[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[September 2, 1992]
[Pages 1462-1466]
[From the U.S. Government Publishing Office www.gpo.gov]



[[Page 1462]]


Remarks to the Community in Humboldt, South Dakota
September 2, 1992

    Please be seated. And let me just say how very pleased I am to be 
back in this State. Today I want to give a rather serious speech. I'm 
glad you all have seats, don't have to stand through this epic. But 
first of all, I want to thank George Mickelson, the Governor. You've got 
a great Governor. He's a great friend of agriculture and a great friend 
of George and Barbara Bush.
    And I hope you'll excuse us for being a little tardy in getting here 
because Sue and Jeff Kapperman have just introduced us to one of the 
largest and nicest families I believe I've ever met back there. There's 
a representative group of them standing up against that fence; I cannot 
guarantee it's all of them.
    But in any event, we're just very pleased to be here. I want to say 
that it's fun seeing the kids and visiting the farm here and coming to 
Montrose and Humboldt. It's special because with us on the plane today, 
Air Force One, coming out was Larry Pressler, who's here someplace. Went 
right by his own home farm, I believe. We salute him and thank him for 
his support there in Washington. And I can get a little feel, coming 
back here, for what Money magazine was talking about when they named 
Sioux Falls the best place to live in America. That's pretty high 
praise.
    I also want to salute another public servant and one who has been at 
my side for a long time, the Lieutenant Governor, Walt Miller. I think 
he's here with us, Walter Miller; anyway, an old friend. And Mayor White 
greeted us. I thank him for that. Senator Shanard is here, Don Jarrett 
of the South Dakota Wheat Commission, and two people that I plan on 
seeing in Washington. I've known Charlene Haar. She's a good woman and a 
good, active campaigner. And I salute her, for the United States Senate, 
and also John Timmer, running for the congressional seat here. I'd back 
him. We've got to make a change in this gridlocked Congress. And of 
course, I'd be remiss if I didn't single out another guy that's been at 
my side in politics, your former Governor, Bill Janklow. I thank him and 
also Don Peterson, out there helping with the Republican election effort 
this year, so many people doing so much for what I think is good, sound 
government.
    I'm told that Jeff is a Democrat. But looking around at this 
setting, even I can't hold that against him. [Laughter] And I must say 
that I am very, very grateful to him and to his family for letting this 
mob, including you guys out here, hit this beautiful place of his. It's 
something very special about talking about agriculture in a setting 
that's so down-to-earth and so wonderfully family oriented. Jeff and 
Sue, as family farmers, represent something very important about this 
State and, I would say, also very important about this country. 
Agricultural families represent the heart of South Dakota's economy.
    So I came out here today to rural America to talk with you about how 
I have been fighting and will continue to fight for the economic 
security of American farmers through a program that is based on opening 
markets abroad and then helping you export and grow more, keeping the 
Government off your back as best we can, and being there to help you get 
back on your feet when disaster strikes.
    I plan to speak mainly today about wheat and about disaster 
assistance, but let me just say to America's corn growers--I noticed the 
cornfields as we came in--that I am a strong supporter of ethanol. We 
have worked hard to see ethanol demand go to new heights through 
everything from tax credits to research and new programs for clean 
fuels. And we're working now on a very difficult legal problem facing 
the White House: to make sure that ethanol plays a leading role in 
America's drive for cleaner air and America's drive for greater markets, 
diverse markets for the corn growers of this country. And we're going to 
whip that problem.
    We now enjoy an unparalleled reign of free markets and free people 
around the globe, an unprecedented opportunity for

[[Page 1463]]

