I'm particularly pleased to have Undersecretary Gus Schumacher here with us this morning. Gus is a personal friend of mine and all of us who are involved in the State Department of Agriculture around the country, having served as Secretary of Agriculture for the State of Massachusetts. Gus has been with us before in Tennessee. The last time he was here he spoke to our Governor's conference in agriculture and forestry in Nashville. While he was there he went down and bought a guitar -- banjo. I think he tried to get on the Grand Ol' Opry. He didn't quite make that but he did buy a guitar. I think he also bought a pair of western boots and hat, but he didn't tell us about that. He kept that under his hat. So, Gus, I'm assuming that while you're here in Memphis you'll go down to Beale Street and buy a trumpet or a trombone and participate in some of the music culture here in Memphis as we'll be glad for you to do. But Gus is a -- Gus is a great fellow. He comes from the State of Massachusetts but he has a great understanding of U.S. agriculture whether it be the Mid-South or Midwest or northeast, or whatever. He serves U.S. agriculture in a very, very fine way. We're glad to have you here with us this morning.

I think it's appropriate that we're meeting here in Memphis for several reasons. Memphis has long been recognized as a center of commerce and particularly of agriculture commerce. I'm told that Memphis is the second largest inland port in the country, providing access to markets across the globe for billions of dollars worth of farm and forest products each year. Agriculture is one of Tennessee's core industries, if not the core industry, generating about two and a half billion dollars in cash receipts at the farm level and more than three billion dollars in raw and processed agricultural forest products enter export markets from Tennessee every year outpacing all other commodities including chemicals, transportation, equipment and electronics. That's a fact that is not really well-known or recognized in the general population and others in commerce as well.

Agriculture has a tremendous impact on not only the economy of our state and this region but the quality of life and welfare or our whole region. All across the nation agriculture has been undergoing tremendous changes, certainly all of you know, and Tennessee is no exception. Exactly what the future holds for us is not totally clear, but we know that the continued growth of U.S. Agriculture exports will be paramount to the health of our economy of our respective states and certainly our nation as a whole as we enter into the next century.

The importance of U.S. agriculture exports underscores the significance of today meeting. I want to applaud the work that the USDA and the Office of the U.S. Trade Representative work that they're doing preparing for the upcoming World Trade Organization Ministerial Conference in Seattle which is, of course, what this listening session is all about today. Today's session, one of twelve scheduled across the country, will no doubt be important in bringing much needed attention to key agriculture issues to be discussed in Seattle. Our ability to maintain and expand markets in a fair trade environment will determine to a larger extent the future of agriculture in our country.

You know, all of us have said, I think rightly so, that given a level playing field that American farmers can compete with any farmers anywhere in the world. World agriculture and forestry products continues to be inherently strong despite economic problems that thwart that demand. With the promise of the upcoming trade negotiations holds for advancing in market access and removing the trade barriers, American agriculture stands on the cusp, so to speak, of an even greater economic opportunity. I think it's almost impossible to imagine that 25 years ago that the export boom of the 1970's could have been matched much less succeeded by the level of trade that we enjoy today.

During the 60's and 70's value and products account for one third of all U.S. Ag exports. Today value added products represent more than half the total value of U.S. agriculture exports which represents a tremendous change in the kind of stuff that we're sending abroad. After more than 60 years of supply and management programs in agriculture, American farmers are transitioning to a more market oriented system under the provisions of the last farm bill. Some say, and I agree, that upside profit potential should improve under those conditions but the downside risk also increases and competitive forces will also demand greater efficiency and innovation on the farm and better access to the expanding markets around the world. As agriculture and market forces which drive agriculture change, we have to change with those forces and we have tried to do that here in Tennessee. We're working with farmers, agribusiness leaders, our federal partners in research and education institutions to help build greater economic opportunity both domestically and internationally.

We have dedicated significantly more resources for us in our department to support programs to focus exclusively on building foreign markets and increasing exports for Tennessee farm and forestry products. I hope much of that is going on in all of the other states as well. The recent issues include for us the European Trade Mission for horticultural products one of the most promising areas of trade for our producers here in Tennessee as well as producers in other states and a reverse trade mission for Asian food buyers here as well.

In July we will also host a Reverse Trade Mission for Horticultural Products. Another priority area includes livestock trade with the long-standing relationship that we have in Mexico. I believe these and other activities can and will make a difference to the future of our farmers here in Tennessee. The stage is now being set for the Ministerial Conference in November and will help determine the success of these and other programs that are undertaken at the state level. That's why it's so important to us in our activities in the State Department of Agriculture and our partners in both our sister agencies and private institutions as well. The international trade to a large extent is determined by relationships. You do business with your friends.

In Tennessee we will support efforts to build trading relationships based on principles of fair and open trade. Too often we think only within the confines of our own state borders. Cooperative efforts and partnering will be vital to the growth and development of markets for farmers across the country. We want continue to build on our cooperative relationship with the USDA's Foreign Agricultural Service, the Office of U.S. Trade Representative, our sister states, Southern United States Trade Association and other partners and organizations. Again, our thanks go out to all of you, particularly to our friends from our neighboring states for being with us with today. I look forward to hearing all of your comments along with the panel members.

In addition to those words of welcome, it is my privilege to introduce our moderator for today and a great moderator. Earl Manning was born and reared on a cotton, cattle dairy farm in Desoto County, Mississippi. I doubt there's many cotton, cattle and dairy farmers left in Mississippi in terms of being that diversified. He earned a Bachelor of Science degree in agriculture from Mississippi State. He has a Mississippi State bulldog on his lapel this morning. He did last night at dinner as well. He is a dairy production major. He did graduate study work to continue his education. Before becoming a progressive farmer he worked as an assistant herdman in the Tennessee area operations. He was assistant to the associate and district sales representative of a major feed company. Earl joined the Progressive Farmer as an associate editor for the Kentucky Tennessee Edition in 1968. Since 1974 he has served as the Mid-South regional editor base here in Memphis. His experience has led to numerous awards in both fields of agriculture and journalism. Earl is recognized as the Dean of Farm Journalism, not because he is so old or been there longer than anybody, he's just better and we're honored to have him here as our moderator here today. We in Tennessee have a great deal of respect for Earl Manning. He is a true professional and someone that we're proud of, proud to call a fellow Tennesseean, Earl Manning.