as i mentioned, we intend to have something in the fall. i hope many of you can come to that presentation. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] >> in a few moments, agriculture secretary tom vilsack previews next week's meeting of the g-20 agricultural ministers. "washington journal" live at 7:00 eastern would segments on troop withdrawal from afghanistan, highly skilled immigrants, and the national

labor relations board. the house is in session at 10:00 eastern with pledges that a business beginning at noon. members are expected to finish the military construction and veterans affairs bill and begin work on the agriculture spending bill. several live events to tell you about today -- the house energy subcommittee will hear an inspector general's report and how the chairman of the nuclear regulatory commission dealt with the amount to nuclear repository license application. that is on c-span 3 at 10:00 a.m. eastern. on c-span 2 at 1:00 p.m. eastern, the former national security adviser brent scowcroft talks about foreign policy following the annual gerald ford foundation journalism award. also today, the senate commerce committee looks at threats to real security is members here from that of the transportation security administration and the amtrak police talk on c-span 3

at two o'clock 30 eastern. agriculture secretary tom vilsack was at the national press club monday to preview next week's meeting of the g- 20 agricultural meetings. will discuss how industrialized nations can help emerging countries. this about one hour. >> thank you very much and thanks to all who are here today. let me start off with a sobering statistic. the united nations food and agricultural organization says 925 million people were undernourished last year. this is an improvement from 2009 but still unacceptably high. our goal as a nation and as an international community is clear -- to bring down this number by

increasing the availability and the accessibility of nutritious food around the world. as we look to the future, this challenge grows even more stark. the global population is on the rise and strong economic growth in developing countries is expanding middle class is an increasing demand for agricultural products. we will have to increase food production by 70% to feed a larger, richer global population of 9.3 billion people by the year 2015. agriculture will play a role in meeting the growing demand for energy worldwide. it is expected to increase by more than 40% by 200035. the challenge of beating a global, growing population is real and our success is not necessarily guaranteed.

for producers, this is a time of uncertainty and constraint as they confront the uncertainty of climate change and face the constraints of limited water resources. we know the past approaches to solving global under which focused efforts on providing food aid is simply not enough. we need to increase both the sustainability and productivity of global agriculture said that gude is indeed available, accessible, and useful to people everywhere in the world. i strongly believe that our nation, our scientists, our policy makers, and most importantly, our farmers, ranchers, and producers have proven that they are up to this challenge. american farmers are the most creative and productive in the world. each acre wheat farm has become more and more productive, particularly over the last century. america has moved from

subsistence farming of the 1920's and 1930's to being the world's largest food exporter today. this e evolution was not preordained. american producers and based science in pursuit of greater productivity. technology emerged from imagination, creativity, and hard work of scientists from usda, land grant universities, and the private sector. i would say that the principle number 1 as we address this issue of global few -- food security lies in innovation. it arises from research and development. higher productivity need that, at the expense of conserving our natural resources. american farmers have taken steps to take care of our nation's natural resources. in the last 30 years, usda has helped producers to reduce soil erosion by more than 40% and agriculture has gone from being one of the leading causes of wetland loss in the country to

leading the nation in wetland restoration efforts. our forms also helped capture carbon emissions and mitigate climate change. farmlands, pastures, and forested areas through proper conservation efforts help preserve our water resources in clean air. principle number two -- in this effort to find a solution to global free security is that it need not be and should not be at the sacrifice of efforts to conserve our natural resources. two years ago world leaders italy committed to making sustained increase investments in agricultural developments. in the g-20, it will continue to move this to the agenda forward. during the two years, the pope as an extent of cooperation among world leaders has been remarkable it is a merger within our own u.s. government. under the leadership of

president obama, the united states car and has pioneered a new court to approach to working toward global food security. feed the future is a presidential initiative led by the u.s. agency for international development. it is smarter and more efficient because it is focusing on raising the productivity and incomes of small older farmers your country-led strategies. it is focused on a specific geographic regions and value change within 20 countries so that we can significantly invest in priority areas where we will bring about a comparative advantage. in bringing together the capability of multiple parts of the u.s. government, feed the future is also working with multilateral partners in the private and government sectors as well to build local capacity, to sustainably increase productivity and improve nutrition and foster regional trade. the u.s. is also closely

