Craig Moves To Counter Clinton Veto Senator Says Measure On Sale Of Ag Plants Would Help Farmers

At the urging of Idaho farmers, Sen. Larry Craig has introduced legislation disapproving President Clinton’s line-item veto of a measure designed to help farmer-owned co-ops buy agricultural facilities.

The president last month vetoed a measure designed to enable the purchase of Amalgamated Sugar Co. by sugar beet growers. President Clinton’s first use of his line item veto power struck at the business dealings of billionaire Harold Simmons of Texas.

The influential Dallas businessman, who has showered more than $1 million on GOP candidates, was linked with a provision in the budget bill that would provide tax relief for the sale of the sugar beet processing plants.

In vetoing the agribusiness provision Aug. 11, Clinton didn’t single out Simmons by name.

“This provision would have allowed a very limited number of agribusinesses to avoid paying capital gains taxes, possibly forever, on the sales of certain assets to farmers cooperatives,” the president said. “And it could have benefited not only traditional farm co-ops but giant organizations which do not need and should not trigger the law’s benefits.”

Congress estimated the provision would cost $84 million over five years because other companies would take advantage of the tax break. The joint venture was completed in January when a cooperative of Northwest sugar beet growers bought Amalgamated Sugar Co. of Ogden, Utah, the nation’s second-largest processor of sugar beets with three plants in Idaho and one in Oregon. Simmons sold Amalgamated to the 2,000-farmer cooperative for about $266 million in January.

In a news release Wednesday, Craig said the veto created an uproar among Idaho farmers.

“The legislation would have been a big help to them in their efforts to remain competitive. Given the strong public reaction against the veto, I’m sure the president’s had second thoughts. Farmers were clearly not given a fair shake,” Craig said.

Craig also introduced legislation amending federal labor laws to allow irrigation companies to be exempt from overtime requirements if at least 90 percent of the water being delivered is used for agricultural purposes.

Current law requires that all of the water be used for agricultural purposes to qualify for the overtime exemption.

Craig said the Department of Labor’s interpretation is not what Congress intended, since it’s almost unavoidable that a small portion of the water delivered to farm users goes for other uses.