1998 Annual Report of the Secretary of
Agriculture
USDA: Preparing for a New
Millennium 
1998 AccomplishmentsYear at a Glance
Our USDA successes for 1998 included
Expanding opportunities and assistance for Americas family farmers
- President Clinton fought for and won a strong emergency assistance package
for Americas farmersone that includes 40 percent more funds than
the original bill he vetoed. Nearly $3 billion in assistance reached farmers
before Thanksgiving, and an additional $3 billion will be distributed before
spring 1999.
- USDAs Commodity Credit Corporation (CCC) made commodity loans of
about $7.2 billion to producers, $1.6 billion higher than last fiscal year. To
offset lost farm income, CCC will also make about $2.8 billion in loan
deficiency payments, and marketing loan gains on 1997 and 1998 crops.
- Using sound science, USDA broke through 77 barriers stifling U.S. farm
trade, enabling $2.2 billion in threatened and new agricultural trade
opportunities to take place. Carrying out President Clintons Food Aid
Initiative, the Department began purchases of more than 185 million bushels of
wheat for donation to hungry people around the world. We increased by 40
percentto $4 billionthe export sales registered under our export
credit guarantee programs. This enabled U.S. exporters to complete sales of 201
million bushels of wheat, 227 million bushels of corn, 104 million bushels of
soybeans, and nearly 2 million bales of cotton.
- USDA led successful discussions with Canada about access for U.S. wheat,
cattle, hogs, and other trade issues. USDA opened the Taiwanese market for U.S.
pork, poultry, and beefand reopened Brazils market for U.S. wheat.
- USDAs Farm Loan Program provided over $2.1 billion in assistance to
over 26,000 family farmers in FY 1998. About $367.1 million of these funds
helped 3,186 minority and women farmers. And more than $490 million in direct
loan assistance benefitted over 7,000 beginning farmers this fiscal year, a
6-percent increase.
- USDA responded quickly when farmers suffered devastating losses, approving
disaster designations for counties in 43 States. The Department made over $97.5
million in low-interest emergency loans and disbursed $26.5 million in
emergency conservation funds. USDA provided $22.9 million in emergency benefits
to farmers with uninsurable crops, $2.8 million to orchard and vineyard owners,
and $4.9 million to livestock producers.
- USDA added economic and legal expertise to strengthen investigations of
anticompetitive practices that hit small farmers and ranchers hardest.
- To help avert a repeat of 1997s gridlock in rail transportation, USDA
hosted a National Summit on Agricultural Transportation, which set the
groundwork for a comprehensive plan to meet agricultures long-term
transportation needs. The Department also created an early warning system to
anticipate demand for railcars by grain shippers.
- USDA proposed the first rule on national standards for organic foods, using
the Internet in an unprecedented public review and comment process. The
Secretary also offered a proposal to reform Federal dairy policies.
- For the first time, USDAnot the U.S. Bureau of the
Censusconducted the census of agriculture. And, for the first time, all
farmers on American Indian reservations were counted.
- USDA took new steps to improve the safety net for farmers, expanding crop
insurance to new crops and new areas. More than $1.4 billion in crop insurance
indemnitiesa recordwere paid out to farmers.
Creating jobs and helping to revitalize rural America
- USDA helped 68,000 rural Americans buy homes and created or saved 215,000
rural jobs in 1998. The Department invested more than $9 billion in rural
development projects. In FY 1998, USDA invested $4 billion to help rural
Americans buy or build single-family houses, making the dream of home ownership
a reality for 68,000 households.
- USDA also helped renters, spending $219 million for loans and grants for
the construction of 3,942 affordable apartment units and the repair or upgrade
of 5,682 apartments in rural areas. USDA provided $545 million to help
low-income rural renters.
- USDA provided $286 million in loans and grants to build or expand community
facilities that benefit more than 2.7 million rural residents. These
investments include more than $110 million for 147 rural health care
facilities, $13 million for 46 child care centers, and $36 million for 262 fire
and rescue facilities. Another $54 million helped develop other community
resources, including job training facilities, libraries, and courthouses.
- At $60 million, USDA loans to rural cooperatives nearly doubled this year.
The Department has earmarked $200 million for funding co-ops in 1999.
- USDA provided $1.3 billion in loans and grants to build or improve 1,021
water and sewer systems, helping to bring clean, safe drinking water to more
than 2 million rural Americans.
Ensuring wise stewardship of the land
- CCC expanded the Conservation Reserve Enhancement Program to help six
States, protecting New Yorks drinking water as well as habitats for
endangered salmon and trout in the Pacific Northwest.
- CCC enrolled 211, 917 acres in the Wetlands Reserve Program in fiscal year
1998. This brings the total area that is being restored and protected under the
program to 665,447 acres.
