Iowa Gov. Says He Acted to Save Farms, Jolt Reagan

A moratorium on farm foreclosures in Iowa will save about 1,000 farms and jolt President Reagan and Congress to quickly enact a strong farm bill, Iowa Gov. Terry Branstad said today.

Branstad said he chose Tuesday to trigger a Depression-era law that invokes the moratorium on foreclosures to coincide with congressional debate on a new five-year farm bill.

He said he took the action “to tell Washington in a loud and clear voice that we need help in the heartland. While Congress fiddles, farmers burn.”

He said on NBC’s “Today” program that he is disappointed the farm bill has not been passed.

“I guess I’m very disappointed. I think it (the moratorium) is a very clear signal to the President that the problems in agriculture are not a partisan matter,” said Branstad, a Republican who campaigned for Reagan. “It’s a very major problem that needs to be addressed. The Administration has failed to take action.

“We think the Congress and the Administration need to get together and pass a farm bill that not only will improve the income of farmers but also deal with the credit crisis.”

Asked if he blames Reagan, Branstad said, “Absolutely, and the Congress.”

The governor’s executive order is believed to be the first of its kind in the nation since the 1930s.

Rep. Jim Leach (R-Iowa) applauded Branstad’s decision, an action he said might have been considered radical five years ago.

“But the plight of today’s farmer has deteriorated such that his announcement represents a measured warning shot across the bow of a Washington juggernaut seemingly oblivious to the impending crisis,” Leach said.

“There is an economic revolt brewing in the Farm Belt, which may well boil over if this warning is not heeded,” he added.