growth. When I think of my Presidency, I must say I look at these kids, 
and I think we are very lucky that in the last 3 years we've been able 
to reduce the threat of nuclear war that has scared every family half to 
death in this country.
    Today, when I talk to Boris Yeltsin, the Russian President--and I 
talked to him just last week--we don't talk about nuclear weapons. We 
talk about how much grain we can provide to Russian consumers and how we 
can solidify his democracy, his freedom, his reforms. We also talk about 
the biggest swords-into-plowshares agreement ever, one that will return 
that Russian bomb-grade material, uranium, into fuel for the peaceful 
generation of electric power right here in America.
    The American people are universally respected as the most generous 
and innovative on Earth. American products, whether it is a pair of blue 
jeans spun from Texas cotton or a bushel of wheat from here in South 
Dakota, are in demand everywhere. The challenge before us, then, is to 
seize this moment. Our challenge now is to win the economic competition, 
literally to win the peace. In the 1990's, we must be a military 
superpower, an economic superpower, and an export superpower.
    In 2 months, you're going to be asked to choose between two 
completely different versions of how to win this global economic 
competition. One vision is to turn inward, to try to protect what we 
have, to put up walls around America. Mine is to look forward, to open 
new markets to American exports, to prepare our work force to compete, 
to keep the social fabric of this country strong, and to save and invest 
in those things that will help us win.
    The best example that I can cite of our forward-looking approach is 
the work we've done to open new markets for American agriculture. In the 
last 4 years, we have signed 11 bilateral agreements with 10 countries 
to open up new markets for American farm exports. We signed agreements 
to increase beef exports to Japan and Korea, now the third largest 
market for U.S. beef. We've made inroads throughout Asia, which now 
accounts for 38 percent of American agricultural exports, 38 percent 
going to Asia. And just last month, we concluded the North American free 
trade agreement, which will boost our $3 billion worth of agricultural 
exports to Mexico.
    One in every three acres planted in this country produces crops for 
export. That may be hard for some to realize, but that's a lot of 
export. One in every three goes to exports. U.S. agricultural exports 
support over a million jobs. And just since 1989, our agricultural trade 
has reduced our overall trade deficit by almost $69 billion. You are 
doing the Lord's work.
    Make no mistake, if the other side puts up walls around America, 
whether they're high tariff walls or high tax walls, the first loser is 
going to be the American farmer. Now, let me drive this point home. 
Seventy-six percent of South Dakota's wheat is exported, 76 percent of 
it. Agriculture contributes $13.2 billion to South Dakota's economy, 3 
times more than any other industry. We were talking about it with the 
Governor coming in here. And if Governor Clinton gets infected with that 
antitrade strain from the protectionist crowd he's running around with, 
it will be the American farmer that catches pneumonia, and South Dakota 
is going to get mighty sick.
    Where does the Governor stand on free trade, on our historic free 
trade agreement with Mexico? He won't say, says nothing about all of 
that right now, is studying it, taking another look. The newspapers 
reported in Washington this morning--I don't like to read those papers 
very much, but I do from time to time--and they reported this morning 
that one of the most powerful labor bosses in the country, Lane 
Kirkland, said that they decided to, the unions decided to let Governor 
Clinton off the hook on this one until after the election. They'll let 
him be on both sides of this free trade agreement now.
    Big labor made it clear that they are vehemently opposed to this 
free trade agreement, mind you. And one labor source said, and this is a 
quote: ``There have been private conversations with the candidate, and 
he remains receptive to us.'' I have found as President you cannot be on 
both sides of every issue. You've got to take a position and say what 
you think is right, whether some people like it or some people don't.

[[Page 1464]]

