Dick Lugar: “That, Mr. President, is the basic problem with the amendment that has been offered by the distinguished Senator from…”

“That, Mr. President, is the basic problem with the amendment that has been offered by the distinguished Senator from Iowa. I simply point out that the basic and largest farm organizations in America have spotted this and they wrote to me on September 11. The organizations that have written and signed this letter are: American Farm Bureau Federation, American Sheep Industry Association, National Broiler Council, National Cattlemen's Beef Association, National Pork Producers Council and the National Turkey Federation--very sizable groups, covering general agriculture, as well as specific livestock and poultry situations. They say: Dear Chairman Lugar: As the largest market for feed grains and soybean meal, the livestock and poultry producers are concerned over the debate to change the farm program's non- recourse loan rate structure. While we empathize with the market situation faced by feed grain farmers, we urge you to consider the very serious potential impact that changes in loan rates could have on all users of feed grains. With the export market being so vitally important to American agriculture, it is necessary to ensure that changes in government policy not put animal agriculture at a competitive disadvantage. Historically, non-recourse loan rates that do not reflect market conditions have proven to affect producers' marketing decisions, which in turn have led to government surpluses that negatively pressure market price recovery.”