And this was the week that my neighbors and I began to dump our No. 1 colossal onions. And if you have not seen those, they are about this big. A big, perfect onion, no market for it. So, as I said, I'm kind of a curious person, so I went to several local grocery stores and I looked at the onions that were there. They didn't look very good. They were priced three pounds for a dollar. But the point was that they weren't very good. So it took a lot of time for me to coerce the produce managers to go into the back room and tell me where those onions were from because they weren't marked as to origin.

That day, I went to five grocery stores. The onions were from Peru and Mexico while we dumped superior onions on the ground. Now, something is wrong here, folks. I'm not against NAFTA, but something has gone wrong with it. Look at it this way: The American farmer has a stranglehold on them. Soon foreign producers will have us in the same hold. And if we think that OPEC has hurt us with their control of the oil industry, if we think that $2 a gallon hurts our pocketbook when we go to buy gas, wait until they get control of the food of the world. And if we continue our present policies, that's going to happen because the family farm is going to be extinct.

Lowering and dropping tariffs on the products that come into our country, while continuing to accept duties and tariffs on American products, has amounted to a sellout of the American producer. The foreign countries continue to protect their farmer while ours has been sacrificed. Could it be that they know something that we in our country have forgotten? That a country is only as strong as its breadbasket, that even national security is at risk here.

Napoleon said that an army marches on its stomach. And what will happen to us as a nation if that stomach becomes empty, squeezed by free-trade policies. Foreign countries continue to boycott our food. For example, I attached an exhibit that tells how the Mexican Government recently placed a duty on our meat imports. Incidentally, I would like to say that my husband and I have been in this industry for 50 years. For 46 years we had a family feedlot, 2,000 head a year, which we sold locally through Armour & Company and then IBP and other local producers. But we no longer have that. Our corrals stand empty. They will never be full again. The family cattle producer is gone forever.

Now, Mr. Clinton in his letter of January 24, 2000, to Congress has stated that tariffs average 31 percent. And by January of 2004, they'll be reduced to 14 percent. By 2004, it will probably be too late for a lot of us. Farmers are being forced out through bankruptcy and inability to get financing. An average of a 34 percent tariff on our exports to other countries, is this acceptable? And consider this: Do we really think that the Chinese peasant who earns 13 cents an hour is the answer to our farm problem? And do we think that the Mexican peasant who doesn't have pesos to buy shoes for his children, do you really think that that is the answer to our agricultural problem? I think we need to look at this a little bit.

Our dollar value is so strong that other nations really want and they need a share of it. And this has been addressed. These nations grant export subsidies to their farmers. This allows them to profit,

even though the goods that flow into our country are of inferior quality and they are below even their production cost.

Mint oil last year and this year is being brought into the country at the $5 and $6 level from China and India. It's an inferior oil. It's mixed with our domestic oil and then sold cheaply on our markets when it costs us $14 a pound to produce it. This picture is not pretty, but it's only one example of the unfair practices that affect our market. What I'm saying is we haven't negotiated, folks. We've just said, "This is a wonderful thing. We want you to buy our thing. We want you to buy our food and we'll buy your things. You go ahead. You subsidize your people. We'll just take whatever you want to give us."

There is a couple other things that I want to address. The taxes was brought up today. Depreciation tax schedules put a farmer at a definite disadvantage. Tractors and farm machinery are depreciated over a 7-year period. It would be a great help to the agriculture community if we could deduct the cost of our machinery as a one-time business expense as suggested by primary presidential candidate Steve Forbes.

Income averaging has helped, but it needs to be more inclusive. One time I discussed this with Senator Craig and he told me, “But land prices haven't gone down," so I checked into that a little bit. Land prices have gone down in our area from 18 to 22 percent. And most of the sales are to people who are not wanting to farm, who just want a way of life. Well, I have news for them. They will not be able to afford the property taxes on that land if it's not farmed. And if the inexperienced try to farm, well, they'll be in worse shape than those who are forced to sell out.

Bankruptcy laws and regulations need to be looked at. That's been addressed today.

