EMERSON TELLS PANEL CLINTON'S PLAN WOULD HURT STATE FARMERS

U.S. Rep. Bill Emerson, the ranking Republican member of the House Agriculture Committee, told the General Farm Commodities Subcommittee this week that President Clinton's economic package is detrimental to agriculture.

"We have proved to the rest of the nation that agriculture is willing to pull its share of the deficit-reduction load; however, I now fear that President Clinton's economic plan sacrifices the economic health of our rural towns and communities to pay for increased spending in other areas of the federal budget," Emerson said.

"The administration is prescribing a serious blow to the viability of American agriculture and jobs."

In his testimony, Emerson pointed out that the proposed BTU energy tax, which does not exempt ethanol, and the barge fuel tax would spin out to have devastating consequences on farmers, agriculture producers, related industries, rural communities, and jobs in general.

Emerson suggested the proposed tax increases could ultimately cost more jobs in the agriculture area than the package is intended to create.

Emerson said the taxes will only drive up production costs for farmers.

"When Missouri farmers are trying to squeeze a nickel's worth of profit out of a bushel of grain, a bale of cotton, or a pound of beef or pork, increasing the cost of production through more taxes just won't pay the bills," said Emerson.

"Adding another tax burden on the shoulders of farm producers and related farm industries won't balance the budget; it will only make a bad situation worse. Greater tax burdens - particularly in the nature of an energy tax - only rob from those hard-working men and women who spend their lives providing the food and fiber for the people of this nation."