coordinating its efforts with the u.s. aid and usda. and tons of reduced financial resources, efforts must be focused on core competencies. for my department, there are three core areas to identify. innovation through collaborative research, in country capacity building in areas like regulation, and natural resource management, trade and extension and the efficient market development through information, analysis, and statistics. the third most important principle is we must focus on country identified needs and the core competencies of u.s. departments and agencies as well as other developing countries and their national organizations. innovative research is our best opportunity for resulting global agriculture. research in a climate changing era is working to develop an

extent do improved technologies and methods for agricultural water use, efficiency, soil conservation, and basic productivity. at the same time, in obey to genetic research is to aging plant breeding by providing us with a better understanding of the genetic basis of high-yield and stress resistance crops. we're using discoveries about genetic information to better predict and accelerate the results of conventional breeding. selecting untested lines based on genomics rather than labour consuming field trials. in the past few years, usda research as help rebuild the genetic blueprints of a host of plants and animals including corn, soy beans, apples, pigs, turkeys, kale, and the grass with a great potential as a biofuel crop. we have published research with

a full genome sequence of two common pathogens that caused wheat diseases such damage crops around the globe. this work but allows us to buy the best generations of selective breeding and develop disease-control methods to rapidly bring about more abundant nutritious food to tables around the world. this new understanding of genetics is also having an impact on one of the world's most threatening agricultural challenges --ug-99. this devastating fungus is spreading across africa, asia, and the middle east with the potential to threaten crops that feed 1 billion people. the united states is playing a key role to reduce its affect and damage. we have provided more than 14,000 lines of wheat to the screen for resistance at the kenyon institute. we are prescreened lines of wheat before sending them for

field tests. we're increasing the frequency with which can in researchers are finding rust resistance in our wheat and moving us closer toward developing new ug-99 resistant strains. we're taking another step today to strengthen our capacity to combat ug-99. we are celebrating the groundbreaking of a new usda/ug- 99 green house at the university of minnesota. the basics -- is a significant commitment to provide a more stable grain supply worldwide. other u.s. genetic science has helped us lead to a flood-porn rice variety that shuts down during flooding conditions. it resumes growth afterwards. to was developed in conjunction with the universe to california and the international rights research in the philippines, new varieties are helping transform

the food security in the feed the future focus countries like bangladesh. but the african growth and opportunity forum last week, the usda and u.s. a id were proud to announce that through the feed the future initiative, the u.s. ^ will support an african-led partnership focused on controlling a toxin. over 1.5 billion people in the world contain -- consume dangerous levels of toxins. $12 million -- will help us limit the effect of these toxins. other ust private celibate heat and drought tolerance in the beans. i want to take note of dr. carter's research. he has been working on breeding drought-resistant bees.

he will be acknowledged as an outstanding area research scientist at the usda. thank you for your continued efforts. we of all that -- we also have usda-funded projects with new corn and potato varieties and improving fruits and vegetables and specialty crops. this advanced development holds incredible potential for improving sustainable production and nutrition and raising forming at home across the globe. because of our belief in global innovation in agriculture, the genetic information that forms the basis for much of this work is already available publicly. every year, the usda distributes at no cost 150,000 sessions from our seed banks to researchers at home and around the globe. this research effort is not just a domestic effort. much of the best research is being done in conjunction with

our international partners and non-profit funding. it is critical that we not only advocate for continued investment in this sort of innovation but that we also continue to encourage private and non-profit sector funding as well. at the g-20 agriculture ministry, i look forward to see how we can continue to sustain support for such critical research and innovation globally. research alone will not feed the world. people will. farmers and ranchers and the chains of individuals to help harvest, package, ship, sell, and prepare food will as well. to meet future challenges, we must tell farmers to adopt the latest cd technology, improved irrigation systems, for land and animal management techniques. we must help them apply fertilizers and pesticides and herbicides it need be. we must help them regulate the

safety of their food assistance and engaged in the global trading systems of the food supply can be reached -- can reach the demand. good security efforts must be country-led and country-driven. it must refocus at the local and community level. we sincerely want to engage small holder farmers and villages to learn of their ideas about developing their agricultural sector so that we can help them with the technologies, techniques, and crops that that their culture and lifestyle. our focus must also reflect an understanding of the role of women in forming who account for 60% and 80% of farming in developing countries. i want to thank land of light for your continued effort with your partners -- i want to thank land o lakes border continued effort with your partnership in kenya.

