If the committee remembers only one message from my testimony here today, it is that trade is not a luxury for the California cherry industry. It is not a bonus that helps us be a little more profitable. The California cherry industry is integrated into the world food system, and we need the support of our Congressional representatives and the U.S. administration to ensure that the global food system remains

open.

In addition to this general message, in the short time we have I would like to make six quick points.

The first is that funding for the Animal Plant Health Inspection Service's international programs and export trade support teams needs to be sufficient to ensure that we have:

⚫ an adequate number of negotiators,

that these negotiators have the administrative and scientific support they need to eliminate foreign trade barriers, and

funding for travel and proficient translators.

• while there have been improvements in recent years, APHIS, with the exception of its overseas international services staff, still only has only about nine or 10 people assigned to cover all quarantine trade issues world-wide. For the most part the world is divided into three parts, and two people are assigned to each part. This means that two APHIS negotiators are responsible for all plant quarantine talks and negotiations in Asia. In some cases they return from talks with one country with barely enough time to prepare for talks with the next, and in their absence while travelling, some works have not received appropriate attention. As I mentioned, staffing levels have increased in recent years, but this is an area where minimal investment could yield significant and real returns to U.S. agricultural exporters. A strong APHIS is critical to U.S. agricultural exports, especially when so many of our agricultural trade barriers are non-tariff based. The agency must be adequately funded, preferably by mandatory as opposed to discretionary funds.

Second, it is very important this committee ensure that the U.S. Congress and administration avoid any action that could jeopardize the integrity of the WTO's Sanitary and Phytosanitary Agreement. This means that the U.S. should ensure that its import policies be based only on sufficient and sound science and not allow protectionist pressures to abuse our phytosanitary policies. It also means that the U.S. should resist any attempts by the European Union and other countries to revisit this agreement in the upcoming WTO talks.

The California cherry industry has already benefited from this agreement. Because of a WTO case, new varieties of California cherries will more easily be shipped to Japan, and other countries that have restricted the entry of California cherries, such as Korea, are now reconsidering their positions given their new multilateral obligations.

Third, the U.S. needs to ensure it is providing adequate support for the Codex Alimentarius and other international standards setting organizations. It is useless for the U.S. to encourage its trading partners to defer to these international standards, if the organizations do not have the resources necessary to develop standards for many of the new products and technologies that are becoming available to grow

ers.

Developing a science-based international standard for new inputs and technologies is far preferable to having each country setting its own standard and ending up with a disconnected system that unintentionally inhibits the open and free movement of food. For this reason, it is important the U.S. ensure that these standards setting bodies have the funds they need to conduct the research, evaluations and risk assessments needed to recommend international standards for emerging agricultural inputs and technologies.

Fourth, in the course of the WTO talks, we need to ensure that European production and export subsidies are eliminated. Not only because they inhibit our ability to export to Europe, but because they provide the Europeans with an unfair competitive advantage in third markets such as the Middle East, India, and other parts of Asia.

Fifth, I would encourage the committee to maintain strong support for agricultural research and other green box activities such as the Market Access Program (MAP). As I mentioned in my opening remarks, recently, because of support received from the U.S. Department of Agriculture and the U.S. Trade Representative's office, the California cherry industry was successful in opening new markets in Mexico, Australia, and China. The opening of these markets was made possible because of agricultural research, and these new markets are being developed with MAP funding for generic marketing efforts. Combining research with policy level attention allows markets to open, and following a market opening with a strong generic market

ing program, allows new export markets to be created. That provides for increased U.S. exports. That, Mr. Chairman, should be our primary goal.

On a related note, for several years the horticultural sector has been requesting an increase in the USDA's Market Access Program budget from its current level of $90 million. A recent proposal by the Administration would utilize at least part of the unused $500 in Export Enhancement Program budget, slated for wheat and barley subsidies, to be used to increase the MAP budget. I respectfully ask the committee to support this important green box request, as it will help U.S. growers compete more effectively in international markets.

Finally, a quick word on the China permanent normal trade relations vote. I cannot stress enough the importance of passing PNTR for China to U.S. agriculture. China's market potential for U.S. agricultural commodities is enormous. In our industry, as a relatively new market, we shipped 10,000 18-lb. boxes of cherries between 1998-99, but that number is expected to jump significantly once the current 30 percent tariff falls. In the November WTO agreement, China agreed to lower the tariff to 10 percent by 2004 once it joins the WTO. This significant reduction will eventually mean millions of dollars in revenue for California cherries. Unfortunately, the tariff concessions to which China agreed to will be lost if PNTR is not passed. China is too important a market not only for cherries but for all of U.S. agriculture to let this opportunity slip away.

