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S. HRG. 109–819

REVIEW NOMINATIONS FOR USDA, CFTC AND

FARM CREDIT ADMINISTRATION

HEARING

BEFORE THE

COMMITTEE ON AGRICULTURE, 

NUTRITION, AND FORESTRY

UNITED STATES SENATE

ONE HUNDRED NINTH CONGRESS

SECOND SESSION

DECEMBER 6, 2006

Printed for the use of the 

Committee on Agriculture, Nutrition, and Forestry

(

Available via the World Wide Web: http://www.agriculture.senate.gov 

COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

SAXBY CHAMBLISS, Georgia, Chairman 

RICHARD G. LUGAR, Indiana 

THAD COCHRAN, Mississippi 

MITCH MCCONNELL, Kentucky 

PAT ROBERTS, Kansas 

JAMES M. TALENT, Missouri 

CRAIG THOMAS, Wyoming 

RICK SANTORUM, Pennsylvania 

NORM COLEMAN, Minnesota 

MICHEAL D. CRAPO, Idaho 

CHARLES E. GRASSLEY, Iowa 

TOM HARKIN, Iowa 

PATRICK J. LEAHY, Vermont 

KENT CONRAD, North Dakota 

MAX BAUCUS, Montana 

BLANCHE L. LINCOLN, Arkansas 

DEBBIE A. STABENOW, Michigan 

E. BENJAMIN NELSON, Nebraska 

MARK DAYTON, Minnesota 

KEN SALAZAR, Colorado

MARTHA SCOTT POINDEXTER, Majority Staff Director 

DAVID L. JOHNSON, Majority Chief Counsel 

VERNIE HUBERT, Majority Deputy Chief Counsel 

ROBERT E. STURM, Chief Clerk 

MARK HALVERSON, Minority Staff Director 

(II) 

(III)

C O N T E N T S 

Page

HEARING(S):

Reveiw Nominations for USDA, CFTC and Farm Credit Administration .......... 1

Wednesday, December 6, 2006

STATEMENTS PRESENTED BY SENATORS 

Chambliss, Hon. Saxby, a U.S. Senator from the State of Georgia, Chairman, 

Committee on Agriculture, Nutrition, and Forestry ......................................... 1

Cochran, Hon. Thad, a U.S. Senator from Mississippi ......................................... 2

Harkin, Hon. Tom, a U.S. Senator from Iowa ....................................................... 9

Panel I 

Keenum, Mark E., Nominee for Under Secretary for Farm and Foreign Agricultural Services, U.S. Department of Agriculture ........................................... 4

Sommers, Jill E., Nominee to be Commissioner of the Commodity Futures 

Trading Commission ............................................................................................ 6

Strom, Leland A., Nominee for the Board of the Farm Credit Administration . 7

APPENDIX 

PREPARED STATEMENTS: 

Harkin, Hon. Tom ............................................................................................ 18

Keenum, Mark E. ............................................................................................. 20

Sommers, Jill E. ............................................................................................... 24

Strom, Leland A. .............................................................................................. 26

DOCUMENT(S) SUBMITTED FOR THE RECORD: 

Durbin, Hon. Richard J.: 

Written letter of support for Leland A. Strom ............................................... 32

Leahy, Hon. Patrick J.: 

Written letter of support for Mark E. Keenum .............................................. 33

Roberts, Hon. Pat: 

Written letter of support for Jill E. Sommers, Mark Keenum and Leland 

A. Strom ......................................................................................................... 34

American Association of Crop Insurers, letter of support for Mark E. 

Keenum .......................................................................................................... 35

Copeland, Cook, Taylor & Bush, P.A., letter of support for Mark E. 

Keenum .......................................................................................................... 36

Ducks Unlimited, letter of support for Mark E. Keenum ............................. 38

International Dairy Foods Association (IDFA), letter of support for Mark 

E. Keenum ..................................................................................................... 39

National Council of Farmers Cooperatives, letter of support for Leland 

A. Strom ......................................................................................................... 40

National Milk Producers Federation, letter of support for Mark E. 

Keenum .......................................................................................................... 41

The Farm Credit Council, letter of support for Leland A. Srom .................. 42

Various agricultural organizations, letter of support for Mark E. Keenum 43

QUESTION(S) AND ANSWER(S): 

Baucus, Hon. Max: 

Submitted questions to Mark E. Keenum ...................................................... 48

Page

IV

Crapo, Hon. Mike: 

Submitted questions to Mark E. Keenum ...................................................... 49

Harkin, Hon. Tom: 

Submitted questions to Mark E. Keenum ...................................................... 51

Submitted questions to Leland A. Strom ....................................................... 53

Submitted questions to Jill E. Sommers ........................................................ 54

Keenum, Mark E.: 

Written response to questions from Hon. Max Baucus ................................. 55

Written response to questions from Hon. Mike Crapo .................................. 57

Written response to questions from Hon. Tom Harkin ................................. 59

Sommers, Jill E.: 

Written response to questions from Hon. Tom Harkin ................................. 62

Strom, Leland A.: 

Written response to questions from Hon. Tom Harkin ................................. 63

ADDITIONAL MATERIAL(S) SUBMITTED FOR THE RECORD

Committee questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Mark 

E. Keenum ..................................................................................................... 66

Committee questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Jill E. 

