produce certain plants and crops in the Southeast. In reality, the key may be that our winters aren't cold enough, since many plants and fruit trees such as peaches, must have sufficient winter chilling hours, such as peaches, to produce a crop. On the flip side of this issue, we are working on freeze protection in the early spring. Aside from the obvious advantage our research has on being more productive, it also opens many value added enterprises and can provide many niche markets for farmers who are desperately looking for alternatives to current production or to complement their existing enterprises. Every time we develop a new production technique or a new product which allows us to be more efficient in food production, reduces risk to our environment, and provides more profit potential to our farmers, we take a step in reducing the need for our government to be directly involved in agriculture via regulation or special appropriation. Prices for most agricultural products are at all time lows and the cost of inputs at all time highs. In addition, we live in a globally competitive market, and the “playing field" is not always level. To deal with this situation, our producers need the benefit of the alternatives alluded to above as well as more effective production practices, more knowledge and capability to operate in the new economy, and routine access to information, technology, and education. The land-grant universities, like Auburn University, are able to provide this base of support but only if resources are provided that allow the research, extension, and teaching activities to be effectively conducted. The long history of the Agricultural Experiment Station system, not only in Alabama, but across the nation, shows that investments in research pay dividends many times greater than the investments made. The land-grant universities and all their attendant experiment stations are positioned at a critical juncture in time. New investments are required to continue this long history of productivity and impact on the lives of every citizen through our production agriculture system. Without these investments, a tremendous opportunity will not be realized. Agriculture is in a very difficult situation - not a hopeless situation. At Auburn, we are beginning to take a closer look at many new opportunities and think outside the traditional arena. For Auburn researchers, and for other land-grant institutions, the challenge is made difficult because we are committed to providing the technological base for our current agricultural industries in an environment of shrinking resources-both capital and human. We look forward to your support for new investments in our programs so that we can continue to serve this tremendously important industry with quality technology, information, and education. Thank you for this opportunity to provide these comments to you. I look forward to visiting with you about these issues at any time. REVIEW OF FEDERAL FARM POLICY MONDAY, MARCH 27, 2000 HOUSE OF REPRESENTATIVES, The committee met, pursuant to call, at 10:05 a.m., North Carolina State University, Raleigh, NC, Hon. Larry Combest (chairman of the committee) presiding. Present: Representatives Combest, Boehner, LaHood, Jenkins, Hayes, Stenholm, Clayton, McIntyre and Etheridge. Also present: Representative Price. Staff present: William E. O'Conner, Jr., staff director; Christopher D'Arcy, staff director, Subcommittee on Livestock and Horticulture; Christopher Matthews, press secretary; Hunter Moorhead, legislative assistant; Christy Cromley, legislative assistant; and Howard Conley, minority economist. OPENING STATEMENT OF HON. LARRY COMBEST, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS The CHAIRMAN. Good morning and welcome to this, the fourth of 10 field hearings that the House Committee on Agriculture is holding in different regions of the country. I want to thank everyone here for coming to this important event. As you may know, we started this series of hearings in Lubbock, TX on March 7, continued to Memphis, TN and Auburn, AL last week. At those three hearings, 56 witnesses presented testimony and well over 1,000 people have listened in, both in the audience and through the internet. I think the time that we have spent on this endeavor has been very profitable for the members of the committee and for those in the audience, and we are pleased to be here in Raleigh today. I would mention to you that this hearing, as others have and as the hearings in the Committee on Agriculture, are being carried live over our internet site and this hearing will be as well. I have the pleasure this morning of introducing the Members who are with us. I am Larry Combest, I represent the High Plains of Texas. On my right is my good friend and neighbor, Charlie Stenholm, who is also from west Texas. Congressman John Boehner represents western Ohio; Eva Clayton is from eastern North Carolina; Ray LaHood is from central Illinois; Mike McIntyre is from southeast North Carolina; Bill Jenkins is from the mountains of east Tennessee; Bob Etheridge represents an area around Raleigh; Robin Hayes represents south central North Carolina; and joining us, we are very proud to have a non-member of 64-076 00-16 our committee, but one that we are encouraging all Members in the region to attend-David Price, who also represents Raleigh. Today, we will hear from 16 people who have built their lives and careers around agriculture. In selecting this panel of witnesses, we sought to bring folks together here in Raleigh that represent the different types of agriculture found in this region, who could bring a variety of thought on the issues facing our industry. It is my hope that everyone in this room can identify with at least one of these witnesses today, and I would encourage anyone who would wish to make submitted additional testimony, to do so and it will be made an official part of the record of this hearing. I do not want to speak long because I want to emphasize that this hearing is for us to listen. I do want to say that I think all of the Members at this table know we have a problem and we are fundamentally believing that it is in the best