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Z 6Times New Roman Regular d'dxd( $ Figure  1  ZY I&mage <=8C HKKKK !  _ ,j\6&"`z1% `E,,%y%y,,%j $$        $$  ReleaseNo.0041.00     XGXXXKXXGRemarks  `  #K##XX%#XW XXX0  AsPreparedforDelivery#XX XXW# V $$   by7  SecretaryofAgricultureDan_Glickman_2000WheatIndustryConferenceAndExpositionFebruary9,2000!LasVegas,       NV  N    n.v  n  v  :  V0   $$   Thankyouverymuch,JimandChris,forthosekindwordsandthankstoallofyouforthatwarmwelcome.Itsapleasuretojoinallofyouagainthisyear.  IwaswithyoulastyearinNashville,andofcourse,lastmonththelocalfootballteamtherecamewithinayardofwinningtheSuperBowl.In1998,IbelieveDeputySecretary_Rominger_joinedyouinSanDiego.Andlaterthatyear,theSanDiegoPadresmadeittotheWorldSeries.TherearenomajorleaguesportsfranchisesinLasVegas.Butsincewinningseemstofollowyouaround,Imguessingitsgoingtobeabignightattheblackjacktableforsomeone.  Weareluckytobelivinginthemostprosperoustimesforournation!withthelongest zN economicexpansioninhistory,recordhomeownership,lowinterest,lowinflationandthelowestunemploymentin30years.Andby2013wewillpaydownthenationaldebtandbedebtfreeforthefirsttimesinceAndrewJacksonwasintheWhiteHouse.  Ofcourse,everyoneknowsprosperityhasnothingtodowithluckandeverythingtodowithresilienceandsacrifice.Nevertheless,therearetimeswheneventhehardestworkandthefiercestdedicationareinvain,whendecentmenandwomenfindthemselvesoverwhelmedbyforcesbeyondtheircontrol.SuchisthecaserightnowinAmericanagriculture.  Idonthavetotellyouthattheseareleantimesforwheatgrowersandotherswhomakealivingharvestingandsellingrowcrops.AsrecentlyasMay1996,thepriceofwheathadsoaredto$5.75abushel.ByJulyoflastyear,ithadplummetedto$2.23.Andwedontexpectanykindofsignificantreboundin2000.GrowersintheNorthernPlains,Iknow,haveitparticularlyrough,becausetheyhavefewothercropoptions,limitedofffarmincomeopportunitiesandcontinuedcompetitionfromCanadianimports.  Wheatgrowersdependheavilyoninternationaltrade,buttheglobalfinancialcrisis,ofcourse,hasmadeitthatmuchmoredifficulttopenetrateoverseasmarkets.  ӄmore9     1/2  @  @`  @  @ 21 Infiscalyear1996,wesawwheatexportsalesreacharecordhigh$6.9billion.Butthatfiguredroppedalmostinhalfby1999,to$3.7billion.Evenassomekeymarketsbegintoemergefromrecession,wheatgrowerscontinuetoconfronttariffandnontariffbarriersaroundtheworld.  AtUSDA,wearefightingtohelpyouovercomethosebarriers.WewillnotbackdownfromtheWTOnegotiatingprincipleswetooktoSeattle.Tradedistortingexportsubsidiesmustgo,andwebelievethattheEuropeans,nowcompletelyisolatedonthisissue,willhavenochoicebuttoeventuallygiveupthispractice.Likewise,wecontinuetocallforstrongdisciplinesagainstStateTradingEnterprisesliketheCanadianandAustralianWheatBoards,whichmanipulateprices,controlimportsandshutoutcompetition.  WecontinuetoworkcloselywithCanadatoimplementthe14montholdRecordofUnderstanding.CanadahaseasedphytosanitaryrequirementsontheintransitmovementofU.S.grainthroughitsrailsystem,andtheyhavealsorecognized14statesasfreeofkarnalbunt,thuseliminatingtheneedtotesteachshipment.WecontinuetoexchangegrainexportprojectionswithCanada,allowingustoresolveconflictsbeforetheybecomecrises.  Latelastmonth,USDAheldapublicmeetingonournewCleanWheatInitiative,whereweheardfrombuyersofU.S.wheataboutthepurerproductofferedbyotherwheatexportingnations.Wewanttorespondtoourcustomersdemand,andwecontinuetoexplorethebestwaytodothat,whetheritsthroughfinancingofgraincleaningfacilitiesorsomeothermethod.