Sommers ........................................................................................................ 83

Committee questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Leland 

A. Strom ......................................................................................................... 100

(1)

REVIEW NOMINATIONS FOR USDA, CFTC AND 

FARM CREDIT ADMINISTRATION 

Wednesday, December 6, 2006

U.S. SENATE, COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY, Washington, DC 

The Committee met, pursuant to notice, at 9:31 a.m., in room 

SR–328a, Russell Senate Office Building, Hon. Saxby Chambliss, 

Chairman of the Committee, presiding. 

Present or submitting a statement: Senators Chambliss, Cochran, Roberts, Coleman, Harkin, Leahy, and Salazar. 

STATEMENT OF HON. SAXBY CHAMBLISS, A U.S. SENATOR 

FROM THE STATE OF GEORGIA, CHAIRMAN, COMMITTEE ON 

AGRICULTURE, NUTRITION, AND FORESTRY 

Chairman CHAMBLISS. Good morning. We here today to conduct 

a hearing on three nominations to important posts in the Federal 

Government. The nominees are Mark Keenum to be Under Secretary of Agriculture for Farm and Foreign Agricultural Services 

and to be a member of the Board of Directors of the Commodity 

Credit Corporation; Leland Strom, to be a member the Board of Directors of the Farm Credit Administration; and Jill Sommers to be 

a Commissioner at the Commodity Futures Trading Commission. 

We all appreciate their willingness to come forward and engage 

in public service. 

One of the nominees, Mark Keenum, is no stranger to this Committee, having served on Senator Cochran’s staff for over 17 years. 

Mark has been a good friend of mine for many years and Mark, it 

is indeed a privilege to have you being willing to step up at the Department of Agriculture and continue your public service. 

I welcome all of the nominees and thank them for appearing before the Committee. 

For the information of Senators and staff, and after consultation 

with Senator Harkin, I ask that any questions of the nominees for 

the record be submitted by 4 p.m. today in order to expedite the 

confirmation process. 

Senator Harkin will be recognized when he gets here but I want 

to say publicly how much I appreciate the cooperation of Senator 

Harkin in getting these nominees up here in a very expedited manner, particularly you, Jill. Jill has been a good friend of mine for 

many years. She is a very capable person to be going to the CFTC. 

We had to sort of pull and tug down at the White House to get the 

paperwork, the bureaucracy. As the Chairman the Appropriations 

Committee well knows, it is difficult to endure sometimes. But we 

2

did. But it could not have happened without Mark and without 

Senator Harkin’s cooperation, so I appreciate that very much. 

At this time I will turn to my good friend from the State of Mississippi, Senator Cochran, for an introduction. 

STATEMENT OF HON. THAD COCHRAN, A U.S. SENATOR FROM 

MISSISSIPPI 

Senator COCHRAN. Mr. Chairman, thank you very much. 

I am pleased to join you in welcoming our nominees to the Agriculture Committee today for their confirmation hearing. I am especially pleased, of course, that Mark Keenum has been nominated 

by President Bush to be Under Secretary of Agriculture for Farm 

and Foreign Agricultural Services. 

I do not know of anyone who would bring any better qualifications to this job that Mark Keenum. He has an Agriculture Economics degree from Mississippi State University. He got graduate 

degrees from that university, including a Ph.D. He was on the faculty as an instructor for a while and actively engaged in research 

in some very important emerging agriculture and aquaculture 

areas of interest and concern in our State. 

He worked for the Extension Service. He has worked as a research assistant at Mississippi State University, as I pointed out. 

And he joined my office here in Washington as a specialist in agriculture and agriculture economics. 

He has really been an outstanding member of my staff, both in 

helping to develop policy initiatives and monitor all the legislation 

affecting the Department of Agriculture. 

And then, when I was Chairman of this Committee, he was a 

very valuable adviser and an assistant in helping shape policy 

there, writing Farm Bills. He was actively engaged in several Farm 

Bill hearings leading up to the bill, the crafting of the language, 

negotiating with other member’s staffs, and working to work out 

differences in conference with the House, dealing with the Administration over the years, all in a very professional and thoughtful 

way. 

His personal qualities are impeccable. He is courteous, he is intelligence, he works hard, he has a sense of responsibility, he has 

got good judgment. 

So I am pleased to be here today and to congratulate him on his 

nomination and to urge the Committee to favorably consider the 

nomination and report it as soon as possible. We really do need 

somebody in this position as soon as possible, and he will do a 

great job in helping develop options for the next Farm Bill. He will 

be a great resource in that process for the Administration, as well 

as for the Congress, and particularly this Committee in the Senate. 

He and his wife, Rhonda, are close personal friends of mine. She 

is, of course, in an important position at the White House. They 

have four delightful, darling children who were a little bit rambunctious a while ago, so we have not have not invited them in to 

testify yet. They are a great family and they will reflect great credit on the Senate family, I think, in this new responsibility that 

Mark will have. 

Thank you, Mr. Chairman. 

3

Chairman CHAMBLISS. Mark, obviously in this Committee, there 

is no higher recommendation that can come from anyone other 

than Senator Cochran, so you have got a lot to live up to there. He 

referenced your children, and you being a good friend of mine for 

so many years, the only thing I question is your judgment to have 

four under the age of two. Wow. 

Mr. Keenum. I am very blessed. 

[Laughter.] 

Chairman CHAMBLISS. That is a great attitude to have. 

We have statements from Senator Durbin supporting the nomination of Mr. Strom, that we will place in the record. 

