Historic, Archive Document Do not assume content reflects current scientific knowledge, policies, or practices. 70 /. QQOa% Agriculture i Xw Outlook ’94 U.S. Department of Agriculture Headquarters Washington, D.C. November 30-December 1993 1, W A Agriculture Outlook ’94 Conference Steering Committee James R. Donald, Chair John E. Lee, Jr. Henry Bahn Philip L. Mackie Kitty Reichelderfer Robert Riemenschneider Conference Program Committee Gerald A. Bange, Chair Conference Director: Raymond L. Bridge Assistant Director: Russell G. Barlowe Conference Staff: Carol Morgan/Verna Blake Tracey Shaw/LaWanda Musgrove/ Jodi Ponder Volunteer Recruiter: Beth Hulse Publicity: Deborah T. Smith Information: Raymond L. Bridge Broadcast: David Vannell Press Operations: Diane Decker/Dixie Lee/ NancyJenkins/Kent Miller/ Marcia Evans Electronic Publication: Russell Forte/Judy Rude Exhibits: Larry Sullivan/Bill Boyer Art Direction: Julie Olson/George Avalos Printing: Richard A. Truesdale Logistics: Ralph L. Dillard/Cheryl Reese Agriculture Outlook JL* United States Department of Agriculture Conference Washington, DC 20250-3900 PREFACE These pages contain speeches presented during Agriculture Outlook ’94, the U.S. Department ofAgriculture’s 70th annual agricultural outlook conference. The conference was held at USDA headquarters in Washington D.C. on November 30 and December 1, 1993. This book is organized by order of presentation during the conference, and includes all speeches and illustrations submitted by speakers. On the opening day, Secretary of Agriculture Mike Espy and other top officials discussed new priorities for agriculture, as well as policy issues affecting U.S. agriculture, farmers and other rural Americans, land and water, food safety and nutrition. The sessions were televised over satellite. On the second day, experts from government and the private sector presented their views on the 1994 outlook for farm commodities, food prices and the agricultural economy. Readers are referred to audio tape cassettes of each session for a complete verbatim A record. Video tape cassettes are also available for some sessions. cassette order form can be found at the back of this book. To purchase additional copies of this Proceedings, call 1-800-999-6779 or write ERS- NASS, 341 Victory Drive, Herndon, Virginia 22070. For further information on the conference contact Raymond L. Bridge, information officer, at (202) 720-5447. A 'CuUAJZ^ 8AAMMEESS DDOONALD RR.. Chairperson Outlook Conference Steering Committee World Agricultural Outlook Board, USDA Washington, D.C. 20250-3900 January 1994 i Schedule at a Glance Monday November 29, 1993 ; South Building South Building Seventh Wing TrainingCenter 1:00-5:00 Early Registration Technology Exhibit Tuesday November 30, 1993 ; Jefferson Auditorium 9:00 Secretary's Keynoteand 1994 Outlook Issues 10:30 Break 11:00 Farm and Rural Perspectives on the Outlook 12:00 Lunch on your own Secretary's Press Conference 1:15 Environmental Issues for 1994 and Beyond 2:45 Break 3:00 Food Safetyand Nutrition Issues for 1994 and Beyond 5:00 Adjourn 5:15 Conference Reception Wednesday, December 1993 1, Jefferson Cafeteria South Building Room 107 Holiday Inn Auditorium Meeting Room Training Center Administration Crowne Plaza Building at Metro Center 7:45 Continental Breakfast 8:30 U.S. and World Agricultural Outlook for 1994 9:15 U.S. and World Dairy Prospects