Grassley's proposal would provide an additional $5 billion for farmers before the end of the government's current fiscal year on September 30. Grassley's amendment would provide another $7.35 billion for farmers in fiscal year 2002, which could be directed to farmers as early as October 1. These funds will be used to supplement existing farm programs.
Senators voted 51 to 49 for Grassley's amendment, which was the only bipartisan ag spending measure offered.
"This is a big win for farmers. I farm alongside my son, and I know first-hand how tough it is to be in agriculture right now," Grassley said. "Washington needs to help farmers survive while working aggressively for tax relief, better risk management options, and new trade opportunities."
Congress is expected to debate a new farm bill next year. Grassley said the budget authority included in his amendment for fiscal years 2003-2011 would help pay for a counter-cyclical program, regulatory relief, and enhanced conservation efforts. Altogether, Grassley's amendment adds $63.5 billion over a ten-year period to agriculture's mandatory commodity credit corporation price supports, related programs and conservation. In 2003, the amendment provides $7.35 billion; in 2004, $7.35 billion; in 2005, $7.35 billion; in 2006, $6.35 billion; in 2007, $6.35 billion; in 2008, $5.35 billion; in 2009, $4.35 billion in 2010, $3.35 billion; in 2011, $3.35 billion.
Grassley said his amendment works hand-in-hand with the $1.6 trillion tax relief package that he hopes to pass through the Senate Finance Committee. "The tax cut package helps farmers in several ways. Through marginal rate cuts, estate tax cuts and tax-deferred farmer savings accounts we can help the family farmer get through the tough times," Grassley said.
Grassley offered his amendment to the budget under consideration by the Senate. The budget resolution is not binding, but it sets parameters for tax and spending legislation. An authorizing committee must act for the additional funds to be put in the pipeline to farmers.