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PRESIDENT CLINTON AND VICE PRESIDENT GORE:
SUPPORTING AMERICA'S FARMERS AND RURAL COMMUNITIES
"Every American has got a stake in rural America. Our
farms feed the world and us at very low real costs, at very high quality. They
also feed our sense of ourselves. They reinforce our values of hard work and
faith and family and devotion to community and the land…. We cannot truly
renew our country if we leave our family farmers behind."
-- President Bill Clinton
September 15, 1998
Responding to the Farm Crisis and Strengthening the
Safety Net
Responding to the Farm Crisis. President Clinton and Vice
President Gore are determined to assist America's farmers and ranchers who are
suffering through the third year in a row of low commodity prices and, for
many, crop and livestock losses from severe drought and flooding. The President
and Vice President have won nearly $14 billion in emergency assistance for
farmers and ranchers since passage of the Freedom to Farm Act in 1996. This
includes the strong emergency assistance package President Clinton won in 1998,
which included 40 percent more funding than the bill first passed by Congress,
which the President vetoed. This year, the President is likely to sign a $15.3
billion assistance package, the third in three years. The President and Vice
President remain concerned that Congress has not addressed the underlying
issues that exist in the wake of Freedom to Farm legislation and that more
needs to be done. [Department of Agriculture; 1998 Annual Report
of the Secretary of Agriculture]
Strengthening the Safety Net. Because the 1996 Freedom to Farm
Bill fails to sufficiently support farm family incomes when crop prices fall or
natural disasters strike, the Clinton-Gore Administration's FY 2001 budget
includes a comprehensive $11 billion package to strengthen the farm safety net
through 2002 when the next farm bill will be enacted. The proposal includes
counter-cyclical income assistance, crop insurance reform, a major conservation
program initiative (much of which extends beyond 2002), and targeted assistance
to certain segments of the farm and rural communities. [FY 2001
Budget, p. 205]
Providing Much-Needed Loan Assistance. In 1999, the Agriculture
Department experienced an unprecedented demand for farm loans and loan
guarantees. The USDA responded by providing over 37,000 loans and loan
guarantees, totaling $3.9 billion -- 11,000 loans and $1.7 billion more than in
1998. [1999 Annual Report of the Secretary of
Agriculture]
Responding to Drought Victims. Drought costs ranchers and farmers
an estimated $6-8 billion a year, more than damages caused by floods or
hurricanes. In 1999, during one of the worst droughts in U.S. history,
counties in 44 states were declared agricultural disaster areas, making
emergency loans available to tens of thousands hard-hit farmers. Virtually the
entire East Coast was declared a disaster. In May 2000, Secretary Glickman
unveiled the National Drought Policy Commission's report on the need for an
integrated, coordinated federal policy, designed to prepare for and respond to
serious drought emergencies. [1999 Annual Report of the
Secretary of Agriculture; Office of the Vice President, 5/16/00]
Expanding Access to Crop Insurance. Crop insurance is the primary
safety net for farmers following a crop loss. The Clinton-Gore Administration
reduced premiums for crop insurance by approximately 30 percent in 1999,
helping boost the number of farmers with insurance. In 1998, nearly $27 billion
in protection was provided on 181 million acres through more than 1.75 million
policies; almost double the $13.6 billion protection on the 100 million acres
insured in 1994. The Administration has proposed improvements to the crop
insurance program, including making insurance more affordable for farmers,
covering multiyear disasters and insuring certain livestock losses. The
President also signed legislation in 1998 fully funding the crop insurance
program for the next five years, giving farmers the security of knowing that
help will be there if disaster strikes. The Administration has been working
with Congress in support of an assistance package to help farmers and ranchers
weather the ongoing farm crisis. On May 25, 2000, the House and Senate passed
the $15 billion Agricultural Risk Protection Act of 2000. About $8.2 billion is
targeted for crop insurance, of which approximately $5.6 billion will go toward
reducing premiums on federally subsidized crop insurance over the next five
years. The legislation also makes a series of changes in the crop insurance
program designed to get more farmers to buy the coverage. [1999 Annual Report of the Secretary of Agriculture; USDA 1999 Success
Stories; Presidential Statement, 6/23/98]
Addressing the Pork Crisis. The Clinton-Gore Administration's
Pork Crisis Task Force, at the Agriculture Department, purchased more than 118
million pounds of pork worth nearly $127 million, to be used in Federal
nutrition programs. The Task Force expanded efforts to assist U.S. pork packers
and processors marketing their pork products through brand initiatives and
quality management system verification. The Clinton-Gore Administration has
made more than $50 million in direct cash payments to thousands of family farm
hog producers to help them cope with disastrously low hog prices.
