[Senate Hearing 109-682]
[From the U.S. Government Publishing Office]
S. Hrg. 109-682
TO REVIEW NOMINATIONS FOR USDA AND
COMMODITIES FUTURES TRADING COMMISSION
=======================================================================
HEARING
before the
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED NINTH CONGRESS
SECOND SESSION
__________
JULY 26, 2006
__________
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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30-431 WASHINGTON : 2006
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COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
SAXBY CHAMBLISS, Georgia, Chairman
RICHARD G. LUGAR, Indiana TOM HARKIN, Iowa
THAD COCHRAN, Mississippi PATRICK J. LEAHY, Vermont
MITCH McCONNELL, Kentucky KENT CONRAD, North Dakota
PAT ROBERTS, Kansas MAX BAUCUS, Montana
JAMES M. TALENT, Missouri BLANCHE L. LINCOLN, Arkansas
CRAIG THOMAS, Wyoming DEBBIE A. STABENOW, Michigan
RICK SANTORUM, Pennsylvania E. BENJAMIN NELSON, Nebraska
NORM COLEMAN, Minnesota MARK DAYTON, Minnesota
MICHEAL D. CRAPO, Idaho KEN SALAZAR, Colorado
CHARLES E. GRASSLEY, Iowa
Martha Scott Poindexter, Majority Staff Director
David L. Johnson, Majority Chief Counsel
Vernie Hubert, Majority Deputy Chief Counsel
Robert E. Sturm, Chief Clerk
Mark Halverson, Minority Staff Director
(ii)
C O N T E N T S
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Page
Hearing(s):
To Review Nominations for USDA and Commodities Futures Trading
Commission..................................................... 1
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Wednesday, July 26, 2006
STATEMENTS PRESENTED BY SENATORS
Chambliss, Hon. Saxby, Chairman, Committee on Agriculture,
Nutrition, and Forestry........................................ 1
Allen, Hon. George, U.S. Senator from Virginia................... 2
Harkin, Hon. Tom, U.S. Senator from Iowa......................... 1
Thune, Hon. John R., U.S. Senator from South Dakota.............. 8
Panel I
Dunn, Michael V., of Iowa, Nominee to be Commissioner of the
Commodity Futures Trading Commission for a Term Expiring June
19, 2011 (Reappointment)....................................... 11
Johner, Nancy Montanez, of Nebraska, Nominee to be Under
Secretary of Agriculture for Food, Nutrition, and Consumer
Services for the Department of Agriculture and to be a member
of the board of Directors of the Commodity Credit Corporation.. 5
Knight, Bruce I., of South Dakota, Nominee to be Under Secretary
of Agriculture for Marketing and Regulatory Programs for the
Department of Agriculture and to be a member of the Board of
Directors of the Commodity Credit Corporation.................. 10
McKay, Margo M., of Virginia, Nominee to be an Assistant
Secretary of Agriculture for Civil Rights for the Department of
Agriculture.................................................... 6
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APPENDIX
Prepared Statements:
Baucus, Hon. Max............................................. 22
Grassley, Hon. Charles E..................................... 24
Harkin, Hon. Tom............................................. 26
Nelson, Hon. E. Benjamin..................................... 29
Dunn, Michael V.............................................. 30
Johner, Nancy Montanez....................................... 32
Knight, Bruce I.............................................. 35
McKay, Margo M............................................... 38
Document(s) Submitted for the Record:
Renewable Fuels Association.................................. 44
National Milk Producers Federation, letter of support for
Bruce I. Knight............................................ 45
Various agricultural organizations, letter of support for
Bruce I. Knight............................................ 46
Question and Answer:
Dunn, Michael V.:
Written response to questions from Hon. Norm Coleman......... 47
Johner, Nancy Montanez:
Written response to questions from Hon. Michael D. Crapo..... 50
Written response to questions from Hon. Tom Harkin........... 51
Written response to questions from Hon. Craig Thomas......... 59
Knight, Bruce I.:
Written response to questions from Hon. Max Baucus........... 60
Written response to questions from Hon. Charles Grassley..... 63
Written response to questions from Hon. Tom Harkin........... 66
McKay, Margo M.:
Written response to questions from Hon. Tom Harkin........... 73
Additional Material(s) Submitted for the Record
Committee questionnaire and Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report filed by Michael V. Dunn............................ 76
Committee questionnaire and Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report filed by Nancy Montanez Johner...................... 92
Committee questionnaire and Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report filed by Bruce I. Knight............................ 120
Committee questionnaire and Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report filed by Margo M. McKay............................. 145
TO REVIEW NOMINATIONS FOR USDA AND
COMMODITIES FUTURES TRADING COMMISSION
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Wednesday, July 26, 2006
U.S. Senate,
Committee on Agriculture, Nutrition, and Forestry,
Washington, DC
The committee met, pursuant to notice, at 9:32 a.m. in Room
SR-328A, Russell Senate Office Building, Hon. Saxby Chambliss,
chairman of the committee, presiding.
Present: Senators Chambliss, Talent, Thomas, Grassley,
Harkin, and Baucus.
OPENING STATEMENT OF SENATOR CHAMBLISS, CHAIRMAN, COMMITTEE ON
AGRICULTURE, NUTRITION, AND FORESTRY
The Chairman. Good morning. This hearing will come to
order.
We're here today to conduct a hearing on three nominations
to important posts at the U.S. Department of Agriculture, and
an equally important nomination to the Commodity Futures
Trading Commission.
The nominees are: Nancy Montanez Johner--to be Under
Secretary for Food, Nutrition, and Consumer Services; Bruce
Knight, to be Under Secretary for Marketing and Regulatory
Programs; Margo M. McKay, to be Assistant Secretary for Civil
Rights; and Michael V. Dunn, to be a commissioner at the
Commodity Futures Trading Commission. Ms. Johner and Mr. Knight
have also been nominated to serve on the board of directors of
the Commodity Credit Corporation.
I've had the opportunity to meet with all four nominees and
review their backgrounds. We all appreciate their willingness
to come forward and engage in public service. I welcome all
four nominees here this morning. And I thank you for appearing
before the committee today.
For the information of Senators and staff, I ask that any
questions of the nominees for the record be submitted by 5:00
p.m. tomorrow, July 27, in order to expedite the confirmation
process.
I now will turn to Senator Harkin for any opening comments
he might wish to make.
STATEMENT OF HON. TOM HARKIN, A U.S. SENATOR FROM IOWA, RANKING
MEMBER, COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
Senator Harkin. Mr. Chairman, thank you very much.
And I'll just ask that my statement be made a part of the
record.
[The prepared statement of Hon. Tom Harkin can be found in
the appendix on page 26.]
Senator Harkin. I welcome all of our individuals here.
