Congressional Record—House H4474
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H4474 CONGRESSIONAL RECORD — HOUSE July 10, 2002 that legislation before this Chamber I understood this principle long ago. jump off first and with all the treas- next week. I understood how forfeitures and cer- ures. I would like to discuss my and many tificates became literally overnight This is not a simple problem about a others’ beliefs that a great inequity ex- methods to circumvent payment lim- few bad apples. The problems are sys- ists in our farm policy that has been its. I introduced the reform of farm temic, and the accounting practices of passed in the farm bill, and the fact subsidy payments during the House de- America must be changed so we will be that we have a chance to correct that bate on the farm bill last October; how- able to restore our economic health. inequity in this appropriations bill. ever, our farm policy, driven by our ag- We must support legislation like that This is not a new topic in Congress ricultural committee leadership favors in Senator SARBANES’ bill, legislation and, as well, it is not a new topic on the certificates that can be used as the that will provide real corporate respon- the floor of the House. As a farmer and loophole or end run to those very large sibility. His bill calls for a strong, inde- a former administrator of farm pro- farms. pendent board to oversee the auditing grams at USDA, as a member of the The Senate, however, successfully of public companies, assures the inde- Committee on Agriculture, I, like most implemented reasonable payment lim- pendence of auditors, and provides for of us, know the importance of pro- its and curtailed the unlimited use of reform that will protect investors. viding help to our family farms. The generic certificates by a vote of 66 to And in the House we must support inequity of farm subsidies, because 31. the gentleman from New York’s (Mr. there is no limit on price support sub- Then the farm bill came to con- LAFALCE) bill, H.R. 4083, the Corporate sidy guarantees, results in giving the ference, and on April 18, after days of Responsibility Act of the Year 2002. His very large farmers a greater advantage. stonewalling and nonresolution, I in- bill deals directly with the conduct of That means they have price protection troduced a successful motion to in- company officers and restores cor- on all of the total acreage of the par- struct farm bill conferees to accept porate credibility. Business executives ticular crops that they grow that were real subsidy payment limitations like must aspire to a higher business ethic subsidized by the farm program. That the Senate had and limit the unbridled because investors and employees are means that we encourage more produc- use of generic certificates; and a bipar- entrusting them with, oftentimes, tion and that means that the smaller tisan majority of the House over- their entire life savings; and business farmers have a harder time surviving whelmingly passed that motion by a executives who break the rules must be and that means that the larger farmers vote of 265 to 158. It was ignored in con- punished. tend to buy out the smaller farmers. ference, and I am still working with The first step in restoring our Na- While reasonable limits have been set Senator GRASSLEY. tion’s confidence would be for the for direct price support payments to Tomorrow, when the Committee on President, the President himself, to re- farmers, these limits are meaningless Appropriations meets to discuss this lease records of the SEC’s 1992 inves- to large or corporate farms. Why? Be- bill, I hope they will look at the effects tigation of his trading in Harken En- cause of the creative use of generic cer- on the small farmers, the traditional ergy shares. In fact, we can talk about tificates. Certs, as they were called, family-size farms, and have some kind markets, economies, capital, and finan- were introduced in 1999 as an amend- of a payment limitation when this bill cial systems until we are blue in the ment to the 1996 farm bill. comes to the floor next week. face, but what is important to remem- b 1700 f ber is that when a corporation fails, CORPORATE RESPONSIBILITY workers lose their jobs, families hit They are negotiable certificates hard times, and children suffer. which CCC, the Commodity Credit Cor- The SPEAKER pro tempore (Mrs. The American economy is built on poration, exchanges for a commodity CAPITO). Under a previous order of the confidence and an expectation of fair- owned or controlled by CCC. They were House, the gentlewoman from Cali- ness. If one works hard and plays by designed to let producers receive the fornia (Ms. WOOLSEY) is