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30–431 PDF 2006

S. HRG. 109–682

TO REVIEW NOMINATIONS FOR USDA AND

COMMODITIES FUTURES TRADING COMMISSION

HEARING

BEFORE THE

COMMITTEE ON AGRICULTURE, 

NUTRITION, AND FORESTRY

UNITED STATES SENATE

ONE HUNDRED NINTH CONGRESS

SECOND SESSION

JULY 26, 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):

To Review Nominations for USDA and Commodities Futures Trading Commission .................................................................................................................. 1

Wednesday, July 26, 2006

STATEMENTS PRESENTED BY SENATORS 

Chambliss, Hon. Saxby, Chairman, Committee on Agriculture, Nutrition, and 

Forestry ................................................................................................................. 1

Allen, Hon. George, U.S. Senator from Virginia ................................................... 2

Harkin, Hon. Tom, U.S. Senator from Iowa .......................................................... 1

Thune, Hon. John R., U.S. Senator from South Dakota ...................................... 8

Panel I 

Dunn, Michael V., of Iowa, Nominee to be Commissioner of the Commodity 

Futures Trading Commission for a Term Expiring June 19, 2011 (Reappointment) ........................................................................................................ 11

Johner, Nancy Montanez, of Nebraska, Nominee to be Under Secretary of 

Agriculture for Food, Nutrition, and Consumer Services for the Department 

of Agriculture and to be a member of the board of Directors of the Commodity Credit Corporation .................................................................................. 5

Knight, Bruce I., of South Dakota, Nominee to be Under Secretary of Agriculture for Marketing and Regulatory Programs for the Department of 

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

Credit Corporation ............................................................................................... 10

McKay, Margo M., of Virginia, Nominee to be an Assistant Secretary of 

Agriculture for Civil Rights for the Department of Agriculture ...................... 6

APPENDIX 

PREPARED STATEMENTS: 

Baucus, Hon. Max ............................................................................................ 22

Grassley, Hon. Charles E. ................................................................................ 24

Harkin, Hon. Tom ............................................................................................ 26

Nelson, Hon. E. Benjamin ............................................................................... 29

Dunn, Michael V. .............................................................................................. 30

Johner, Nancy Montanez ................................................................................. 32

Knight, Bruce I. ................................................................................................ 35

McKay, Margo M. ............................................................................................. 38

DOCUMENT(S) SUBMITTED FOR THE RECORD: 

Renewable Fuels Association ........................................................................... 44

National Milk Producers Federation, letter of support for Bruce I. Knight 45

Various agricultural organizations, letter of support for Bruce I. Knight ... 46

QUESTION AND ANSWER: 

Dunn, Michael V.: 

Written response to questions from Hon. Norm Coleman ............................ 47

Johner, Nancy Montanez: 

Written response to questions from Hon. Michael D. Crapo ........................ 50

Written response to questions from Hon. Tom Harkin ................................. 51

Page

IV

Johner, Nancy Montanez—Continued

Written response to questions from Hon. Craig Thomas .............................. 59

Knight, Bruce I.: 

Written response to questions from Hon. Max Baucus ................................. 60

Written response to questions from Hon. Charles Grassley ......................... 63

Written response to questions from Hon. Tom Harkin ................................. 66

McKay, Margo M.: 

Written response to questions from Hon. Tom Harkin ................................. 73

ADDITIONAL MATERIAL(S) SUBMITTED FOR THE RECORD

Committee questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Michael 

V. Dunn .......................................................................................................... 76

Committee questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Nancy 

Montanez Johner .......................................................................................... 92

Committee questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Bruce 

I. Knight ........................................................................................................ 120

Committee questionnaire and Office of Government Ethics Executive 

Branch Personnel Public Financial Disclosure Report filed by Margo 

M. McKay ...................................................................................................... 145

(1)

TO REVIEW NOMINATIONS FOR USDA AND

COMMODITIES FUTURES TRADING COMMISSION 

Wednesday, July 26, 2006

U.S. SENATE, 

COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY, 

Washington, DC 

The committee met, pursuant to notice, at 9:32 a.m. in Room SR–

328A, Russell Senate Office Building, Hon. Saxby Chambliss, chairman of the committee, presiding. 

Present: Senators Chambliss, Talent, Thomas, Grassley, Harkin, 

and Baucus. 

OPENING STATEMENT OF SENATOR CHAMBLISS, CHAIRMAN, 

COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY 

The CHAIRMAN. Good morning. This hearing will come to order. 

We’re here today to conduct a hearing on three nominations to 

important posts at the U.S. Department of Agriculture, and an 

equally important nomination to the Commodity Futures Trading 

Commission. 

The nominees are: Nancy Montanez Johner—to be Under Secretary for Food, Nutrition, and Consumer Services; Bruce Knight, 

to be Under Secretary for Marketing and Regulatory Programs; 

Margo M. McKay, to be Assistant Secretary for Civil Rights; and 

Michael V. Dunn, to be a commissioner at the Commodity Futures 

Trading Commission. Ms. Johner and Mr. Knight have also been 

nominated to serve on the board of directors of the Commodity 

Credit Corporation. 

I’ve had the opportunity to meet with all four nominees and review their backgrounds. We all appreciate their willingness to come 

forward and engage in public service. I welcome all four nominees 

here this morning. And I thank you for appearing before the committee today. 

For the information of Senators and staff, I ask that any questions of the nominees for the record be submitted by 5:00 p.m. tomorrow, July 27, in order to expedite the confirmation process. 

I now will turn to Senator Harkin for any opening comments he 

might wish to make. 

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

IOWA, RANKING MEMBER, COMMITTEE ON AGRICULTURE, 

NUTRITION, AND FORESTRY 

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

2

And I’ll just ask that my statement be made a part of the record. 

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

appendix on page 26.] 

Senator HARKIN. I welcome all of our individuals here. 

Some I know better than others, but in reviewing their backgrounds, and some who have worked in these various departments 

before, whom I know well, they are all extremely well-qualified 

people, and I hope we can move them expeditiously. 

I would defer any other comments and stuff to when you open 

it up for these individuals. 

The CHAIRMAN. Sure. 

Senator HARKIN. Thank you, Mr. Chairman. 

The CHAIRMAN. Okay. 

At this time, before we proceed to the nominees, we have our 

good friend, our distinguished colleague, Senator George Allen, 

here to make an introduction. 

Senator Allen, welcome to the once-powerful Ag Committee. 

We’re pleased to see you here. And please take some Georgia peanuts when you leave. [Laughter.] 

Senator ALLEN. Okay. 

The CHAIRMAN. You’ll want to give up Virginia peanuts, George. 

STATEMENT OF HON. GEORGE ALLEN, A U.S. SENATOR FROM 

VIRGINIA 

Senator ALLEN. Thank you, Mr. Chairman. 

Senator Chambliss, I appreciate the Georgia peanuts. 

They’re very good. You just have to eat two of ’em to make up 

for as many volume as there is in a Virginia peanut. [Laughter.] 

