[Senate Hearing 107-933]
[From the U.S. Government Publishing Office]
S. Hrg. 107-933
NOMINATION HEARING FOR NANCY PELLETT
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HEARING
before the
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED SEVENTH CONGRESS
SECOND SESSION
__________
OCTOBER 3, 2002
__________
Printed for the use of the
Committee on Agriculture, Nutrition, and Forestry
Available via the World Wide Web: http://www.agriculture.senate.gov
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COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
TOM HARKIN, Iowa, Chairman
PATRICK J. LEAHY, Vermont RICHARD G. LUGAR, Indiana
KENT CONRAD, North Dakota JESSE HELMS, North Carolina
THOMAS A. DASCHLE, South Dakota THAD COCHRAN, Mississippi
MAX BAUCUS, Montana MITCH McCONNELL, Kentucky
BLANCHE L. LINCOLN, Arkansas PAT ROBERTS, Kansas
ZELL MILLER, Georgia PETER G. FITZGERALD, Illinois
DEBBIE A. STABENOW, Michigan CRAIG THOMAS, Wyoming
BEN NELSON, Nebraska WAYNE ALLARD, Colorado
MARK DAYTON, Minnesota TIM HUTCHINSON, Arkansas
PAUL DAVID WELLSTONE, Minnesota MICHEAL D. CRAPO, Idaho
Mark Halverson, Staff Director/Chief Counsel
David L. Johnson, Chief Counsel for the Minority
Robert E. Sturm, Chief Clerk
Keith Luse, Staff Director for the Minority
(ii)
C O N T E N T S
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Page
Hearing(s):
Nomination Hearing for Nancy Pellett............................. 01
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Thursday, October 3, 2002
STATEMENTS PRESENTED BY SENATORS
Harkin, Hon. Tom, a U.S. Senator from Iowa, Chairman, Committee
on Agriculture, Nutrition, and Forestry........................ 01
Grassley, Hon. Charles E., a U.S. Senator from Iowa.............. 01
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WITNESSES
Pellett, Nancy C., of Atlantic Iowa, to be a member of the Farm
Credit Administration Board.................................... 03
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APPENDIX
Prepared Statements:
Pellet, Nancy C.............................................. 10
Document(s) Submitted for the Record:
Pellett, Nancy C. (biography)................................ 14
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NANCY PELLETT NOMINATION HEARING
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THURSDAY, OCTOBER 3, 2002
U.S. Senate,
Committee on Agriculture, Nutrition, and Forestry,
Washington, DC.
The committee met, pursuant to notice, at 11:05 a.m., in
room SR-328A Russell Senate Office Building, Hon. Tom Harkin,
[Chairman of the Committee], presiding.
Present: Senators Harkin and Grassley.
STATEMENT OF HON. TOM HARKIN, A U.S. SENATOR FROM IOWA,
CHAIRMAN, AGRICULTURE,
NUTRITION, AND FORESTRY
The Chairman. The Senate Committee on Agriculture,
Nutrition, and Forestry will come to order.
Today, the committee welcomes a fellow Iowan, Nancy
Pellett, as a nominee for the Board for the Farm Credit
Administration. I see that she is accompanied by someone that I
recognize, with whom I am proud to work here in the Senate with
on so many issues, and rather than my making my opening
statement first, I will just go ahead and yield because I know
you have probably got business to conduct, also, Senator
Grassley.
I would yield and recognize my colleague, Senator Grassley.
STATEMENT OF HON. CHARLES E. GRASSLEY, A U.S. SENATOR FROM IOWA
Senator Grassley. Mr. Chairman, I thank you very much.
I am pleased to present to you, Mr. Chairman, and to the
rest of the committee, the person who the President has
nominated to the Farm Credit Board. She is a fourth-generation
Iowan.
The Farm Credit Administration, as you know, Mr. Chairman,
is responsible for ensuring safe and sound operation of banks,
associations, affiliated services, and other entities that
collectively comprise what is known as the Farm Credit System.
FCA, for short, is responsible for protecting the interests of
the public and those who borrow from Farm Credit institutions
or invest in those Farm Credit securities. It is very critical,
for the health and well-being of rural America, particularly
for agriculture, that the Farm Credit Administration function
efficiently.
That is why I believe the President has made an excellent
choice in nominating Nancy Pellett for the position of Farm
Credit Administration Board. Nancy is from a farm near
Atlantic, Iowa. You have heard me say often, Mr. Chairman, that
I want this administration to put more people in positions of
authority that have a farm background, and specifically dirt
under their fingernails.
