397 lines
17 KiB
Plaintext
397 lines
17 KiB
Plaintext
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August 6, 1992
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PRESIDENT BUSH ON AGRICULTURE
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"The quantity and variety of goods that fill our Nation's
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grocery stores are unparalleled -- a shining testament to
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the ingenuity and productivity of the American farmer."
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President George Bush
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November 20, 1991
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"Today, the trade practices of the European Community hurt
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American farmers.... I am not going to put our farmers at an
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unfair disadvantage. Sooner or later, the EC must stop
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hiding behind its own iron curtain of protectionism.
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Meanwhile, we will remain leaner, tougher and more
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competitive."
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President George Bush
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January 13, 1992
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Summary
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o President Bush is committed to ensuring that our farmers and
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ranchers can compete in the world marketplace. The
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President has worked hard to provide greater flexibility for
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our farmers, promoting new uses for agricultural products,
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opening markets for farm exports, and helping to mitigate
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undue burdens of regulations.
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o Under the Bush Administration, nominal farm income has
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reached a record high, and farm debt has fallen by one-
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third. At the same time, farmers are now receiving more and
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more of their revenues from markets, instead of the federal
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government.
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o In November 1990, President Bush signed into law the market-
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oriented 1990 Farm Bill. The President vigorously pursued
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this bill which builds on the successes of the 1985 Reagan
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legislation. This program will keep American farmers
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competitive in world markets, assist farmers in their
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efforts to conserve soil and water and stabilize farm income
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and the U.S. food supply.
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Agricuture -- page 2
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Increasing Farm Income
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o Under President Bush, farm income is at record levels.
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Government support through farm programs, the reduction in
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the debt load of farmers, increased international markets
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due to aggressive market opening and export programs, and
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President Bush's position on reducing interest rates all
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contributed to the expansion in farm income.
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-- After adjusting for inflation, it is estimated that net
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farm income for the period 1989-92 will be 14 percent
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above the previous four year period. Agriculture sales
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and gross cash receipts have increased $16 billion
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since President Bush took office -- to $167 billion.
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At the same time, government payments to farmers have
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fallen as farmers have received more money from private
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markets.
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-- In 1984, farm debt was $194 billion; by 1991 it had
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fallen to $123 billion (forecast). Lower interest
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rates combined with declining farm debt have
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significantly improved the financial position of
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farmers.
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-- Farmers' equity has grown by $45 billion in the three
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years from 1988 to 1991. As farmers continue to cut
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debt and increase assets, about 60 percent of the
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equity decline which took place in the first half of
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the 1980s will be regained by the end of 1992.
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Maintaining Farm Program Support
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o President Bush's major domestic farm policy challenge during
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his first term was the 1990 Farm Bill. The President led
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the effort to maintain support for America's farmers while
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achieving the Congressionally mandated reduction in
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agricultural subsidies and government costs.
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-- To offset the effects of lower government expenditures,
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the Bush Administration advocated the concept of
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"planting flexibility," which lowered the restraints on
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cropping choices.
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-- Greater flexibility has made U.S. agriculture more
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competitive in global markets.
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-- In 1992, farmers used their new freedom to plant over 8
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million acres to alternative crops.
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Agriculture -- page 3
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-- The market-oriented Farm Bill provisions are raising
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farm productivity and efficiency and helping farmers
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earn more in the marketplace, thereby reducing their
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reliance on government payouts. At the same time,
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vital support continues.
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Reducing the Burden of Agricultural Regulation
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o In his State of the Union address in January, President Bush
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vowed to eliminate unnecessary regulations that impede
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economic growth and accelerate implementation of those that
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promote growth.
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o On March 19, the Bush Administration announced a package of
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agricultural regulatory changes totaling $1 billion in
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economic benefits. These initiatives range from ways to
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reduce compliance costs for nutritional labeling of meat and
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poultry products to streamlining the application procedures
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for FmHA farmer loan programs to speeding up a new loan
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program for beginning farmers.
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o The President's directive to get the government off the
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backs of farmers continues to succeed. In recent weeks,
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rule changes have reduced the number of trips that are
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necessary to local USDA offices. Other changes include
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flexibility in enrolling wetlands in the Conservation
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Reserve Program and making the Export Enhancement Program
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and Export Credit Guarantee Programs easier for exporters to
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use.
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o The President recognizes that unduly burdensome regulations
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are a brake on economic progress for U.S. farmers.
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Significant headway is being made to dismantle such rules to
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put money back into farmer's pockets instead of wasting it
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on unnecessary compliance costs.
