BREAKFAST MEETING WITH SECRETARY YEUTTER WEDNESDAY, FEBRUARY 28, 1990 S-230 - 8:30 A.M. Dole (check mark) Simpson (crossed out) Bond (check mark) Boschwitz (check mark) Cochran (check mark) Domenici (check mark) Durenberger - arrive at 9:00 Gorton (check mark) Grassley - will be late (check mark) Helms (check mark) Lugar (check mark) Nickles (check mark) Pressler (check mark) Symms - tentative yes (tentative crossed out; check mark) Secretary Yeutter (check mark) Gene Bailey, Assistant Secretary of Agriculture for Congressional Affairs (check mark) handwritten names on bottom of page: Chuck Connor Dave Spears former Senator Percy BREAKFAST MEETING WITH SECRETARY YEUTTER WEDNESDAY, FEBRUARY 28, 1990 S-230 - 8:30 A.M. Dole Simpson Bond Boschwitz Cochran Domenici Durenberger - arrive at 9:00 Gorton Grassley - will be late (only name with no check mark) Helms Lugar Nickles Pressler Symms - tentative yes (tentative crossed out) Secretary Yeutter Gene Bailey, Assistant Secretary of Agriculture for Congressional Affairs handwritten: 18 Chuck Connor handwritten table sketch at bottom of page: left head of table: Dole top long side of table: Lugar, Boschwtiz, Bond, Gorton, Domenici, Durenberger, Pressler, Conner right head of table: Spears, Bailey bottom long side of table: Yeutter, Cochran, Helms, Nickles, Simpson (crossed out), Symms, Grassley FEBRUARY 26, 1990 TO: SENATOR DOLE FROM: DAVE SPEARS SUBJECT: BREAKFAST WITH SECRETARY YUETTER EACH OF THE PARTICIPATING SENATORS STAFF HAVE BEEN CONTACTED TO SEE IF THERE ARE ANY PARTICULAR ISSUES THAT MAY COME UP AT THE BREAKFAST. IN ADDITION I HAVE SUMMARIZED THE CURRENT STATUS OF SEVERAL KEY ISSUES. THE INFORMATION IS SUMMARIZED AS FOLLOWS: ADMINISTRATION PROPOSALS ESSENTIALLY ALL COMMODITY GROUPS HAVE BACKED AWAY FROM THE NCA CONCEPT INCLUDING NAWG. EVERYBODY LIKES THE CONCEPT ON A INDIVIDUAL FARMER LEVEL BUT SITES FEARS OF MASSIVE SHIFTS IN PRODUCTION. HOWEVER NO GROUPS HAVE OFFERRED A SUBSITUTE. THE ADMINISTRATION'S PROPOSALS ON FLEXIBILITY SAVES APPROX. $200 MLN. OFF BASELINE BY SWITCH OF CORN ACRES TO SOYBEANS. PRIVATELY THEY WILL SAY THE PROPOSED $1.5 BLN. SAVINGS IS NOT REALLY POSSIBLE IN FY '91 BASIC METHODS TO ACHIEVE THE BUDGET CUTS: 1. LOWER TARGET PRICES 2. RAISE LOAN RATES 3. MEANS TESTING 4. NO CROP INSURANCE - DISASTER PROVISION WILL SCORE $0 KEY ISSUES CONSERVATION/ENVIRONMENTAL ISSUES -- I AM CONTINUING TO MEET WITH FOWLER'S STAFF AS WELL AS ADMINISTRATION OFFICIALS ADDRESSING THE COMMODITY GROUPS' PROPOSALS. IT APPEARS THAT A COMPROMISE PACKAGE COULD BE PULLED TOGETHER THAT WOULD ADDRESS THE ADMINISTRATION