we must also insure that food makes it from the farms to the mouse in need. -- to the mouths in need. we must also deal with infrastructure and continue to ensure food safety and encourage a vibrant local markets with transparent information and improved financial services. national and regional governments have an enormous role to play in this effort. our land grant universities and extension agencies that help producers practice successful forming management and marketing have helped them form cooperatives. the usda foreign agricultural service engaged -- engages with ministry of agriculture in over 150 countries all around the world to enable trade to support policies based on sound science and disseminates and practices in less-developed countries. we're focused on building

capacity in countries like bangladesh, haiti,,, tanzania as well as regions in east africa. these regions were selected because of the strength of their political institutions and their vision for confronting under. the hebbel committed to increasing their own investment in agriculture -- they have all committed to increasing their own investment in agriculture. ghana loses up to 40% of its grain supply of cars because of inadequate storage and handling facilities. to help tackle this challenge, usda is collaborate with several land grant universities specialists to develop and deliver a series of training and capacity-building programs to improve storage systems on and off the farm which will minimize moisture losses. our over cochrane fellowship programs expose international counterparts to our american

agricultural systems and innovation. it supports critical human capacity that underpins our growth. in kenya, the cochran foundation fellowship program has helped the canyon plant health and inspector service adopt a port of entry inspection system similar to what we use here in the united states. this is providing direct benefits to the kenyan economy as america is importing some of its fresh vegetables. it has the potential to make a big difference in the region as kenyans who have been trained are teaching pest-resistant and risk-procedures and assessments to government agricultural officers and other east african nations. u.s. food aid programs are driving agriculture productivity, increases in raising the incomes of farmers. this year, they will benefit more than 5.2 million people in the developing world. our food for progress programs

allows guatemala and tanzania to build cooperatives, supporting the extension, linking producers with buyers, and increasing market information and develop the agricultural-financial systems. her old program invests in the future by increasing school attendance, literacy, and food availability for children. this occurs over 30 countries around the world. we are building capacity to design, manage, and fund sustainable national safety net systems like the one we have in the united states with our snap program and school lunch programs that have been so successful in america. as we work to develop agricultural economies, we must remember that sound agricultural policies in the united states and otherg-20 countries are founded by good information. that is what another priority for food security must be increasing transparency in

agricultural systems. that means establishing data collection, information, and regulatory systems so that nations can make informed decisions to establish sound policies, respond to change in policies, and reap the many benefits of agricultural trade. united states supports the u.n. efforts to improve global agricultural statistics, to provide accurate and timely market information and forecasts. we support in country effort to improve data collection and analysis in many countries. we are also working to bolster in the u.s. national agricultural systems and institutions in the feed the future nations. this is so countries can carry out their own food security assessments, monitor and analyze functions in their own country. in nigeria, usda is helping with a pilot project to improve sampling methods and data collection techniques. in places like guatemala, we are

supporting market informations systems so that farmers there to make informed decisions. as these new capabilities assistant table around the world, we believe that there will be less waste and your hundred people but the global community will be better able to mitigate and respond to cropp builders and famines. countries will be able to make more informed agricultural choices as to watch a substantial increase in global commodity prices for the second time in the last few years. it is a good reminder of the importance of replacing -- of embracing food supplies for these measures will get food to people that need it most and help smooth price spikes. the bottom line is, transparent systems in place, farmers around the world will be able to respond to changing market to grow what is most profitable for

their families and most needed by their neighbors, their country, and the globe. the policies adopted by the international community are critical, creating a successful and are meant to collectively meet the challenge before us. at theg-20 meeting next week, we will agree on priorities. it is significant g-20 leaders have singled out food security and are grappling together without to address the problem of high food prices. they're interested in long-term solutions to improve productivity and. i am hopeful we will have constructive conversations about additional thoughts about how to meet the demand of food over time. i will go to the meeting optimistic about what can be accomplished and committed to the role of american innovation in drive and sustainable intents of the case of agricultural production and improved

