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Virginia State Seal
Oklahoma
FOR IMMEDIATE RELEASE
July 17, 1998
CONTACT: Natalie Rule
202/225-5565
LUCAS RESPONDS TO OK AG CRISIS

Washington, D.C.--After weeks of drought in Oklahoma and low ag commodity prices, Oklahoma agriculture producers are suffering more than ever. U.S. Sixth District Congressman Frank Lucas has responded to the agriculture crisis in Oklahoma with legislative measures.

Lucas, Speaker Newt Gingrich and several other agriculture state legislators joined Chairman of the House Agriculture Committee Bob Smith today at a news conference to introduce the "Emergency Farm Financial Relief Act" which would allow farmers the option of receiving all of the Agricultural Market Transition Act (AMTA) contract payments for FY 1999 immediately after the beginning of the fiscal year. Additionally, Members denounced President Clinton's neglect of agriculture export programs.

"This week I sat down with agriculture leaders from Oklahoma and had a heart to heart," Lucas said. "And because the concept of bringing back some of the unsuccessful programs of the old style farm program would just not benefit Oklahoma producers in the long run, I suggested an adjustment in the market transition payments already offered to farmers."

"What I was able to come up with in working with Chairman Smith and the Ag Committee staff were the same ideas I am now cosponsoring in the Chairman's bill today," Lucas continued. "This bill will put needed dollars into farmers pockets. At the same time we still do not stray from the '96 Farm Bill thus not reverting back to the supply-control methods of the last thirty years."

The 1996 Farm Bill created the market transition payments--fixed annual payments based on historical yields--to provide predictability to producers as they move toward a market-driven program. These payments equal $32 billion over 7 years, ending in 2002. Annual payments are now made two times a year, in December or January and again in September.

This bill makes the FY 1999 payments totaling $5.5 billion available to farmers as much as one year early by offering them in one lump sum payment as early as October 1, 1998.

"Also raised at the news conference was the fact that President Clinton and Ag Secretary Dan Glickman have not lived up to their promise to use the Export Enhancement Program (EEP) to its fullest. It is imperative that the federal government use every tool available to secure foreign markets for U.S. agricultural products," Lucas said. "That was an integral part of the 1996 Farm Bill and that guarantee of its usage was made by the Administration at the time we passed the bill.

"I have harped on the Secretary and the President about our dwindling farm exports, and our Oklahoma producers can no longer afford their silence on boosting our exports," Lucas said.

"Additionally, the use of American agriculture as a foreign policy political tool has got to stop," Lucas continued. "When the President unilaterally sanctions ag commodity trade from the U.S. into a country, the only country suffering is our own. The wheat boards of Canada and Australia are always happy to step in and fill our orders.

"In our meeting Wednesday morning, I pledged to our Oklahoma ag leaders and to our Oklahoma ag producers that I would find a workable solution to some of the financial problems that low wheat prices and drought have created in the Sixth District of Oklahoma and the nation," Lucas said. "I believe this to be the best solution.

"This method of forwarding the market transition payments will benefit our agriculture producers of all crops if they opt to use it," Lucas continued. "Raising the loan caps this year, as some people suggested, would not benefit all of our Oklahoma farmers. Out of financial necessity, many have already sold this year's crop making them ineligible for the benefits of a raised loan cap."

Consideration of the bill in the House is expected next week allowing ample time for the bill to works its way through the legislative process by October 1, 1998.

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