Some I know better than others, but in reviewing their
backgrounds, and some who have worked in these various
departments before, whom I know well, they are all extremely
well-qualified people, and I hope we can move them
expeditiously.
I would defer any other comments and stuff to when you open
it up for these individuals.
The Chairman. Sure.
Senator Harkin. Thank you, Mr. Chairman.
The Chairman. Okay.
At this time, before we proceed to the nominees, we have
our good friend, our distinguished colleague, Senator George
Allen, here to make an introduction.
Senator Allen, welcome to the once-powerful Ag Committee.
We're pleased to see you here. And please take some Georgia
peanuts when you leave. [Laughter.]
Senator Allen. Okay.
The Chairman. You'll want to give up Virginia peanuts,
George.
STATEMENT OF HON. GEORGE ALLEN, A U.S. SENATOR FROM VIRGINIA
Senator Allen. Thank you, Mr. Chairman.
Senator Chambliss, I appreciate the Georgia peanuts.
They're very good. You just have to eat two of 'em to make
up for as many volume as there is in a Virginia peanut.
[Laughter.]
Senator Allen. But they're very good and tasty. Senator
Harkin, it's good to see you, as well.
It's my pleasure to introduce to all of you on the
committee here Margo McKay, of Falls Church, Virginia, the
President's nominee to be Assistant Secretary of Agriculture
for Civil Rights in the Department of Agriculture.
Mr. Chairman, the mission of the Assistant Secretary of
Agriculture for Civil Rights is to facilitate a fair and
equitable treatment in the delivery and decisions related to
the programs and many services of the USDA. To that end, if you
look at the background and experience, the motivation, the
qualifications, and the background of Margo McKay, she is
highly qualified fulfill that mission.
It is Ms. McKay's broad range of professional experience
that makes her very well qualified to hold this position. You
can look through her resume. Let me just take a few moments to
highlight her positions. From being a trial attorney with the
Office of Civil Rights division of the U.S. Department of
Justice, to an associate general counsel at Fannie Mae, she has
a tremendous breadth of knowledge. She has served as the
director of the Office of Diversity at Fannie Mae, where she
brings to this position an awareness of how important the job
of Assistant Secretary in Agriculture for Civil Rights is in
ensuring that everyone who works for, or is partnered with, the
USDA is treated fairly and with dignity and respect.
She will be introducing her family members later, so I'll
not introduce them, but I know she's very proud. And I know her
mother's very proud to have her here, and so are her children.
But she--when she was a young attorney with the Department
of Justice, she did sharpen her litigation skills by working on
all aspects of civil rights and constitutional law, and she
received numerous awards and commendation.
Also, Mr. Chairman, Senator Harkin, she created and
implemented an alternative dispute resolution program, and her
initiative in working with minority- and women-owned business
speak to her leadership ability. She's been the recipient of
the prestigious Reardon Award for Corporate Excellence in 1994.
She has received the Bronze and Silver Award for Exceptional
Meritorious Service, as well as many other awards.
If confirmed, Mr. Chairman, Senator Harkin, members of the
committee, Ms. McKay will draw on her extensive legal
comprehension and hands-on knowhow to carry out the mission.
She has--when you hear--read her--or see her statement, and
hear it, she has the right goals, to expand outreach and build
trust in the USDA programs, which his very important. We've
seen the need for that in Virginia.
You may have, in your respective States. But we know we've
seen the need for that building of trust with the USDA
programs, and I think Ms. McKay is truly a perfect individual,
with her experience and her motivation, to lead this mission.
And I hope you'll move her on to the floor for confirmation as
quickly as possible.
And I thank you for allowing me to come and introduce Ms.
McKay to the committee.
The Chairman. Senator, thank you for being here.
Ms. McKay, George happens to be one of my close personal
friends, and him coming here today to speak in your behalf says
an awful lot for you.
And I'm just kidding, George, my neighbor sends me a big
can of Virginia peanuts every year at Christmas, and they are--
[Laughter.]
The Chairman. --outstanding peanuts.
Senator Allen. As are the Georgia ones, Mr. Chairman. Thank
you.
The Chairman. Would all four of you please stand and raise
your right hand?
Do you swear that the testimony you're about to give will
provide the truth, the whole truth, and nothing but the truth,
so help you, God?
Ms. Johner. I do.
Mr. Knight. I do.
Ms. McKay. I do.
Mr. Dunn. I do.
The Chairman. Do each of you agree that you will appear
before any duly constituted committee of Congress if asked to
appear?
Ms. Johner. I will.
Mr. Knight. I will.
Ms. McKay. I will.
Mr. Dunn. I will.
The Chairman. Thank you very much, and you may be seated.
We also have Senator Thune, who will be here shortly, I'm
sure, to speak on behalf of Mr. Knight. But, in the meantime,
we're going to go ahead and move forward. And, let me just say
that we're going to have a vote, I understand, at 10:00
o'clock. We also have a joint session beginning at 11:00. So, I
don't know how we're going to be able to work around this vote.
If we have enough Senators here, we may try to run back and
keep this going so that we can hopefully finish before the
11:00 o'clock joint session. But we'll see how that goes, in
any event--
Senator Harkin. Mr. Chairman?
The Chairman. Sure.
Senator Harkin. Mr. Chairman, just in case--I know I had
asked you earlier, but just in case we get all messed up with
votes and stuff like this, I--I was going to wait until we got
to Mike Dunn's--and we're going to work down the line, I know,
but, just in case something happens and I'm not here, I just--
for the record, just wanted to say how proud I am of my fellow
Iowan, Mike Dunn. We go back-- we were together in this
committee in 1986-87, during the farm credit crisis, when we
passed the farm credit bill that really helped keep our farmers
afloat all over this country.
And Mike was very much involved in the committee here, in
this committee, in this room, at that time. He went on to head
the Washington Office of the National Farmers Union, did that
for a number of years, served as Under Secretary for Marketing
and Regulatory Programs, directing the Office of Policy and
Analysis at the Farm Credit Administration. And he served ably
in all those positions.
I know that Mike was selected by his colleagues to chair
the Ag Advisory Committee at the CFTC, a reflection of his
strong background and continuing interest in agriculture. He's
also the chair of the Commission's Task Force on Public
Outreach and Consumer Education regarding retail transactions
and foreign currency. And over the past several months, this
task force has worked to alert and educate the public about the
risks and potential for fraud in the sales of foreign
currencies in--to retail investors.
So, that's just my way of saying I've known Mike Dunn
almost all my adult life. His wife, Brooke, and four sons, I
know, couldn't be here with him today, but he is what I
consider to be just a great example of a public servant, always
doing the jobs tasked to him, doing it diligently, doing it
well, without any favoritism, partisanship. When he worked on
this committee, he worked with both sides at that time, and has
done so throughout his adult life. And I can't think of a
better person for the committee--for the Futures--the Commodity
Futures Trading Commission than Mike Dunn, and I just wanted to
say that for the record.
