TEXAS AG COMMISSIONER Susan Combs, left, played host to U.S. Agriculture Secretary Ann Veneman, right, during the Texas leg of Veneman's recent multi-state tour. Veneman visited several ag-related sites in and near San Angelo, where she discussed issues with local industry leaders.

Homeland Security Is Key Issue
With Secretary Of Agriculture

SAN ANGELO — Secretary of Agriculture Ann Veneman made a stop in San Angelo last week to visit with local and state farmers and ranchers. It was the first time a U.S. secretary of agriculture had ever visited here.

San Angelo was the second stop on Veneman's three-state tour. During her daylong tour of the area she visited Producers Livestock Auction, where she met with a large crowd of local ranchers, toured the facilities and conducted a short press conference with local media.

She also toured Ranchers’ Lamb of Texas, where she received a one-on-one tour of the new fabrication facility. She heard from plant officials about some of the issues facing the sheep industry, particularly government grading of imported carcasses.

Following a noon luncheon she toured the Wall Co-op and visited with local farmers about the boll weevil eradication program.

Texas Agriculture Commissioner Susan Combs played host.

"The fact that the Secretary is here is a clear sign by the administration and by President Bush of the administration's absolutely strong, unswerving support of agriculture," Combs told listeners.

In the press conference and during the noon luncheon Veneman told listeners of her pleasure at being a part of the Bush administration.

"We are so proud to have your former governor in Washington, and I’m proud to be part of his administration," Veneman said. "The president is doing an extraordinary job. He is showing remarkable leadership skill at a time when this country really needs it."

The purpose of Veneman's trip was to highlight and reiterate a few of the things Bush talked about in his State of the Union address, primarily the importance of fighting the war on terrorism and the importance of homeland security. Homeland security, she noted, is one of those areas where USDA and agriculture have a key role to play.

"We want to make sure that we have an agriculture industry that is as secure as possible, that our agriculture is not threatened and that we continue to maintain the safest, most productive food supply in the world," Veneman said.

The foot and mouth outbreak in Britain, she noted, made the U.S. even more aware of the importance of strengthening and enhancing our own systems to protect against pests and disease.

On that note, Veneman announced that the president is proposing an additional $146 million for homeland security. That amount is in addition to the $328 million already included in the defense appropriations bill.

"Now we are not just worried about accidental threats, we’re worried about intentional threats too."

Veneman acknowledged the Texas Department of Agriculture and complimented Combs for the work being done in Texas on the homeland security front.

The federal government, she stressed, must have a working partnership with state governments and their agencies, particularly when it comes to detection of any threat to the food chain.

"We are working with everyone up and down the food chain, including such people as local veterinarians, to make sure that we are integrated in defense and in our response if anything unfortunate should happen.

"This is not just a farm issue," Veneman stressed. "This is a food chain issue."

It’s no secret that the Bush administration is focused on free trade. The importance of getting trade promotion authority through Congress was another of the issues highlighted in the president’s recent address. That particular issue, Veneman said, is a priority at USDA.

"The agriculture industry is such a trade dependent industry," she pointed out. "We export about 25 percent of what we produce in this country. We export about 50 percent of our wheat and increasing amounts of meat and poultry. Our agricultural products exported to Mexico have doubled since the implementation of NAFTA.

"Our export markets are critical," she continued. "We want to maintain them and we want to continue to expand those markets because they are so important for our farmers and ranchers."

The week before, Veneman and Bush acknowledged the 100th birthday of 4-H by hosting a group of 4-H youngsters in the Oval Office. The importance of youth in agriculture and the role they will play in the future was also being highlighted in Veneman’s tour. She told San Angeloans about a new youth initiative she would be announcing the following day at Ohio State University. The new initiative would specifically address the roles that 4-H and FFA play in agricultural education for youth.

During a noon luncheon at Angelo State University’s MRI Center, Veneman had the opportunity to meet with several state and local industry spokespersons. She spoke with many of them one on one and then in a brief address reiterated many of the points mentioned that morning regarding homeland security, the farm bill and trade authority.

Deputy undersecretary for marketing and regulatory programs Dr. Jim Butler was traveling with Veneman on this leg of the trip. She acknowledged the crucial role he plays at USDA.

"Pest and disease and eradication programs are part of the core mission of the state and federal agriculture departments," Veneman said. "It’s a mission they handle very well."

She encouraged listeners who had concerns in this area to contact Butler.

The pending farm bill was another topic mentioned on several occasions throughout the day. The secretary assured listeners that USDA stands ready to implement the new farm bill just as soon as the president signs it.

At her stop in Savannah, Georgia the previous day, Veneman met with members of the Farm Service Agency. She discussed with them the importance of that very thing.

The Senate, however, must first approve a bill and then the House version and the Senate version will go to conference committee for a rewrite.

