PROPOSED REAUTHORIZATION OF THE FOOD AND

AGRICULTURE ACT OF 1977

THURSDAY, APRIL 16, 1981

U.S. SENATE,

COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY,

Columbus, Miss.

The committee met, pursuant to notice, at 9 a.m., in the Golden Triangle Vocational-Technical Center, Hon. Thad Cochran, presiding.

Present: Senator Cochran.

STATEMENT OF HON. THAD COCHRAN, A U.S. SENATOR FROM

MISSISSIPPI

Senator COCHRAN. I would like to ask the hearing to come to order so we can begin on time. I know that this is a difficult time for farmers and many of you to come out to help us conduct these hearings and make input into the legislative process as we go about drafting a new farm bill. In behalf of the Senate Agriculture Committee, I want to thank each of you and welcome you to this field hearing that is being conducted under the authority of the Senate Agriculture Committee, chaired by Senator Jesse Helms of North Carolina. We have been asked to talk with farmers and others who are interested in the content of 1981 farm legislation, to get local input into what should be contained in this new bill.

As you know, in September of this year the 1977 act will expire. We are going to be reviewing commodity programs, including cotton, rice, soybeans, wheat, feed grains, our dairy program, which is the subject of a separate title in the farm bill, and the Public Law 480 program which provides assistance for marketing agricultural products in foreign countries. The food stamp program is also a title of the farm bill. We are having hearings in Washington, as well as around the country, to try to identify needs and interests at the local level in all these areas.

The primary reason for Government involvement in agriculture is the importance of an adequate food supply. That is a human necessity and essential to our national well-being. To provide an adequate supply of food and fiber on a sustained basis requires an economically healthy agricultural sector. So, one thing we want to focus on today is what should the Government be doing to help assure the health, on a long-term basis, of our agricultural sector. I am very interested in seeing personally that the needs and interests of southern farmers are highlighted and recognized in this legislation that is being written. If we didn't have Government support

programs in agriculture, we would invariably have very wide swings. of supplies and prices. There would be shortages and extremely high prices followed by surpluses and extremely low prices, creating a boom and bust type cycle that would not be in the best interest of agriculture.

So, one of the missions of the committee this year is to recommend to Congress exactly how we can even out these ups and downs in the economy as it relates to agriculture. We have some serious problems facing agriculture; last year we had the lowest net farm income since the 1930's. And today agriculture has the highest debt to income ratio in history.

We approach the work of writing this new farm bill fully aware of the difficulties that we face and the immensity of the challenge that this presents to us. But even though there are some problems, there are some great opportunities ahead in my opinion, too. According to figures I have seen recently, world population is increasing at about 70 million persons annually. This means that by the end of this decade, we will have added to the world population the equivalent of the population of the country of India. That is an obvious great demand that will be present over the next 10 years for increased food supplies. If we can increase our productivity, manage our soil and water resources in a sensible and prudent way, and make the appropriate investments in research to improve our technology as we go through the decade of the eighties, then American agriculture and the United States stand to benefit greatly because of this obvious increase in demand for foodstuffs and agricultural commodities that America has such a great capacity to produce.

I am pleased that we have such a fine group of people who have agreed to be with us this morning to testify and help us begin this day of hearings. I might add that tomorrow we are going to Memphis and have hearings where we will hear from some of the heads of farm organizations such as the Farm Bureau and the American Agricultural Movement. In addition, we will be hearing from farmers from Missouri, Tennessee, Texas, Arkansas, as well as Mississippi.

At the beginning of this hearing, I want to mention that our commissioner of agriculture in Mississippi, Jim Buck Ross, has submitted a very fine statement' which we want to make a part of the record. Commissioner Ross was planning to be here today. Some of you may realize that he is very active in the National Association of Commissioners of Agriculture and has been taking a lead role in organizing an agricultural trade show that will be in Atlanta in a couple of years. Today he had to go to Atlanta, on very quick notice, as a part of the effort to have that located here in the South 2 years from now. We have been working with him on that project. And we are very optimistic about its success and the importance that will have for us here in the South.

Commissioner Ross asked Burton Hosch to be here today as his representative, and I understand he got up at 4 o'clock in the morning to get here. We appreciate that very much. Mr. Hosch, would you stand up and be recognized

Mr. HosCH. Thank you.

1 See p. 326 for the statement of Commissioner Ross.

Senator COCHRAN. Thank you for coming. We have the statement. Mr. Hoscн. I have got another one.

Senator COCHRAN. You have got two statements-double duty. We will make this a part of the record and we appreciate you being here.

