37 



The other very important thing that happens with value-added 

 is the economic growth in rural America. We are providing jobs, 

 rural development. I think we must look at all these factors when 

 we look at agricultural exports. 



Thank you very much. 



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

 sion of the hearing.] 



Mrs. Thurman [assuming chair]. Mr. Terhaar. 



STATEMENT OF ALLEN A. TERHAAR, DIRECTOR, FOREIGN OP- 

 ERATIONS, NATIONAL COTTON COUNCIL OF AMERICA, AND 

 EXECUTIVE DIRECTOR, COTTON COUNCIL INTERNATIONAL 



Mr. Terhaar. Excellent, thank you. Madam Chairman. 



Members of the subcommittees, on behalf of the National Cotton 

 Council of America, I appreciate this opportunity very much to tes- 

 tify before you today regarding the USDA's Foreign Agricultural 

 Service. 



I was struck when reading the TPCC report entitled, "Toward a 

 National Export Strategy" that U.S. agriculture and FAS already 

 have most of the features called for in the report. As a matter of 

 fact, U.S. agriculture has been doing these things, these very 

 things, and doing them well for many years. 



It is why we have a $13 billion positive trade balance in agricul- 

 tural exports, while U.S. manufactured goods run a $140 billion 

 negative trade balance. It is why other sectors are finally trjdng to 

 emulate agriculture's successful methods. FAS is the original "one- 

 stop shop" for export market development. 



Madam Chairman, in my prepared statement I made some high- 

 ly positive comments about FAS. I stick by those comments and 

 will not repeat them here. 



We are, however, seriously concerned about whether FAS will re- 

 tain a clear sense of its mission in the future. We are also very con- 

 cerned whether resources under any reorganization will be devoted 

 to the areas of FAS that have the most impact on sales of U.S. 

 products overseas. That is, the people on the ground in attache of- 

 fices abroad, and the programs under the unique public/private sec- 

 tor FAS market development cooperator effort. 



We are also concerned that in the spirit of reinventing Grovem- 

 ment, a lot of changes will be made in FAS without reaching out 

 to the client group that uses its services; the farmers and agri- 

 businesses that rely on FAS to help market their products over- 

 seas. In the press release on this hearing. Congressman Allard was 

 quoted as stating: "When FAS was established in 1953, its purpose 

 was to maintain and expand foreign markets for U.S. agricultural 

 products." 



This mission statement is very consistent with the current FAS 

 mission statement which reads, quote: "To advance and reinforce 

 the efforts of the private sector to expand exports of U.S. agricul- 

 tural products." This is a mission statement that is clear, concise, 

 and very close to the original 1953 mission. 



We believe the continued focus on a singular mission is in part 

 responsible for FAS's success over the years. It came to my atten- 

 tion last couple of days that there is a draft of a new mission state- 

 ment being considered at this moment by FAS. It reads, "To ac- 



