MR. HOOD: Thank you, Mr. Chairman. I appreciate the invitation to be here and I know most everything that I have has been said. I've just get to some bullets briefly on some of the points. There is a copy of my testimony that you can follow me through with. I am representing the Mississippi Farm Bureau and most of you know I am a producer in Mississippi, also. But Mississippi Farm Bureau represents over 212 thousand member families. Mississippi is very diverse in agriculture as most of you know like the other statements that have been heard before me. They depend on access to customers around the world for the sale of nearly a billion dollars worth of farm commodities each year. For many of our commodities the global market is a primary determinant of crops. Mississippi is a net exporter of agricultural products and thus contributes to reduce the national trade deficit.

When Congress passed the 1996 Freedom to Farm Act, it phases out farm price supports as we know. It made U.S. agriculture more dependent on the world market. American farmers and ranchers produces an abundant supply of commodities far in excess of the domestic needs and their productivity continues to increase. (Inaudible) progressive everything the Good Lord (inaudible) is the only way we would be able to survive. But exports, our exports are the source of the future and without that we'll have very little growth in sales and income will go to zero.

As you're well aware, U.S. agriculture is reeling because of low commodity prices. The Mississippi crop receipts fell 21 percent in 1998. That's one yield compared to 1997. Receipts from soybeans, which is our largest crop in terms of acres feel 34 percent. For the first time in recent history expected prices in 1999 are below the state average cost of production. Not in one crop but for all major crops.

This is my 39th crop. This is the first time in 39 years I sit down with a piece of paper and pencil and I cannot show a profit on any crop that I normally bring. My own hope is a high yield because future prices, it doesn't look like it's going to increase fast enough. Another alternative would be unexpectedly are an opening of U.S. open markets which is the most important thing that I can see right now than it's ever been before. Mississippi agriculture's long-standing history of balance and trade services will not continue if we are relegated to the sidelines as new negotiations in agriculture remains. We have to be very proactive. If the United States now leaves to others to form new trade pacts and write future rules for trade, the U.S. producers, the processors and exporters will be severely disadvantages in the competitive marketplace of the 21st Century. We're counting on this administration and Congress to ensure that the U.S. and Mississippi farmers and ranchers have a significant place at the negotiating table. We have to be armed with the tools that we need and that's going to include the trade negotiation authorities that we've been talking about here today. To this end, U.S. negotiators must comprehensively address high tariffs, trade distorting subsidies and all the other trade practices in the new round of negotiations on agriculture. What are some of these other practices I'm talking about? ? First, Mississippi Farm Bureau supports expediting action on the next round for agriculture in the WTO. Our market is the most open in the world. We cannot sit idly by while the competitors trade openly in our market but deny us access to their markets on equal terms.

Second, we support a single undertaking for the next round wherein all negotiations conclude simultaneously. This format will prevent other countries from leaving the difficult agriculture negotiations until the bitter end. They sit there and cherry pick the easier negotiations in other sectors. I think you should not let that happen.

Third, we must call for the elimination of export subsidies for all WTO member countries. Our producers, me included, cannot compete against the mountainous spending by our primary competitors like the EU. The EU spends in excess of eight times the level of domestic export subsidies of the United States. How do they do get buy with it? Just to give you some small examples, water. You didn't think that much about water. Irrigation water costs me about seven and half dollars per acre each year. They subsidize their irrigation (inaudible.) They subsidize their fertilizer and seed. I have to buy my fertilizer and seed. They say it's it not subsidized but they are. I think you need to take notice of this. Cotton is my major crop. Cotton is one of the our important commodities in our state. Domestic subsidies for the production of cotton in Uzbekistan, China, Pakistan and elsewhere, distort world markets and pit our private producers against national treasuries. We have efficient producers, but they must have access to a level playing field.

Four, we believe that new negotiations must include in a recommitment to a binding agreement to resolve the sanitary and phytosanitary issues based on scientific principles. We talked about that a lot today already, so I won't mention a whole lot on that. But I do want to mention this, any change to the SPS Agreement will expose the sound scientific principles that's now imbedded in the provisions. Now that's what EU wants is to change some of those and they'll just relish that to restrict revenue facilitator trade. So I think we need to be very cautious on that.

Fifth, the nest round should result in tariff equalization and increased market access by requiring U.S. trade to eliminate tariff barriers within a specific time frame. All WTO member countries reduce tariffs, both bound and applied, in a manner that provides commercially meaningful access on an accelerated basis.

Six, we must impose disciplines on state trading enterprises that distort the flow of trade in world markets. Every effort that should be made to design an agreement that sheds light to practices of the way they practice and end the discriminatory practices. Our producers have lost too many sales in third country markets due to the noncompetitive, nontransparent operations of STE's.

Seven, we must ensure market access for biotechnology products produced from genetically modified organisms. We talked about that some this morning.

Next, we must end the use of all tariff -- nontariff barriers to trade. These practices include but are not limited to domestic absorption requirements, discriminatory licensing procedures, price bands and administration of tariff rate quotas that prevent true competition.

Finally, our negotiators must make changes to trading practices that would facilitate and shorten dispute resolution procedures and processes. There is no reason why it should take two to three years to settle a dispute. If you lose two years of marketing opportunities, you've lost it all. That should not be allowed to happen. The future of Mississippi agriculture, which impacts over one fourth of our state's economy, is tied directly to open and growing world markets. These eight points addressed will certainly help us in that.

Mr. Secretary, a few months ago I visited in your office and I remember one thing you said. We were talking about other issues, of course, but remember that freight train you said was coming down the track and you were sure it was going to wreck? The only thing I can see any different in that now is that it's a much longer freight train with a lot of box cars added to it and it's going to be a much bigger wreck if we're not careful.

I think the United States has a tremendous opportunity before it to the world, to we as the producer. To the industry that we are committed to opening new markets for U.S. agricultural. That concludes my remarks. Thank you, Mr. Chairman.