GUEST WORKER LEGISLATION Western Growers Association also strongly supports bipartisan legislation to reform the H-2A agricultural guest worker program (S. 1814 and H.R. 4056). An effective guest worker program is needed to ensure that legal workers are available to harvest perishable crops when there are not enough domestic workers for this purpose. The inability to secure a sufficient number of workers in a timely fashion to harvest perishable crops results in adverse consequences for growers, workers, and consumers of fresh fruit and vegetables. In recent years, the H-2A program has proven to be cumbersome and inefficient when faced with the task of supplying significant numbers of guest workers on short notice. As our industry continues to experience localized labor shortages throughout California and Arizona, the need for a reformed program to avert labor shortages continues to grow. Thus, legislation to reform the H-2A guest worker program is very important to the California fresh produce industries. S. 1814 and H.R. 4056 also include provisions that will provide undocumented workers with the opportunity to earn permanent status through employment in agriculture. This "adjustment of status" provision is a "win-win" situation for growers and farmworkers. Growers benefit through the stability of a legal workforce and the certainty that highly perishable crops will be harvested in a timely manner. Farmworkers benefit by earning the right to legal status, avoiding the substantial risks inherent in undocumented status, and get the protection of U.S. labor laws. Again, WGA strongly supports the bipartisan agricultural guest worker legislation with adjustment of status for farmworkers, and urges Congress to enact this legislation in 2000. FEDERAL CROP INSURANCE WGA has generally been supportive of efforts to expand effective risk management tools to growers of fresh fruits and vegetables. However, due to recent experience, we are concerned about potential adverse impacts on growers from any expansion of the Federal Crop Insurance Program. WGA strongly urges USDA and the Risk Management Agency to ensure that new crop insurance programs are structured in such as a way as to ensure that they do not disrupt existing markets for fresh fruits and vegetables. WGA's concerns are illustrated by the situation with the watermelon pilot program in 1999. Last year, watermelon growers in Arizona and California experienced one of the worst markets in history. The supply of domestic watermelons was much greater than in previous years, which produced record low farm-gate prices. Moreover, watermelon consumption did not increase significantly because the retail supermarkets did not pass along the low farm-gate prices to consumers. The watermelon farm-gate price collapse also adversely affected farm-gate prices for other types of melons grown by WGA members. WGA is concerned that the USDA's watermelon crop insurance pilot program was a major factor contributing to the increased supply of watermelons in the U.S. market. The pilot program implemented in select counties in a few States appears to have provided incentives for growers to expand production, or for new growers to enter the market. This created an imbalance in an industry that previously was characterized by a reasonably balanced supply and demand history. Large increases in acreage planted to watermelons in areas served by the pilot program indicate that the program may have been a major factor in causing this shift into watermelon acreage. WGA strongly opposes the continuation of the watermelon pilot program, and expansion of the Federal Crop Insurance Program to other fruit and vegetable crops, unless USDA can ensure that such programs will not disrupt traditional marketing patterns and will not provide artificial signals or stimulants towards increased acreage and supply. It should be remembered that fruit and vegetable markets are much different in nature than markets for the bulk commodities. Government programs designed for growers of bulk commodities generally are not effective for fruit and vegetables growers, and can often be detrimental to the latter. Ensuring that new programs are available on a equal basis among all growers, and will not disrupt markets, should be a standard requirement for RMA in developing any new crop insurance programs for fruit and vegetable commodities. WGA also believes that association and cooperatives have a vital role to provide in crafting crop insurance policies and providing premium discounts to growers. Any crop insurance reform approved by Congress must include a role for agricultural associations and cooperatives. FOOD QUALITY PROTECTION ACT REFORM WGA strongly supports efforts to provide for a better implementation process of the Food Quality Protection Act (FQPA), such as the "Regulatory Fairness and Openness Act of 1999" (H.R. 1592) by Rep. Pombo. This legislation does not change the fundamental requirements of FQPA, but rather reinforces the original FQPA language to ensure that the EPA uses actual data and realistic models in their risk calculations. The bill also would require EPA to use the data call-in provision of the law where there are data gaps. Effective and fair implementation of FQPA based on actual data and sound science is critical to ensuring that growers have access to the crop protection tools needed to grow nutritious and affordable fruits and vegetables. WGA is pleased to see that this FQPA reform bill has 218 cosponsors, thus attaining the support of a majority of the 435 members of the House, and urges Congress to move forward with the legislation as soon as possible. AGRICULTURE RESEARCH WGA appreciates the small increase in funding for Federal agricultural research that Congress has provided in the last year or two. However, our industry has two concerns regarding research. First, the Agricultural Extension Service has been decimated over the last 15 years. Their advice and applied research is critical to assisting growers in the development of more efficient ways of growing crops. In California, many of the long time extension advisors are reaching retirement age and it is not clear that there is the will to replace them. Second, we believe that more funding should be directed