recognized for the rules, they deserve to share in a se- price support subsidy rather than for- 5 minutes. cure future. Unregulated business prac- feit their crop to the government, but Ms. WOOLSEY. Madam Speaker, the tices have allowed private-sector titans it gives that farmer a loophole, an end strength of our United States economy to act irresponsibly, and personal gain run, if Members will, to have the same is built on the honesty, integrity and has tarnished the reputation of the price supports even though in the farm transparency of our financial institu- American market as well as the con- bill we were told that there are limits tions. But right now the confidence of fidence in our economy. of $75,000 on price support payments. the American public and international There must be zero tolerance for cor- But the fact is that there is no limit on investors is truly shaken. porate corruption. that larger farm that owns whatever, We must restore confidence in our 40, 50, 60,000 acres, because he can end economy before it is rocked any fur- f up receiving certificates that end up ther so we can continue to attract cap- The SPEAKER pro tempore (Mr. giving that particular landowner the ital investment for the future health BOOZMAN). Under a previous order of same value as the rest of the price sup- and prosperity of our economic system. the House, the gentlewoman from New port loans that are subject to the The spate of deregulation over recent York (Mrs. MALONEY) is recognized for $75,000 limitation. years has left us with a system that 5 minutes. Sadly, farmers quickly figure out the benefits the powerful and the wealthy (Mrs. MALONEY of New York ad- loophole in the use of certificates that above all others. We cannot allow this dressed the House. Her remarks will allows these unlimited price supports to continue. appear hereafter in the Extensions of on the crops that a farmer grows. The Weakened Federal regulation of ac- Remarks.) more land one farms, the more certifi- counting practices has allowed cor- f cates one can purchase, bypassing any porate greed to run rampant and has limits that are otherwise existing in led to failure of some of our very larg- TRIBUTE TO BISHOP VICTOR the farm bill in current law. The avail- est corporations and businesses. Enron, CURRY, PASTOR OF NEW BIRTH ability of this creative mechanism to Global Crossing, Owens Corning, BAPTIST CHURCH bypass limits encourages overproduc- ImClone, Merrill Lynch, Arthur Ander- The SPEAKER pro tempore. Under a tion and, as I mentioned, the buying up sen, Tyco, WorldCom, the list grows previous order of the House, the gentle- of land from smaller farms. every single day. When these big busi- woman from Florida (Mrs. MEEK) is This is the acquisition of as much nesses fail, thousands of employees lose recognized for 5 minutes. land as possible to maximize payments their jobs and pensions while, Mrs. MEEK of Florida. Mr. Speaker, I from the government, and I think the undeservedly, many of the corporate stand here in the well of the Congress bottom-line request is, why should 17 executives become rich. They become of the United States to pay distinct percent of the farms in America get not only millionaires, they become bil- honor and tribute to one of Miami’s over 80 percent of the commodity pay- lionaires. These captains of industry do young great leaders, Bishop Victor T. ments? not stay with the sinking ship. They Curry. VerDate jun 06 2002 01:13 Jul 11, 2002 Jkt 099060 PO 00000 Frm 00044 Fmt 4634 Sfmt 0634 E:\CR\FM\K10JY7.111 pfrm15 PsN: H10PT1 July 10, 2002 CONGRESSIONAL RECORD — HOUSE H4475 Victor T. Curry is now pastor of a their children, fully cognizant and turned to Raleigh, opened a business, New Birth Baptist Church in Miami. I genuinely confident that they would his family business, and started to get want to evoke the same sentiments of learn from him the pursuit of academic involved in politics. joy and gratitude that the 10,000 mem- scholarship and the desire for personal He was one of the leaders in that bers of the New Birth Baptist Church excellence under the tenor of a faith- area. As I said, he was quiet spoken, al- in Miami lifted up to Almighty God based, conscientious commitment and ways well dressed, of a courtly manner, this past weekend at the inauguration rigorous discipline. and keenly intelligent. Clarence was a of the New Birth Cathedral. With the recent inauguration of the man for his time. He understood what Mr. Speaker, Bishop Curry truly rep- New Birth Cathedral, our community needed to be done. He was a man of resents the best and noblest of our is deeply touched and will benefit good will who attracted other people of community.