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Promoting Agricultural Trade
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o President Bush is committed to breaking down trade barriers
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and opening new markets around the world. Agricultural
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exports are up, topping $37 billion in 1991, and are
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expected to reach $41 billion with an $18 billion surplus in
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agriculture trade this year alone.
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o The President has successfully negotiated expanded markets,
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such as agreements on beef and citrus exports to Japan and
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similar dropping of barriers in other growing Asian markets.
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Agriculture -- page 4
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o The President has worked to reduce the unfair agricultural
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subsidies of our competitors through the GATT negotiation
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process, and other diplomatic and economic efforts.
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-- The U.S. oilseeds case against the EC has twice been
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judged by the GATT in our favor; however, the EC has so
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far refused to change their unfair policies toward U.S.
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oilseed producers. While we continue to negotiate with
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the EC within the framework of the GATT, we are
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prepared to use all our trade remedies should the EC
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not bring its policies in line with GATT requirements.
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o The President has extended agricultural credits guarantees
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to Russia and other nations of the former Soviet Union to
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meet their needs in this critical time. The U.S. has made
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available $4.85 billion in credit guarantees for the
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purchase of U.S. agricultural goods to the former Soviet
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republics and up to $165 million in food aid. This will
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help increase farm income and retain important markets.
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GATT Uruguay Round:
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o President Bush has led the world in pushing for global
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reform to open markets in the Uruguay Round negotiations of
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the GATT. Foreign markets absorb 20-25 percent of U.S.
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agricultural sales. A successful agreement could expand
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farm exports by $4 to $5 billion by the year 2000. This
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would add $5 billion in farm cash receipts, reduce federal
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outlays by $2 to $3 billion, add 40,000 to 60,000 new U.S.
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jobs in the food and agriculture sector, and require only a
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few changes in U.S. domestic support programs.
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o Agricultural reforms in the Uruguay Round would mark an
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historic departure from the costly protectionist measures
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that have restrained agricultural trade growth, largely
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outside GATT disciplines. These reforms would have
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significant benefits for farmers, taxpayers, and consumers
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in the United States and the rest of the world. They will
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help to level the playing field for U.S. farm exports and
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will provide fair import safeguards for U.S. farmers.
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o President Bush, supported by other GATT members, has
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demanded that any final GATT agreement include a commitment
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by all parties, including the EC, to significantly reduce
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trade barriers and to require their farmers to compete
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fairly in the world market.
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Agriculture -- page 5
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-- The Bush Administration has aggressively focused and
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spent $850 million so far this year on the Export
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Enhancement Program (EEP). This program is
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specifically designed to counter the EC's massive
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export subsidies and maintain pressure to negotiate a
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settlement.
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-- This commitment demonstrates that the Bush
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Administration is determined not to reduce these
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subsidies unilaterally, and put U.S. farmers at a
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tremendous disadvantage to subsidized competitors.
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o The EC's recent reform of its Common Agricultural Policy
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could promote further progress on the GATT. CAP reform
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alone, however, does not resolve the problem of the EC's
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unwillingness to reduce export subsidies. The EC must take
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further steps to join the rest of the world in reducing
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subsidies and opening its markets to competitive trade.
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North American Free-Trade Agreement (NAFTA):
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o President Bush has been at the forefront of negotiating a
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fair free-trade agreement with Mexico. With nearly 90
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million consumers and an expanding economy, Mexico will
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provide a vital and expanding market for U.S. agricultural
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products. NAFTA offers a total market of 360 million
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people.
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o U.S. agricultural exports to Mexico have almost tripled
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since 1986 to a record $3 billion in 1991. The U.S. is
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currently the largest supplier of agricultural products to
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Mexico. Under a NAFTA even more can be done since Mexico's
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remaining trade barriers are still higher than those of the
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U.S. (Mexican tariffs on U.S. products average about 11
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percent while the U.S. tariffs are only about 4 percent.)
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o President Bush firmly supports the development of a strong
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NAFTA agreement which will secure further export
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opportunities for agricultural products to Mexico. A NAFTA
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will provide adequate transition provisions for U.S.
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producers. This will include import safeguards and long
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term phase-in periods for sensitive crops to avoid severe
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impacts on any commodity or industry.
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o At the same time, the Administration will ensure that health
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and safety standards are not relaxed on food imports. The
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U.S. will maintain the right to exclude any products that do
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not meet U.S. health or safety requirements and will Agriculture -- page 6
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continue to enforce those requirements. President Bush
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seeks a commitment to work together with Mexico to enhance
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environmental, health, and safety standards regarding
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products and to promote their enforcement.
