29 



unmatchable resources and our abilities to that mission. Thank you 

 very much. 



[The prepared statement of Ms. Brookins appears at the conclu- 

 sion of the hearing.] 



Mr. Penny. Thank you. Next, Mr. Bovee. 



STATEMENT OF EUGENE L. BOVEE, SENIOR VICE PRESIDENT 

 AND SENIOR CREDIT AND ADMINISTRATD7E OFFICER, 

 INTERNATIONAL BANKING GROUP, CO-BANK— NATIONAL 

 BANK FOR COOPERATD7ES 



Mr. Bovee. Mr. Chairman and members of the subcommittee, 

 my name is Gene Bovee. I am senior vice president in CoBank's 

 International Banking Group. CoBank is part of the Farm Credit 

 System and provides financial services to farmer-owned coopera- 

 tives, rural utility systems, and facilitates the export of U.S. agri- 

 cultural products. With $14 billion in assets and customers doing 

 business throughout rural America, we are keenly interested in 

 Federal policy issues that affect agriculture, agricultural exports 

 and rural communities. 



I am pleased and honored to have the opportunity to testify be- 

 fore you today on long-term trade strategy and export policies. We 

 are all affected by the changes taking place in the new global econ- 

 omy. Our challenge is to find ways to help American agriculture 

 and rural communities better compete therein. 



We believe the U.S. Government needs to develop sound, eco- 

 nomically viable strategies for maintaining and developing new ex- 

 port markets over the long term. Key components of this strategy 

 must involve marketing and financing. 



It is important that exporters, financial institutions, the USDA 

 and other interested parties work together to develop the means to 

 participate in this growing market. Agriculture is an obvious area 

 in which the United States can compete globally and contribute to 

 a healthy U.S. trade balance. 



In addition, and perhaps more importantly, agricultural exports 

 are critical to the health of our farming sector and rural America. 

 We urge the administration and Congress not to underestimate the 

 importance of expanded foreign markets for our farm products and 

 to continue to support commercial programs such as GSM, 

 Eximbank, and Public Law 480 and to work to make them more 

 efficient. It is important that export finance and the promotion of 

 U.S. exports not be seen as being contrary to present initiatives for 

 free trade. 



Such programs can support and facilitate free trade, particularly 

 when done on commercial terms. We at CoBank believe the key to 

 many U.S. agricultural products remaining competitive in world 

 markets will continue to be the successful implementation of the 

 export credit guarantee programs, GSM-102 and GSM-103. The 

 purpose of these programs should be purely and simply to increase 

 the amount of agricultural products exported from the United 

 States. 



GSM markets are changing dramatically, moving from public to 

 private sector. It is therefore necessary to look at ways to which 

 the CCC's export credit guarantee programs may be amended or 

 complemented to assure significant exports in the future. These 



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