̀  Wehavemadeextensiveuseofourexportcreditauthorityoverthepastyear,withcreditguaranteessupportingmorethan$3billionincommercialsales.WithwhitewheatsalestoPakistanlaggingwellbehindlastyearspace,werecentlyextendedthetermofourcurrentcreditofferingfromtwotothreeyears.PacificNorthwestgrowersespeciallydependonthePakistanimarket,andPakistanneedsexportcreditstomakewheatpurchases.  WehavebeenasaggressiveaseverinourfoodaideffortsatUSDA,bothtohelpfarmersmakeupfordecliningexportsandtohelpneedypeoplearoundtheglobe.In1999,weshipped8millionmetrictonsofwheatandothercommoditiestoabout50differentnations.Thatwasalmostfivetimesthe1998tonnageandthehighestleveloffoodaidinseveralyears.Icantgiveyouanyspecificamounts,butwewillbeannouncingadditionalfoodaidverysoon.  Guidedbysoundscientificprinciples,wearesucceedinginallayingunfoundedfearsaboutTCK.WepersuadedBraziltoliftitsbanonhardredwinterwheatin1998.Andlastspring,wefinallymadeheadwaywithChina.Forthreeyears,adisputeoverTCKhadvirtuallyshutusoutof $#& China,asourwheatexportsplungedastaggering89percentbetween1995and1999.ButwiththenewU.S.ChinaAgreementonAgriculturalCooperation,ChinaiseasingitsTCKrulesandreopeningitsborderstoAmericanwheat.Now,forthefirsttimeinoveraquartercentury,wheatfromthePacificNorthwestisabletobesoldinChina.Chinesewheatimportsareexpectedtosoaroverthenextdecade,toanaverageof5millionmetrictonsannually.AndwiththeTCKissuebehindus,Iexpectustocompeteeffectivelyforthosesales.  ChinesemembershipintheWorldTradeOrganizationwouldfurtherexpandourmarketaccesstotheworldslargestnationwhoseeconomyisgrowingata7percentclip.ButitalldependsonourgrantingChinapermanentNormalTradeRelationsstatus,adecisionCongresswillmakelaterthisyear.  ӄmore 0/3 Ї   @ 3  Thestakescantbeoverstatedagriculturetariffscutinhalf;exportsubsidieseliminated;domesticsupportcapped.Whenitsallsaidanddone,wecouldincreasefarmexportstoChinabyupto$2billionayear.Thismaybethebiggesttestyetofournationscommitmenttotheglobaleconomy.ItiscriticalthatCongresspass_PNTR_.  ForalltheobstaclespreventingusfromexportingmoreAmericanwheat,thefactisthatoursalesinvolumehaveheldsteady.Itslowpricesthatarekeepingexportvaluesdown.Andwhilethegovernmentisnolongerinthebusinessofmanagingsupply,thereisplentywecandotomitigatetheeffectoflowprices.AndthatiswheretheAdministrationsnewsafetynetproposalcomesin.  OnApril4,1996,PresidentClintonsignedtheFAIRAct,butnotwithwholeheartedenthusiasm.Hereiswhathesaidthatday: Iamsigning[thisbill]withreservationbecauseIbelieve[it]failstoprovideanadequatesafetynetforfamilyfarmers.Thefixedpayments...donotadjusttochangesinmarketconditions,whichwouldleavefarmers...vulnerabletoreductionsincroppricesoryields.  ThePresidentwasprophetic,ofcourse.TherewasashortsightedqualitytotheFarmBill.Itwaswrittenforandduringafarmbullisheconomy,withlittlethoughttothepossibilitythatfortunescouldeasilyshift.Ayearlater,thefarmeconomytookasharpturnfortheworse.And  whereoncetherewasaforgivingsafetynet,manyfarmersfoundonlythehardconcreteoffinancialdevastation.Somethinghadtobedone,ofcourse.Soforthelasttwoyears,Congressscrambledtoputtogethernearly$15billioninadhocemergencyassistance.Sorelyneededyes.Butnotexactlythemosteffectiveorcostefficientwaytoseeourfarmersthroughtoughtimes.Congressdecidedtofixtheleakyroofwellaftertherainshadbegun.Thatsnotasafetynet;itsmorelikedamagecontrol.  Weneedabetterway.ThatswhytheClintonAdministrationseekstoenhanceandfortifythe1996FarmBillbyrebuildingthesafetynet.Alltold,overthenexttwoyears,ourplancallsforan$11billioninvestment,overandaboveexistingprograms,onbudgetandnonemergencyfunding.Ithasfourmajorcomponents.  Thecenterpieceoftheproposalis$6.9billioninsupplementalincomeassistance.Thatassistancewouldbetargeted.Thosewhoarestrugglingthemostwouldreceivethemost.Andpaymentswouldgotothosewhoactuallyworktheland,notnecessarilythosewhoownthelandinotherwords,farmersnotlandlords.Theassistancewouldalsobecountercyclical!with "!