"I understand that many producers are wondering if the new bill will apply to the 2002 crop," Veneman said. "I think it is Congress’ intent to have it apply to this crop. However, if Congress runs out of time, we do have the budget resolution that passed both the Senate and the House that allocates $73.5 billion over the next 10 years. The administration has agreed to that and it will appear in the president’s budget as a 10-year figure. So I believe even if there is not a farm bill that applies to the 2002 crop that there will be some supplemental assistance."

Veneman was asked whether the new farm bill would have more conservation and environmental provisions.

"Virtually every version of the new farm bill has additional spending for conservation," she said. "The administration understands the importance of conservation for working farmers. Farmers and ranchers are the best stewards of the land, and to the extent that we can increase our conservation programs to help farmers be better stewards of the land, everybody benefits. It’s better than taking land out of production. It’s better that farmers have resources to help them with conservation, that’s what we think Congress is going to do, and that’s certainly something that the administration supports."

Veneman also announced that Texas is to receive $19.6 million in rural development grants from USDA. Liberty County will receive $3.6 million for a wastewater collection treatment center and an East Texas electric cooperative is getting $16 million in electric loan guarantees.

Veneman singled out Ranchers’ Lamb of Texas as just one of the remarkable success stories for a rural community.

"Whether it’s Ranchers’ Lamb, the Dakota Pasta Growers in North Dakota or U.S. Premium Beef, these are great examples of the ingenuity of our farmers and ranchers in understanding how they need to come together to get more value out of the food chain. It just shows that we have producers in the U.S. who have more ingenuity than any other place in the world.

"We need to do more programs like the ‘Go Texan’ program so that consumers can make that connection of where their food and clothing comes from."

There was some discussion on Senator Johnson’s amendment to the farm bill regarding packer ownership and the potential negative impact it will have on alliances and cooperative arrangements specifically designed to create more value for agricultural products.

"We would hope that you would express our concerns to the senator regarding this issue," said Richard McDonald, Texas Cattle Feeders Association executive director. "What this amendment will do is take away our ability to develop these kinds of alliances."

Veneman was well aware of the issue.

"It’s interesting to come to Texas and hear this side, because we’re hearing from folks in Iowa and Colorado who are very supportive of this amendment," Veneman said. "There is a huge split in the agriculture community itself on this issue. It’s a very contentious issue. I would hope that you would talk to some of your counterparts in other parts of the country and tell them what it's going to do to your businesses.

"I think it will probably stay in the Senate bill and be addressed in Conference," she continued, "but you have two top Texas guys on the House side, so they will have to make your case."

"I think it is unfortunate that government gets in the way of business making progress," Veneman added, "and that’s the case that needs to be made."

A cotton producer from Lubbock voiced concern about commodity prices being well below the cost of production.

"You talk about the need to develop new markets, but when and where are they coming from and how do we compete with these new markets when our production costs are much higher and when the dollar is so strong?

"The strength of the currency has been an issue, no doubt about it," Veneman said, "but I’m not sure how we fix that for agriculture when it's a broader economic issue.
"One of the things we have to recognize when we talk about trade is the fact that we do rely on export markets. We export about 40 percent of the cotton we produce. We export 50 percent of the wheat we produce. We can’t forget how dependent we already are on trade. Agriculture will be a loser if we retreat on trade now," she warned.
"Where we’re going to see growth in the future is in countries that have emerging middle classes. One of the first things people do when they get more money is they buy more food. They improve their diets. Countries like China and some in South America — these are the markets we need to go after."
She used Canada as a prime example of what can happen in regard to free trade.

"The U.S. has been talking about free trade with Canada, and while we were talking about it Canada entered into a free trade agreement with other countries, and now because they have lower tariffs Canada is getting new markets for wheat and potatoes, markets that we once had. They’re taking away market share from us because they entered into an agreement.

"I think we in agriculture have to really look not only at what we have to gain, but what we have to lose if we’re not proactive in these trade agreements."

A Central Texas wheat producer brought up concerns he has regarding the karnal bunt infestation.

"The U.S. is the one who made karnal bunt the issue that it is today, and that’s because we said no tolerance until we ourselves got it," Veneman explained. "The countries that have this non-tolerance policy regarding karnal bunt are only following the lead of the U.S."

The Rio Grande-Mexican water dispute was brought up on two separate occasions. One Rio Grande vegetable producer told the secretary that he would be out of irrigation water by the middle of May.

"Commissioner Combs and I have talked about this issue several times, and it’s not an issue that USDA has jurisdiction over," she told listeners, "but we’ve visited about it several times. We’ll continue to make the case in Washington because we know how big an issue it is in Texas."

That same South Texas producer also voiced concern about vegetable production going south because U.S. producers can no longer compete, primarily because of the labor cost difference.

"We now have a labor department that is much more willing to understand the labor issues of agriculture," Veneman assured the producer.

Veneman concluded by saying that she is optimistic about the future of agriculture.

"I understand that farmers and ranchers around the country have had a tough time. That's why we're pushing to get a farm bill implemented as quickly as possible.

"I continue to have a great amount of faith in U.S. agriculture. We are the best and most productive farmers and ranchers in the world."