September 2, 1992 BUSH VERSUS CLINTON ON AGRICULTURE: FREE MARKET EXPANSION VERSUS GOVERNMENT INTRUSION BUSH: CLINTON: Expanding American Agriculture  President Bush is working to improve our farmers' and ranchers' competitiveness in world markets. The President has helped our farmers, giving them new flexibility, promoting new uses for agricultural products, opening markets for farm exports, and helping to mitigate undue regulatory burdens. More Regulation  The only reference to agriculture in Clinton's economic plan is the proposed elimination of the honey subsidy. The Democratic Platform, reflecting Clinton's overall support for more government intrusion, ties agricultural success to increased bureaucratic involvement.  President Bush recognizes that agricultural prosperity is crucial to America's global competitiveness. The Republican Platform emphasizes a growth policy for American agriculture through exports, new uses, and new markets.  The Democratic Platform seeks only a "sufficient and sustainable" agricultural economy. Increasing Farm Income  Under President Bush's leadership, net farm income for the period 1989-92 will be at record levels, an estimated 14 percent above the previous four-year period. Farmers are now receiving more and more of their revenues from markets, instead of the federal government. Pushed pro-market farm policies that helped farmers' equity grow $45 billion from 1988 to 1991.  Under Clinton, real net income for farmers in Arkansas grew at a mere 4 percent from 1984 to 1987, one-sixth of the national growth rate.  Assisted in lowering the farm debt through interest rate reductions from $194 billion in 1984 to $123 billion (forecast) in 1991.  Formed a low interest loan program in Arkansas.  Opposes tax increases, which sap national productivity and increase farm production costs. Supports a cut in the capital gains tax rate, which will benefit farmers who wish to sell assets to raise capital.  Wants to impose the largest tax increase in American history -- $150 billion over four years. Though Clinton claims he will only tax the "wealthy," his tax hikes will hit thousands of family farmers who file individual tax returns. Clinton's radical environmentalist running-mate, Al Gore, wants to raise carbon taxes, raise pollution charges, and raise virgin materials fees. 1990 Farm Bill  In November 1990, signed the market-oriented 1990 Farm Bill, a bill for which he fought, to build on the successes of the 1985 Reagan Farm Bill. The 1990 program will keep American farmers competitive in world markets, assist farmers in their efforts to conserve soil and water, enhance farm income and the U.S. food supply, and give farmers flexibility in their production and marketing.  Calls for a "fair return" for small family farms, which will mean a return to tight supply management and no- growth government intrusions. Farm Program Support  Maintains a viable government support where needed, while focusing on building demand for expanded farm production.  His economic plan did not mention farm supports, except to eliminate subsides for honey producers. Reducing Regulation  Announced on March 19, 1992, a package of agricultural regulatory changes totalling $1 billion in economic benefits. Recognizes the special financing needs of agriculture.  Has not endorsed the President's regulatory reforms. Promoting Trade  Committed to breaking down trade barriers and opening new markets around the world. For example, opened the Japanese and South Korean markets for U.S. beef. Made available $4.85 billion in credit guarantees for the purchase of U.S. agricultural goods to the former Soviet republics and up to $165 million in food aid. This will help increase farm income and retain important markets.  Promoted trade policies that have increased agricultural exports up to $37 billion in 1991, and climbing to an expected $41 billion this year with an $18 billion surplus in agriculture trade.  Attempts to latch onto President Bush's extremely successful trade policy, since his own farm programs will not expand production or help the U.S. to compete in the world marketplace.  Spent $850 million so far this year on the Export Enhancement Program (EEP), designed to counter the EC's massive export subsidies. Received $1.2 billion less than requested in FY 1989- 1991.  Announced on September 2, a new EEP initiative to help farmers sell over one billion bushels of wheat, with a market value of over $3 billion, to 28 countries around the world. The measure will support nearly 100,000 U.S. jobs.  Says he would make full use of the EEP, but remained silent while Congressional Democrats cut the President's budget requests. GATT  Demanded that any final GATT agreement include a commitment by all parties, including the EC, to reduce agricultural trade barriers significantly and to require their farmers to compete fairly in the world market.  The President believes that a GATT agreement that meets these terms will benefit America's farmers, expanding farm exports by $4-5 billion by the year 2000, and creating 40,000 - 60,000 new U.S. jobs.  Clinton now follows Representative Gephardt's protectionist lead on trade issues. This harkens back to the failed Carter grain embargo and failed agricultural negotiations in the 1970's Tokyo Round of the GATT, which Democrats understandably want us to forget. NAFTA  Recently completed negotiations on the North American Free Trade Agreement (NAFTA) that will provide improved access for U.S. agricultural products to an expanding Mexican economy. The U.S. is currently the largest supplier of agricultural products to Mexico; U.S exports to Mexico have tripled since 1986.  Has decided not to decide whether to support NAFTA. Though an early supporter of fast-track authority, Clinton is now caught by his own pandering, having reportedly promised Big Labor to follow the lead of Gephardt -- NAFTA's biggest critic -- on the agreement. New Uses for Farm Products  Supports a growing effort to expand non-traditional markets for farm and forestry products. Markets for fuels, lubricants, biodegradable materials, inks, and pharmaceuticals offer tremendous potential for American agriculture.  Has proposed no specific measures to build new markets through new products and new uses.  Proposed and signed into law the Clean Air Act Amendments of 1990, which provides expanded market opportunities for biofuels, ethanol, and biodiesel (a clean burning substitute for diesel fuel).  Flip-flopped. On the Iowa campaign trail, Clinton pledged his support for the use of ethanol. However, in 1985 he removed Arkansas' major tax incentive for the use of ethanol. Environment  Seeks to ensure that zeal for environmental protection does not translate into laws so restrictive as to put farmers and ranchers out of business. Supports incentives and voluntary programs over mandates.  Wants to increase regulation of pesticide use. Neither Clinton nor his running mate, Al Gore, understands that our current strict pesticide laws allow farmers to produce the world's safest, most abundant, and least expensive food supply. Gore naively questions the need for any agricultural pesticide use at all.  Committed to the goal of "no net loss of wetlands," while at the same time protecting the legitimate property rights of farmers, ranchers, and other landowners.  Flip-Flop: Clinton wrote the Bush Administration seeking relaxation of wetlands regulations for Arkansas farmers. Now, as a presidential candidate, Clinton favors inclusion of millions of acres of farmland in the definition of wetlands. # # #