BOB NODLINSKI: First of all, Nebraska Wheat Growers would like to thank you for this opportunity to comment on the upcoming round of the World Trade negotiations. It is vital for every farmer and rancher in Nebraska -- not only for Nebraska but across the country to continue to try to build a better world trading system.

My name is Bob Noblinski. I'm a third generation farmer from Brule, Nebraska. I currently represent the Nebraska Wheat Growers.

As you are -- I'm sure you are aware that the American farmer is in trouble. Commodity prices are the lowest and some crops have been affected and they continue to drop. Farmers are dealing with sanctions around the world that do not allow them to sell products. And our world trading programs don't seem to work when other countries place bans on our food products. Even when these countries are overruled by the WTO, they still refuse to allow our products in the ports.

It is time the American farmer stops giving. There's nothing left to give. It is a time that the rest of the world comes to our level and plays by the same rules. It is also time that these countries stop hiding behind genetically modified excuses and start importing our products. The United States has the safest food supply in the world. It's time the world realizes this. With the next round of the WTO quickly approaching, there are a few areas we feel we should focus our attention on.

They are: export subsidies must be eliminated.

Domestic farm subsidies should be subjected to disciplines that limit distortion of trade. Tariffs must be further reduced. State trading enterprises must evolve to full transparency and eventually to free market entities. The rules governing sanitary and phytosanitary measures should be strengthened so that SPS measurements are not used to block U.S. imports. Dispute settlement mechanisms must be shortened to address the perishable nature of agricultural commodities. And assure trade in genetically modified organisms which is based on fair, transparent and scientifically accepted rules and standards.

The following represents our positions and priorities for the next round of negotiations. Under domestic supports, the wheat producers members believe that the United States has significantly reformed our domestic support programs since the conclusion of the Uruguay Round Agreement on Agriculture. The passage and implementation of the 1996 farm bill put the U.S. levels of support far below the ceilings established in the URAA. Therefore U.S. negotiators should seek to eliminate the inequities that persist between U.S. levels of domestic support and those of our competitors.

In terms of specifics, U.S. wheat producers support continuation of the current green box conditions on direct payments since the green box provides these direct payments to producers that is not linked to production decisions. In addition, the green box should be included to decouple income support measures under market loss payments, insurance -- income insurance and safety net programs or crop insurance and national disaster relief programs. A range of structural adjustment assistance system programs and certain payments made under environmental programs or CPR -- CRP.

Furthermore, marketing loans should be continued to be treated as they have been under the URAA to remain exempt from further support reductions.

Market access. Average U.S. tariff on agriculture imports is about 8 percent while the rest of the world exceeds 50 percent. The U.S. does maintain a few moderate tariffs for some import-sensitive sectors. Until such time as the significant reductions are made by others, the U.S. agricultural tariff should not further reduced. American farmers deserve and need a minimum level of protection against the trade-distorting practices of competing exporters.

In the previous round, there were many non-tariff barriers that were converted to tariffs under tariffication that resulted in very high tariff levels being established. In the new round, reducing these high tariffs will need to be a priority. It is our experience that tariff levels in developing countries are frequently set at very high levels in order to maintain -- to protect their domestic producers. These tariffs can also be quite erratic in terms of how they are applied. The developing countries need to be brought into the WTO process and encouraged to reduce their tariffs in order to receive the benefits of a more open economy.

With respect to countries that administer tariff-rate quotas, TRQ's, in a variety of ways from auctioning to the allocation of licenses to producer groups which clearly hinders U.S. exports. The duties outside the quota need to be targeted for reduction. The fill rate of tariff quotas appears to be very low among some countries resulting in part from TRQ administration. To correct the problem, the U.S. may want to consider an incentive-based system to encourage increased imports where fill rates are low.

In the last round, the EU refused to establish TRQ on wheat imports which they should have done. We believe the U.S. should be developing an intensive team of agriculture negotiators in both USDA and USTR. Past experience indicates that there is no substitute for excellent people and staff stability when trade talks accelerate.

Finally, I would like to thank you again for the opportunity to comment on the 1999 WTO negotiations on agriculture.

When these negotiations begin and all the many complex and far-reaching issues come to bare, I would like to ask you to do one thing. Remember the American farmer of which I am one. The upcoming round of negotiations is a complicated matter and will affect millions of people around the globe. I ask you not to forget the American family farmer who has been farming the same land year after year, the one that holds the value of farming and rural life among the highest. These negotiations will affect him, his family, his heritage, and his future. Thank you.