nutrition around the world. in the end, progress and it is issues is also good for us here in america. it means improved economic opportunities as developing nations grow economically and engage forcefully in global trade systems. it means more stable nations and fewer threats to our national security. working to eliminate food and security across the globe for innovation, hard work, and partnerships will provide incredible economic benefits and natural resource enhancements to developing and developed countries alike. it will increase political stability in conflict and poverty-stricken areas and with countries around the world in our global community on a path to future prosperity. agriculture's role goes beyond feeding and clothing to the world. producers are increasingly being called on to provide renewable sources of energy as well. in the united states, we are looking to biofuels in particular to help confront the challenge is providing adequate

sustainable energy supplies generating economic growth in rural communities and mitigating the impact of climate change. in some cases, the symbols can be met by biofuel production in the rest of the world. as the fao project has shown, by a energy production and use in the developing world is not automatically good or bad. instead, when managed carefully, considering energy needs and environmental needs, economic growth, and food security, bio energy can provide food security by driving investment and investing incomes in rural areas. the global bio energy partnership announced a recent set of measurements to promote the production and use of bio energy as a way to encourage sustainable development. this is a clear reminder that we have to be on the all too common debate which fits -- which pet''

whichagainst food -- a p- pits food against energy. during the great run-up in food and commodity prices in 2007, american biofuel production played a minor role accounted for about 10% of the total cost in food prices. combating hunger and feeding the world, particularly the world's children, is one of the great challenges of our day. giving the child the opportunity for a brighter future affects the child but the community where the child is raised, the country where they live, and the entire world. this is a moral issue and we are proud to be engaged in work that gives children and their families around the world of opportunity to follow their dreams. thank you.

[applause] >> thank you very much for time, mr. secretary. please feel free to submit questions. on your international focus and the discussions in the next couple of weeks, do you think the europe and united states will agree at some point to reduce agricultural subsidies enough to satisfy china and india and unable a restart to doha round? >> is not just america's willingness to consider reductions to the support structure. that is fairly obvious in our physical condition and circumstances that is likely to happen. there is not a corresponding willingness on the part of china and india to be definite and concrete about how open their markets will be.

as we look at any trade agreement, we want to make sure it is fair and balanced very we can quantify what we are willing to do relative to our support structures and systems. we need the same kind of specificity from china, india, brazil and other countries. we want to make sure we're getting a fair deal. >> one of the paradoxes of booming u.s. exports is some of the most food import dependent nations are the ones that have the most amount of food security. when there are price spikes, they bear the brunt because their lack of crop. how do you balance to help u.s. exports with some of the poorer nations to need to be less dependent on exports? >> we are interested in making sure that those developing

countries are able to create rural economies that are strong and can provide greater financial benefit to those 11 those rural areas. i will not forget for quite some time visiting a farmer in kenya was growing corn and beans virtually in the same place on his farm at the same time. his theory was that beans would provide the nitrogen that would in turn allow the corn to be better. we tried to convince him that rotating those crops would be more effective and would increase his heels and allow him to buy perhaps another dairy cow which would allow him to create surplus that would enable him to expand his operation. it is not so much about imports and exports as making sure the productivity in these countries is maximized and they appreciate how best to expand their operations. i think it is important for americans to recognize our rural

areas of this country have suffered for an extended period of time. 9% of the persistent poverty counties in this country are located in rural counties. it amounts to about $11,000 per person per it is necessary for us to create economic opportunity in our own country. we have seen a consolidation of arms to the point where less than 1/10 of 1% of americans produce 85% of the food we consume. as a look at strategies to increase and enhance economic development in rural areas, we have to understand that we have to have strategies for helping small landholders in the u.s. who might benefit from local and regional food systems or who might benefit from having an opportunity to be part of a cooperative and biofuels. we have to continue to allow the commercial side operations

