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p3<5889sy>|q9s9gs|q+~q|s9x|q>gxϟ9<ϙ?3>gϞ|3s9>g>gyϟ"~όsy>g3:>g?<ϙ?0>g9 0s8?>g>gyϟ"~@sx>`02f>`? ϙ?0>g9 0y>O?'<>g>gyϟ&~@sx>`0O>p? ϙ?3>gϓ3y>O'?>g>gyϟǁ ~sy>g3O> ß?O >ϙ?3>ǵ?3y>O'?>g>gyϟ~|sy>g3_>ϟ?O&>yϘ9>sx?9>O'9>g>s|qϟς??<|yǞys|>s9|gx?&?Ϝ898>p8"?<>g>pϜxp~s>p8?px?&?ϟ yy>>x?<>"?>g>|'Ϝ|>x?s>|>?sx?~ߐdžߏǂ?σ{??σ>=<??ρ x8ς'ρ>Oρ>Oρ񟞁ς'ρ>Oρ>Oρ?~?ρς-'σO>OO>O!?<x y<ρ27N>o>o<`yLJ?8p >|q89?ρ2?s8x9yy|9?sg993ρ? 33~ρyy?sg983ρ? ə3&0~s  ?8xyǎx|?3?~8q3-τO8!9s<pg? ????@*J:\DRAFTS\NRLOGO.WPGJ:\DRAFTS\NRLOGO.WPGhd\,3BV4d\,,  AZ"Arial Regular(. Z 6Times New Roman Regular(3$ !  'dxd( $ Figure  1  VZY I&mage <=8C HKKKK !  _ 8XXdd8,j\6&"`z1% `E,,%y%y,,%j (#(#        (#(#  ReleaseNo.0063.00     XGXXXKXXGRemarks  `  #K/##XXN#XW XXX0  AsPreparedforDelivery V (#(#  #XX XXW#byU.S.SECRETARYOFAGRICULTUREDANGLICKMANNATIONALFARMERSUNION98THANNIVERSARYCONVENTION > FEBRUARY28,2000!SALTLAKECITY,UTAH  . g  Thankyouverymuch,Lee.ItsapleasuretoagainjointheFarmersUnionasyouapproachanentirecenturyofadvocacyandleadershiponbehalfofthemostskilledanddiligentfarmersandranchersintheworld.  Justasitwaslastyear,wemeetatatimeofstressandhardshipforthemenandwomenofAmericanagriculture.Foraboutthreeyearsnow,theyvebeenbatteredbyrockbottomprices,shrinkingglobaldemandandrecordworldwideproduction,nottomentionaslewofnaturaldisasters.  Duringthelasttwoyears,CongressandtheAdministrationwerecompelledtoact$6billioninemergencyaidin1998,followedbyanother$9billionlastyear.Thiscertainlyhelpedmanyfarmers.Plentyofthemwouldnothaveotherwisehadthecashflowtogetthroughtheyear.Nevertheless,Ibelievetheemergencybillsweremoreofaquick_fix_Ԁthanarealsolution.NFUhascalleditabandaidapproach.Illmakeanothermedicalanalogyandsaythatweappliedaveryexpensivetourniquet,whenthesituationactuallycalledforabloodtransfusion.  Weneedtodevelopamorepermanentassistancepackage,onethatsreadytokickinwhenthefarmeconomyheadssouth.Thatswhyweveunveiledanewsafetynetproposaloverandabovethecurrentfarmprogramsthatoffersafairer,moreefficientandmorecosteffectivewaytoprotectfarmers.Atitsheart_isseveralbilliondollars_,overthenexttwocropyears,incountercyclicalincomeassistance.Thisassistanceisalsotargeted.Targetedtosmallerproducerswhogenerallyhavesmallerincomes.Targetedtothosefarmerssufferingthegreatesthardship.Andunlikethelasttwoemergencybills,targetedtothefarmerswhohaveactuallygrownthecrops.  Thatseemslikeaprettycommonsensenotion!thatthosewhoarestrugglingthemost n+B*, deservethemosthelp.ButtheAMTAformulathatwevebeenlivingbyfornearlyfouryears,withitsfixedpayments,hasnosuchlogic.ThankstoAMTA,recentsupplementaryfarmpaymentshaventbeentiedtoneed,tosizeortocurrentproduction.  ӄmore 1/2 Є22   Theresmoretoourplan,ofcourse,thanincomeassistance.Itincludesnewdirectconservationpaymentsdirect,notonacostsharebasisthatrewardfarmerswhoundertakeeffortstohelpcurberosionandprotectwatersuppliesfrompesticideandnutrientrunoff.Theplanalsoenhancesexistingconservationefforts,forexampleraisingtheceilingontheConservationReserveProgramto40millionacres.  Ontheriskmanagementfront,werelookingtomakecropinsurancemoreaffordableandmoreaccessible,byextendingthepremiumdiscountonbuyupcoverage;_offering_Ԁmultiyearcoverage;_making_Ԁcoverageavailabletomorekindsoffarmersandmorecrops;_and_expandingourriskmanagementeducationprogram.WealsowouldliketoseeCongresspasswholesalecropinsurancereform,consistentwiththeprinciplesweannouncedlastyear.  Thesafetynetalsoincludeseffortstocreateandexpandmarketopportunitiesforfarmers.Thatmeanspromotingthegrowthanddevelopmentoffarmcooperatives;exploringalternativeusesofcropsthroughanew_bioenergy_Ԁprogram;andfundingforruralEmpowermentZonesandEnterpriseCommunities.  