[The prepared statement of Hon. Richard Durbin can be found on 

page 32 in the appendix.] 

[The prepared statement of Hon. Pat Roberts can be found on 

page 34 in the appendix.] 

[The prepared statement of Hon. Patrick J. Leahy can be found 

on page 33 in the appendix.] 

Mr. KEENUM. Thank you very much, Mr. Chairman. 

I would like to introduce my best friend and my wife for the past 

22 years, the mother of our four children, my wife, Rhonda 

Keenum. 

And somewhere, I am told, are my children. Here they come. 

[Laughter.] 

Mr. Keenum. We have 2-year-old triplets and their names are 

Kathryn, Everett and Mary Phillips. And we have a 7–month-old 

daughter named Victoria. 

[Laughter.] 

Mr. Keenum. As I said, Mr. Chairman, I am very, very blessed. 

Chairman CHAMBLISS. Your job of crafting a Farm Bill will be 

easy compared to going home at night. 

[Laughter.] 

Chairman CHAMBLISS. Ms. Sommers. 

Ms. Sommers. Thank you, Mr. Chairman. 

My wonderful husband, Mike, is behind me. And we also have 

a handful at home, a 3–year-old, a 4–year-old and a 2–year-old. 

And we decided that today was not the day to bring them. It was 

not a challenge I was up for today. 

[Laughter.] 

Ms. SOMMERS. Thank you. 

Chairman CHAMBLISS. Mr. Strom. 

Mr. STROM. Thank you, Mr. Chairman. 

Dr. KEENUM. I can offer my wife. I would like to introduce my 

inspiration of 29 years, Twyla is here with me today. And she, at 

one time, owned operated a preschool for almost 15 years, so she 

can help today. 

[Laughter.] 

Mr. STROM. I have with me also my son, Derek, and his wife, 

Kim. Derek is nearing the end of his Ph.D. work in particle physics 

at Fermi Lab in Illinois. 

I have with me also my daughter, Amber, who works for the Department of Agriculture at the National Wildlife Research Center 

in Fort Collins, Colorado; and my youngest son, Tyler, who is a junior at Iowa State University, studying ag business and economics. 

4

Chairman CHAMBLISS. Great. We are glad to have all of those 

here. 

All of you obviously have very impressive, very fine looking families. 

Before we take your statements, I would like to ask all three of 

you to stand and raise your right hand. 

To each of you, do you swear that the testimony you are about 

to provide is the truth, the whole truth, and nothing but the truth, 

so help you God? 

Mr. KEENUM. Yes. 

Ms. SOMMERS. Yes. 

Mr. STROM. Yes. 

Chairman CHAMBLISS. To each of you, do you agree that you will 

appear before any duly constituted Committee of Congress if asked 

to appear? 

Mr. KEENUM. Yes. 

Ms. SOMMERS. Yes. 

Mr. STROM. Yes. 

Chairman CHAMBLISS. Thank you, very much. You may be seated. 

We will now take any opening statements that you have. Again, 

Mark, we will start with you, Jill, and Mr. Strom, and go in that 

direction. 

STATEMENT OF MARK E. KEENUM, NOMINEE FOR UNDER SECRETARY FOR FARM AND FOREIGN AGRICULTURAL SERVICES, U.S. DEPARTMENT OF AGRICULTURE 

Mr. KEENUM. Thank you, Mr. Chairman. Thank you, Senator 

Harkin, as well, and distinguished members of the Committee. I 

am both honored and humbled to appear before you today for consideration for the position of Under Secretary for Farm and Foreign 

Agricultural Services. 

I would like to express my gratitude to President Bush for nominating me and my appreciation to Secretary Johanns and Deputy 

Secretary Connor, for the confidence they have bestowed upon me. 

I especially want to thank Senator Thad Cochran for his gracious 

introduction. 

I have been extremely fortunate to have been able to serve Senator Cochran as his Legislative Assistant for Agriculture for sevenand-a-half years and as his Chief of Staff for the past 10 years. 

During my tenure with him, I have learned a tremendous amount. 

In fact, I have spent many hours in this very room, participating 

in staff deliberations, Committee hearings and markups addressing 

numerous issues important to American agriculture. 

It has been an honor for me to serve Senator Cochran for these 

many years and I owe a great deal to him for the person that I am 

today. He has been a tremendous influence in my life, both professionally and personally. Senator Cochran is a thoughtful and deliberate decisionmaker. He also wants to know the facts and not the 

rhetoric. Of the many things I have learned from the Senator, the 

most important is how to treat people, always with dignity and respect. 

I was born in Starkville, Mississippi while my father was studying agriculture at Mississippi State University. Early in his profesVerDate 0ct 09 2002 13:28 Mar 14, 2007 Jkt 000000 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 C:\DOCS\33562.TXT SAG2 PsN: SAG2
5

sional life, my father went to work for the U.S. Department of Agriculture. After over 30 years of service with the Natural Resources 

Conservation Service, he retired and is currently living with my 

mother on a small farm in the Mississippi Delta. During my father’s service with USDA, we lived in several small rural communities throughout Mississippi. 

My paternal grandfather also worked for USDA, with the former 

Soil and Water Conservation Service. He, too, owned a farm in the 

Mississippi Delta, in addition to owning and managing with my 

grandmother a small country story. I have very fond memories of 

riding on a tractor with him as a young boy while he plowed his 

fields. If confirmed, I would be a third-generation employee of 

USDA. 