[1999 Annual Report of the Secretary of Agriculture; White House
Press Release, 1/8/98]
Helping Cattle Producers. The Clinton-Gore Administration has
worked to help offset a surplus of cattle that has depressed prices for
ranchers, farmers, and feedlot operators. In December 1998, Vice President Gore
announced that the Agriculture Department would buy up to $20 million in U.S.
beef, to be used for the school lunch program, and to help improve prices in
the beef and livestock industry. [White House Press Release,
12/1/98]
Expanding Opportunities for America's Family
Farmers
Reaping the Benefits of Free Trade. In FY 1998 alone, American
agricultural exports totaled $53.6 billion, creating an estimated 815,000
full-time jobs. Trade-dependent agricultural jobs pay higher than average wages
and support a wide range of professions in both urban and rural communities.
Each dollar in U.S. agricultural exports creates another $1.28 in related
economic activity, generating about $122 billion of total economic activity
last year. [1999 Annual Report of the Secretary of Agriculture;
White House Fact Sheet, 12/1/99]
Opening Foreign Markets for America's Farmers. The Clinton-Gore
Administration has worked hard to open foreign markets to American agricultural
products, breaking nearly 80 barriers stifling U.S. farm trade in 1998 alone.
Since 1993, the Administration has opened markets and expanded opportunity
through NAFTA, GATT and nearly 300 other free trade agreements. In the next
round of World Trade Organization negotiations, President Clinton is determined
to work to open additional markets abroad and level the playing field for U.S.
agriculture products. [Agriculture Department; National Security
Council]
- The Clinton-Gore Administration has held successful discussions with
Canada about access for U.S. wheat, cattle, hogs, and other trade issues;
opened the Taiwanese market for pork, poultry and beef; reversed Turkey's
tariff increase on cotton; opened Argentina's market to pork; and reopened
Brazil's market for wheat. [1998 Annual Report of the Secretary
of Agriculture; White House, Office of the Press Secretary,
9/15/98]
Enforcing Our Trade Agreements. The Clinton-Gore Administration
has been aggressive in using every tool at our disposal to ensure that our
trading partners honor agreements we have made. The United States is bringing
and winning more cases in the World Trade Organization than any other country,
and over one-third of the cases we have initiated involve agriculture.
[The White House, Office of the Press Secretary,
9/15/98]
Agricultural Cooperation Agreement with China. In April 1999, the
Administration signed the Agreement on U.S.-China Agricultural Cooperation,
with China agreeing to end longstanding bans on imports of U.S. wheat, meat,
citrus and poultry. The agreement also called for China's commitment to the
application of sound science in trade issues, a key principal of the World
Trade Organization Sanitary and Phytosanitary Agreement. When this Cooperation
agreement is fully implemented, annual U.S. agricultural exports will increase
by an estimated $900 million. [1999 Annual Report of the
Secretary of Agriculture]
Historic U.S.-China Trade Agreement. In November 1999, the
Clinton-Gore Administration reached an historic trade agreement that will open
China's markets to American goods, including agricultural products, and hold
the Chinese government to international standards. The agreement will
significantly lower Chinese tariffs, and ensure fair treatment for both
American businesses in China and American workers here at home.
Supporting U.S. Agriculture Exports. In 1998, USDA expanded its
new Supplier Credit Guarantee Program, which guarantees repayments of
short-term loans that exporters have extended directly to importers for the
purchase of U.S. agricultural products. As a result, exporters registered more
than $46 million in FY 1999, a 150 percent increase over the previous year.
Agriculture Secretary Glickman reactivated the Export Enhancement Program (EEP)
to partly compensate U.S. poultry producers for markets lost in Europe. He also
announced an EEP initiative for barley, in response to the European Union's
heavily subsidized sale of barley into the U.S. market. And under the Dairy
Export Incentive Program, Secretary Glickman authorized export bonuses up to
the maximum volume and spending limits consistent with our World Trade
Organization obligations.
