§5201 Findings

Summary

Congress says U.S. farm exports fell sharply from $43,800,000,000 in 1981 to $27,900,000,000 in 1987 — a drop of more than 36 percent — and that the U.S. share of the world market fell by 20 percent. For the first time in 15 years, monthly agricultural trade deficits happened in 1986. Losing $1,000,000,000 in farm exports costs about 35,000 farm jobs and 60,000 nonfarm jobs. These losses hurt family farms and rural towns. Causes include new exporting nations, new farm technology, more export subsidies, trade barriers, slower world food demand in the 1980’s because of currency and debt problems, and big surplus crops after good weather. To help farmers, the law says U.S. export programs must be used quickly, including programs under the Food for Peace Act, the Commodity Credit Corporation Charter Act, and section 416 of the Agricultural Act of 1949. The Secretary of Agriculture should use these authorities to offer intermediate credit and other help so importers can build or improve handling, marketing, processing, storage, distribution, and livestock production. Food aid and export help raise incomes in developing countries, which increases food demand. Private voluntary organizations and cooperatives are key partners, and food aid used in sales or barter by these groups also provides health care, credit, development tools, and the infrastructure that helps expand markets for U.S. agricultural goods.