Mike, thank you.
The Chairman. Well, again, Senator Harkin and I are also
very good friends, and I have great respect for him. Mike,
while I know you, and you and I have had a chance to visit, I
will have to say that Senator Harkin speaking in your behalf
says an awful lot for you. You've done a good job over at the
CFTC, and we look forward to speeding your nomination forward.
We'll now start with you, Ms. Johner, and we'll go down the
line. Any opening comments you wish to make, we'd ask that you
keep them as brief as possible. We will submit your entire
statement for the record.
STATEMENT OF NANCY MONTANEZ JOHNER, OF NEBRASKA, NOMINEE TO BE
UNDER SECRETARY OF AGRICULTURE FOR FOOD, NUTRITION, AND
CONSUMER SERVICES FOR THE DEPARTMENT OF AGRICULTURE AND TO BE A
MEMBER OF THE BOARD OF DIRECTORS OF THE COMMODITY CREDIT
CORPORATION
Ms. Johner. Thank you, Chairman.
Mr. Chairman and members of the committee, I'm honored and
grateful to appear before you as the President's nominee for
the position of Under Secretary of Food, Nutrition, and
Consumer Services.
I would like to thank President Bush and Secretary Johanns
for their trust and for this honor, as well as all those who
have supported me.
I would especially like to thank my husband, Randy, for his
unconditional love and support. And I also want to thank my
children, Melissa and Jesse Montanez, for their encouragement
and belief in me.
I was born and raised in a farming community in
Scottsbluff, Nebraska. My parents, Joseph and Nancy Saldivar,
were immigrants to the United States. My father worked long
hours in the fields, and, as a young girl, I worked beside him,
along with the rest of my family. In addition to teaching me by
example the importance of good work ethics, my parents also
showed me the value of family, and I will always be grateful to
them for that.
After high school, I worked part-time as a unit secretary
at the local hospital. And as a secretary, I began to
experience serving families through the Intensive Care Unit. I
was very fond of this aspect of my work, and decided to pursue
an education in social work. I earned a college degree while
working and raising two children. I was a single parent faced
with many challenges. I'm not embarrassed by that fact. It is
part of who I am and why I believe I'm qualified for this
position. I know what it's like to be on the verge of not
making ends meet.
I believe it is important to ensure that those who are
eligible for assistance have access to benefits. After earning
my degree, I served as a social worker. Experiencing the
heartbreaking need firsthand did not deter or discourage me. It
inspired me to work even harder, knowing that as a social
worker I had the ability to impact the need and to ease the
very struggle that I faced as a single parent. I have no
illusion about ending all hunger, but that won't stop me from
trying to impact the problem.
When I was promoted to a service area administrator, I
viewed the added responsibility as raising the bar for me as a
public servant. It meant I could no longer simply tell the boss
about my caseload concerns; I now had the ability and,
therefore, the responsibility to address the challenges that
prevent us from improving human condition.
Two years ago, I was honored to be appointed as the
director of Nebraska Health and Human Services. In this
position, which I currently serve, I'm responsible for a staff
of 5,000 and a budget of over $960 million. We touch thousands
of lives, and it is a tremendous opportunity to help people.
I'm grateful to have this chance to serve and make a
difference.
I have a conviction that, in whatever capacity one serves
the public, it is the principles that bring quality to the
service. The principles of compassion, integrity, respect,
openness, and honesty have kept me focused on service and the
value of families. These are the principles I brought with me
as a social worker and as a director of Nebraska Health and
Human Services. If confirmed to serve as Under Secretary for
Food, Nutrition, and Consumer Services, I will hold to these
same principles. I also pledge to listen to our customers, our
service providers, State and local partners, advocacy groups,
and certainly you here in Congress to determine better ways to
serve our clients.
I'm excited by the possible opportunity to work with the
experienced and highly talented staff at the Food and Nutrition
Service in the Center for Nutrition Policy and Promotion. They
are dedicated to helping others, and it would be an honor to
join them.
In closing, I want to say I am eager to continue my work as
a public servant devoted to providing children and low-income
families with access to food, healthful diet, and nutrition
education. Furthermore, if confirmed, I look forward to working
together to fulfill our duty and service to this great Nation
and its citizens.
Thank you for your time, and I would be happy to answer any
questions you may have.
[The prepared statement of Ms. Johner can be found in the
appendix on page 30.]
The Chairman. Thank you. Ms. McKay?
STATEMENT OF MARGO M. McKAY, OF VIRGINIA, NOMINEE TO BE AN
ASSISTANT SECRETARY OF AGRICULTURE FOR CIVIL RIGHTS FOR THE
DEPARTMENT OF AGRICULTURE
Ms. McKay. Mr. Chairman, Ranking Member Harkin, and other
distinguished members of the committee, thank you for--
The Chairman. Mike.
Ms. McKay. Mr. Chairman, Ranking Member Harkin, and other
distinguished members of this committee, thank you for the
opportunity to appear before you today. And I would like to
thank Senator George Allen for his kind introduction. I greatly
value his trust and his support.
I am honored to have been nominated by the President to be
Assistant Secretary for Civil Rights at the Department of
Agriculture, and I am humbled by the confidence placed in me by
President Bush, Secretary Johanns, and Deputy Secretary Conner.
I would like to introduce my family--my mother, Gary McKay,
is a retired nurse and a native of Pittsburgh, Pennsylvania; my
youngest--
The Chairman. Ask her to stand up so we know who your mom
is.
Ms. McKay. My mom is right here.
The Chairman. Great.
Ms. McKay. My daughter, next to her, Kaila Allen, is a
sophomore at Hampton University in Virginia, and, I might add,
an A student. [Laughter.]
Ms. McKay. Next to her, my son, Rick Allen--he lives and
works in Virginia, and he's an avid soccer player. He's in two
soccer leagues, director of the league, captain of the team.
The Chairman. All right.
Ms. McKay. My oldest daughter, Marja, here, is an actress
and a former Miss Teen USA, representing the District of
Columbia. Next to here is her husband, Jean- George
Vongerichten, who is a world-renowned chef.
The Chairman. Nice looking family there, Ms. McKay.
Ms. McKay. Thank you. I am so proud of them. Thank you very
much. Senators I became aware of the civil rights struggle at a
very young age, growing up in Pittsburgh, Pennsylvania, with my
grandfather, John Gary Jones. He was a--active in the State and
local NAACP and other civic organizations. As an African-
American man of his era, even though he was college educated,
had served honorably in World War I, and was very capable, he
was only able to achieve a certain level in the workplace, a
supervisor in the Post Office.
