. NO LONGER LC H218/2.,-O ‘ I’§§}gELRTY MB 70/2557 E213. RA L1 U§‘*w%-:5 ii’ ‘I’ a Mini Brief sir. LOUIS. rvw. CONGRESSIONAL RESEARCH SERVICE LIBRARY OF - CONGRESS -AGRICULTURE: SIGNIFICANT LEGISLATION OF THE 96TH CONGRESS MINI BRIEF NUMBER HB79269 AUTHOR: Withnell, Elizabeth Environnent and Natural Resources Policy Division THE LIBRARY OF CONGRESS CONGRESSIONAL RESEARCH SERVICE HAJOR ISSUES SISTER DATE ORIGINATED gzggggg DATE UPDATED Qggggggg FOR ADDITIONAL INFORMATION CALL 287-5700 0909 CRS- 1 HB79269- UPDATE-09/08/80 £§§UB DEFINIEIQE This issue brief provides a discussion cf current issues in agriculture which either have been or currently are the subject of congressional ‘activity. Where appropriate, each issue discussion is followed by a list of I legislation addressing the topic. In some cases, a single bill, .to the exclusion of other identical or siailar bills, has been chosen from the House and Senate to represent the focus of legislative interest. A brief description of each bill is provided along with a short chronology of congressional actions. uore complete information on each measure is available from the automated bill file (CG96) in SCORPIO. If a committee report has been filed, the appropriate number is listed. These reports are available from the docunents rooms of the House or Senate. In many cases a thorough discussion of a.legislative issue is provided in a specific CBS Issue Brief. For further information, the Issue Brief should be consulted. Issue Brief nunbers are provided where appropriate. BACKGROUND FARM INCOME Inflation, which has plagued the country as a whole, has had a L gticularly severe impact on the agricultural sector. Although 1979 was characterized by record production and record demand, 1980 has been marked thus far by rapidly escalating production costs, particularly for energy and fertilizer. As a result, actual farm earnings have eroded to the point that the Secretary of Agriculture is predicting a 25% decrease in net farm income this year.‘ Congress has responded to the plight of: agriculture with a number of , commodity program measures to bolster far: income. During the first session, both houses approved legislation to modify the loan and payment program for extra-long staple (ELS) cotton (H.R. 5523/S. 1978 —— now P.L. 96-176). Price supports for milk at 80% of parity were also extended until Sept. 30, 1981, during the first session (H.R. 4167 -- now P.L. 96-127). Following the President's decision to embargo grain destined for the Soviet Union, a number of bills were introduced to mitigate the impact of the decision on the agricultural community. The embargo spurred final action on I H.R. 3398, which had been pending for some time. This measure, now P.L. 96-213, provides a 7% increase in the target price level for wheat and feedgrains for 1980, with an additional adjustment at the discretion of the Secretary in 1981, to cover further increases in production costs. Hany feedgrain and wheat producers who were not eligible for 1979 crop loan and reserve program benefits because they had not complied with se -aside requirements became eligible for price support loans with passage of 5- 2fl27, now P.L. 96-23u. This law alsc>authorizes the sale of Commodity Credit Corporation stocks of corn for use in making alcohol for motor fuel I and increases the loan ceiling for the far: storage facility loan program. Bore recently, legislation has been considered which would increase loan rates for soybeans and increase price supports for corn and wheat. Further CRS- 2 . HB79269 UPDATE‘O9/08/B0 action on these proposals is unlikely, however, in light of President Carter's decision in late July to raisee price supports for wheat : 1 feedgrains and to increase loan rates for soybeans. What is likely is that conferees will reach agreement on Senate amendments to the Child Nutrition Amendments of 1980 which, among other provisions, would increase loans rates ffor grain placed in the farmer-held reserve» authorize the establishment of a ~ four-million-metric-ton food security reserve to be used in the Food for Peace Program, and move up the dates for the announcement for wheat and T feedgrain set-asides. Leqieletiee H.R- 7121 (Hathis et al.) Soybean Emergency Act of 1980. Amends the Agricultural Act of 19fl9 to *establish price supports for the 1980 and 1981 crops of soybeans at not less than $5.02 per bushel. Introduced Apr. 22, 1980; referred to Committee on Agriculture. Reported may 16, 1980 (H.Rept. 96-1031,—part I). sequentially referred to House Appropriations Cowmittee. Reported June 11, 1980 (H.Rept. 96-1031, part II). H.R. 6205 (English et al.) Amends the Food and Agriculture Act of 1977 to require the Secretary of 7 Agriculture to set the loan level at 90% of the parity price for a specified agricultural commodity in which export sales have been suspended (such loans levels are currently set only when export sales have been gsuspended due to short supplies). Directs the Secretary to ascertain that government purchases of such conmodities include the acquisition of quantities of like classes of the particular commodities proportionate to the quantities of those classes for which sales were suspended. Introduced Jan. 22, 1980; referred to Committee on Agriculture. Reported, as amended, Apr. 15, 1980 (H.Rept. ~96_877, part I). sequentially referred to House Appropriations Committee. Reported Apr. 30, 1980 (H.R. 96-877, part II). A provision incorporating the purpose of this measure was successfully offered as an amendment to H.B. 6635, discussed elsewhere in this issue brief. 