This was in the paper today. Here's another quote from them: ``Labor 
does not plan to push Clinton for specific public commitments that might 
prove politically embarrassing to his candidacy.'' I think you're 
entitled to know, not just as voters but as people that are doing the 
Lord's work out in the field, you're entitled to know where a person 
stands on something as fundamental as a free trade agreement that's 
going to open up more markets for your products.
    You cannot be on every side of every issue. He's stuck riding the 
fence so hard he's got saddle sores. I might say ``straddle sores''. 
[Laughter] But don't kid yourselves. The money, the manpower, and the 
support for his campaign comes from the opponents of free trade. And 
after the election, they'll call in that anti-free-trade IOU, and then 
you'd better watch out. American agricultural exports and job-creating 
exports of every kind will be the victims.
    I don't believe that this double-speak means one thing except 
double-trouble. The Congress is going to take this vacillation as 
weakness, and the vital national economic interest will lose out to 
congressional log-rolling, back-scratching, and business-as-usual.
    Over 7.5 million jobs, American jobs, are tied to merchandise 
exports. We can create hundreds of thousands of additional new jobs with 
a free trade agreement. And we cannot afford a President who will put 
these jobs at risk. That's why I fought very hard to reach a new 
agreement under the GATT, the General Agreement on Tariffs and Trade. 
USDA, Ag Department, estimates that a successful GATT agreement will add 
over a billion dollars a year to farm income, a billion dollars a year. 
And it will do something else. It will force our competitors, especially 
in the European Community, to reduce their excessive export subsidies in 
agriculture. We want free trade, but we must insist on fair trade. To 
help us reach good agreements, I've been using a strategy that won us 
military security: peace through strength, no unilateral disarmament.
    Our export enhancement program--you all refer to it as EEP--have 
enabled us to help farmers fight for market share against the EC's 
subsidized exports. Since 1989, we have doubled the number of EEP 
initiatives. We've nearly tripled the value of EEP bonuses. Just since 
the beginning of this year, we've awarded $914 million worth of EEP 
bonuses, leading to sales of over $3 billion under the EEP program: 
wheat to Algeria, Egypt, the Philippines; veg oil to Morocco and Turkey; 
a pork EEP to the former Soviet Union. In total, our EEP's have helped 
us fight back against European subsidies and sell almost $10 billion 
worth of commodities to 93 countries during these past 4 years.
    But now we need to do more. The fact is that the prices farmers are 
receiving are too low today. To get the prices up, we must expand 
demand, and that means an aggressive export policy. Today I am 
announcing a broadside of EEP initiatives to sell over one billion 
bushels or 30 million metric tons of U.S. wheat, with a market value of 
over $3 billion, to 28 countries around the world. This is the largest 
quantity of wheat ever made available under the EEP program at one time.
    There is no question that in a world of open trade, the U.S. would 
be the premier supplier of wheat to world markets. That's why we are 
committed to reducing subsidies worldwide. But my announcement today 
should leave no doubt. With heavy EC subsidies continuing, this EEP 
program is vital, and we will use it as necessary. I am putting foreign 
governments on notice to that effect right here today in South Dakota.
    That's why I am also taking a second step today to show that we're 
in this competition for the long haul. Two years ago, I worked with 
Congress to include two so-called GATT triggers in our law. They were a 
warning to other nations that we would counter their subsidized exports 
if they would not agree to negotiated cuts. The date of the first 
trigger has passed. So today we are acting to protect the American 
farmer. We will increase programs to promote agricultural exports by $1 
billion. The law said we would do this in 1994 and 1995. I am announcing 
that we will increase these programs beginning now. And my support for 
wheat is the first step.
    Let me make this comment to those

[[Page 1465]]

friends of ours overseas also. Let me be clear: This action is aimed at 
those who subsidize, not at those, such as Australia and others, who do 
not subsidize.
    Today's wheat EEP initiatives will give farmers, exporters, and 
buyers more certainty about market opportunities. We want to help 
growers plan, and we want to strengthen America's reputation as a 
reliable supplier. The other side's approach to trade is to create 
barriers here, right here in this country, that increase prices, dull 
our competitive edge, and hurt our growth. The usual strategy is to 
propose production controls. My approach is to help our farmers take the 
battle to the competition; offense, not defense. My strategy is to 
outproduce our competition and beat their socks off in the marketplace.
    But as every farmer here knows, to win in the marketplace we must 
also take steps today that will make us more competitive tomorrow. So 
another part of my agricultural program is to help farmers keep pace by 
developing new techniques through our national research initiative for 
fighting pests and disease, for understanding human nutrition, for 
growing more. We're increasing research in biotechnology and into new 
uses of ag products from cleaner fuels to printer's ink to biodegradable 
plastics. The initiatives that we are pushing will help strengthen 
prices, boost farm income, and create jobs. That's why farm income over 
the past 3 years has averaged a higher level than at any time in 
American history. And more of that income is coming from the market, 
instead of from the Government, than at any time in decades.
    But even so, 1992 has been a difficult year in parts for rural 
America. Last fall's drought, followed by a freeze in late May, severely 
weakened the winter wheat crop in Kansas and right here in South Dakota 
and elsewhere. Weather has hit farmers from Nebraska to New York, 
California to the Cotton Belt. And now this Louisiana sugarcane has been 
damaged by the winds of Hurricane Andrew. Barbara and I saw some of that 
devastation yesterday there in Jeanerette, Louisiana.
    For some farmers, these disasters come on the heels of losses in 
1990 and 1991. Late last year, I signed a bill to provide about $1 
billion in disaster assistance for the 1990 and 1991 crops. Today I 
would like to announce the next step. I am releasing an additional $755 
million in disaster assistance funds. A minimum of $100 million is set 
aside for crops planted in 1991 for harvest in 1992, such as winter 
wheat. American farmers need help. With this action, this disaster 
relief action, you will get it.
    Now, I know that this $755 million is not going to solve every 
problem. We will begin signups for winter wheat next Tuesday, other 
crops shortly thereafter. We can't prevent an early freeze, and I know 
that this amount may not be enough to pay the full amount of every loss. 
But these funds will help keep farmers on their feet so that bankers 
will work with you and next season's crop can be planted.
    We've worked hard over the past several years to reduce farm debt. 
Debt is way down; equity is up; balance sheets are stronger. Today's 
announcement will help secure those gains to advance the economic 
security of the American farmer. If additional disaster funds is needed, 
we will go to bat with the Congress to secure them.
    You see, an economic strategy based on competition is not an 
abandonment of governmental responsibility. Sometimes when disaster 
strikes, the Federal Government is uniquely equipped to help. We've seen 
that this week in Florida and Louisiana in the aftermath of the 
hurricane. That's one reason I went down to Florida and Louisiana again 
yesterday, to see the progress and the problems with my own eyes. And 
we're going to stay with the people of Florida and Louisiana until we 
get that job done.
    Now getting the job done in agriculture means Government should get 
out of the way of the producers when intervention will hurt our 
competitiveness. Take the subject of regulation. My opponents want to 
take the world's safest food supply, tie it up with more regulation, and 
make it more expensive for the consumer. We want to work to make our 
food supply safe and affordable without this extremism, without this 
hysteria.
    Take the subject of taxation. My opponent says that Government takes 
too much of your money in taxes. But they want to

[[Page 1466]]

take more of it, $150 billion already proposed in new taxes, new taxes 
on small business to pay for Government health and mandatory training. I 
want to cut the taxes, cut them across the board, reduce the burden 
particularly on small business. Small business is overregulated and 
overtaxed.
    Take the subject of spending, which is absolutely critical, Federal 
spending. They want to use those no taxes to add $220 billion in new 
spending. And Newsweek magazine pointed out this week that Governor 
Clinton failed even to put a price tag on his four biggest programs. The 
real cost of his spending binge, said Newsweek, ``is arguably at least 
three times higher than that.'' That's the quote from Newsweek.
    And remember, we tried this recipe of higher taxes and higher 
spending before. We went down the path of foreign policy inexperience. 
We tried the combination of a Democratic-controlled Congress and a 
Democratic President, and you remember the results. We had back-to-back 
years of double-digit inflation. And farmers were devastated. We had 
interest rates at 21.5 percent. And farmers were devastated. We had 
grain embargoes--nobody here forgets that--we had grain embargoes and 
food as a foreign policy weapon. And farmers were devastated.
    In this political year it is easy to be fooled. The new kid on the 
block shows up with a new set of lyrics, but it is the same old song. 
Wouldn't it be ironic if now, at the exact moment of America's triumph 
around the world, we were to turn backwards, to turn inward?
    Not far from here, on the way into Humboldt, there's a sign that 
calls this a small town with a big heart. Well, now that the entire 
world is turning our way, toward open markets, less bureaucracy, less 
regulation, more freedom, more competition, we Americans must not and 
cannot lose heart.
    We've learned this: Freedom works. Opportunity awaits those who dare 
to reach for it. Competition brings out the best in our people, 
especially those here working in the soil, those farmers that know how 
to really get out there and do the hard work. If we remember these home 
truths, there is no telling what we can accomplish, for America's finest 
hour is yet to come.
    The opposition tells you that we're not respected abroad. They tell 
you that we're in decline. We are not a declining nation. We've had 
enormously difficult economic problems; so has the entire world, caught 
up in a global recession. But we are the United States of America. And 
if we follow these policies, we can outcompete, outhustle, outwork 
anybody on the face of the Earth.
    I wish I were this guy's age over here. It's going to be an exciting 
time ahead. And the American farmer is going to lead the way. Thank you 
all very, very much. And may God bless our great country. Thank you.

                    Note: The President spoke at 10:05 a.m. at the 
                        Kapperman farm. In his remarks, he referred to 
                        George Shanard, South Dakota State Senate 
                        majority leader, and Don Peterson, South Dakota 
                        Republican Party chairman.