DATE=7/17/98
TYPE=BACKGROUND REPORT
NUMBER=5-40955
TITLE= FARM POLICY / FOREIGN POLICY
BYLINE= PAULA WOLFSON
DATELINE= CAPITOL HILL
CONTENT=
VOICED AT: 

INTRO:   WHEN AN AMERICAN FARMER HARVESTS HIS CROPS, HE DOES SO 
WITH  THE KNOWLEDGE MUCH OF THE FOOD HE RAISES WILL END UP HALF A
WORLD AWAY.  EXPORTS ARE ESSENTIAL TO THE AGRICULTURAL SECTOR IN 
THE UNITED STATES.   AND AS CONGRESSIONAL CORRESPONDENT PAULA 
WOLFSON REPORTS, THE LINKS BETWEEN FARM POLICY AND FOREIGN POLICY
ARE GROWING STRONGER ALL THE TIME.

TEXT:     THE AMERICAN ECONOMY IS BOOMING.  THE ONE GLARING 
EXCEPTION IS THE FARM SECTOR.

THE SEVERITY OF THE SITUATION VARIES FROM REGION TO REGION. BUT 
IN PLACES LIKE NORTH DAKOTA, THEY ARE TALKING ABOUT A FARM 
CRISIS.

                       ///POMEROY ACT////

         UNFORTUNATELY, THE AREA I REPRESENT HAS BEEN LITERALLY 
         "GROUND ZERO" (THE HARDEST HIT AREA) FOR THE AGRICULTURE
         DISASTER OF 1998.

                         ////END ACT///

DEMOCRAT EARL POMEROY HOLDS NORTH DAKOTA'S LONE SEAT IN THE HOUSE
OF REPRESENTATIVES.  HIS STATE IS REELING FROM A COMBINATION OF 
BAD WEATHER, LOW COMMODITY PRICES AND SHAKY MARKETS ABROAD.

                       ////POMEROY ACT///

         WITHOUT QUESTION, THE FORTUNES OF NORTH DAKOTA 
         AGRICULTURE AND UNITED  STATES AGRICULTURE ARE GOING TO 
         TURN ON OUR ABILITY TO EXPORT OUR PRODUCT.

                          ///END ACT///

THE AGRICULTURE DEPARTMENT PREDICTS FARM EXPORTS NATIONWIDE WILL 
DROP TO 55 BILLION DOLLARS IN FISCAL 1998, DOWN FROM A PEAK OF 60
BILLION JUST TWO YEARS AGO.  THE PRESIDENT OF AMERICA'S LARGEST 
FARM ORGANIZATION SAYS HIS MEMBERS ARE WORRIED.

                        ///KLEKNER ACT///

         WE REALLY DO NOW LIVE AND DIE WITH THOSE FOREIGN 
         MARKETS.

                         ////END ACT///

DEAN KLEKNER -- AN IOWA SOYBEAN FARMER --  HEADS THE AMERICAN 
FARM BUREAU.

                       ////KLEKNER ACT///

         NEARLY A THIRD OF WHAT WE FARMERS PRODUCE IS EXPORTED.  
         THAT IS NOT  TRUE OF EVERY CROP AND EVERY COMMODITY.  
         BUT WHEN YOU PUT EVERYTHING TOGETHER -- FRUITS AND 
         VEGETABLES AND ALL THE MEATS AND ALL THE GRAINS AND 
         EVERYTHING -- 30 PERCENT OR MORE IS EXPORTED.

                         ////END ACT////

BOOSTING AND PRESERVING EXPORT MARKETS FOR AMERICAN FARMERS HAS  
BECOME A POPULAR CAUSE IN THE UNITED STATES CONGRESS.   LAWMAKERS
HAVE VOTED TO EXEMPT AGRICULTURAL EXPORTS FROM SANCTIONS IMPOSED 
ON  INDIA AND PAKISTAN.   THE CHAIRMAN OF THE HOUSE AGRICULTURE 
COMMITTEE -- REPUBLICAN BOB SMITH OF OREGON -- PROMISES MORE 
ACTION IN THE WEEKS TO COME.

                        ////SMITH ACT///

         WE MUST IMPROVE INTERNATIONAL TRADE BY PASSING I-M-F, BY
         PASSING FAST TRACK, BY -- AS WE ALREADY HAVE -- LIFTING 
         SANCTIONS ON PAKISTAN AND AS WELL, BY CREATING NORMAL 
         (TRADE) RELATIONS WITH CHINA.

                         ////END ACT////

MOST OF THESE MEASURES HAVE PROVEN CONTROVERSIAL IN THE PAST.  
THE  PRESIDENT'S BID FOR "FAST TRACK" -- OR ENHANCED TRADE 
NEGOTIATING AUTHORITY -- WAS PULLED FROM CONSIDERATION LAST YEAR 
IN THE HOUSE DUE TO LACK OF SUPPORT.   THE EFFORT TO REPLENISH 
THE INTERNATIONAL  MONETARY FUND HAS PLENTY OF CONGRESSIONAL 
CRITICS, AS DOES THE NOTION OF TRADE WITH CHINA.

BUT BY CLOAKING ALL THESE BILLS IN THE MANTLE OF HELPING AMERICAN
FARMERS, REPUBLICAN LEADERS MAY ENHANCE THEIR CHANCES OF PASSAGE.
 FARM BUREAU PRESIDENT DEAN KLEKNER SAYS POLITICAL CONSIDERATIONS
COULD ALSO BE COMING INTO PLAY.  HE SAYS HE'S NOT SURPRISED BY 
THE ELECTION YEAR EMPHASIS ON AMERICAN AGRICULTURE.

                       ////KLEKNER ACT///

         WE ARE WITHIN THREE AND A HALF MONTHS OF AN ELECTION 
         THAT'S VERY IMPORTANT TO THE CONTROL OF THE COUNTRY AND 
         EXPECT THE POLITICIANS TO PLAY THIS FOR ALL ITS WORTH 
         WHILE THEY ARE IN SESSION PRIOR TO NOVEMBER FOURTH.

                        ////END ACT/////

IN A PRESIDENTIAL ELECTION, SPARSELY POPULATED RURAL AREAS DO NOT
MAKE MUCH OF A DIFFERENCE.  BUT IN THIS YEAR'S RACE FOR CONTROL 
OF THE HOUSE OF REPRESENTATIVES THEY COULD BE IMPORTANT.  
DEMOCRATS NEED TO GAIN ONLY ELEVEN SEATS TO TAKE OVER THE 
435-SEAT HOUSE.  SEVENTEEN OF THE HARDEST FOUGHT CONTESTS ARE IN 
FARM DISTRICTS. (SIGNED)

NEB/PW/PLM

17-Jul-98 5:53 PM EDT (2153 UTC)
NNNN

Source: Voice of America
.