75 



ing the potential changes by FDA to its vomitoxin regulatory pol- 

 icy; sixth, there were questions concerning the accuracy and 

 repeatability of inspection tests for vomitoxin; and, last, the price 

 support policy that ASCS would adopt with respect to the weather- 

 damaged wheat. They were all factors of risk that had to be consid- 

 ered. 



Given this myriad of factors, raw grain handlers took action 

 early in the harvest season that they believed to be prudent to pro- 

 tect their financial integrity. These actions ranged from initially 

 not even accepting wheat containing vomitoxin to later accepting, 

 only after adjusting the price to reflect the elevator's perceived risk 

 in the absence of a clear market demand for such wheat. 



However, as these marketplace uncertainties have gradually 

 cleared up, it is our understanding that the pricing spread between 

 high quality wheat and weather-damaged wheat has begun to ease. 



In closing, we see increased consumer demand today for even 

 greater safety in an already safe and wholesome food supply. We 

 see more and more stringent legislative and regulatory mandates 

 for food safety coming down and advanced technology that allows 

 us to measure ever smaller quantities of contaminants, and we see 

 with these changes the risk, the higher levels of risk being shifted 

 back in the chain back to the producer level. 



We think for this reason that it is a very important consider- 

 ation, as Congress examines the future of the Federal crop insur- 

 ance program and other programs that are meant to be a safety net 

 for farmers, to consider all of the risks that the farmer faces. 

 Thank you very much. 



[The prepared statement of Mr. Keith appears at the conclusion 

 of the hearing.! 



Mr. Johnson [resuming chair]. Thank you, Mr. Keith. 



Mr. Campbell, it is heartening to us all to know that there is life 

 after Government service, and we welcome you here today as well. 



STATEMENT OF JOHN CAMPBELL, ASSISTANT VICE PRESI- 

 DENT, CORPORATE AFFAIRS, AG PROCESSING, INC., ON BE- 

 HALF OF THE NATIONAL GRAIN TRADE COUNCIL 



Mr. Campbell. Thank you, Mr. Chairman. It is almost as much 

 fun to represent the grain industry as it is to represent USDA. I 

 was out of the room when they voted on who should do this, so 

 here I am. 



I am representing the National Grain Trade Council. I am also 

 employed by Ag Processing, a cooperative headquartered in 

 Omaha, Nebraska. I will dispense with most of my prepared state- 

 ment and try to get right to the meat of it. 



Even though times have changed dramatically from the early 

 part of this century, the purpose for building grain handling and 

 storage facilities has not, and that is whether the private entity 

 builds those facilities or a group of farmers in the form of a cooper- 

 ative. 



Function of the grain elevator, then and now, is value enhance- 

 ments. An elevator adds value to the collective marketing, includ- 

 ing storage, enhanced transportation leverage, volume clout with 

 end users and quality management. 



