of

Secretary of Agriculture Ann M. Veneman’s remarks to

The Commodity Classic

Nashville, Tennessee

February 22, 2002

SECRETARY VENEMAN:

“Thank you. Thank you all very much. I really appreciate that kind introduction. This is a very strange setting. I can't see you but I can see me. That's--it's really kind of disconcerting here; but I'll do the best I can!

“It is truly a pleasure to be here with you, and to be, to receive such a warm welcome. I really appreciate that and we really appreciate the work that your associations do in Washington, and we appreciate their leadership and our ability to work so closely with them.

“I first want to introduce the folks that walked out with me today. We have been engaged, this year, in a new initiative called Leaders of Tomorrow, and everywhere that I go, I am taking or trying to have join us local 4-H and/or FFA folk, to experience a day with the Secretary, and it is our attempt to provide some mentoring to young people.

“We're also going around the country and speaking to various high schools and talking about the future of food and agriculture as part of this initiative and we kicked that off in Ohio, just a few weeks ago.

“So I'd like to welcome today, Rebecca Lemley from the 4-H, and Landon Loveall from the FFA, and we thank you so much for joining us today, and this week happens to be National FFA Week, the week of George Washington's birthday is National FFA week, and so we salute FFA in that regard as well. It's also the 100th anniversary of 4-H. So join me in welcoming these young people. [Applause.]

“President Bush sends his best wishes, and I want to share with you, after serving in his Cabinet for just over a year now, that this President truly understands the importance of agriculture and the value of our nation's farmers and ranchers.

“I have to tell you what an honor it is, serving in his administration, and I hope all of you will agree with me that he is doing a great job. [Applause.]

“One of the first things you learn when you're in an administration is everybody has advice for you. So one day I ran into this gentleman and he was telling me, he says---he was just remarking on what an honor it is to be serving the country at such an important time in history, and he said, "You know, we need to prepare our men and women better during this war. We need to teach them to fight hard, to do everything to win, and to use the enemy's own tactics to defeat them."

I said to him, "Well, sir, that's exactly what the President is doing in fighting terrorism."

He said, "Terrorism?" He said, "I'm talking about Olympic figure skating." [Laughter.]

“As you know, the President has been very busy, lately, leading this war on terrorism, and he has enjoyed a strong and unified showing of support from the American people, from all of you, and I want to thank you for your support, for the support not only of the President, but for our troops who are fighting for us all around the globe, and for the entire fight against terrorism.

“Today, America does stand tall and everyone in our Cabinet is extremely involved in the war on terrorism. I'm sure that it's something you've all been hearing about, and I want to talk about the issue, for a moment, of homeland security.

“These are two words that we rarely heard used together before September 11th. But, now, not only are these words etched into the minds of Americans, but homeland security is a top priority of the President and of the federal government.

“The U.S. Department of Agriculture has an important role to play in protecting our food and agriculture sector, not only from unintentional threats, but, now, since September 11th, also from intentional threats to our food supply.

“We have been working very hard on this at the USDA, in conjunction with Governor Ridge and the new Office of Homeland Security, and it's about working with our partners in the states, with other federal agencies, in the private sector, to ensure that we do everything we can to protect our food and agriculture industry.

‘The President has made this a very high priority. In his budget, we asked for $146 million in new spending for homeland security protection through the USDA budget that was just released last week for FY 2003.

“And as part of the Defense Supplemental Appropriations Act, which the President approved just a few weeks ago, there was an additional $328 million for USDA homeland security efforts.

“Now, I can tell you that the President understands the importance of not letting our enemies use our food supply as a weapon, and, by the way, that doesn't have anything to do with his recent battle with the pretzels. [Laughter.]

“Beyond homeland security, I know you're all concerned about the Farm Bill. The President has clearly outlined, and, most recently, at the National Cattlemen's Beef Association Convention, the principles of what he wants to see in a Farm Bill. He has called for a Farm Bill that is generous but affordable, one that provides our farmers with a safety net while not encouraging overproduction.

