High Marks Given USDA Principles

September 20, 2001

Agriculture Secretary Ann M. Veneman Wednesday officially released the Bush Administration's review of the food and agriculture system and immediate reaction from agricultural interests was generally favorable.

The report, "Food and Agricultural Policy: Taking Stock for the New Century," details the enormous changes that have taken place in agriculture which continue to accelerate across the U.S. food and farm sector. Given the enormity and pace of change, the report recommends that policy makers examine past policies and programs and, where necessary, define new goals and principles that can best guide the future growth and development of the farm, food and agriculture industry in the new century.

"Our challenge today is to address the vital forces of change while at the same time modernizing the foundations of our farm and food system to ensure continued growth and development for the 21st Century," said Veneman. "Farmers today operate in a global, technologically advanced, rapidly diversifying, highly competitive environment that is driven by increasingly sophisticated consumers. The various policies, programs, and supporting infrastructure that serve our food system will require updating to meet future needs."

Bob Stallman, president, American Farm Bureau Federation, called the report a "comprehensive view of food and agriculture policy principles that will be useful as Congress moves forward in determining the future of agriculture policy."

House Agriculture Committee Chairman Larry Combest (R-TX) said the policy principles "will help guide us all toward the important goal of promoting a strong and dynamic agricultural industry for our nation's future." Combest added he was "pleased that the principles and ideas put forward are fully consistent with goals of H.R. 2646, the Farm Security Act, which has been passed by the House Agriculture Committee. As the House moves forward, I look forward to working closely with the Administration to make sure our government stands shoulder to shoulder with the American farmer."

The National Farmers Union (NFU) also voiced approval. "We are pleased to see the administration ... moving forward with general ideas for the next farm bill," said NFU President Leland Swenson. "We are encouraged by the opportunity to work with both on meaningful details as the policymaking process unfolds."

Swenson said NFU's policies fit with many of the principles outlined by Veneman. However, he voiced concern that the Secretary's report failed to address increasing consolidation in agriculture production, processing and retail sectors.

"NFU looks forward to working with the Administration and all members of Congress to make substantial changes to the farm policy that has not worked for five years," Swenson said. "We will continue to work for a bill that offers new vision and new tools such as an improved marketing loan program that is based on the cost of production and that equalizes loan rates among commodities."

The International Dairy Foods Association (IDFA) applauded the direction of the new report. It "sets key principles for growth and development of the U.S. farm, food and agriculture industry over the next five years and into the future."

Of special interest to IDFA was the report's recognition that "farm policy must consider market forces, the realities and benefits of international trade, and such issues as the diet of Americans, investment in rural America and the environment, IDFA said.

"The new USDA report takes a more comprehensive view of the food and agricultural system than we have seen in a long time, which is a very positive approach," said Connie Tipton, IDFA senior group vice president. "The principles outlined by USDA take into account the role of trade, the need for competition and market orientation, and also the need to provide support to agriculture in an effective way that minimizes distortion of markets. These are principles long shared by IDFA."