5. 2u26 (Boschwitz) Authorizes an emergency price support program for the 1979 wheat and corn crops. Directs the Secretary of Agriculture to make loans available at two prices -- one for farmers who participated in the 1979 set-aside program; the other, a lower price, for those who did not participate in the set aside. Introduced Mar. 17, 1980; referred to Committee on Agriculture, Nutrition and Forestry. Reported Mar. 17, 1980 (S.Rept. 96-632). H.B. 7664 (Perkins)/S. 2675 (McGovern et al.) Child Nutrition Anendnents of 1980. As passed by the Senate, this bil‘ lcontains, as Title IV, the provisions of the Agricultural Trade Suspensio. Adjustnent Act of 1980 (S. 2639), which authorize" price support loans for j wheat and feedgrain producers to mitigate the adverse effects of export restrictions on agricultural products to the Soviet Union. Directs the Commodity Credit Corporation to acquire wheat and corn to alleviate the adverse effects. Provides for the establishment of a food security and a gasohol feedstock reserve of any agricultural commodity of which exports are CRS- 3 HB79269 UPDATE—09/08/80 suspended or restricted for national security or foreign policy reasons. J Purrently the subject of House-Senate conference. gglgted Issug_§g;g:§: ‘IB75075 -— Agriculture: Domestic Legislation and Issues; IB77116 - Agriculture: Parity, Parity, Parity; IB30025 -- 0.5.." Embargo of Agricultural Exports to the U.S.S.R. AGRICULTURAL CREDIT The tightening monetary policy of the Federal government has reduced the amount of loan funds available to farmers for operation and expansion. Even where farmers are able to obtain financing, the interest rate is higher than f many can afford in a year of relatively low commodity prices. To help reduce the credit crunch in the farm sector, Congress enacted S. 2269, now P.L. 96-220, to extend for two years the Economic Emergency Loan Program of the Farmers Home Administration. The measure adds $2 billion in loan authority to a program that had already reached its lending limit of $4 billion. Congress also passed legislation to authorize qualified lenders to charge interest on business and agricultural loans of $25,000 or more at a rate of up to 5% above the discnunt rate on 90-day commercial paper, notwithstanding State usury laws. P.L. 96-100 expires on Jan. 1, 1981. Legislation is currently under consideration to expand the lending authority of the Farm Credit System. The measure, originally developed by‘ the Farm Credit System itself, would allow Federal Land Banks to make largersii 1 ADS when backed by a guarantee from a governmental agency, would broaden the authority of Production Credit Associations to finance processing and : marketing businesses of farmers, and would authorize Banks for" Cooperatives to finance commodity export transactions and expand eligibility limitsm for rural electric and telephone cooperatives. Lsgielasieu S. 1465 (Talmadge et al.)/E.R. 7548 (Jones, E., et al.) The Farm Credit Amendments. Originally developed by and submitted to Congress at the request of the Farm Credit System, the legislation updates and improves the operation by the Farm Credit System by expanding its ability to serve the credit and related needs of farmers, ranchers, producers, and harvesters of aquatic products, and their cooperatives. Introduced in the ;Senate July 9, 1979; in the House June 11, 1980. (The original Farm Credit System bill, H.R. #782, was introduced July 13, 1979. H.R. 7508 supersedes it.) Referred to the respective Agriculture Committees. The Senate bill was jyreported with amendments June 26, 1980 (S.Bept. 96-837) and passed in the Senate with amendments by voice vote on July 20, 1980; the House ibill has been the subject of extensive hearings and mark-up. It was ordered reported to the House floor on Aug. 26, 1980. . §§: IB80033 - Agricultural Credit: Expanding Lending Credit System. Relgted Is§gg_§; is Authority of the Farm AGRICULTURAL TRADE CRS- 4 HB79269 UPDATE-09/08/80 The 96th Congress has taken several significant actions to strengthen ' 2 position of 0.5. agriculture in the world market. The Trade Agreements Act of 1979, for example, which is now P.L. 96-39, implements changes made at the Tokyo Round of Multilateral Negotiations where a wide range of major _agreements was signed by participating countries. The Carter Administration, using authority granted it by the Trade.Act of 197R, agreed to reduce U.S. tariffs and other border restrictions in return for similar concessions from other countries. at Both houses also adopted legislation to revise the formula under which imports of beef and veal are permitted intcathe