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National Farmers Union News Release / For Immediate Release: October 1, 1999 / Contact: Erika Hovland Batcheller (202) 314-3104

Short-term relief beneficial, long-term changes still needed

WASHINGTON -- The farm relief package moving through Congress will help producers over the short term but will not meet disaster or long-term needs in agriculture, the National Farmers Union (NFU) said today.

The $8.7 billion package includes about $5.5 billion in direct payments to offset low prices and $1.2 billion in disaster assistance, in addition to other relief. The House passed the bill by a vote of 240 to 175 and the Senate will take it up next week.

"We are disappointed an effort to send the package back to the committee for improvements failed," said NFU President Leland Swenson. "The economic assistance will be a temporary lifeline to many farmers and ranchers who are struggling to stay above water. But the level of disaster relief will not provide enough help to producers who lost crops and livestock from severe weather."

"This package was a missed opportunity. This is the second year in a row Congress has used a shortsighted quick-fix to address the farm crisis, and it's clearly not working. The long-term solution is to make structural changes to Freedom to Farm," Swenson stated.

NFU is pleased congressional negotiators added mandatory price reporting for livestock sales to the emergency package. The organization for several years has led the effort to get such legislation passed. "It will help improve price transparency and make the market more fair, open and competitive," Swenson said.

NFU is disappointed the delivery mechanism for economic assistance does not target relief to farmers who actually suffered losses this year.

"We will now work to address the shortcomings of the package through an emergency supplemental bill," said Swenson.

The measure also includes $475 million for oilseed producers, $200 million for livestock producers, $125 million for dairy farmers, funding for the cotton Step 2 program and relief for tobacco, peanut and sugar growers. It also doubles the payment limitation for Loan Deficiency Payments to $150,000 and extends the dairy support price for another year.: