§5201 Findings

Summary

Congress says U.S. farm exports fell from $43,800,000,000 in 1981 to $27,900,000,000 in 1987 — a drop of more than 36 percent. The United States lost about 20 percent of its world market share in the last six years. For the first time in 15 years, monthly farm trade showed deficits in 1986. Losing $1,000,000,000 in exports costs about 35,000 farm jobs and 60,000 nonfarm jobs, and this threatens family farms and rural towns. Causes include new exporting countries, new farm technologies, more export subsidies, trade barriers, slower world food demand in the 1980s because of currency and debt problems, and big surplus crops after good weather. To help, Congress says increasing exports and prices is key to farm income. All U.S. export programs must be used quickly, including programs under the Food for Peace Act (7 U.S.C. 1691 et seq.), the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), and section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431). The Secretary of Agriculture should use authorities under section 411 of the Food for Peace Act (7 U.S.C. 1707a) and the other programs to offer intermediate credit and help build facilities in importing countries to improve handling, marketing, processing, storage, and distribution and to raise livestock production so demand for U.S. feed grains grows. Food aid and export help raise incomes and food demand in developing countries. Private charities and cooperatives are important partners, and when they use food aid in sales or barter it helps provide health care, credit, development tools, and the local infrastructure needed to grow markets for U.S. farm goods.