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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 f(c GLICKMANDangerfieldKilborndissingamazon.com"countercyclical AMTA WTO NTRbullseyejackassTelemedicineorganicsaquaculture NFUcommon-sensemulti-year((3$ !      0  (#$  0   d "$    1    _ԀLynnJensen:President,NationalCornGrowersAssociation(3$ !  'dxd( $ Figure  1  VZY I&mage <=8C HKKKK !  __ _,_j\6&"`z1% `E,,%y%y,,%j (#(#        (#(#  ReleaseNo.0072.00     XP6XXX\!XXP6Remarks  `  #\!'##X~XF#X{ XXX~0  AsPreparedforDelivery V (#(# #X~X XX{#  by ^2  U.Ss.SecretaryofAgricultureDan_Glickman_2000CommodityClassicMarch6,2000!Orlando,Fla.  . \Thankyou,Lynn% ##  1      .Itsapleasuretobewithyouinpersonthismorning,especiallysinceIve  onlybeenabletoaddressyouelectronicallyforthelastfewCommodityClassics.ImsuresomeofyouwerebeginningtowonderifIwasanythingmorethanadigitalimage.Iwouldhavelikedtospendalittlemoretimedownhere,whethertoparticipateinsomeofyoursessionsandactivities...orjusttocatchaBravesspringtraininggame.ButthefactisthatIcandoalotmoreforyoubyreturningtoWashingtontonightforanimportantmeetingaboutoureffortstopassPermanentNormalTradeRelations(_PNTR_)andeaseChinasaccessiontotheWorldTradeOrganization.IwanttospendaminutetalkingaboutthisbecauseIbelieveitisthemostimportanttradeissuefacingtheagriculturecommunitythisyear.Andfurthermore,itsanissuethathasimplicationsbeyondagriculture,andevenbeyondjusttradeandcommerce.Agricultureisverydependentonexports,morethantwiceasdependent,infact,thantheoveralleconomy.AndnonationoffersmoreexportpotentialandhasdeliveredfewerresultsthanChina.Weretalkingabouttheworldslargestcountry,hometooneoutofeveryfivepeopleonearth,withaneconomygrowingat7percentayear.Yet  lastfiscalyear,everyman,womanand #"$ childinChinaconsumedlessthan1dollarsworthofAmericanagriculturalgoods. Inone $#% year...lessthanadollaraperson.  %$& ButbyjoiningtheWTO,Chinawouldagreetoopenitsmarkettousasneverbefore.Theywouldcuttariffsdramatically,toapointlowerthanmanyofthoseleviedbyourtraditionaltradingpartners.Floridaoranges,forexample,wouldfaceonlya12percenttariff,asopposedtothecurrent40percent.Chinawouldbindthetariffsonsoybeansandsoybeanmealat3and5percentrespectively.Weexpectthattradeinsoybeanoilwouldbecompletelyliberalizedby2006.AndanewtariffratequotawouldallowChinesecornimportsofupto7.2millionmetrictonsatamere1percentdutyby2004.@'more ./.0 Ї@xx)2Onthenontariffside,Chinawould:eliminateexportsubsidies;capandreducetradedistortingdomesticsupport;lifttradebarriersthatcouchprotectionisminscientificallyquestionablehealthstandards;allowbusinesstobedonebetweenprivateindividualswithouttheinterferenceofStateTradingEnterprises.And,ofcourse,Chinawouldagreetoaccepttheauthorityofarulesbasedmultilateraltradingsystem.WellberighttheretoensurethatChinahonorsitscommitments.Passing_PNTR_ԀdoesnotmeangoingsoftonChinaandjustassumingthattheyllliveuptotheirobligations.Quitethecontrary.TheAdministrationintendstobevigilantaboutmonitoringChinasprogressandenforcingthetermsoftheaccessiondeal.Whenitsallsaidanddone,weestimate!conservatively!thatChinasaccessiontotheWTO \ 0   willmeananadditional$2billionayearintotalU.S.farmexportstoChinaby2005 .China L  willgofrombeinganetcornexportertoanetcornimporterbeforethedecadeisout,andthereseveryreasontobelievethatAmericanfarmerswillgetahealthyshareofthatbusiness.Whatsmore,fewerChinesecornexportswillmeanlesscompetitionforusinotherAsianmarketslikeKoreaandJapan.Itsthesamestoryinsoybeans,asWTOaccessionfigurestoincreaseaverageannualChinesesoycompleximportsby$171milliondollarsduringthenexttenyears.  