I have grown up in and around agriculture all my life. My experience has spanned from working as a farm laborer, a crop scout, an 

agricultural extension specialist, an agricultural research associate, 

and an agriculture economics professor, to working with the members and the staff of the U.S. Senate Committee on Agriculture, 

Nutrition, and Forestry during the consideration of three Farm 

Bills and other legislative initiatives important to American agriculture. 

During my career, I have learned a great deal about the complex 

nature of agricultural production that farmer’s face today. U.S. 

farmers and ranchers are the most efficient and resilient producers 

in the world. Our Federal Government has a key role to play in ensuring that U.S. farmers are able to meet the challenges of producing a bountiful supply of safe and affordable food and fiber 

products, despite the many risks they face. 

Farmers also should have the resources and support they need 

from the Government to produce crops that can help to reduce our 

Nation’s dependency on foreign oil. Additionally, with agricultural 

exports expected to reach a record of $68 billion this year, it is imperative for our Government to work aggressively to promote U.S. 

agricultural products in the international arena while pursuing fair 

access to vital export markets. 

Mr. Chairman, distinguished members, I have spent the greater 

part of my career working within the Senate family, and therefore 

I have a keen appreciation for the unique nature of the legislative 

process. I believe this experience will be especially beneficial during 

reauthorization of the Farm Bill this coming year. During my tenure, I have especially recognized the importance and the benefits 

of pursuing solutions in a bipartisan manner. 

I can pledge to this Committee that, if confirmed, I will fully 

dedicate myself to the broad mission of this important office and 

that I will commit to be accessible to all members and staff. 

Again, Mr. Chairman, distinguished members, I want to thank 

you for allowing me to appear before you today and I welcome any 

questions or comments. 

Thank you Mr. Chairman. 

[The prepared statement of Mr. Keenum can be found on page 

20 in the appendix.] 

Chairman CHAMBLISS. Thank you. 

Ms. Sommers. 

6

STATEMENT OF JILL E. SOMMERS, NOMINEE TO BE COMMISSIONER OF THE COMMODITY FUTURES TRADING COMMISSION 

Ms. SOMMERS. Thank you, Mr. Chairman. 

Chairman Chambliss and members of the Agriculture Committee, I am honored to sit before you today as a nominee to be 

Commissioner at the Commodity Futures Trading Commission. 

It is a true honor and privilege for me to be nominated by the 

President and be considered for this distinguished position. 

I would also like to thank Senator Roberts and his staff for their 

support through this process, as well as the Agricultural Committee staff for their assistance. 

I have already recognized my wonderful husband, Mike, who is 

here with me today and my children, who are at home. 

I started working on Capitol Hill over 15 years ago for Senator 

Bob Dole as an intern during the last semester of my senior year 

in college at the University of Kansas. I worked for him in various 

capacities for almost 5 years. And from Senator Dole, I learned the 

importance of a fair and reasonable decisionmaking process. 

I grew up in a small town in Southeast Kansas, Fort Scott. My 

parents have owned a small business in our farming community for 

38 years. My parents taught me the value of hard work and integrity, and I promise to bring all of the values of my Kansas roots 

with me to the Commission. 

During my career, I have had the opportunity to work within the 

futures industry. It is a fascinating world which is constantly 

changing and innovating. For example, when I started with the 

Chicago Mercantile Exchange in 1998, their electronic trading platform was used for overnight or after hours trading and the electronic volume was less than 15 percent of their total volume. 

Today, the CME trades millions of contracts a day electronically 

with a system that trades virtually 24 hours. 

Fortunately, when Congress was tasked with reauthorizing the 

Commodity Exchange Act in 2000, they saw that the industry was 

quickly evolving and they created a framework to give the CFTC 

the appropriate regulatory tools to keep pace with the development 

in these markets. This bill and my work on it shaped fundamentally my view of how the Government can and should interact with 

these markets. The CFMA unleashed the power of the free market 

on the futures industry and it did it in a way without sacrificing 

a rigorous enforcement structure at the CFTC. 

The CFTC does an outstanding job of encouraging market growth 

while ensuring the integrity of the market place and protecting 

market users. The Agency has taken this mission seriously and 

pursues very aggressive action against wrongdoers in the market. 

My regulatory philosophy rests on some of the basic principles 

Congress stressed during CFMA, fair and flexible supervision while 

providing strong and independent oversight. 

Congress got it right with the CFMA. It did it through encouraging competitiveness and assuring legal certainty. Congress, in its 

wisdom, understood the truth, that American entrepreneurs and 

traders are the best in the world if given the power to succeed. 

Whether you are a farmer trading wheat in Kansas City or a trader in Chicago buying Treasury Bonds, the CFTC regulates each 

7

market with the proper level of oversight. Every one of the contracts traded on each futures and options exchange in the United 

States plays an important role, and every market participant deserves to have confidence in the integrity and efficiency of those 

markets. 

I understand that there are several challenging issues facing the 

Commission, but as a mother of three children under five I know 

how to handle a challenge. 

If confirmed by this Committee and the Senate, I would work 

hard to ensure that the CFTC continues its role of encouraging efficient, transparent and financially sound futures and options markets while protecting the public from fraud, manipulation and abusive practices. 

Thank you for the opportunity to appear before you today. I will 

be happy to answer any questions the Committee may have. 