U.S. The Heat Import Act of 1979, P.L. 96-177, provides for a countercyclical formula for meat imports, permitting them to increase when domestic supplies are low and prices trelatively high and to decrease when domestic supplies are plentiful and prices relatively lower. The U.s. became a fully participating member of «the International Sugar :;Agreement (ISA) on Apr. 22, 1980, when the President signed H.R. 6029, authorizing the implementation of the ISA, into P.L. 96-236. The ISA is designed to stabilize world sugar prices between 11 and 21 cents per pound by ft establishing a system of export guotas and stockpiles among the 50 sugar exporting and importing member nations. The Senate ratified the agreement on Nov. 30, 1979. The implementing legislation authorizes related executive Vi support activities. Ratification of the ISA had been tied ujxin a dispute over creation of domestic sugar price support program, which was ultimately defeated when the House refused to approve H.R. 2172 win October 1979. Under existing g authority, the Department of Agriculture is supporting the domestic price of sugar by offering a loan program at 13 cents per pound and a market price objective of 15.8 cents per pound. 0.5. and world prices have been above these levels in recent months. Initial congressional response to the President's decision to embargo ytgrain bound for the Soviet Union was to attempt to soften the blow on farmers of the loss of a major export market. More recently, however, the embargo has been strongly criticized as an ineffective foreign policy weapon with serious and overriding domestic repercussions. Several bills have been introduced to repeal the embargo outright. An attempt was made in the House on July 23 to amend the Commerce Department's appropriation bill to delete funding to enforce the embargo, but the amendment was defeated by a vote of 135-279. i Ls9isleti92 S. 2855 (Dole et al.)/H.R. 7632 (Abdnor et al.) Rescinds the agricultural commodity export embargo of the Soviet Unior Senate bill introduced June 20, 1980; referred to Committee on Banking, Housing and Urban Affairs. Hearings on S. 2855 held August 19 and 20. House .,bill introduced June 20, 1980; referred to Committee on Foreign Affairs. gg;ateQ_I§§g__§;ig§§: Archived IB79072 -- Agriculture: HTN Benefits and Concessions; Archived IB78023 -- Agriculture: U.S. Export Promotion CBS? 5 ' flB79269 UPDATE°09/08/80 Activities and Programs; Archived IB78061 - Heat Imports. CROP INSURANCE Disaster assistance for farmers is currently being provided by several different programs. Spurred by dissatisfaction from farmers and program administrators during heavy crop losses in 1976 and 1977, and by the ~expiration of the Disaster Payments program;this year, Congress has moved~fi toward major revision of the Federal Crop Insurance Program. Lesielerien H.R. 4119 (Jones, E;, et al.)/S. 1125 (Huddleston et al.) Amends the Federal Crop Insurance Act with regard to the Board and stocked of the Federal Crop Insurance Corporation, exclusive Federal court jurisdiction of lawsuits, the use of private insurance companies, coverage ‘and premiums reinsurance, appropriations, emergency borrowing authority, and 5 related matters. The senate bill was introduced Hay 1Q, 1979; referred to Committee on Agriculture, Nutrition and Forestry. Reported July 20, 1979, with amendments (S-Rept._96-254) and passed Sept. 10, 1979. The House hill 1 was introduced may 16, 1979; referred to Committee on Agriculture. Reported Sept. 13, 1979, with amendments (H.Rept. 96-430).« The Senate version passed 5 lieu of the House bill Feb. 13, 1980. A conference between the two houses recently reached agreement on the final version of the bill. The conference report (H.Rept. 96-1272) was filed in the Ebuse on Aug. 28, 1980. Relaggd_;§§ge_§;;g§§: IB78076 -- Agriculture: Proposed Revisions in Federal Disaster Assistance. FOOD AID AND FOOD SECURITY Increasing food prices and decreasing supplies have raised concerns in Congress about a shortfall of commodities available for use in the concessional and donation programs of the Food for Peace Program. In response to these concerns, a number of bills have been introduced to establish a wheat reserve to provide emergency food aid to poor nations when commodities are in such short supply that they would normally be denied. Under current law, commodities can be denied for the Food for Peace program . if supplies are below that needed to meet domestic requirements, carryover, and anticipated commercial exports, unless the Secretary of Agriculture determines that some part of the supply should be used to carry out the A.urgent humanitarian purposes of the program. A new international Food Aid Convention was agreed to in early 1980. The agreement establishes a minimum annual aid level by donor countries of 7.6 mi .ion tons of wheat and other cereals. Of this amount, the U.S. is committed to provide a minimum of u.u7 million tons. Senate ratification of mthis treaty is required. Leeielerien CBS- 6 HB79269 UPDATE-O9/O8/80 H.R. 6635 (Zablocki et al.) Directs the President to establish