Congress Honors 2002 Farm Bill Commitment, USA Rice Producers’ Group Leader Says

WASHINGTON, December 21, 2005 — The USA Rice Federation recognized congressional leadership's role in protecting agriculture in today’s Senate approval of the Deficit Reduction Act of 2005 (S.1932), which largely maintains the government’s commitment to farmers in the 2002 farm bill. The Senate voted 51-50 to approve the measure which minimizes the impacts of budget reductions to key farm bill programs. The legislation approved today reduces federal mandatory spending by $39.7 billion over the next five years. The House voted 212-206 on Sunday, Dec. 18, to approve the bill.

“At the end of the day, Senate Agriculture Committee Chairman Saxby Chambliss (R-GA) and House Agriculture Committee Chairman Bob Goodlatte (R-VA), agreed on a budget reconciliation package for agriculture that continues to honor the commitments made to farmers in the 2002 farm bill,” USA Rice Producers’ Group Chairman Paul T. Combs said.

“The rice industry greatly appreciates the efforts of Chairman Chambliss, who throughout the budget reconciliation process ensured that farmers were treated fairly,” Combs said. “While we would have preferred to see the authorization for commodity programs extended, as was done for certain conservation programs, we are pleased that commodity programs are not being reduced in 2006 and 2007. “

“Since the commodity programs are not being reduced, the budget baseline for these programs has been preserved, which was a key priority throughout this process,” Combs explained. “No overall reduction in commodity programs was critical given the numerous challenges rice producers have faced in 2005, including drought, hurricanes, and skyrocketing energy costs. This will be key as producers are now working to complete their financing arrangements for the 2006 crop year.”

“USA Rice would like to thank the chairmen for their hard work on behalf of the rice industry and all of agriculture,” Combs said.

The Deficit Reduction Act of 2005 lowers the direct payment amount received in advance to 40 percent for 2006 and 22 percent in 2007, although the entire payment will still be received. The Conservation Security Program and Environmental Quality Incentives Program are reduced, as are rural development, research, and energy programs for a total savings from agriculture of $2.7 billion.

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Contacts: Reece Langley, (703) 236-1471, rlangley@usarice.com

David Coia, (703) 236-1444, dcoia@usarice.com

USA Rice Federation is the national advocate for all segments of the rice industry, conducting activities to influence government programs, developing and initiating programs to increase worldwide demand for U.S. rice, and providing other services to increase profitability for all industry segments.