Record Foreign Food Aid Assistance. The U.S. provided nearly 8
million metric tons of U.S. commodities to nearly 50 countries, almost five
times last year's 1.6 million and the largest tonnage in recent years. In July
1998, President Clinton announced that the U.S. Government would purchase more
than 80 million bushels of surplus wheat from American farmers, to help lift
prices in America and ease hunger in the developing world. [1999
Annual Report of the Secretary of Agriculture; USDA Food Aid Initiative,
8/7/98]
Farmer Direct Marketing. The Farmer Direct Marketing Action Plan
led to development of a web page that provides marketing information for
small-scale farmers; links to Federal, State, university and other direct
marketing web sites; and includes a bimonthly newsletter. [1999
Annual Report of the Secretary of Agriculture]
Modernizing Agriculture Research. President Clinton signed into
law the Agriculture Research, Extension, and Education Reform Act of 1998,
which will channel an additional $120 million a year over the next 5 years to
vital investments in food and agriculture genome research, food safety and
technology, human nutrition, and agricultural biotechnology. These investments
will lead to advances in new production systems for crops and livestock. The
bill also provides $300 million for rural development and innovative
agricultural research. [Presidential Statement,
6/23/98]
Increasing Lending to Minority and Women Producers. The
Agriculture Department is strengthening programs and increasing outreach
targeted to underserved communities, including increasing its lending to
minority and women producers. In FY 1992, USDA made 961 loans worth $53.9
million to minority farmers. In FY 1999, that increased to 4,005 loans worth
$296 million. [1999 Annual Report of the Secretary of
Agriculture; Department of Agriculture]
Reaching Out to Small Scale and Underserved Producers. The USDA,
along with Southern University and A&M College, conducted a
marketing workshop in April 2000 which brought together small-scale, minority,
and disadvantaged farmers from seven mid-Southern states to discuss the
challenges and opportunities facing farmers today. Attendees learned how to
maximize economic potential through the development of effective marketing
plans and how to produce and market quality products. USDA has also held
several workshops for small firms representing a diverse cross section of small
meat, poultry, and fruit and vegetable processors and dealers to explore ways
to increase small business participation in USDA's purchase programs. In FY
1999, 31 percent of food purchased by USDA for Federal food assistance programs
was purchased from small, small disadvantaged, or women-owned businesses.
Linking Farmers with Information Anytime, Anywhere. The
Clinton-Gore Administration Department of Agriculture features an informative
web page [www.usda.gov] that allows farmers to access information on topics
ranging from applying for disaster assistance, to up-to-date rates for
commodity loans, or even the latest weather report.
Working to Provide Clear Organic Standards. In March 2000,
Secretary Glickman announced the publication of revised proposed organic
standards that detail the methods, practices, and substances that can be used
in producing and handling organic crops and livestock, as well as processed
products. It establishes clear labeling criteria and rules so consumers know
exactly what they are buying when they purchase organic food. USDA's proposal
will allow organic farmers to export products more easily, because trading
partners can more easily deal with one national standard rather than multiple
State and private standards.
Protecting U.S. Agricultural Health. In FY 1999, USDA inspectors
intercepted more than 1.7 million restricted plant materials and 288,000
meat/poultry products during agricultural quarantine inspections. These
inspections are part of USDA's Safeguarding System designed to prevent, detect,
and quickly respond to damaging agricultural pests and diseases. USDA's notable
efforts in this area include responding to plum pox in Pennsylvania, citrus
canker in Florida, and conducting accelerated activities to eradicate
pseudorabies from U.S. swine.
Combating Invasive Species. USDA's Animal and Plant Health
Inspection Service (APHIS) has launched an all-out offensive against alien
invasive species that threaten environmental resources and human health. APHIS
is working with the Centers for Disease Control and Prevention and other
Government agencies to prevent another serious outbreak of West Nile fever, a
mosquito-borne virus that caused seven deaths in New York in 1999. USDA is also
working across the country to control exotic weeds that spread and crowd out
native plants. Approximately 3 million acres-an area twice the size of
Delaware-are lost to invasive plants each year. Invasive species cost the
United States an estimated $120 billion annually.
Revitalizing Rural America
New Markets Initiative. President Clinton's New Markets
Initiative is helping to bring economic development and renewal to communities
that have not benefited from the soaring economy by prompting approximately $15
billion in new investment in urban and rural areas. Last year, Congress
provided $39.5 million of the Administration's request. In FY 2001, that
request has expanded to a total of $248 million. [Presidential
Statement, 8/5/99; White House Fact Sheet, 11/5/99]
Expanding Internet Access in Rural Communities. President
Clinton's third New Markets tour highlighted the importance of closing the
digital divide and bringing the benefits of technology to underserved
communities. High-speed Internet access is becoming as important to the
economic vitality of a community as roads and bridges are today, allowing
people to upgrade skills using distance learning and helping businesses
communicate electronically with customers and suppliers. The President's FY
2001 budget includes a new $25 million program at the Departments of Commerce
and Agriculture to accelerate private sector deployment of broadband networks
in under-served urban and rural communities, using grants and loan guarantees.
[White House Fact Sheet, 2/2/00]
Expanding Investment in Rural Areas. Spurring economic
development in distressed communities, the Clinton-Gore Administration has
created 31 Empowerment Zones and more than 100 Enterprise Communities,
including 50 rural ECs, which are creating new jobs, new opportunities and
stronger communities. This would have a dramatic effect in the areas with high
unemployment, weak economies, shortages of affordable housing and other
problems. The President won $70 million in funding for Rural and Urban
Empowerment Zones in FY 2000 -- after Congress initially provided no funding.
