91 



n 



those counties are home to only 10 percent of rural people. 

 Manufacturing is now the dominant rural goods-producing activity. 



Manufacturing growth faltered in the 1980 's. Rural 

 manufacturing employment grew by only 5 percent in the past 

 decade after growing by over 20 percent in 1970 's and even higher 

 rates in previous decades. At the USDA, we will focus our rural 

 development programs to help rural economies obtain access to and 

 compete in growing global markets. 

 Conservation Programs 



The state of the farm economy will be affected by the way in 

 which environmental issues in agriculture are resolved. Many 

 farmers express concerns that conservation and environmental 

 responses will reduce their incomes. To assist farmers and 

 address environmental problems, the 1985 and 1990 Farm Bills 

 provided for an array of programs, including land retirement, 

 technical assistance, and cost-share programs. 



Of the 54 million acres of land idled in 1992 to limit 

 surpluses and protect the environment, 35 million acres were 

 enrolled in the Conservation Reserve Program (CRP) , now in its 

 seventh year. The CRP converts highly erodible or 

 environmentally sensitive land to conservation uses. It 

 addresses tree planting, erosion, water quality and wildlife 

 objectives. This program currently provides payments to farmers 

 totaling $1.7 billion annually. 

 Conclusion 



In closing, commodity production and use are generally near 

 balance; the large troubling surpluses of the past have been 



