Washington, D.C. – U.S. Senator Mike Enzi, R-Wyo., is seeking a solution to help stabilize the financial well-being of many seed and forage producers in Wyoming.

Enzi and other colleagues sent a letter last week to Senators Tom Harkin and Richard Lugar, the chairman and ranking member of the Senate Agriculture Committee, urging them to retain language in the final Farm Bill that would extend the beginning of the repayment period another 36 months for emergency loans to seed and forage producers negatively affected by the bankruptcy of Agribiotech (ABT).

ABT, a large handler of turfgrass, alfalfa and clover seed, filed for bankruptcy in 2000 leaving thousands of small farmers without payment for their crops. Congress provided for emergency loans for impacted growers and set repayment for after 18 months or at the conclusion of the bankruptcy proceedings.

Enzi said legal proceedings have not been resolved and the time is drawing near for repayment of many of the loans which could lead to financial hardship for many seed and forage producers.

"Because the markets for turf and forage seed have not fully recovered, many of these growers would be put in a precarious financial position if these loans were to come due," wrote Enzi. "It would be especially unfortunate given that there is the potential that these growers would be able to recover some of their losses from ABT and, in turn, repay a majority of the federal loans."

A copy of Enzi's letter is included below.

March 11, 2002

Honorable Tom Harkin	Honorable Richard Lugar
Committee on Agriculture	Committee on Agriculture
United States Senate	United States Senate
Washington, D.C. 20510	Washington, D.C. 20510

Dear Mr. Chairman and Senator Lugar:

As you prepare for the House-Senate Conference on the Farm Bill, we are writing to urge you to retain language related to emergency loans provided to seed and forage producers adversely impacted by the Agribiotech (ABT) bankruptcy.

Agribiotech was one of the largest handlers of turfgrass seed, alfalfa seed, and clover seed in the nation prior to its abrupt bankruptcy filing early in 2000. The dissolution of the company, and the associated ongoing legal process, left thousands of small farmers without payment for their crops, which they had already delivered. Recognizing the widespread financial damage to thousands of farm families across the country that would result from this bankruptcy, Congress provided for emergency loans for the impacted growers as part of the Risk Management for the 21st Century Act. These loans initially called for repayment after 18 months or upon conclusion of the bankruptcy proceedings, whichever comes sooner.

Unfortunately, the bankruptcy proceedings have not yet been resolved, and growers are nearing 18 months since the original disbursement of these loans by the Farm Service Agency. Because the markets for turf and forage seed have not fully recovered, many of these growers would be put in a precarious financial position if these loans were to come due. It would be especially unfortunate given that there is the potential that these growers will be able to recover some of their losses from ABT and, in turn, repay a majority of the federal loans – if they have enough time to see this bankruptcy process through.

For these reasons, we support the language, adopted by the Senate, that would delay the automatic repayment period by 36 months. All other terms of the original loan authorization remain the same, leaving the conclusion of the bankruptcy proceedings as a potential trigger for earlier repayment. Given the generosity the Congress has shown to the major program commodities in the Farm Bill, we believe this fiscally modest amendment – likely impacting the federal treasury by less than $3 million – would help stabilize an important, but often overlooked segment of American agriculture. We strongly urge you to retain this language in the final conference report.

Thank you in advance for your consideration, and we look forward to working with you on behalf of America's seed and forage producers.