by

Deputy Secretary of Agriculture Jim Moseley

Soil And Water Conservation Society

Annual Conference

Indianapolis, Indiana - July 15, 2002

(As prepared)

“Jan, thank you very much. I hope the Lieutenant Governor, and everyone who’s given this audience such a warm welcome, won’t mind if I add my own Hoosier greetings.

“My thanks to the many wonderful people whose planning and commitment stand behind this program.

“Let me single out Executive Vice President and USDA alumnus Craig Cox for his leadership, and for bringing us all together as friends of the nation’s working lands.

“I greatly appreciate the opportunity to be among so many professional conservationists.

I feel a little like the man who entered his mule in the Kentucky Derby. His friends asked whether he thought the animal really had a chance to win the race.

“The man replied, “No, but I feel the association will do him good.”

“I can tell you, from my own close working relationship on the farm with my local conservation experts -Mark Eastman, NRCS district conservationist, and Dave Swain, private consultant - that the association has always done me “good.”

“In fact, way beyond “good”. It’s been critical to my operation. And because I”ve worked so closely for so long with conservation experts, I know the kind of responsibility you’re facing with the new farm bill.

“As Bruce stressed, implementation is not only key to success, it’s as big a job as getting the legislation passed in the first place.

“This audience -- representing the leadership of federal, state, and local conservation agencies, as well as private citizens -- will largely shape what happens to the farm bill at the ground level.

“In the words of Will Rogers, “Even if you’re on the right track, you’ll get run over if you just sit there”

“It will largely be up to you to make sure that, as a nation, we move the conservation title into action, at the local level, and do it well.

“I want to take this opportunity to thank you for the knowledge, expertise, and dedication that you’ll be investing in this effort.

“At this important hour for U.S. conservation, I want to recognize the Society’s influence on the farm bill.

“And I want to note the irony, as we go about the business of making this landmark investment in conservation’s future, that Mother Nature is replicating the past.

“Sweeping America’s mid-section are the very conditions that led to the programs of the 1930s whose legacy we seek to build on and recast for a new age and time.

“As this drought, the most devastating in more than a century in some areas, conjures up images of the Dust Bowl, we stand on the edge of the most significant commitment of resources toward conservation on private lands that this Nation has ever made.

“My thanks to the Society for your role in that commitment.

“Seeking Common Ground” isn’t some quickly graded “report card” on conservation in the Farm Bill. The Society did its homework and we’ll all benefit.You held workshops across the country. A lot of work and thought went into your 22 recommendations and we appreciate it.

“The new title came out a “Step “head” on some counts, but you also see some “Missed Opportunities.”

“On balance, I think we agree that we’ve arrived at legislation that will strengthen existing programs -- our mutual goal -- and emphasize the conservation of working lands.

Before I get into some of the details of the conservation title, I’d like to say a few words about the overall legislation.

FARM BILL

As President Bush has said, the Farm Security and Rural Investment

Act of 2002 isn’t perfect, but it reflects a compromise agreement.

This is a 410-page bill with 10 separate titles that literally touch every American, through programs on trade, nutrition, credit, rural development ... on research, forestry and energy . as well as conservation.

“Whatever else may be said about it -and this legislation will probably generate debate for years -the bill is compassionate, increasing nutrition support for the lowest income Americans.

“This bill is a first in that it provides an energy title that will help us look to agriculture for renewable sources of energy.

“This bill is an investment in value-added agriculture. It provides new money and new programs to address needs and concerns in production agriculture and rural areas. Much good can come from this.

“And this bill is a target.

“Criticism from foreign governments and the press, domestic and foreign, has focused on a range of longstanding issues for farm programs and policy -from the cost of the bill, to its potential to distort production.

“With criticism aimed largely at the commodity title, it’s important to balance the discussion with a few key points.

“First, the commodity title provides a strong and reliable safety net for producers that’s more closely tied to the performance of the farm economy. It helps reduce reliance on the kind of supplemental assistance that we’ve looked to in recent years ... emergency aid that cost taxpayers more than $30 billion.

‘In this sense, the legislation corrects a weak point of the 1996 farm bill.

“Second, the level of commodity support is consistent with support in recent years. To be specific, CBO projects $69 billion for commodity program spending in the next four years, compared to $72 billion over the last four.

“Third, income and price support will continue to be largely decoupled from current production. Because much of the added support won’t depend on the level of planted acreage or production of a particular crop, it’s unlikely that this will be a strong incentive to expand production.

“Fourth, this new farm bill is compatible with our existing trade agreements.

“There’s no question that it authorizes additional payments to producers that will be subject to discipline under the WTO. But it also provides Acircuit breakers” requiring the Secretary to limit payments if they violate our WTO obligations.

“We have the commitment and the tools to make sure our domestic farm policy is consistent with our international obligations.

“And fifth, the bill rebalances loan rates for grains and oilseeds. The result is less incentive to expand soybean area at the expense of other crops.