I would also like the record to reflect an oversight on my SF 278 

form that I found yesterday while going over it with the Committee 

staff. On page five of seven, the Chicago Mercantile Exchange stock 

should be listed as generating income between $5,001 and $15,000 

due to a sale of stock in June of 2005. 

[The prepared statement of Ms. Sommers can be found on page 

24 in the appendix.] 

Chairman CHAMBLISS. Thank you. 

Mr. Strom. 

STATEMENT OF LELAND A. STROM, NOMINEE FOR THE BOARD 

OF THE FARM CREDIT ADMINISTRATION 

Mr. STROM. Mr. Chairman, Senator Harkin, and distinguished 

members of the Committee, I also have deeply honored and humbled to have the opportunity to appear before you today as a nominee of the President for the Board of the Farm Credit Administration. And also. I would like to say again, I am very proud to have 

my family with me today. 

I am also very proud to appear before you today with the support 

of my Senators from Illinois, Richard Durbin and Barack Obama, 

as well as my Congressman, Speaker J. Dennis Hastert. 

Being here today is far from the small dairy farm in which I was 

raised in Kane County, Illinois. In the late 1800’s my grandparents 

settled in the picturesque rolling hills of the Fox River Valley, 

about 40 miles west of Chicago, at the time a good day’s journey 

from the city. 

One of my earliest farming experiences was at the age of 10 

when my brother and I purchased a used John Deere 14T baler 

and, pulling it behind an Allis Chalmers WD45 tractor on loan 

from dad, began doing custom hay baling. Fortunately, my brother 

was older and did most of the wagon loading until I got a little bigger and could actually throw a bale of hay. Those experiences 

though provided me a strong understanding of the value of a good 

day’s work, along with the satisfaction of a job well done. Today, 

the city has reached our farm and my small community is faced 

with the challenges that comes with population growth. 

Similarly, the agricultural industry today faces many challenges. 

The issues of globalization, technology, energy, and trade, are only 

8

a few examples of the myriad of forces shaping the agricultural 

landscape of the 21st Century. 

Over the years, I have had the honor and pleasure of serving the 

ag industry in a variety of ways, from being a board member of our 

local farm service cooperative and organizations such as Farm Bureau, to serving as a member of the Federal Reserve Bank of Chicago’s Advisory Council on Agriculture, Labor and Small Business. 

In regards to this role that I have been nominated for, I hope 

that you may find me uniquely qualified from an experience standpoint, as I have been a member/borrower of the Farm Credit System for nearly 30 years. Shortly after becoming a borrower in the 

late 1970’s, I was asked to run for the board of the local Production 

Credit Association and was elected in 1981. 

I have over 25 years of service to that organization, as well as 

serving 9 years on the board of AgriBank, one of the System’s district banks. Over the last three decades, there have been many 

other roles and assignments I have served, which have given me 

a deep understanding and a great respect for the role the System 

plays in the agricultural sector and in rural America. 

My service to the Federal Reserve has given me a better knowledge of how the Farm Credit System fits into the overall industry 

that lends to agriculture, which includes the commercial banking 

sector as well as other sources of agricultural credit. 

During the ag crisis of the 1980’s I gained a deep understanding 

of the issues that confront the agricultural and lending industries, 

and how important having sound business practices can be to 

reaching success. I have a very profound respect for the importance 

of the role that the Farm Credit Administration plays as the armslength safety and soundness regulator of the Farm Credit System. 

In closing, I would like to say that I take a strong interest and 

pride in community and public service. From coaching youth sports 

at home and serving on my local church and school boards, to the 

Federal Reserve and the Farm Credit System, I have always considered the calling of public service a high priority in my life and, 

hopefully, something that I can pass on to my children and future 

generations. 

If you should find me worthy of this position, I look forward to 

working with you toward a strong and prosperous agricultural and 

rural America. 

I thank the Committee for their time and consideration and look 

forward to your questions. 

[The prepared statement of Mr. Strom can be found on page 26 

in the appendix.] 

Chairman CHAMBLISS. Thanks very much to all three of you. 

Now that Senator Harkin has joined us, Tom, I will turn to you 

for any opening comments you wish to make. But I want to reiterate what I said in my earlier opening statement, and that is you 

and I have always had a great working relationship. We have 

worked in a very bipartisan way. And that has been no better exhibited than by your cooperation and the cooperation of your staff 

in expediting this hearing, particularly with respect to Jill, as we 

just got her paperwork in the last day or two. 

Thank you for that and I thank Mark and all of your staff for 

being so cooperative and willing to get this expedited. 

9

As you and I know, it is the best interests of farmers and ranchers across America that this happen and that is the spirit we have 

always worked in and I thank you. 

STATEMENT OF HON. TOM HARKIN, A U.S. SENATOR FROM 

IOWA 

Senator HARKIN. Mr. Chairman, thank you and let me might 

repay that in kind by thank you for your leadership of this Committee over the last couple of years and for your willingness to 

move ahead on early hearings on the Farm Bill. You went all over 

the country to get input from people in a lot of different places 

around America. You came to Iowa, I know, and went to other 

states. I want to thank you for that. 

And I just want you to know that as I assume this gavel, next 

month I guess, that we intend to pick up on that. I thank you for 

that. You have laid a great groundwork for the input on the Farm 

Bill. And I look forward to working with you closely as we develop 

that next year. 