a reserve stock of up to 4 million metric tons of wheat for release on a donation or sale basis to provide emergency food assistance to developing countries when it is determined that 0.5. supplies are short. Provides additional authority to the President to use up to 300,000 tons of the wheat reserve for urgent humanitarian relief in ’ developing countries at any time. Introduced Feb. 27, 1980; referred to Committees on Agriculture and on Foreign Affairs. Reported from Committee on Foreign Affairs may 15, 1980 (H.Rept. 96-966, part I). Ordered reported from Committee on Agriculture June 12. As amended by the House Agriculture ’ Committee, the bill also sets mandatory rates for Federal loans on farm commodities for periods when foreign sales on the commodities are suspended. S. 2639 (nccovern) _ Incorporates section 5 of S. 2258, which directs the President to * establish a reserve stock of up to H millitn metric tons of wheat for release on a donation or sale basis to provide emergency food assistance to developing countries at any time. Introduced May 1, 1980; referred to ‘" Committee on Agriculture, Nutrition and Fcrestry. Reported the same day (S.Rept. 96-676).‘ §g;atgd_ ;§sg§_ ggigfg: IB73010’ -- Agriculture: International Food Legislation and Issues; IB78234 -- Agriculture: International Food Beser' Proposals; IB7508u -- Food for Peace: Revisions in the 0.5. Food Aid Program. AGRICULTURE AND THE ENVIBONHENT dasstisidee The Environmental Protection Agency's pesticide programs are currently being funded under the agency's appropriations, but the authorization, the‘ Federal Insecticide, Fungicide and Rodenticide Act as amended (commonly referred to as FIFRA), was not reauthorized.beyond FY79. Attempts to renew it during the first session of Congress failed because conferees could not agree on key provisions, including a one-house veto of EPA proposed rules. The full House recently gave approval, however, to a measure that will extend the authorization for appropriations up to $72,160,000 until Sept. 30, 1981. As passed by the House, the legislation includes a two-house congressional veto of regulations during a 90-day period prior to their promulgation. Such a provision was, in fact, included in the bill to assure its passage after a majority of the House defeated attempts to extend the FIFRA authorization without a veto section. The measure was also approved in the Senate in late July, by voice vote. The Senate bill includes a provision requiring the EPA to consult with a scientific Advisory Panel prior to suspending an" pesticide. Anin2l_2an29s-§2nLr2l : Predator damage, particularly to sheep populations in the West, has been CRS— 7 HB79269 UPDATE-O9/O8/80 an issue for several years. The problem centers on acceptable methods of control. In 1979, the Secretary of the Interior announced a revised Federal Ilicy on predator control which would prohibit further research’ and development on compound 1080, considered by those in the sheep and cattle industries to be one of the most effective weapons against predators. Environmental groups and conservation societies lauded the Secretary's decision, but ranchers and livestock producers are opposed to efforts to limit what they believe to be one of the best ways to control predation. Legislation has been introduced in both houses which would permit the " continued use of compound 1080 until such time ash more suitable control methods are developed. 8 Soil and Water Conservation Federal efforts to conserve agricultural resources from the ravages of erosion or the encroachment of urban development are proceeding on two fronts. At the executive level, the Secretary of Agriculture pas completed an appraisal of soil and water resources on non-Federal lands, in response to the reguirments of the Soil and Water Resources Conservation Act of 1977, P.L. 95-192. The law also requires the Secretary to develop a comprehensive policy to administer programs of soil and water conservation. The appraisal, in draft form, was recently released for public comment. Judging from the:” response by far: and conservation groups, there isga great deal of interest in and concern about the USDA's efforts to conserve soil and water resources. A number of legislative initiatives to preserve the agricultural land base 1 re also been the subject of public debate. Initial efforts to authorize a USDA study of agricultural land use and to provide financial assistance to States and localities to develop methods to reduce agricultural land vgconservation failed in the House when H.R. 2551 was defeated by a vote of 177-210. More favorable action was taken, however, on H.R. 3789, a bill to extend the Great Plains Conservation Program for ten years. Under this program, farmers contract with the Federal government to undertake conservation projects on land subject to erosion in the 10 Great Plains States. The measure, now P.L. 96-263, also authorizes funds for water erosion projects. Other legislation is now before Congress which approaches the question of conservation from a different perspective, including proposals to authorize a national soil conservation program and the implementation of cross-compliance prequirements as a condition for eligibility for other USDA programs. Lsgisletien Eeesisides H.R. 7018 (de la Graza et al.)