interest of this Nation to maintain and foster a diverse and strong agricultural sector. So the question we want answered today is how do we best accomplish that goal. We want to find out what real producers think is working and not working in our Federal farm policy. We will be going to all regions of the country asking the same questions with the hope that we can find consensus among producers for farm policy changes that are needed. Again, I would like to thank everyone who has taken their time to be here today and I would like to recognize Mr. Stenholm for any comments that he might like to make. OPENING STATEMENT OF HON. CHARLES W. STENHOLM, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS Mr. STENHOLM. Thank you, Mr. Chairman. I am delighted to be here with my colleagues today for purposes of listening. And I would encourage all of our witnesses, since 5 minutes is not a long time, to concentrate on those suggestions for solutions. As the chairman has said, we understand how bad it is, we have our problems in production agriculture. What we are looking for are solutions, both short-term and long-term and having read some of your testimony already, I know we are going to have some of those today, and we appreciate that very much. It is always good for me to be in the home State of the big Jim Graham. Thank you. The CHAIRMAN. Mr. Boehner. Mr. BOEHNER. I have nothing, Mr. Chairman. The CHAIRMAN. Mrs. Clayton. OPENING STATEMENT OF HON. EVA M. CLAYTON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NORTH CAROLINA Mrs. CLAYTON. Mr. Chairman, I want to thank you and the Ranking Member Stenholm for agreeing to hold these series of hearings throughout the country. I think you have committed to 10, and I am very pleased that we have come to North Carolina. Í want to welcome all of the Members who have come, and I too look forward to listening to the members from the agriculture community who have come to share not only their pain but also some resolutions and how we can resolve it. Thank you. [The prepared statement of Mrs. Clayton follows:] PREPARED STATEMENT OF HON. EVA M. CLAYTON Mr. Chairman, I commend you and Ranking Member Charlie Stenholm for your commitment to hold a series of 10 comprehensive field hearings to review Federal farm policy. I am delighted that you chose to come to North Carolina for one of these hearings and I want to extend a warm welcome to you and all of the committee members present. For some Americans these are the best of times. The United States is now enjoying the longest sustained period of economic growth in the history of our Nation. For 7 years, we have seen more people enter the workforce, higher wages, and lower unemployment. Many people have prospered in this unprecedented, affluent, expanding economy. However, for too many of our farmers, ranchers and rural communities, due to no fault of their own, these times have not been very special. Indeed, given the volatile nature of the agricultural economy and the crisis facing farmers, ranchers and rural communities, for too many these are the worst of times. The current farm recession, now in its third straight year, is equal to the Great Depression as one of the five worst since 1915. It is most appropriate that we hear directly from our Nation's farmers and ranchers about the Federal farm policy, what works and what does not work, what we should adjust, what we should change. Like farmers, ranchers and producers, throughout the country, North Carolina farmers are struggling to survive because of depressed commodity prices, plummeting export markets, increased debt load, and increased operating expenses. Additionally, as you are aware, in the past year North Carolina's agricultural economy has been severely impacted by the effects of drought and historic levels of flooding. Flue-cured tobacco farmers have suffered three consecutive reductions in quota for a total loss of 49 percent of their quota. Speaking from personal experience in North Carolina, we can tell you that a Federal farm policy that establishes a firm financial foundation for agriculture would drastically reduced the need for emergency assistance. We can vouch for the need to enact legislation to create a USDA Natural Disaster Program, that is in place and ready to respond when Mother Nature wrecks havoc on a community, county, State, or region of the country. Such a program would eliminate the need for Congress to cobble together emergency legislation to respond to the agricultural needs inflicted by each natural disaster. Current disaster programs are inadequate and disaster loan programs are ineffective. Small and medium farmers are going out of business at a rapid rate. North Carolina is made up of small family centered farms. Agriculture remains North Carolina's top industry, contributing more than $46 billion annually to the State's thriving economy and employing 22 percent of the workforce. Statistics show that the farm dollar turns over an average of at least ten times before it leaves the local community. This trickle down effect, coupled with the uncertainty of the current agricultural economy, has a devastating impact on agribusinesses and other sectors of the local economy, particularly in rural communities, throughout North Carolina and the Nation. I regret to say many Americans do not recognize how important rural communities and agriculture are to life itself or that farmers produce all the food they buy at the grocery store. Mr. Chairman, again, I commend you for holding these hearings. I look forward to the testimony of each of our witnesses and to working with you and other members of the committee to craft a better Federal farm policy which provides the permanent safety net that our farmers need to successfully compete in a global market. The CHAIRMAN. I might mention that with the exception of California, there are more North Carolinians on the House Agriculture Committee than any other State. Charlie, I do not know how we let that happen, but we need to rethink that. Mrs. CLAYTON. We note the Chair and the Vice Chair happen to be from Texas. [Laughter.] The CHAIRMAN. Mr. LaHood. Mr. LAHOOD. I pass. The CHAIRMAN. Mr. McIntyre. |