so i said to him, i said, with -- if you had carte blanche and you could come up with any policy that would help the united states be more competitive and do a better job in manufacturing and just be more competitive in the world what would you recommend? without blinking an eye, he said you need a department of trade. you've got a department of education. you've got a department of health and human services. the department of this and that. you need a department of trade. we've got to be very aggressive. it's not just re-organizing. it's orzing for the purpose of being more effective and aggressive in knocking down trade barriers. we americans tend to be the good guys. we tend to be the big brother let's little brother nip at our

heels. we can't keep doing that. those days are over. they've been over for some time. we don't wear white hats when it comes to trade. we have our provisions, too. other countries aren't darth vaders. they don't wear just black hats. but it is also clear that the shade of gray of their hats is a lot darker shade of gray than the shade of gray of our hats. and we've got to be more aggressive to make sure the shade of gray evens out a little bit. this is outrageous. i will raise the level and say we've got to be a lot more aggressive that be we've been. and i highly compliment the senate for making this effort. >> well said and let me echo that we want to open markets and fight trade barriers and we need

to do both. if there is any further comments on the johanns amendment? >> i'd like to express my support for the amendment as well as the fact that as a form former u.s. secretary, johanns knows of what he speaks. if he feels the need is there for re-organize, i think he's right on it. i certainly agree with the smart baucus. there's so much more we can do with trade. >> thank you. any further discussion? if not all those in favor say aye. those a posed nay. the amendment is adopted. thank you. are there further amendments in title three? having none, then the title is closed. we'll now move on to the next on our list, title ten, the horticulture title.

thissen clouds specialty crops. are there any amendments in this title? if there are no amendments in this title, then the title is closed. excuse me, senator roberts. i think we're fine. so thank you very much. if there are no amendments in this title, then title ten is closed. now we'll move on to title seven

which is extensions. we're very pleased with a tremendous amount of work we've done. we've heard from farmers. we've heard from all of you. we all know how important agriculture research is and this title continues. the critical research initiatives we've had in place also aides a new nonprofit research foundation with dollars in it to bring public and private dollars together to senator cutting edge research which is pleased to join with senator robertss in doing this. senator thune and i have worked on this issue as well with another tax bill. i appreciate your work on this. senator roberts did you want to speak to this? >> i think in the interest of time, let me agree with your remarks. >> thank you very much. do you have any amendments to title seven? the research title?

seeing, none, the title is closed. we'll now move on to title five which is credit. the average american farmer is over 60 years ole and a shortage of beginning farmers has threadened the future of america. it's a priority for us. we continue the assistance in this title for beginning farmers and family farms. is there any amendment to title five? seeing none. the title is closed. we'll move on to title six. rural development. let me comment someone who grew up in a small town in northern michigan this title is near and dear to my heart and i know to all of you rural communities face serious economic threats and erosion of a way of life

that stretches back many generations. this makes sure our rural communities can thrive in the future. part of what we've done here is to work very hard to remove due politicstive programs, authorizations to organize the title in a better way for consistents. we heard from local officials that came before the committee, you want to figure out how to use the rural development title. any amendments in rural development? >> madam chair. >> senator casey. >> madam chair, i have one amendment that i would like to offer. and make a few comments first.

we know that agriculture provides a critical source of income to many and many rural americans and remains the backbone of rural economies i know across the commonwealth of pennsylvania as well as the country. farming is essential to rural development. local farms are job creators in our communities. >> excuse me, senator casey. we are not clear on which aem if you could just reiterate the number. >> number one. >> thank you very much. casey number one. >> this aem will support local farm businesses which are an essential source of economic activity and vital to getting healthy local food from farm to table. this amendment enhances local food systems and encourages production of food for local communities through the rural micro entrepreneur assistance program. the amendment will support jobs

in ag production by supporting local food entrepreneurs can supply food to local distribution chains. these organizations help local producers to successfully meet local service area opportunities, provide technical support, recruit, education and assist local producers to advance local farming opportunities. it would also enhance the growing movement toward buying local products and ensure that we support local producers in that effort. i also have two other amendments related to rural development which i will not offer today. but i wanted to discuss the importance of rural development programs for supporting rural economies and creating good jobs. one of the amendments would encourage production of darely