/S. 2587 (Talmadge, by request) Amends the Federal Insecticide, Fungicide and Rodenticide Act to authorize appropriations for the environmental pesticide control program through FY81. H.R. 7018 reported to the House, hay 15, 1SBO (H.Rept. 96-1020). Called up on the suspension calendar, but failed passage, June 17, 1980, by a vote of * 199-215. Called up under regular procedure~June 24, 1980. Passed the House, as amended, by a vote of 392-22 and referred to the Senate. Senate bill was CRS- 8 MB79269 UPDATE-O9/O8/80 reported on Bay 15, 1980 (S.Bept. 96—76u). Measure was passed by the Senate on July 24, 1980, by voice vote. Senate then struck out all after ’ 2 enacting clause of H.R. 7018 and inserted S. 2587, as amended, in lieu of the House-passed bill. Predator Control H.R. 6733 (Kazen)/S. 2195 (Tower et al.) Directs the Secretary of Interior, in cooperation with the Secretary of Agriculture, to take specified actions in carrying out a program for controlling damage caused by livestock predators. House bill introduced Mar. 6, 1980; referred to Committee on Agriculture. Hearings held in the Subcommittee on Department Investigations, Oversight and Research on Apr. 16, 1980. Senate bill introduced Jan. 22, 1980; referred to Committee on, Environment and Public Works. 50;; and !e2s;_-22§erzati2n n.n. 6382 (Bedell) Amends the Agricultural Act of 1949 to direct the Secretary of Agriculture ,to establish a land diversion payment program for the 1980 crops of corn a I wheat. Requires, as a condition of eligibility for such payments, that grain* producers devote to approved conservation uses a certain amount of cropland. Alntroduced Mar. 18, 1980; reported to House, as amended, April 15 (H.Rept. 96-878, part I). sequentially referred to Committee on Appropriations. Reported April 30 (H.Rept. 96-878, part II). ' . . H.R. 6732 (Jones, EA, et al.)/S. znaa (Church et al.) Authorizes a program for soil and water conservation in speciallyiw designated areas. Provides technical and financial assistance to owners and operators of non-Federal agricultural landfi House bill introduced Har. 6, y 1980; referred to Committee on Agriculture. Senate bill introduced Mar. 27, 1980; referred to Senate Committee on Agriculture, Nutrition and Forestry. H.R. 7022 (Grassley) Authorizes a national soil conservation program which utilizes financial incentives to landowners to establish and maintain conservation measures. Establishes a pilot program to test the purchase of conservation benefits by the Federal government. Introduced Apr. 2, 1980; referred ot Committee on Agriculture. ~ §g;atg§_;§§g§_§g;g§§: IB77052 - Agriculture: Impacts of Air Pollution’ IB7707fl_ —— Pesticides: An Overview; IB78013 -- Farmland Protectio Legislation; IB80031 -- Agriculture: Soil Conservation and Farmland yProductivity. FARM STRUCTURE CRS- 9 HB79269 UPDATE-09/O8/80 Farm structure as a policy issue involves an examination of the organization of agriculture, the control of agricultural resources, and the .ture of domestic agriculture and its implications abroad. The current congressional debate on farm structure has centered primarily on who owns America's farmland and how Federal policy should be altered to effect this ‘ ownership. F K In the past decade, the purchase of farmland by foreigners has emerged as an issue which could, in the view of some observers, threaten_the future of "“ agriculture in the United States. Concern has developed that the control of farmland is moving from domestic sources tcxalien owners whose purchases at higher-than—market rates greatly inflate land prices and whose absentee holding of the land threatens the indigenous agricultural and rural community. In response to these concerns, in 1978 Cbngress adopted the Agricultural Foreign Investment Disclosure Act, P.L. 96-#60, which establishes a “.nationwide system for monitoring landholdings and purchases by foreign investors. Pursuant to that statute, the Department of Agriculture collected information on foreign investment in farmland and has issued a report on the basis of 3,784 returns from alien owners. Although the results of the survey should allay fears about the impact of alien land tenure, additional legislation has been introduced during this Congress which would makew y farmland a less attractive investment to foreigners. The question of farm structure has also emerged in the context of debate over the amount of Federally subsidized irrigation water which should be 1 )vided to western agricultural users. The Reclamation Act of 1902 authorized subsidized irrigation projects to spur the settlement of arid yywestern lands by family farmers. The Act required farmers to live on or near their land and limited their water allotment to 160 acres. Over the years, however, the Act was implemented in a way which fostered the growth of large "farms with irrigated holdings far in excess:of 160 acres. This situation was