EXPANDED MARKETS SOUGHT; BOND PART OF EFFORT TO ASSIST FARMERS

Farm-state lawmakers are asking the Bush administration to step up efforts to expand markets for American farm products.

In a meeting with high ranking administration officials, including representatives from the Department of Agriculture, Domestic Policy Council, Office of Management and Budget and others, a group of 11 Republican senators, including Sen. Christopher "Kit" Bond, this week expressed their farm market concerns.

"We told these officials that the administration should be more aggressive in pursuing potential markets for agricultural goods," said Bond during a telephone conference call from Washington Wednesday. "There's a lot of dissatisfaction among the nation's farmers on the way that agricultural policies are being carried out," he said.

Bond said the 11 Republican senators outlined the need for the administration to act on behalf of the farmers in four areas:

Increasing value-added exports.

Assisting pork exports in the Commonwealth of Independent States.

Requiring the European Community (EC) to end unfair trade subsidies in the oilseeds 301 case.

And including ethanol as an alternative fuel source in the Clean Air Act.

"The EC has been violating the international trade agreements by heavily subsidizing their oilseeds production," said Bond. "The EC has offered to pay compensation on products other than oilseeds, but this is just not acceptable.

"I am not advocating a devastating trade war on soybeans," said Bond. "But I think we should make it clear to the EC that we are serious."

Bond said the Department of Agriculture committee agreed to resubmit a proposal to use the Export Enhancement Program (EEP) to promote pork products in the former Soviet Union. "The EEP funds would be used to counter the EC's subsidized products in this newly-opened and rapidly expanding market," said Bond.

Administration officials also indicate they are nearing an agreement that would include ethanol in the oxygenated fuels program in the Clean Air Act.

"Farmers see the increased use of corn-based ethanol as a fuel additive as a promising growth market for new corn sales," said Bond. "I don't know how many acres of new corn would be involved, but it would probably result in a 20 to 30 percent increase in the crop."

Bond said the officials also agreed to pursue new opportunities to sell value-added products.

These goods are former raw products like corn or soybeans that have value added to them through processing in the U.S. "We feel that expanded value-added exports will increase economic opportunities and jobs in rural America," said Bond.

During the conference call, Bond was asked his position on the closure of some USDA offices.

"I think the USDA should be subjected to review," said Bond. "If there are some areas where administrative costs are prohibitive, I think they should be closed."

Bond cited an example.

"In one Missouri county, 1,522 farmers are participating in USDA programs," he said. "The office has nine employees, and the budget is about $300,000. In comparison, a county in Vermont serves 1,524 farmers. The office utilizes 30 employees and the budget is $1.3 million. To me that means there are some USDA problems in Vermont.

"I think we need to look at the services provided by the USDA. We may find some areas where we can consolidate," said Bond.

"The U.S. has traditionally been the world's leader in exports of agricultural goods," said Bond. "But that dominance is being seriously eroded. Farmers feel that the administration's unwillingness to use the exports programs at its disposal to move U.S. products is hurting their prices and keeping them out of the world market."