produ -- dairy products. the other amendment that i will talk about briefly would add much needed clarity to the rural development programs may fund new opportunities as part of economic development not just annual production loans, federal r and d dollars can funnel much needed investments in rural economies if authority were granted to r and d funding to support new businesses within the r and d sector. specifically to encourage beginning farmers to establish new farm support enterprise. with that -- >> thank you very much. it's my understanding that you're speaking but not offering these aems, is that correct? >> these other two that i mentioned. >> casey number one. >> offering number one. >> okay. senator roberts.

>> thank you senator casey for at least discussing all three. the micro entrepreneur assistance program the act ro -- is very popular. the eligibility pool is limited to nonprofits that lend to public agencies and other nonprofits. this is really not what the program was designed to do.

there are a number of other programs under this title. and other titles that support expanding business for local and regional producers and be happy to work with the senator on all of these fronts. the spirit of reducing overlap and duplication i respectly oppose this amendment. >> madam chair, i may not agree with the assessment by the ranking member. but i was mistaken. this is the amendment that i'm offering and withdrawing. >> thank you. you raised some good points. there are questions if it would be better done in another title, but we'd like to work with you. >> our staff did a good job. >> thank you. other amendments? >> i don't have an amendment. i would like to thank you for

accepting the cochran amendment. i think it was included in the manager's amendment. we appreciate that. that is an authorization. again, that has the ability to provide a grant program that we'll does help some of the most impoverished counties in america. we appreciate you and the ranking member. >> thank you very much. are there any other amendments to title six? seeing none. the title is closed and will move to title eight which is our forestry title. i would just say that the health of america is nearly 750 million acres of forest is critical to the future of our economy and our way of life. we all know that forests give us clean drirning water, key wildlife habitats and recreation

lal opportunities for our families. and while conservation title gives many tools to foresters to manage their land, additional efforts to preserve and improve our nation's forests are included in this title. are there any amendments to this title? title eight. seeing none. the title is closed. title nine, energy. at the first farm bill hearing of the new year we heard from farmers, biobase mfrtsers, others who are involved in the area of energy production who are very excited about the economic opportunities in the new bio economy. thousands of farmers have improved their bottom line thanks to the rural energy for america program. the biomass crop assistance program has helped innovative companies create thousands of jobs and biobase plastics and chemicals could create again hundreds of thousands of jobs in

america. this thielt is a prime example of the job creating example of the farm bill. i believe when we grow it here and make it here, the jobs are here. and that's why the energy title is about. other amendments? we understand that senator conrad is on his way to offer the amendment. i know several colleagues have been involved with to the energy title, let me just say as he is coming that we have worked very hard as we have been able to score the bill as a result of a number of additional savings we have been placed in a situation where we can in fact have a strong energy title with dollars we have saved. that's a very important piece of

what we are doing. and at that point -- senator, bennett, did you want to comment? >> you want something to say something nice about this this work? >> yes, would you do that please? >> i'd be glad to do that. i want to chime in with my support particularly the inclusion of the rural energy savings program act. a bill that would provide loans for the communities. a strong supporter of this for a long time. i enjoyed last congress when this panel's subcommittee received testimony on this measure including the executive director of the colorado rural electric association kent singer. i remember the hearing extremely well because it was the first one that i ever chaired and much more memorable than that senator dick luger stayed for the entire hearing start to finish, for which i was very grateful.