Senator ALLEN. But they’re very good and tasty. Senator Harkin, 

it’s good to see you, as well. 

It’s my pleasure to introduce to all of you on the committee here 

Margo McKay, of Falls Church, Virginia, the President’s nominee 

to be Assistant Secretary of Agriculture for Civil Rights in the Department of Agriculture. 

Mr. Chairman, the mission of the Assistant Secretary of Agriculture for Civil Rights is to facilitate a fair and equitable treatment in the delivery and decisions related to the programs and 

many services of the USDA. To that end, if you look at the background and experience, the motivation, the qualifications, and the 

background of Margo McKay, she is highly qualified fulfill that 

mission. 

It is Ms. McKay’s broad range of professional experience that 

makes her very well qualified to hold this position. You can look 

through her resume. Let me just take a few moments to highlight 

her positions. From being a trial attorney with the Office of Civil 

Rights division of the U.S. Department of Justice, to an associate 

general counsel at Fannie Mae, she has a tremendous breadth of 

knowledge. She has served as the director of the Office of Diversity 

at Fannie Mae, where she brings to this position an awareness of 

how important the job of Assistant Secretary in Agriculture for 

Civil Rights is in ensuring that everyone who works for, or is 

partnered with, the USDA is treated fairly and with dignity and 

respect. 

3

She will be introducing her family members later, so I’ll not introduce them, but I know she’s very proud. And I know her mother’s very proud to have her here, and so are her children. 

But she—when she was a young attorney with the Department 

of Justice, she did sharpen her litigation skills by working on all 

aspects of civil rights and constitutional law, and she received numerous awards and commendation. 

Also, Mr. Chairman, Senator Harkin, she created and implemented an alternative dispute resolution program, and her initiative in working with minority- and women-owned business speak 

to her leadership ability. She’s been the recipient of the prestigious 

Reardon Award for Corporate Excellence in 1994. She has received 

the Bronze and Silver Award for Exceptional Meritorious Service, 

as well as many other awards. 

If confirmed, Mr. Chairman, Senator Harkin, members of the 

committee, Ms. McKay will draw on her extensive legal comprehension and hands-on knowhow to carry out the mission. 

She has—when you hear—read her—or see her statement, and 

hear it, she has the right goals, to expand outreach and build trust 

in the USDA programs, which his very important. We’ve seen the 

need for that in Virginia. 

You may have, in your respective States. But we know we’ve 

seen the need for that building of trust with the USDA programs, 

and I think Ms. McKay is truly a perfect individual, with her experience and her motivation, to lead this mission. And I hope you’ll 

move her on to the floor for confirmation as quickly as possible. 

And I thank you for allowing me to come and introduce Ms. 

McKay to the committee. 

The CHAIRMAN. Senator, thank you for being here. 

Ms. McKay, George happens to be one of my close personal 

friends, and him coming here today to speak in your behalf says 

an awful lot for you. 

And I’m just kidding, George, my neighbor sends me a big can 

of Virginia peanuts every year at Christmas, and they are— 

[Laughter.] 

The CHAIRMAN. —outstanding peanuts. 

Senator ALLEN. As are the Georgia ones, Mr. Chairman. Thank 

you. 

The CHAIRMAN. Would all four of you please stand and raise your 

right hand? 

Do you swear that the testimony you’re about to give will provide 

the truth, the whole truth, and nothing but the truth, so help you, 

God? 

Ms. JOHNER. I do. 

Mr. KNIGHT. I do. 

Ms. MCKAY. I do. 

Mr. DUNN. I do. 

The CHAIRMAN. Do each of you agree that you will appear before 

any duly constituted committee of Congress if asked to appear? 

Ms. JOHNER. I will. 

Mr. KNIGHT. I will. 

Ms. MCKAY. I will. 

Mr. DUNN. I will. 

The CHAIRMAN. Thank you very much, and you may be seated. 

4

We also have Senator Thune, who will be here shortly, I’m sure, 

to speak on behalf of Mr. Knight. But, in the meantime, we’re 

going to go ahead and move forward. And, let me just say that 

we’re going to have a vote, I understand, at 10:00 o’clock. We also 

have a joint session beginning at 11:00. So, I don’t know how we’re 

going to be able to work around this vote. If we have enough Senators here, we may try to run back and keep this going so that we 

can hopefully finish before the 11:00 o’clock joint session. But we’ll 

see how that goes, in any event—

Senator HARKIN. Mr. Chairman? 

The CHAIRMAN. Sure. 

Senator HARKIN. Mr. Chairman, just in case—I know I had 

asked you earlier, but just in case we get all messed up with votes 

and stuff like this, I—I was going to wait until we got to Mike 

Dunn’s—and we’re going to work down the line, I know, but, just 

in case something happens and I’m not here, I just—for the record, 

just wanted to say how proud I am of my fellow Iowan, Mike Dunn. 

We go back— we were together in this committee in 1986–87, during the farm credit crisis, when we passed the farm credit bill that 

really helped keep our farmers afloat all over this country. 

And Mike was very much involved in the committee here, in this 

committee, in this room, at that time. He went on to head the 

Washington Office of the National Farmers Union, did that for a 

number of years, served as Under Secretary for Marketing and 

Regulatory Programs, directing the Office of Policy and Analysis at 

the Farm Credit Administration. And he served ably in all those 

positions. 

I know that Mike was selected by his colleagues to chair the Ag 

Advisory Committee at the CFTC, a reflection of his strong background and continuing interest in agriculture. He’s also the chair 

of the Commission’s Task Force on Public Outreach and Consumer 

Education regarding retail transactions and foreign currency. And 

over the past several months, this task force has worked to alert 

and educate the public about the risks and potential for fraud in 

the sales of foreign currencies in—to retail investors. 

So, that’s just my way of saying I’ve known Mike Dunn almost 

all my adult life. His wife, Brooke, and four sons, I know, couldn’t 

be here with him today, but he is what I consider to be just a great 

example of a public servant, always doing the jobs tasked to him, 

doing it diligently, doing it well, without any favoritism, partisanship. When he worked on this committee, he worked with both 

sides at that time, and has done so throughout his adult life. And 

I can’t think of a better person for the committee—for the Futures—the Commodity Futures Trading Commission than Mike 

Dunn, and I just wanted to say that for the record. 

Mike, thank you. 

The CHAIRMAN. Well, again, Senator Harkin and I are also very 

good friends, and I have great respect for him. Mike, while I know 

you, and you and I have had a chance to visit, I will have to say 

that Senator Harkin speaking in your behalf says an awful lot for 

you. You’ve done a good job over at the CFTC, and we look forward 

to speeding your nomination forward. We’ll now start with you, Ms. 

Johner, and we’ll go down the line. Any opening comments you 

5

wish to make, we’d ask that you keep them as brief as possible. We 

will submit your entire statement for the record. 

