Remarks by Secretary of Agriculture Dan Glickman New Markets Initiative Hermitage, Arkansas November 5, 1999 Release No. st006.99 Remarks As Prepared for Delivery by Secretary of Agriculture Dan Glickman New Markets Initiative Hermitage, Arkansas November 5, 1999 "Thank you very much, Mayor Colvin, for that kind introduction...and for the tremendous reception you and your town have given us today. I also want to thank Jill Long-Thompson, our Under Secretary of Agriculture for Rural Development, who is such a strong leader for communities like this one around the country. "As Secretary of Agriculture, people watch what I eat and listen to what I say about what they should eat. So I want to say loud and clear here today: tomatoes are good for you, and we should all eat more of them. "It's a great honor to be here with President Clinton, who has been rural America's number one champion, not just as President for nearly 7 years but as Governor of this fine state for over a decade. "As a son of rural America himself, I think the President would agree with me that there is something unique about places like this -- the informality and social cohesion neighbors helping neighbors...people feeling vested in their communities. With apologies to the creators of the television show Cheers, I believe that rural America is the place where everybody knows your name. "But to ensure its continued viability, rural America needs access to the tools and infrastructure that make communities competitive in the modern world. That's why the President, even as he turned a mammoth federal deficit into a surplus, actually increased investments in rural America. The result has been a kind of rural renaissance lower unemployment, population growth, higher per capita income, record rural homeownership, and more. "But rural America still lags behind the rest of the country when it comes to earnings, employment, education and other key economic indicators. So we still have a lot of work to do to ensure that places like Bradley County are not left on the outside looking in at this strong national economy. "Limited access to capital is one of the major barriers to growth in rural America. At the Department of Agriculture, we do our part, with loan and grant programs for everything from telecommunications systems to single- family housing. "And now, I'm proud to announce that we've reached an agreement with the National Bankers Association that will make over $18 million in credit available to qualified minority-owned businesses and limited-resource farmers and ranchers. The loans will be guaranteed by USDA. I want to thank the National Bankers Association and its members for this extraordinary commitment. This kind of partnership is what the President's New Markets Initiative is all about. "Hermitage, Arkansas is the perfect example of the potential in these New Markets. Hermitage has shown how a few innovative folks -- with some help from their government and a commitment from the private sector -- can help turn a community around and create a brighter future for all of its people. "In 1996, the tomato growers here were in trouble. Several were on the verge of going bankrupt. Their marketing opportunities were limited; their processing equipment was insufficient; and their sales were suffering. So they banded together to create the Hermitage Tomato Cooperative Association, giving themselves the financial resources to buy their own processing and packaging equipment. "At about the same time, an agreement put together by the Department of Agriculture helped the Hermitage farmers become a supplier for Burger King. If I may say so, it was a Whopper of a deal...which allowed everyone to have it their way. The Burger King relationship helped the co-op attract other customers like Kroeger and SuperValu. And within two years, sales soared from $60,000 to nearly $4 million. "USDA has continued to invest in this cooperative, with terrific results. $4 million in loan guarantees has allowed the tomato growers to finance the purchase of two processing plants. That has created additional, non-farm jobs in the community and moved the co-op's total employment to 116. This co-op, founded only 3 years ago, is now the economic lifeblood of this community. "And with this success, the cooperative may now be able to diversify. They are experimenting with the production of greenhouse tomatoes, which would allow them to expand to a 9-month growing season. "There's been a lot of pain and struggle for America's small farmers and ranchers these last couple of years. On top of low prices and weak export markets, they're trying to do business in a top-heavy farm economy, where so much is controlled by so few. That's why co-ops like this one are essential. I wish all farmers could make a living just producing bulk commodities. But for many, unfortunately, it just doesn't work that way anymore. To survive, they need to have some kind of ownership in the marketing, processing and distribution of their goods. That way, they get to keep a greater percentage of the consumer dollars spent on the food that they produce. "Co-ops will be a big part of farming and rural growth in the 21st century. And USDA will continue to be there, with the resources and technical assistance necessary to support them. "The tomato growers of Hermitage deserve our congratulations for their creativity and entrepreneurial spirit. This is a remarkable success story that I want to repeat in every rural community in America. "It's now my pleasure to present one of the leaders who made it possible: Director of the Hermitage Tomato Cooperative Association, Randy Clanton. #