providing our food and opportunity for prosperity. says a combination of meeting our own needs and meeting the excess to provide access opportunities. i think we can balance this properly. with the demand we see and approve an energy side, there is more opportunity for folks in developing countries to expand their operations and allow the united states to continue export and continue to look at ways where we can produce other kinds of products with crops in addition to food. >> you spoke several times about government initiatives to boost agriculture especially in africa. pledges can be notoriously lacking from some countries especially in an environment of budget cutting. how much can government be expected to accomplish in the fight against food insecurity. ? >> the g-20 has made quite a

significant contribution. we have made good on roughly $2.5 billion of $3.5 billion commitment. we will see additional commitments in the next fiscal year. this is an opportunity to focus on the difference between reducing budgets in order to get control of the deficit circumstance and recognizing that additional strategy is growing the economy and investing in the future. there has to be balanced. there are opportunities here for us to develop strong relationships with other countries and create stronger middle-class and other countries which creates demand for products or the united states can produce. it provides for bay -- greater political stability in those countries which means less threats to attend to from the national security perspective which should allow us to take a look at our priorities, our budget priorities.

we would be penny wise and pound foolish to reduce our commitment at the global food security. if we think we have concerns today, wait until we have a more serious ford -- food shortage of water shortage around the globe. at that point, we will see how expensive it can be. we're much better off investing now and expanding systems and encouraging development in these developing countries and making sure they use their agriculture to the fullest extent possible. >> are you concerned that the european union's anti g-mo anti-pesticide stance is encouraging hundred. >> there's a need to continue dialogue with our new partners in terms of the strategies that will work to address global food security. i don't think there's any

question we cannot turn our back on science. this is a significant challenge when you the good of increasing food production by 70%. the amount of land available for prison crop will not grow and likely will shrink with expanding cities and communities. you've got to figure out how to do more with less. the only way you do that is by figuring out ways in which you can use land that is currently not productive and make it productive or use the land that is currently productive and make it more productive. we were a0's, subsistence farming country. if you did not grow it, people did not eat. 75-80 years, we have gone from that point to the place where we are the largest exporter. why is that? it is because farmers embraced science and embrace new technologies. there was reluctance initially. initially there was reluctance to embrace the concept of a

mechanized tractor. over time, folks in agriculture areas overcame those concerns, took the risk, and down the enormous benefit. the same thing will have to hold true in other parts of the world. there has to be a greater embracing of science. there has to be a process by which folks commit themselves to the regulatory system that is based on sound science. we have to get away from some of the parochial views we have had. we are seeing that happen in the united states. there is discussion about our subsidy system which i think is healthy. we will continue to see more of that as we try to confront this major challenge that we face as a globe. this is not one country's responsibility. i think it is really very important for people to have an open mind. they need to take a look at science and we are beginning to see in eastern european

countries a greater acknowledgement and acceptance of sides and that is ultimately going to lead to greater embracing. >> h. l. mencken the journalist once said, "for every complex problem, there is a solution that is simple, neat, and ron." wrong." what are the solutions to food security that you see as wrong? >> some countries have decided to take the position that they will limit the capacity to export. they develop bans on the export of commodities which distorts the market and creates potential for higher cost than would otherwise occur. at a time and there are difficulties, the initial reaction of folks is to sort of look inward and try to hang on to what you have.

i think that is precisely the opposite of what we should be doing. this is a tremendous challenge but a great opportunity for us in the united states to develop a relationship -- relationships it will be willing to look outward. the same thing should be true for other countries. major players consider export bans -- they distort the market and make it more difficult for the rest of us to have transparency of market information to properly priced at properly forecast and properly estimate the status of food which makes it harder for the developing countries rather than easier. that would be one example. >> we have several questions about food safety of the coli scare in germany. how important is expanding the strains of e. coli tested in the

united states? how important is that the proposal the o for themb advances? >> americans deserve to have a safe food supply. we have been fortunate on balance of having a relatively safe food supply. until we do not have a single incident of contamination or people getting sick or tragically dying, we still of work to do. i think it is important for us to take a look at ways in which we can continue to focus on the prevention effort per as we learn more about e coli and we learn more about the strains that could cause problems, we should be willing to step forward and begin the process of testing to make sure we can prevent illnesses and diseases rather than responding to them. what has happened in europe is a wake-up call. it requires us to be

