Glickman Announces $100 Million Assistance Package for Sheep and Lamb Farmers
                                                               
                                            Release No. 0011.00
                                                               
                                    Susan McAvoy (202) 720-4623
                                          susan.mcavoy@usda.gov

GLICKMAN ANNOUNCES $100 MILLION ASSISTANCE PACKAGE FOR SHEEP AND LAMB FARMERS

     WASHINGTON, Jan. 13, 2000 Acting on President Clinton's commitment to
help U.S. lamb and sheep farmers, Agriculture Secretary Dan Glickman today
announced details of a three-year, $100 million assistance plan.  

     "This Administration is committed to helping American sheep and lamb
farmers who are threatened by a surge of low-priced, imported lamb meat," said
Glickman.  "By funding production improvements, increasing promotion efforts,
and helping to improve animal health, our assistance plan boosts the long-term
development and growth of lamb and sheep farming in the U.S."  

     Last February, the U.S. International Trade Commission ruled 6-0 that
the recent surge of low-priced imported lamb meat causes the threat of injury
to U.S. producers.  The assistance package will help the U.S. lamb industry
achieve sustained competitiveness, while respecting international trade
obligations.  

     The plan makes $50 million available during the first year and an
additional $50 million during the second and third years for production
improvements, market promotion, animal health and domestic purchases.  Here is
how the funds will be spent   

Production Improvements

          The plan will provide $30 million total, or $10 million per year, to
     small- and medium-sized producers in direct cash payments tied to
     production practices and quality incentives that improve
     competitiveness.  In year one, funding would be directed to such
     activities as genetic selection, lambing facilities, and feedlot
     development or improvement.  In years two and three, there will be
     quality incentives for production of highly desirable products.

          In the first year, $15 million is provided for guaranteed loans to help
     fund new and improved building facilities as well as processing and
     packaging system upgrades.  An additional $5 million is available in
     year two and again in year three for these loans.  

          The plan includes $5 million in year one and $5 million in year two for
     guaranteed loans to help farmers cover flock and farm improvements and
     operating expenses.  

Animal Health

          USDA will spend up to $10 million in the first year helping producers to
     eradicate scrapie from the domestic sheep population.  An additional $5
     million will be requested in the second year.  Additional funds may be
     requested in the third year, if needed. 

Domestic Purchases

          USDA will purchase up to $5 million of lamb each year during the three-
     year program. 

Market Promotion

          In the first year, USDA will invest $4 million in efforts to increase
     demand and improve the competitive position of domestic lamb.  

          An additional $1 million in the first year will fund marketing programs,
     including cooperative marketing, lamb yield data, wool certification and
     price reporting.  

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