Ithinkthisisastrongproposal,butwerealsoopentonewideas.Somepeoplehavesaidtheythinktheplanisinsufficient.Now,itsonethingtohearthatfromtheNationalFarmers_Union_Ԁwhovebeeninthetrenchesoneveryissuethatsimportanttoagricultureforthelastcentury.Itsquiteanothertohearitfromsomeoftheverysamepeoplewhomastermindedthe1996FarmBill,whichcutholesinthesafetynetinthefirstplace.Amazinghowafarmcrisiscanturneveryoneintoaprairiepopulist.  IalsohavetochucklewhenIhearpeoplesaythatthe1996FarmBillissomehowinviolate,thatwecantdepartfromitsbasicprinciples.Butwhoarewekidding?Wehavealreadyamendeditdramatically,bypumping15billionadditionaldollarsofgovernmentassistanceintothefarmeconomyoverthelasttwoyears.Thelasttwoemergencybills,infact,weretacitadmissionsthattheFAIRActisalittlelessthanfairwhenthefarmeconomytakesaturnfortheworse.̀  ThereareotherstepsImtakingadministratively,whichdontrequirecongressionalapproval.Likefreezingloanratesforwheat,corn,soybeans,riceandcottonforthiscropyear.Werealsosettingupaprogramtoprovidelow-costfinancingforon-farmstoragefacilities,thusgivingfarmersthemarketingflexibilitythey_need.AndImalsoextendingthedairypricesupportprogramthroughthelifeofthecurrentfarmbill._  Itsnotpartofthesafetynetperse,butthePresidentalsoincludedinhis2001budgetthedollarsnecessaryforustocontinueimplementinglastyearsmandatorypricereportinglegislation.  Andtoday,IamdirectingtheAgriculturalMarketingServicetoconductareferendumontheporkcheckoffprogramandtopayforitwithUSDAfunds.  Asamatterofbasicfairness,Ibelievethatproducersdeservetheopportunitytovoteonthischeckoffprogram.Itis,afterall,amandatoryassessment,akintoatax,thatallproducersmustpayeveniftheydisagreewithit.  morē3 0/3 `  Thecheckoffderivesitslegitimacyfromthesupportofproducers,andporkproducershaveendureddramaticchangesintheirindustrysince1988,theyearthecheckoffwasestablishedandthelasttimeproducerswereabletovoteonthisissue.So,inadditiontoupholdingthebedrockdemocraticprincipleoftherighttovote,itisappropriateandnecessarytodeterminewhetheramajorityofporkproducersdo,infact,continuetosupportthecheckoff.   `     h      p      x    @   IwanttospendaminutetalkingaboutwhatIbelieveisthemostimportanttradeissuefacingtheagriculturecommunitythisyearapprovingpermanentNormalTradeRelationsandthuseasingChinasaccessiontotheWorldTradeOrganization.  Weretalkingabouttheworldslargestcountry,hometooneoutofeveryfivepeopleonearth,withaneconomygrowingat_7_Ԁpercentayear.Yetlastfiscalyear,everyman,womanandchildinChinaconsumedlessthan1dollarsworthofAmericanagriculturalgoods.Inoneyear_..._lessthanadollaraperson.Wecantaffordsuchlimitedaccesstoamarketthislargeandthisfertile.Chinasellsus$70billionintotalgoodsandserviceseveryyear;_we_Ԁsellthem$14 , billionworth...notaverygoodbalance.  InjoiningtheWTO,Chinawouldagreetoeliminatemanynontariffbarriersandtocuttariffsdramatically.Thetariffonfrozenbeefcuts,forexample,wouldfallfrom45percentto12percent.Cheesetariffswoulddropfrom50to12percent,andorangesfrom40to12.  LetmeemphasizethatwearenotbeingcomplacentinourdealingswithChina.WehavetobevigilantaboutmonitoringChinascompliance?+ 4 <DL!X?withitsbilateralagriculturalcommitments,aswellas_its_Ԁactionsonhumanrights,laborandotherissues.  Therearesomeencouragingsigns.Today,Chinahasannouncedapurchaseof50,000tonsofAmericanwheat.Thatincludes30,000metrictonsofsoftwhitewheatand10,000metrictonseachofhardredspringandhardredwinterwheat,alltobeshippedfromthePacificNorthwest.  Wehopethattherewillbemanymoresuchpurchasestocome.Infact,ifCongresspassesNTR...andifChinadoesjointheWTO,itwillmeananadditional$2billionayearintotalU.S.farmexportstoChinaby2005.Andthatsaveryconservativeestimate.  