But he was my idol and my role model. I was impressed by
his intelligence, his energy, his worldly perspective, and his
activism. He instilled in me the importance of an education. He
made me believe that I could do and become anything that I
wanted. And he taught me the importance of helping others.
As a child, I spent my summers with my other grandfather,
John Mackay, in--at his farm in Catonsville, Maryland. I
remember when my grandparents sold their farm and bought a
house in Baltimore, Maryland. It did not occur to me at that
time that selling the farm might not have been their first
choice.
Grandfather Jones died when I was 16, and there was no
money for college, but I was able to attend Fisk University in
Nashville, Tennessee, on a scholarship from the United Negro
College Fund. I was recruited on campus by the Department of
Housing and Urban Development. And, while there, I met another
mentor, another civil rights leader, the late Honorable Samuel
C. Jackson, of Topeka, Kansas. He was Assistant Secretary of
HUD and a former EEOC commissioner. Sam Jackson encouraged me
to go to law school. After attending Georgetown Law School, I
joined the civil rights division in the Department of Justice,
where I prosecuted cases under all the civil rights statutes.
Later, I served as an administrative judge, hearing
employment discrimination claims. I continued on this career
path to the current time in both the public and the private
sector, specializing in employment law and diversity. I believe
that my background and experiences will serve me well if I am
confirmed for this position.
I am aware that many improvements have been made at USDA,
and I have great respect for former Assistant Secretary Vernon
Parker and all that he has accomplished under former Secretary
Veneman and Secretary Johanns.
However, that said, I believe that there's always more to
do.
If confirmed, my goals will be, first, to listen and to
learn from all stakeholders. I want to know what specific
measures USDA has taken to correct past problems, whether such
measures have been successful, and what more needs to be done.
I want to identify and remove unnecessary barriers to
participation in USDA programs and outreach efforts, and
continue to build trust. I want to make sure that the civil
rights of USDA employees are protected. I want to build strong
working relationships both inside and outside the Department,
and to strengthen partnerships with organizations representing
minority and female farmers and ranchers. In addition, I want
to ensure that all programs run out of the Office of the
Assistant Secretary for Civil Rights are effective and
efficient.
And, finally, if confirmed, I pledge to execute the
Secretary's civil rights policy, which promises a workplace
that respects differences and embraces diversity, and programs
and services that are accessible and delivered to all of our
customers fairly and with dignity. There can be no exceptions,
no excuses.
Mr. Chairman, thank you for--I'd like to thank the
committee for considering my nomination. I'll be happy to take
any questions you may have of me.
[The prepared statement of Ms. McKay can be found in the
appendix on page 38.]
The Chairman. Thank you, Ms. McKay.
Now, as we move to Mr. Knight, we're joined by our
colleague from South Dakota, Senator John Thune.
John, welcome. And I understand you have some comments to
make about Mr. Knight.
STATEMENT OF HON. JOHN R. THUNE, A U.S. SENATOR FROM SOUTH
DAKOTA
Senator Thune. Thank you, Mr. Chairman and members of the
committee.
The President's nominee to be Under Secretary for Marketing
and Regulatory Programs at the Department of Agriculture is
someone who has deep roots in the soils of South Dakota. Bruce
Knight is a third-generation farmer and rancher, someone who
runs a diversified farm and ranch, or grain operation, in South
Dakota, and who I know makes regular trips back to South Dakota
to check on that operation, more frequent trips during pheasant
season, I might add, as well-- [Laughter.]
Senator Thune. --but is very closely connected to the land
in my State of South Dakota. But, more importantly, in terms of
his--not that that isn't a key qualification for this job, but
he's someone who, in the past 20 years--and I've known Bruce
now for over 20 years--has worked diligently honing his skills
for this position, someone who's worked on Capitol Hill. I
first met Bruce over 20 years ago, and we were both wet-behind-
the-ears staffers.
His first opportunity was to work on the 1985 farm bill,
and he's worked on a number of farm bills since then--the 1996
farm bill, as a member of the staff of former Senator Bob
Dole--and has had key policymaking positions, positions where
he was very involved in working the congressional aspect of
policies that affect agriculture for not only the wheat
growers, but also the National Corn Growers Association, and,
of course, I think, as everyone knows, for the past 4 years
now, has headed up the National Resource Conservation Service
at the Department of Agriculture, where he has administered a
multibillion-dollar budget, overseen over 11,000 employees, and
been principally responsible for developing conservation
programs for this country.
He is very committed. He is a conservationist, a lifelong
conservationist, someone who is very committed to expanding and
growing and being innovative in initiating new programs and
policies that will promote conservation on our lands, someone
who is supremely qualified for the job for which he has been
nominated, not only, again, because of his resume and his very
dedicated and accomplished public service, but also because he
understands the land. He's someone who grew up on it. He's
someone who stays, as I said, very close to it. And add to all
those things, he is a high-class, quality individual who I've
had the privilege and the opportunity to know for over 20
years.
And so, it's a great privilege and honor for me to be able
to hear--to be here today to introduce him to this committee
and to urge this committee to quickly approve his nomination
and get him on the job for which he's been nominated.
So, Mr. Chairman, with that, I thank you for the chance to
be here and to bring before you to your attention this very
qualified individual for this job.
Thank you.
The Chairman. Thank you.
Senator Harkin?
Senator Harkin. Thank you very much, Mr. Chairman.
I'd just like to join with Senator Thune in paying my
respects and best wishes to Bruce Knight. I've known Bruce also
for about 20 years. He's worked for three individuals for whom
I have had, and continue to have, a very high regard, Jim
Abnor--great friend--Fred Grandy, from Iowa, and, of course,
Bob Dole. So, I've watched Bruce progress through all these
years, and I just want to say again, for the record, that he
has done an admirable job in running the NRCS for the last 4
years under pretty trying circumstances --not of his making,
perhaps of ours up here once in a while, because of budget
considerations and things like this. But he's done a great job
in running the NRCS.
I had one question I was going to ask Bruce, but I don't
know if I'm going to be here to ask it. I'm going to say, Are
we going to get someone as good as you to run it after you
leave? I don't know--see, I'm--I have mixed emotions here.
[Laughter.]
Senator Harkin. Again, I'd like to see him take over
Marketing and Regulatory Programs. I don't want to have him
leave NRCS. So, I'm kind of mixed in my emotions, whether I
should support him or not. I don't know. [Laughter.]
Senator Harkin. But a great guy, and has done just an
outstanding job in everything that he's done in the past, and
I'm proud to support him also. So, I just wanted to say that
for the record.
Thank you.
The Chairman. Bruce, you've got a lot to live up to now. I
look forward to you getting in this job, and you and I doing
some field work in South Dakota in the middle of October.
[Laughter.]
The Chairman. I would also say that we have a couple of
letters in support of Bruce, one from the National Milk
Producers Federation, and another letter from 17 various
agricultural organizations--national organizations. Those
letters will be included in the record.