i appreciate his leadership on the issue and of course, thank senator conrad for pulling the amendment on the rural savings act into this larger package. i would urge people to support the conrad amendment when he gets here. i don't know if anyone would like to speak about the energy title at this point? we'd be open to comments. otherwise i think at the moment we will put this aside not seeing senator conrad, i know he wants to be here. he's worked very hard on this. senator? >> madam chairwoman, i decline to offer amendments in two earlier titles. but i would like to have a moment to comment on them. >> are these titles we've already closed. >> correct. >> yes, please. >> with regard to an amendment to title four, one of the issues sha we concern ourselves in new york is the issue about classic breeding of seeds. classic breeding has allowed

farmers to select for desirable traits in both plants and an malls for thousands of years. in fact, few would argue that the ability has been and continues to be once o'the principal tenants of modern agriculture. while the relative recent advancements in science have proved invaluable in moving forward, we must continue to facilitate efforts for classical breeding in the united states. i talked to a farmer in my state. she told me the experience of working with cornell university to develop an early ripening disease resistant sweet pepper. they were able to adapt it specifically for climb and soil conditions in new york. i believe if we can focus our efforts in allowing this research it would be very productive for our farmers. as part of the 2008 farm bill, congressman dated that the breeding be prioritized by setting aside just 5% of the afri. in the 2012 farm bill for

classical breeding research we have the opportunity to rest assured that this vital part is both hoefkly and looking forward is given its due. i wanted to emphasize my support for that. the second issue that i wanted to mention is on title five about traceablity. this amendment would require the secretary to publish the new usda food safety and inspection trace back program for procedures e. coli no later than june 1 of this year. this is a public safety issue. it's an issue that has been reported widely in the media that we need to be able to trace back when there is tainted food supply. the trace back program will allow to trace food and food producing animals from point of slaughter to retail sale whenever a 30 positive test is identified. it currently on traces back to the source of the grout break.

this is unacceptable because products can be sent further down the processing chain without any cons senses or holding anyone accountable for the source of the contamination. the secretary promtsed to prom el gait these procedure last fall. it finally cleared omd review march 30th of this year. it has in the yet issued the report. as we are quickly approaching the outdoor grilling season i think it's really important to implement this new policy now. thank you, madam chairwoman. i hope you will help me work on both of these issues moving forward. i withdraw and not offer my two amendments on this issue. thank you. >> thank you very much. we will work with you. i think at this point i'm not seeing senator conrad. so we will put aside the energy title, title nine for the moment. when senator conrad arrives, we will move back to that. yes. >> i apologize for not being

here. that's always aknowing to those that have been. i ask unanimous consent for a brief amendment to go back to title title 5 for a brief amendment. >> is there objection? is there no objection? we can go back to the credit title. >> yes. amendment number 6. it provides usda with the authority to provide pilot project on a limited scale to test different approaches that could improve delivery and customer service. the amendment is -- the problem is that i -- when we know that the farm service agencies have a proud history of searching beginning in socially disadvantaged farmers and ranchers. farmers who need usda support the most, current status requires they apply to all situation. we're increasingly finding one size fits all doesn't work for agriculture everywhere. and it's not really meeting the

unique needs of present day agriculture. our amendment gives flexibility to develop and test processes and procedures that make their products more actionable and prove program delivery. a simple amendment. brown amendment 6 to the credit title and i ask concurrence with the committee. >> thank you very much. is there any further discussion on the brown amendment number 6? >> thank you. >> i share your support for the amendment, senator brown. >> thank you. >> if not, all those in favor say, aye. >> aye. those opposed, nay. the amendment is adopted. thank you. >> i apologize. thank you. >> given the fact we are still waiting on senator conrad, we will now moosh on to -- move on to our next title which is title -- yes? senator chambliss? we are putting energy aside, unless -- yes. put it aside only because

senator conrad is the author of the energy amendment and he's not here yet. as soon as he's -- he's now here. all right. well, we will proceed then to the amendment. i understand senator chambliss you have a second-degree amendment but i think we should proceed first and give senator conrad the opportunity to offer the amendment. and as i indicated, senator conrad, this is one of the areas we all worked on very, very hard. we knew in our initial mark it was an area where we needed to do a lot more work, and i'm very grateful for your leadership and those co-sponsoring the amendment. senator conrad? >> i thank the chairlady and the ranking member. i'd also like to thank the bipartisan co-sponsor of the amendment. for their support. i'd like to give particular thanks to senator lugar for his close work on this amendment as

