will be established that will enable EPA to complete risk assessments, evaluation of pesticides affecting multiple commodities in a more timely fashion. AMS will modify existing methodologies to test meat, poultry, eggs and drinking water for pesticide residue. Export markets are of tremendous concern to our producers out there, and they are asking us to give them more information. If they are to be in a global marketplace, they need to know what is happening in that global marketplace. So for greater demand for that market news, AMS is proposing to incorporate reports from major export markets into the existing market news and information. We will also be establishing a market news and information for organic crops, which is really, we see, as a major thrust of assisting small, family-size farm operations that primarily are in the organic industry at this time. We will identify alternative marketing strategies for small and medium farmers as well and disseminate that information in a series of meetings across the Nation. And, finally, Mr. Chairman, for Animal and Plant Health Inspection Services, APHIS has a 2000 budget request of $10 million above the level appropriated for 1999, but we have made significant changes in what our priorities are for APHIS. The increased budget priorities involve $14.2 million for the detection and exclusion of pest and disease, $6.3 million for more timely and accurate surveillance information on plant and animals, including funds for emergency preparedness against acts of bio-terrorism, $3.8 million for emerging plant pest and invasive species, and $2.6 million for data gathering and risk analysis. Mr. Chairman, it is important, if we are going to be in a global marketplace, if family farmers are reliant upon that export market, and some of the reasons why we are in a situation today of low prices is because of our precipitive drop in our export marketplace. APHIS needs to take the lead to reduce those sanitaryphytosanitary barriers that are out there to open up those marketplaces for us. Simultaneously, the greatest threat that we have is for those foreign pest and disease to come into this United States. Classic swine fever, which we know is right off our shores on the Hispaniola Island could come in and continue to devastate the pork markets that we have here in the United States today. So we have to have that type of vigilance, as well as opening up those marketplaces. We recently have found a new invasive species that is coming in, something called the long-horned beetle, Asian long-horned beetle. And in New York and Chicago, this beetle is wreaking havoc with our hardwood trees. We are losing maple trees. We are going into the City of Chicago and the City of New York, and we are cutting down trees because it is the only way we know how to get rid of these invasive insects at this time. We must, Mr. Chairman, ensure that we protect our shores from these. I am very proud of what APHIS did. In a short span of 32 days, they promulgated regulations to exclude solid wood packing material from China, which was the origin of this beetle. And we have over 70-percent compliance at this time from China sending goods into the United States. Mr. Chairman, with that, I will conclude and open it for questions or to hear from the administrators. [The prepared statements and biographies of Michael Dunn, Enrique E. Figuerora, Craig A. Reed, and James R. Baker follow:] Statement by Michael Dunn Under Secretary of Agriculture March 2, 1999 Mr. Chairman and members of the Committee, I am pleased to appear before you to discuss the activities of the Marketing and Regulatory Programs of the U.S. Department of Agriculture and to present our fiscal year (FY) 2000 budget proposals. With me today are Dr. Craig Reed, Administrator of the Animal and Plant Health Inspection Service, Dr. Enrique Figueroa, Administrator of the Agricultural Marketing Service, and James Baker, Administrator of the Grain Inspection, Packers and Stockyards Administration. They have statements for the record and will answer questions regarding specific budget proposals. STRATEGIC GOALS The Marketing and Regulatory Programs contribute to the Department's three strategic goals which support the rural economy, assure food safety and sensibly manage the natural resources. Specifically, the MRP goals include: providing consumers access to safe, affordable, and high quality products and assuring producers access to fair and competitive facilitating the global marketing of U.S. agricultural products, increasing customer awareness of our services, providing efficient, entrepreneurial, and cost effective services, and creating and maintaining a diverse and highly skilled workforce. FUNDING SOURCES The Marketing and Regulatory Program activities are funded by both the taxpayers and beneficiaries of program services. On the appropriation side, we are requesting $435.4 million for salaries and expenses and $7.2 million for buildings and facilities for the Animal and Plant Health Inspection Service; $60.2 million for Marketing Services and $1.2 million for the Federal-State Marketing Improvement Program for the Agricultural Marketing Service; and $26.4 million for the Grain Inspection, Packers and Stockyards Administration. Legislation will be submitted, which if enacted would recover $28 million more in user fees. This legislation would authorize new license fees to recover the cost of administering the Packers and Stockyards (P&S) Act, additional license fees for facilities regulated under the Animal Welfare Act, additional biotechnology permit fees, and additional grain inspection fees for developing grain standards. I will use the remainder of my time to highlight the Department's budget requests for the Marketing and Regulatory Programs. GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION GIPSA's mission is carried out in two major segments of American agriculture. The strategic goal for the Packers and Stockyards Programs is to ensure open and competitive markets for livestock, meat, and poultry. GIPSA's strategic goal for the Federal Grain Inspection Service is to provide the U.S. grain market with Federal quality standards and a uniform system for applying them. The agency has both service and regulatory roles. Program Plan and Accomplishments During FY 1998, GIPSA consolidated the Packers and Stockyards headquarters activities and established three field offices for the P&S program to replace 11 offices. Resident agents will handle the most basic services and routine investigations in outlying areas. The restructuring funds provided in FY 1999 will significantly improve the Program's ability to provide financial protection and promote fair business practices and a competitive marketing environment for livestock, meat, and poultry. The new structure and the addition of economic, statistical and legal expertise to the investigative staff of the field offices significantly strengthens GIPSA's ability to investigate anticompetitive practices and provide greater flexibility and efficiency in enforcing the trade practice and payment protection sections of the Act. GIPSA's front-line staff has been increased from 72 percent to 80 percent of the P&S staffing. Financial investigations during FY 1998 resulted in $3.7 million being restored to custodial accounts established and maintained for the benefit of livestock sellers. Packer trust activities returned over $5 million to livestock sellers during the fiscal year. During FY 1998, 130 insolvent dealers and market agencies corrected or reduced their insolvencies by $10.1 million. Insolvent packers corrected or reduced their insolvencies by $1.8 million. The enforcement case against IBP, Inc., is still in litigation. It charged that IBP entered into a marketing agreement and paid preferential prices to an exclusive group of feedlots in Kansas. The case was dismissed, but upon appeal, the Judicial Officer |