Ifwedontgodownthisroad,thenothernationswill.Itsadogeatdogglobalmarketplaceoutthere.Ifweunilaterallychoosenottotakeadvantageofnewoverseasopportunities,ourfriendsinEurope,Canada,AustraliaandArgentinawilleatourlunch.TheywillfilltheordersweloseandgainpermanentaccesstotheChinesemarket.  Goingbacktothesafetynet,Iseeourplanasthefirstword,notthelast.Itisnotaboutrigidfundinglevels,butaboutasetofideas,anewphilosophicalcompassthatcansteerustowardanewfarmbillin2002.  Ithinkitstimewebrokeoutofsomeofthefarmpolicyparadigmsandassumptionsthathavehemmedinourthinkingforseveralyears.Ivecomeupwith5broadprinciples!manyof L, +. themreflectedinoursafetynetproposal!thatIthinkshouldguidethenextgenerationoffarm <-,/ policy.  more 0/3 Є4s*  Thefirstisthatfarmprogramsshouldsupportfarmers,notjustcommodities.Inother   words,letsbaseourpaymentsandgovernmentassistanceonfarmincomeratherthancropprices.Afterall,itsincome!notjustprice!thatallowsfarmerstopaythebills,upgradetheir  equipmentandhaveadecentstandardofliving.Thecommoditydrivensystemwevehadfordecadeshelpssomepeople,butitallowsmanyotherstoslipthroughthecracks.Italsoseemstohavedonelittletostopthemassiveconsolidationweveseeninagriculture.Becausewhenfarmsupportisissuedonacropspecificorperbushelorperpoundbasis,thelargeryou_arethebiggeryourpayment_.  Second,weneedafarmpolicythatismorecomprehensiveandnationalinscope.Ivealwaysthoughtitwascuriousthatthe96FarmBillwassupposedtoencourageplantingflexibility,andyetwecontinuetohaveanarrow,sevencrop,regionalsystemthatdoesntsupportorrewardfarmersforbranchingoutintonewandspecialtycrops.0   (#(#   Itwasntuntillastsummersdrought,whichwascenteredintheNortheastandmidAtlanticregions,thatcertainpeoplelikethenationalmedia,forexamplebegantorealizethatthereareactuallyfarmersinthesepartsofthecountry.Infact,fromMainetoVirginia,thereare200,000farmers.Theytoodeservesupportandprotection,andoursafetynetbeginstoprovideit.  Sowhattoolsdoyouusetodirectmoreresourcesto_lesstraditionalgrowers_?Onewayistoshakeupourriskmanagementprograms,tomakethemmoreinclusive,whichismythirdprinciple.Underthefederalcropinsuranceprogram,westilldonothavetheauthoritytoprovideaffordableprotectionforlivestock,eventhoughranchersaccountforabouthalfofallagriculturalsalesandproceeds.Sooursafetynetplanincludesapilot_livestock_Ԁinsuranceprogram,whichIhopewecanexpandinthefuture.AnotherthingwewanttodoislifttheareawidetriggeronourNonInsuredAssistanceProgram,makingiteasierforfarmersofuninsurablecropstoreceiveassistanceafteramajorloss.  Fourth,conservationthepreservationofourlandandsoilmustbeacenterpieceoffarmpolicy,notanafterthought.Bycreatingincentivesforallfarmerstobeenvironmentallyresponsible,wecanincreasefarmincomeatthesametimethatweprotectournaturalresources.Thelandisnotsomethingthatcanbereplacedlikeapieceofmachinery.Weneedtorespectitaboveandbeyonditscropproducingcapability;_we_Ԁmustrecognizeitforwhatitis:_our_Ԁmostvaluablecommodityofall.Longafterthisyearscropisgrown,harvestedandsold_..._andthenextyearsandthenextyears...whatstillwillremainistheland.Wemusthandittothenextgenerationinasgoodashapeaswefoundit.Andwecandothatwhilestillhavinganagriculturesectorthatisproductiveandprofitable.  Myfifthprincipleinvolvesintegratingruraldevelopmentintofarmpolicy.Intodaysworld,mostpeopleinruralAmericacannotmakeadecentlivinginproductionagriculturealone.Iwishtheycould,butthefactisthatmanyfarmersneedtosupplementtheirincomewithofffarmopportunities;_often_Ԁthatstheonlywayforthemtostayontheland.Soweneedadiversifiedruraleconomy,onewhereentrepreneurshipcanflourish,onewith_soundphysicalandinformationinfrastructure_.Ruralcommunitiesmustalsohavethesolidtaxbase,thecleanstreets,thesafeneighborhoods,thegoodschools,theskilledlaborpool!everythingthatwould <-,/ makesomeone_want_Ԁtobringtheirfamilyorbusinesstoacommunity.  