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Extension of Remarks Provision
to Help Preserve Veterans’ Family Farms Included in Mr. Speaker, in the 106th
Congress, I introduced H.R. 5271, the “Veterans’ Family Farm
Preservation Act”, to make it possible for more wartime veterans and
their survivors to qualify for pension benefits from the Department of
Veterans Affairs (VA) without being forced to sell their family farms and
ranches. I am pleased that
the provisions of this legislation have been included in the Veterans’
Opportunities Act of 2001, H.R. 801, a bipartisan bill introduced on
February 28, 2001. This
legislation will also benefit low-income veterans who seek to obtain
health care from VA.
The productivity of America’s family farms is undisputed. Family farms and ranches feed our Nation.
Family members and unpaid workers account for 70% of farm labor in
the United States. While
America’s family farmers and ranchers are unmatched in their
productivity, they have little or no control over many factors which
determine the economic results of their labor.
Veterans who have gone in harm’s way and placed their lives on
the line by serving our nation in the Armed Forces should not be asked to
relinquish their family farm in order to qualify for veterans’ benefits.
Unfortunately, that is what is occurring today.
H.R. 801, which House Veterans Affairs Committee Chairman Chris
Smith and I introduced together with J.D. Hayworth, Benefits Subcommittee
Chairman and Ranking Democratic Subcommittee Member Silvestre Reyes,
includes provisions to address this problem.
I urge Members to support this bipartisan effort. Pension benefits administered by the Department of Veterans Affairs (VA) are payable to wartime veterans who are totally and permanently disabled due to a non-service connected medical condition. A small, but important number of these disabled wartime veterans own family farms or ranches, which provide the livelihood for their families. Most family farms in the United States are very small. Over 75% of family farms have less than $50,000 in gross annual sales. After deductions for costs of operating the farm or ranch, the net income of the family farmer is much lower. Farmers receive an average of 20 cents for every dollar of produce sold. In 1995, the average net farm income for very small farms was $510. The average net farm income for small farms with gross sales between $50,000 and $250,000 averaged $14,335. Clearly most family farmers have modest annual income.
In determining eligibility for pension benefits, VA is required to
consider not only the family income, but also the family’s “net
worth.” Currently, unless
VA determines that the land can be sold at “no substantial sacrifice”,
the value of farm and ranch land is included in determining net worth.
Some veteran farmers are “land rich.”
While having little or no liquid assets, the value of their land
makes their “net worth” appear larger on paper.
Family farms are important not only for the food and fiber they
produce, but also for the values they represent.
Family farms should not be considered as simply substitutes for
liquid bank accounts or other liquid assets.
In good years, family farms and ranches provide an adequate income. In bad times, adverse crop conditions or illness, the income
and liquid resources of family farmers and ranchers are quickly depleted.
Wartime veterans have made a substantial sacrifice on behalf of our
Nation by serving in the Armed Forces.
We should not ask them to sacrifice their family farms in order to
receive the assistance they have earned by their wartime service. I believe that an operating family farm can never be liquidated without substantial sacrifice on the part of the veteran. It is never reasonable to require a veteran to sell his or her means of future livelihood in order to obtain pension benefits or VA health care. If the farm is sold, the assets which in future years can be expected to generate income for the veteran and the veteran’s dependents, are permanently lost. Under H.R. 801, farm and ranch land owned by the veteran and the veteran’s dependents would be excluded in determining net worth. The bill would also exclude land used for similar agricultural purposes, such as timberland, Christmas tree farms, or horticultural purposes. During the past century, the number of family farms in our country has declined dramatically. When a veteran is required to sell his or her farm in order to receive necessary VA assistance, another family farm may be lost forever. No veteran should be called on to make this additional sacrifice. I urge my colleagues to support H.R. 801. America’s family farmers and ranchers deserve the relief which this legislation will provide. |