The bill ? the Emergency Farm Financial Relief Act ? was introduced last week by Coverdell to help ease the burden on farmers faced with low crop prices and crop loss. Senate Majority Leader Trent Lott has indicated that the bill will be presented this week for unanimous approval by senators.
"Georgia's farmers are facing the worst crop disaster in many years. This AMTA assistance will put funds directly into their hands, helping them cope with low crop prices and drought-induced crop loss. With weather-related farm damages already estimated at over $450 million, I hope my colleagues in the Senate will approve this bill quickly so we can help farmers across the Nation recover from this year's devastating weather," Coverdell said.
Grassley said that if this bill is approved, the total payment that would be received this year by Iowa corn farmers would be approximately $ .71 per bushel. Since 1996, Iowa farmers have received $1.2 billion in farm payments from the federal government, the most in the nation. Grassley also said the initiative is "budget neutral" because Congress already has planned to provide the funds as part of the freedom to farm bill passed in 1996.
"The Coverdell initiative is a way to respond to the very serious concern that farmers have with low commodity prices without sacrificing the benefits of the farm bill, including the flexibility they have to plant whatever they want and the certainty of the federal government's commitment through the transition payments," Grassley said.
"This shows the dedication of Republicans to ensuring that producers get help and get help now," Roberts said.
In addition, farm state senators today announced plans to introduce the Family Investment and Rural Savings Tax Act of 1998 (FIRST). This bill will include the bi-partisan Farm and Ranch Risk Management Act (FARRM) introduced by Grassley in May. The FARRM accounts bill would let eligible farmers make contributions to tax-deferred savings accounts to help farmers prepare for fluctuations in the farm economy.
The FIRST bill also will include the Lott-Gingrich Economic Growth Act of 1998. This item would reduce the top individual capital gains tax rate from 20 percent to 15 percent., and it would reduce the capital gains tax rate for individuals with lower incomes from 10 percent to 7.5 percent.
Finally, FIRST will permanently restore income averaging for farmers. It would let farmers average their income over three years. Grassley said income averaging is especially important right now when farmers income is down because it also reduces their tax burden.
Coverdell, Grassley and Roberts are members of the Senate Agriculture Committee.