Veneman to Farmers: Seek Alternatives

February 23, 2001

Agriculture Secretary Ann Veneman made it plain that farmers can count on the Bush Administration for support, but they need to focus their efforts on alternatives to government support. She told USDA's Outlook Forum farmers need to build relationships with one another and integrate with processors and food companies to recognize "higher value production and value-added processing businesses."

Veneman cited 1,100 durum farmers who formed the Dakota Growers Pasta Company to manufacture from their own production; U.S. Premium Beef, now operating in 33 states as a beef processing, farmer owned cooperative; Tennessee Pork Producers who, with the help of USDA, formed a cooperative to market pork to Hispanic markets, and "small farm operators all over the country (who) are successfully producing organic and specialty crops for niche markets, up-scale restaurants and farmers' markets."

"The combination of globalization, technology and ever-demanding consumers means a more tightly connected food chain with stronger linkages among producers, processors and retailers," she said.

"Evolution of the new food system may be viewed in different ways, but ultimately, requires new relationships and new thinking."

As Congress develops a new farm bill, she added, producers should work together to develop proposals. "Traditionally, interested parties have independently presented their views before Congress, often as competing interests."

But a process is needed "that brings together commodity groups, general farm groups, processors, wholesalers, retailers and consumers to find the best approach for all to succeed in the new, consumer driven food system."

The interdependence needed for success "is the force that should drive the participants to come together," said Veneman. An example, she added, is biotechnology where farm groups, seed manufacturers, processors and retailers "have come together to address the challenges that biotech has confronted, including consumer acceptance and access to overseas markets."

By "bringing the links of the food chain together, solutions can be found that will benefit everyone," she added.

USDA's focus will be expanding trade, developing technology that yields new products, increasing productivity and "more environmentally friendly farming." Almost incidentally, she mentioned that USDA "must and will carry out its traditional duties," that farmers need "an adequate economic safety net which is consistent with a market-based farm economy," but she also cautioned, "government cannot force solutions."