SF 229

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                             A resolution 
  1.2             memorializing the United States Congress to design and 
  1.3             implement timely financial relief for livestock and 
  1.4             commodity grain farmers. 
  1.5      WHEREAS, the Freedom to Farm Act passed by the United 
  1.6   States Congress in 1996 has resulted in disastrous economic 
  1.7   conditions for family farmers; and 
  1.8      WHEREAS, the economy of rural Minnesota is vitally 
  1.9   dependent on the state's 10,800 swine producers and over 80,000 
  1.10  commodity grain farmers; and 
  1.11     WHEREAS, the sale of feeder pigs and market hogs in 
  1.12  Minnesota generated gross revenues of $1.17 billion in 1997; and 
  1.13     WHEREAS, the price received for hogs since the middle of 
  1.14  calendar year 1998 has been at all-time historic lows; and 
  1.15     WHEREAS, the United States swine industry is in dire need 
  1.16  of government intervention to stem the continued loss of $50 to 
  1.17  $75 per hog marketed to slaughter; and 
  1.18     WHEREAS, the very low market prices for hogs threaten to 
  1.19  force large numbers of swine producers out of business; and 
  1.20     WHEREAS, a major reason for low market prices for market 
  1.21  hogs is a lack of sufficient capacity to slaughter the number of 
  1.22  hogs produced; and 
  1.23     WHEREAS, slaughtering capacity has actually declined by 
  1.24  37,000 head daily since mid-1997, during which time market hog 
  1.25  production has risen to record levels; and 
  2.1      WHEREAS, relief for swine producers is a national emergency 
  2.2   warranting immediate intervention; and 
  2.3      WHEREAS, the North American Free Trade Agreement has 
  2.4   contributed greatly to the influx of swine from Canada; and 
  2.5      WHEREAS, the prices received by farmers for corn, soybeans, 
  2.6   wheat, and barley are significantly below costs of production; 
  2.7   and 
  2.8      WHEREAS, the very low market prices for commodity grains 
  2.9   threaten to force many grain producers out of farming; and 
  2.10     WHEREAS, a contributor to low commodity grain prices may be 
  2.11  reduced marketplace competition caused by the proposed merger of 
  2.12  Cargill, Inc. and the grain unit of Continental Grain Company, 
  2.13  which two companies control in excess of 40 percent of all 
  2.14  United States corn exports, 34 percent of soybean exports, and 
  2.15  20 percent of wheat exports; and 
  2.16     WHEREAS, low market prices are caused in part by the 
  2.17  Freedom to Farm Act of 1996; and 
  2.18     WHEREAS, current market loan rates for commodity grains are 
  2.19  inadequate to protect grain farmers from disastrously low market 
  2.20  prices; NOW, THEREFORE, 
  2.21     BE IT RESOLVED by the Legislature of the State of Minnesota 
  2.22  that it memorializes the Congress to repeal the Freedom to Farm 
  2.23  Act. 
  2.24     BE IT FURTHER RESOLVED that the United States Congress 
  2.25  should take necessary measures to increase daily hog slaughter 
  2.26  capacity.  The Canadian government should be asked to limit the 
  2.27  number of hogs sent across the United States border for 
  2.28  slaughter since Canadian processors are working substantially 
  2.29  under capacity. 
  2.30     BE IT FURTHER RESOLVED that United States Congress should 
  2.31  instruct the Department of Agriculture to increase government 
  2.32  purchases of pork and pork products for the school breakfast and 
  2.33  lunch programs and for foreign food assistance programs. 
  2.34     BE IT FURTHER RESOLVED that Congress should instruct the 
  2.35  Department of Agriculture to grant credit forbearance for hog 
  2.36  and commodity grain producers who face an equity or cash flow 
  3.1   crisis this year.  All federal banking and financial 
  3.2   institutions should be urged to work with producer clients 
  3.3   during the crisis. 
  3.4      BE IT FURTHER RESOLVED that the United States Congress 
  3.5   should make the Emergency Disaster Loan Guarantee Program 
  3.6   available to pork and commodity grain producers facing economic 
  3.7   disaster. 
  3.8      BE IT FURTHER RESOLVED that the per-bushel marketing loan 
  3.9   rates for commodity crops be raised to these levels:  corn to 
  3.10  $3; soybeans to $6; wheat to $5; and barley to $3. 
  3.11     BE IT FURTHER RESOLVED that the appropriate committees of 
  3.12  the United States Senate and House of Representatives should 
  3.13  investigate the extent to which the proposed merger between 
  3.14  Cargill, Inc. and Continental Grain Company decreases 
  3.15  marketplace competition for commodity grains. 
  3.16     BE IT FURTHER RESOLVED that the Secretary of State of 
  3.17  Minnesota be directed to prepare suitable copies of this request 
  3.18  and transmit them to the Speaker and Clerk of the United States 
  3.19  House of Representatives, the President and Secretary of the 
  3.20  United States Senate, and to Minnesota's Senators and 
  3.21  Representatives in Congress.