102 



TESTIMONY 



OF 



ROBBIN 8. JOHNSON, 



CARGILL, INCORPORATED 



BEFORE THE 



HOUSE COMMITTEE ON AGRICULTURE 



SUBCOMMITTEE ON FOREIGN AGRICULTURE AND HUNGER 



JUNE 23, 1994 



Good morning. I appreciate the invitation to appear before the 

 committee today. The committee's questions are central to the 

 United States being prepared for future challenges and 

 opportunities in agricultural trade. With American 

 agricultural growth and prosperity tied to U.S. performance in 

 export markets, this subcommittee's ability to understand 

 trade opportunities can be translated into policies and 

 programs that leave the sector prepared for emerging 

 opportunities. If this panel can accurately define trends and 

 likely developments in production, consumption and marketing, 

 it may confidently guide public assistance to American 

 agriculture. 



There are a number of powerful forces shaping the global 

 marketplace between now and the end of the century. The 

 conclusion and implementation of the GATT, no doubt, is one of 

 the most significant. Trade liberalization has been proven to 

 propel economic growth, and that alone is significant for 

 agricultural producers. When liberalization is coupled with 

 the Uruguay Round's (UR) market access and subsidy 

 disciplines, American agriculture is handed an opportunity to 

 compete on terms that are not perfect, but far better than in 

 recent history. 



In the 1970s, we witnessed what economic growth could mean to 

 U.S. agriculture. Then, economic growth and the emergence of 

 the Soviet Union as a major importer coincided with a 

 competitively valued dollar and abundant U.S. supplies to 

 produce an export surge — the likes of which have never been 

 repeated. Throughout the 1970s, the issue for policymakers 

 was managing scarcity and controlling sales — through 

 embargoes and long-range trade agreements. 



The situation was nearly opposite in the 1980s. Much of the 

 1970 's economic growth was false, premised on an abundance of 

 petro-dollars and it could not be sustained; a worldwide 

 recession took hold. The dollar increased in value relative 

 to other currencies; that eroded competitiveness of American 

 goods and services. New competitors came into world markets 

 with attractive products at attractive prices. American grain 

 supplies were abundant, but they were not available to the 

 marketplace at prices the world would pay. The sector was 

 plunged into a recession. The issue for policymakers was 

 getting American agriculture back on its feet, recrafting 



