138 



Next, Ms. Colon. 



STATEMENT OF SHARON L.L. COLON, VICE PRESmENT, 

 AREA MANAGER, UNITED STATES AND CANADA, CoBANK— 

 NATIONAL BANK FOR COOPERATIVES 



Ms. Colon. I will summarize my prepared remarks and ask that 

 the entire statement be included in the record. 



Mr. Penny. Without objection. 



Ms. Colon. The bank provides financial services to farmer- 

 owned cooperatives; rural utility systems — including electric, tele- 

 communication, water, and waste disposal systems; and facilitates 

 the export of U.S. agricultural products. Over the past 10 years, 

 CoBank has financed $17 billion in export sales to over 40 coun- 

 tries involving about 30 agricultural products. To assist the bsink's 

 customers, we recently opened an office in Mexico City and it is our 

 first one outside of the United States. 



As a U.S. bank, CoBank is the single most active lender under 

 the USD A export credit guarantee programs. In recent years, we 

 have accounted for about 40 percent of all the guarantees issued 

 under the GSM credit guarantee programs. Because of our deep in- 

 volvement in agricultural export activity, we applaud the efforts of 

 the administration and Congress to maJce our Nation's export pro- 

 grams more effective. 



Frankly, CoBank is not in the best position to comment on spe- 

 cific changes being discussed about the formal organizational struc- 

 ture of the USDA. However, we feel that the Foreign Agricultural 

 Service — or FAS — plays a key role in facilitating U.S. agricultural 

 export trade. 



We have cited four principles which we believe, if applied prop- 

 erly, will ensure the successful operation of these programs from 

 the standpoint of all parties involved: For example, foreign pur- 

 chasers, financial institutions, and U.S. exporters. 



The principles we believe are important are as follows: The credit 

 programs should continue to be the cornerstone of our export pro- 

 motion programs. The availability of credit has been a critical fac- 

 tor in helping make U.S. agricultural products competitive in world 

 markets. 



The program should be user friendly and customer oriented. In 

 this regard, the administration's stated intent to make Government 

 more customer oriented is welcome. 



We believe that the FAS staff should be knowledgeable and con- 

 versant about our country's export programs. In addition, that stEiff 

 should be in touch with developments in local markets and be posi- 

 tioned to help respond to new developments, such as the privatiza- 

 tion efforts taking place in Central Europe and other parts of the 

 world. 



We believe there is considerable merit in continuing to maintain 

 separate programs intended to expand agricultural markets. While 

 it may be possible and even desirable to coordinate USDA pro- 

 grams with those of other Departments, agriculture is a unique in- 

 dustry with unique problems and opportunities. 



We believe that FAS information and education about U.S. agri- 

 culture and U.S. export programs and the opportunity to trade 