[The following information can be found in the appendix on
page 46.]
The Chairman. And we also, I should have said earlier,
have--Senator Ben Nelson intended to be here to introduce Ms.
Johner, but, unfortunately, was unable to. But he has submitted
a statement for the record in support of her nomination.
[The following information can be found in the appendix on
page 29.]
The Chairman. Bruce, we look forward to your comments.
STATEMENT OF BRUCE I. KNIGHT, OF SOUTH DAKOTA, NOMINEE TO BE
UNDER SECRETARY OF AGRICULTURE FOR MARKETING AND REGULATORY
PROGRAMS FOR THE DEPARTMENT OF AGRICULTURE AND TO BE A MEMBER
OF THE BOARD OF DIRECTORS OF THE COMMODITY CREDIT CORPORATION
Mr. Knight. Mr. Chairman and distinguished members of the
committee, I'm honored and humbled to appear before you today
as nominee of Under Secretary for Marketing and Regulatory
Programs of the United States Department of Agriculture.
I've had the privilege of testifying before this committee
several times, and nothing is more difficult for me than to
talk actually about my own credentials, as opposed to the
issues and policies of the day. I appreciate this very much, I
wish to express my thanks to President Bush for nominating me,
Senator Thune for introducing me and supporting my nomination.
I owe a debt of gratitude to many mentors--former Senator James
Abnor, who was my first boss in Washington, D.C., and whose
wisdom and integrity I still treasure; former Representative
Fred Grandy, former Senator Bob Dole, who taught me not to fear
tough policy issues.
Joining me today are my wife, Julie, and my children,
Katherine and Denton, sitting behind me.
The Chairman. Let them stand up, please.
Mr. Knight. Julie, Katherine, Denton.
The Chairman. All right. Another very handsome family.
Mr. Knight. Thank you. Without Julie's faithful and ongoing
support and encouragement, I would not be here today. She and
the children serve to ground me and, quite frankly, to keep me
focused on those things that are truly most important in life.
I grew up on a small farm near Gann Valley, South Dakota,
coming of age in the midst of the turmoil of the 1980s farm
crisis. At South Dakota State University, I studied animal and
range science and economics. As has been said before, I'm a
third-generation rancher and farmer.
Today, I own and operate a diversified grain and cattle
operation in Buffalo County, South Dakota.
In 1985, I came to Washington to serve as legislative
assistant to Senator James Abnor, focusing primarily on
agricultural and conservation issues. I worked in a similar
capacity with Representative Grandy and Senator Dole. For more
than 10 years, I had held agricultural policy positions with
the National Association of Wheat Growers and the National Corn
Growers Association.
Four years ago, President Bush appointed me chief of the
Natural Resources Conservation Service at USDA, the lead agency
for conservation on working agricultural land, with a budget of
over $3 billion and a staff of now nearly 12,000 employees.
I believe that there is a strong link between conservation
and the safeguarding of the environment, and the health of the
animals, the plants, and the humans who share that land. All of
these concerns are very interrelated and interdependent.
As a farmer and rancher, I also understand the vital
importance of fair, open, and orderly markets, and the value of
encouraging trade, promoting fairness, and reducing barriers.
Mr. Chairman, I do not appear before you today professing
to be an expert in animal or plant health issues.
What I would bring, however, to the table, if confirmed in
the Marketing and Regulatory Programs mission area, is an
extensive management experience from my work at two
agricultural trade associations and, more directly, as
administrator of a major USDA agency, in NRCS.
As an executive, I have learned the value of gathering
enough information to make a good decision quickly enough to
make a difference. As a farmer, I bring real-world experience
on the impact of rules and regulations on the marketplace, and,
more importantly, on the farmer's bottom line. Also, as a
farmer I understand full well the importance of prevention and
planning as the first line of defense for avoiding and
controlling diseases and pests.
I realize that the agencies I would oversee, if confirmed
as Under Secretary, deal with some of the most challenging and
important issues confronting American agriculture today.
Nevertheless, I believe that I am up to the challenge and would
welcome the opportunity to serve.
Mr. Chairman, if confirmed, I pledge to work with the
members of the committee and their staff to help protect our
Nation's flocks, fields, and forests against pests and diseases
and to promote U.S. agricultural products here and abroad.
Thank you.
[The prepared statement of Mr. Knight can be found in the
appendix on page 35.]
The Chairman. Thank you. Mr. Dunn?
STATEMENT OF MICHAEL V. DUNN, OF IOWA, NOMINEE TO BE
COMMISSIONER OF THE COMMODITY FUTURES TRADING COMMISSION FOR A
TERM EXPIRING JUNE 19, 2011 (REAPPOINTMENT)
Mr. Dunn. Thank you very much, Mr. Chairman, Senator
Harkin--thank you for the kind words--and members of the
committee. I'd like to thank you for having this hearing today.
Mr. Chairman, I know you've got an extremely busy hearing
schedule, and working this nomination hearing in is a tribute
to the dedication and leadership of the committee, members, and
staff. And, speaking of staff, Mr. Chairman, I'd like to
recognize my staff from the CFTC: Nicole McNair, who makes
things operate smoothly in my office; Jason Gizzarelli, who is
legal counsel. He may look a little worn out and frazzled.
That's not from working in the office, I assure you. He and his
wife, Becca, have just brought home, recently, their firstborn
son, Noah, and he is learning firsthand the joys and
responsibility of fatherhood. And another person that probably
needs no introduction to this committee, my chief of staff,
Eric Juzenas. Eric is, I have found, an extremely capable and
talented person. I apologize to the committee and Senator
Harkin from-- stealing him from your staff, but he has been of
great counsel to me at CFTC. Let me recognize one other person
that should be no stranger here, and that's Doug Leslie, who is
our liaison to the committee, who has also worked for the
committee at various periods.
Mr. Chairman, I'm honored to be considered for a full 5-
year term as commissioner for the Commodity Futures Trading
Commission. I'd like thank President Bush for nominating me to
this position and for Ranking Democratic Member Harkin and
Minority Leader Reid for recommending me for that nomination.
I've had the privilege to serve the last year and a half at the
CFTC, and, I must say, Mr. Chairman, it's a tribute to this
committee and Congress how well the Commodity Futures
Modernization Act is working. There has been an increase of 326
percent in the volume in the futures markets since passage of
that legislation.
The CFMA as aided by--aided by globalization and electronic
markets, has facilitated an explosion of innovation and
competition in the delivery of new risk- management tools.
In furtherance of the public's interest in a fair,
transparent, and efficient marketplace, Congress has entrusted
the CFTC with oversight of the commodity trading industry. In
my opinion, my fellow commissioners in CFTC staff has done an
outstanding job in discharging this trust.