PROPOSALS, DOLE/ECARP, AND THE COMMODITY PROPOSALS. A DOLE/FOWLER BILL COULD POTENTIALLY GET 14-15 VOTES ON THE AG. COMMITTEE. SENATOR BOND WILL INTRODUCE A CONSERVATION TITLE THAT IS VERY SIMILAR TO A POTENTIAL COMPROMISE PACKAGE OUTLINED ABOVE. HOWEVER, HE HAS STATED THAT HE WILL INTRODUCE HIS OWN CONSERVATION TITLE. THIS IS DUE TO THE RELATIONSHIP WITH FOWLER. BOND WILL LIKELY VISIT WITH YOU ABOUT THE POSSIBILITY OF SUPPORTING BOTH FOWLER AND BOND AND ASSIST IN PULLING TOGETHER A COMBINED PACKAGE. LUGAR'S STAFF ARE ENCOURAGING THAT THERE NOT BE ANY CONSERVATION OR ENVIRONMENTAL BILLS INTRODUCED. THEY WOULD LIKE TO SEE A COMPROMISE DEAL BE STRUCK WITH THE ENVIRONMENTAL GROUPS. THIS MAY OR MAY NOT BE A POSSIBILITY. TO DATE, THE ENVIRONMENTALISTS HAVE NOT DEMONSTRATED ANY WILLINGENSS TO SIT DOWN AND REACH A COMMON GROUND. THERE IS A SUSPICION EXPRESSED BY SEVERAL STAFF-PERSONNEL THAT THERE COULD BE A DEAL CUT BETWEEN LUGAR AND LEAHY. THE SUSPICION IS THAT LUGAR HAS FREE HAND WITH COMMODITIES IF LEAHY COULD HAVE THE ENVIRONMENTAL ISSUES. CERTAINLY A DOLE/FOWLER BILL WITH 14-15 VOTES HURTS LEAHY. ESSENTIALLY AT SOME POINT A DECISION WILL NEED TO BE MADE WHETHER TO ADDRESS THE CONSERVATION/ENVIRONMENTAL ISSUES EARLY ON OR WAIT LATER IN THE FARM BILL DEBATE. A DOLE/BOND/FOWLER COMPROMISE BILL WITH A VAST MAJORITY OF AG. COMMITTEE SUPPORT COULD SET A FAVORABLE STAGE AND MINIMIZE THE EVENTUAL FLOOR DEBATE ON ENVIRONMENTAL ISSUES. HOWEVER, IT ALSO STAKES OUT A POSITION IN THE EARLY STAGES. THE GENERAL CONSENSUS OF THE AG. COMMITTEE AND ADMINISTRATION IS TO GET OUT IN FRONT AND SET THE STAGE. CROP INSURANCE - NO EASY ANSWERS - CURRENT IDEAS ARE ALL OVER THE BOARD. ESSENTIALLY TO MAKE A CROP INSURANCE WORKABLE AND ACTUARILLY SOUND THERE ARE TWO REAL OPTIONS: 1. MANDATORY PROGRAM - IF IN THE PROGRAM-BUY CROP INSURANCE 2. SWITCH TO AN AREA OR COUNTY YIELD PLAN - DO NOT INSURE INDIVIDUAL PRODUCERS THE OTHER OPTION IS TO SWITCH TO AN ANNUAL DISASTER PROGRAM. FmHA - STAFF IS WORKING ON A REFORM PACKAGE TO ENCOMPASS THE MAJORITY OF THE ADM. VIEWS. STAFF IS CURRENTLY WORKING OUT DIFFERENCES WITH CONRAD. LUGAR/LEAHY ARE GENERALLY SUPPORTIVE OF CHANGES TO STOP ABUSE OF SYSTEM. SENATOR ISSUES LUGAR -- WILL INTRODUCE A FARM BILL LATER THIS WEEK OR EARLY NEXT WEEK. THE BILL WILL ESSENTIALLY ENCOMPASS THE ADMINISTRATION'S GREEN BOOK WITH A FEW DISCLAIMERS (CROP INSURANCE AND CONSERVATION). IT WILL INCLUDE FROZEN TARGET PRICES AND LOWER ARP CEILINGS. FINAL COSTS WILL BE SLIGHTLY HIGHER THAN BASELINE OF $11.2 BILLION. COCHRAN -- PRIMARILY INTERESTED IN COTTON, RICE, AND OILSEEDS. COCHRAN IS