomeroy (D-North Dakota), Schaffer (R-Colorado), Simpson (R-Idaho), Smith (R-Michigan), Stenholm (D-Texas), Thompson (D-California), Thune (R-South Dakota), and Walden (R-Oregon).
Those on the Committee voting against PNTR for China included: Baca (D-California), Baldacci (D-Maine), Chenowith-Hage (R-Idaho), Clayton (D-North Carolina), Condit (D-California), Goode (I-Virginia), Hayes (R-North
Carolina), Hilliard (D-Alabama), Holden (D-Pennsylvania), Hostettler (R-Indiana), McIntyre (D-North Carolina), Peterson (D-Minnesota), Phelps (D-Illinois), Pombo (R-California), Riley (R-Alabama), Stabenow (D-Michigan),
and Thompson (D-Mississippi). The bill will now move to the Senate where proponents are confident it will pass easily despite the potential for continued rancorous debate. There have been rumblings in the Senate over
the addition of the Levin-Bereuter language in the House passed version of the bill. The Senate would prefer a "clean" bill, but this would force a conference committee and another vote in the House on the
final version. There are also several Senators, including Jesse Helms (R-North Carolina), and Paul Wellstone (D-Minnesota) who have pledged to actively campaign against PNTR for China in the Senate. The wheat industry
supports the Senate taking up the bill, with the language passed in the House, as soon as possible after the Memorial Day recess.
DROUGHT CONTINUES IN CHINA
THE HOUSE APPROVES $20 MILLION INCREASE
FOR MAP The assistance payment for wheat in this package is the same as last year - 63.7 cents per contract bushel.
CROP INSURANCE/ASSISTANCE PACKAGE UPDATE The bill would make significant changes to the current federal multiperil crop insurance program as well as other government risk management programs. Most
important to NAWG is the dramatic increase in government subsidies of insurance premiums. Under the new plan, the government would pay a much larger share of the cost of insuring crops. The amounts are indicated in the
following table.
Level of Current New Government
Under the new plan, farmers would be given more options when it comes to double insurance and prevented planting. The double insurance provision allows producers which have lost their first crop to choose
between 1) collecting the full insurable loss and not plant a second crop; 2) collect the full insurable loss and plant an uninsured second crop; or 3) collect 35 percent of the insurable loss and plant an insured
second crop. The prevented planting provision allows producers who have been prevented from planting their first crop to choose between 1) collecting the entire pp payment and not plant a second crop; or 2) collect 35
percent of the pp payment and plant an insurable second crop. Specific to wheat producers, the bill would settle the current lawsuit over durum CRC coverage ($40 million) and provide expanded coverage for continuously
cropped wheat. NAWG is particularly pleased that the assistance portion of the bill includes an "AMTA-style" market loss payment equal to the 1999 payment ($.637 cents per contract bushel for wheat), a
payment equivalent to an LDP on grazed-out wheat acres (for the coming crop year) and an additional $20 million for the Market Access Promotion (MAP) program. Other measures also incorporated into the conference
report include the "Plant Protection Act," a measure introduced by Senator Larry Craig (R-Idaho) to combat the spread of noxious weeds, and legislation to expand research in biomass energy. Following passage
of the bill, NAWG President Terry Detrick stated, "We couldn't be more pleased with the work of the conference committee. NAWG extends its sincere appreciation to Senators Lugar, Harkin, Roberts, Kerrey, Conrad and
their colleagues and Congressmen Combest, Stenholm and their colleagues for their hard work." Detrick continued, "Chairmen Lugar and Combest should be proud of this bill and how they conducted the conference.
This has truly been a bipartisan effort from the very start and these two great leaders have worked diligently to address our concerns in a manner that has built consensus." Additionally, Detrick sent
personalized letters expressing NAWG's thanks to many of the conference participants.
U.S. GOVERNMENT LOAN APPROVED
FOR UZBEKISTAN TO BUY DURUM As
chairman of the North Dakota Wheat Commission and a durum farmer from Berthold, Alan Lee is grateful to have a new U.S. durum customer and a sale equal to roughly 5 percent of projected annual durum exports.
Uzbekistan will be using a $10 million low-interest, long-term loan under the U.S. Public Law 480, or Food for Peace, program to purchase the durum. The U.S. Department of Agriculture originally allocated the PL-480
loan to the former Soviet republic for the purchase of soybeans, but the Uzbekistan Ministry of Agriculture indicated to a representative of the export market development organization U.S. Wheat Associates a desire to
buy durum wheat instead. Uzebekistan has "a relatively large pasta industry, and fairly substantial domestic consumption, but no access to durum, which they would like to use to blend with other local or imported
wheats," says Vince Peterson, who serves as regional vice president for USW covering Europe and the former Soviet Union. It is better for USDA to "provide a commodity that (Uzbekistan) needs, and one which we
might have a chance to sell commercially at some point, than to provide something they don't really need," he adds. It didn't take much prompting from USW for Alan Lee to write a letter to USDA pointing out that
supplies of U.S. durum are more than adequate this year for a durum allocation for Uzbekistan. The Wheat Commission worked closely with Senator Byron Dorgan (D-ND) to gain approval from USDA to complete the sale. "Any
new market helps reduce carryover stocks and should be positive for prices," Lee says. Ellen Huber |
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