textfiles/politics/agri.wh

August 6, 1992


                  PRESIDENT BUSH ON AGRICULTURE


     "The quantity and variety of goods that fill our Nation's
     grocery stores are unparalleled -- a shining testament to
     the ingenuity and productivity of the American farmer."

                                   President George Bush
                                   November 20, 1991


     "Today, the trade practices of the European Community hurt
     American farmers.... I am not going to put our farmers at an
     unfair disadvantage.  Sooner or later, the EC must stop
     hiding behind its own iron curtain of protectionism. 
     Meanwhile, we will remain leaner, tougher and more
     competitive."
                                   President George Bush
                                   January 13, 1992



Summary

o    President Bush is committed to ensuring that our farmers and
     ranchers can compete in the world marketplace.  The
     President has worked hard to provide greater flexibility for
     our farmers, promoting new uses for agricultural products,
     opening markets for farm exports, and helping to mitigate
     undue burdens of regulations. 

o    Under the Bush Administration, nominal farm income has
     reached a record high, and farm debt has fallen by one-
     third.  At the same time, farmers are now receiving more and
     more of their revenues from markets, instead of the federal
     government. 

o    In November 1990, President Bush signed into law the market-
     oriented 1990 Farm Bill.  The President vigorously pursued
     this bill which builds on the successes of the 1985 Reagan
     legislation.  This program will keep American farmers
     competitive in world markets, assist farmers in their
     efforts to conserve soil and water and stabilize farm income
     and the U.S. food supply.
Agricuture -- page 2


Increasing Farm Income

o    Under President Bush, farm income is at record levels. 
     Government support through farm programs, the reduction in
     the debt load of farmers, increased international markets
     due to aggressive market opening and export programs, and
     President Bush's position on reducing interest rates all
     contributed to the expansion in farm income.

     --   After adjusting for inflation, it is estimated that net
          farm income for the period 1989-92 will be 14 percent
          above the previous four year period.  Agriculture sales
          and gross cash receipts have increased $16 billion
          since President Bush took office -- to $167 billion. 
          At the same time, government payments to farmers have
          fallen as farmers have received more money from private
          markets.

     --   In 1984, farm debt was $194 billion; by 1991 it had
          fallen to $123 billion (forecast).  Lower interest
          rates combined with declining farm debt have
          significantly improved the financial position of
          farmers.

     --   Farmers' equity has grown by $45 billion in the three
          years from 1988 to 1991.  As farmers continue to cut
          debt and increase assets, about 60 percent of the
          equity decline which took place in the first half of
          the 1980s will be regained by the end of 1992.


Maintaining Farm Program Support

o    President Bush's major domestic farm policy challenge during
     his first term was the 1990 Farm Bill.  The President led
     the effort to maintain support for America's farmers while
     achieving the Congressionally mandated reduction in
     agricultural subsidies and government costs.

     --   To offset the effects of lower government expenditures,
          the Bush Administration advocated the concept of
          "planting flexibility," which lowered the restraints on
          cropping choices.

     --   Greater flexibility has made U.S. agriculture more
          competitive in global markets.

     --   In 1992, farmers used their new freedom to plant over 8
          million acres to alternative crops.
Agriculture -- page 3


     --   The market-oriented Farm Bill provisions are raising
          farm productivity and efficiency and helping farmers
          earn more in the marketplace, thereby reducing their
          reliance on government payouts.  At the same time,
          vital support continues.


Reducing the Burden of Agricultural Regulation

o    In his State of the Union address in January, President Bush
     vowed to eliminate unnecessary regulations that impede
     economic growth and accelerate implementation of those that
     promote growth.

o    On March 19, the Bush Administration announced a package of
     agricultural regulatory changes totaling $1 billion in
     economic benefits.  These initiatives range from ways to
     reduce compliance costs for nutritional labeling of meat and
     poultry products to streamlining the application procedures
     for FmHA farmer loan programs to speeding up a new loan
     program for beginning farmers.

o    The President's directive to get the government off the
     backs of farmers continues to succeed.  In recent weeks,
     rule changes have reduced the number of trips that are
     necessary to local USDA offices.  Other changes include
     flexibility in enrolling wetlands in the Conservation
     Reserve Program and making the Export Enhancement Program
     and Export Credit Guarantee Programs easier for exporters to
     use.

o    The President recognizes that unduly burdensome regulations
     are a brake on economic progress for U.S. farmers. 
     Significant headway is being made to dismantle such rules to
     put money back into farmer's pockets instead of wasting it
     on unnecessary compliance costs.  


