33 



be an effort to maximize productive use of inputs and minimize 

 losses to the environment. 



Policies should encourage responsible use of land by realigning 

 incentives to reward producers for environmentally sound yet pro- 

 ductive practices. 



In the area of technology leadership, we believe this is a vastly 

 important area and it should be stressed in future policy. 



A public role is needed to finance basic research to enhance agri- 

 cultural, productivity, to improve profitability, to make needed 

 products available to more people, and to find new uses for basic 

 materials. 



An explicit export policy fits within that matrix I just described. 

 Technological leadership, for example, is part of an export policy, 

 because it will expand export opportunities by lowering cost, ex- 

 panding markets, and opening new uses. Environmental respon- 

 sibility in a global context supports exports because it means using 

 American resources and knowledge to feed people without overtax- 

 ing fragile lands. And economic opportunity initiatives support ex- 

 ports by fostering a healthy, diversified economy. 



Focusing on those three areas will feed market growth more ade- 

 quately, if it is reinforced by explicit export policy initiatives as 

 well. Supply insurance, market access, market development are 

 areas that need attention. Sales development is another. 



A different package of export assistance programs might be de- 

 veloped to help foreign markets mature and to reach their import 

 potential more quickly. Thus, they would translate more reliably 

 into real export growth that can be sustained. We suggest three. 



For the poorest countries, funds might be earmarked for mer- 

 chant marine operating expenses or food aid might be exempted 

 from market preference. 



Second, promising markets trying to make the transition from 

 aid to commercial status might be offered direct export credit 

 through a multiyear revolving fund. And a third would be to create 

 an investment revolving fund to loan money to private U.S. entities 

 willing to make investments in developing countries to increase 

 consumption of importable products. 



Capitalizing on growth potential in a proactive, market building 

 effort can position U.S. agriculture to build and serve the markets 

 it is uniquely positioned to serve — that is for the full range of bulk 

 and higher value products that people want to buy and that Amer- 

 ican agriculture can deliver competitively. 



Thank you. 



[The prepared statement of Mr. Johnson appears at the conclu- 

 sion of the hearing.] 



Mr. Allard [assuming chair]. Thank you very much for your 

 comments. We are between votes on the House floor, and that is 

 why some members of the subcommittee are not here, and that is 

 why I am the only one here, because I left earlier to go vote. There 

 will be other members joining us, so please don't be offended by 

 anybody's absence. We will all be back to ask you questions. 



I would like to pose a general question to the panel. Actually, 

 three general questions. First of all, I would like to have you list 

 for me those programs that you have used the most in expanding 