Again, I want to thank you and I want to thank your staff. Martha has been great in working with us through all of this. 

And this Committee has always—I have always liked the fact 

that we sit at a table. It has always been a kind of a nice thing. 

I do not like these boxes and stuff. 

Chairman CHAMBLISS. Better than a submarine. 

Senator HARKIN. But it has always been a nice feeling for all of 

the years I have been here to sit around a table. It just has less 

of a partisan ring to it and stuff like that. And that is the way we 

have tried to operate this Committee. I know that we will continue 

to do the same in the future. 

So I just thank you very much for all of your cooperation and everything you have done, and look forward to a very smooth transition and working with you on the upcoming Farm Bill. 

I say the same to my good friend, Thad Cochran too. We have 

always had a great relationship here on this Committee and working with you all. We have got some tough battles ahead. I know 

that, not so much here, I think budget problems more than anything else, in terms of what we are going to get for our next Farm 

Bill and everything. 

But we have a good Committee, a great Committee. There is a 

lot of issues out there confronting us that we will be facing down 

the road. 

These three nominees, I have looked at their backgrounds and 

stuff, and I could not be more pleased with all of your backgrounds 

and your expertise, and I hope that we can expedite this and get 

it through the floor soon. I do not know when, Mr. Chairman. 

Chairman CHAMBLISS. As soon as possible, tonight or tomorrow. 

Senator HARKIN. Before Friday anyway, as I understand we may 

not be back after Friday. 

But I want to thank our three nominees for being willing to serve 

the Government, to serve the public in these capacities. 

As I said, and I will just ask that my statement be made a part 

of the record, but all three of these positions are very important, 

very vital to the smooth functioning of our markets, in the case of 

the Commodity Futures Trading Commission, in terms of the 

10

Under Secretary of Agriculture for Farm and Foreign Agricultural 

Services, it covers a broad gamut of things that we do. And of 

course, with the Farm Credit Administration. All three are very 

vital functions. 

I thank you for your past service and for being willing to serve 

in this capacity, and hopefully we will get this done very soon. 

Thank you, Mr. Chairman. 

[The prepared statement of Hon. Tom Harkin can be found on 

page 18 in the appendix.] 

I know Senator Coleman has a very important hearing he has to 

attend in a few minutes, so I am going to defer my questions until 

the end and I will recognize Senator Coleman initially for any 

questions he would like to begin with. 

Senator COLEMAN. Thank you, Mr. Chairman. I greatly appreciate that courtesy. 

I want to make clear that I think these are all extraordinary 

nominees. I hope that we can move very, very quickly on their confirmations. 

I really just have one line of inquiry to Dr. Keenum, and again 

reflect, stating up front, this is a tremendous nominee. 

I have some concerns about things that happened before you are 

going to get to USDA, particularly regarding the sugar policy, the 

Sugar Program. The concern I have is we had a sugar market last 

spring thing that was in balance. There was a disruptive impact on 

the sugar industry in Minnesota and North Dakota due to bad 

weather in the beet regions, monstrous hurricanes and cane sugar. 

But we had a sugar market in balance, and USDA doubled their 

inputs to compensate, the market was well supplied, the sugar policy was working as designed. 

On July 27, I do not have the charts here to show you, but I am 

sure you are familiar with it, the USDA, by its own actions, undermined the U.S. sugar market balance and has severely threatened 

the no-cost operation of our sugar policy. 

What happened on that date is USDA issued a decision that sent 

the market into a nose dive. You can actually see that in some of 

the graphics. It announced an increase to the then-current import 

quota of 2005–2006, announced an import quota for 2006–2007 

that was more than half a million tons in excess of our WTO and 

NAFTA import requirements, and promised Mexico generous and 

unwarranted additional access for the last quarter of 2007. 

I think market prices since July 27th have dropped two to three 

cents per pound, or more than 10 percent. Each one cent drop in 

price means a loss for industry of $170 million in the value of this 

year’s crop. 

Furthermore, sugar loan forfeitures are now a serious threat, 

when they were not before. Raw cane sugar prices have already 

fallen below loan forfeiture levels. Refined beet prices are declining 

and nearly at forfeiture levels, as well. 

Again, doctor, this is something you were not responsible for. But 

what I would like is from you a commitment to work with us and 

work with this Committee to restore balance to the U.S. sugar market, eliminate the threat of sugar loan forfeitures that would be 

very costly to American taxpayers. 

Can I get that commitment? 

11

Mr. KEENUM. Absolutely, Senator. 

In my review of the situation you described, the Department of 

Agriculture, in July, did an estimate on U.S. domestic production 

of sugar and they underestimated sugar yields. And as such, they 

adjusted the tariff rate quotas to allow more imported sugar to 

come into the U.S. markets. It had a negative impact when we 

found out our actual yields were much higher than had been estimated. 

It would be my intent, Senator, to sit down and talk with representatives of the sugar industry, get their input on this, talk with 

the pertinent staff at USDA that has oversight over the sugar program, at FAS and FSA, and get all the facts. 

Because the law, as I understand it, is very clear. It requires 

that the program be managed in a way that there is no net cost 

to taxpayers. These actions and the estimations of the yields are 

always unpredictable when you are dealing with yields and weather and whatnot. But I think it is important and incumbent upon 

the Government and the agencies that have jurisdictions over these 

important programs to again comply as best they can to the intent 

of the law. And again, the law says to manage the program at no 

net cost to the taxpayers. 

