18 



in the assertion that the conditions for nongame wildUfe in this 

 country continue to deteriorate. 



We, therefore, see the "Teaming with WildUfe" Program as a sen- 

 sible and economically sound approach to help expand our potential 

 customer base. We feel that by improving habitat for wild birds in 

 this country and by protecting threatened species, we can increase 

 the enjoyment of this hobby for our customers. 



The second business approach that we looked at was never sup- 

 port a program that puts you in a competitive disadvantage. One 

 of the hardest obstacles for American Agco to overcome when we 

 considered the Minnesota Wild Bird Program was the fact that not 

 all birdseed companies would be participating in this program, the 

 program based on a voluntary contribution so other companies 

 could not choose to participate and still enjoy the benefits. 



However, the proposed guidelines for "Teaming with Wildlife" 

 give participating companies what they have been asking Congress 

 for as long as I can remember — a level playing field. Only national 

 legislation will provide everyone in the industry with the assurance 

 that we will be treated equally, and that we can be assured that 

 it is absolutely necessary for the program's success. 



And last, but most importantly, giving something back. As an ag- 

 ricultural-based corporation, American Agco acknowledges that our 

 very existence depends on our ability for the land to reproduce. Ag- 

 riculture has always recognized this fact that we need to restore, 

 protect, and replenish our natural resources. 



"Teaming with Wildlife" could very possibly be the most signifi- 

 cant piece of wildlife preservation legislation passed by our genera- 

 tion. By properly funding responsible conservation programs, we 

 can help assure that future generations will enjoy a diverse and 

 healthy wildlife population. 



[The remainder of Mr. Mailman statement follows:] 



Remainder of Mr. Mallman's Statement 



American Agco, as a responsible corporate citizen, views Teaming With Wildlife 

 as an opportunity to give back a portion of the resources it has used to sustain our 

 60 years of growth. 



We have tried to understand the opposition to Teaming With Wildlife by other 

 manufacturers of wild bird food. The most often-mentioned criticism we hear is the 

 potential negative effect an additional tax might have on bird seed sales. There is 

 little doubt that price increases can have a negative impact on sales. Still the ques- 

 tion has to be, how severe will that impact be and will it offset the benefits that 

 can be derived by this program? 



As a Commodities Trader I feel eminently qualified to address this issue. The 

 grain markets during the '95-'96 crop season have been the highest priced and most 

 volatile in history. Corn prices for the most part have remained relatively stable for 

 over 50 years. Although crop conditions and export demands have pushed the mar- 

 ket above $3 and driven it down below $2 on numerous occasions, the price has re- 

 mained between these levels the majority of the time. 



This year, however, corn not only surpassed the record $4 per bushel benchmark, 

 but rocketed up to a staggering $5.37 per bushel high. As dramatic as these price 

 increases seem, they pale in comparison to what the bird seed market did three 

 years ago. 



White proso millet is a major ingredient in almost every bird mix. In the early 

 1990s, the grain traded in a range of from $4.50 to $7.00 a hundredweight. For a 

 period in 1993, millet was trading at $27 a hundredweight. This represents an al- 

 most 500% increase over the average trading range. For corn prices to match these 

 levels, we would need to see prices of $15 per bushel. 