towards applied research. As we struggle with changes in pest control, new environmental legislation, and other challenges, applied research has the potential to assist in the development of new solutions to these issues. Thank you for this opportunity to present the WGA's views on Federal agricultural policy. I will be glad to respond to any questions. STATEMENT OF WILLIAM ZECH Mr. Chairman, it is a pleasure to appear before the House Committee on Agriculture to discuss U.S. agricultural policy. My name is William Zech, and I am an asparagus grower appearing before you today on behalf of the California Asparagus Commission. Asparagus is a valuable crop in California. California is the number one asparagus producing State in Nation with over 37,000 acres harvest in 2000. Asparagus contributed more than $126 million to California's economy last year. However, we are not the only region experiencing substantial production growth. Our neighbors to the south, Mexico and Peru have significantly increased imports to the U.S. over the last few years. From 1994 to 1998, imports into the U.S. increased by 42 percent, to approximately 108 million pounds. Mexico and Peru provide most of our fresh asparagus imports. In contrast, U.S. asparagus export sales have decreased by 30 percent during the same period, to about 33 million pounds. This decline in export sales has come about despite our best efforts to expand our export sales. The California Asparagus Commission partners with commodity organizations in other production areas to participate in the Federal Market Access Program (MAP). The national marketing organization, known as Asparagus USA, has participated in MAP since 1996. The program has contributed approximately $250,000 to the grower's international marketing budgets. In general, we've experienced tremendous success in target markets and believe the program is essential to our continued efforts to combat unfair trade policies of our trading partners. The program becomes more important as producers in other countries begin to compete toe-to-toe with U.S. producers in those markets we developed with MẶP funds. The California asparagus industry faces a number of trade barriers which should be a topic of consideration for this committee as a part of the trade title of any future farm bill and other legislation which comes before you. First, the California asparagus industry has encountered a number of phytosanitary barriers in our efforts to expand our export sales. I want to share a recent success story with you that illustrates the important role of the Federal Government in phytosanitary matters. Last year, the government of Taiwan halted some of our shipments, contending that U.S. asparagus was infected with an insect known as the burrowing nematode. However, officials from the Animal and Plant Health Inspection Service (APHIS) were able to provide the necessary scientific evidence proving the nematode does not affect U.S. asparagus. APHIS' work on this particular issue has significant economic benefit to the grower community. Taiwan has exported a study volume of California fresh asparagus since the beginning of our season. We are very pleased with the work of APHIS, particularly in light of our understanding that the agency is under-funded and understaffed. I trust that the committee, as it looks at our future agricultural policy, will take a close look at the activities of APHIS, which are so critical to the future health of U.S. agriculture and to our export sales. The California asparagus industry also has concerns with several aspects of the European asparagus market. The EU has allowed the formation of Producer Organizations through which fruits and vegetables are marketed. It is unclear how the specific benefits of these organizations, which we understand received over $1.8 billion last year, are passed along to European growers. Vegetable growers in the EU also receive export refunds, and we are advised that in 1997, they received approximately $76 million in such refunds. Additionally, the EU approves proposals from time to time that provide specific funds to certain crops. We have heard the Spanish asparagus industry has received funding in the amount of $125 per acre. Spanish asparagus has become a strong competitor in the Swiss market, historically one of our top export markets, and we suspect that the recent EU subsidies were designed to make the Spanish asparagus industry more competitive with U.S. exports. The Swiss market also causes us some concern. The Swiss government has established quotas on asparagus imports from May 1 to June 15. Asparagus imports above the allotted quota for the given week face a high tariff of approximately 72 Swiss francs per kilogram which essentially prices our exports out of the market with respect to Swiss domestic asparagus. While these quotas can be revised upward on a weekly basis depending on domestic supply, consumer demand, and pressure from our California exports, these trade restrictions continue to be a barrier to U.S. asparagus exports. I bring this information to your attention to point out that the U.S. asparagus industry continues to be confronted with European subsidies which undercut our efforts in the EU market. Our industry asks that, as you consult with Administration trade officials, you support a negotiating stance that will result in substantial reductions in EU subsidies. This is critical if U.S. asparagus growers are to be given the opportunity to compete on a more level playing field in international markets. In closing, I would like to ask for your support of H.R. 3593, a bill to authorize increased funding for the Market Access Program (MAP). Over its 15-year history, MAP has proven to be a non-trade distorting export promotion mechanism which assists in efforts to expand U.S. agriculture exports, and therefore is an excellent investment of resources. As noted earlier, Asparagus USA received limited funding under MAP ($257,039 in 1998, $245,526 in 1999) which provided vitally needed support to our efforts to share our very fine product with the rest of the world. Thank you for allowing me to speak to you on behalf of the California Asparagus Commission. I would be pleased to answer any questions the committee