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Veterans’ Family Farm Preservation Act EXTENSION OF REMARKS September 26, 2000 Mr. Speaker, on September 25, 2000, 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. 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 very 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. The Veterans’ Family Farm Preservation Act addresses this problem. 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 farms with gross sales between $50,000 and $250,000 averaged $14,335. Clearly most family farmers have modest annual farm 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 poor." While having little to no liquid assets, the value of their land, makes their "net worth" appear larger on paper. On May 25, 2000, Senator Grassley and I wrote to VA’s Under Secretary for Benefits, Joseph Thompson, requesting that he recognize the unique nature of a family farm and take immediate steps to address the need for a fair evaluation of the eligibility of our Nation’s family farmers for veteran’s pension benefits. On June 27, 2000, Mr. Thompson replied indicating that VA viewed a family farm in the same light as interest-producing bank deposits or securities. Family farms are important not only for the food and fiber they produce, but also for the values they represent. Family farms and should not be considered as simply substitutes for liquid bank accounts or other liquid assets. In good years, family farms and ranches provides 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, is permanently lost. The Veterans’ Family Farm Preservation Act would exempt farm and ranch land owned by the veteran and the veteran’s dependents from being counted 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. 5271, the Veterans’ Family Farm Preservation Act. America’s family farmers and ranchers deserve no less. Mr. Speaker I request the letter which Senator Grassley and I sent to the Honorable Joseph Thompson, Under Secretary for Benefits of the Department of Veterans Affairs, concerning VA’s valuation of farm lands and Mr. Thompson’s response be included in the Congressional Record at this point. |