$ paymentsincreasingattimesofgreatestdistressandtaperingoffwhenthefarmeconomyrebounds.  Thesepaymentswouldbeontopof,notinlieuof,existingpayments.AMTAparticipants %$' wouldcontinuetoreceivetheirfullpayments,and98percentofthemwouldreceiveanadditionalcheckunderthisproposal.  Also,theproposalwouldfreezeloanratesforwheat,corn,soybeans,riceandcottonforthiscropyear.Anditcallsforlowcostfinancingtobuildorupgradeonfarmstoragefacilities.Toomanyfarmershavebeenforcedtodumptheirwheatandothergrainintoagluttedmarket.Onfarmstoragewouldallowgrowerstowaitforthebestconditionsbeforebringingtheirgoodstomarket.  ӄmore+ 0/3 Ї@*d4  Thesecondpartoftheproposalinvolves$2.7billioninincreasedconservationassistance.AnewConservationSecurityProgramwouldprovideannualpaymentstofarmerswhoadoptspecificpracticesthatcurberosionandprotectwatersuppliesfrompesticideandnutrientrunoff.Thisprogramwouldhaveaverybroadreach,asmorefarmersinmoreareaswouldqualifyforthesepayments.And,ofcourse,itistheclassicwinwinproposition!weenhancefarmincome,atthe  sametimethatweprotectournaturalresources.Forthefirsttimewetreatlandasavaluablecommodity.  WewouldalsoraisetheceilingonUSDAssuccessfulConservationReserveProgramto40millionacres.Andtheconservationprovisionswouldalsoincreasewetlandprotectionandshieldmorefarmlandfromdevelopmentandurbansprawl.  Third,ourproposaloffersfarmersenhancedriskmanagementtoolsworth$1.3billion.Itextendsthepremiumdiscountforfarmerswhopurchasebuyupcoverageforcropinsurance,anditmakesmultiyearcoverageavailable.Itwouldalsolaunchapilotlivestockinsuranceprogram,enhancebenefitsfornoninsuredcropsandexpandUSDAsriskmanagementeducationprogram.  Finally,thesafetynetproposalinvests$600milliontohelpcreatenewmarketopportunitiesforfarmersandstimulateexistingones.Thatincludes,amongotherthings,promotingfarmcooperativesandencouragingincreaseduseoffarmproductsinthedevelopmentofbiofuelsandbiobasedproducts.  Thesafetynetproposalisbroadbased.Itisnational,ratherthanregional.Itisbasedonthecommonsensenotionthatthosewhoarestrugglingthemostdeservethemosthelp.Itmovesfarmpolicybeyondcommoditybasedpaymentstoastrategythatinvestsinpeople.Itsalsoaplanthatvaluesourlandbeyonditsarability,insteadseeingitasourmostvaluablecommodityofall.  Thisisalsoafiscallyresponsibleproposal.Idonthavetheluxuryofgoingoffbudget,asCongresshasinpassingemergencybillsthelasttwoyears.ThesafetynetplanfitswithintheframeworkofthebalancedbudgetthatthePresidentsubmittedonMonday.    Thisisnotaboutrewritingthecurrentfarmbill...butaboutpatchingupsomeofitsholes.Ontheotherhand,Iseethisasmorethanastopgap.Mybeliefisthatthisplananditsguidingprinciplesrepresentanewphilosophicaldirectionthatcanhelpmapacoursetowardthe2002FarmBill.Iconsiderthisnotasetoffundinglevels,butasetofideas.IammorethanwillingtoworkwithCongress,tolistenandtobeflexible.    Aswebeginthe21stcentury,wehavetobecomemorecreativeaboutmaintainingthe $#& viabilityofagriculture...andoftheAmericanfamilyfarminparticular.Gonearethedaysofanagrariansociety,wherefarmingwasthelifebloodoftheeconomy.Welivetodayinanurbanizedculture,aneweconomyofhightechstartups,stripmallsandofficeparks.    Butstill,everyman,womanandchildonearthhastoeat,sotherehastobeasecureplaceforfarmersinAmerica.Thatswhatthissafetynetproposalisallabout!securingthatplace, l*@), protectingourfarmers,ensuringthatonebadyearoronedevastatingstormdoesntdrivethemoutofbusiness.Themenandwomenwhohavegivenusthesafest,mostaffordable,mostabundantfoodsupplyintheworlddeservenothingless.        Thankyouvery_much  ._   ## # 0/3 :