The conference report before us today represents new opportunity for family farmers through a reformed crop insurance program and short-term assistance in the form of an additional economic relief payment equivalent to the levels established last year.
It provides Congress with an opportunity to assist farmers during this time of need. My friends and neighbors just came off a year in which they lost tremendous amounts of equity due to commodity prices hitting twenty year lows. If we would not have provided an economic relief payment last year we would have lost many more family farmers.
What does a strong agricultural economy mean for my home state of Iowa? The agricultural industry contributes a total of around $70 billion and 446,000 jobs in Iowa. Therefore, when things are in bad shape down on the farm, all Iowans feel the negative economic effects.
While commodity prices have improved slightly from last year, margins are still tight. We promised our constituents a smooth transition from the failed, government-dominated farm policies of the last 63 year period prior to 1996. We must follow through on that promise, and this legislation helps us fulfill that goal.
This bill provides tremendous opportunities for farmers. The Crop Insurance title helps farmers utilize additional risk management activities. Farmers can increase their individual coverage levels thanks to better premium subsidies. And for the first time, pilot programs will be available to determine how livestock producers can be included as an insurable commodity.
I also want to thank the members of the Senate Budget Committee in supporting my efforts earlier this year in crafting a budget resolution which set aside over $15 billion to help farmers. The bill before us today would not have been possible otherwise. The Budget Committee's work and cooperation allowed the Agriculture Committee to supply farmers with the funds necessary for the smooth transition farmers deserve by providing what is viewed as an additional AMTA payment at 1999 levels.
The package also includes $500 million for oilseeds, $7 million to cover pseudorabies vaccination costs incurred by pork producers, and $15 million for what I have termed the Agricultural Marketing Equity Capital Fund.
The Agriculture Marketing Equity Capital Fund will provide $10 million to establish grants for developing new value-added agricultural markets for independent producers. This fund will assist agricultural producers by providing grants for ventures to capture a greater share of the consumer food dollar.
It is my hope that the fund will help independent grain and livestock producers find real solutions to address the loss of competition in agricultural markets, to combat concentration in food production and processing, and create new value-added business opportunities for groups like:
An informal pole by my office found hundreds of millions of dollars in possible requests for this type of program. The reason for this is that family farmers cannot compete with an industry that has billions of dollars in equity and capital resources and which seems to be willing to use this advantage to kill any producer driven competition.
Industry's aggressive stance toward competition from farmers made it impossible for me to provide more money for independent producers. In fact, the American Meat Institute, which is the political muscle behind 70 percent of the packers and processors in the US, fought against this provision tooth and nail.
When I found out that AMI was opposing my efforts to help farmers I knew that I must be doing something right. I just want the leadership of AMI to know that I was very aware of their efforts, and I hope that AMI's successful opposition to my request for $35 million to help America's family farmers was worth it to them.
I plan to publish AMI's membership in the record and I hope that every independent producer in the nation takes a good look at who is trying to limit value-added opportunities for family farmers. I'm not saying that every processor or packer knew exactly what AMI's Washington lobbyists were doing, but I sure hope to inform every member, through one medium or another, what happened and why independent producers won't have the funds to reach out to processors in joint ventures and receive working capital to help everyone survive and thrive.
One last point, if you thought I was pushing hard for my agri-industry concentration legislation before, hold on to your seat.
Regardless of my disappointment in industry's efforts to kill my provision, on the whole, this bill includes a bold new approach that will help create a brighter future for family independent farmers and their rural communities.
Mr. President, in summation I want to thank my colleagues on the Ag. Committee who worked hard to develop this package. This bill is good for Iowa and good for agriculture and the family farmer nationwide. I look forward to sending it to the President and for the President to sign it quickly so that we may provide family farmers with the tools they need to be successful in today's marketplace.