National Farmers Union

National Farmers Union
400 Virginia Avenue, S.W., Suite 710
Washington, D.C. 20024
Phone (202) 554-l600
STATEMENT OF CY CARPENTER, PAST PRESIDENT OF THE NATIONAL FARMERS UNION, ON BEHALF OF THE NATIONAL FARMERS UNION, SUBMITTED FOR THE WHITE HOUSE CONFERENCE ON SOCIAL SECURITY, WASHINGTON, D.C., DECEMBER 8,1998

On behalf of the 300,000 families who are members of the National Farmers Union, we wish to thank you for holding this meeting. We recognize that reforming and strengthening Social Security is a very complex issue--too complex for National Farmers Union or any one entity to try to offer full-scale solutions. However, it is vital that we reestablish with both elected officials and the public, the underpinning security of the Social Security program. Our government's responsibility for maintaining Social Security is no less important than our similar responsibility for maintaining full faith and credit in our monetary system.
Further, while we recognize that Social Security has the responsibility to serve all, we wish to direct our attention to the area with which we are most familiar- its impact on farm families.
The nature of farming is such that individuals in agriculture, particularly those who are in the age range that have retired, have paid minimally to Social Security. Farmers do not pay themselves wages. This is especially true of farm women, who have certainly contributed to our economy, but in some cases, have not even established eligibility to receive Social Security. Their contribution has been enormous, and they should not be denied the opportunity to enjoy the benefits of Social Security.
Farming is one of the most dangerous occupations. Accidental deaths and injuries have resulted in a disproportionate number who need Social Security income, and in many cases, it may serve as their primary or only source of income. This population is especially vulnerable to changes in Social Security payments or eligibility requirements.
Social Security is identified by many as an entitlement. Yet, an entitlement is far more than just the money that has been paid into the system. Its underlying principle is that those persons who helped build our economy and society are entitled to share in its success. The quality of life that we enjoy are the result of the labors of those who have built our country, and should be shared by all, irrespective of the amount they paid in to Social Security.
Farmers have provided an abundance of food at below parity--the formula established by Congress to provide a measure of what the farming segment of society receives--for their labor, for a full generation. Any alteration of Social Security that would reduce their retirement, after contributing a lifetime of labor to feed our nation and others, is totally unacceptable.

The present economic situation in rural America underscores this contribution. Farmers are now selling commodities, at or below, Depression prices.
With respect to privatization - Social Security is a security offered by our government. It should have the full faith and trust that we offer on any other government trust, just like the guarantee we offer to those who purchase a government security note.
In recognition that there is an honest consideration of privatization as a means of making Social Security more secure, we can debate privatization, providing certain conditions are met: 1) those who would wish to use Social Security monies for industrial purposes should bid for that ability; and 2) they should provide appropriate collateral to assure that the principal would never be in jeopardy.
Our Federal Deposit Insurance Corporation (FDIC) provides assurance that those who put their money in banks will not lose their investment. Social Security should enjoy similar protection. Privatization under such conditions deserves consideration, since it could ensure that Social Security would continue to enjoy the full faith and credit of the United States, while at the same time, allowing a greater rate of return. Without that type of assurance, privatization must remain a low priority.
Adjustments to eligibility and payment levels, as reflected by the economic and social conditions may be in order. But the main focus must remain on establishing the absolute security of Social Security for all. We cannot reduce the value of Social Security any more than we would reduce the value of the dollar. The responsibility to preserve the Social Security system is as great as the responsibility for establishing the security of our monies.
Finally, there is a considerable amount of discussion about returning the surplus or providing a tax cut. We do not wish to get into that debate today, except to emphasize that the funds that have been borrowed from Social Security are a legitimate loan. They must be fully repaid before any other use is even considered.
Once again, thank you for the opportunity to be part of this debate. Reforming and preserving Social Security is an extremely important task, and the National Farmers Union looks forward to contributing to the solution.
Cy Carpenter can be contacted at 8200 Portland Avenue, Bloomington, MN 55420, or through the National Farmers Union, 400 Virginia Avenue S.W., Suite 710, Washington, DC 20024.