Recently, under the tutelage of Chairman Rubin Jeffries, we
have stepped up the number of public hearings and comments that
we have asked in the Federal Register.
Three of those ongoing comments on self-regulatory
organizations--governance, foreign boards of trades, and
commitment of traders that I'll talk a little bit more about --
are ongoing. We also have standing advisory committees.
One, the Agricultural Advisory Committee, the--Chairman
Jeffries and my fellow commissioners have selected me to chair.
This committee's membership includes representatives of
national farm organizations, major commodity groups,
agribusiness and agricultural bankers, and the first time ever,
to reflect their increased presence, will be members of managed
money and swaps and derivative industries. This advisory group
will hold its first meeting on August the 1st. It will be the
31st member of the advisory committee, the first that I will
chair. We will be taking up two subject matters. One will be
looking at the Commitment of Trader reports. We're seeking
public comments on the need for changes, if any, to the
reports, their continued usefulness in today's market. And,
secondly, we'll explore economic and market implications of
thinly traded price discovery markets, which is sure to
generate a great deal of discussion.
Mr. Chairman, there's been a great deal of discussion by
both this committee and the commission on the amount of foreign
exchange or forex fraud. The chairman of the commission has
asked me to head up a task force which has two goals: to raise
consumer awareness regarding forex fraud through educational
efforts, and to encourage State and local and Federal
authorities, as well as consumer advocacies and industry
organizations, to assist in our efforts at fighting forex
fraud.
The task force has been--has created and distributed a
brochure warning investors of potential fraud, and want to
protect it--and how to protect themselves from that.
Thousands of these brochures have been circulated
throughout the country. Over--close to 10,000 have been
downloaded from our Web site. The task force has facilitated
CFTC's membership and consumer alliance groups, engaged in
joint activities with the National Futures Association, the
North American Security Administrators Association, and has met
with staff of State attorney generals.
I firmly believe that along with the proposed changes in
the CEA reauthorization and this consumer education, we will
have a two-prong approach to fight forex fraud.
It's been an honor and a privilege to serve for the last
year and a half on the CFTC. If I'm confirmed for another 5-
year term, I look forward to working with the committee,
Congress, the administration, and my fellow commissioners to
fulfill the mandates of Congress at the CFTC.
I appreciate your time and effort, and look forward to
answering any questions that you may have. Thank you.
[The prepared statement of Mr. Dunn can be found in the
appendix on page 30.]
Senator Thomas [presiding]. Thank you all for your
testimony. The Chairman ran over to vote, and he will be
returning as shortly as possible. In the meantime, we'll go
ahead. Rather than take too much time, because we do--I have
some interests that I want to express to Mr. Knight,
particularly, being from Wyoming. And they're not questions,
particularly; I just want to let you know that these are areas
that I'm concerned about, and then you might wish to comment.
One is brucellosis, of course. And APHIS is very much involved
in that. And we're interested in getting returned to a
brucellosis-free situation in Wyoming. We've been free, we
think, for over a year; and so, we need to continue to work at
that.
Wildlife Services. APHIS also oversees the Wildlife
Services. We're very much involved with predators and so on.
And we are working very hard with our colleagues in Idaho and
Montana. So, we want to enlist your support to maintain and
strengthen the wildlife services. The Tri- State Predator
Program that is underway and is doing some things.
Mandatory price reporting. As you know, the law requires
mandatory price reporting. And we think this means not everyone
in the industry is participating, because some of the
difficulties there, and we hope that you'll support mandatory
price reporting.
Packers and Stockyards Act. Inspector General's Office
released a report that USDA had failed to enforce Packers and
Stockyard. It's put in place to ensure competition.
So, I hope that you will give some attention to
implementing the recommendations of the OIG report, and this
one's very important.
Animal ID, finally, is something that I think needs some
clarity, or at least the implementation in March. I'm glad
USDA's working closely with the States to try and do some
things, and I hope that we can succeed with a voluntary program
so that it doesn't necessarily become mandatory.
So, if you have any general reaction, fine; otherwise,
we'll go on to Senator Harkin.
Mr. Knight. Senator Thomas, I appreciate the concerns very
much, and I look forward to, if confirmed, working with you
very closely on each and every one of these issues.
I'll try to bring my own experience as a rancher to the
table as I look at how do we move National Animal ID forward.
Things like brucellosis, I'd never let--there's never been a
heifer calf leave the ranch that hasn't been Bangs vaccinated.
So, that same sort of approach will be taken to each and every
one of these issues.
Senator Thomas. Great. We appreciate your service. Thank
you.
Senator Baucus. If I might, Mr. Chairman--I've got to run--
if I could just put my statement in the record, and questions
in the record.
[The prepared statement of Hon. Max Baucus can be found in
the appendix on page 22.]
Senator Baucus. Basically, as you know, Mr. Knight, they
revolve around gypsum and around country-of-origin labeling.
We've got to move on that. Thank you.
Senator Thomas. Thank you, sir. Senator Harkin?
Senator Harkin. Thank you, Mr. Chairman.
Just a couple of questions for Ms. Johner.
Ms. Johner. Yes, Senator.
Senator Harkin. I--one of the things that this committee
has been involved in for a long time has been the nutrition
programs and the health of children in schools. And we
continually try to get our arms around the breakfast programs,
the school lunch programs, that type of thing.
And I don't know how familiar you are with the fruit and
vegetable program. In the last farm bill we started a program
of providing free--free--I keep repeating that-- free fresh--
fresh--fruits and vegetables--free fresh fruits and
vegetables--to kids in schools. It was sort of a pilot program.
It started with four States, 100 schools, one Indian
reservation. We wanted to see what would happen.
The only stipulation we put in there, it wouldn't--it
couldn't be in the lunch room. It had to be outside the lunch
room, either in the classroom or in the hallways or something
like that. And it had to be available during the day. Each one
of those first 100 schools that applied, not one of them wants
to drop out of the program. They all want to continue. We've
now gone from four States to 14 States, and we're well over 500
schools now, and it's just growing rapidly. Every single school
that has voluntarily participated says it's one of the best
things that's ever happened. These kids come to school in the
morning, they get the growlies around 9:00 o'clock, and they
can get carrots. I've actually seen kids, with my own eyes, eat
fresh broccoli, Craig. [Laughter.]
Senator Harkin. It's amazing. With my own eyes, I've seen
it. I couldn't believe it. Or fresh fruits. They get grapes,
strawberries, they get pineapple, all kinds of-- bananas. And
during the spring they get the fresh strawberries. I saw one
school, they bring in the fresh strawberries in the spring, and
by 10:00 a.m. there's not a strawberry left in the school. Kids
love it. They get fresh applies, oranges.