Bonding requirements need to be looked at. This past 2 years farmers in our area have been severely hurt by businesses going bankrupt and not paying for the produce they have purchased. Because these unpaid-for products are considered the property of the failing business in the bankruptcy proceedings and the farmer receives little or no return for his crop. One of the problems here is that the bonding requirements are so low that they could not possibly pay out. For instance, people are allowed to buy grain from farmers in the area with a $50,000 bond. That would not cover one farmer's grain. That needs to be looked at.

I have a lot more to say. I know the orange light is on. Five minutes isn't very long to express feelings. And I've been very nervous today because-and ordinarily I'm not nervous, but this is my life I'm talking about and my neighbors' lives. Recently I was in the U.S. Capitol and I noticed something on the wall that really touched my heart. And it said, "When tillage begins, the other arts follow. The American farmers, then, are the founders of human civilization." Daniel Webster wrote those words in 1840. We are now at a crossroads of that civilization.

My fellow Americans, will we continue to sacrifice the American farmer, the American laborer, the American citizen on the altar of free trade? American consumers, will you continue to be a part of this stupidity? Let us rise up and say "Enough." Let us use some wisdom in our negotiations. Let's put our country first and let us

name the United States of America the most favored nation. Only by doing this will we save the destiny of our great land.

Thank you very much.

[The prepared statement of Mrs. Hartley appears at the conclusion of the hearing.]

The CHAIRMAN. Thank you. Mr. Hays.

STATEMENT OF JOHN V. HAYS, COW/CALF PRODUCER, UNITY, OR

Mr. HAYS. Chairman Combest, members of the committee. At this time, Congresswoman Chenoweth, we would like to thank you from Oregon for all you've done for us. You've been a voice for the Northwest for years. We're going to miss you. We appreciate all you've done. You went above and beyond the call of duty and you don't know how much it's appreciated by the people in our State. We really appreciate that.

Representative Walden, you're doing a great job for a freshman. We like you. Keep up the good work.

I thank you for the opportunity to testify before you today on behalf of myself and many thousands of ranchers who will not be heard. My name is John Hays. I live at Unity, OR. I'm president of the Oregon Cattlemen's Association. I'm a fifth generation cattle rancher on the same ranch. We have about 23,000 deeded acres now. I lease another 30,000 acres of private land and I run 116,000 acres of Forest Service and BLM managed land.

I understand the U.S. Constitution directs Congress, article I, section 8, to “*** provide for the common defense and general welfare of the United States ***." There could not be a greater need than food security for either our defense or our general welfare. We can never allow this Nation to become reliant on foreign nations for our food for our citizens. American ranchers and farmers produce the safest, healthiest, and most affordable food in the world, a record we have proudly maintained throughout history.

While most thinking Americans appreciate the importance of U.S.-grown food, our Government is unwilling to acknowledge this and inform American consumers what they are eating or even what country it originates in. This makes no sense. Government agencies do little to enhance our ability to produce but rather choose to restrict our activities with a constant stream of new, overburdensome regulations.

I consider myself and my neighbors to be excellent stewards of the land and water, yet Federal agencies treat those of us at the beginning of the food chain as if we were environmental criminals of the worst kind.

Let's not forget it was the Federal Government that encouraged pioneers to settle west and produce food and wealth for this country, which by the way, food and fiber production is still providing the only major new wealth enjoyed by this country.

Many promises were made to our pioneers about the cheap land and water. Contracts were drawn up to protect our settlers and enticements were offered to help endure the hardships of the new, unconquered land. States were to have authority over the waters of their respective territories.

My great-grandmother and her sister came out; she was widowed before they left, both of them were. They came out with 11 kids. So I know what they did. I hope I have the same blood.

Now, a new, corrupt industry has been formed to control and eliminate cattle production on federally managed lands by filing frivolous lawsuits that ranchers must financially defend. This conflictive industry makes big profits and solely exists to create continuous restrictions on the land and waters of the producers.

What makes the matter worse, several Federal agencies either seem to go along with the conflictive industry or they have their own agenda that causes just as much havoc. I used to wake up in the morning and look forward to the challenges of food production. Of course, nature/society offered many like diseases, catastrophic droughts, floods, fires, and a crash of the marketplace, but we expect those kinds of things and manage to cope with them.