continually vigilant about food safety. it is an everyday responsibilities. if you relax for a moment, it can cause devastating consequences. our hope is that we work with the industry which is just as interested as the usda is and the government is in having a safe food supply. they're concerned about the safety as we are. >> with the u.s. be better off with a single food inspection agency? in the current budget discussion, what impact do proposed cuts to the usda budget and other measures have on the safety of the u.s. food supply? >> i cannot speak about the fda budget but as it relates to usda, our safety inspection system which looks at me and poultry and eggs, most of the budget is people.

some parts of our budget we talk about programs and assistance to local governments and farmers but in the food safety range, we're talking about inspectors who are responsible for making sure what we eat is as safe as it can be. any time you impact their impact to food safety and the budget, you will impact the number of people responsible for food safety which makes it that much more difficult. we will continue to work. we will continue to do the best job we can very we are challenged to take looked at other ways we can do more with less. can we be more efficient? are there systems that would be better? if so, we are now challenged to look at those bags carefully. -- at those things very carefully. it is still 325,000 people who get sick in this country every year from its food-related illness. that is far too many.

there's a consequence to that. their health care expenses, loss of productivity, and tragically, 5000 people died. we need to continue to work on this and continue to improve our safety systems. it does not matter whether you have one system or one department or two departments are multiple departments, as long as those departments have the same philosophy and the same approach. when i come into office, the president instructed me and kathleen said h bilious aths to look at how we could import -- kathleen sibelius at hhs to have the same philosophy on food safety which was preventative. with the passage of the food safety act, it is properly supported, you will seek fda now has much more of a preventative focus which is similar to what usda has been doing for quite

some time. i believe that some of the focus is probably the best thing we can do today to ensure a safer food supply. >> 70% of all antibiotics produced in the u.s. coast farm animals. why can't the usda do more to reduce the infusion of antibiotics into our food chain? >> the simple answer is that that is the responsibility of the fda. [laughter] >> simple can be wrong. [laughter] >> i would never say the fda is wrong. [laughter] having said that, it is important for the usda to work with farm groups and those representing agriculture to make sure that what we talk about when we talk about antibiotics is the appropriate use of them as opposed to an overuse.

we have continue to work to do in that area and we are continuing to work with the industry to make sure that members and farmers and livestock producers understand it is in their best interest in the long term to be judicious in terms of how the use of antibiotics. working with fda and farm groups, we will continue to improve on that th. >> the united states is the largest producer and exporter of ethanol. does it still made subsidies? -- does is still need subsidies? >> when we reduce or eliminate subsidies to quickly, we find out there is an unintended consequence which is a production capacity that is compromised and jobs are lost. at a time when we need more people working, we have to be careful about what we do relative to the support for the

biofuel industry. there are over 400,000 votes employed in that industry. when the by a diesel tax credit was allowed to expire a year or so ago, we saw 50% of production capacity and immediately and 12,000 jobs lost. in rural america, unemployable levels have historically been higher than in other parts of the country and poverty rates higher. if we are going to aggressively address the imbalance in our economy, we have got to have new opportunities and alternatives for job growth and income growth in rural areas. if we're to meet the president's challenge of reducing our reliance on foreign oil by 1/3, we will need to have a robust fuel industry. we need to move away from corn- based ethanol which everyone recognizes and we are doing. the usda is helping to sponsor a

variety of alternative he stocksalgae to agricultural waste to create new supplies and new ways to produce ethanol. we have to make ethanol more readily available, making sure the distribution systems throughout the united states is convenient for consumers. if we had not had an ethanol industry, if we could magically waving a magic wand and the entire biofuel industry would leave the country, everyone in this country would be paying about 90 cents per gallon more for gas. it gives us an opportunity for competition and innovation and job growth and an opportunity for rural communities. when reach the 36 billion gallons threshold which congress says we need to be within the next decade or so, we will reduce our reliance on foreign oil by about 17% which happens