the impetus for the filing of a lawsuit against the Department of Interior seeking to compel strict enforcement of the 1902 law. The Department ,responded to the suit with proposed regulations more in line with the diptates of the Act, but both the Supreme Cburt and the Congress have called into question the future of these proposals. The high Court recently ‘ruled that the acreage limitation does not apply to California's Imperial Valley, while Congress has been actively considering legislation to change the’ original Act to account for what many consider to be the modern reality of Western agriculture. Federal tax policies can also have a considerable effect on the structure of agriculture. In fact, some observers believe that taxes, more than any other issue, determine the characteristics of the industry. As part of the Crude Oil Windfall Profits Act, now P.L. 96-223, Congress took action which could have a significant. impact on farm structure. A provision in thatflaw repeals the carryover basis for determining capital gains taxes. The carryover basis, originally enacted as part of the Tax Re ‘rm Act of 1976, was designed to capture capital gains taxes on the appreciated value of property passing from one generation to another at death. The provision was criticized as being administratively unworkable and as being biased against certain segments of the population, especially farmers and ranchers. Farmers, in particular, expressed concern that as a result of the provision their capital gains tax burden would bet increased solely through inflation in land values, rather than through increases in CBS-10 MB79269 UPDATE—09/O8/80 productivity of the property. Le9;§;e2;22 H.R. 7765 (Giaimo) Omnibus Reconciliation Act. Reported from the House Budget Committee, 5 contains as one of its revenue-raising provisions a section which would for the first time impose on nonresident aliens or foreign corporations a capital gains tax realized from the sale of real property interests, such as X farmland. The bill was reported on July 21, 1980 (H.Rept. 96-1167). ‘H.R. 6520 (Ullaan et al.) Replaces the existing acreage linitation.of 160 acres with a limitation of ;960 acres owned in any combination of 18 or fewer people. Abolishes the : residency requirement for qualified recipients. Permits qualified recipients to rent up to 2400 additional acres on paylent of costs. Introduced Feb. 13, 1980; referred to Committee on Interior and.Insular Affairs. Hearings held in Harch. Reported, as amended, June 21, 1980 (H.Rept. 96-1158). S. 1n (church et al.) Replaces the existing acreage limitation of 160 acres with a limitation of 1280 acres owned or leased in any combination of 25 or fewer peopl Abolishes the residency requirement for qualified recipients. Introduced Jan. 15, 1979; reported from Committee on Energy and Natural Resources on = July 6, 1979 (S.Rept. 96-235). Passed Senate, as amended, by a vote of 47-23 on Sept. 1a, 1979. S. 19fl (ncsovern et al.) Regulates and controls the acquisition. of U.S. agricultural land by foreign persons by requiring a permit from the Secretary of Agriculture for such acquisition. Introduced Jan. 23, 1979; referred to Committee on Agriculture, Nutrition and Forestry. §g;a§gg_I§§gg_§;ig§§: IB7806u —— Foreig Investment in U.S. Farmland; eiIB78002 -— Acreage Limitation Controversy: Status Report; IB77072 -- water Resources: Conservation in Irrigated Agriculture. ENERGY AND AGRICULTURE The agricultural sector has a very large stake in the outcome of the iidebate on energy. Agriculture consumes abmnt M% of all energy used in the ‘wflnited States, and the rising cost of energy inputs has been in part responsible for the financial crisis farmers now face. Agriculture also ha" significant potential to contribute to the nation's energy supplies throng alcohol fuels developed from crops, residues, or other sources of biomass. Recognizing the importance of agriculture's contribution to energy, Congress has actively considered two major pieces of legislation which will further the potential for rural areas to become energy self-sufficient. The windfall profits tax bill, H.R. 3919, now P.L. 96-223, contains several CBS-11 HB79269 UPDATE—09/08/80 provisions to spur the production of alcohol fuels. These include (1) extension of the R-cents-per-gallon Federal.excise tax exemption for gasohol .rough the year 1992; (2) a tax credit of 40 cents per gallon for alcohol ” ruels of above 190 proof (95% alcohol), and 30 cents per gallon for alcohol fuels of between 150 and 190 proof (75—95% alcohol); (3) simplification of the BAT? regulations as they apply to alcohol fuels production; and (4) a;” specification that a person purchasing gascdine for use in production of gasohol may obtain a refundable income tax credit in an amount equal to the .Federal excise tax paid on the gasoline. The Energy Security Act, often referred to as the synfuels bill, contains an authorization for appropriations in excess of $1.2 million for energy i projects using agricultural sources as a feedstock, such as grain or wood. The measure also authorizes funding for