I encourage you and members of this committee to consider the issues I have mentioned today, when you are developing our Nation's agricultural policy. Thank you.

STATEMENT OF TED D. SHEELY

Mr. Chairman, my name is Ted Sheely and I have farmed on the west side of the San Joaquin Valley for the last 25 years. I grow cotton, tomatoes, garlic, pistachios, and chick peas (garbanzo beans).

I appreciate the opportunity to communicate my view on the future of American agriculture with this committee.

As you know, the primary task of a farmer today is to manage effectively two principle business risks:

COMMODITY PRICE RISK AND PRODUCTION RISK

I wish to focus today's testimony on the government's role in assisting farmers to reduce production risk by fostering the adoption of new technologies that reduce input costs and boost yields. These new technologies have the promise to spread farm net margins making growers more self-sufficient and profitable.

With the availability of remote sensing and other technologies, precision agriculture holds the promise of correctly measuring inputs to needs. It enables farmers to adapt production methods in order to enhance the capability of the plant to grow and get the most out of available inputs. In short, precision agriculture is economic efficiency and conservation. We need a lot of both today in U.S. agriculture.

We need efficiency to enhance our competitiveness.

We need conservation in order to protect our environment and extend the capacity of our scarce resources

Mr. Chairman, I am not a lazy man, but I don't like doing what I don't need to do. With variable rate application technology, along with remote sensing capabilities, I will no longer fertilize land that does not need it.

Using spray and no-spray zones within fields I will not have to treat an entire field when a limited, targeted application is really all I need. Some demonstration projects have shown the potential for a 30-40 percent reduction in the use of crop protection products through the application of precision agriculture.

Precision agriculture enables me to enhance water utilization efficiency. Through the use of remote sensing technology, verified by infield use of pressure bombs, we can discover leaf water potential. This capability will help me know where moisture deficiencies are, and make it possible to concentrate resources where they are needed most.

Technology is commercially available today that can optimize implement loads to tractor horsepower, thereby conserving fuel, reducing emissions and significantly improving tractor use. New guidance systems, such as the Beeline Navigator, which I will be utilizing on my ranch, make it possible for me to perform critical operations day and night. This will reduce the number of tractors and implements I need to farm the same acreage simply because I can now work an extra 12 to 14 hours a day. The same technology enables the tractor wheels to use the same path each time

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ing program, allows new export markets to be created. That provides for increased U.S. exports. That, Mr. Chairman, should be our primary goal.

On a related note, for several years the horticultural sector has been requesting an increase in the USDA's Market Access Program budget from its current level of $90 million. A recent proposal by the Administration would utilize at least part of the unused $500 in Export Enhancement Program budget, slated for wheat and barley subsidies, to be used to increase the MAP budget. I respectfully ask the committee to support this important green box request, as it will help U.S. growers compete more effectively in international markets.

Finally, a quick word on the China permanent normal trade relations vote. I cannot stress enough the importance of passing PNTR for China to U.S. agriculture. China's market potential for U.S. agricultural commodities is enormous. In our industry, as a relatively new market, we shipped 10,000 18-lb. boxes of cherries between 1998-99, but that number is expected to jump significantly once the current 30 percent tariff falls. In the November WTO agreement, China agreed to lower the tariff to 10 percent by 2004 once it joins the WTO. This significant reduction will eventually mean millions of dollars in revenue for California cherries. Unfortunately, the tariff concessions to which China agreed to will be lost if PNTR is not passed. China is too important a market not only for cherries but for all of U.S. agriculture to let this opportunity slip away.

I encourage you and members of this committee to consider the issues I have mentioned today, when you are developing our Nation's agricultural policy. Thank you.

STATEMENT OF TED D. SHEELY

Mr. Chairman, my name is Ted Sheely and I have farmed on the west side of the San Joaquin Valley for the last 25 years. I grow cotton, tomatoes, garlic, pistachios, and chick peas (garbanzo beans).

I appreciate the opportunity to communicate my view on the future of American agriculture with this committee.

As you know, the primary task of a farmer today is to manage effectively two principle business risks:

COMMODITY PRICE RISK AND PRODUCTION RISK

I wish to focus today's testimony on the government's role in assisting farmers to reduce production risk by fostering the adoption of new technologies that reduce input costs and boost yields. These new technologies have the promise to spread farm net margins making growers more self-sufficient and profitable.

With the availability of remote sensing and other technologies, precision agriculture holds the promise of correctly measuring inputs to needs. It enables farmers to adapt production methods in order to enhance the capability of the plant to grow and get the most out of available inputs. In short, precision agriculture is economic efficiency and conservation. We need a lot of both today in U.S. agriculture.