members may have. STATEMENT OF TOM SANFORD Mr. Chairman, members of the committee, my name is Tom Sanford. I am the mayor pro-tem of the city of Gridley, California. I appreciate the opportunity to testify before the committee today. The city of Gridley is largely an agricultural community whose primary product is rice. For many years our growers have grappled with the complex issues surrounding the disposal or use of the rice straw that remains after rice is harvested. The city of Gridley is leading a public-private partnership that plans to construct a biofuels plant that will turn rice straw into ethanol. The plant will take a byproduct of rice production and turn it into a commodity of value. In so doing, it will take a liability costly rice straw disposal-that threatens to drive growers away from rice production and create an asset that will help keep rice acreage in production and farm families in our region healthy. In short, the opportunity to turn rice straw into ethanol will benefit both rice growers and the region at large. Support of our agricultural producers and development of our economic base is an important goal for the city of Gridley. We are located in the heart of the Sacramento Valley's rice-growing region. A healthy rice industry is important to the health of our community, and to other communities like ours. We also fully recognize the value of research into production of environmentally beneficial fuels, and the impor tance of this research to the rice industry. Thus we are grateful that the Federal Government, through the Department of Energy, has taken a leadership role in helping us to advance our goal of turning the rice straw disposal problem into a new source of clean-burning, renewable liquid fuel for our State and Nation. The technologies that will be demonstrated at the Gridley ethanol plant will have applicability throughout rice-growing regions of the country as well as in other agricultural areas of the nation. These technologies will be applicable to corn fiber, for example. The lessons learned at the Gridley plant will help us understand the best ways to turn other agricultural byproducts into liquid fuels that will benefit rural economies as well as the environment. This pilot project is an introduction to the limitless potential of bio-refining. While we are confident that we can demonstrate a cost-effective technology that can be replicated elsewhere with limited or no Federal support, we believe that there is an important role for the U.S. Department of Agriculture in initiatives like the Gridley ethanol plant. Specifically, we recommend that USDA be authorized to provide financial support to help develop and demonstrate more cost effective and safe methods for collecting, storing and transporting rice straw and other similar agricultural byproducts intended for use as feedstock for ethanol production. Driving down the cost of collecting, storing and transporting rice straw will help improve the economic viability of ethanol production from this and other agricultural byproducts. In addition, it will help ensure our growers who produce rice receive the greatest possible benefit from the development of this important rice straw disposal technology. The need for safer storage methods was highlighted this past year when 4,000 tons of rice straw intended for use in a test facility burned uncontrollably after being ignited by vehicle exhaust. We must be able to protect the asset once it is collected from the fields after harvest and prior to its use in the ethanol making process. The development of safe, cost-effective collection, storage and transportation technologies and systems are critical to rice growers and the long-term viability and reliability of ethanol production from rice straw. On behalf of this important new industry to rural America, our experience also suggests that the committee should consider providing some form of federallybacked credit enhancements to help promote private sector financial support for the construction of the facilities that will be needed to maximize the use bio-refining. Congress has provided credit enhancements to encourage private investments in toll roads and other similar public-private partnerships. Limited Federal support in the form of credit enhancements would greatly ease access to much needed private capital to make bio-refining a possibility throughout the agricultural areas of our country. Again, Mr. Chairman, members of the committee, I strongly urge the committee to authorize USDA to provide additional financial support for biofuels. Such support would represent a wise investment of scarce USDA funds, and I encourage the committee to consider addressing this issue in the upcoming reauthorization of Federal farm programs. THE UNITED STATES HOUSE AGRICULTURE COMMITTEE REQUEST FOR WRITTEN TESTIMONY UNITED STATES COMMITTEE ON AGRICULTURE C/O U.S. HOUSE COMMITTEE ON AGRICULTURE SUBMISSION BLUE DIAMOND GROWERS The following is submitted by Blue Diamond Growers in response to the United States House Agriculture Committee request for Farm Policy Hearings, to identify those issues that most affect California farmers. Blue Diamond Growers is a non-profit farmer owned marketing cooperative. It markets almonds for its members. The almonds are grown exclusively in California and are the largest tree crop in the state. Almonds are the number one food export from California and consistently have ranked in the top ten food exports from the United States. Blue Diamond Growers exports the majority of the almonds grown in the State of California. Production continues to expand in order to supply the world. Approximately 70% of the world supply of almonds comes from California. Commodity Purchases: Blue Diamond Growers is working to assure amendments are included in the FY 2001 agriculture appropriations bill to continue to ensure farmer cooperatives, regardless of size, are fully eligible to participate under USDA's commodity purchase programs - a potential $2 billion market. Crop Insurance: Blue Diamond Growers supports changes in federal crop insurance program to allow farmers through their cooperatives and associations to join together to purchase or acquire needed insurance coverage on a more cost-effective basis. |