Good morning. Today's hearing is designed for this Subcommittee to exercise its oversight responsibilities with regard to the ongoing reform of America's dairy industry as outlined and mandated under the Federal Agriculture Improvement and Reform Act of 1996, more commonly known as the Farm Bill.

As anyone familiar with the work of this Subcommittee knows, dairy policy in this country is a complicated patchwork involving many economic and regional variables. The reform of federal dairy policy, and the desire to transition to a more market-oriented approach to dairy, consumed most of the attention of this Subcommittee last year. It has now been over a year since the Farm Bill became law. Today, we will receive a progress report from the Department of Agriculture on their efforts to date, as well as a timeline for their continued activities in dairy reform.

Following that, representatives of the dairy industry are here to give their perceptions of how the reform process is proceeding, and to share their vision of the future of these reform measures.

Let me be clear about one thing. We are not here to re-debate the Farm Bill. All of our discussions today need to built upon the framework established last year. Clearly, it is time to move the process forward.

I know it is unrealistic to expect America's dairy industry to speak with one voice. I do, hope, however, that at least those different voices can be more harmonious. Parochial, regional, and often narrow perspectives have too often diluted the ability of the dairy industry to influence and contribute to the national debate on the future of American agriculture. I hope we can change this -- I know that we should.

Increased cooperation within America's dairy industry will allow it greater opportunity to take advantage of international trading possibilities. Clearly we are entering into an era of increased dependence on both domestic and international market forces instead of government supports.

The goal of the dairy reforms initiated last year was to enhance our ability to remain competitive internationally. The Agriculture Department's Foreign Agriculture Service has concluded that, as a result of the Uruguay Round's subsidy reduction requirements, there will be a potential for U.S. expansion into 17 percent of the world market for nonfat dry milk, 23 percent of the world cheese market, and 31 percent of the world's butter market by the year 2000.

I am committed to working with the American dairy industry, as well as the Department of Agriculture, to make that potential a reality.

I know that dairy reform is not an easy process, and that many of America's dairymen are uncertain as to what tomorrow holds. The recent slump in milk prices has added to these concerns, and I share them. I am interested, as well, to hear the Department's short-term plan to address this matter.

I look forward to receiving today's testimony, and I welcome all of our witnesses and guests here this morning. With that, I will yield to our distinguished Ranking Member, Mr. Peterson, for any opening statement he would like to make.