in a global market. Certificate loan redemption prevented the forfeiture of about a million bales of cotton to the Commodity Credit Corporation which would have been auctioned this fall at about the same time farmers were harvesting their new crop and attempting to price it. At the same time Congress appears to have a better appreciation on noncompetitive aspect of payment limits, we were discouraged to learn of the severe targeting of benefits in the Administration's recent proposal. While our industry is still developing our recommendations on future farm policy, it is our early consensus that we do not support a return to mandatory supply management provisions. Prices tend to be driven largely by world supply/demand conditions and, therefore, U.S. set-aside programs have generally proven to be ineffective. More than anything else they encourage foreign acreage expansion while providing little or no help for prices. Our industry does generally favor reasonable conservation and wetlands reserve programs that help to generate optimum returns from marginal lands while providing significant environmental benefits. As our industry continues its discussions, we have several important issues to resolve. We will continue to discuss coupled versus de-coupled payments. We have preliminarily discussed an approach that would continue the de-coupled AMTA payment concept with the addition of a coupled counter-cyclical payment in times of low prices. We will also continue to evaluate the updating of bases and yields for cotton producers. Before concluding my statement, I would like to offer some comments on crop insurance reform. Mr. Chairman, cotton producers appreciate your leadership in developing and passing through the House a very meaningful insurance reform bill which has our full support. We are also pleased to see movement in the Senate and are hopeful that an expedited conference can resolve differences and result in quick implementation. Our industry has been heavily involved in seeking both legislative and administrative changes in cotton insurance. In its present form, it offers inferior risk management. We will continue to work with FCIC on rating reform, an area we have already enjoyed some success in the Cotton Belt. Mr. Chairman, as critical as we see the need for a viable crop insurance program, we do not support crop insurance as delivery mechanism for farm program benefits. Our industry maintains that a good insurance program is needed to address production losses. In summary, Mr. Chairman, as we continue to develop our overall farm policy, there are several adjustments we agree need to be addressed: • We need a better safety net to protect farm income when prices are low; We need de-emphasize benefit targeting and We would like to see some changes in the delivery system for both emergency economic assistance and regular farm program benefits in order to get the southeast on an even footing with other regions. Thank you for the opportunity to share these views. April 10, 2000 Chief Clerk C/o House Committee on Agriculture 1301 Longworth Building Washington, D.C. 20515 Dear Chief Clerk: I would like this letter to be submitted into the official record of the March 27, 2000 House Agriculture Committee field hearing held at North Carolina State University. I am a volunteer for the Farm Sanctuary, I passed out brochures and spoke to farmers and live stock owners about the growing problems of animal suffering caused by owners and workers at the farms. I urge you to pass the Downed Animal Protection Act that will prohibit the slaughter of downed animals for human food. Just take a look at the enclosed brochure and see the unnecessary harm being done to the farm animals. Sincerely, Jenyula I Bake in LNC Jacqueline J. Bowlin, RN, LNC 4509 Oak Shyre Way Raleigh, NC 27616 Statement by John W. Carter III President Tobacco Growers Association of North Carolina to the U.S. House Agriculture Committee Field Hearing My name is Billy Carter. I farm in Moore and Montgomery Counties. The primary emphasis of my farming operation is flue-cured tobacco production. Additionally, we have used profits from our tobacco enterprise to capitalize expansion into fresh market vegetable production. I also currently serve as the president of the Tobacco Growers Association of North Carolina. I sincerely appreciate the opportunity to express my thoughts to the members of the House Agriculture Committee, particularly as the Congress of the United States seeks solutions to deal with catastrophic conditions that prevail in the farm sector at present. In the past, tobacco has appeared immune to many of the cycles that have occurred in other agricultural commodities. That certainly is not the case in 2000. The economic pressures on our industry will force many farmers out of business in the very near future. There simply is not enough quota to offer the opportunity for the current number of farmers to repay their debt load, much less make a reasonable living. The situation is especially perilous for young farmers who simply cannot handle their current debt structure with such a greatly reduced cash flow situation. One of the overriding tenets of U.S. farm policy over the years has been the preservation of rural economies and the opportunity for families to remain on the farm if they so choose. That opportunity is now severely jeopardized. Tobacco is unique in terms of what farm policy can do to assist tobacco farmers. However, there is one thing you can do that will truly help the U.S. tobacco farmer, and that is to help us get access to foreign markets that are now closed to us or that are financially unable to acquire high quality, well regulated U.S. tobacco. Leaf tobacco exports continue to suffer from the market pressures of international prices and abundant supplies. Frankly, this year's meager burley and flue-cured quotas could devastate our export market, which is already shrinking at an alarming rate. Leaf exports last year were down 10.6% compared to 1998. Flue-cured exports were off 22.5% for the year and burley exports fell 3.4%. These declines follow the trend of a continuing steady drop in leaf exports over the last several years. Today, total U.S. leaf tobacco exports are about half what they were two decades |