WASHINGTON D.C: Northern California Congressman Wally Herger (R-Rio. Oso) endorsed an agreement reached between House and Senate members of the Agriculture Reconciliation which would reduce spending by almost $1 billion, Herger is the only first term Congressman from either political party to be selected for the influential conference, which seeks to reconcile differences between the House and the Senate versions of a $75 billion deficit reduction package.
“I believe this agreement is one farmers can live with in a time when all sectors for the federal budget must make sacrifices to reduce our budget deficit”, Herger said. “Talk is not enough; we’ve made fair and responsible reductions in the Agriculture budget, and taken steps which will help eliminate abuses”.
The bulk of the $950 million worth of savings will be achieved by cutting target prices by between 1.25% and 1.5%, depending on the commodity, and cutting price supports by 1% in 1988 and 1989. Also included in the bill were a “0/92” program for wheat farmers and reduction in the and division for corn growers, both of which are designed to achieve additional savings in those commodities.
Another provision of the bill, which is still awaiting final passage, the “Huckaby provision”, would restrict government payments to “passive investors”. Herger emphasized that the provision is aimed at eliminating abuses and tightening loopholes. “Our support for working farmers remains solid”, Herger said. “But were tightening the rules for passive investors, people who regard farming as a paper investment, and who are not actually engaged in the farming operation. I have always believed in the need to tighten the rules governing subsidy payments,” Herger said.
Article extracted from this publication >> January 1, 1988