(WASHINGTON, D.C.) – Last night, by a vote of 66-27, the Senate passed an
amendment by Senators Patty Murray (D-Wash.) and Herb Kohl (D-Wisc.) to provide an
additional $600 million for emergency humanitarian food needs in Iraq and address
improper management of the Bill Emerson Humanitarian Trust. The amendment was
adopted as part of an $80 billion Supplemental Appropriations bill to pay for the Iraq
War.
The Kohl- Murray amendment addresses concerns over the Administration’s food aid
policies, including a drastically low estimate of the food assistance needed to feed the Iraqi
people, and improper management of the Emerson Humanitarian Trust. The Bill Emerson
Humanitarian Trust is a food reserve administered under the authority of the Secretary of
Agriculture. This reserve is available to meet emergency humanitarian food needs in
developing countries, allowing the United States to respond to unanticipated food crises
with U.S. commodities.
“Last night, the Senate rejected the Administration’s failed food aid policies,” Murray said.
“The Senate’s action is a major step forward in ensuring that the United States meets its
commitments to the Iraqi people in a way that helps – not hurts – America’s farmers.”
In July and again in September of 2002, the Bush Administration sold wheat from the
Emerson Trust to finance famine relief to southern Africa. While Senator Murray
supported the Administration’s end goal, the process used by the Administration hurt
Washington state. Washington wheat growers were hurt because wheat prices suddenly
fell, and local elevator companies were harmed when their stores of wheat were
dramatically reduced.
On July 11 and again on August 29 2002, Senator Murray wrote to Ann Veneman,
Secretary of Agriculture, to urge USDA to make changes to its process to help rural
businesses and farmers in Washington state.
Despite the concerns raised by Murray and others, last month the Administration
authorized another release of 800,000 metric tons, which has hurt Washington farmers by
further depressing wheat prices.
“The Administration’s sales of wheat from the Emerson Trust has undermined wheat prices
and local businesses,” said Murray. “I will continue to stand up for Washington state
farmers by helping to improve the way we implement food aid.”
The Murray-Kohl amendment:
– Provides an additional $600 million for the Food for Peace program, our nation’s
primary tool for providing humanitarian food aid.
– Requires the restoration of the 800,000 metric tons of commodities released from the Bill
Emerson Humanitarian Trust, which would take the Trust back up to 2.0 million metric
tons. The amendment would not require the purchase of wheat.
– Removes the authority of the Secretary of Agriculture to sell wheat (or other
commodities) out of the Trust to purchase other commodities, a process known as
monetization. The prohibition would remain in effect through the end of the current federal
fiscal year (September 30).
A Conference Committee will now reconcile differences between the House and Senate
versions of the bill.
Senator Murray outlined her concerns over the Administration’s policies earlier in the week
in a joint letter with Senator’s Cantwell (D-Wash.) and Wyden (D-Oreg.)
The Murray, Cantwell, Wyden letter follows:
April 1, 2003
The Honorable Ann Veneman
Secretary of Agriculture
U.S. Department of Agriculture
Jamie L. Whitten Building
1400 Independence Avenue, SW
Washington, D.C. 20250
The Honorable Andrew S. Natsios
Administrator, U.S. Agency for Intl Development
Ronald Reagan Building
Washington, D.C. 20523-1000
Dear Secretary Veneman and Administrator Natsios:
We are writing to express our serious concerns regarding the administration’s handling of
food aid policy. The administration’s liquidation of the Bill Emerson Humanitarian Trust, its
failure to request adequate supplemental appropriations funding to meet our humanitarian
objectives, and its continuing opposition to using the authority granted by Section 416(b)
of the Agricultural Act of 1949 threaten to undermine a food aid system that has helped
millions of people overseas and that enjoys broad support among the American people.
Last summer, on two occasions, the administration sold wheat from the Emerson Trust to
purchase other commodities for critically-needed food aid for Africa. These actions,
combined with an additional sale of wheat from the Commodity Credit Corporation
(CCC) in November and December of last year, drove down white wheat prices in the
Pacific Northwest and created an opportunity for large companies to prey on local
warehouses.
We are concerned that the recent announcement by the administration that it is authorizing
the release of up to 800,000 metric tons (200,000 tons for Africa and 600,000 tons for
Iraq) from the Emerson Trust is already having an adverse effect on prices. It is our
understanding that prices have dropped so much that wheat growers are beginning to
collect loan deficiency payments in Washington state.
Not only did the decision raise concerns for our constituents, it also raised concerns about
the long-term viability of the Emerson Trust. The administration has made no statement,
taken no action, and requested no support from Congress with respect to replenishing the
Trust. If the administration’s liquidation of the Trust continues at its current pace, it will
soon be empty and cease to be an effective tool for emergency humanitarian relief.
This week, the administration sent its request to Congress for supplemental appropriations
for the war in Iraq. As part of the package, the administration requested $200 million for
food aid. It is our understanding from discussions with the Senate Appropriations
Committee and the Senate Agriculture Committee that the actual need may be closer to
$600 million.
We are also concerned about the assumptions the administration is making with respect to
the timeline for providing food aid to the Iraqi people. The administration appears to be
relying extensively on the oil for food program and the use of the existing distribution
network within Iraq to distribute aid. It also assumes a relatively short window when the
United States would need to provide aid. We hope the administration’s positive
assumptions are borne out, but we should be prepared for a less positive outcome.
This challenging and diverse set of circumstances would present fewer difficulties if the
administration was willing to use all of the food aid tools available to it. Unfortunately, the
administration’s refusal to use its authority under Section 416(b) threatens to further
complicate our vital aid to the Iraqi people and exacerbate economic instability for rural
communities and farmers here at home.
We urge the administration to consider the following actions to address these food aid
issues.
First, we urge the administration to request additional and adequate funding to meet our
food aid commitments.
Second, we urge the administration to use its authority under Section 416(b) and the CCC
Charter Act to purchase the types of commodities needed by the people of Iraq. The use
of this authority will temper the negative effects on farm prices and rural economies caused
by the on-going liquidation of the Emerson Trust.
Third, we urge the administration to issue a report to Congress in the near future outlining
the administration’s food aid policy. Congress needs to better understand the
administration’s policy with respect to the Emerson Trust (including whether it intends to
replenish the Trust), how the administration will ensure we retain the long-term ability to
provide emergency international food aid, and to what extent other food aid programs
conducted by USDA and USAID will be a part of our strategy.
Fourth, we urge the administration to promulgate a proposed rule that contains written
procedures for the sale of commodities from the Emerson Trust. We believe procedures
should increase transparency and seek to reasonably mitigate the effect of sales from the
Trust on farm prices and rural businesses.
We look forward to working with you to ensure that our food aid policies continue to meet
our humanitarian and diplomatic objectives, as well as the needs of U.S. farmers and rural
businesses.
Sincerely,
Patty Murray,
Maria Cantwell,
Ron Wyden
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