Arlington, Virginia
February 20, 2003

Announces Risk Management Initiative to Ensure Strong Programs to Assist the Nation's Farmers and Ranchers

US Agriculture Secretary Ann M. Veneman presented the keynote address at the opening of the 79th Annual Agricultural Outlook Forum, where she outlined some key priorities for the food and agriculture sector to help America's farmers and ranchers better compete in the 21st Century.

"Our world is in constant change, and so is the world of agriculture. When you examine where agriculture has come in a relatively short time, the pace of that change is remarkable," said Veneman. "But some issues that have confronted America's farm sector are still challenges today and will continue to be so in the coming years."

Veneman said that as agriculture looks to the future, several critical areas are important to examine closely to help shape the future of the industry:

• Applying technology to its fullest potential, advancing alternative uses for agricultural products and adopting a forward-looking regulatory system that ensures the integrity of technology advancements in food and agriculture;
• Strengthening the nation's food safety systems and ensuring the protection of the food supply against potential bioterrorist threats;
• Improving and expanding risk management tools for producers to better prepare the agriculture sector when it faces difficult and challenging times; and
• Continuing to expand and open new international markets and working harder to educate all involved about the perils to agriculture if progress is not made in this area.

The following are excerpts from Veneman's remarks on some of the key areas of focus in the coming years:

Technology and Biotechnology

"We are already seeing the benefits of crop biotechnology, and researchers are making incredible inroads into new uses for biotech crops and animals. As scientists push back the frontiers of biotechnology, government regulators are greeted with enormous challenges. Failure to regulate effectively could undermine consumer confidence, cost farmers valuable markets -- both domestic and export -- and delay the enormous public and private benefits that can be reaped from applying biotechnology to food and nonfood uses."

Veneman announced that she has formed an interagency team and directed the group to thoroughly review current regulations pertaining to all aspects of biotechnology, particularly those that may be required for new pharmaceutical and industrial crops. 

A top priority of the group is to strengthen coordination with FDA and EPA to ensure there are no gaps in the regulatory infrastructure. Veneman also said later this year she is convening an international science and technology conference to bring agriculture, environment and science ministers together from around the world to discuss and showcase agriculture-related technologies. The conference will be held June 22-25 in Sacramento, California.

Delivering Safe Food

"Competing successfully in the future also hinges on the safety of our food supply. The President shares this belief, and for this reason, has proposed record funding for meat and poultry food safety programs as well as funding increases to strengthen agricultural protection systems. In fact, USDA's food safety budget, if approved by the Congress, will reflect a 20 percent increase since this Administration has been in office. This is good progress, but food safety is also about science and utilizing that science to develop better policies and stronger systems to protect the food supply and consumers."

Veneman said that the USDA has declared a "war on pathogens." Headed by Food Safety Under Secretary Dr. Elsa Murano, USDA is examining current policies, investing in new research and technology and more advanced training programs to ensure our programs meet the challenges of the new Century. Veneman also said a close reexamination of the nation's agricultural infrastructure programs -- from farm to table -- is necessary to ensure the continued protection of the food supply from potential bioterrorist threats. The Secretary said that in the future, these programs cannot be simply looked at on a year-by-year basis. Funding priorities should be part of America's permanent infrastructure -- part of long-term policy planning and funding -- and the agriculture community should become more proactive in helping to make sure they become part of mandatory spending in future years.

Managing Risks On the Farm

Another key to success in the 21st Century is having effective, market- based risk management tools for producers. Veneman said that today, the foundation of the nation's risk management program is crop insurance. Following passage of the Agricultural Risk Protection Act of 2000, USDA implemented program reforms that spurred participation. Today, nearly 80 percent of eligible acreage is covered, compared with only 69 percent in 1998. Over 50 percent of the insured acreage is now insured at a 70 percent or higher level of coverage, compared with only 9 percent in 1998.

"Despite such progress, we need to strengthen our crop insurance program and improve risk management tools, generally. Our goals are to ensure widely available and effective risk management tools for our diverse farm sector, for farmers and stakeholders to be well informed, that the delivery system is fair and effective, the programs are operated with integrity, and that we excel at service to the nation's producers."

To achieve these objectives, the Secretary has asked the Risk Management Agency to undertake a major initiative in 2003 to identify the underserved producers and closely examine the regions, commodities and risks and then prioritize the development of new products to fill the gaps identified.

Veneman said priorities of this initiative include: examining the need to serve the livestock industry, including forage and range coverage; addressing concerns with coverage in regions facing multiyear droughts; simplifying and improving the effectiveness of various insurance products; and reviewing various RMA authorities to ensure the soundness of the delivery system and effective oversight of the insurance industry.

The Secretary also announced an effort to make crop insurance more affordable and encourage smaller and specialty crop producers in underserved states to try new insurance products. RMA this week is making available up to $18 million to provide financial assistance in 15 states that have been historically underserved by the Federal Crop Insurance program.

Opening Global Markets Through Trade and Development

"Another component that will help ensure our competitiveness in the 21st Century is to maintain and increase access to international markets, enhance worldwide economic development, and stimulate world prosperity."

The Secretary said that trade and trade agreements have brought significant benefits to U.S. agriculture. For example, U.S. exports to its NAFTA partners have grown 76 percent during the past 10 years, while exports to the rest of the world grew 12 percent. Veneman said that this year will be a critical one for advancing the U.S. trade agenda with WTO negotiations entering a crucial phase, while negotiations continue on creation of a Free Trade Area for the Americas (FTAA) and other bilateral
agreements.

Veneman concluded her remarks by saying, "Competing in the 21st Century means above all that we must be prepared to address the challenges and take advantage of the opportunities in the ever-changing marketplace. Our ability to take advantage of opportunities on a number of fronts will determine whether we reap the benefits of the 21st Century marketplace."

For a complete transcript of the Secretary's remarks, and other activities and events as part of the 79th Annual Agricultural Outlook Forum, "Competing in the 21st Century," please visit www.usda.gov.