STATEMENT OF NANCY MONTANEZ JOHNER, OF NEBRASKA, 

NOMINEE TO BE UNDER SECRETARY OF AGRICULTURE FOR 

FOOD, NUTRITION, AND CONSUMER SERVICES FOR THE DEPARTMENT OF AGRICULTURE AND TO BE A MEMBER OF 

THE BOARD OF DIRECTORS OF THE COMMODITY CREDIT 

CORPORATION 

Ms. JOHNER. Thank you, Chairman. 

Mr. Chairman and members of the committee, I’m honored and 

grateful to appear before you as the President’s nominee for the position of Under Secretary of Food, Nutrition, and Consumer Services. 

I would like to thank President Bush and Secretary Johanns for 

their trust and for this honor, as well as all those who have supported me. 

I would especially like to thank my husband, Randy, for his unconditional love and support. And I also want to thank my children, Melissa and Jesse Montanez, for their encouragement and belief in me. 

I was born and raised in a farming community in Scottsbluff, Nebraska. My parents, Joseph and Nancy Saldivar, were immigrants 

to the United States. My father worked long hours in the fields, 

and, as a young girl, I worked beside him, along with the rest of 

my family. In addition to teaching me by example the importance 

of good work ethics, my parents also showed me the value of family, and I will always be grateful to them for that. 

After high school, I worked part-time as a unit secretary at the 

local hospital. And as a secretary, I began to experience serving 

families through the Intensive Care Unit. I was very fond of this 

aspect of my work, and decided to pursue an education in social 

work. I earned a college degree while working and raising two children. I was a single parent faced with many challenges. I’m not 

embarrassed by that fact. It is part of who I am and why I believe 

I’m qualified for this position. I know what it’s like to be on the 

verge of not making ends meet. 

I believe it is important to ensure that those who are eligible for 

assistance have access to benefits. After earning my degree, I 

served as a social worker. Experiencing the heartbreaking need 

firsthand did not deter or discourage me. It inspired me to work 

even harder, knowing that as a social worker I had the ability to 

impact the need and to ease the very struggle that I faced as a single parent. I have no illusion about ending all hunger, but that 

won’t stop me from trying to impact the problem. 

When I was promoted to a service area administrator, I viewed 

the added responsibility as raising the bar for me as a public servant. It meant I could no longer simply tell the boss about my caseload concerns; I now had the ability and, therefore, the responsibility to address the challenges that prevent us from improving 

human condition. 

Two years ago, I was honored to be appointed as the director of 

Nebraska Health and Human Services. In this position, which I 

currently serve, I’m responsible for a staff of 5,000 and a budget 

6

of over $960 million. We touch thousands of lives, and it is a tremendous opportunity to help people. I’m grateful to have this 

chance to serve and make a difference. 

I have a conviction that, in whatever capacity one serves the 

public, it is the principles that bring quality to the service. The 

principles of compassion, integrity, respect, openness, and honesty 

have kept me focused on service and the value of families. These 

are the principles I brought with me as a social worker and as a 

director of Nebraska Health and Human Services. If confirmed to 

serve as Under Secretary for Food, Nutrition, and Consumer Services, I will hold to these same principles. I also pledge to listen to 

our customers, our service providers, State and local partners, advocacy groups, and certainly you here in Congress to determine 

better ways to serve our clients. 

I’m excited by the possible opportunity to work with the experienced and highly talented staff at the Food and Nutrition Service 

in the Center for Nutrition Policy and Promotion. They are dedicated to helping others, and it would be an honor to join them. 

In closing, I want to say I am eager to continue my work as a 

public servant devoted to providing children and low-income families with access to food, healthful diet, and nutrition education. 

Furthermore, if confirmed, I look forward to working together to 

fulfill our duty and service to this great Nation and its citizens. 

Thank you for your time, and I would be happy to answer any 

questions you may have. 

[The prepared statement of Ms. Johner can be found in the appendix on page 30.] 

The CHAIRMAN. Thank you. Ms. McKay? 

STATEMENT OF MARGO M. McKAY, OF VIRGINIA, NOMINEE TO 

BE AN ASSISTANT SECRETARY OF AGRICULTURE FOR CIVIL 

RIGHTS FOR THE DEPARTMENT OF AGRICULTURE 

Ms. MCKAY. Mr. Chairman, Ranking Member Harkin, and other 

distinguished members of the committee, thank you for—

The CHAIRMAN. Mike. 

Ms. MCKAY. Mr. Chairman, Ranking Member Harkin, and other 

distinguished members of this committee, thank you for the opportunity to appear before you today. And I would like to thank Senator George Allen for his kind introduction. I greatly value his 

trust and his support. 

I am honored to have been nominated by the President to be Assistant Secretary for Civil Rights at the Department of Agriculture, 

and I am humbled by the confidence placed in me by President 

Bush, Secretary Johanns, and Deputy Secretary Conner. 

I would like to introduce my family—my mother, Gary McKay, 

is a retired nurse and a native of Pittsburgh, Pennsylvania; my 

youngest—

The CHAIRMAN. Ask her to stand up so we know who your mom 

is. 

Ms. MCKAY. My mom is right here. 

The CHAIRMAN. Great. 

Ms. MCKAY. My daughter, next to her, Kaila Allen, is a sophomore at Hampton University in Virginia, and, I might add, an A 

student. [Laughter.] 

7

Ms. MCKAY. Next to her, my son, Rick Allen—he lives and works 

in Virginia, and he’s an avid soccer player. He’s in two soccer 

leagues, director of the league, captain of the team. 

The CHAIRMAN. All right. 

Ms. MCKAY. My oldest daughter, Marja, here, is an actress and 

a former Miss Teen USA, representing the District of Columbia. 

Next to here is her husband, Jean- George Vongerichten, who is a 

world-renowned chef. 

The CHAIRMAN. Nice looking family there, Ms. McKay. 

Ms. MCKAY. Thank you. I am so proud of them. Thank you very 

much. Senators I became aware of the civil rights struggle at a 

very young age, growing up in Pittsburgh, Pennsylvania, with my 

grandfather, John Gary Jones. He was a—active in the State and 

local NAACP and other civic organizations. As an African–American man of his era, even though he was college educated, had 

served honorably in World War I, and was very capable, he was 

only able to achieve a certain level in the workplace, a supervisor 

in the Post Office. 

But he was my idol and my role model. I was impressed by his 

intelligence, his energy, his worldly perspective, and his activism. 

He instilled in me the importance of an education. He made me believe that I could do and become anything that I wanted. And he 

taught me the importance of helping others. 

As a child, I spent my summers with my other grandfather, John 

Mackay, in—at his farm in Catonsville, Maryland. I remember 

when my grandparents sold their farm and bought a house in Baltimore, Maryland. It did not occur to me at that time that selling 

the farm might not have been their first choice. 

Grandfather Jones died when I was 16, and there was no money 

for college, but I was able to attend Fisk University in Nashville, 

Tennessee, on a scholarship from the United Negro College Fund. 

