Carl Levin: "Boosting Farms, Cracking Down on Speculators"

June 2, 2008 -- With the summer harvest season right around the corner, and roadside produce stands popping up at country intersections across the state, the end of spring is a mouthwatering time to think about Michigan agriculture.

When, after months of delays, Congress recently passed the Food, Conservation and Energy Act of 2008, also known as the Farm Bill, the season was appropriate. This critical legislation – which was passed over a presidential veto – will offer a boost to the Michigan farmers who sell their produce locally and who send Michigan-grown agriculture across the country. The bill will also crack down on speculators who are driving high energy prices, and offer much-needed support for conservation, biofuels and nutrition programs.

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This Farm Bill provides support for producers of specialty crops including apples, asparagus, beans, blueberries and cherries that are so important to Michigan farmers and Michigan’s economy. This support will help ensure that our nation can eat nutritiously with a dependable supply of U.S.-grown fruits and vegetables. The Farm Bill also provides support for traditional crops, like corn, wheat and soybeans, which are also a major part of Michigan agriculture.

One critical reform that I am very pleased with is the inclusion of the Close the Enron Loophole legislation that my Permanent Subcommittee on Investigations (PSI) first began work on years ago. In 2000, a law was enacted that included a little-noticed provision that exempted Enron and others from oversight in some trading markets for energy. Starting in 2003, PSI issued a series of reports that revealed that these unregulated markets allow excessive speculation that has been driving up the price of energy. In 2006, we estimated that as much of $20 of the price of a $70 barrel of crude oil was added due to speculation.

With oil prices topping $130 a barrel, this Farm Bill finally closes the Enron loophole. It will help put a cop back on the beat in all U.S. commodity markets, protecting against price manipulation and excessive speculation that have driven up the prices consumers pay.

High energy prices underscore the need to reduce our nation’s reliance on foreign oil. The Farm Bill provides incentives to encourage the continued development of biofuels, and to encourage increased production of renewable fuels. It also improves upon a number of important conservation programs to protect and improve soil and water quality, prevent erosion and preserve and restore habitats.

All of these important measures contributed to the overwhelming bipartisan majorities that passed the Farm Bill and then overrode President Bush’s veto. While the bill is not perfect, the combination of improved assistance for specialty crops, enhanced conservation spending, investments in nutrition and renewable energy programs, and the inclusion of provisions to close the Enron loophole make this year’s Farm Bill a commendable piece of legislation that will benefit Michigan citizens.

Source: Senator Carl Levin