Well, at the risk of embarrassing Nancy, I would say that
she is one of those folks. Let me tell you, she is such a
person, ``dirt under the fingernail type'' farmer, when her
four children would tell you, as I have heard them say, that
they were taught their colors and letters while Nancy was
running the combine, helping her husband in the fall harvest.
Nancy currently serves on the National Cattlemen's Beef
Board, and she is a 14-year member of the Iowa Beef Industry
Council. She previously served, from 1988 to 1995, on the
National Livestock and Meat Board, and held several leadership
positions with the National Cattlemen's Beef Association.
She is president of Premium Quality Beef, Inc., an Iowa-
based company marketing things that you and I, Mr. Chairman,
believe in, value-added agricultural products, branded premium
fresh and pre-cooked beef products, specifically, for her
agency.
She has been the vice president and secretary of Prairie
Hills, Limited, a feedlot cow, calf, and row-crop operation
since 1979, and president of Fredrechsen Farms, Limited, a
swine and row-crop operation since 1977.
In addition, she brings extensive leadership beyond the
agricultural sector, and I cannot name all of them, but one
that we always ought to measure Iowans by because it is very
prestigious, very outstanding, and only the best people ever
get appointed to it, and that is the Board of Regents of our
State universities. She was there 1993 to 1999; trustee of the
University of Iowa Hospitals and Clinics, 1993 to 1999; a
member of the State of Iowa Student Aid Commission, 1991 to
1993; president of the Iowa State University Alumni
Association, 1984. She graduated from the same university you
did. That ought to get her confirmed.
[Laughter.]
The Chairman. That is right.
Senator Grassley. She has also served on the Iowa State
University College of Agriculture and Family and Consumer
Science Advisory Board.
Let me close with this. She brings tremendous experience,
valuable insight, and obviously lots of energy that is needed
for an important position like the Farm Credit Administration
Board. She has demonstrated already strong leadership abilities
in many capacities, in addition to her hands-on work in
agriculture.
There is no doubt, at least in my mind, that the President
made a smart choice with her selection. The Farm Credit
Administration will benefit greatly from Nancy Pellett's
administration and contribution.
Thank you, Mr. Chairman.
The Chairman. Well, thank you very much, Senator Grassley,
for a great statement. I would just join with you in
congratulating you, Mrs. Pellett--Nancy Pellett--for your
lifetime of service in our State, to our university system, to
education, the Extension Service, and to all of agriculture.
You have been a great leader in the State of Iowa, and I am
glad that the President has recognized that and has recommended
you for this Board. I can assure you will have the support of
all of us here to get through as soon as possible.
I have to take care of some housekeeping things. Senator
Grassley, I know you have to go. Thank you very much, Senator
Grassley.
This is something I have to do, but this is just part of
the procedure. I have to stand, and raise the right and do all
of that kind of thing.
[Witness sworn.]
The Chairman. Thank you.
Second, do you agree that if confirmed, you will appear
before any duly constituted committee of Congress, if asked to
appear?
Ms. Pellett. I will, sir.
The Chairman. Thank you very much. I will recognize you
now, Nancy, for an opening statement, if you would like to make
that for the record. I know you have a lot of family members
here. If you would like to introduce them, we would be glad to
welcome them to the committee room here.
STATEMENT OF NANCY C. PELLETT, OF IOWA, TO BE A MEMBER OF THE
FARM CREDIT ADMINISTRATION BOARD
Ms. Pellett. Thank you, and I would like to do that. Thank
you very much for your nice remarks, as well as Senator
Grassley's.
I am proud that all three of us can call Iowa home.
The Chairman. That is right.
Ms. Pellett. Mr. Chairman, and other Senators of the
Agriculture Committee, I appreciate the opportunity to appear
before you today. I am honored to come before you as one of
President Bush's nominees for the Farm Credit Administration
Board of Directors, but before I begin, I would like to take
the opportunity to introduce some of my family that are here
today.
My husband of 36 years, Jim, and I will talk a little bit
about our operation in a minute, some of you know. I am
especially happy to have my father here, Kenneth Fredrechsen,
who at age 83 is still actively farming on the family farm.
The Chairman. That is wonderful. Where is your father? Oh,
very good. Your husband, I know.
Ms. Pellett. The family farm is located near Walnut, Iowa,
and that is Fredrechsen Farms, Limited, that we talked about,
that Senator Grassley talked about.
My daughter Beth, who works here in Washington, DC, and her
fiance, Brian Levine; and my son Mike is here. Mike and his
wife Stacey work for John Deere.