Promoting Agricultural Trade

o    President Bush is committed to breaking down trade barriers
     and opening new markets around the world.  Agricultural
     exports are up, topping $37 billion in 1991, and are
     expected to reach $41 billion with an $18 billion surplus in
     agriculture trade this year alone. 

o    The President has successfully negotiated expanded markets,
     such as agreements on beef and citrus exports to Japan and
     similar dropping of barriers in other growing Asian markets.
Agriculture -- page 4


o    The President has worked to reduce the unfair agricultural
     subsidies of our competitors through the GATT negotiation
     process, and other diplomatic and economic efforts.

     --   The U.S. oilseeds case against the EC has twice been
          judged by the GATT in our favor; however, the EC has so
          far refused to change their unfair policies toward U.S.
          oilseed producers.  While we continue to negotiate with
          the EC within the framework of the GATT, we are
          prepared to use all our trade remedies should the EC
          not bring its policies in line with GATT requirements.

o    The President has extended agricultural credits guarantees
     to Russia and other nations of the former Soviet Union to
     meet their needs in this critical time.  The U.S. has made
     available $4.85 billion in credit guarantees for the
     purchase of U.S. agricultural goods to the former Soviet
     republics and up to $165 million in food aid.  This will
     help increase farm income and retain important markets.

GATT Uruguay Round:

o    President Bush has led the world in pushing for global
     reform to open markets in the Uruguay Round negotiations of
     the GATT.  Foreign markets absorb 20-25 percent of U.S.
     agricultural sales.  A successful agreement could expand
     farm exports by $4 to $5 billion by the year 2000.  This
     would add $5 billion in farm cash receipts, reduce federal
     outlays by $2 to $3 billion, add 40,000 to 60,000 new U.S.
     jobs in the food and agriculture sector, and require only a
     few changes in U.S. domestic support programs.

o    Agricultural reforms in the Uruguay Round would mark an
     historic departure from the costly protectionist measures
     that have restrained agricultural trade growth, largely
     outside GATT disciplines.  These reforms would have
     significant benefits for farmers, taxpayers, and consumers
     in the United States and the rest of the world.  They will
     help to level the playing field for U.S. farm exports and
     will provide fair import safeguards for U.S. farmers.

o    President Bush, supported by other GATT members, has
     demanded that any final GATT agreement include a commitment
     by all parties, including the EC, to significantly reduce
     trade barriers and to require their farmers to compete
     fairly in the world market.  
Agriculture -- page 5


     --   The Bush Administration has aggressively focused and
          spent $850 million so far this year on the Export
          Enhancement Program (EEP).  This program is
          specifically designed to counter the EC's massive
          export subsidies and maintain pressure to negotiate a
          settlement.

     --   This commitment demonstrates that the Bush
          Administration is determined not to reduce these
          subsidies unilaterally, and put U.S. farmers at a
          tremendous disadvantage to subsidized competitors.

o    The EC's recent reform of its Common Agricultural Policy
     could promote further progress on the GATT.  CAP reform
     alone, however, does not resolve the problem of the EC's
     unwillingness to reduce export subsidies.  The EC must take
     further steps to join the rest of the world in reducing
     subsidies and opening its markets to competitive trade.

North American Free-Trade Agreement (NAFTA):

o    President Bush has been at the forefront of negotiating a
     fair free-trade agreement with Mexico.  With nearly 90
     million consumers and an expanding economy, Mexico will
     provide a vital and expanding market for U.S. agricultural
     products.  NAFTA offers a total market of 360 million
     people.

o    U.S. agricultural exports to Mexico have almost tripled
     since 1986 to a record $3 billion in 1991.  The U.S. is
     currently the largest supplier of agricultural products to
     Mexico.  Under a NAFTA even more can be done since Mexico's
     remaining trade barriers are still higher than those of the
     U.S.  (Mexican tariffs on U.S. products average about 11
     percent while the U.S. tariffs are only about 4 percent.)

o    President Bush firmly supports the development of a strong
     NAFTA agreement which will secure further export
     opportunities for agricultural products to Mexico.  A NAFTA
     will provide adequate transition provisions for U.S.
     producers.  This will include import safeguards and long
     term phase-in periods for sensitive crops to avoid severe
     impacts on any commodity or industry.

o    At the same time, the Administration will ensure that health
     and safety standards are not relaxed on food imports.  The
     U.S. will maintain the right to exclude any products that do
     not meet U.S. health or safety requirements and willAgriculture -- page 6


     continue to enforce those requirements.  President Bush
     seeks a commitment to work together with Mexico to enhance
     environmental, health, and safety standards regarding
     products and to promote their enforcement.