I was recruited on campus by the Department of Housing and 

Urban Development. And, while there, I met another mentor, another civil rights leader, the late Honorable Samuel C. Jackson, of 

Topeka, Kansas. He was Assistant Secretary of HUD and a former 

EEOC commissioner. Sam Jackson encouraged me to go to law 

school. After attending Georgetown Law School, I joined the civil 

rights division in the Department of Justice, where I prosecuted 

cases under all the civil rights statutes. 

Later, I served as an administrative judge, hearing employment 

discrimination claims. I continued on this career path to the current time in both the public and the private sector, specializing in 

employment law and diversity. I believe that my background and 

experiences will serve me well if I am confirmed for this position. 

I am aware that many improvements have been made at USDA, 

and I have great respect for former Assistant Secretary Vernon 

Parker and all that he has accomplished under former Secretary 

Veneman and Secretary Johanns. 

However, that said, I believe that there’s always more to do. 

If confirmed, my goals will be, first, to listen and to learn from 

all stakeholders. I want to know what specific measures USDA has 

taken to correct past problems, whether such measures have been 

successful, and what more needs to be done. I want to identify and 

remove unnecessary barriers to participation in USDA programs 

8

and outreach efforts, and continue to build trust. I want to make 

sure that the civil rights of USDA employees are protected. I want 

to build strong working relationships both inside and outside the 

Department, and to strengthen partnerships with organizations 

representing minority and female farmers and ranchers. In addition, I want to ensure that all programs run out of the Office of 

the Assistant Secretary for Civil Rights are effective and efficient. 

And, finally, if confirmed, I pledge to execute the Secretary’s civil 

rights policy, which promises a workplace that respects differences 

and embraces diversity, and programs and services that are accessible and delivered to all of our customers fairly and with dignity. 

There can be no exceptions, no excuses. 

Mr. Chairman, thank you for—I’d like to thank the committee for 

considering my nomination. I’ll be happy to take any questions you 

may have of me. 

[The prepared statement of Ms. McKay can be found in the appendix on page 38.] 

The CHAIRMAN. Thank you, Ms. McKay. 

Now, as we move to Mr. Knight, we’re joined by our colleague 

from South Dakota, Senator John Thune. 

John, welcome. And I understand you have some comments to 

make about Mr. Knight. 

STATEMENT OF HON. JOHN R. THUNE, A U.S. SENATOR FROM 

SOUTH DAKOTA 

Senator THUNE. Thank you, Mr. Chairman and members of the 

committee. 

The President’s nominee to be Under Secretary for Marketing 

and Regulatory Programs at the Department of Agriculture is 

someone who has deep roots in the soils of South Dakota. Bruce 

Knight is a third-generation farmer and rancher, someone who 

runs a diversified farm and ranch, or grain operation, in South Dakota, and who I know makes regular trips back to South Dakota 

to check on that operation, more frequent trips during pheasant 

season, I might add, as well— [Laughter.] 

Senator THUNE. —but is very closely connected to the land in my 

State of South Dakota. But, more importantly, in terms of his—not 

that that isn’t a key qualification for this job, but he’s someone 

who, in the past 20 years—and I’ve known Bruce now for over 20 

years—has worked diligently honing his skills for this position, 

someone who’s worked on Capitol Hill. I first met Bruce over 20 

years ago, and we were both wet-behind-the-ears staffers. 

His first opportunity was to work on the 1985 farm bill, and he’s 

worked on a number of farm bills since then—the 1996 farm bill, 

as a member of the staff of former Senator Bob Dole—and has had 

key policymaking positions, positions where he was very involved 

in working the congressional aspect of policies that affect agriculture for not only the wheat growers, but also the National Corn 

Growers Association, and, of course, I think, as everyone knows, for 

the past 4 years now, has headed up the National Resource Conservation Service at the Department of Agriculture, where he has 

administered a multibillion-dollar budget, overseen over 11,000 employees, and been principally responsible for developing conservation programs for this country. 

9

He is very committed. He is a conservationist, a lifelong conservationist, someone who is very committed to expanding and 

growing and being innovative in initiating new programs and policies that will promote conservation on our lands, someone who is 

supremely qualified for the job for which he has been nominated, 

not only, again, because of his resume and his very dedicated and 

accomplished public service, but also because he understands the 

land. He’s someone who grew up on it. He’s someone who stays, as 

I said, very close to it. And add to all those things, he is a highclass, quality individual who I’ve had the privilege and the opportunity to know for over 20 years. 

And so, it’s a great privilege and honor for me to be able to 

hear—to be here today to introduce him to this committee and to 

urge this committee to quickly approve his nomination and get him 

on the job for which he’s been nominated. 

So, Mr. Chairman, with that, I thank you for the chance to be 

here and to bring before you to your attention this very qualified 

individual for this job. 

Thank you. 

The CHAIRMAN. Thank you. 

Senator Harkin? 

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

I’d just like to join with Senator Thune in paying my respects 

and best wishes to Bruce Knight. I’ve known Bruce also for about 

20 years. He’s worked for three individuals for whom I have had, 

and continue to have, a very high regard, Jim Abnor—great 

friend—Fred Grandy, from Iowa, and, of course, Bob Dole. So, I’ve 

watched Bruce progress through all these years, and I just want 

to say again, for the record, that he has done an admirable job in 

running the NRCS for the last 4 years under pretty trying circumstances —not of his making, perhaps of ours up here once in 

a while, because of budget considerations and things like this. But 

he’s done a great job in running the NRCS. 

I had one question I was going to ask Bruce, but I don’t know 

if I’m going to be here to ask it. I’m going to say, Are we going to 

get someone as good as you to run it after you leave? I don’t 

know—see, I’m—I have mixed emotions here. [Laughter.] 

Senator HARKIN. Again, I’d like to see him take over Marketing 

and Regulatory Programs. I don’t want to have him leave NRCS. 

So, I’m kind of mixed in my emotions, whether I should support 

him or not. I don’t know. [Laughter.] 

Senator HARKIN. But a great guy, and has done just an outstanding job in everything that he’s done in the past, and I’m 

proud to support him also. So, I just wanted to say that for the 

record. 

Thank you. 

The CHAIRMAN. Bruce, you’ve got a lot to live up to now. I look 

forward to you getting in this job, and you and I doing some field 

work in South Dakota in the middle of October. [Laughter.] 

The CHAIRMAN. I would also say that we have a couple of letters 

in support of Bruce, one from the National Milk Producers Federation, and another letter from 17 various agricultural organizations—national organizations. Those letters will be included in the 

record. 

10

[The following information can be found in the appendix on page 

46.] 

The CHAIRMAN. And we also, I should have said earlier, have—

Senator Ben Nelson intended to be here to introduce Ms. Johner, 

but, unfortunately, was unable to. But he has submitted a statement for the record in support of her nomination. 

[The following information can be found in the appendix on page 

29.] 

The CHAIRMAN. Bruce, we look forward to your comments. 