“The President's budget, which was released earlier this month, reflects the administration's commitment to the budget agreement reached with the House and Senate last year.

“So in the 2003 budget, a ten-year number reflecting the $73.5 billion is included over a ten-year period.

“The President also wants a Farm Bill that is consistent with our trade obligations, one that doesn't violate our commitments under the World Trade Organization, and speaking of international trade, we need to continue opening new markets while making sure that other countries live up to their trade obligations.

[Applause.]

“Last year, when China was admitted to the WTO, it was a major success for America's farmers, and it opens up the largest market in the world for our products. But we must not let regulatory barriers, such as the proposed regulations on biotech, restrict our exports. Regulation--

[Applause.]

“Regulations need--the regulations need to be based on sound science. President Bush is on his way home, right now, from his Asia trip, and he raised this issue of biotech regulations when he was meeting in China, and we will now send a team next week, again, to further the discussions on this issue. We know how important this market is to the soybean industry of America, and this administration is going to continue to fight to keep this market open.

[Applause.]

“In addition to China, the European Union has restricted, for a number of years, new products of biotechnology into their market, and we are going to stand strong and make sure that these, and other countries, keep trade open, and keep working to eliminate such unfair trade practices.

“That brings me to another topic. That is Trade Promotion Authority. The President's deeply appreciative to both of the organizations here today for your unwavering support of granting Trade Promotion Authority, so that we can continue to negotiate trade agreements that will open up new markets.

“Since the so-called fast-track authority expired in 1994, the United States has sat on the sidelines as other countries have shaped trade deals that benefit their farmers and workers.

“Another priority of the administration in shaping the new farm bill is conservation. Those who work the land are the most reliable and effective stewards of the land. A good conservation policy enables growers to make better decisions.

“We want to strengthen the programs that encourage producers to be innovative in protecting the environment, and in helping on working farmlands. Farming is a difficult business and it's filled with risks such as weather and fluctuating prices, and that's why the President wants to include in this farm bill a farm savings account, which will provide another tool for farmers and ranchers to manage risk.

“These would work like a special 401(k) savings account for ag producers. This is the kind of innovative and good idea we need to see as we move farm policy forward.

“It complements other farm programs, and provides a tool for farmers to help manage the year-to-year risks that you all face.

“Now the farm bill that went through the Senate last week is of some concern to us. While the senators did reach a consensus on some titles of the bill, there are many areas where, in our opinion, they missed the mark.

“Of particular concern is the fact that the Senate bill front-loads spending for the first five years, thereby shortchanging programs in the long term and jeopardizing the baseline for farmers and ranchers in the out-years.

“We think that a five-year bill needs to provide the amount of spending equally over the amount of time of the bill, and it does not undermine what farmers and ranchers will have in the long term.

“It's going to be a very formidable challenge for the conference committee to reconcile all the differences between the two bills, but their work will have a significant effect on the farm sector for years to come.

“In the weeks ahead, we're going to be actively working with all of the conferees, with Chairman Combest and Congressman Stenholm, and Chairman Harkin and Senator Lugar, all the other conferees, as well as the farm commodity, conservation and nutrition communities. Our goal is to get a good farm bill that the President can sign, a solid, good policy bill, and then we stand ready to implement it quickly and efficiently.

“Just as we did last summer, when we had the $5.5 billion in supplemental assistance, and we were able to send out the first check just one day after the President signed that bill into law.

[Applause.]

“We've been working with our team at USDA to prepare for the implementation of the new Farm Bill. We know that there will be certain issues that we can already anticipate, and our people are preparing for that.

“Another priority of the President's that I want to discuss today is energy. President Bush is the first leader in a generation to propose a long-term energy policy. There is no group in the agriculture community who understands or has done more for a sound energy policy than corn and soybean growers, with alternative fuels such as ethanol and biodiesel, and we worked hard in the administration to further these renewable fuels, to expand their viability in the marketplace.