And because of these actions, we are at very close levels of loan 

forfeitures. Again, this would be something I would look at and 

take very seriously if I am confirmed. 

Senator COLEMAN. I appreciate that, greatly appreciate it and do 

look forward to working with you and working with the Chairman 

and working with this Committee. I know this is critically important, too, on the House side. Colin Peterson represents these area, 

the Chairman of the Ag Committee. 

The observation I have in working with staff on this is that perhaps there was not an understanding that Mexico is a net importer 

of sugar. So we set up a situation here where we have Mexican 

sugar farmers are higher cost producers. Nearly half the sugar industry in Mexico is owned and operated by the Mexican government. There is a deficit—Mexico is a deficit producer of sugar and 

corn sweetener and Mexico is a net importer of sugar. 

Somehow, I am not sure if all of this was calculated in that final 

decisions. So it has had that impact. 

Mr. CHAIRMAN. I appreciate, again, your courtesy. These are just 

a few of the concerns I am hearing from my sugar producers, concerned about unfair trade practices with respect to Mexican sugar, 

the problems resulting in the failure to enforce NAFTA. And I appreciate your pledge to work with us to address these concerns. 

Mr. KEENUM. Absolutely. I look forward to working with you and 

your staff specifically on this issue, Senator. 

Senator COLEMAN. Again, Mr. Chairman, I look forward to 

strongly supporting these nominations. 

Thank you. 

Chairman CHAMBLISS. Thank you. 

Senator Harkin. 

Senator HARKIN. Thank you, Mr. Chairman. I just had one question for Mr. Keenum. 

Mr. Keenum, we included a provision in the 2002 Farm Bill, Section 1614, that directs the Secretary of Agriculture to establish proVerDate 0ct 09 2002 13:28 Mar 14, 2007 Jkt 000000 PO 00000 Frm 00015 Fmt 6633 Sfmt 6633 C:\DOCS\33562.TXT SAG2 PsN: SAG2
12

cedures to track the benefits provided directly or indirectly to individuals and entities. We wrote that section simply because USDA 

and Congress ought to know where the taxpayers’ money is going 

and there was a lot of concern at that time. 

We are now four-and-a-half years from when that requirement 

was enacted. Unfortunately, the provision has still not been implemented. 

If confirmed as Under Secretary, by what date will you be able 

to bring the Department into lawful compliance with this requirement of the Farm Bill? 

Furthermore, could you give a commitment to this Committee 

that within 90 days of the date of your confirmation, the Department will comply with this requirement of the Farm Bill to assure 

that Farm Program payments are transparent and can be traced 

to the individuals who receive the payments? Again, that was in 

the Farm Bill, the last Farm Bill. 

Mr. KEENUM. Yes sir. 

I will make every effort to do as you have requested, Senator. I 

can pledge that. 

I do not know the status of where that report is within the Department. I know they have been working on this report and the 

law does require it and it is public information and it should be 

made available to the public as soon as it is available to be released. 

This will be a priority for me because, again, it is required under, 

law, and I will make sure that any agencies that I have supervision 

over will comply with the intent of Congress fully. This is one of 

those areas. 

So yes, Senator, I will pledge to you that, if confirmed, that I will 

make every effort to do as you have requested. 

Senator HARKIN. I appreciate that very much. Thank you. 

Mr. STROM. I see that again, you have got a long background in 

credit and banks, director of your local Production Credit Association, the First Farm Credit Services, AgriBank, and of the Farm 

Credit Counsel. Obviously great experience. However, it may raise 

questions about your ability to shift gears now and become an impartial regulator of the System. 

Again, what assurances can you give this Committee to demonstrate that you will provide the necessary independent oversight 

to assure the safety and soundness of the Farm Credit System? 

Mr. STROM. Senator, I have given this considerable amount of 

thought because I do realize that my background in the Farm 

Credit provides me a unique perspective on the System. But I do 

realize, as I mentioned in my opening statement, I profoundly understand the relationship that the Farm Credit Administration 

serves as the safety and soundness regulator. And I commit to you 

that I will work very hard to fulfill the role as a board member and 

to see that that administration does provide the oversight of both 

the Farm Credit System and Farmer Mac that is needed. And I 

pledge that if tough decisions are needed to be made, I am prepared to make those difficult decisions. 

Senator HARKIN. Thank you very much, Mr. Strom. 

Mr. Chairman, I do not have any further questions. Thank you 

and I hope we can get them through. 

13

Chairman CHAMBLISS. Thank you. Mr. Cochran. 

Mr. COCHRAN. Thank you, Mr. Chairman. 

I do not have any questions but I congratulate all three nominees 

and look forward, as a member of this Committee, to staying in 

touch with the work of your agencies and the Department of Agriculture and I will expect that we will probably have an opportunity 

to hear from you again at hearings and as we work our way 

through the writing of this next Farm Bill. 

I congratulate all of you. 

Thank you. 

Chairman CHAMBLISS. Thank you. 

Mr. Salazar. 

Mr. SALAZAR. Thank you very much, Chairman Chambliss. 

Let me say at the outset that I very much enjoyed working with 

you and with the staff on this Committee over the last 2 years. I 

appreciate your leadership and the work that we have been able 

to do together. And I look forward to working with all of this Committee, including Senator Harkin as the incoming chairman, to 

work on the issues that are important to all of us on a bipartisan 

basis. 

