Statements on Introduced Bills and Joint Resolutions

Floor Speech

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Mr. HOEVEN. Madam President, I rise to talk about legislation that we are introducing today. It is called the FARMER Act. ``FARMER'' stands for Federal Agriculture Risk Management Enhancement and Resilience, and that is just exactly what this farm bill does, what this legislation does. Really, we think this is an important step to getting to a farm bill--and hopefully this year--because it is all about enhancing crop insurance.

I am very pleased to be joined here on the floor by our ranking member on the Ag Committee, Senator Boozman, from Arkansas. He is cosponsoring the legislation, as are other members of our Ag Committee, including Senator Ernst of Iowa, Senator Fischer of Nebraska, Senator Grassley of Iowa, Senator Hyde-Smith of Mississippi, and Senator Marshall of Kansas--all Senators who have significant ag production in their State, both in terms of crops and livestock.

And this is all about what we have right here: ``Keeping the farm in the farm bill.'' As a matter of fact, it is about putting more farm in the farm bill, and that is going to have to happen in order to get a farm bill accomplished this year.

Well, how do we do that? What does that mean? That means strengthening crop insurance, our farmer's No. 1 risk management tool, and also updating ARC and PLC, which is the countercyclical safety net. ARC--Ag Risk Coverage--and PLC--Price Loss Coverage, that is the countercyclical safety net that our farmers rely on; so crop insurance, the No. 1 risk management tool for farmers nationwide, combined with a countercyclical safety net, updating ARC and PLC to make it relevant given the incredible increase we have seen in input costs that our producers face.

When you look at fertilizer and all the inputs--fuel, everything else--all the inputs that our farmers and our ranchers are required to purchase now to raise that crop or for ranchers to raise those animals, those costs have gone up dramatically. And commodity prices for our food products have come down, which really puts pressure on our farmers and ranchers. That is why it is so important--so important--that we update crop insurance and the countercyclical safety net to make it relevant--to make it relevant--in terms of risk management for producers across this great Nation.

We have a huge ag industry, very diverse, across all of our States, and so this really is fundamental--fundamental--to getting a farm bill done and done right and hopefully done this year.

So this bill, as I say, focuses on the crop insurance piece. And so what does it do? Well, it does two things: One, it strengthens crop insurance by increasing the premium support and making it more affordable to purchase crop insurance and, two, it enables our farmers to insure to a higher level.

There are two ways that they do that. One is at the enterprise level. So at the farm level, they buy crop insurance. This makes it more affordable to buy up to a higher level of coverage--say, 80 or 85 percent coverage on a more affordable basis--and then they can get a second-tier policy that helps them. It is called Supplemental Coverage Option. That is actually based on a countywide average.

So they can buy that supplemental coverage to insure up to a higher level, up to 90 percent, on a realistically affordable basis.

Now, the other thing it does is it calls on the Secretary of USDA-- the Secretary of Agriculture--to look at the supplemental coverage. For States that have big counties like my home State of North Dakota or Senator Boozman's State of Arkansas or Texas and others, it requires that RMA--Risk Management Agency that provides crop insurance--looks at how these policies are done to make it work better for States that have large counties, which many of our States do.

So those are the kind of enhancements to crop insurance that really serve our farmers, and it is not just our farmers. We are also doing more for our ranchers and our livestock producers, but really it is much more than that. This legislation helps our farmers; it helps our taxpayers; and it helps all Americans.

And let me touch on that for just a minute. First, in terms of our farmers, obviously, they face tremendous challenges due to weather-- they have no control over the weather--and prices.

You know, we have this network of family farms and ranches across this country. They are price-takers. They don't get a chance to set any prices. So crop insurance, that is why it is their No. 1 risk management tool because when they don't have a crop or they have a very substandard crop, this crop insurance enables them to stay in the game so that family farms can continue to be around for the next year, so that ranchers can continue to be around for the next year.

It is vitally important when they have no control over, like I say, weather or prices. It is to keep them in the game for the long term.

That benefits our taxpayers because we have the highest quality, lowest cost food supply in the world, and this is the most effective way to keep that network of family farms and ranchers out there on the land.

And that really benefits every single American every single day because what do our farmers do? They produce food, fuel, and fiber for this Nation. Well, that is national security, for sure. Food security is national security. But think about this for a minute. We have the highest quality, lowest cost food supply in the world. Every American benefits from that every day. Every time you have something to eat in this country that you buy in our great grocery stores, brought to them from the farm, from the ranch--we have the highest quality and the lowest cost.

Americans spend less of their budget on food, and they have better food than anyone else--more choices, more options, higher quality. But Americans spend less of their budget on food than any other developed country, brought to them by our farmers and ranchers.

That is a remarkable benefit. That is a benefit that every American receives every single day. And that is why it is so important that we get farm policy right. That is why we have got to get it right.

And here is the final point I want to make before I turn things over to my esteemed colleague Senator Boozman. We can't take this network of farmers and ranchers that we have in this country for granted. We have about 16 million people involved in agriculture, directly or indirectly. But our food is brought to us by farms and ranches, a diverse set of family farms and ranches across this country, and we can't take that for granted.

And if we don't have this safety net, if we don't have crop insurance that they can afford to buy--which they buy--and if they can't access this countercyclical safety net, we don't have that network of farms and ranches.

Like a lot of other industries in this country, we can end up with just a few big companies. And I wonder how that is going to work out because all that competition you see from these millions of farmers and ranchers providing that highest quality, lowest cost food supply, that could change, right? So we can't take this for granted.

So when it comes to getting the farm bill done, we have got to get it right. We have got to get it right. And that is what this is all about: getting crop insurance right and making sure that our farmers can both access crop insurance and the countercyclical safety net--ARC and PLC-- at the same time. They need both.

Look, this is about getting a farm bill done. This legislation needs to be included in the farm bill, and it will go a long way toward making sure that we get a farm bill done and hopefully done this year.

And I would like now to turn it over to Senator Boozman for his remarks.

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Mr. HOEVEN. I thank Senator Marshall. Obviously, he speaks on behalf of a very important ag State--Kansas. I thank Senator Boozman and all the cosponsors on this legislation.

As Senator Marshall said very well, this is the most cost-effective way to make sure that we keep our farmers and ranchers out there providing this incredible food supply that benefits every American every day.

One final point that Senator Boozman referenced. We have the support already--the endorsement of virtually all of the major farm groups, you know, the farm production groups in the country representing our great farmers. Their endorsement tells you very clearly that we need to have this enhancement to crop insurance in the farm bill to get the farm bill done.

Again, on behalf of our sponsors of this legislation, I would like to thank them. We are going to work very diligently to do everything we can to work with all of our colleagues to get a farm bill done. ______

By Mr. DURBIN (for himself, Mr. Grassley, and Ms. Duckworth):

S. 4092. A bill to amend title 10, United States Code, to implement a limitation on contracting for supplies needed for the Department of the Army for certain workload activities at arsenals of the Department of the Army, and for other purposes; to the Committee on Armed Services.

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