STATEMENT OF BRUCE I. KNIGHT, OF SOUTH DAKOTA, NOMINEE TO BE UNDER SECRETARY OF AGRICULTURE FOR MARKETING AND REGULATORY PROGRAMS FOR THE DEPARTMENT OF AGRICULTURE AND TO BE A MEMBER OF THE 

BOARD OF DIRECTORS OF THE COMMODITY CREDIT CORPORATION 

Mr. KNIGHT. Mr. Chairman and distinguished members of the 

committee, I’m honored and humbled to appear before you today as 

nominee of Under Secretary for Marketing and Regulatory Programs of the United States Department of Agriculture. 

I’ve had the privilege of testifying before this committee several 

times, and nothing is more difficult for me than to talk actually 

about my own credentials, as opposed to the issues and policies of 

the day. I appreciate this very much, I wish to express my thanks 

to President Bush for nominating me, Senator Thune for introducing me and supporting my nomination. I owe a debt of gratitude 

to many mentors—former Senator James Abnor, who was my first 

boss in Washington, D.C., and whose wisdom and integrity I still 

treasure; former Representative Fred Grandy, former Senator Bob 

Dole, who taught me not to fear tough policy issues. 

Joining me today are my wife, Julie, and my children, Katherine 

and Denton, sitting behind me. 

The CHAIRMAN. Let them stand up, please. 

Mr. KNIGHT. Julie, Katherine, Denton. 

The CHAIRMAN. All right. Another very handsome family. 

Mr. KNIGHT. Thank you. Without Julie’s faithful and ongoing 

support and encouragement, I would not be here today. She and 

the children serve to ground me and, quite frankly, to keep me focused on those things that are truly most important in life. 

I grew up on a small farm near Gann Valley, South Dakota, coming of age in the midst of the turmoil of the 1980s farm crisis. At 

South Dakota State University, I studied animal and range science 

and economics. As has been said before, I’m a third-generation 

rancher and farmer. 

Today, I own and operate a diversified grain and cattle operation 

in Buffalo County, South Dakota. 

In 1985, I came to Washington to serve as legislative assistant 

to Senator James Abnor, focusing primarily on agricultural and 

conservation issues. I worked in a similar capacity with Representative Grandy and Senator Dole. For more than 10 years, I had held 

agricultural policy positions with the National Association of Wheat 

Growers and the National Corn Growers Association. 

Four years ago, President Bush appointed me chief of the Natural Resources Conservation Service at USDA, the lead agency for 

11

conservation on working agricultural land, with a budget of over $3 

billion and a staff of now nearly 12,000 employees. 

I believe that there is a strong link between conservation and the 

safeguarding of the environment, and the health of the animals, 

the plants, and the humans who share that land. All of these concerns are very interrelated and interdependent. 

As a farmer and rancher, I also understand the vital importance 

of fair, open, and orderly markets, and the value of encouraging 

trade, promoting fairness, and reducing barriers. 

Mr. Chairman, I do not appear before you today professing to be 

an expert in animal or plant health issues. 

What I would bring, however, to the table, if confirmed in the 

Marketing and Regulatory Programs mission area, is an extensive 

management experience from my work at two agricultural trade associations and, more directly, as administrator of a major USDA 

agency, in NRCS. 

As an executive, I have learned the value of gathering enough information to make a good decision quickly enough to make a difference. As a farmer, I bring real-world experience on the impact 

of rules and regulations on the marketplace, and, more importantly, on the farmer’s bottom line. Also, as a farmer I understand 

full well the importance of prevention and planning as the first line 

of defense for avoiding and controlling diseases and pests. 

I realize that the agencies I would oversee, if confirmed as Under 

Secretary, deal with some of the most challenging and important 

issues confronting American agriculture today. Nevertheless, I believe that I am up to the challenge and would welcome the opportunity to serve. 

Mr. Chairman, if confirmed, I pledge to work with the members 

of the committee and their staff to help protect our Nation’s flocks, 

fields, and forests against pests and diseases and to promote U.S. 

agricultural products here and abroad. Thank you. 

[The prepared statement of Mr. Knight can be found in the appendix on page 35.] 

The CHAIRMAN. Thank you. Mr. Dunn? 

STATEMENT OF MICHAEL V. DUNN, OF IOWA, NOMINEE TO BE 

COMMISSIONER OF THE COMMODITY FUTURES TRADING 

COMMISSION FOR A TERM EXPIRING JUNE 19, 2011 (REAPPOINTMENT) 

Mr. DUNN. Thank you very much, Mr. Chairman, Senator Harkin—thank you for the kind words—and members of the committee. I’d like to thank you for having this hearing today. Mr. 

Chairman, I know you’ve got an extremely busy hearing schedule, 

and working this nomination hearing in is a tribute to the dedication and leadership of the committee, members, and staff. And, 

speaking of staff, Mr. Chairman, I’d like to recognize my staff from 

the CFTC: Nicole McNair, who makes things operate smoothly in 

my office; Jason Gizzarelli, who is legal counsel. He may look a little worn out and frazzled. That’s not from working in the office, I 

assure you. He and his wife, Becca, have just brought home, recently, their firstborn son, Noah, and he is learning firsthand the 

joys and responsibility of fatherhood. And another person that 

probably needs no introduction to this committee, my chief of staff, 

12

Eric Juzenas. Eric is, I have found, an extremely capable and talented person. I apologize to the committee and Senator Harkin 

from— stealing him from your staff, but he has been of great counsel to me at CFTC. Let me recognize one other person that should 

be no stranger here, and that’s Doug Leslie, who is our liaison to 

the committee, who has also worked for the committee at various 

periods. 

Mr. Chairman, I’m honored to be considered for a full 5-year 

term as commissioner for the Commodity Futures Trading Commission. I’d like thank President Bush for nominating me to this position and for Ranking Democratic Member Harkin and Minority 

Leader Reid for recommending me for that nomination. I’ve had 

the privilege to serve the last year and a half at the CFTC, and, 

I must say, Mr. Chairman, it’s a tribute to this committee and Congress how well the Commodity Futures Modernization Act is working. There has been an increase of 326 percent in the volume in 

the futures markets since passage of that legislation. 

The CFMA as aided by—aided by globalization and electronic 

markets, has facilitated an explosion of innovation and competition 

in the delivery of new risk- management tools. 

In furtherance of the public’s interest in a fair, transparent, and 

efficient marketplace, Congress has entrusted the CFTC with oversight of the commodity trading industry. In my opinion, my fellow 

commissioners in CFTC staff has done an outstanding job in discharging this trust. 

Recently, under the tutelage of Chairman Rubin Jeffries, we 

have stepped up the number of public hearings and comments that 

we have asked in the Federal Register. 

Three of those ongoing comments on self-regulatory organizations—governance, foreign boards of trades, and commitment of 

traders that I’ll talk a little bit more about —are ongoing. We also 

have standing advisory committees. 

One, the Agricultural Advisory Committee, the—Chairman 

Jeffries and my fellow commissioners have selected me to chair. 

This committee’s membership includes representatives of national 

farm organizations, major commodity groups, agribusiness and agricultural bankers, and the first time ever, to reflect their increased 

presence, will be members of managed money and swaps and derivative industries. This advisory group will hold its first meeting on 

August the 1st. It will be the 31st member of the advisory committee, the first that I will chair. We will be taking up two subject 

matters. One will be looking at the Commitment of Trader reports. 