Well, that's just my way of saying it's been very popular,
and I think it's gone a long way towards helping the health of
our kids. So, I don't know if you're very familiar with it. Not
a lot of people are. I guess I'm just asking you, here, to
really take some time, familiarize yourself with the program,
go back to what we did in the farm bill, where we are in it
now, and, at some point down the pike after you assume this
position, I'd like to talk with you about how we continue to
expand and grow this fruit and vegetable program. I don't know
if you're familiar with it. I--if you aren't, I wouldn't expect
you to be unless you were involved in it in some way.
Ms. Johner. I do appreciate that question, Senator Harkin,
and, no, I'm not familiar with that. We don't participate in
that in Nebraska. However, I look forward to reviewing that
operation. It sounds great. I believe that nutrition is very
important to our kids, our children in the school systems. So,
yes, I would be eager to look into that and discuss this with
you.
Senator Harkin. I'd ask that you maybe visit one of those
States or someplace--
Ms. Johner. Yes.
Senator Harkin. --where they have this program, or where
they're expanding it rapidly. Pennsylvania's--I don't remember
all the States now. I can't remember them all. But the goal--
our goal was, when we implemented this --was, within 10 years,
to have free fresh fruits and vegetables to every elementary
school kid in America. And the way that it's been accepted and
growing, it's been phenomenal. So, I hope we can keep on that
track.
And so, I--again, sometime later we'll--I want you to--when
we come back, we'll talk about it.
Ms. Johner. Yes, Senator. If confirmed, yes, I would be
more than happy to look into that for you.
Senator Harkin. Great.
And, Bruce Knight--well, let me put it this way, Are you
going to find some--find someone to replace you as good as you
down at NRCS? [Laughter.]
Senator Harkin. I mean, I--I told you I had mixed feelings
about this one, you know. Anyway, I--you don't have to answer
that. I'm just-- [Laughter.]
Mr. Knight. I have learned, a long time ago, that there are
many people in this world much more qualified than I--
Senator Harkin. Yeah.
Mr. Knight. --and it's the people you surround yourself
with that make one a success.
Senator Harkin. Well, I hope we find someone to continue
the good work that you've done down there. And the rest of you,
congratulations. I won't--we've got to go vote and everything
like that, but I wish you all very well, and I look forward to
working with you--
Ms. Johner. Thank you, Senator.
Ms. McKay. Thank you, Senator.
Senator Harkin. --very much.
Senator Thomas. Senator Talent?
Senator Talent. Thank you, Mr. Chairman. I'll try and be
brief, because I know we have to go. All right, I'll have some
questions for the record, too. Let me just raise one issue, Mr.
Knight, with you, and that's the whole question of the Animal
ID Program that would allow for a 48-hour traceback. Now, I
just--I think it's an important tool that has the potential to
add value on the bottom line for producers who choose to
participate in it, and also to just maybe ease some of the
minds of our international trading partners, even though it's
very clear that, you know, our herds are clean and disease-
free, particularly compared to other countries.
I don't support a mandatory program, a mandatory animal ID
program, but I think a voluntary program that's developed with
industry has a lot of potential. We have to keep in mind, of
course, that what may work for beef may not work in --at least
in the same way for poultry and for pork. I also think that
it's the kind of program that either makes its value known to
producers or it doesn't. And if it doesn't, then, obviously,
you know, a compulsory program's not going to be a good idea.
And if it does, then you're going to get a lot of sign ups
without that.
Now, Secretary Johanns and I have talked at length about
this. I have also visited a lot with our producers and producer
organizations. If you want to make a comment-- and I figured
I'd let you know my views about it--if you want to make a
comment, I think it would be welcome, at this point.
Mr. Knight. Thank you, Senator Talent. In the last several
weeks, I've taken a much closer look at animal ID, since the
nomination, and it certainly will be one of the highest
priorities on my desk, if confirmed. There is a--room for
improvement in making this touchable, tangible, and
understandable for farmers and ranchers. It--we need a
voluntary program that's very easy to understand and a program
that is very apparent to a producer why it's important to both
themselves as an individual and to the industry good as a
whole. And I think those precepts could be transformational in
how we're working with the National Animal ID Program at
present.
Senator Talent. Well, I very much appreciate that comment.
It shows you've been thinking about it. And I'm also grateful
that you think of it as a priority. And I agree with you, I
think we need to really look at how we're doing this now and
how we're communicating what we're doing. And I'm pleased that
you want to make that a priority. Thank you, Mr. Chairman.
Senator Thomas. I think the chairman will be back shortly
to have some other questions. Ms. McKay, this is sort of naive,
but could you kind of summarize what's the role of the
Secretary of Agriculture for Civil Rights?
Ms. McKay. Yes, Senator. I see the role of the Assistant
Secretary for Civil Rights at USDA as one of enforcing the
Department's civil rights policy, obviously, and that means
preventing, or being proactive in preventing, discrimination,
rooting it out, if it's--if it occurs, and making sure that
corrective action is taken.
Senator Thomas. Okay. Very good. Mr. Dunn, what do you
think are the priorities that need to be considered by the
Futures Trading Commission?
Mr. Dunn. Senator, at the present time, as I indicated in
my opening statement, we have three requests for comments, one
on the self-regulatory organization governance, and that seems
to be a very, very high priority. We have gotten a great deal
of comments on that and asked a request for extension of the
time for that particular issue. Foreign boards of trades, the
globalization, and electronic trading is taking place. There's
just been explosion out there, and it has a great impact on our
internal markets, our domestic markets here in the United
States. Again, we've extended the comment period on that so
that we can hear from everybody on what they think about it.
And, finally, the Commitment of Traders report, which really is
the cornerstone for our surveillance, and used by all of the
industry in figuring out what is happening, and it ensures that
we have some type of transparency at the CFTC.
The Chairman [presiding]: Ms. Johner, the USDA Food and
Nutrition Service has a total annual budget of over $52 billion
administered by 1400 employees. As director of Nebraska Health
and Human Services, you supervised 5,000 employees, but the
annual budget approached only $1 billion. Would you please
explain for the committee your experiences that make you
qualified for managing such a large increase of resources?
Ms. Johner. Thank you, Senator. I--and I appreciate your
question. I believe I do understand the significant
responsibility that I would face if confirmed to this position.
First, I believe that my philosophy of management which I have
developed in my experience at the local and the regional and
State levels will help me in this position. I believe that
principles, as I said in my opening statement, brings quality
to the service. And I believe in basing decisions on
compassion, integrity, respect, openness, and honesty. These
principles, along with working with the talented and dedicated
staff, will allow us to accomplish the desired mission.
But this question has been raised to me before in every
step of my career. I believe I have demonstrated a track record
of success. I first started as a professional partner program
manager with a staff of 17 and a small budget, then moved to
the service area administrator, with a staff of 222 and a $2
million budget, then moved on to the director of Nebraska
Health and Human Services, with a staff of 5,000 and a budget
of over $960 million. And I have succeeded in those. But, most
importantly, I have a strong desire to help the children and
families in this Nation. I also have a strong commitment to
public service. Thank you.
