Joint Session of the Georgia State Legislature Release No. 0087.99 Remarks As Prepared for Delivery by Secretary of Agriculture Dan Glickman Joint Session of the Georgia State Legislature Atlanta, Ga March 4, 1999 "Good morning and thank you, Governor Barnes, for that generous introduction. I enjoyed meeting with you when you were down in Washington a few weeks back. You have a tough act to follow in Zell Miller, but I have every confidence that, with your energy and under your leadership, Georgia will head into the new millennium as strong as ever. "I want to thank Lieutenant Governor Mark Taylor and all your legislative leaders -- Speaker Murphy, Senator Walker, and also Representative Charlie Smith, who had a lot to do with pulling this event together. It's a unique honor to be here in the chamber where Speaker Murphy has presided for so long. Your leadership is legendary, Mr. Speaker. Thank you for all your years of service. "Let me also single out my friend, Commissioner Tommy Irvin. There's a reason why he's been Georgia Agriculture Commissioner for 30 years. It's because when you look up the word "tenacious" in the dictionary, there's a picture of Tommy Irvin. I can't imagine a stronger champion for Georgia agriculture, and I want to thank him for his support and leadership. "I also want to thank Representative Smyre and the Rules Committee for pushing through the joint resolution that made this session possible. I certainly hope the resolution passed with a unanimous vote. "I'm not here today to tell you what to do or how to conduct the affairs of your state. Harry Truman once pointed out that the best way to give advice to your children was to find out what they want...and then advise them to do it. As a former governor himself, President Clinton has made partnership with states and localities the cornerstone of this Administration's governing philosophy. He knows it's the folks who make decisions at the state and local levels that are most in tune with the needs of the American people. "I don't know this for sure, but I'm willing to bet that not a single peanut is grown in Washington, DC. So while we in the federal government have an important role to play in supporting our farmers, every one of our initiatives has to be informed by your expertise here at the state level. "But the Department of Agriculture does much more than look after our farmers and ranchers. When Abraham Lincoln signed the legislation creating USDA, he dubbed it, "the people's department", and it's that name that we try to live up to every day. I don't mind presenting myself as Mr. Corn and Cows -- or, in Georgia, Mr. Pecans, Peanuts, Peaches, and Poultry...the 4 P's...and I don't want to leave out cotton. But I do want to take a minute to emphasize the breadth of the work done by USDA. "Take food safety, for example. When the son of the Atlanta Braves shortstop contracted e.coli last summer, it served as a reminder that food-borne illnesses still loom as a threat to public health. It's USDA's physical and science-based inspection that helps ensure that the dinner you put on the table every night is safe to eat. Our state-of-the-art food safety labs in Athens are world leaders in the field. In partnership with the university, our scientists are working to keep our poultry free of deadly bacteria and pathogens like salmonella and avian influenza. We have the safest food supply in the world, thanks in part to the working relationships between USDA and the University of Georgia. "Research is the lifeblood of a strong agricultural sector, and so it is a key component of our work at USDA. We have several research facilities in this state, as we build on the tradition of Georgia agricultural innovation that goes back to Eli Whitney and the cotton gin. We have a National Peanut Research Laboratory in Dawson. USDA scientists in Byron, Georgia have recently made a genetic breakthrough that will allow for quality, early-season peach varieties in low-chill regions of the state. And in Tifton, we're conducting research on everything from turf grasses to watershed systems. "Support from USDA has built our land-grant institutions into some of the nation's most prestigious centers of learning and research. This year, we're investing $4.5 million in Georgia's Fort Valley State University...money they will use to expand their biotechnology curriculum and do cutting-edge research on such things as insect resistence in sweet potatoes and the reproductive capacity of goats. "USDA is also an economic development agency. We help ensure that rural communities have the infrastructure they need to thrive. Last year, USDA's Rural Development Agency invested $270 million in Georgia's rural communities with housing loans, new water and sewer systems, business enterprise grants, and more. Our business development efforts alone created or saved about 3,500 Georgia jobs. "Last year, we made a quarter of a million dollar loan to help the Georgia Sweet Carrot Cooperative purchase equipment for a processing facility. Sweet carrots are a growing industry in Georgia, and I know that many of you in the legislature have been very aggressive