WORKING WITH PRYOR ON A MARKETING LOAN CONCEPT FOR OILSEEDS. ADDITIONAL FLEXIBILITY AND INCOME SUPPORT FOR SOYBEANS. LITTLE CHANGE FOR COTTON AND RICE. BOSCHWITZ -- OWN FARM BILL. LIKELY TO ADDRESS FLEXIBILITY CONCEPTS WITHIN THE ADMINISTRATION PROPOSAL. BOND -- KEY ISSUES INCLUDE CONSERVATION, CROP INSURANCE, AND GRAIN QUALITY. HE WILL DO HIS OWN CONSERVATION TITLE DUE TO LACK OF INTEREST BY FOWLER TO WORK TOGETHER. FOWLER/COMMODITY GROUPS AND BOND ARE FAIRLY CLOSE. COULD POTENTIALLY BE MERGED. DOMENICI -- CONCERNS WITH THE LACK OF SPECIFICS OF BUDGET CUTS IN THE ADMINISTRATION'S PROPOSALS. EXPRESSED AN INTEREST IN WHEN THE DETAILS MAYBE AVAILABLE.. PAROCHIAL ISSUES OF INTEREST ARE WOOL AND PEANUT PROGRAMS. PRESSLER -- INTERESTED IN CHANGING THE SODBUSTER AND SWAMPBUSTER PROVISIONS TO MAKE THE PENALTY COMMENSURATE WITH THE VIOLATION. WILL SUBMIT CONCERNS REGARDING THE HONEY PROGRAM TO THE SECRETARY AS WELL AS QUESTIONS REGARDING A CRP SIGN-UP IN 1990. GORTON -- CONCERNED THAT THE ADMINISTRATIONS PROPOSAL OFFERS TOO MUCH FLEXIBILITY. FLEXIBILITY IS LIMITED IN WASHINGTON STATE AND HIS PRODUCERS MIGHT SUFFER FROM ADVERSE PRICE SWINGS DUE TO SIGNIFICANT CHANGES IN CROP BASES IN OTHER AREAS. BREAKFAST MEETING WITH SECRETARY YEUTTER WEDNESDAY, FEBRUARY 28, 1990 Dole Simpson - yes Cochran (handwritten) Domenici - standard (handwritten) Suggested Senators to invite: Lugar (handwritten: ok; eggs fruit yogurt (no bacon)) Helms (crossed out) Cochran (handwritten: OK) Boschwitz (crossed out; handwritten: OK, oatmeal, fruit cup, muffin) Bond (crossed out; handwritten: wcb) McConnell (crossed out; handwritten: NO) Grassley (crossed out; handwritten: wcb; wcb late no breakfast) Kasten Pressler (crossed out; handwritten: ok; hot cereal oatmeal, fruit, coffee) Domenici (crossed out; handwritten: ok) Gorton (handwritten: wcb) Wilson (handwritten: wcb) Nickles (crossed out; handwritten: wcb Linda) handwritten names: Boschwitz Pressler Helms - standard NICKLES Garn (crossed out) - 42934 SUSAN (crossed out and replaced with Meredith) - w.c.b. NO Burns (crossed out) - 42644 PATTI - wcb NO Symms - 46142 GAY - w.c.b. Hatfield - NO Durenberger - arrive 9:00 handwritten at bottom of page: NICKLES -- fruit, bran cereal, OJ large United States Senate WASHINGTON, D.C. 20510 (entire page handwritten) To - Joyce From - Dave Comm. Lugar Helms Cochran Boschwitz Bond McConnell Dole Nov. Comm Grassley Kasten Pressler Domenici 6 4=10 Add'l Gorton Wilson Nickles 8 5=13 entire page handwritten: Wednesday, February 28, 1990 8:30 a.m. S-230 Secretary Yeutter Gene Bailey, Congressional Affairs Dole Simpson ok