Thisdealisreallyano_brainer_.ThefirstquestionmostAmericansaskwhenourtradenegotiatorsbringhomeanewagreementis: Whatdidwegiveup?Well,theanswerinthiscaseis: Absolutelynothing. BecauseourmarketisalreadyopentotheChinese,asevidenced  byourcurrent5to1tradedeficitwiththem.Thisisnotlike_NAFTA_,wherewehadto give in  orderto get .Inthiscase,alltheconcessionsareontheirside,andallthebenefitsareonours. p Wevegotnothingtolosebypassing_PNTR_ԀandbringingChinaintotheWTO.Perhapsmoreimportantly,wevegoteverythingtolosebyrejectingit.AmericanfarmersandworkerswouldlosethebenefitsofincreasedexportstoChina,whileChinasWTOconcessionswouldbeextendedtoourcompetitors.TheEuropeanUnion,Canada,Brazil,Japan,Australiaandotherswouldeatourlunch.Theydbemorethanhappytofilltheordersthatwelose,anditwouldtakeusyearstoregainanykindoffootholdinChina.Now,therearesomewhoobjectto_PNTR_ԀandtheWTOagreementbecausetheyreconcernedaboutChinashumanrightsviolations,ortheirlaxlaborstandards,ortheiraggressiveposturetowardTaiwan.Wesharetheseconcerns,andwereaddressingthemthroughappropriatechannels.Butinthelongrun,thesurefirewaytoensurethatChina doesnot changeistowalk #"% awayfromthisbilateralrelationship.IfwewanttoopenChina,ifwewanttoexposeChinatoourvalues...todemocraticprinciples...totheconceptofreligiousfreedom...thenwehavetobringthemintoarulesbasedglobalsystem. IfwehelpChinabecomeamoreopeneconomy, &%( eventuallytheywillbecomeamoreopensociety . 'p&) Asimportantasitistoboostexports,theresmoreatstakeherethandollarsandcents.WecannotcontinuetobetheworldsonlysuperpowerifwedisengagefromChinaatpreciselythemomentthatitstandsontheprecipiceofwholesalepolitical,economicandsocialreform.LetsrememberalsothatChinahasaccesstoweaponsofmassdestruction,thatChinaholdsthekeytopeaceandstabilityinAsia.Wesimplycannotaffordtoisolatesucharegionalandemergingglobalpowerfromtheworldstradingsystem.Forour nationalsecurity aswellasour /-1 economicsecurity,we haveto engageChina.  0.2 @'more_Ԅ_Ԉ 0/3 Ї  ӄ3***************Ofcourse,tradeisjustonepieceofthefarmpolicypuzzle.AccesstotheChinesemarketalonewontturnthefarmeconomyaround.Weretwoyearsawayfromthedraftingofanewfarmbill,butitsnottooearlytostartthinkingaboutwhatitshouldinclude.Infact,atthisverymoment,theHouseAgricultureCommitteeisholdingafieldhearinginLubbock,Texastobegintogatherideasfor2002.Inmyopinion,thecurrentfarmbillhasnotprovidedanadequatesafetynet.Sure,itwasworkingfinewhenpriceswerehighandglobaldemandwasstrong.Butwhenthebottomfelloutofthefarmeconomy,therewasverylittletheretobreakourfarmersfall.Forthelasttwoyears,whatCongresshasdoneishopethingsgetbetter...andwhentheydont...roundaboutSeptemberorOctober...simplydoubleAMTApayments.Now,thatmoneycertainlyhelpedalotofpeoplegetthroughtheyear.Buttherewasadesperate,adhocqualitytothisapproach.Itwasmoreofaquickfixthanarealsolutiontoadeepseatedproblem.Weappliedaveryexpensivetourniquet,whenthesituationactuallycalledforabloodtransfusion.TheClintonAdministrationsnewsafetynetproposalisdesignedtoprovidethattransfusion.Atitsheartisa multibilliondollarcountercyclical,targeted,incomeassistancepackage .Theidea  isthatthosefarmerswiththelowestincomes,thoseexperiencingthegreateststruggles,getthemosthelp.  ButIbelievethiscanbemorethanasafetynetproposal.Ithinkitcanbeaphilosophicalcompassthatsteersustowardanewfarmbillin2002.Ithinkitstimewebrokeoutofsomeofthefarmpolicyparadigmsthathavehemmedinourthinkingforseveralyears.Ivecomeupwith 5broadprinciples !manyofthemreflectedinoursafetynetplan!thatIthinkshould l@ guidethenextgenerationoffarmpolicy.Thefirstisthat farmprogramsshouldsupportfarmers,notjustcommodities .  