Forest Products Food Prices and Food Grains and Future Demand Outlook, 1994 Retail Demand Prospects and Beyond Prospects 10:30 Break 10:45 U.S. and World Greenhouse, Farm Business 1994 Cotton Feed Grains Turfgrass and and Household Prospects Prospects Nursery Outlook Income: Outlook and Issues 12:00 Lunch on your own Cotton Luncheon: Hill Views 1:30 Analysts Size Fruit and Vegetables What's in Store Briefing: Health Crop Weather Up theOilseeds Outlook, Minor forTobacco? Care Reform Briefing; Ag. Meteor- Complex Use Chemicals Outlook for ology Open House Rural America (5140 South Bldg., repeats at 3:15) 2:45 Break 3:15 Livestock and Developing Export U.S. and World Poultry: '94 Markets for Aquaculture Sweeteners Outlook Outlook and Industry in a Dynamic Trends Marketplace 4:30 Adjourn 5:15 Sweeteners Reception and Dinner with Guest ii Speaker CONTENTS Session Speaker and Topic Page SESSION SECRETARY’S KEYNOTE ADDRESS AND 1994 OUTLOOK ISSUES 1: Mike Espy, Secretary of Agriculture’s Keynote Address 1 Keith Collins, The 1994 Agricultural Outlook and Underlying Issues 8 Eugene Moos, Agricultural Trade Outlook and Issues 17 SESSION FARM AND RURAL PERSPECTIVES ON THE OUTLOOK 2: Richard L. Gady, Private Sector Perspective on the Agricultural Outlook and Issues .... 25 Karl N. Stauber, Rural Development Issues 32 SESSION 3: ENVIRONMENTAL ISSUES FOR 1994 AND BEYOND Joan M. Comanor, Ecosystem-Based Management at the Public-Private Land Interface 37 . . Diane E. Gelburd, Ph.D., Implementing Ecosystem-based Management in the Soil Conservation Service-What Does it Mean for Land Users? 42 Geoffrey Grubbs, Approaches for Addressing Non-point-source Pollution. No text; refer to audio tape. John P. Burt, Agriculture’s Role in Addressing Nonpoint Source Pollution 47 SESSION 4: FOOD SAFETY AND NUTRITION ISSUES FOR 1994 AND BEYOND Patricia Jensen, Food Safety Initiatives for 1994 and Beyond 53 Dr. Stephen A. Ziller, Food Industry Perspectives on Food Safety and Nutrition 60 Ellen Haas, Food and Consumer Services: Agenda for the Future 65 Marion Nestle, Ph.D, MPH, The Nutrition-Health Connection: USDA Dietary Guidance Policies 71 Michael F. Jacobson, Ph.D., USDA’s Responsibility to Consumers 78 SESSION 5: THE U.S. AND WORLD AGRICULTURAL OUTLOOK FOR 1994 James R. Donald, U.S. Agricultural Outlook 84 iii Session Speaker and Topic Page SESSION 6: U.S. AND WORLD FOOD GRAIN PROSPECTS Craig Jagger and Sara Schwartz, The Prospects for U.S. Wheat in 1994 107 Andrew B. Bellingham, The World Wheat Situation 138 David R. Graves, The Outlook for Rice. No text; refer to audio tape. SESSION DAIRY PROSPECTS AND FUTURE DEMAND 7: James Miller, Outlook for Dairy 146 Ken Bailey, Future Prospects for the Midwest Dairy Industry 150 SESSION 8: FOREST PRODUCTS OUTLOOK, 1994 AND BEYOND Henry Spelter, Forest Products Outlook 158 Dr. H. Fred Kaiser, Forests and Timber Supplies in the 21st Century 167 SESSION FOOD PRICES AND RETAIL DEMAND PROSPECTS 9: Ralph L. Parlett, The Outlook for Food Prices in 1994 179 A Paul T. Prentice, Ph.D., Food Prices and Retail Demand: Macroeconomic Perspective 185 SESSION 10: U.S. AND WORLD FEED GRAINS PROSPECTS Thomas F. Tice and Peter A. Riley, USDA 1994 Outlook for Feed Grains 193 John Stewart, The Decline of Export Corn Merchandising 201 Pete Wenstrand, Producer Views and Perspectives. No text; refer to audio tape. SESSION GREENHOUSE, TURFGRASS, AND NURSERY OUTLOOK 11: Doyle