The Chairman. Ms. McKay, in the area of civil rights, USDA
has had problems in the past, but improvements continue to be
made to ensure these problems do not resurface. If confirmed,
what measures will you take to build on those already taken by
USDA to ensure civil rights at USDA continue to improve and do
not take a step back?
Ms. McKay. Senator, if confirmed, my plan will be to first
educate myself on the current state of affairs to find out what
measures have been taken, what successes have occurred, what
more needs to be done. My style is to work closely with my
staff to listen to their suggestions, to rely on their
expertise. I plan to also, if confirmed, work closely with
external stakeholders, and I believe that by listening and
working collaboratively we can figure out what improvements
need to take place and move forward.
The Chairman. Mr. Dunn, Alan Greenspan, the former chairman
of the Federal Reserve system, has spoken of the benefits of
derivatives markets; specifically, the lessened vulnerability
of financial institutions to risk factors and the increased
resilience of the entire financial system as a result of
derivative use. Do you agree that financial system stability is
improved by access to derivatives?
Mr. Dunn. Yes, Mr. Chairman, I certainly wouldn't
contradict Mr. Greenspan. It's an important part of the market,
and something that we're very much aware of at the CFTC.
The Chairman. Mr. Knight, Senator Grassley had a question
here that he asked me to ask you. Soybean farmers in Iowa and
other States established a Checkoff Evaluation Task Force to
hire an outside consultant to look into how the United Soybean
Board is using $35 to $40 million in producer checkoff
assessments annually. The task force has requested funding from
USB, as well as from State checkoff boards, to pay for the
evaluation. On July 10, the USB board voted to not support this
activity. I hope you will strongly encourage USB and State
checkoff boards to fund the proposed evaluation of the soybean
checkoff program. In the event adequate funding is not made
available, I ask you to consider requesting a full audit of
USBA--USB program and financial activities by the General
Accounting Office.
Any comments you wish to make?
Mr. Knight. I--if confirmed, I will commit to taking a look
at that and sit down with Senator Grassley about his concerns
and see what resolution we can find.
The Chairman. Ms. Johner, in articles you authored and
provided to the committee you mentioned the idea of managing
programs from the perspective of a family/person-centered
practice. Would you please explain what that is?
Ms. Johner. Thank you, Senator, yes. Simply put, it's
basically just involving the people we serve, bringing them to
the table, being able to have their voice and involvement in
the planning process. And it's working as a team-base approach.
Currently, my experience has been in the, I guess,
government sector--is that we sometimes make the plans and not
involve the families. And it's important for me that we do
involve families and all team players as we continue to plan
for the success of the families we serve.
The Chairman. Mr. Knight, the regulatory mission program
area of USDA is quite extensive. Given the increased need, the
focus on very important issues of the livestock surveillance
and disease management, such as avian influenza, animal
identification, and BSC, how will you ensure that other
important functions of MRP, such as vital technologies and
field testing, improved vegetable marketing programs, and the
maintenance of proper grain inspection standards, are
sufficiently recognized and properly maintained?
Mr. Knight. In the review and the preparation for this
hearing, it became very apparent to me that one of the first
priorities will be to make sure that we have a balanced
approach. I see a tendency already for the crises of the day to
eclipse things. And you need to make sure that there is
management time for the day-to-day issues that need to
continue. So, BSC and avian influenza and National Animal ID,
while extraordinarily important, cannot be allowed to eclipse
the important functions of GIPSA, AMS, and each of the--each of
the areas there. So, I will strive to find a balanced approach
to implementation of all the programs within the mission area
of MRP.
The Chairman. Ms. McKay, as you know USDA is an extremely
large governmental department with a number of agencies and
offices, as well as over 100,000 employees.
The Office of the Assistant Secretary for Civil Rights
Mission is to, quote, ``provide leadership and direction for
the fair and equitable treatment of all USDA customers and
employees while ensuring the delivery of quality programs and
enforcement of civil rights,'' close quote. How does your
previous work experience prepare you for the responsibility of
carrying out this mission in such a large organization?
Ms. McKay. Thank you, Senator. I have spent my entire legal
career in some aspect of civil rights. I've served as a
prosecutor, a defense counsel, a neutral, and a judge. And
these experiences have afforded me the opportunity to view the
issues, the civil rights issues, from different perspectives.
I have also served as executive assistant to the head of a
Federal agency, and so I gained a lot of experience in handling
policies, procedures, personnel, budgets. And in my most recent
position I was counsel to company managers, advising them on
good management practices and fair employment practices.
And so, putting all that together, I think I bring a
perspective and an ability to see the big picture, and my
willingness to listen and to collaborate with the USDA
officials who run the programs, in coming up with a
comprehensive plan, I think, will do the job.
The Chairman. Mr. Dunn, you alluded to the fact that the
modifications made by the Commodity Futures Modernization Act
are largely viewed as positive additions to the Commodity
Exchange Act. Would you agree that these reforms are, in fact,
improving the CFTC's ability to better ensure the integrity of
the Nation's futures markets? And, if so, would you care to
elaborate on specific implementation successes?
Mr. Dunn. Mr. Chairman, the--this has really been an
unqualified success. And that's not just my opinion; it's
almost anyone that we talk to. You certainly heard a lot of
that in your hearing process on the reauthorization of the CEA.
Just the amount of the increase in the volume of over 300
percent since the passage of the CFMA speaks volumes for how
successful that particular piece of legislation is. I think,
again, that the--this committee, and Congress, as a whole, can
be just justifiably proud of what you accomplished with that.
The increase in competition, the innovation and ideas, the
types of contracts that are being offered today are all a
result of that particular legislation.
The Chairman. Now if we can just get the CEA reauthorized,
we'll be back in business.
Mr. Dunn. That would be greatly appreciated, Mr.
Chairman The Chairman. I don't think any of my colleagues
are going to be coming back, so you folks were saved by the
proverbial vote. [Laughter.]
The Chairman. We've looked at your backgrounds, you're
known personally to a number of us, so we're excited about the
fact that you're willing to commit yourselves to public
service. Again, we thank you for being here today.
I would remind everyone that any questions that you wish to
submit to these four nominees must be in by tomorrow afternoon
at 5:00 o'clock. We're going to be getting the committee
together as soon as possible to consider these nominations and
move them to the floor. We'd like to get that done before
adjournment, because all four of these folks need to be
confirmed.
So, with that, this hearing will be adjourned. And thank
you very much. [Whereupon, at 10:30 a.m, the hearing was
adjourned.]
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A P P E N D I X
July 26, 2006
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July 26, 2006
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