CONSERVATION

“Beyond the commodity title B and only one of the 10 deals exclusively with farm income and price support programs B this bill is loaded with opportunity for America.

“What it achieves in conservation, in my view, goes way beyond the level of support provided B according to the Congressional Budget Office, $17.1 billion over the next ten years in new mandatory funding -- to what this investment says about us as a nation.

“To put this in some context ... in the 1930s and >40s, when we were fighting to turn back the soil erosion crisis, USDA, state, and local conservation programs spent about $5.6 billion (in 1996 constant dollars) on agricultural conservation, most of it on financial assistance for private land stewardship.

“Compare that to a 1996 level of about $2 billion in conservation funding, half of which went to land reserve programs and half to technical and financial assistance programs.

“This farm bill speaks volumes about how we’re approaching environmental concerns in ways that work for landowners and society.

“Philosophically, the bill reflects much of your vision B and ours. In your words, it Acreates the greatest opportunity for conservation on private land since 1985.”

“As we said last fall in our farm bill principles, policy must accommodate new and emerging environmental concerns.

“The fact is, as we enter this century B and the farm bill reaffirms this B we must not only invest in the protection and stewardship of the entire landscape, but recognize the links among clean air, clean water, productive soils, and the quality of life our citizens expect.

“For these reasons, we offered a Aportfolio” approach to conservation as an alternative to a one-size-fits-all strategy that can’t possibly tackle specific problems on specific farms ... a comprehensive package that serves the environment while balancing 21^st century needs and demands.

“To protect the Nation’s working agricultural land, the legislation provides:

$ $600 million over six years for the Farmland Protection Program

$ authorization to enroll up to two million acres of farmland in the new Grasslands Reserve Program

$ an increase to $360 million over six years for the Wildlife Habitat Incentives Program

$ and B the most dramatic growth B $5.5 billion over six years for the Environmental Quality Incentives Program.

"It also makes significant increases in acreage caps in land retirement programs -- the Conservation Reserve and Wetland Reserve.The bill, in other words, holds onto traditional conservation goals, like soil erosion, while tackling head-on issues faced by today’s producers B from carbon dioxide emissions to nutrient runoff.

“A fact of 21^st century life is agriculture’s tenuous relationship with its urban neighbors.

“Here in Indiana, the focus on animal feeding operations will intensify as development pressures increase competition for scarce land and water resources.

“Environmental issues connected to animal agriculture continue to escalate. In the >80s and >90s, concerns centered on water quality.

“Now they include greenhouse gas emissions, air quality, and non-nutrient components in animal waste.

“And in states like Indiana, where programs are being revised to address the potential environmental risks of AFOs, flexibility is a big issue. Flexibility lets states implement their most effective program for managing CAFOs.

“What this farm bill does is build flexibility into the law. Increased funding will help producers address diverse concerns, on a whole farm basis, in a way that works economically.

“The bill helps assure partnerships and attention targeted to the local level. It encourages innovation ... like market systems for reducing pollution. And it recognizes good stewardship.

“The new Conservation Security Program will pay producers who have historically practiced good stewardship and offer incentives for those who want to do more.

“This is the largest new program in the title. Because it doesn’t start until 2003, we have the time to do it right, and we’ll reach out to bring a wide range of views into the process.

“Finally, the legislation recognizes conservation as everyone’s work. It envisions USDA using qualified third parties, such as certified crop consultants, to help deliver these unprecedented conservation provisions.

Now that we’ve moved from the halls of Congress to USDA, the focus shifts to implementing the bill as effectively and efficiently as possible. It’s a tremendous challenge.

As Bruce noted, we’ve already started cutting red tape by letting NRCS and FSA B which administer EQIP and the CRP, respectively B move forward on decisions without having to get the other’s OK. This will save time at the county level, streamline the process, and mean faster action for America’s farmers and ranchers.

This is the kind of teamwork and efficient decision-making you’re going to see out of USDA as we get the benefits of the new law to farmers and ranchers this summer.

When it comes to regulations, our slogan is “less and local.”

We believe that less is more and we believe in delegating as much authority as possible to achieve maximum local control.

“The rulemaking process will be collaborative and we’re moving it along quickly to get these rules in place.

“Apart from regulations, programs, and dollars, the real end-products of this title B if we do our job right- will be efficiency, flexibility, and innovation. We’ll achieve strides in conservation by making sure more producers have access to the programs that make them partners in the stewardship of private land.

“In many ways, what we’re doing reminds me of something I read recently about geese flying in their traditional >V’ formation.

“Have you ever watched them? Two engineers learned that each bird, by flapping its wings, creates an uplift for the bird that follows. Together, the whole flock gains something like 70 percent greater flying range than if they were journeying alone.

“No one’s journeying alone.

“We all share in the opportunity of the 2002 farm bill. There are hurdles, to be sure. But this farm bill represents, on the whole, a tremendous opportunity to do good for agricultural landowners, for the future of America’s private lands and for the American people. Thank you.

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