The payments, which will be made at 85 percent of the 2000 AMTA rate, were expected to begin arriving in farmers’ mail boxes shortly after the president signed the bill on Aug. 13, according to Veneman.

“It’s necessary for our ranchers and our farmers,” the president said during the signing ceremony for the “The Crop Year 2001 Agricultural Economic Assistance Act,” which was held at his ranch near Crawford, Texas. “A lot of people make their living on the farm and on the ranch.”

The secretary, who was touring the Farm Service Agency offices in Lubbock, Texas, on Aug. 14, announced that USDA would begin issuing about $5 billion in supplemental AMTA payments to 1.4 million producers that day.

The payments were expected to include $4.6 billion for supplemental market loss assistance payments to producers receiving a 2001 Agricultural Market Transition Act or AMTA payment and $423 million in supplemental payments to 2000-crop oilseed producers.

She said that $84.7 million in payments to cottonseed producers and first handlers of the 2000 cottonseed crop would be issued on Sept. 7 and $54 million for producers of quota or additional peanuts who received a payment for the 2000 crop year on Sept. 10. Another $129 million in payments were to be mailed to tobacco producers on Sept. 18.

According to the budget resolution Congress passed last spring, the emergency assistance funding had to be distributed to farmers no later than Sept. 30 or the end of the government’s fiscal year or they could not be disbursed.

On the day the president signed the legislation, Sen. Tom Harkin, chairman of the Senate Agriculture Committee, was saying the Senate might revisit parts of the $7.5 billion assistance bill he wanted to pass when it returns from its August recess.

Sen. Harkin has said the 2001 Economic Assistance Act was “totally inadequate to meet the needs of our farmers.”

Many farmers received financing for the 2001 crop, based on the premise they would receive an additional AMTA payment at 1999 rates. Some analysts have said that the combination of low prices and lower AMTA payments could cause repayment problems for producers this fall.

The legislation also provides for a $500,000 grant to each state and $1 million to Puerto Rico to promote agriculture. Additionally, each state will share in $133.4 million in grants in amounts that represent the proportion of the value of specialty crop production in the state.

e-mail: flaws@primediabusiness.com.