“In December, I visited Minnesota and was driven around the state in an

ethanol-powered SUV. But just a few weeks ago, I was in Ohio, and there, the corn growers provide their state president of the FFA with a ethanol car for the year. It's the envy of the FFA here, I might add. But I had a chance to drive around with four members of the state leadership, four young women from Ohio, in the ethanol-powered car, provided by the corn growers in Ohio, and it was truly a treat as we were mentoring those young people that day.

“There are several biodiesel projects for which the USDA has provided grants to help it follow ethanol's lead, and this administration will continue to look at new opportunities to advance alternative uses for agriculture.

“Now as you all know, last year, the governor of my home State of California was very persistent in asking for a waiver from the state's clean air fuels requirement. But the President didn't grant that waiver. He stood firmly on the side of ethanol.

[Applause.]

“The ironic thing is that the day after the decision was made by the President, I was sent to California. [Laughter.]

“But we defended it and made sure that the consumers in California understood, that despite what the governor was saying, this was not going to have a significant impact on their gasoline prices.

“So the decision of the President was the right one, and we are going to continue to support biofuels in this country.

“The energy policy has a specific provision that talks about the role of renewable fuels. So we're committed to continuing to work with your industries, and to expand the use of these fuels as an integral part of our policy.

“We just need to also make sure that the U.S. Senate gets the message. The House has moved on the President's energy plan and the Senate needs to act on this important priority for our nation and our farmers.

“The energy bill that's now pending before the Senate has in it a renewable fuel standard. If this standard were to become law, it is estimated that ethanol use would triple over the next decade, a dramatic increase in a domestically produced renewable fuel that reduces carbon monoxide and toxic air emissions.

“There are many other examples of alternative uses. Yesterday, I spoke to our outlook conference, and I used one involving your industry. There's a new enterprise, a combination of Cargill and Dow, that has built a bio-refinery in Nebraska that uses dextrose to produce textile fibers and plastics.

“This truly amazing fabric is now being commercially produced from corn and has a better dye holding, and other characteristics than traditional synthetic fibers. Cargill-Dow now believes that we are not too far away from bringing cellulosic--I can't say that word right--cellulosic crops in one door of a bio-refinery, and fiber and plastic out the other.

“Recently, I joined the President when he visited the John Deere plant in Moline, Illinois, and I was surprised during that visit, to learn from the John Deere management, that the 2002 combine models now contain panels that are made from corn and soybean polymers. So that the combines you're now using in your fields are being partially made from the products that you produce in your fields.

“Science and technology are changing every aspect of our lives. Technology is changing the way food is produced, the way it's marketed, the way it's distributed in this country, and all around the world.

“Just look at the way that medicine and biotechnology are coming together, spurred on by the mapping of the human genome. In the not-too-distant future, we will be producing even more new crops and products that will help heal and make people healthier. All of these will create tremendous new opportunities for our farmers.

“The Bush administration and the U.S. Department of Agriculture will continue to help you seize those opportunities. The President often says that the values of America's farmers embody the spirit of America. Hard work, love of the land, giving a neighbor a helping hand, and a willingness to take risks.

“Yesterday, when I spoke to the USDA Ag Outlook Forum in Washington, D.C., I talked about a new era of resourcefulness and partnerships in agriculture.

“It is an exciting time for U.S. agriculture. While the current climate for agriculture has been hampered by everything from natural disaster to the events of 9-11, to slowing U.S. and global economies, and continued slow growth and demand for ag products, I, for one, continue to be bullish on American agriculture.

“We have a lot of work to do, but I believe the future holds tremendous promise. But that promise can only be cultivated through a new generation of leaders and an innovative approach to farm and food policies.

“We will continue to pursue policies and thinking that helps cultivate the next generation of farmers, ranchers, and food producers, so that we can grow our farm economy by continuing to produce the best, most efficient, and technologically-advanced products anywhere in the world.

“Thank you all very much for having me here today. Thanks for all you do for our great country. God bless all of you and God bless America”

[Applause.]

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