We’re seeking public comments on the need for changes, if any, to 

the reports, their continued usefulness in today’s market. And, secondly, we’ll explore economic and market implications of thinly 

traded price discovery markets, which is sure to generate a great 

deal of discussion. 

Mr. Chairman, there’s been a great deal of discussion by both 

this committee and the commission on the amount of foreign exchange or forex fraud. The chairman of the commission has asked 

me to head up a task force which has two goals: to raise consumer 

awareness regarding forex fraud through educational efforts, and to 

encourage State and local and Federal authorities, as well as conVerDate 0ct 09 2002 11:23 Nov 30, 2006 Jkt 000000 PO 00000 Frm 00016 Fmt 6633 Sfmt 6633 C:\DOCS\30431.TXT SAG2 PsN: SAG2
13

sumer advocacies and industry organizations, to assist in our efforts at fighting forex fraud. 

The task force has been—has created and distributed a brochure 

warning investors of potential fraud, and want to protect it—and 

how to protect themselves from that. 

Thousands of these brochures have been circulated throughout 

the country. Over—close to 10,000 have been downloaded from our 

Web site. The task force has facilitated CFTC’s membership and 

consumer alliance groups, engaged in joint activities with the National Futures Association, the North American Security Administrators Association, and has met with staff of State attorney generals. 

I firmly believe that along with the proposed changes in the CEA 

reauthorization and this consumer education, we will have a twoprong approach to fight forex fraud. 

It’s been an honor and a privilege to serve for the last year and 

a half on the CFTC. If I’m confirmed for another 5-year term, I look 

forward to working with the committee, Congress, the administration, and my fellow commissioners to fulfill the mandates of Congress at the CFTC. 

I appreciate your time and effort, and look forward to answering 

any questions that you may have. Thank you. 

[The prepared statement of Mr. Dunn can be found in the appendix on page 30.] 

Senator THOMAS [PRESIDING]. Thank you all for your testimony. 

The Chairman ran over to vote, and he will be returning as shortly 

as possible. In the meantime, we’ll go ahead. Rather than take too 

much time, because we do—I have some interests that I want to 

express to Mr. Knight, particularly, being from Wyoming. And 

they’re not questions, particularly; I just want to let you know that 

these are areas that I’m concerned about, and then you might wish 

to comment. One is brucellosis, of course. And APHIS is very much 

involved in that. And we’re interested in getting returned to a brucellosis-free situation in Wyoming. We’ve been free, we think, for 

over a year; and so, we need to continue to work at that. 

Wildlife Services. APHIS also oversees the Wildlife Services. 

We’re very much involved with predators and so on. And we are 

working very hard with our colleagues in Idaho and Montana. So, 

we want to enlist your support to maintain and strengthen the 

wildlife services. The Tri- State Predator Program that is underway 

and is doing some things. 

Mandatory price reporting. As you know, the law requires mandatory price reporting. And we think this means not everyone in 

the industry is participating, because some of the difficulties there, 

and we hope that you’ll support mandatory price reporting. 

Packers and Stockyards Act. Inspector General’s Office released 

a report that USDA had failed to enforce Packers and Stockyard. 

It’s put in place to ensure competition. 

So, I hope that you will give some attention to implementing the 

recommendations of the OIG report, and this one’s very important. 

Animal ID, finally, is something that I think needs some clarity, 

or at least the implementation in March. I’m glad USDA’s working 

closely with the States to try and do some things, and I hope that 

14

we can succeed with a voluntary program so that it doesn’t necessarily become mandatory. 

So, if you have any general reaction, fine; otherwise, we’ll go on 

to Senator Harkin. 

Mr. KNIGHT. Senator Thomas, I appreciate the concerns very 

much, and I look forward to, if confirmed, working with you very 

closely on each and every one of these issues. 

I’ll try to bring my own experience as a rancher to the table as 

I look at how do we move National Animal ID forward. Things like 

brucellosis, I’d never let—there’s never been a heifer calf leave the 

ranch that hasn’t been Bangs vaccinated. So, that same sort of approach will be taken to each and every one of these issues. 

Senator THOMAS. Great. We appreciate your service. Thank you. 

Senator BAUCUS. If I might, Mr. Chairman—I’ve got to run—if 

I could just put my statement in the record, and questions in the 

record. 

[The prepared statement of Hon. Max Baucus can be found in 

the appendix on page 22.] 

Senator BAUCUS. Basically, as you know, Mr. Knight, they 

revolve around gypsum and around country-of-origin labeling. 

We’ve got to move on that. Thank you. 

Senator THOMAS. Thank you, sir. Senator Harkin? 

Senator HARKIN. Thank you, Mr. Chairman. 

Just a couple of questions for Ms. Johner. 

Ms. JOHNER. Yes, Senator. 

Senator HARKIN. I—one of the things that this committee has 

been involved in for a long time has been the nutrition programs 

and the health of children in schools. And we continually try to get 

our arms around the breakfast programs, the school lunch programs, that type of thing. 

And I don’t know how familiar you are with the fruit and vegetable program. In the last farm bill we started a program of providing free—free—I keep repeating that— free fresh—fresh—fruits 

and vegetables—free fresh fruits and vegetables—to kids in 

schools. It was sort of a pilot program. It started with four States, 

100 schools, one Indian reservation. We wanted to see what would 

happen. 

The only stipulation we put in there, it wouldn’t—it couldn’t be 

in the lunch room. It had to be outside the lunch room, either in 

the classroom or in the hallways or something like that. And it had 

to be available during the day. Each one of those first 100 schools 

that applied, not one of them wants to drop out of the program. 

They all want to continue. We’ve now gone from four States to 14 

States, and we’re well over 500 schools now, and it’s just growing 

rapidly. Every single school that has voluntarily participated says 

it’s one of the best things that’s ever happened. These kids come 

to school in the morning, they get the growlies around 9:00 o’clock, 

and they can get carrots. I’ve actually seen kids, with my own eyes, 

eat fresh broccoli, Craig. [Laughter.] 

Senator HARKIN. It’s amazing. With my own eyes, I’ve seen it. I 

couldn’t believe it. Or fresh fruits. They get grapes, strawberries, 

they get pineapple, all kinds of— bananas. And during the spring 

they get the fresh strawberries. I saw one school, they bring in the 

fresh strawberries in the spring, and by 10:00 a.m. there’s not a 

15

strawberry left in the school. Kids love it. They get fresh applies, 

oranges. 

Well, that’s just my way of saying it’s been very popular, and I 

think it’s gone a long way towards helping the health of our kids. 

So, I don’t know if you’re very familiar with it. Not a lot of people 

are. I guess I’m just asking you, here, to really take some time, familiarize yourself with the program, go back to what we did in the 

farm bill, where we are in it now, and, at some point down the pike 

after you assume this position, I’d like to talk with you about how 

we continue to expand and grow this fruit and vegetable program. 

