USDA ACTIONS TO ASSIST AMERICA'S PORK PRODUCERS
                                
                                           Release No.  0523.98
                                        
Fact Sheet
                                
        USDA ACTIONS TO ASSIST AMERICA'S PORK PRODUCERS
                       December 24, 1998

     The U.S. Department of Agriculture has responded quickly and on many
fronts to help America's struggling pork producers.


Increasing demand for pork products.  

          USDA has purchased over $70 million in pork this year to bolster prices
     and provide nutritious food for federal food assistance programs.  The
     Department will purchase an additional $50 million of pork products by
     March, 1999.  

          This week, Vice President Gore announced an additional $15 million buy
     of pork for distribution to the needy. 

          Secretary Glickman contacted officials at the Department of Defense,
     Department of Veterans Affairs, Bureau of Indian Affairs, and Bureau of
     Prisons, agencies that routinely make large volume meat purchases, to
     encourage the procurement of increased quantities of U.S. pork products. 
     

          Secretary Glickman met with representatives of the retail food industry
     to urge them to take advantage of large hog supplies by featuring pork
     products and reflecting lower farm prices in their prices to consumers. 


Promoting pork exports.  

          Secretary Glickman included 50,000 metric tons of pork in the Russian
     food aid package that was signed yesterday.  He also pledged to expedite
     movement of that product.  Tendering for the pork may begin as early as
     January.  
                                        
          Secretary Glickman has approved pork as an eligible commodity under
     nearly every allocation of GSM-102 credit guarantees.  He has also said
     that he expects pork to be included in a package of export guarantees
     for South Korea. 
                                             
          USDA's Foreign Agricultural Service is working closely with the pork
     industry to maximize use of these credit guarantee lines, including
     holding seminars to assist exporters who may not be familiar with the
     credit guarantee programs.

          This year, USDA has targeted more than $12.5 million to promote sales of
     U.S. pork, beef and lamb in overseas markets.  U.S. pork exports are up
     19 percent by volume this year.  Since 1992, pork exports have more than
     doubled and are now over $1 billion.

          The Clinton Administration continues to make progress in negotiations to
     lower tariffs and expand market access for U.S. pork going into
     Venezuela, Singapore, Taiwan, the Philippines, Jamaica and Argentina.  

          After lengthy negotiations, USDA won agreement allowing slaughter swine
     from 33 pseudorabies-free states to enter Canada without undergoing the
     previous 30-day quarantine.  This should greatly facilitate movement of
     slaughter hogs into Canada.  Secretary Glickman has also contacted
     Canadian Agriculture Minister Lyle Vanclief to encourage Canadian action
     to help alleviate the economic crisis in the U.S. pork industry.

          These efforts appear to be effective.  U.S. pork exports for 1998 are
     forecast 18 percent higher than 1997.  Japan, the leading importer, is
     8.5 percent ahead of last year's pace and exports to Mexico are up 70
     percent.  Overall, USDA projects pork exports to be up over 60,000 tons
     for 1999.

          
Increasing hog slaughter.  

          USDA's Agricultural Marketing Service has restricted recently announced
     federal bonus purchases to hogs slaughtered on Saturday or Sunday.  

          Secretary Glickman met with representatives of major slaughterers and
     processors to encourage increased slaughter.  


Expanding financial protections for pork producers.  

          FSA will help producers applying for loans by basing anticipated pork
     prices on futures contracts rather than on the lower, current market
     prices.

          FSA is streamlining its loan guarantee procedures to make them easier
     and less complicated for lenders. 

          FSA is working to rapidly process all loan and loan guarantee requests. 
     

          Secretary Glickman met with representatives of major lenders in hog-
     producing states to encourage loan restructuring and patience until
     intervention steps have a chance to work.

Reviewing pricing information and pricing practices.

          USDA's Grain Inspection, Packers and Stockyards Administration is
     examining current price spread and packer pricing practices focusing on
     packer competition for retail sales to determine why wholesale prices
     have not declines and to determine if the market is operating
     competitively.  

          USDA's Agricultural Marketing Service will publish improved market
     reports for live hogs beginning in January.  

          Secretary Glickman met with representatives of major slaughter companies
     to encourage greater cooperation with market news reporters.  


Additional actions.

          Secretary Glickman imposed a moratorium on USDA credit lending for new
     pork production facilities.  This is an important signal to the market
     and to lenders that USDA is taking bold steps to deal with this crisis.

          Secretary Glickman has accelerated USDA's voluntary pseudo-rabies
     eradication program by developing an indemnification program that could
     remove up to 1.7 million hogs from the market, achieve pseudo-rabies
     free states for the United States, and open new foreign market
     opportunities.

          Secretary Glickman has also created a Pork Crisis Task Force within USDA
     to recommend additional actions to help hog producers during this
     stressful economic period.

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