Thatswhythe < incomeassistanceinoursafetynetplanistiedto income,notjustcommodityprices. Afterall, ,   itsincome!notjustprice! thatallowsfarmerstopaythebills,upgradetheirequipmentand  ! haveadecentstandardofliving.ThecommoditydrivensystemwevehadfordecadeshasdoneverylittletostopmassiveagriculturalconsolidationandthedepopulationofruralAmerica.Ourcountercyclicalincomeassistancewouldcomeinadditionto,notinsteadof,AMTAandotherfarmpayments.AMTAparticipantswillcontinuetoreceivetheirfullpayments,and98percentofthemwouldbeeligibleforanadditionalcheckunderourproposal.LetmealsobrieflymentiontwoadministrativeactionsthatImtaking,whichdontrequirecongressionalapproval.First,Iamfreezingloanratesforthe2000cropyearoncornandsoybeans,aswellaswheat,riceandcotton.Werealsomakinglowinterestfinancingavailableforonfarmstoragefacilities,sothatfarmershavethemarketingflexibilitytheyneed.Second,weneed afarmpolicythatisnationalinscope .Whatwehaverightnowisanarrow, L, +. sevencrop,regionalsystemthatdoesntsupportorrewardfarmersforbranchingoutintonewandspecialtycrops. ,.-0 @'more  0.2  0/3 Ї@xx)4Lastsummer,whenthedroughthittheNortheastandmidAtlanticstates,thenationwokeup,pickedupthenewspaperandrealizedthatthereareactuallyfarmersinthesepartsofthecountry.Nowtheironyisthattheeasterndroughtwasthecatalystforlastfallsemergencybill,buteasternproducersmanagedtogetonlyaverysmallshareofthoseemergencydollars.Nevertheless,foronce,thespotlightshoneonthe200,000farmerswholivefromMainetoVirginia.Theytoodeservesupportandprotection,andoursafetynetbeginstoprovideit.  Dontgetmewrong,Imnotproposingthatwetakeawayfromanyonegroupoffarmerstogivetoanother.Imjustsayingthatweneedsomerecognitionthatagricultureisa50stateenterprise.Notjustbecauseitstherightthingtodo...butbecause,quitefrankly,aregionalfarmpolicyinthelongrunispoliticallyunsustainable.Sowhattoolsdoyouusetodirectmoreresourcestolesstraditionalgrowers?Onewayisto <  shakeupourriskmanagementprograms,tomakethemmoreinclusive ,whichismythird , principle.Sooursafetynetplanincludesvariousideastomakeriskmanagementtoolsmoreaffordableandaccessible.Thatincludes:extendingthepremiumdiscountonbuyupcropinsurancecoverage;offeringmultiyearcoverage;makingcoverageavailabletomorekindsoffarmersandmorecommodities,includinglivestock;andexpandingourriskmanagementeducationprogram.WealsowanttolifttheareawidetriggeronourNonInsuredAssistanceProgram,makingiteasierforfarmersofuninsurablecropstoreceiveassistanceafteramajorloss.IwasverypleasedlastweekwhentheSenateAgricultureCommitteeapprovedabillthatisconsistentwiththesepriorities.WehadntseenmuchactiononcropinsurancesincetheHousebillwaspassedfivemonthsago.Butnowitlooksliketheefforthasbeen_jumpstarted_,andIhopethatcropinsurancereformwillbethelawofthelandbyyearsend.Ourfourthprincipleisthis: conservationmustbeacenterpieceoffarmpolicy,notan L  afterthought .Bycreatingincentivesforfarmerstobeenvironmentallyresponsible,wecan < increasefarmincomeatthesametimethatweprotectournaturalresources.Thelandisnotsomethingthatcanbereplacedlikeapieceofmachinery.Weneedtorespectitaboveandbeyonditsarability;wemustrecognizeitforwhatitis:ourmostvaluablecommodityofall.Sooursafetynetplancallsforanewprogramthatprovidespayments direct,notonacost "!