prcfiects to convert urban wastes into energy and funding to spur the development and‘ use of solar energy. President Carter signed the bill into law (P.L..96-29a) on June 30, 1980. ggl§tg§_;§§gg_§;;gf§: IB7u087 -— Gasohol: The Alcohol Fuels; IB74064 -- Energy from Solid Wastes and Bioconversionh 0 TRANSPORTATION Transportation is of vital concern to the agricultural sector. Farmers depend on a network of railroads, trucks, barges, and ships to receive the inputs they need to produce and to get their products to domestic and i ;ernational markets. Congress has long recognized the importance of transportatio to T agriculture and has sought a variety of legislative remedies to deal with the situation. Host recently, these (remedies: have focused on deregulation, particularly in the railroad and trucking industries. Prior to recessing for the Republican National Convention, for example, both houses gave final approval to S. 22u5, the Motor Carrier Reform Act of 1980, which would streamline regulations in the trucking industry in) a number of ways. Of particular interest to the agricultural sector is a provision in the Act, now P.L. 96-296, which would expand the exemption from regulation for certain agricultural, horticultural, or aquacultural commodities and livestock. Legislation to deregulate the railroad industry, the Railroad Transportation Policy Act, has already cleared the Senate and is currently before the House for further action. It revises the regulation of the industry with respect to rail rates, entry into the industry, services, abandonments and discontinuances, pooling agreements, and mergers or acquisition of control agreements. Although debate began in June, the measure was pulled from the floor after an amendment was approved that sponsors claimed would "gut" the bill. Efforts are underway to reach agreement so that the measure can be adopted this year. one further neasure of importance to agricultural States is the ' Agricultural Subterminal Facilities Act, which would provide Federal grants to states to assist in the development of plans for subterninal storage J facilities. These facilities are an accommodation by the grain trade to the realities of the current rail industry. In.nany areas, rural shippers may lose local rail service or find it difficult to pay for single-car rates or the cost of branchline service. The creation of subterminal storage facilities would facilitate the transport of grain in multiple cars or on CBS-12 HB79269 UPDATE-09/08/80 unit trains. Surrounding local elevators could serve as satellite stations for storage and collection of the grain. In the 95th Congress, both houses adopted legislation to create a Rural Transportation Advisory Task Force to address issues cocerning ‘agricultural transportation. The Task Force released its preliminary report last June.,” The recommendations contained in that document, which deal with a wide range of transportation questions, may form the basis of additional legislation for ‘ ;_congressional consideration. ‘ ‘” 9Lsq;§l22i22 H.R. 7235 (Florio et al.) The Rail Act of 1980. Sets goals of assisting in ‘the rehabilitation of tithe country's rail system, reforming Federal regulatory policy to preserve a ” safe and efficient rail system and providing a regulatory process that‘ balances the needs of carriers, shippers, and the public. Introduced may 1, A;1980. Reported from the Committee on Interstate and Foreign Commerce, with amendment, Hay 16, 1980 ¢H.Rept. 96-1035). Debate in the House commenced June 30, 1980.1 S. 1946 (Cannon et al.) Railroad Transportation Policy Act of 1979. Revises the econom‘ I regulation of the railroad industry. Repeals or reduces the Interstate Commerce Commission's regulatory authority over rates, entry into the F industry, abandonments and discontinuances, pooling agreements, and mergers. As passed by the Senate, the measure also contains some protection for captive shippers -- those who are dependent entirely on one line for service. Introduced Sept. 29, 1979; reported from Committee on Commerce, Science and’ Transportation (S.Rept. 96-470). Passed. Senate, amended, April 1980; referred to House Committee on Interstate and Foreign Commerce. S. 261 (HcGovern et al.)/H.R. 71n1 (Daschle) y Agricultural Subterninal Facilities Act of 1980. Directs the Secretary of 1 Agriculture to make grants available to States to assist in the development of plans for subterminal facilities. Limits such assistance to not in excess , of 80% of plan preparation costs. Introduced in Senate Jan. 31, 1979; reported from Committee on Agriculture, Nutrition and Forestry with an amendment in the nature of a substitute, Hay 15, 1979 (S.Rept. 95-159). .Passed Senate May 23, 1979; referred to House Committee on Agriculture, May 30, 1979. House Committee discharged bill and it was taken up in lieu of the House measure on June 3, 1980. Passed House, as amended, June 3, 1980. §glgteQ_I§§gg_§;igg§: IB79003 - Railroads: Regulatory Issues; HB79202 . —— Railroad Problems: A Precis; IB76019 --Trucking: Economic Regulation. HARKETING In its broadest sense, marketing of