in your support of this alternative crop. Also here in Georgia, the Crisp Dooly Enterprise Community became the only enterprise community in the country to be upgraded to an empowerment zone. This new designation will mean expanded tourism, recreational facilities, better health care and improved education in an area where the poverty rate has hovered around a third. "USDA has an important environmental mandate as well. In parts of Georgia and eight other southeastern states, we have created a new Longleaf Pine National Conservation Priority Area, which will protect over 30 threatened and endangered species. I know that you all are considering measures that would regulate farm odor output, and we are working with the Georgia swine industry on voluntary approaches that would mitigate the environmental impact of their operations. And in Cobb County, we're providing training and technical assistance to a group of homeowners who want to prevent soil erosion and encourage environmentally responsible landscaping. "We oversee America's national forests, including the 865,000 acres of the Chattahoochee and Oconee. And the Oconee Ranger District, based in Eatonton, Georgia, has been recognized as one of the top Forest Ranger Districts in the South. "USDA also delivers vital social services. We administer the Food Stamps and WIC programs. About 375,000 Georgia children start their days with a nutritious meal thanks to USDA's School Breakfast program. In many ways, we're just following Georgia's lead on these efforts. Because it was one of the most distinguished Georgians ever, Senator Richard Russell, who sponsored the first National School Lunch Act of 1946, considered by many to be one of the most successful government programs ever. "So as you can see...whether you're urban, suburban or rural...whether you're from the Summerhill section of Atlanta...the Blue Ridge Mountains...or Saint Simons Island...the work of USDA means something in your life. "All that being said, I want to focus my talk today on farmers...because while the rest of the country is experiencing nearly unprecedented growth and prosperity, our farmers are under extraordinary economic stress. "It's a little awkward for me, because as a representative of the Clinton Administration, the performance of the national economy gives me a great deal of pride nearly 18 million new jobs...low inflation...low interest rates...the highest homeownership in history...a budget surplus...and so on. "But as Secretary of Agriculture, I wrestle with a farm crisis that is threatening to make an endangered species of the American family farmer and tear the heart out of rural communities all over the country. "Farm income is expected to drop to $55 billion this year. 1999 export sales are expected to be $11 billion lower than their 1996 high. Commodity prices are generally weak. It's important that we understand all this on an emotional as well as an intellectual level. When prices fall, what doesn't show up in the data is that someone's going into foreclosure, and a family that has farmed for several generations has to find a new way of life. "Where is this crisis coming from? Bad weather, for one. For most of us, bad weather is, at worst, an inconvenience. If you're a farmer, it could put you in the red. Last year's wet spring and dry summer here in Georgia made for a tough year for field crops, corn and soybeans especially. "Strong overseas production is creating stiffer global competition than ever for our producers. In fact, since 1996, we've had three consecutive years of record worldwide grain production. The economic hemorrhaging in Asia is drawing more than a few drops of blood from our farmers, as consumer demand shrinks in what had been our most reliable export markets. Poland and the former Soviet Union together account for more than half of all U.S. broiler exports. So when the Asian contagion spread to Russia, Georgia poultry took a big hit. We're now looking at the first decrease in broiler exports since 1984. "At USDA, our response to the farm crisis has been quick and decisive. We have stretched the parameters of our authority to do everything possible to keep our farmers afloat. Total USDA farm assistance in fiscal year 1999 will come to $18 billion, the highest in more than a decade Last year, the President fought successfully for an emergency farm relief bill worth $6 billion, 50 percent more than Congress originally appropriated. Pursuant to that bill, I will shortly announce our schedule for making $200 million in payments to dairy producers. "We increased our loan deficiency payments -- which protect farmers against low prices from 2,000 payments in 1997 to an amazing 1.5 million in 1998. And just this week, the President asked Congress to provide $152 million in emergency funds so that we can continue to extend credit to farmers in need and hire the additional staff at the county level to meet the increased demand for our services. USDA loan activity so far this year is almost two-thirds greater than at this point in 1998, so Congress needs to act on this request immediately. "To promote agricultural trade, we extended export