I don’t know if you’re familiar with it. I—if you aren’t, I wouldn’t 

expect you to be unless you were involved in it in some way. 

Ms. JOHNER. I do appreciate that question, Senator Harkin, and, 

no, I’m not familiar with that. We don’t participate in that in Nebraska. However, I look forward to reviewing that operation. It 

sounds great. I believe that nutrition is very important to our kids, 

our children in the school systems. So, yes, I would be eager to look 

into that and discuss this with you. 

Senator HARKIN. I’d ask that you maybe visit one of those States 

or someplace—

Ms. JOHNER. Yes. 

Senator HARKIN. —where they have this program, or where 

they’re expanding it rapidly. Pennsylvania’s—I don’t remember all 

the States now. I can’t remember them all. But the goal—our goal 

was, when we implemented this —was, within 10 years, to have 

free fresh fruits and vegetables to every elementary school kid in 

America. And the way that it’s been accepted and growing, it’s been 

phenomenal. So, I hope we can keep on that track. 

And so, I—again, sometime later we’ll—I want you to—when we 

come back, we’ll talk about it. 

Ms. JOHNER. Yes, Senator. If confirmed, yes, I would be more 

than happy to look into that for you. 

Senator HARKIN. Great. 

And, Bruce Knight—well, let me put it this way, Are you going 

to find some—find someone to replace you as good as you down at 

NRCS? [Laughter.] 

Senator HARKIN. I mean, I—I told you I had mixed feelings about 

this one, you know. Anyway, I—you don’t have to answer that. I’m 

just— [Laughter.] 

Mr. KNIGHT. I have learned, a long time ago, that there are 

many people in this world much more qualified than I—

Senator HARKIN. Yeah. 

Mr. KNIGHT. —and it’s the people you surround yourself with 

that make one a success. 

Senator HARKIN. Well, I hope we find someone to continue the 

good work that you’ve done down there. And the rest of you, congratulations. I won’t—we’ve got to go vote and everything like that, 

but I wish you all very well, and I look forward to working with 

you—

Ms. JOHNER. Thank you, Senator. 

Ms. MCKAY. Thank you, Senator. 

Senator HARKIN. —very much. 

Senator THOMAS. Senator Talent? 

16

Senator TALENT. Thank you, Mr. Chairman. I’ll try and be brief, 

because I know we have to go. All right, I’ll have some questions 

for the record, too. Let me just raise one issue, Mr. Knight, with 

you, and that’s the whole question of the Animal ID Program that 

would allow for a 48-hour traceback. Now, I just—I think it’s an 

important tool that has the potential to add value on the bottom 

line for producers who choose to participate in it, and also to just 

maybe ease some of the minds of our international trading partners, even though it’s very clear that, you know, our herds are 

clean and disease-free, particularly compared to other countries. 

I don’t support a mandatory program, a mandatory animal ID 

program, but I think a voluntary program that’s developed with industry has a lot of potential. We have to keep in mind, of course, 

that what may work for beef may not work in —at least in the 

same way for poultry and for pork. I also think that it’s the kind 

of program that either makes its value known to producers or it 

doesn’t. And if it doesn’t, then, obviously, you know, a compulsory 

program’s not going to be a good idea. And if it does, then you’re 

going to get a lot of sign ups without that. 

Now, Secretary Johanns and I have talked at length about this. 

I have also visited a lot with our producers and producer organizations. If you want to make a comment— and I figured I’d let you 

know my views about it—if you want to make a comment, I think 

it would be welcome, at this point. 

Mr. KNIGHT. Thank you, Senator Talent. In the last several 

weeks, I’ve taken a much closer look at animal ID, since the nomination, and it certainly will be one of the highest priorities on my 

desk, if confirmed. There is a—room for improvement in making 

this touchable, tangible, and understandable for farmers and 

ranchers. It—we need a voluntary program that’s very easy to understand and a program that is very apparent to a producer why 

it’s important to both themselves as an individual and to the industry good as a whole. And I think those precepts could be transformational in how we’re working with the National Animal ID 

Program at present. 

Senator TALENT. Well, I very much appreciate that comment. It 

shows you’ve been thinking about it. And I’m also grateful that you 

think of it as a priority. And I agree with you, I think we need to 

really look at how we’re doing this now and how we’re communicating what we’re doing. And I’m pleased that you want to make 

that a priority. Thank you, Mr. Chairman. 

Senator THOMAS. I think the chairman will be back shortly to 

have some other questions. Ms. McKay, this is sort of naive, but 

could you kind of summarize what’s the role of the Secretary of Agriculture for Civil Rights? 

Ms. MCKAY. Yes, Senator. I see the role of the Assistant Secretary for Civil Rights at USDA as one of enforcing the Department’s civil rights policy, obviously, and that means preventing, or 

being proactive in preventing, discrimination, rooting it out, if it’s—

if it occurs, and making sure that corrective action is taken. 

Senator THOMAS. Okay. Very good. Mr. Dunn, what do you think 

are the priorities that need to be considered by the Futures Trading Commission? 

17

Mr. DUNN. Senator, at the present time, as I indicated in my 

opening statement, we have three requests for comments, one on 

the self-regulatory organization governance, and that seems to be 

a very, very high priority. We have gotten a great deal of comments 

on that and asked a request for extension of the time for that particular issue. Foreign boards of trades, the globalization, and electronic trading is taking place. There’s just been explosion out there, 

and it has a great impact on our internal markets, our domestic 

markets here in the United States. Again, we’ve extended the comment period on that so that we can hear from everybody on what 

they think about it. And, finally, the Commitment of Traders report, which really is the cornerstone for our surveillance, and used 

by all of the industry in figuring out what is happening, and it ensures that we have some type of transparency at the CFTC. 

The Chairman [presiding]: Ms. Johner, the USDA Food and Nutrition Service has a total annual budget of over $52 billion administered by 1400 employees. As director of Nebraska Health and 

Human Services, you supervised 5,000 employees, but the annual 

budget approached only $1 billion. Would you please explain for the 

committee your experiences that make you qualified for managing 

such a large increase of resources? 

Ms. JOHNER. Thank you, Senator. I—and I appreciate your question. I believe I do understand the significant responsibility that I 

would face if confirmed to this position. First, I believe that my 

philosophy of management which I have developed in my experience at the local and the regional and State levels will help me in 

this position. I believe that principles, as I said in my opening 

statement, brings quality to the service. And I believe in basing decisions on compassion, integrity, respect, openness, and honesty. 

These principles, along with working with the talented and dedicated staff, will allow us to accomplish the desired mission. 

But this question has been raised to me before in every step of 

my career. I believe I have demonstrated a track record of success. 

I first started as a professional partner program manager with a 

staff of 17 and a small budget, then moved to the service area administrator, with a staff of 222 and a $2 million budget, then 

moved on to the director of Nebraska Health and Human Services, 

with a staff of 5,000 and a budget of over $960 million. And I have 

succeeded in those. But, most importantly, I have a strong desire 

to help the children and families in this Nation. I also have a 

strong commitment to public service. Thank you. 