Trade Agreements in Asia:

o    The largest region for U.S. agricultural export market is
     Asia, accounting for 44 percent of farm exports in fiscal
     year 1990-91.  In that year, U.S. sales of agricultural
     products to Japan (our largest single market for farm
     products) totalled $7.7 billion; sales to Taiwan were $1.7
     billion.  However, there are still many trade restrictions
     facing the U.S. agricultural industry.  President Bush has
     actively pursued trade agreements to open Asian markets.

     --   A 1990 agreement was negotiated with South Korea which
          will completely open its beef markets to the U.S. by
          1997.  Currently, South Korea is the third largest
          market for U.S. beef.

     --   An agreement with Japan led to a complete lifting of
          quotas on beef imports on April 1, 1991.  The U.S. has
          increased its beef exports to Japan from $557 million
          in 1987 to $889 million in 1991.
     
     --   A 1990 agreement with Japan on processed wood products
          will increase exports by $1 billion.


Promoting New Uses for Farm Products

o    The Administration is supporting a growing effort to expand
     nontraditional markets for farm and forestry products. 
     Markets for fuels, lubricants, biodegradable materials,
     inks, and pharmaceuticals offer tremendous potential for
     American agriculture.  Expanded markets will increase farm
     income, create economic opportunity in Rural America, help
     achieve a cleaner healthier environment, and reduce our
     reliance on foreign oil.

     --   Funding for activities in these areas has increased
          substantially.  The President has requested that
          Congress more than double funding for the Alternative
          Agricultural Research and Commercialization Center
          (AARC) in FY 1993 from $4.5 million to $10 million. 
          AARC's mission is to facilitate the movement of new
          technology and nontraditional products from the
          laboratory and testing phases into the marketplace.  
Agriculture -- page 7


     --   USDA's Agriculture Research Service (ARS) is increasing
          its effort in the area of new uses.  Funding requested
          for FY 1993 is $5 million higher than FY 1992.

     --   Products and materials made from crops are generally
          environmentally friendly and safe to handle. 
          Disposable packaging made from starch is biodegradable
          and nontoxic and thereby providing one solution to the
          increasing solid waste disposal problems.

o    The Clean Air Act Amendments of 1990, proposed and signed
     into law by the President, provides expanded market
     opportunities for biofuels, both ethanol and biodiesel. 
     Biodiesel is a clean burning substitute for diesel fuel and
     can be made from oilseeds and animal byproducts.

     --   USDA is currently working with EPA and DOE to ensure
          that ethanol will enjoy the market opportunities
          available to it under the Clean Air Act.

     --   USDA's Economic Research Service (ERS) estimates that
          increasing ethanol production to 5 billion gallons will
          create 100,000 jobs, many of them in rural areas.

     --   An expanding market for ethanol will also reduce
          emissions of carbon monoxide and other harmful air
          pollutants.  Growing crops for fuel will also reduce
          the amount of new carbon released into the atmosphere
          helping to stabilize levels of carbon in the air.

o    The President's National Energy Strategy also calls for an
     expanded market for biofuels to increase our domestic energy
     production and reduce our dependence on foreign oil.

o    Funding for activities within USDA to encourage the
     development of ethanol and biodiesel markets has increased
     substantially.  Funding requested for FY 1993 is almost
     three times that appropriated in FY 1992.

     --   ERS has identified new cost-saving technologies that
          can lower the cost of producing ethanol by as much as
          20 to 30 percent and increase market opportunities even
          more.  USDA's Office of Energy, ARS and other agencies
          are working to develop these new technologies and make
          them available to the private sector.

Agriculture -- page 8


Agriculture and the Environment

o    Recognizing that farmers are the first environmentalists and
     have been working for generations to protect and preserve
     their lands to maintain productivity, the President has
     oriented farm policy toward the goal of assisting farmers in
     their efforts.

o    The Administration has been working with farmers to provide
     them with information regarding best management practices
     and new technology to assist them in reducing inputs and
     complying with State and local environmental laws.  The
     Administration has sought to ensure that zeal for
     environmental protection does not transfer into laws so
     restrictive as to put people out of business.

o    The President supports the Wetlands Reserve Program (WRP),
     the Conservation Reserve Program (CRP), and the Water
     Quality Incentives Program which are all voluntary programs
     available to producers to assist in the protection of their
     lands.

o    The Administration supports greater planting flexibility as
     a means to divert from monocultural practices and
     opportunities for exploration and experimentation with new
     crops to achieve the best management practices for the land.

o    The President believes that it is possible to protect
     important wetlands and at the same time have a balanced,
     sensible approach to protection that takes into account the
     property rights of farmers.




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