Our oldest son, Brad, could not be here. He and his wife
Kristy just gave birth to a new little girl about 6 days ago.
The Chairman. Congratulations.
Ms. Pellett. Thank you. Our daughter Marci, and her
husband, Andrew Loder, and their daughter Madeleine live in
Spain and are on assignment with Cargill.
I just don't want to get too emotional during this, but I
am really extremely proud to say that we have been able, Jim
and I, have been able to pass on to our children a love of
agriculture, and you could see that from the introductions that
I gave to them--a love of agriculture, of the land, and
community, just as our parents did to us, and we are proud of
that.
My husband and I have been involved in the agriculture
sector all of our lives. We currently have a corn, soybean and
cattle farm north of Atlantic, Iowa, with our son Brad and his
wife Kristy. Since we started farming together more than 35
years ago, agriculture and rural America have changed
dramatically. We are constantly looking at our operation for
new and innovative ways to adapt to the new rural America and
to be sure that our children have the opportunity to come home
to the farm if they desire.
I have also been president and co-manager in a value-added
company in Red Oak, Iowa. Premium Quality Foods is a value-
added provider of premium quality fresh, frozen, and pre-cooked
beef products, marketed under the Red Oak Farms and Red Oak
farms Premium Hereford beef brands.
Public service has been a huge part of our lives. From
local issues and projects, to State boards and commissions, to
national leadership positions--all have broadened my
perspectives and have given me valuable experience.
Being a member of the Iowa Board of Regents, which has
governing authority over Iowa's three State universities has
given a unique perspective to working on boards of directors.
Not only did I gain valuable experience during budgeting, but
also in public policy, employment issues, and most of all in
the political process.
I have also been fortunate to serve on both State and
national cattlemen boards, in both appointed and elected
leadership positions. These offices and boards took me outside
the confines of Iowa into a national arena of agriculture and
cattlemen issues and policies, but most importantly, in my
case, in the check-off issues. The national exposure will prove
extremely beneficial to me should I be approved for the Farm
Credit Board position.
I bring a very unique perspective as a producer and a user
of credit services to the Farm Credit Administration. I also
bring a unique position of board leadership on both national
and State levels. Most of all, I bring that deep passion for
agriculture--families involved in that agriculture and now that
extra step of value-added agriculture.
It is with a great deal of humility that I appear before
you here today. I share with you the vision that this committee
and the Farm Credit Administration has for families in
agriculture and for agriculture, in general, to thrive and to
prosper.
If confirmed by the Senate, I look forward to serving on
the Farm Credit Administration Board of Directors, and I look
forward to working with this Agriculture Committee on future
issues.
Thank you, Mr. Chairman, and I look forward to your
questions.
The Chairman. Thank you, Mrs. Pellett, very much for a very
eloquent statement. I, again, congratulate you on this.
I just have a couple of questions for the record.
Senator Lugar and I have focused considerable energy on a
crucial issue in agriculture, the ability of young farmers to
start farming. Earlier this year, the GAO released a report
indicating that the FCA could take additional measures to make
sure that Farm Credit institutions serve beginning farmers more
effectively. Specifically, the report recommended that the Farm
Credit Administration do such things as, one, promulgate a
regulation that outlines specific activities and standards
dealing with beginning farmers for Farm Credit institutions;
and, two, publicly disclose the results of the FCA examinations
concerning service to beginning farmers.
Again, could you just share your views on the importance of
serving the credit needs of young farmers and your willingness
to work with us to try to get some focus on that. Both Senator
Lugar and I have been talking about this for some time.
Ms. Pellett. Senator Harkin, I also share your views, and
those of Senator Lugar's, on this issue. I have a young farmer
in my family, and I am well aware of the struggles it is for
these young farmers to receive credit, although they are the
very future of agriculture in this country. I pledge to you
that I will do whatever I can, as a Board member, and strive
that the Farm Credit Administration do whatever they can to
facilitate this, as well as working with your committee.
I am a firm believer in communication and cooperation, and
I can't believe that we in credit lending issues and so forth
can't communicate and cooperate to make the endeavor of the
young farmer and beginning farmer a reality in this country.
The Chairman. That is great. It is something that always
keeps coming back and we certainly look forward to working with
you on that.
One last thing. You have a lot of experience in value-added
businesses with which you have done down at Red Oak. Again, one
of the challenges that face the startup in rural areas is
access to capital for value-added businesses.
