Rodney Frelinghuysen: “I rise to support the Neumann/ Kanjorski amendment to establish a maximum market price for peanut sales of $550 per ton.…”

“I rise to support the Neumann/ Kanjorski amendment to establish a maximum market price for peanut sales of $550 per ton. Mr. Chairman, this amendment attempts to keep our promise to the American people to reform the peanut program, one of a number of inappropriate and outdated subsidies. While last year's Farm Act, better known as the ``Fair Act'' gave farmers of agricultural commodities greatly expanded flexibility, removed the heavy hand of government, and reduced government payments to farmers; the peanut program continues to waste taxpayer's dollars. The sole beneficial peanut provision for consumers in the farm bill-- the 10 percent price reduction, sold to Congress as reform, has been severely undercut by the Department of Agriculture's deliberate reduction in the national marketing quota for peanuts. As implemented, the peanut program completely ignores the needs of consumers for more reasonable peanut prices. Under the current system it is up to the USDA to project what the domestic consumption of peanuts will be and set a marketing quota. In the past the USDA has under estimated the quota creating an artificial shortage of peanuts and thus raising the price. By creating an artificial shortage, USDA has effectively denied the promised reduction in the price of peanuts under the reform provision contained in the farm bill. This amendment follows through with our commitment to reform the peanut program.”