Secretary Dan Glickman

We've recently seen the price for hogs dramatically decline to its lowest level in over five decades. A number of farmers are in deep financial difficulty. Some have lost their farms while others are teetering on the edge.

We have worked hard to aid these farmers. President Bill Clinton recently met with hog farmers and shared his concern about the current crisis and the long-term ramifications. Vice President Al Gore announced that USDA will make approximately $50 million in cash payments to family-sized hog producers hardest hit by this crisis.

The work USDA has done is being coordinated by a Pork Crisis Task Force that has been working overtime and through the holidays to find ways to help pork producers get through this very dark period.

We are deferring loan payments on farm ownership and operating loans normally due January 1, 1999 and we’re working with lenders to reschedule loan payments or write down portions of a loan depending on individual circumstances and eligibility under the regulations. We are also encouraging producers and their lenders to apply for some of the approximately $1 billion available to all farmers for guaranteed operating loans and have streamlined loan guarantee procedures.

We are also working to stimulate demand for pork, both here and overseas. In the past 11 months USDA purchased $107 million in pork products for federal food assistance programs, and we expect to purchase an additional $60 million in pork products by March of this year. And I have asked other federal agencies–-the Defense Department, Veterans Affairs, the Justice Department, and the Bureau of Indian Affairs–-to increase the amount of pork in their volume purchases.

In addition, we are purchasing 50,000 tons of pork for the recently concluded food aid package to Russia.

We must also consider what actions can be taken over the longer term to ensure that economic catastrophes like these that can have such a devastating effect on family farmers are avoided. Clearly, we are concerned about structural changes in the hog industry that might have contributed to the current crisis. I believe it is worthwhile to ask what caused these changes, what effect this kind of restructuring of the industry has on competition, and what lessons can be applied to other sectors of agriculture. I am also concerned about why pork producers are receiving such a small share of the retail dollar paid by consumers for pork products.

As we embrace change and growth, lower costs, and increased efficiency, we also must preserve one of America’s most fundamental principles-–fair competition and opportunity for all. These issues are not just limited to agriculture--whether it’s banking, telecommunications, health or transportation--we need to preserve healthy economic competition. We need to continue to work toward ensuring a level playing field for everyone.