to be the percentage we currently import from middle eastern countries. that is an area of the world which is unstable and that is reflected in the cost at the pump. the want to stabilize that cost, stabilize energy costs in this country and provide more economic opportunity, we have to have a robust commitment to biofuels. we will not continue subsidies forever. do they have to continue until we reach 36 billion text no, but we have to be careful and the way in which we go about reducing those subsidies. the time has come for us to redirect some of that support for helping the industry provide more convenient supply and encouraging detrick to consider the very small investments of $150 per car to make every single vehicle coming off the line a flex fuel vehicles. we have roughly a million cars in the fleet today of 230 million better flex fuel

vehicles. if we increase that, it will provide increased market opportunities. there's also a national security imperative here. an mou 's a signedn to increase biofuel because it is not comfortable meeting our national security needs by relying on unstable sources of oil. that much more per for relying of our own capacities within the united states. i understand people's desire and the need for us to be fiscally responsible, we don't want to cut our way out of a growth opportunity. there are a million jobs at stake here potentially as we expand this industry and over $100 billion of capital investments needed in rural areas so we get more economic activity. i think we have to be very careful about that. >> you've got a three-legged

stool and biofuels. you have a blunders credit, a 54-cent tariff on ethanol imports and you have a mandate, 13.2 billion gallons this year rising to 15 billion. you have this mandate that requires more than 13 billion. last year it was 13.6 so when you are looking at that, why can't you get by with the mandate which requires about the same production level and save taxpayers $5.7 billion ble innder's terrace. i covered it. >> yes, you did. you have to be careful about the cities to the taxpayer. when you compromise the jobs that are currently in the industry to the extent you compromise the capital

investments already made, you may see a loss of revenue as a result of job losses. i think it is fairly clear that the tower of with brazil will be phased out over a period of time. -- that the tariff with brazil will be phased out over a period of time. they have challenges with their own production process. the reason why you need assistance and help is because you are bumping up against the 15 billion gallons threshold corn-based ethanol is ultimately kept out -- tapped out in terms of renewable fuel. the next 21 billion gallons have to come from a source other than corn-based. you have to work to get the new feedstocks to a point where they are in efficiently produced and they will need some help and assistance to get there. the benefits to the country of

more jobs in rural america, more capital investment, a stronger bottom line for producers, alternatives to use non- productive land or productively, opportunities for new innovations to occur and buy products that occur from this process which helps the livestock industry and other businesses, tremendous opportunities there. there is also a trade component. i think you have to be careful in terms of this debate that we don't live in our capacity to grow our way out of a deficit. usda has done a good job so far in terms of responding to the deficit. we knocked out $4 billion in crop insurance costs and applied that to death as a reduction last year. the continuing resolution was passed by congress and hit usda as hard as any other part of government. we took a 10% cut to our discretionary spending and the house is considering another 13% on top of that. we are helping but i am very

concerned that we will limit our capacity to grow our way out of this deficit. >> one final question on ethanol -- it is such a fascinating subject because i covered it. the $15 billion limit that we will have around 2015, there is already a component that is put in there that tends to get weighed every year because the capacity of the industry is not to that point. when the 15 billion comes and corn continues to be productive and farmers continue to a bumper crops, will we hear that people don't ce a.d.llulosic at all? >> the key for this industry is to become a national as opposed to regional industry. most of what is happening in ethanol production is located in the midwest. our goal is to make sure that

every part of the country has an opportunity to produce biofuel and the way that is most convenient and efficient and effective for them. it may be in the northwest use a different process and in other areas to use other processes. there are tremendous things occurring in this space that will lead to new opportunities. consider how it is that america built a strong middle class, built the strongest economy in the world. it was because we were in the business of innovation and making in creating things. we have been out of the business for far too long pretty biofuel industry is one way we get back into that business. we will produce not just biofuel but we will find there are a multitude of other products and by products that will rise from the production process. in shenandoah, iowa, there's a facility producing ethanol the traditional way. there are three components when

the corn goes in, protein, starch, and co2. the start is used to produce the fuel. what you do with the protein? you make of livestock feed. 1/3 of the corn crop comes out of livestock feed. what do you do with the co2? this company decided they would use it with heat from the production process in reclaimed water and produce algae. they could get that every day through a vertical and horizontal format. you will be able to have a tremendous crop of algae that can be used as an aquiculture feet or cosmetics or as a feedstock for fuel. there are 30,000 different kind of algae. the formula that the president has established to rebuild this economy is relatively simple.

