32 



regard to the tragedy that occurred in the State of Washington has 

 been a firm, direct, complete, and most importantly accurate. 



Secretary Espy. Thank you. 



Mr. Gunderson. You need to know that all of us in production 

 agriculture deeply appreciate the way in which you have handled 

 what probably can be termed the first crisis in your administra- 

 tion. 



I think it is essential that we make clear at this point that this is 

 not a problem with red meat, but rather a problem with the proc- 

 essing of red meat. 



Secretary Espy. Yes. 



Mr. Gunderson. We need to take whatever steps are necessary 

 to respond to that. 



I have a suggestion as you seek to reduce the size of your Wash- 

 ington bureaucracy in USDA that one way in which you could 

 solve a very difficult and contentious problem is to look at the bu- 

 reaucracy in the milk marketing agency. There is a way you could 

 reduce that that I think would be frankly an acceptable way to 

 people of all regions of this country to solve a contentious problem. 



But I would like to asK you — because as I read your statement 

 and your summary that was attached you even allude to the fact 

 that we are looking at reduced milk prices in 1993. All the indica- 

 tions I see are that we are looking at about a 70-cent reduction per 

 hundred weight. 



I don't have to tell you that that is a level of income which most 

 dairy farmers in this country will not be able to survive at. 



As difficult as it is, as you know from your years here, can we 

 anticipate some kind of a proposal from USDA on dealing with the 

 milk program? Or do we anticipate that you will look forward to 

 working with us? What do you see happening in this area? 



Secretary Espy. I can tell you that this is one of the areas where 

 I have been asked not to emit signals very early. [Laughter.] 



It is a problem. With regard to marketing orders and with regard 

 to geographic distinctions within marketing orders, we have a prob- 

 lem. 



If I can just get away with saying that farm income and increas- 

 ing farm income across the range of commodities and producers is 

 a goal that we have. I will be sitting down with you to come up 

 with strategies and mechanisms to do that. 



Mr. Gunderson. Once your budget numbers are complete, are 

 you then open to sitting down and opening up various commodity 

 programs in a way in which we can increase income within that 

 budget limitation? 



Secretary Espy. Yes. We have already had preliminary discus- 

 sions with OMB with regard to the budget submission for this year. 

 We won't see a lot of change, let me say that to you. We won't see 

 a lot of changes now. But in the future, we have to discuss some 

 changes. 



Mr. Gunderson. By that do I read that you don't anticipate a 

 number of changes in fiscal year 1993, but that the potential for 

 changes in fiscal year 1994 could be more significant? 



Secretary Espy. That would be a good interpretation of what I 

 said. [Laughter.] 



Mr. Gunderson. Thank you. 