$ sharebasis 󀄄tofarmerswhohelpcurberosionandprotectwatersuppliesfrompesticideand #"% nutrientrunoff.Amongotherthings,wealsowanttoraisetheceilingontheConservationReserveProgramto40millionacresandincreaseinvestmentstoprotectwetlandsandshieldfarmlandfromdevelopment.Myfifthprincipleinvolves integratingruraldevelopmentintofarmpolicy .Insteadofjustthe (`'* wheatprogram,thericeprogram,thecottonprogramandsoon,farmpolicyhastoaddressthemorefundamentalquestion: howcanwehelppreservethenationsagrariantraditionby l*@), providingmoreruraleconomicopportunity ,whetheritsinfarming,retail,tourismorInternet \+0*- startups?Today,manyruralAmericanssimplycannotmakeadecentlivinginproductionagriculturealone.Iwishtheycould,butthefactisthatmanyfarmersneedtosupplementtheirincomewith@'more 0/3 Ї@xx)5offfarmopportunities;oftenthatstheonlywayforthemtostayontheland.Soweneedadiversifiedruraleconomy,onewhereentrepreneurshipcanflourish,onewithroadsandbridgesaswellasstateoftheartinformationsystems.Ruralcommunitiesmustalsohavethesolidtaxbase,thecleanstreets,thesafeneighborhoods,thegoodschools,theskilledlaborpool!  everythingthatwouldmakesomeonewanttobringtheirfamilyorbusinesstoacommunity.Thankstoinformationtechnology,infact,theresactuallyneverbeenabetteropportunityforruralcommunitiestoclosetheeconomicgapthatseparatesthemfromthecitiesandsuburbs.Nolongerdoyouhavetobeinamajorpopulationcentertodobusinesswiththeworld.Withtherighttoolswithamodem,afaxandonlinecapabilityyoucandoitfromabarnyard.Wejusthavetomakesurethatsmalltownsandruralareashaveaccesstothosetools.ThatswhatPresidentClintonisdoingwithhisefforttoclosethe DigitalDivide,inwhichUSDAisplayingamajorrole.    L    ***************@Thebottomlineisthis:agriculturehaschangeddramaticallyoverthelast60years;itstimeforafarmpolicythatrespondsandadaptstothatchange.Simplybringingbulkcommoditiestomarketnolongerprovidesadequateeconomicstabilityformostfarmers.Today,aboutaquarteroutofeveryconsumerdollarspentonfoodactuallymakesitswayintofarmerspockets.Soweneedtogivefarmersmoreownershipinthemarketingandprocessingoftheircommodities.Thatmeansprovidinggreateropportunitiesinvalueadded,consumerreadygoodsandpromotingco_ops_,directmarketingandfarmersmarkets.Wehavetomakeiteasierforfarmerstopenetratenewmarkets,likeorganicagriculture,whichisworthnearly$5billion.Lookatthemarketthatethanolhascreatedforcorngrowers.Youknow,wheneverIhearsomeonebashethanol,Ithinktomyself: thisissomeonewhoneverhad \0 tostaredownthebarreloftwodollarabushelcorn .Weneedto buildon theethanolprogram, L  exploringpotentialusesofothercropsintheproductionofrenewableenergysourcesandindustrialgoods.ThePresidentsbudgetfornextyear,infact,includesaproposed$150millioninitiativetopromoteincreasedproductionof_biobased_Ԁfuels,includingethanolandsoybasedadditives.Wealsocannotaffordtobeafraidofbiotechnology.Itwillbeoneofthekeystofeedingtheworldinasustainablemanner.Butwemustalsodoabetterjobofeducatingpeopleastoitsbenefits.Wemustnever,everunderestimatetheimportanceofbuildingpublicconfidenceinthefoodsupply.AtUSDA,wehaverecentlyappointedanAdvisoryCommitteeonBiotechnology,toensurethatweregettingabroadrangeofadviceonthisissue.AndwevealsoaskedtheNationalAcademyofSciencestoconductareviewofourbiotechapprovalprocess.Anewcenturycallsforamoreholisticapproachtofarmpolicy,onethatreflectsthediversityofAmericanagriculture...onethatrespectsandsupportstheimmigrantfarmergrowingwaterspinachinMassachusettsjustasitdoesthegrainbeltfamilyoperationthathasbeenonthelandforfivegenerations.Anewfarmpolicymustcontinuetocelebratefarmers,theircontributionandtheiruniquerolein ,.-0 society.AnditmustdothatbyembracingamorecompletevisionoftheAmericanfarmer:@'more 0/3 Ї@xx)6farmeraseffectiveriskmanager...farmerasconscientiouslandsteward...farmerasboldinnovator...farmerasresourceful,multifaceted,flexiblebusinessperson.Butthatnewfarmpolicymustbeasfairandinclusiveaspossible.Itmustgobeyond  commoditybasedprograms.Itmustbenationalinscope,encompassingmoreregions,morefarmersandmorecrops.Itmustbefocusedlessonhistoriccroppricesandbureaucraticformulas...andmoreon people andtheir dreams .  Thankyouverymuch.  ###