well as senators harkin and thune, and their staffs, who helped craft key parts of this agreement. i was also pleased to co-sponsor senator harkin's rural energy investment act in april which helped guide us in this amendment. i'm glad we've been able to reach a broad agreement on providing the mandatory funding for vital rural energy programs in the farm bill. i would ask unanimous consent to bring up the modified version of conrad amendment number 1. >> so ordered. >> this version includes technical corrections that clarifies that usda can continue to exercise the authority granted in the 2008 farm bill to exclude potentially invasive or noxious species of plants from eligibility for the biomass problem assistance program with regard to the 216 million dollars in total mandatory

funding provided for section 9003, biorefinery assistance program, the modification place as cap of $25 million on the share of funding that may be used for biobased manufacturing and provide as definition of biobased manufacturing as well. finally, the substitute language no longer includes the catastrophic risk premium reduction or cat rerate offset of $334 million included in the original amendment. however, extra savings in the mark identified by the chair will recover the remaining estimated cost ofs 3ds 04 million so that the amendment will be fully offset. the mandatory funding, the amendment provides $800 million over knive years mandatory funding for rural energy programs in title 9, section 9002, biobased markets, $15

mshgs 9003. assistance, $216 million. i think there's a need for me to go through each of these. the amounts readily set out in the amendment. there are several important policy improvements provided here. one, it revises the biomass crop assistant program to improve functionality and reduce costs. two, saves costs to farmers and ranchers by removing the reap remeter rule. authorizes funding for the rural energy savine program to allow customers for efficiency upgrades paid back on monthly electric bills. offsets, the funding is offset in part by removing funding for the economic adjustment assistance to users of upland cotton program. that's $476 million. the substitute language, again,

i want to emphasize, no longer includes the catastrophic risk premium reduction offset, but there are additional savings in the mark that the chairman has assured me will cover the remaining estimated cost of $304 million. so the amendment will be fully offset. with that i'm happy to answer questions. again, i want to thank significant majority of the committee as co-sponsoring or supporting the amendment and i want to appreciate those on both sides of the aisle who spent a fair amount of time adjusting this so that we could reach an agreement. >> thank you very much. senator roberts, and then i'll refer to senator chambliss. i know, for a second degree. >> madam chairwoman i relucta reluctantly oppose this amendment. it would provide mandatory funding to several of the energy title programs as the senate outlined. it would also create a new program, the rural energy savings program.

and i know that several members and senators noted a majority support these programs, but i have very strong reservations about providing mandatory funding in this title, and the creation of a new program. throughout the process we have tried to be, or we have made every effort to be focus and finding a path to reduce federal spending, streamline programs and address areas of duplication. i respectfully suggest that this proposed amendment misses that mark. y will vote against the amendment and urge my colleagues to do the same. >> senator chambliss? >> thanks, madam chair, and i had a second-degree amendment that i need to make sure whether i need introduce it or not. let me ask a question to senator conrad. as i understand itting -- it, your amendment calls for $800

million of mandatory spending to go to the energy title, to fund your amendment. now, we've got, gee, i don't know, what was it? about $2 billion differential from the $23 billion and cbo scored us at about $25 billion. are you now taking that money and paying for 100% of your amendment or still taking part of your money out of the upland cotton program? >> let me turn to the chairwoman, because there may be a way around this, but i think we have to hear from her. >> yes, thank you. we have, in fact, been conferring since we have received the final score on the bill this morning. we do have the ability and i haven't had a chance to talk with senator conrad about this. we do have the ability to accept your second degree to strike his provision as a pay-for, and to

use savings, other places in the bill, to be able to do it. so if you would like to offer that, we will accept it, unless there's any objection from the committee. >> okay. well, my second degree that i'd like to offer just strikes that portion that you referred to as funding. >> i'd even co-sponsor your second degree. >> if there's -- >> how's that for comedy? >> well, i knew you wanted to go out in a blaze of glory. [ laughter ] >> look, i -- >> it's always my preference if we could fund this from another place, there were frankly other members of this coalition who felt differently. it was never my feeling. so if we can do it out of a savings other place in the bill, i'm eager to do it. >> madam chair i would offer my second degree to strike that portion of the conrad amendment that calls for the offset and