the government will spend less but spend wisely. we will have an economy that once again makes, creates, and innovate. because of that, we will create -- will be able to export that opportunity to the rest of the world and we will be able to create wealth of this country. that has worked in agriculture. it has worked in agriculture. less debt in agriculture, more productivity, larger exports today that we're looking at income levels that could be the highest they have been in some time. >> we have a lot of questions about conservation and the environment. -- what ise role of sui oft the role of the current suite of conservation efforts? >> conservation is about

preventing soil erosion and improving water quality. we're beginning to take a look at how we use our conservation programs would then they suite of conservation programs and see how well we are doing in soil erosion and doing things about things getting into the water. we find that farmers are voluntarily embracing conservation. we find conservation makes a difference with soil erosion being reduced and less pesticides and chemical getting into the water but there is more work to be done. it is important and relevant in terms of water quality in particular that we combine a suite of conservation practices. secondly, they must be combined with nutrient management plans for it when you combine those two things, you see the most significant gains. we have assess this in the

chesapeake bay area and mississippi and we're doing an assessment in the great lakes area and we will find that message being constantly supported. conservation is about preserving the quality and the capabilities of the soil. we're working with international -- our international partners to make sure the conservation is part of the discussion, the training, and the education we are undertaking with the the future and our agricultural efforts in other countries. we don't want productivity to be at the expense of the richness of the soil. if the soil is not rich, it will stop producing. >> we're almost out of time before asking the last questions, we have two important matters to attend to. we must remind our audience of future luncheon speakers. tomorrow, brent scowcroft, the former national security council chair under president ford bills began the annual gerald ford journalism award here on june 24, we have sheila bair, the

chairwoman of the fdic talking about the federal response to the financial crisis. on june 30, gary sinise will announce the formation of his foreign-and -- of his foundation which will raise funds for charity supporting the military. second, i would like to present our guest with the traditional national press club mug. [applause] how about a round of applause? since you are a three-time speaker, you can hand them to your children when you have breakfast. final question, one of the bigger stories in recent weeks was the release of the my plate food icon replacing the food pyramid. it is a plate with different portions symbolizing grains, proteins, fruits, and vegetables. and barry on the side.

-- and the debris on the side. next to that, there is this for. there is nothing assigned as a value for the fork. what is the symbolism of the fork [laughter] ? >> wellcomealan-- [laughter] >> is what we use that usda to lead with. [laughter] i don't know if you would use it for. [applause] having said m that,y plate is a great opportunity to send a concrete simple message to folks about portion size and importance of a balanced nutritious diet which this country needs to pay attention >> >> thank you secretary [applause] . thank-you to you all for coming today. we would like to thank the national press club staff. organizing today's event in a

confined more information about the national press club on our website at you like to get a copy of this program, please check out our website. that is so much for coming here today. this meeting is adjourned. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] >>." later today, the house of representatives will take the agriculture spending bill and you concede that debate live on c-span. there are several other live events to tell you about. the house energy subcommittee will hear an inspector general's report on how the chairman of the nuclear regulatory commission dealt with the yucca mountain repository license application. that is on c-span 3 in about three hours at 10:00 a.m. eastern. on c-span 2 at 1:00 p.m. eastern, former national security adviser brent scowcroft talks about foreign policy

following the annual gerald ford foundation journalism award. the senate commerce committee will look at threats to real security as members here from the heads of the transportation security administration and the amtrak police. that is on c-span 3 at 2: 30 eastern p.m.. up next, today's headlines and your call "washington journal slide on." the house is in session for general speeches at 10:00 eastern with legislative business beginning at noon. members plan to finish the military construction and veterans affairs bill and move on to the agriculture spending bill that we mentioned a few moments ago. in about 45 minutes, we will be joined by the republican rep jason chaffetz. he will take questions about military action in