credits worth $4 billion last year, over 40 percent more than in 1997. Last year, our food aid program amounted to 3 million metric tons of food. This year, we've upped it to 10 million metric tons, which the government is buying from our farmers and shipping to hungry people around the world. We made sure that 50,000 tons of poultry were included in the food aid package that we are sending to Russia. And we are also hoping to close the sale on an additional 200,000 tons of poultry for Russia, by using our new authority to enter into food aid agreements with the private sector. "We also opened a new export assistance center here in Atlanta one of only four such offices around the country. Through partnerships with state agencies, universities, and farm groups, these offices are helping producers identify and capitalize on trade opportunities. "We're managing to help farmers in a fiscally responsible fashion. For example, the rural development budget that we recently submitted to Congress is $800 million higher than it was last year. But because of the strong economy and low interest rates, the actual cost to the taxpayers will be $400 million lower. "We've been aggressive about addressing the problems in the hog industry, where the holidays brought the lowest prices in fifty years. I convened a Pork Crisis Task Force, which made specific recommendations for action. We are making $50 million in direct cash payments to smaller hog producers. Over the last year, we have bought a record $146 million in pork for federal food assistance programs. An additional $80 million from USDA accelerated a program to buy hog herds infected by pseudorabies. I might also add that President Carter personally weighed in with me and with President Clinton on the hog crisis, and his invaluable input led to direct action. "But for all that we're doing, the fact is we don't have the tools we once did to cope with a farm crisis. The 1996 Farm Bill completely revolutionized American farm policy, scaling back the federal role and giving farmers the freedom to plant whatever and whenever they like. "That was a policy well-suited to the bullish farm economy of 1996. And it worked fine.as long as prices were high...as long as the weather cooperated.as long as exports were strong. "But when the going got tough, there was little cushion there to break our farmers' fall. So Congress and the Administration had to scramble to throw together an emergency relief bill. That was an absolutely necessary stopgap. But it was purely reactive, and it did not deal with some fundamental and difficult challenges facing American agriculture. "So one of our top priorities this year is to build a strong farm safety net. The 1998 disaster program provided a good start, as it allocated $400 million to reduce crop insurance premiums by 30 percent as a down payment to help fix the program and make it more attractive. But we have to do more. "Improving crop insurance and risk management will be the centerpiece of the safety net, but we are exploring other ideas that will help farmers be prepared for tough times. For example, since the '96 farm bill, I am no longer able to help finance on-farm storage facilities. Which means that most farmers are forced to sell their commodities immediately after harvest, with no opportunity to wait until prices improve. Commodity loans are now capped and are no longer an effective safety net tool. I no longer have set-aside authority, not even under emergency circumstances. Nor do I have the ability to let farmers extend their repayment schedules on commodity loans. I want to explore restoring these authorities as a means of bolstering the safety net. "These are just a few of several proposals we've put forth. And I'm calling on Congress to work with us to strengthen the safety net, both for the short and long-term. I'm convinced that we can get something done this year. "I am concerned not just about the immediacy of this farm crisis, but also about some of the overall structural changes in the farm economy. The trend in agriculture as in other sectors of the economy is toward fewer and larger operations, which threaten to squeeze the family farmer out of the marketplace. We are committed to using the full range of our anti-trust authorities, to help ensure that small farmers can continue to do business in communities throughout Georgia and around the country. "As the farm economy consolidates, of course, it's the small farmer that takes the hit. And it's often been minority farmers that have been the first to be pushed off their land. "Historically, the federal government's response to this situation has been grossly inadequate. Too often over the last fifty years, USDA has failed to exercise leadership on behalf of African-American farmers. In fact, in the 1980s, USDA dismantled its civil rights investigative unit, giving farmers with discrimination complaints no recourse. "I have worked hard to try to reverse the Department's poor record in this area. In January, we negotiated a settlement in a class-action lawsuit brought by black farmers. The settlement, which is currently being evaluated by a