USDA AND DOT JOIN FORCES TO ADDRESS CRITICAL AGRICULTURAL TRANSPORTATION
                                            Release No. 0306.98
                             USDA: Andy Solomon  (202) 720-4623
                                          andy.solomon@usda.gov
                             DOT:    Bill Adams  (202) 366-5580
USDA AND DOT JOIN FORCES TO ADDRESS CRITICAL AGRICULTURAL TRANSPORTATION
ISSUES
       KANSAS CITY, MO, July 27, 1998--At the first national summit of its
kind, U.S. Agriculture Secretary Dan Glickman and U.S. Transportation
Secretary Rodney E. Slater pledged that their departments would join forces to
meet the transportation challenges facing farmers and rural Americans.
       Glickman and Slater signed an agreement creating a joint Department of
Agriculture (USDA)-Department of Transportation (DOT) task force that will
formalize information sharing between the departments, identify issues
critical to rural mobility, consider joint research efforts, develop joint
policy initiatives, and undertake outreach to users and providers of rural
transportation services.  The departments will also increase coordination and
efficiency by identifying and eliminating duplicative activities.
       "Last year's rail-grain crisis served as a wake-up call," said
Glickman.  "It reminded us that our transportation systems must keep pace with
the revolutionary changes occurring in the global marketplace.  Secretary
Slater and I are committed to helping farmers move their products as
efficiently and cost-effectively as possible."
       In his keynote speech to the summit, Secretary Slater also announced
that he will develop a rural transportation initiative to assure that rural
America shares fully in the economic and social benefits the transportation
system can provide.
       "We can produce the finest grain in the world, but it does not do
anyone much good if it sits in the elevator at the track," said Secretary
Slater.  "It is our goal to make sure that all Americans, whether in rural or
urban areas, share fully in the economic and social benefits which our
transportation system provides."
       The DOT plan, which Secretary Slater will unveil this fall, is to
include railroad components which he had urged be included in the recently
passed TEA-21, the Transportation Equity Act for the 21st Century.  TEA-21
provides for loans and loan guarantees for up to $3.5 billion for rail
rehabilitation and improvement financing.  Of that, $1 billion is reserved for
projects on regional and local carriers, projects which are considered
priorities.
       The DOT plan also contains a new light density rail line pilot program
to provide grants to states.  Many of the lines serving rural communities are
light density, and this program could offer additional opportunities for
capital improvements and rehabilitation projects.
       Also today, Secretary Glickman unveiled a draft USDA report that
identifies key transportation issues facing American agriculture in the
future.  The report notes that agriculture is the largest user of freight
transportation services in the country.  Rail, waterways, roads, and air are
all significant modes of transportation for American farm products.  This
document and the summit are key steps toward developing USDA's long-term
agricultural transportation strategy, which is vital to ensuring America's
competitiveness in the world economy.
       While much of USDA's National Agricultural Transportation summit
focuses on long-term actions, Secretary Glickman today announced an important
interim measure designed to alleviate grain car shortages during peak
marketing periods.  USDA and the Surface Transportation Board are releasing
for public comment a joint early warning alert.  This alert is designed to
help shippers and carriers coordinate grain transportation logistics by
providing them with detailed information about agricultural market conditions.
            President Clinton and Vice President Gore have made the needs of
American farmers and rural America important national priorities.  On July 23,
President Clinton announced a detailed action plan for rural America that
expands the rural economy through exports and development, improves the farm
income safety net, strengthens rural infrastructure and promotes health,
welfare and a clean environment.
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