Statement of Gerald Tumbleson, Corn, Soybean, and Hog Farmer,
and Director, Minnesota Corn Growers Association, Sherburn, Minnesota

Testimony Before the Subcommittee on Trade
of the House Committee on Ways and Means

Field Hearing in Bloomington, Minnesota, on the
Benefits of Trade to the Medical Technology and Agriculture Sectors

May 14, 2001

Mr. Chairman, Members of the Subcommittee.

Good afternoon. My name is Gerald Tumbleson. I am a farmer from Southwestern Minnesota, serving as a director of the Minnesota Corn Growers Associations. I farm with my wife, two of our sons and my brother, and together we grow corn, soybeans, and hogs.

Your roles as policy leaders and our roles as ag leaders require us to be visionary, peering into the future to see what lies ahead for those we serve. The long view of agriculture finds a world with a growing population and growing demand for energy of all types. Agriculture will be a player in this growth. Middle America can be a prosperous place if we capture the full value of the raw commodities we produce. Corn, for example, is a complex package of valuable chemical building blocks, with potential to help in meeting our energy, fiber, plastic, and nutritional needs. Depleting hydro-carbon sources, coupled with growth in demand for fuels and chemical feedstocks, indicate that to continue our strong economic growth we must begin to incorporate renewables. We refer to this as the "carbohydrate economy". When we capture the sun's energy through the 400-million-acre solar panel of cropland across this country, then convert it efficiently into more valuable meats, fuels, feed products- anything with a higher value- it benefits many sectors of the U.S. economy. These renewable resources will not directly compete with petrochemical resources, but will complement them and help meet the incremental growth in demand. This "carbohydrate economy" is sustainable, environmentally friendly, and helps reduce our reliance on imported oil and the resulting trade imbalances.

Meeting the needs of our foreign customers will be increasingly important in the future. Trade agreements around the world are moving away from protectionism and artificial trade barriers. Trade agreements at their best allow the economies of both trading partners to grow. For example, NAFTA has increased the level of trade between the United States, Canada and Mexico, opening these markets to American goods. This in turn provides Americans with greater access to products from Mexico and Canada. As this North American economy grows, demand for more and higher valued products will grow as well.

Unfortunately, the United States has not been involved in the vast majority of free trade agreements. Of the 130 or so agreements reported to the WTO since 1990, the U.S. has been involved in only two, with a third expected to be in place soon. This hampers the efforts of our agricultural producers to access much of the world market.

The Peoples Republic of China is home to more than one-fifth of the world's population. Direct access to this large market is vitally important to agricultural producers. The U.S. has been a residual supplier to China, but to develop consistent demand we need to develop a normal trading relationship with China. The economies of both China and the U.S. will be enhanced by normalization of trade.

The reduction of trade distorting agricultural subsidies worldwide is an objective of the WTO. As farmers, we want to grow the crops that are in demand and respond to market forces. The American farmer is an efficient producer and sets the standard in the production of food, energy, and fiber. We will succeed because in the absence of artificial trade barriers, over time, resources will be allocated to their best use. However, we also recognize that a minimum level of support is required to stabilize our rural economies in times of depressed markets. This baseline of support assures that until free trade is the norm, our producers will not be forced out of business by production distorting tariffs and subsidies.

As the global economy grows, trading partners need assistance to develop their economies so that their people can afford our goods. The U.S. has the ability and responsibility to assist developing countries in improving their incomes, diets, and creating markets for our products.

This is especially important as we attempt to export higher valued products.

Trading partners also need the assurance that the availability of basic goods such as food and medicine will not be affected by sanctions. Disruptions in trade harm our reputation as a reliable supplier and represent a lost opportunity for our economy.

The lack of a nimble trade negotiating authority limits our ability to access foreign markets, increase exports and investment overseas, and sustain the dynamic performance of our economy. Trade promotion authority allows quick response to often fleeting opportunities, yet gives Congress authority to vote the negotiated agreement up or down. This is important to agriculture because negotiations that drag on can lead to missed opportunities. Trade promotion authority will reinforce our commitment to the pursuit of free trade.

Differing attitudes toward biotechnology also contribute to trade inequities. We believe that new products should be evaluated through sound science by the appropriate regulatory agencies. We must not allow the use of biotech acceptance as an artificial trade barrier. We recognize the consumer's right of choice, but expect that education and information will lead to greater acceptance of this new technology. In the meantime, international harmonization of standards for biotech-enhanced crops would provide direction for farmers around the world.

Agriculture makes a positive contribution to our balance of trade, and that positive value will grow in the future. Improvements in genetics and cultural practices will bring continued increases in crop yields while also protecting the environment. This growing supply of raw commodities will enable growth in value-added processing and the sales of both processed goods and raw grains, to both domestic and foreign customers. While domestic food and energy consumption provides the base demand American agriculture is built around, Minnesota farmers depend on the continued growth of trade opportunities throughout the world for future prosperity.