The CHAIRMAN. Ms. McKay, in the area of civil rights, USDA has 

had problems in the past, but improvements continue to be made 

to ensure these problems do not resurface. If confirmed, what 

measures will you take to build on those already taken by USDA 

to ensure civil rights at USDA continue to improve and do not take 

a step back? 

Ms. MCKAY. Senator, if confirmed, my plan will be to first educate myself on the current state of affairs to find out what measures have been taken, what successes have occurred, what more 

needs to be done. My style is to work closely with my staff to listen 

to their suggestions, to rely on their expertise. I plan to also, if confirmed, work closely with external stakeholders, and I believe that 

18

by listening and working collaboratively we can figure out what improvements need to take place and move forward. 

The CHAIRMAN. Mr. Dunn, Alan Greenspan, the former chairman 

of the Federal Reserve system, has spoken of the benefits of derivatives markets; specifically, the lessened vulnerability of financial 

institutions to risk factors and the increased resilience of the entire 

financial system as a result of derivative use. Do you agree that financial system stability is improved by access to derivatives? 

Mr. DUNN. Yes, Mr. Chairman, I certainly wouldn’t contradict 

Mr. Greenspan. It’s an important part of the market, and something that we’re very much aware of at the CFTC. 

The CHAIRMAN. Mr. Knight, Senator Grassley had a question 

here that he asked me to ask you. Soybean farmers in Iowa and 

other States established a Checkoff Evaluation Task Force to hire 

an outside consultant to look into how the United Soybean Board 

is using $35 to $40 million in producer checkoff assessments annually. The task force has requested funding from USB, as well as 

from State checkoff boards, to pay for the evaluation. On July 10, 

the USB board voted to not support this activity. I hope you will 

strongly encourage USB and State checkoff boards to fund the proposed evaluation of the soybean checkoff program. In the event 

adequate funding is not made available, I ask you to consider requesting a full audit of USBA—USB program and financial activities by the General Accounting Office. 

Any comments you wish to make? 

Mr. KNIGHT. I—if confirmed, I will commit to taking a look at 

that and sit down with Senator Grassley about his concerns and 

see what resolution we can find. 

The CHAIRMAN. Ms. Johner, in articles you authored and provided to the committee you mentioned the idea of managing programs from the perspective of a family/person-centered practice. 

Would you please explain what that is? 

Ms. JOHNER. Thank you, Senator, yes. Simply put, it’s basically 

just involving the people we serve, bringing them to the table, 

being able to have their voice and involvement in the planning 

process. And it’s working as a team-base approach. 

Currently, my experience has been in the, I guess, government 

sector—is that we sometimes make the plans and not involve the 

families. And it’s important for me that we do involve families and 

all team players as we continue to plan for the success of the families we serve. 

The CHAIRMAN. Mr. Knight, the regulatory mission program area 

of USDA is quite extensive. Given the increased need, the focus on 

very important issues of the livestock surveillance and disease 

management, such as avian influenza, animal identification, and 

BSC, how will you ensure that other important functions of MRP, 

such as vital technologies and field testing, improved vegetable 

marketing programs, and the maintenance of proper grain inspection standards, are sufficiently recognized and properly maintained? 

Mr. KNIGHT. In the review and the preparation for this hearing, 

it became very apparent to me that one of the first priorities will 

be to make sure that we have a balanced approach. I see a tendency already for the crises of the day to eclipse things. And you 

19

need to make sure that there is management time for the day-today issues that need to continue. So, BSC and avian influenza and 

National Animal ID, while extraordinarily important, cannot be allowed to eclipse the important functions of GIPSA, AMS, and each 

of the—each of the areas there. So, I will strive to find a balanced 

approach to implementation of all the programs within the mission 

area of MRP. 

The CHAIRMAN. Ms. McKay, as you know USDA is an extremely 

large governmental department with a number of agencies and offices, as well as over 100,000 employees. 

The Office of the Assistant Secretary for Civil Rights Mission is 

to, quote, ‘‘provide leadership and direction for the fair and equitable treatment of all USDA customers and employees while ensuring the delivery of quality programs and enforcement of civil 

rights,’’ close quote. How does your previous work experience prepare you for the responsibility of carrying out this mission in such 

a large organization? 

Ms. MCKAY. Thank you, Senator. I have spent my entire legal career in some aspect of civil rights. I’ve served as a prosecutor, a defense counsel, a neutral, and a judge. And these experiences have 

afforded me the opportunity to view the issues, the civil rights 

issues, from different perspectives. 

I have also served as executive assistant to the head of a Federal 

agency, and so I gained a lot of experience in handling policies, procedures, personnel, budgets. And in my most recent position I was 

counsel to company managers, advising them on good management 

practices and fair employment practices. 

And so, putting all that together, I think I bring a perspective 

and an ability to see the big picture, and my willingness to listen 

and to collaborate with the USDA officials who run the programs, 

in coming up with a comprehensive plan, I think, will do the job. 

The CHAIRMAN. Mr. Dunn, you alluded to the fact that the modifications made by the Commodity Futures Modernization Act are 

largely viewed as positive additions to the Commodity Exchange 

Act. Would you agree that these reforms are, in fact, improving the 

CFTC’s ability to better ensure the integrity of the Nation’s futures 

markets? And, if so, would you care to elaborate on specific implementation successes? 

Mr. DUNN. Mr. Chairman, the—this has really been an unqualified success. And that’s not just my opinion; it’s almost anyone that 

we talk to. You certainly heard a lot of that in your hearing process 

on the reauthorization of the CEA. Just the amount of the increase 

in the volume of over 300 percent since the passage of the CFMA 

speaks volumes for how successful that particular piece of legislation is. I think, again, that the—this committee, and Congress, as 

a whole, can be just justifiably proud of what you accomplished 

with that. The increase in competition, the innovation and ideas, 

the types of contracts that are being offered today are all a result 

of that particular legislation. 

The CHAIRMAN. Now if we can just get the CEA reauthorized, 

we’ll be back in business. 

Mr. DUNN. That would be greatly appreciated, Mr. 

20

Chairman The Chairman. I don’t think any of my colleagues are 

going to be coming back, so you folks were saved by the proverbial 

vote. [Laughter.] 

The CHAIRMAN. We’ve looked at your backgrounds, you’re known 

personally to a number of us, so we’re excited about the fact that 

you’re willing to commit yourselves to public service. Again, we 

thank you for being here today. 

I would remind everyone that any questions that you wish to 

submit to these four nominees must be in by tomorrow afternoon 

at 5:00 o’clock. We’re going to be getting the committee together as 

soon as possible to consider these nominations and move them to 

the floor. We’d like to get that done before adjournment, because 

all four of these folks need to be confirmed. 

So, with that, this hearing will be adjourned. And thank you very 

much. [Whereupon, at 10:30 a.m, the hearing was adjourned.] 

(21)

A P P E N D I X

JULY 26, 2006

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Æ