C. Johnson, Financial Performance Trends and Economic Outlook for the U.S. Greenhouse, Turfgrass, and Nursery Industries 212 Gerardus ("Ger") van der Made, New Challenges in World Horticultural Markets 229 Drew N. Gruenburg, Major Legislative and Regulatory Issues Impacting the U.S. Floriculture and Environmental Horticulture Industry 236 IV Session Speaker and Topic Page SESSION FARM BUSINESS AND HOUSEHOLD FINANCE, OUTLOOK AND 12: ISSUES Robert G. McElroy and Charles Dodson, Issues and Outlook for Farm Business Finance 242 Janet E. Perry, Farm Household Outlook: Reliance on Farm Income Depends on Size of Farm 252 James Ryan and Kenneth Erickson, Outlook for Changes in Farm Financial Performance 261 SESSION 13: 1994 COTTON PROSPECTS Robert A. Skinner, Leslie A. Meyer, and Stephen MacDonald, Outlook for Cotton 270 Keth Henley, Ted’s Demise 279 Carlos Moore, Trade Opportunities and Threats for U.S. Textiles 284 SESSION 14: COTTON LUNCHEON: HILL VIEWS Howard "Chip" Conley, Chief Economist, Policy Issues for 1994. No text; refer to audio tape. SESSION 15: ANALYSTS SIZE UP THE OILSEEDS COMPLEX Nancy Morgan and George Douvelis, The Outlook for the Oilseeds Industry: Forecasting is Never Easy 293 Sara Wyant, Five Challenges for Soybean Growers in the 1995 Farm Bill 306 Michael V. Krueger, Industry Views and Perspectives - Oilseeds 311 SESSION 16: FRUITS AND VEGETABLES OUTLOOK; MINOR USE CHEMICALS Dennis A. Shields, 1994 Outlook for U.S. Fruit and Tree Nuts 317 John M. Love, U.S. Vegetable Situation and Outlook 326 Howard R. Wetzel, The U.S. Fruit and Vegetable Export Situation 332 Daniel A. Botts, The Outlook for Minor Use Chemicals and Their Alternatives 341 Paul H. Schwartz Jr, Comment on the Outlook for Minor Use Chemicals and Their Alternatives. No text; refer to audio tape. v Session Speaker and Topic Page SESSION 17: WHAT’S IN STORE FOR TOBACCO Verner N. Grise, Outlook for U.S. Tobacco 345 Daniel J. Stevens, Foreign Outlook for Tobacco. No text; refer to audio tape. Danny McKinney, Grower’s Perspective on the U.S. Tobacco Outlook. No text; refer to audio tape. Murray W. Jones, U.S. Tobacco Outlook From One Cigarette Manufacturer’s Perspective 351 SESSION 18A: BRIEFING ON HEALTH CARE REFORM OUTLOOK FOR RURAL AMERICA This special event is not included in the proceedings. For further information, contact the presenter, Dena Puskin Sc.D, Deputy Director, Office of Rural Health Policy, Health Resources and Services Administration, U.S. Department of Health and Human Services, Room 905 Parklawn Building, 5600 Fishers Lane, Rockville, MD 20857; 301-443-0835. SESSION 18B: CROP WEATHER BRIEFING AND AGRICULTURAL METEOROLOGY OPEN HOUSE This special event is not included in the proceedings. For further information, contact Ray Motha, Supervisory Meteorologist, Joint Agricultural Weather Facility, World Agricultural Outlook Board, U.S. Department of Agriculture, Room 5143 South Building, Washington, DC 20250-3800; 202-720-9807. SESSION 19: LIVESTOCK AND POULTRY: 1994 OUTLOOK AND INDUSTRY TRENDS Steve Reed, Outlook for Red Meat and Poultry 357 Bruce Ginn, Emerging Trends in the Red Meat and Poultry Industries 365 SESSION 20: DEVELOPING EXPORT MARKETS FOR AQUACULTURE David J. Harvey, Outlook for U.S. Aquaculture 385 Joseph P. McCraren, Aquaculture is Agriculture . 392 Joel Chetrick and Steve Beasley, The Evolving Role of the Foreign Agricultural Service in Seafood Promotion 395 vi