We accept this way of life, actually not much different than my great-grandfather endured. We want to improve our cattle herd and create projects to improve the environment. But now I wake up facing one meeting after another simply to protect my rights to existence. Ranching and farming isn't fun anymore. Actually, it's a nightmare. Young people are leaving in droves and not coming back, often witnessing the escalation of losing the battle that their parents have endured at the hands of government bureaucracies, a government they believe was designed to protect them, not destroy them.

What can the Government do to help? Don't let regulations like the Endangered Species Act, Clean Water Act, Antiquities Act, along with the run-amok Federal agencies dominate our land and livelihoods. Our Government should be fighting for us. Let those of us that are skilled and trained in this area provide the food security of the nation, not bureaucrats and ecoterrorists who are preying on our lives and livelihoods. Food security is the first line of defense of this country. We producers start the food chain. Let it be a U.S. food chain. Be proud of our U.S. producers by labeling our food products and label those from other nations too. We will successfully compete with global food production, if it is done fairly. In the United States Marine Corps, we had a saying, "Either lead, follow, or get the hell out of the way." The U.S. Government must do no less. When we producers are actually enhancing the environment, don't come after us with a shotgun and heavy-handed enforcement. When we need help with fair trade issues with other nations, support us, and then come out with guns-a-blazing as fast as possible.

When we producers have demonstrated the ability to produce abundance while protecting and enhancing the environment, be willing to learn from us. Use our expertise and follow our lead. The new farm bill will probably need to have a safety net for some commodities, but do not let your guard down. We cannot let what happened to the last farm bill happen again. An example, there was to have been a comprehensive committee to study the state of agriculture as the Freedom to Farm, the previous farm bill process played out, but the committee was formed too late to prevent the disastrous state of agriculture today.

We producers are not a bunch of dummies that simply whine about the Government and do nothing to help ourselves. As president of the Oregon Cattlemen's Association, I have been developing a brand new beef product called Oregon Trail Beef. Oregon Trail Beef is designed to guarantee quality and safety and, most important, be locally grown. This object is to provides a little profit back to the local ranchers and rural farm communities. It will also help with about 1,000 jobs and put money back in our pocket we could once do. We're doing this on our own.

Mr. Chairman and members of the committee, only those things you extract or produce from the earth provides new wealth for this country, our State and our local communities. Rural communities across the State of Oregon have an economy crisis with high unemployment, having to shut down nursing homes, hospitals, cut back on school programs like Vo Ag and FFA programs. We minimize road maintenance departments and reduce staff for other county services. One would think that rural areas would be the most affluent, since this is where the food chain begins. It should be. There should be a clamoring of young people wanting to get back into agriculture or stay in agriculture, but they are not. Far too often, law, rules, and regulations are created to cause problems. Something is definitely wrong. Help us fix what is wrong and defend what is right. Thank you.

[The prepared statement of Mr. Hays appears at the conclusion of the hearing.]

Mrs. CHENOWETH-HAGE [presiding]. The chair recognizes Mr. Little for his testimony.

STATEMENT OF BRAD LITTLE, WOOL PRODUCER, EMMETT, ID Mr. LITTLE. Well, thank you, Chairman Chenoweth. And I am very delighted to have this good of a turnout. I wish more of agriculture in the Pacific Northwest to-I've seen hearings on Capitol Hill have half the turnout that we have here. So we're very pleased to have you here.

We operate a family farm that starts at the edge of Congressman Walden's district and travels through Congressman Chenoweth's district and ends up in Congressman Simpson's district. As you said about it being arid, we've got to go a long way to get enough feed to get a lamb fat. So we go a long way. Right now, our sheep are just a half-hour from this building. And they're doing fire suppression and wildlife habitat enhancement on Fish and Game lands just here on the edge of Boise. Hopefully they are getting fat also. We've been through in the sheep industry an incredibly serious economic situation. My dad sold wool for a dollar and a half in 1954 and I just got the wool check a week ago and it was 20 cents. The wool industry is just gone. And this is coming from a person who was an unadulterated free marketeer. Under Charlie Stenholm's tutelage, I've started to see the error of my ways and we do have to do something. In the sheep industry, we were very fortunate and had a good counsel to file the 201(k)s. We were successful and the president awarded us the damages and it's made a significant difference in the lamb market. Of course, the wool market is still in terrible shape.