Grassley made his statement as the Speaker of the House visited the Iowa State Fair and received pro-fast-track petitions today from members of the Iowa Farm Bureau. Gingrich indicated earlier this summer that a vote on fast-track would be called in the House of Representatives on September 21st.
Grassley said he wants to help make that vote successful by "personally lobbying members of Congress to vote for fast-track. Prices that farmers receive from the market are a function of supply and demand. So it is urgent that we increase world demand for U.S. farm products by empowering the President of the United States to negotiate around the world on behalf of American agriculture," he said.
During the last year, Grassley has worked in a bi-partisan manner to revitalize the interest of the President and Congress in international trade. In particular, Grassley and Sen. Bob Kerrey of Nebraska have spoken out on the need for an aggressive strategy by the administration to advocate on behalf of American agriculture in trade negotiations around the world. Exports account for 30 of farm income in the United States, and as much as 40 percent in Iowa.
Fast-track authority allows the president to submit trade agreements to Congress for up-or- down votes within 90 days, with no amendments allowed. Grassley said without this kind of procedure, foreign governments are reluctant to negotiate with the United States because they fear individual members of Congress will attempt change the terms of agreements to satisfy their own political interests. The most recent extension of fast-track authority expired at the end of 1994.
Today, Grassley said the focus in Washington on the importance of the agricultural economy that has come along with the low commodity prices that farmers are experiencing also creates an opportunity. "Times of crisis and the sense of urgency can provide the necessary environment to make the fundamental reforms needed to ensure the long-term viability of an industry: in this case the family farm. Congress needs to act on behalf of farmers for both the short and the long-term," Grassley said.
Last month, Congress moved quickly to accelerate market transition payments for 1999 and make them available this year. The result for Iowa farmers could be up to $597 million in additional funds this year. Nationwide, the initiative makes available $5.6 billion to farmers this year. In addition, Grassley won a strong endorsement for his Senate resolution expressing support for his bill to establish tax-deferred savings accounts for farmers, provide additional tax relief, fund the International Monetary Fund, and reauthorize fast-track authority for the president.
Grassley said the Speaker of the House provided valuable leadership on the bill to accelerate farm payments. "Gingrich set the stage that helped me get that legislation through the Senate in the final hours before this month long recess, and he ensured swift action by the House.
"Speaker Gingrich showed rural America that same commitment earlier this year with his critical support to extend the ethanol program. We simply could not have gotten around the champions of Big Oil without Newt Gingrich's involvement," Grassley said.
In addition to conducting town meetings throughout Iowa this month, Grassley visited the Iowa State Fair two days this week. "There's a lot of discussion about Freedom to Farm. A lot of people want to blame the farm bill for the low prices we have. But the fact is, we'd be worse off without it. Farmers receiving payments since 1996 have been able to pay down significant debt with the money they've received and put themselves in a better position to weather the storm we're in right now," Grassley said.
Grassley is chairman of the Senate Subcommittee on International Trade.