ROBERT BUSCH: My name is Robert Busch, and I am from Mitchell, Nebraska, which is at the western end of the state. I have been a sugar beet grower for more than 40 years. Today I'm proud to represent more than 1,200 growers from Wyoming, western Nebraska, and eastern Colorado who grow 160,000 acres of beets.

I am also a corn grower who depends on a strong and viable corn sweetener industry that uses more than 800 million bushels of corn each year for sweeteners which adds .25 cents a bushel to the price of corn on the cash market. Almost $1.3 million are generated in the three states by the sugar and corn sweetener industries as well as over 37,000 jobs that rely on a strong sweetener industry.

Sugar beets are processed in five factories that provide a variety of sugars that are shipped to grocers and food manufacturers in 21 states. These customers enjoy the benefit of prices 32 percent below the average price found in other developed countries. Our proximity to these important food manufacturers in the mountain states makes it even more important to sustain an industry that guarantees a reliable supply at a reasonable cost. We are able to do this because we are among the most efficient producers in the world. And our growers and bankers have the ability of the domestic policy that doesn't cost the taxpayer a dime.

The beet sugar industry has long been the stabilizing economic force in the mountain states as the farmers and local businesses try to survive periods of the devastatingly low commodity prices that we're seeing today.

The sugar beet growers in this part of the country know adversity all too well. We faced bankruptcy in 1984, the explosion of our sugar silos at Scottsbluff in the summer of 1997, and the many hail storms that often shredded our crops, livelihood, and dreams in a matter of minutes. Most of us have been able to survive all these events, but these challenges pale in comparison to what trade agreements can do to us.

Our growers have deep concerns and frustrations about the trade agreements that exist today. Almost 75 percent of the sugar produced in the world is produced in developing countries that are either not members of the WTO such as Russia and China or that have substantially fewer commitments and a longer transition period and often have very low labor and environmental standards.

The two major developed countries sugar exporters are the European Union which use massive subsidies, .25 plus cents per pound to dump millions of tons of sugar on world market and Australia which has hidden subsidies and a marketing monopoly. This is why the world market price for sugar is currently only one-third of the cost to produce it worldwide. The Uruguay Round has done nothing to fix these problems. Rather than leveling the playing field, the Uruguay Round simply locked in the distortions and lowered the playing field.

U.S. ranks among the lowest cost producers of sweeteners in the world. Yet sugar growers are threatened by unfair practices by foreign industries and governments.

In an effort to correct some of the failures of past agreements, we make these recommendations for the next round of trade negotiations.

These include foreign countries must comply with agreements already in effect, eliminate direct and indirect export subsidies and state trading monopolies.

Negotiate trade agreements, recognize that various ag industries and markets are different with diverse characteristics and sensitivities.

Other countries must reduce their support levels to those of U.S. sugar farmers before further concessions are made.

Our growers make the following recommendations on the basis of upcoming negotiations in the World Trade Organization. Compliance. Before the U.S. forges any new agreements, we must make sure that all the WTO members are in compliance with the current agreement. The U.S. and any other country that has surpassed their commitments should be given credit for doing so before being required to make further cuts.

Catch up. The Reformed Sugar Policy of the 1996 farm bill removed the guaranteed price safety net for sugar farmers. The United States must not reduce its support for agricultural programs particularly for import sensitive crops such as sugar any further until all other countries have reduced their support levels to our level.

Export subsidies, state trading monopolies. Export subsidies must be eliminated in state trading monopolies like Australia's Queensland Sugar Corporation must be addressed.

Labor and environmental standards. Since nearly three-quarters of the sugar produced in the world is in developing countries, most have substantially lower labor and environmental standards. For example, Brazil uses child labor and forced labor in the cane fields. Incentives must be provided to raise and comply with our standards.

Negotiation strategy. I'm going to run out of time. Since U.S. sugar beet farmers do not have the risk management tool such as with hedging options, or forward contracting that are available for other crops. It is imperative that tariff rate quotas are maintained to import sugar only on a needs basis. Therefore with regard to market assets, the traditional and flexible request offer type of negotiating strategy must be followed rather than a formal approach.

It has been said that in business, you don't get what you deserve, you get what you negotiate. It's efficient and essential in the industry, deserves to be allowed to meet fairly in an international marketplace, that directly depends on the agreement that you negotiate.

We look forward to working with you with the months and years ahead.

Once again, we thank you for the opportunity to address you today. Thank you very much.