Date: 1984-08-06
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I rise in support of House Joint Resolution 600. which would establish a broadbased national Commission tc conduct a study of agriculturerelated trade and export policies of the United States and the manner in whiqh the5 can be improved to better develop. maintain. and expand markets for U.S. agricultural. exports. This resolution Is a response to the concern within the agricultural community with the serious decline In U.S. agricultural exports since 1980. The volume of U.S. agricultural exports has declined 13 percent since 1980. from a record level of 163.9 million metric tons to a projected level of 142 million tons In 1984. At the same time. the dollar value of U.S. agricultural exports has declined from a record level of $43.8 billion in 1981 to a low of $34.8 billion in 1983. Exports are a mainstay of profitability in the U.S. agricultural economy. Indeed. since the midseventies. U.S. agriculture has become Increasingly export dependent. During the decade of the seventies. the volume of total U.S. agrituultural exports increased on an average of 10 percent per year with the total exports more than doubling and the value of those exports increasIng more than fivefold. Two of every five acres harvested in the United States today are devoted to the production of crops that are exported. More than half of the wheat. soybeans. and sunflower seed. onethird of the rice. cotton. and tallow. and more than onequarter of all the tobacco and feed grains produced In the United States is exported to markets throughout the world. U.S. agricultural exports go to more than 130 countries on all 5 continents. including such significant markets as Japan. the Netherlands. the U.S.S.R.. Canada. Spain. China. Korea. West Germany. Mexico. Taiwan. Italy. Great Britain. Belgium. Egypt. and Venezuela. Our great agricultural abundance. therefore. provides a treme idous variety of lowcost foods and fibers not only for our own citizens but for millions of people in both developed and developing nations. The importance of exports for farm Income cannot be underestimated. During the years of declining exports since 1980. net farm income in the United States has declined from a level of $30.1 billion in 1981 to a projected level of between $15 and $17 billion in 1983. While our Nations producers lose income from declining exports. the Nation also suffers from a mounting trade deficit. Agricultural exports have in the past provided a bright spot In an otherwise dismal picture of our balance of trade with foreign countries. the current U.S. trade deficit. which Is forecast to exceed $100 billion by the end of this year. is in part a *result of the continuing downward *trend In agricultural excports. A number of significant factors have been identified as contributing to *problems affecting U.S. trade in agri*cultural commodities and products. iThe value of the U.S. dollar may be as I much as 20 percent higher today than i it was 2 years ago in relation to the .worlds 15 leading currencies. A strengthened dollar increases the price of U.S. commodities in world markets. providing an Incentive for expanded production in agricultural commodities and products by competitor nations. The problem of an overvalued dollar has -been exacerbated by the use of export subsidies by other nations. While the United States has responded to these competitive pressures by increasing the amount of Government direct and guaranteed export credit. it appears that this policy has not been sufficiently successful In stemming the decline of the U.S. market share In major world markets. The years since 1980 have also witnessed a period of serious decline in the international economy. Weak economic growth in the United States until very recently has been paralleled by similar problems affecting industrialized nations. In addition. many nations of the Third World have faced economic crises during the early years of this decade. The rapid expansion of demand for U.S. agricultural commodities and products which occurred in the seventies. In part as a result of the easy availability of commercial credit during a period of worldwide economic growth. has collapsed In recent years as credit has contracted In response to a worsened international economic situatlori. The total debt of the developlug countries has nearly doubled since 1979. from $472.1 billion to a projected level of $820 billion In 1984. While there may be agreement in regard to some of the significant factors which have contributed to the decline in U.S. agricultural exports in recent years. no comprehensive consensus on appropriate Government export policy has yet emerged. The committee is of the view that that a National Export Policy Commission. as would be established by House Joint Resolution 600. would be very helpful in providing guidance for a comprehensive export policy. The Commission would be widely representative of the U.S. agricultural sector and would include Members of Congress representing committees of Jurisdiction. The study Commission would be financed by contributions from private sourcesindividuals. corporations.. foundations. and other entities. To avoid any possible appearance of a conflict of Interest In the appointment of members of the Commission. House Joint Resolution 600 provides that contributions could be received only after appointments to the Commission have been completed. Also to assure that the financing would be drawn from a truly broad base of support. the resolution limits the amount that could be received from any single source to 5 percent of the Commissions budget. Finally. as a backup in the unlikely event that private contributions are not sufficient to insure that the Commission is adequately funded to do a thorough Job In fulfilling its mandate. the resolution authorizes the Secretary of Agriculture to use the funds of the Commodity Credit Corporation up to a maximum amount of $1.000.000. Under this authority the funds of the Commodity Credit Corporation would be available to finance the Initial organizational meetings of the Commission if they should occur before contributions sufficient to cover these expenses had been received. Once such contributions were received. It is expected that they would be used to reimburse the Commodity Credit Corporation for its advances. The committee believes that there Is a broad base of support for the Commission and. based on testimony received at the hearing. that there Is sufficient interst in the private agricultural sector to meet the financing needs of the Commission. The provision relating to the use of Commodity Credit Corporation funds has been included only as a backup. The final report of the Commission is required by the resolution to be submitted to the President and Congress by July 1. 1986. However. In order that the Congress may have the benefit of any recommendations of the Commission at the time of consideration of the 1985 farm bill. the resolution requires an Interim report with initial findings and recommendations by There has been concern that this resolution may be a stalking horse for a reduction in loan rates or otherwise for recommendations which would seriously affect domestic legislation that provides supports for farm income. That is not the intention of the Committee on Agriculture and the sponsors of the resolution. We simply believe that In order to enhance farm income. it Is also necessary to address the Issue of the decline that has taken place In U.S. agricultural exports. This is a mattcr on which the agricultural community is united. The legislation has a broad base of support among a large sector of the agricultural community. as was evidenced during the joint hearings held by the Committee on Agriculture. the Committee on Foreign Affairs. and the Committee on Ways and Means. In the final analysis. the Commission would merely be providing recommendations. It is hoped that these will provide new insights as to steps that should be taken to improve exports. However. it will be up to the Congress and the committees of Jurisdiction to take the actions that will be necessary to Implement these recommendations. I would like to express my appreciation for the cooperation that has been given in this endeavor by our sister committees. the Foreign Affairs Committee and the Ways ar.a !.eans Committee. that share jurisdiction on the resolution. They participated in the hearings and have generously agreed to allow the resolution to come up today so that It can be enacted Into law before the close of this session. I urge my colleagues in the Iouse to Join me In support of House Joint Resolution 600.*