[National Economic Council, 11/18/99]
Supporting Economic Development. The Clinton-Gore Administration
offered $1.2 billion in grants and loans in FY 1999 to support the development
of new or expanded businesses in rural America. Of these funds, available
through the USDA's Business and Industry Guaranteed Loan Program, about $100
million are expected to fund rural cooperatives. [USDA Rural
Development Press Release, 115/99]
- On August 5, 1999, Vice President Gore announced a business
assistance package that would invest more than $132 million for the creation or
expansion of rural businesses across the United States -- an investment
estimated to create or save more than 2,600 rural jobs, most of them in areas
of high unemployment. [USDA Rural Development Press Release,
8/5/99]
Providing Housing Opportunities. The USDA Rural Development
agency works with non-profit and private sector partners to offer direct
housing loans and loan guarantees. USDA's Single Family Housing program reaches
more rural people in need than almost any other housing program. In 1999 alone,
the Clinton-Gore Administration invested $5.1 billion in rural housing through
this program, providing over 66,000 new or rehabilitated homes for low and
moderate income families -- including over 600 units for domestic farm
laborers. In a typical year, Rural Development programs enable 60,000 to 70,000
rural Americans to buy homes and help 460,000 low-income rural Americans to
rent apartments or other housing. [1999 Annual Report of the
Secretary of Agriculture]
Strengthening Rural Hospitals. To ensure that rural hospitals are
able to meet the health care needs of working families, the Clinton-Gore
Administration began the Rural Hospital Flexibility Program, which allows the
creation of a new category of rural hospitals called critical access hospitals
(CAHs). States will receive grants to develop a rural health plan, help
communities decide which hospitals should convert to CAHs and promote the
development of rural health networks that include enhanced delivery of
emergency medical services. [HHS Press Release,
9/10/99]
Increasing Access to Community Services. The Clinton-Gore
Administration invested $275 million in rural community projects such as child
and adult care facilities, hospitals and health clinics, and public safety
facilities, through the Agriculture Department. [1999 Annual
Report of the Secretary of Agriculture]
Building a Strong Infrastructure. Through the Agriculture
Department's Rural Utilities Service, rural communities can find technical
guidance and loan assistance for improving infrastructure. In 1999, the
Clinton-Gore Administration directed an additional $3.4 billion to electric,
telecommunications, water supply and waste disposal infrastructure projects in
rural communities. Two million rural residents will enjoy the benefits of
improved water or wastewater service, including 14,000 residents who received
running water in their homes for the first time. [1999 Annual
Report of the Secretary of Agriculture]
Ensuring Clean Water and Healthy Communities. The Clinton-Gore
Administration won $1.8 billion in the FY 2000 budget for the Clean Water
Action Plan, a 9 percent increase which includes funds to reduce polluted
runoff from large livestock operations. Since 1993, the Environment Protection
Agency has provided nearly $900 million in grants to combat polluted runoff.
[National Economic Council, 11/18/99]
Providing Safe Drinking Water. The Clinton-Gore Administration
has awarded over $200 million in Department of Agriculture loans and grants for
over 100 safe drinking water projects in rural areas of 40 states. USDA grants
and loans target rural communities plagued by some of the nation's worst water
quality and dependability problems.
The Conservation Reserve Enhancement Program (CREP). CREP is a new voluntary
initiative using State, Federal, and private funding to help address specific
grassroots environmental issues related to agriculture, combining the
Conservation Reserve Program with State programs. This framework allows
USDA to share costs and resources with State governments and local interests
to address specific local environmental problems in a designated target area.
Thus far, commitments total over $3.1 billion, including over $2.4 billion in
USDA funds and $722 million in non-Federal funds. Eleven states have signed
agreements; nine states have proposals submitted or agreements pending; seven
have proposals being developed; and eleven states are investigating projects
and funding. In March 1998, the Vice President announced a partnership with
the State of Illinois to restore and preserve the Illinois River. Through CREP,
this agreement provides $250 million -- $202 million from USDA and $48 million
from State and non-federal sources -- to help preserve thousands of acres along
waterways throughout the Illinois River watershed.
Growing Clean Energy Technologies. President Clinton issued an
Executive Order to coordinate federal efforts to spur the development and use
of bio-based technologies, which can convert crops, trees and other "biomass"
into a vast array of fuels and materials. The Administration has also set a
goal of tripling our use of bioenergy and bioproducts by 2010 to reduce annual
greenhouse gas emissions by up to 100 million tons a year -- the equivalent of
taking 70 million cars off the road. [White House,
8/12/99]
June 2000
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