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Trade Agreements in Asia:
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o The largest region for U.S. agricultural export market is
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Asia, accounting for 44 percent of farm exports in fiscal
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year 1990-91. In that year, U.S. sales of agricultural
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products to Japan (our largest single market for farm
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products) totalled $7.7 billion; sales to Taiwan were $1.7
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billion. However, there are still many trade restrictions
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facing the U.S. agricultural industry. President Bush has
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actively pursued trade agreements to open Asian markets.
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-- A 1990 agreement was negotiated with South Korea which
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will completely open its beef markets to the U.S. by
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1997. Currently, South Korea is the third largest
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market for U.S. beef.
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-- An agreement with Japan led to a complete lifting of
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quotas on beef imports on April 1, 1991. The U.S. has
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increased its beef exports to Japan from $557 million
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in 1987 to $889 million in 1991.
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-- A 1990 agreement with Japan on processed wood products
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will increase exports by $1 billion.
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Promoting New Uses for Farm Products
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o The Administration is supporting a growing effort to expand
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nontraditional markets for farm and forestry products.
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Markets for fuels, lubricants, biodegradable materials,
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inks, and pharmaceuticals offer tremendous potential for
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American agriculture. Expanded markets will increase farm
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income, create economic opportunity in Rural America, help
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achieve a cleaner healthier environment, and reduce our
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reliance on foreign oil.
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-- Funding for activities in these areas has increased
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substantially. The President has requested that
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Congress more than double funding for the Alternative
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Agricultural Research and Commercialization Center
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(AARC) in FY 1993 from $4.5 million to $10 million.
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AARC's mission is to facilitate the movement of new
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technology and nontraditional products from the
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laboratory and testing phases into the marketplace.
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Agriculture -- page 7
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-- USDA's Agriculture Research Service (ARS) is increasing
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its effort in the area of new uses. Funding requested
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for FY 1993 is $5 million higher than FY 1992.
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-- Products and materials made from crops are generally
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environmentally friendly and safe to handle.
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Disposable packaging made from starch is biodegradable
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and nontoxic and thereby providing one solution to the
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increasing solid waste disposal problems.
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o The Clean Air Act Amendments of 1990, proposed and signed
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into law by the President, provides expanded market
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opportunities for biofuels, both ethanol and biodiesel.
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Biodiesel is a clean burning substitute for diesel fuel and
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can be made from oilseeds and animal byproducts.
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-- USDA is currently working with EPA and DOE to ensure
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that ethanol will enjoy the market opportunities
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available to it under the Clean Air Act.
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-- USDA's Economic Research Service (ERS) estimates that
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increasing ethanol production to 5 billion gallons will
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create 100,000 jobs, many of them in rural areas.
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-- An expanding market for ethanol will also reduce
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emissions of carbon monoxide and other harmful air
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pollutants. Growing crops for fuel will also reduce
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the amount of new carbon released into the atmosphere
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helping to stabilize levels of carbon in the air.
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o The President's National Energy Strategy also calls for an
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expanded market for biofuels to increase our domestic energy
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production and reduce our dependence on foreign oil.
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o Funding for activities within USDA to encourage the
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development of ethanol and biodiesel markets has increased
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substantially. Funding requested for FY 1993 is almost
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three times that appropriated in FY 1992.
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-- ERS has identified new cost-saving technologies that
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can lower the cost of producing ethanol by as much as
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20 to 30 percent and increase market opportunities even
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more. USDA's Office of Energy, ARS and other agencies
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are working to develop these new technologies and make
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them available to the private sector.
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Agriculture -- page 8
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Agriculture and the Environment
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o Recognizing that farmers are the first environmentalists and
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have been working for generations to protect and preserve
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their lands to maintain productivity, the President has
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oriented farm policy toward the goal of assisting farmers in
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their efforts.
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o The Administration has been working with farmers to provide
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them with information regarding best management practices
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and new technology to assist them in reducing inputs and
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complying with State and local environmental laws. The
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Administration has sought to ensure that zeal for
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environmental protection does not transfer into laws so
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restrictive as to put people out of business.
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o The President supports the Wetlands Reserve Program (WRP),
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the Conservation Reserve Program (CRP), and the Water
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Quality Incentives Program which are all voluntary programs
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available to producers to assist in the protection of their
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lands.
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o The Administration supports greater planting flexibility as
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a means to divert from monocultural practices and
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opportunities for exploration and experimentation with new
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crops to achieve the best management practices for the land.
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o The President believes that it is possible to protect
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important wetlands and at the same time have a balanced,
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sensible approach to protection that takes into account the
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property rights of farmers.
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