federal judge, is an important step in USDA's renewed commitment to inclusion and racial justice. "And I want to add that it was former Speaker Gingrich who personally helped make this settlement possible. By pushing legislation that waived the 2-year federal statute of limitations, he allowed farmers to renew ten, fifteen, even twenty-year-old claims against USDA that had seen no action. That's just one example of the excellent working relationship we have with the entire Georgia congressional delegation. "We now have an opportunity for a new beginning for USDA, in terms of our relations with small farmers of all races, regions and backgrounds. We have a lot to do. Many of our family farms are facing a dire crisis. Farms are going on the auction block. Families are hurting. I don't care what color they are.they need and deserve our help. We have overseas markets to open... farmland to save. research to conduct.a safety net to build. If Atlanta is the city too busy to hate, then USDA should be the department too busy to discriminate. "We owe it to farmers of every race to be there when they fall victim to economic circumstances beyond their control. We aren't going to just stand by and watch the air run out of their parachutes. We have a forward-looking agenda, which addresses not only today's hardships, but also the longer-term prospects for American agriculture. We're building partnerships with everyone -- Congress, farmers, bankers, consumers, industry groups -- who has a role in building a strong production agriculture. "And we'll be counting on you as well. No matter what the issue, states have demonstrated time and again that they deliver some of the most innovative solutions to our greatest public policy challenges. To build a strong 21st century farm economy, we're going to need both expertise and resources from the states. We're going to need more ideas like Lieutenant Governor Taylor's plan to set up an agricultural authority that would issue bonds to farmers. "I'm challenging everyone who isn't involved to get involved. We all have a stake in our farmers' destiny. It's the skill and ingenuity of the American farmer that has given us the cheapest and most abundant food supply in the world. Meat, dairy and produce don't just miraculously materialize on our grocery store shelves. They're there because of the grueling labor and tremendous sacrifice of American farmers. "I recently visited Russia, where it's a good day if you can buy any breakfast cereal or any citrus at all -- let alone the twenty brands and varieties you can get here in the United States. We are one of the few countries in the world never to have gone to war over a food shortage. "One of my old Congressional colleagues once told me a story about a young boy who visited a submarine and had the opportunity to meet the captain. He was very curious, this boy, so he asked the captain: "What happens when submarines run out of fuel?" And the captain explained that they run on nuclear energy and can stay underwater for a decade or so. "Well," the boy asked, "what happens when they run out of drinking water?" And the captain explained all the different distillation methods they had to make sea water potable. The boy persisted: "Well, what happens when they run out of air?" And the captain told him about their oxygen tanks and so forth. "Finally, the boy asked: "So when do submarines come up?" "That's easy," the captain said, "when we run out of food." "All the technology in the world can't replace that most fundamental of human needs. Believe it or not, even in this day and age, you can do without a Pentium processor. But we all need to eat. And so there will always be a place for farmers in our economy and in our society. "There's no denying that the world has changed...that Georgia has changed. I'm not going to try to convince you that we still are -- or should be -- a predominately agrarian society. Today, we live in an information economy and a suburbanized culture. That's a fact. I'm not here to bash developers or strip malls. I'm not going to try to argue that the growth of Cobb County hasn't improved quality of life in the metro Atlanta area...or that expansion of the Bobby Jones Expressway hasn't been good for the Augusta economy. "But long before the satellite and the modem...long before CNN and BellSouth...for about the first 160 of Georgia's 211 years...it was agriculture that powered this state's economy. And even though we're never going back to the proverbial 40 acres and a mule, let's remember that agriculture is still Georgia's largest industry, still responsible for one out of every six Georgia jobs. "So even as we promote high-tech growth, let's remember who it is that feeds us. Let's remember everything the American farmer has done to make the United States of America what it is. And even as we celebrate the largest peacetime economic expansion in our nation's history, let's keep in mind the anguish being felt in much of farm country. More importantly, let's do something about it. Let's all of us work together to bring prosperity and profitability back to the family farm in the 21st century. Thank you."