I echo Senator Harkin’s comments. I think when we sit around 

this table, I think that the Senators who come here come here because they really do care about rural America and agriculture. And 

I think that that transcends Democrat or Republican issues and 

how we move forward in the next several years is something that 

I am very much looking forward to. 

We sit on this Committee, I know, by choice and it is certainly 

my choice to be here and I look forward to working with all of you. 

To the nominees, to Mr. Strom, Ms. Sommers, and Dr. Keenum, 

I congratulate each of you and your families. I look forward to supporting you in this nomination process. And again, I echo the comments that have been said today, that I hope we are able to get 

you confirmed very, very quickly. 

I have a comment and question, two quick ones. 

First, Dr. Keenum, I am concerned about some of the perception 

that we have around the world on American agriculture. Yesterday 

I had a meeting, and I think Senator Harkin did as well, with the 

President of Costa Rica, Oscar Arias. One of the things that he 

talked about was how it was that American agriculture was being 

perceived in Latin America and now American agriculture was 

being seen as the reason why there had been a default and a 

breakdown on the world trade negotiations. 

And so my question to you, in the very important role that you 

will play, is what steps do you think we can take to try to improve 

the image internationally that American agriculture has today? 

Mr. KEENUM. We have a very robust agricultural industry. This 

year we are looking at agricultural trade exports that are going to 

exceed $68 billion, and projections for this coming we are going to 

be somewhere in the $70–plus billion range. 

So obviously, we want to have good relations with our trading 

partners. We depend on their markets. We count on up to nearly 

a third of what we produced being exported to support producer’s 

incomes and market prices. Like I said, we have to have good relaVerDate 0ct 09 2002 13:28 Mar 14, 2007 Jkt 000000 PO 00000 Frm 00017 Fmt 6633 Sfmt 6633 C:\DOCS\33562.TXT SAG2 PsN: SAG2
14

tionships with our trading partners. And it is a two-way street, as 

well. 

So if I am confirmed, I will do everything in my power to always 

promote and protect the best interest of American agriculture, but 

do it in a way that is fair and working with our trading partners. 

Mr. SALAZAR. I look forward to working with you on those issues 

because I know that those issues are going to be significant for us 

over the next several years. 

To Mr. Strom, my question to you has to do with the Farm Credit System and credit to be made available in the future with respect to renewable energy initiatives. I think, based on the conversations that this Committee has had over the last year on the 

new Farm Bill, I think that one of the titles that we would hope 

to be as robust as possible, and many feel that by some of the publications they will be what we do with respect to renewable energy 

opportunities across America. 

I would like to know what your thoughts are in terms of enhancing and capitalizing on opportunities for renewable energy. 

Mr. STROM. Senator, coming from my home State of Illinois, 

where the ethanol industry now is in a growth phase with many 

plants under construction, really with other sources of renewable 

fuels available now and in the future, I am a strong supporter of 

the area of energy and renewable fuels. 

As far as the Farm Credit System, I can commit to you that will 

I be supportive of looking into that area further. I know that there 

is a considerable amount of work already going on within the Farm 

Credit System in some of the financing efforts to help finance construction of renewable fuels, processing facilities, and so forth. 

The future is bright, but I also think we have to watch that segment of that industry so that down the road we do not overbuild 

in that area also. 

So I think it is a good and bright prospect for the future. Some 

warrant caution, probably down the road. But as a regulator of the 

Farm Credit System, I believe that the Farm Credit System needs 

to be involved in a very positive and proactive way in the expansion of that arena. 

Mr. SALAZAR. THANK YOU. 

And thank you, Mr. Chairman. 

Chairman CHAMBLISS. Thank you. 

Let me just say that I have no specific questions, primarily because Mark, I think I have asked you every question I could ask 

you over 15 years. I hate, since I have got you under oath, to miss 

this opportunity. But knowing your background in agriculture, I 

know what a great job you are going to do. And again, I just want 

to say to you that I thank you for your willingness to serve. 

Jill, you and Mike have been good friends of mine since I have 

been here, in spite of Mark working on the other side. We are going 

to excuse that. I really look forward to you going to CFTC. 

I have had a close connection with that organization because my 

son used to work over there and I know how critically important 

it is to farmers and ranchers to move forward and really do the 

oversight job they need to do. And under the current leadership 

there, you are going to be a huge asset to them there. 

15

Mr. Strom, again I have reviewed your record and I know of your 

long background and your history in farm credit financing, and 

there is no more critical asset for farmers and ranchers than the 

ability to borrow money. I know you are going to be, again, a huge 

asset to this organization, and we thank all three of you for your 

willingness to serve. 

I want to add, in addition to the letters of support previously 

mentioned, we also have, in support of Mr. Strom, a letter from the 

National Council of Farm Cooperatives, a letter from the Farm 

Credit Council, that will be inserted into the record. 

[The following information can be found on pages 40 and 42 in 

the appendix.] 

So those will be inserted into the record. 

And again, any questions to be submitted for the record, I mention to staff again, must be done by four o’clock this afternoon. We 

expect to ask a discharge by unanimous consent, with the cooperation again of Senator Harkin, sometime later today and move these 

nominees within the next couple of days on the floor of the Senate. 

Unless there is any further business, we stand adjourned. 

Thank you. 

[Whereupon, at 10:15 a.m., the hearing was adjourned.] 

(17)

A P P E N D I X

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