We need efficiency to enhance our competitiveness.

We need conservation in order to protect our environment and extend the capacity of our scarce resources

Mr. Chairman, I am not a lazy man, but I don't like doing what I don't need to do. With variable rate application technology, along with remote sensing capabilities, I will no longer fertilize land that does not need it.

Using spray and no-spray zones within fields I will not have to treat an entire field when a limited, targeted application is really all I need. Some demonstration projects have shown the potential for a 30-40 percent reduction in the use of crop protection products through the application of precision agriculture.

Precision agriculture enables me to enhance water utilization efficiency. Through the use of remote sensing technology, verified by infield use of pressure bombs, we can discover leaf water potential. This capability will help me know where moisture deficiencies are, and make it possible to concentrate resources where they are needed most.

Technology is commercially available today that can optimize implement loads to tractor horsepower, thereby conserving fuel, reducing emissions and significantly improving tractor use. New guidance systems, such as the Beeline Navigator, which I will be utilizing on my ranch, make it possible for me to perform critical operations day and night. This will reduce the number of tractors and implements I need to farm the same acreage simply because I can now work an extra 12 to 14 hours a day. The same technology enables the tractor wheels to use the same path each time

through the field. By establishing permanent traffic paths we can eliminate soil compaction where plants are being grown. It is compelling that by simply automating the steering of my tractor to drive a straight line I can reduce costs and improve yields, while at the same time, reducing the load my farm places on the environment.

Congress needs to get behind these new technologies and help ensure that farmers are able to utilize precision agriculture and its foundation technology.

Some suggestions include:

• tax incentives for the implementation of this technology;

• accelerated depreciation schedules for investing in precision agriculture equipment; and

• additional incentives to reduce the financial risk associated with moving smallscale tests from experiment stations to large scale testing on individual farms.

I have noticed that Congress is working on legislation making loans available for providing local TV broadcast signals via satellite to rural areas. I would encourage you to consider whether similar Federal assistance should be explored to help rural areas install the necessary satellite reception facilities for remote sensing and machine guidance capabilities. This assistance will provide a real bottom-line return to agriculture and the taxpayer.

Specifically, Mr. Chairman, the Ag20/20 program is a powerful new concept that teams researchers with growers to address specific needs. In this process we get more for every research dollar. I strongly urge this committee to do all it can to support the developing Ag20/20 program.

This important, groundbreaking enterprise, established as a result of cooperation between major commodity groups, the Department of Agriculture and NASA, can help take precision agriculture off the drawing board and into the field. These two agencies are establishing the framework to combine expertise from many sources, enabling this technology to make huge strides forward. Ag20/20 needs a broader base of funding in order to impact significantly U.S. agricultural production.

Under the auspices of the Ag20/20 program, I hosted thirty researchers and agency administrators from USDA, NASA, Cotton Incorporated, the National Cotton Council, the University of California, and private agronomists at my farm on March 1 of this year. We brainstormed ways of using new technologies to address needs on my farm, particularly my desire to reduce input costs.

The group formed teams across state and Federal agencies and disciplines that are committed to using existing research dollars to address these priorities on my farm in the 2000 growing season.

Though funds are very limited, these teams will use several methods to analyze soil profiles and variability. For example, land-based instruments will be used to compare spectral information of soils with remotely sensed-data collected from NASA high altitude flights (AVIRIS). Other remotely gathered information covering a wide range of electromagnetic, infrared and thermal data will be used to determine which methods offer the best promise of practical applications on the farm. These data will be shared so that all team members get the most from their research dollars.

This group will provide me the opportunity to implement precision agriculture effectively on my farm.

Ultimately, I will benefit from understanding my soils spatially and by being able to apply water, nutrients, growth regulators and plant protection products in precise amounts when and where needed. Water management is a crucial component of profitable production in the west. NASA flight data will be compared with my field records of irrigation timing and amounts, as well as plant water status measurements. This data will enable me to better understand how my fields respond to irrigation.

Without a doubt, I know these technologies work and are going to work better. This technology will redefine the debate over agriculture and its impact on our environment and natural resources. This technology will help U.S. farmers continue to produce competitively and will enable us to get more productivity from each acre. Mr. Chairman, precision agriculture is real and it can work. Using the California cotton industry as an example, widespread adoption of new technology would see farm chemical savings of between $60 -80 million each and every year. If we put a dollar figure on the environmental benefits of such a reduction, the payback for nurturing this technology is clearly evident.

I can vouch for the fact that some Federal agencies CAN work together and work together well. The Ag20/20 program is just one way this committee can help sustain the progress we have made. I urge your support for that program and other agricultural research programs that will further our ability to make widespread use of precision agriculture.