- USDA began implementing the Wildlife Habitat Incentives Program in fiscal
year 1998. Landowners enrolled more than 670,000 acres in long-term agreements
under the new program, in return for technical and financial assistance from
USDA.
- USDA provided technical assistance to more than 740,000 farmers, ranchers,
other land users, and units of government. As a result of these services, the
planning decisions and management applied by resource managers on about 61
million acres of agricultural and other rural land will help to sustain
resource productivity and enhance environmental quality.
- USDA provided $17.2 million to 19 States through the Farmland Protection
Program, leveraging about $95 million in state and local funds, to preserve
endangered American farmland.
- The USDA funds helped acquire permanent easements to preserve almost 45,700
acres in agricultural use. Over the 3 years of the program, more than 127,000
acres have been protected.
- USDA worked with State and local governments and other Federal agencies to
begin implementation of the Presidents Clean Water Action Plan. Unified
Watershed Assessments were completed in every State to identify watersheds with
the most critical water quality concerns and to develop strategies to improve
water quality in high priority watersheds. In addition, USDA and the U.S.
Environmental Protection Agency developed a draft Unified National Strategy for
Animal Feeding Operations (AFOs) and released it for public comment. The
Strategy identifies national performance expectations for AFO owners that will
reduce potential water quality risks posed by animal feeding operations.
- USDA employees at the Camino Real Ranger District in New Mexico won the
prestigious Innovations in American Government Award for unifying a deeply
divided forest community.
- USDA embarked on an ambitious natural resources agenda for the 21st
century, setting clear priorities for scientists and managers and holding them
accountable for sustaining the health of Americas forests and grasslands.
- To prevent further damage by the dangerous Asian long-horned beetle, USDA
banned untreated solid wood packing materials from China and helped remove more
than 2,500 afflicted trees in New York.
- USDA has lifted all Florida Mediterranean fruit fly quarantines, and no
Mediterranean fruit flies have been detected in Florida since 1998. The
Department is working toward its eradication in California to protect valuable
fruit and vegetable crops.
- The Department collected approximately $20 million from 65 recreation fee
demonstration projects on national forests and grasslands in 1998. Most of
these funds are used to maintain and improve trails, recreational facilities,
visitor services, signs, and health and safety features for the forests
and grasslands 800 million visitors.
- USDA researchers developed an award-winning bio-pulping technology that
uses wood-decay fungi to soften wood chips, eliminating environmental problems,
reducing energy costs by at least 30 percent, and producing stronger paper.
- In 1998, USDA launched a new approach to forest road management to improve
service to users, protect environmental values, enhance public safety, reduce
damage to the environment, and better serve local transportation needs. A
moratorium was proposed on new road construction in certain unroaded national
forest areas.
Modernizing our food safety system, using science to ensure safety from
farm to table
- USDA implemented HACCP, the new, science-based food safety inspection
system, in the Nations 300 largest meat and poultry plants. Preliminary
data indicate that the new system is already working, reducing Salmonella
dramatically in pork and broiler chickens.
- President Clinton established the Presidents Council on Food Safety
to coordinate resources and policies to better prevent foodborne illness. He
also set up the Joint Institute for Food Safety Research to ensure effective
coordination of research among food safety agencies and FORC-G to ensure a
rapid and effective government response to foodborne illness outbreaks.
- USDA researchers developed an anti-Salmonella spray that may help poultry
producers significantly reduce Salmonella contamination on the farm. They also
created a new variety of corn that can reduce phosphorous in pig and chicken
waste by 50 percent.
Feeding Americas hungry children and familiesand promoting
food recovery
- USDA nutrition assistance programs helped feed about 1 in 10 Americans. In
1998, nearly 20 million needy people received food stamps to help feed their
families. More than half of the 5 billion school meals served to children this
year were provided free or at a reduced price. And USDAs WIC program
provided nutritious supplemental foods to 7.4 million at-risk women, infants,
and children to help ensure a healthier America.
- Congress passed President Clintons legislative proposal to
reauthorize child nutrition programs, including an expansion of after-school
snack programs so communities can move teens off the streets. The President
also successfully fought for restored food stamp benefits for our most
vulnerable legal immigrants, including children.
- USDAs Inspector Generals Operation Talon caught
more than 3,500 fugitive felons, many of them violent offenders, who were
former food stamp recipients.
- USDA employees donated hundreds of thousands of pounds of food to community
kitchens, and field-office gleaning efforts delivered tons of fresh produce to
families in need.
Aggressively addressing long-standing civil rights issues
- President Clinton and I won congressional passage of a waiver of a statute
of limitations, so USDA could settle older civil rights cases. The Department
restaffed its civil rights enforcement unit and cut in half the backlog of
discrimination complaints. Civil rights training began for all employees.
- The Office of Civil Rights investigated 131 program discrimination
complaints in FY 1998. Its investigative unit had been eliminated in 1982, and
no more than a handful of cases had been investigated annually since that time.