Mr. Hoscн. That goes with the catfish farming, the second one. Senator COCHRAN. Thank you very much. We are also very happy that Senator Stennis has asked me to convey his good wishes and regards to all who are here and to include as part of the record a statement from him concerning the hearing today. We will make Senator Stennis' statement a part of the record as well.1

Congressman David Bowen also asked me to convey his good wishes to each of you. He has his No. 1 representative, Billy Stacy, here with us today, whose office is located nearby at the Golden Triangle Airport. A good friend and a real hard worker, he helps get in there and pitch for Mississippi's interests. Billy Stacy, we are glad to have you here today. Billy, thank you.

Our first witnesses will testify in a panel. Would the four witnesses who will testify about crops and livestock come up together. We have Larry Blocker from Oktibbeha County; Mike Mask from Pontotoc and Lee Counties, and he's got some land in Monroe. He is sort of a farmer at large. R. O. Buckley is the executive vice president of the Mississippi Cattlemen's Association. And Warren Megehee, a dairy farmer from Noxubee County. We would ask the four of you if you would to come forward and take these seats here at the table as a panel.

While they are coming up, I want to express our appreciation to Aaron Langston, who is the administrator of the Vocational Technical Center here for making the facilities available and helping us set up for the hearings today. This is a very convenient location for us here in the east Mississippi, prairie area, to get together to talk about the importance of agriculture and what the recommendations would be from this section of our State with regard to farm legislation. We appreciate so much all of these people here at the center for making us welcome and in helping us with the hearing. Let's start off. We have Larry Blocker, as I mentioned, from here in Oktibbeha County. He farms soybeans, and is a pork producer. Larry, why don't you start off?

We have got statements that we asked the witnesses to prepare. We do have a time limitation, so we hope you can make a brief statement. Then we will have questions and answers and explore some of the things that you may have touched on in your prepared statement. So, Larry, why don't you lead off for us.

Mr. BLOCKER. OK. Mr. Chairman, we appreciate the opportunity to come and discuss our views about some of agriculture's problems. I am going to talk a little bit about the swine industry and a little bit about the soybean industry. Bear with me; I am new at this. This is the first time I have done this. And now you put me first. Senator COCHRAN. Well, that is all right. I am a new chairman, too. So, we will learn together.

1 See p. 325 for the statement of Senator Stennis.

STATEMENT OF LARRY BLOCKER, STARKVILLE, MISS.

Mr. BLOCKER. I will start off with soybeans first. Soybeans produced in the United States currently provide the world with the most economical source of livestock and poultry protein food, as well as vegetable oil and edible protein for direct human consumption. Soybeans in 1980 were the Nation's No. 1 cash crop, No. 1 cash export, and second largest crop in acreage. Despite a yield-robbing 1980 drought, American soybean growers produced almost a 2 million bushel crop, twice the size of the 1968 soybean crop. In 1980 we exported $8.6 million worth of soybeans, soybean meal, and soybean oil. Every other row of soybeans produced in the United States is sold overseas. Soybean exports represent 21 percent of the total agricultural-U.S. agricultural-exports and 4 percent of all U.S. exports. Soybeans sales abroad earn U.S. foreign exchange and contribute toward our balance of payments. Soybeans have no target price; therefore, no Federal funds are used for deficiency payments to soybean farmers. Rather than relying on Federal handouts, soybean growers depend on the market system for balancing supply with demand. As a result, all the soybean growers have traditionally asked of the Federal Government is funding of agricultural research and foreign market development export promotion.

Soybean producers appreciate past Federal recognition of the need for aggressive agricultural research and overseas market expansion. Because of their continued importance, we are confining our comments on the 1982 USDA budget to agricultural research and market development, Agricultural research and foreign market development represent long term investments that increase productivity and pay dividends to farmers, consumers, the U.S. balance of trade, and the U.S. economy. We are living today on yesterday's investments. Tomorrow's productivity depends on today's allocation for market development and agricultural research.

Research appropriations have helped soybean growers double their U.S. soybean crop. Research has helped improve the efficiency of soybean production, processing, utilization, and handling.

The export promotion programs funded through our market development appropriations have become the model of the world. Foreign demand for U.S. soybeans has jumped 763 percent since 1965. We now export more soybeans than we grew 15 years ago. U.S. soybean farmers back up our commitment to research and market development with an investment of our own funds. In 1981 soybean farmers will invest $1.43 for every $1 the USDA foreign agricultural service provides for market development. In addition to this $5 million commitment, U.S. soybean growers will invest more than $3 million in soybean research. Under research needs, many agricultural economists say the world demand for U.S. soybeans will double in the next 9 years as a result of the increases in world demand and raised standards of living. We are not recommending new soybean research efforts. The following areas should be given top priority when funding allocations are developed:

First, soybean production research we strongly urge Congress to increase emphasis on basic and applied soybean production research. Expanded support for basic research is particularly