A34-Uncaster Farming, Saturday, October 19,1985
ST LOUIS The National
Corn Growers Association (NCGA)
is extremely disappointed and
frustrated over the guidelines and
regulations that the U.S Depart
ment of Agriculture has framed in
attempting to implement and
operate the Export Enhancement
Program,” says George Anselm,
NCGA vice president for govern
ment relations from Taylorville,
Illinois.
"The Export Enhancement
Program-commonly called the
Export PIK Program-has two
billion dollars of Commodity
Credit Corporation (CCC) owned
Export PIK plan criticized
WASHINGTON - U.S. Rep.
Berkley Bedell, D-lowa, said that
the aim of the export bonus
program should be to increase
grain sales, and he criticized the
Agriculture Department for not
using the program to sell more
gram to the Soviet Union, or to
improve our competitive position
against Brazil and Argentina.
“The question is are we going to
compete,” said Bedell, who is
chairman of the House Agriculture
Subcommittee on Department
Operations, Research and Foreign
Agriculture that was holding its
second day of hearings to in
vestigate the Export Enhancement
Program, also known as Export
PIK (Payment-In-Kind).
“Witnesses have told my sub
committee that we are an
tagonizing our bigger customers
because we won’t give them the
same special prices we are of
fering some customers. The
Department has also decided that
we’re not going to use the program
to compete with Argentina and
Brazil, two of our biggest com
petitors ”
Testifying before the sub
committee today was Under
Secretary Daniel Amstutz of the
Agriculture Department and
Deputy Assistant Secretary Denis
Lamb of the State Department.
“I was very dissatisfied with Mr.
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Corn growers upset with export plan
commodities to use over the next
three years This could increase
U.S agricultural exports by
meeting foreign competitiveness
and countering unfair in
ternational trade practices," says
Anselm But restrictive criteria
for the program may prevent it
from dealing adequately with the
enormous and growing inventory
of agricultural commodities
According to USDA, the
criteria for the program are.
• sale must result in
ditionahty to the world
• sale must be positive to the
U.S. economy
Amstutz’s answers to the sub
committee’s questions,” Bedell
said. “There are serious problems
with the program. As it’s designed
now, it’s simply not working.
USDA’s targeted approach is doing
us more harm than good.”
UGREAT
/IFT
OR
)AD
USE
MJR
ISTMAS
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SALE REG.
$145 $245
160 260
180 205
240 320
28 0 360
280 300
3 1 0 390
340 46S
460 615
330
360'
400
440
• sale must be commercial
• overall program must be
budget neutral
• sale must coincide with overall
international trade policy of the
U S and supportive of the strategy
in anticipation of the upcoming
multilateral rouncl of international
trade negotiations
• sale may be part of a commercial
credit package to a particular
country
• and the same must have U S.
Government interagency
clearance
ad-
'We are even stronger m our
conviction that the restrictive
criteria" for the Export Enhan
cement Program may not only
doom any possibility of success
with the program; rather, the
program itself may well jeopar
dize various U.S. grain export
opportunities to other markets.
Wheat is the only bonus com
modity which has been included in
the program. Plus there appears
only one criteria USDA officials
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arc using to target foreign
customers tor the program-whirh
is simply to offset the highly
subsidized export price of wheat
from the European Economic
Community (EEC 1 to several
North African wheat import
markets. Only Eg\ pt has pur
chased U.S. wheat under this
program and the EEC has simply
increased its export subsidies to be
more competitive than U.S. wheat
under the Export Enhancement
Program.
The Soviet Union, under the
bilateral U.S.-USSR long term
grain agreement, is obligated to
purchase a minimum of 147 million
bushels of wheat and 157 million
bushels of com each year. The
terms of the agreement specify
U.S. wheat and corn will be offered
to the Soviet Union at prevailing
and competitive international
price levels. The export price at
which U.S. wheat is offered under
the restrictive USDA Export
Enhancement Program has not
been extended to the Soviet Union
This may have been a factor in the
Soviet Union buying almost 630
million bushels of corn and
refusing to purchase the additional
40 million bushels of wheat during
the October 1, 1984 to September
30, 1985 period, since corn has not
been offered in the USDA Export
Enhancement Program.
NCGA has, and continues to
support and advocate the goal of
more broad-based, ongoing and
sustainable export enhancement
initiatives," says Anselm. We
have serious reservations about
the restrictive and narrow criteria
established by USDA officials in
development and attempting to
implement the USDA Export
Enhancement Program. In ad
dition, we will continue to have
NCGA Chairman Varel Bade}
serve on the USDA advisor}
committee for this program to
work toward achieving our goal for
such export enhancement
initiatives
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