more 0/3 Є5B;  Ithinkyourconferencethemeof TheSpiritofRuralAmericacouldntbemoreappropriate.PreservingthespiritofruralAmericaiswhatfarmpolicyshouldbeallabout.WeneedtomakeruralAmericaaneconomicforceinthemodernworld,withoutlosingthatwhichmakesrurallifeuniqueaffordableliving,socialcohesion,recreationalopportunities,naturalbeauty,openspaceandsoon.  TheinformationagehasthepotentialtomakeruralAmericamoreeconomicallyviablethaneverbefore.Today,withtherighttoolswithamodem,afaxandonlinecapabilityyoudonthavetobeinamajorpopulationcentertodobusinesswiththeworld.Wejusthavetomakesurethatsmalltownsandruralareashavethesameaccesstothosetoolsthatthecitiesandsuburbshave.  Soanewfarmpolicymustgobeyondjustthewheatprogram,thericeprogram,thecottonprogramandsoontoaddressthemorefundamentalquestion:_how_Ԁcanwehelppreservethenationsagrariantraditionbyprovidingmoreruraleconomicopportunity,whetheritsinfarming,retail,tourismorInternetstartups?  Overthelast60years,agriculturehasbeendramaticallytransformed,andyetfarmpolicyhasremainedrelativelystagnant.Peoplegenerallydonotandcannotfarmthewaytheydidinthe1930sand40s,sogovernmentsroleinhelpingthemhastochangeaccordingly.  Thedayswhenmostfarmerscouldmakeendsmeetbysimplybringingbulkcommoditiestomarketareover.Thatswhyanewfarmpolicymusthighlightnewanddifferentwaysforfarmerstomakemoneyandcaptureagreatershareofthe_consumer_Ԁdollar.Thatmeanspromotingfarmcooperatives,directmarketingand_farmersmarkets_.Itmeansencouragingtheuseofcropsintheproductionofrenewableenergysources.Itmeansprovidinggreateropportunitiesforfarmersinvalueadded,consumerreadygoods,organicsandsoon.Itmeansnotjust freedomtofarmbutfreedomtomarket.Anditmeansgovernmentmustbetheretohelpensurethatthemarketsarefreeandcompetitivebyactivelyenforcingourantitrustandpricediscriminationlaws.  Ofcourse,traditionalrowcropfarmingwillcontinuetobetheheartofAmericanagriculture.Andthegovernmentwillcontinuetosupportthepeoplewhogrowtraditionalcrops.Butanewcenturycallsforamoreholisticapproachtofarmpolicy,onethatreflectsandembracesthediversityofAmericanagriculture.  Forexample,newimmigrantsfromplaceslikeSoutheastAsia,AfricaandLatinAmericaarefindingopportunitiesinagriculture.AndwhilemanyaresettlinginIowa,NebraskaandKansas,manyothersarepitchingtheirtentinplaceslikeVirginia,MassachusettsandWashingtonstate.Andtheyregrowingandexportingspecialtycropslikeapples,blueberries,strawberriesandwaterspinach.Shouldnttheyhavethesameopportunityforsupportastraditionalheartlandrowcropproducers?  Anewfarmpolicymustcontinuetocelebratefarmers,theircontributionandtheiruniqueroleinsociety.AnditmustdothatbyembracingamorecompletevisionoftheAmericanfarmer:_farmer_Ԁaseffectiveriskmanager...farmerasconscientiouslandsteward...farmerasboldinnovator...farmerasresourceful,multifaceted,flexiblebusinessperson.  mortee 0/3 Є6L  Lookingaheadtothe21stcenturythatsjustbegun,Ibelievethefutureforagricultureis   bright.Withinthenextquartercentury,weexpectthattherewillbe8billionpeopleonearth,manyofthemwithhigherincomesandmorevarieddietsthaneverbefore.AnewfarmpolicycanhelpAmericanfarmersreapthebenefitsofthisextraordinaryopportunity.  Butthatnewfarmpolicymustbeasfairandinclusiveaspossible.Itmustgobeyondcommoditybasedprograms.Itmustbenationalinscope,encompassingmoreregions,morefarmersandmore_crops_.Itmustbefocusedlessonhistoriccroppricesandbureaucraticformulas_..._andmoreonpeopleandtheirdreams.  Thankyouverymuch.  #