agricultural products is the total system of economic activities concerned with the flow of food and fiber from farmer to consumer. It includes production, assembly, processing, CR5-13 nB79269 UPDATE-O9/08/80 wholesaling, retailing, and consumption. A discussion of marketing of farm products necessarily includes a discussion of Federal action in this area since the Congress and the Executive Branch have taken a number of steps to influence the way agricultural commodities are brought to consumers, the amount they will cost, 9 and the returns those who produce these commodities will receive for their efforts. ‘ Much of the legislation discussed elsewhere could have an impact on the m marketing of agricultural products. In addition, Conress has considered several other measures which address some aspect of marketing. Legislation has recently been signed by the President, for example, which would increase the assessment on egg producers for funding of research, education, and promotion of egg products. The bill, H.R. 6285, is now P.L. 96-276. other-“‘ measures that have received attention include a bill to give farmer bargaining associations increased power to deal with handlers and processors, ” legislation requiring nutrition labeling of food, and a measure to authorize N” the Commodity Futures Trading Commission to set nargin requirements for trading contracts in emergency conditions, and a bill to exempt from the official weighing requirements of the ‘U.S. Grain Standards Act inbound A shipments of grain delivered by any means ct conveyance except barge. Ls9i§lef;2n pH.R. 3535 (Panetta et al.)/S. 1193 (Huddleston et al.) Repeals the Agricultural Fair Practices Act of 1967 and establishes an agricultural bargaining policy substantially identical. Enumerates the unfair practices a handler of agricultural products is forbidden to commit under existing law, and adds a list of unfair practices an association of producers may not commit, including: (1) refusal to bargain in good faith with a handler, (2) coercing or intimidating a handler to breach or terminate ’ marketing contracts and association membership agreements; (3) circulating false reports about an association's or handler's finances, management, or activities; and (H) conspiracy to commit an unfair practice. Introduced Apr. 9, 1979; referred to Committee on Agriculture. Hearings on the House bill held July 1979. H.R. 55u6 (Ashley) Amends the United States Grain Standards Act to exempt from official weighing requirements: (1) intraconpany shipments of grain into an export elevator by any mode of transportation, unless the shipper or receiver requests that such grain be officially weighed; (2) grain transferred into an export elevator by transportation nodes other than barges; and (3) grain transferred out of an export elevator -to destinations within the United States. Introduced Oct. 11, 1979; referredw to Committee on Agriculture. .Hearings held in the Subcommittee on Livestock and Grains on Oct. 17, 1979. Sv°?ommittee mark-up held May .8, 1980; ordered reported to the full" cclnittee. Full committee reported the bill on July 21, 1980 (H.Rept. 96-1166). Debated and passed the House under suspension of the rules Aug. 18, 1980. Referred to Senate Committee on Agriculture, Nutrition and Forestry on Aug. 19, 1980. Currently pending before Subcommittee on Agricultural Production and Subcommittee on Foreign Agricultural Policy. CRS-14 MB79269 UPDATE-02/08/80’ H.R. 7183 (Glickman et al.) Provides the Commodity Futures Trading Commission with standby authority to set margin requirements for trading contracts in emergency situations. Introduced day 5, 1980; referred to Committee on Agriculture. Reviewed as A part of oversight hearings on futures trading held by Subcommittee on Conservation and Credit Hay 21 and 22. S. 1651 (ncsovern et al.)/H.R. 5137 (Richmond) Directs the Secretary of Agriculture, after consultation with the ° Secretary of Health and Human Services, to develop and implement nutrition labeling and information for meat, neat food products, poultry, and poultry products. Both measures introduced Aug. 2, 1979; referred to respective 5: Agriculture Committees. Hearings held in the Senate Subcommittee on Nutrition on Apr. 1, 1980. held in February and March, 1980. S. 1652 (ucsovern et al.) Amends the Food, Drug and Cosmetic Act to require the publication of additional nutrition information on food package labels. Empowers the Secretary of Health and Human Services, in consultation iith the Secretary of Agriculture, to develop, pilot test, and cfimplenent a program of consumer gt education on how to use nutrition labels effectively. Introduced Aug. 2, “ 1979; referred to Committee on Agriculture, Nutrition and Forestry. Hearings I S- 2704 (Proxmire) Amends the Federal Reserve Act to authorize the Board of Governors of the Federal Reserve System to establish magin requirements for futures transactions in financial instruments. Introduced May 14, 1980; referred to o Committee on Banking, Housing and Urban Affairs. Hearings held May 29 and 30. §g;at§g_;§§gg_§;;g§§: IB80055: Food Labeling.