We put some things in the Farm bill to try and get more
capital to rural areas for startup businesses and value-added
businesses. I am not certain I know exactly how the Farm Credit
Administration is going to fit into this, but, again, just any
thoughts you have. I mean, did you have, did your business in
Red Oak, did it get any help from the Farm Credit System at all
when it was starting up and, if not, could it have? Could there
be some changes made to help in these areas?
Ms. Pellett. Senator, I am aware of the struggles of a
small business value-added agriculture business with credit. I
have dealt with it every day for the last year. Our company is
now 1 year old, and it has been a struggle.
I was a Department of Economic Development meeting about 3
months ago, at which there were about 20 small companies
represented in Iowa, and every one of them were dealing with
credit problems. I pledge to you that I will look with, and
follow this issue, with interest on the Farm Credit
Administration Board because that is an issue in rural America,
and it is one way that producers can help themselves as they
get into value-added agriculture.
Marketing is a huge issue when it comes to value-added
agriculture. We know how to produce, but sometimes we don't
know how to market. I pledge, if I am confirmed, that I will
follow this issue with great interest and aggressively follow
it.
The Chairman. I appreciate that because, well, the Farm
bill just got signed in May, and mostly we have been focused on
getting it implemented for the payment structure and getting
updated bases, yields, and things like that. There are some
provisions in that farm bill that we put in over here, dealing
with value-added businesses and also a new equity capital
program.
I will be honest with you, I just have not really much
gotten into how we are going to dovetail that with the Farm
Credit System, but the two could work together. At some point,
I hope that we get together with the Board, and others, to
discuss ways in which, in implementing this new equity capital
provision that we have in the Farm bill, that the Farm Credit
Administration might also come in on the credit side of it. We
have one equity side, and come in on the credit side. That
could really be a real help to a lot of businesses, starting,
like you said, the marketing-type businesses and things like
that that we could do.
Ms. Pellett. It surely would be. Thank you.
The Chairman. There are a lot of things we could be doing
in agriculture that can add value, maybe new ways of doing
things. I visited a small cornfield of just a few acres up near
Fort Dodge someplace, where they are making pharmaceuticals.
Ms. Pellett. Oh, right.
The Chairman. The problem is they are making this
pharmaceutical--it is for cystic fibrosis--and they have had to
do all of these things to isolate the cornfield. It is only a
couple of acres. They have to take the grain and ship it to
France because only in France do they have the processes for
storing it and taking the pharmaceuticals out and stuff. We are
working now to try to get something at Iowa State or at the
Research Park there near Iowa State that might do the same
thing.
These are things that are coming down the pike in the next
few years, and it could be a great help to a lot of young
farmers in the State of Iowa.
Ms. Pellett. It certainly could be. There is so much
opportunity in rural America just in things like this.
The Chairman. Yes.
Ms. Pellett. We have work ethic, we are honest, and we want
to depend on science and technology to move us ahead.
The Chairman. You need access to capital and low-cost
credit in rural areas. It has always bothered me. All of the
years I have been here, 28 years I have been on the Agriculture
Committee now, and it has just always bothered me that that
farmer in Atlantic, Iowa, Cass County, when they go to borrow
money, right away they are at a disadvantage because they have
to pay more for their money than someone that is in Chicago.
That has just always bothered me; that right away you are
put at a disadvantage. Well, that is where the Farm Credit
System comes in to try to help them out a little bit, get those
interest rates down a little bit. Whatever we can do to keep
the cost of money down for these young people and give them the
same kind of advantages, we have to do.
Thank you, again, for all of your past service, and I mean
that sincerely. We may be of different political parties, but I
can assure you that I respect people who work in politics. I
wish more people would do what you have done in your past. It
is an honorable thing to do, and I wish more people would do
it. I am proud of you for doing that. I just wish you had been
on my side.
[Laughter.]
The Chairman. I am very proud of you, and take that as a
very heartfelt commendation to you for what you have done in
your life, and what you have done for the State of Iowa, and
what you have done for your party. I look forward to getting
your name, we will get it out of here, we will get it to the
floor and, hopefully--we are going to be here a couple more
weeks--and then, hopefully, we will get it out of here, and you
will be on-board right away and take over Ann's position.
I am just proud to have a good Iowan in that position.
Ms. Pellett. Thank you very, very much.
The Chairman. Thank you, and congratulations.
[The prepared statement of Ms. Pellett can be found in the
appendix on page 10.]
The Chairman. The committee will stand adjourned.
[Whereupon, at 11:24 a.m., the committee was adjourned.]
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A P P E N D I X
October 3, 2002
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October 3, 2002
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