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Today we close another chapter in the '07 Farm Bill preparations by releasing the fifth and the final Farm Bill Analysis Paper. The paper is entitled, "Strengthening the Foundation for Future Growth in U.S. Agriculture."

Agriculture is in a state of dynamic change. International trade continues to grow in importance, while consumers demand newer and fresher and better products. Off-farm income is more and more crucial to farm prosperity, while technological advances are significantly increasing productivity. We will need our impressive advances in productivity to continue in order to control costs and maintain competitiveness and to expand our exports. And all of this is dependent upon equipping young people and those new to farming with the tools and the support to carry on this great American tradition. To determine how best to serve the agricultural community as they navigate this course to the future, this paper examines the evolution of the food marketplace and the strategies that farmers have used to meet the emerging challenges.

It finds that while getting bigger is still a widely adapted strategy to remain competitive, there are farms of all sizes that have responded to niche and local markets or varied business strategies, and they have become profitable. The paper concludes with recognizing three key forces that are driving the agricultural marketplace. And those would be international trade, research and development and the growing threat of pests and diseases.

The final section of the analysis paper discusses challenges and issues in preparing new farmers for this competitive marketplace, especially the next generation. As many of you know, supporting the next generation of farmers has been a theme throughout the Farm Bill preparations.

Every listening session began with an opportunity for young people who are interested in agriculture to present a concern, to offer a suggestion. They confirmed something that's often talked about in coffee shops and co-ops -- that there are fewer young people farming today. The decline in young farmers between 1982 and 2002 has raised concerns about whether there will be enough new farmers to replace those retiring.

However, the analysis also found that many young farmers, while not the primary operators, are still present on farms. They are very involved in the operation. Why is that significant? Because it means we do have an experienced, educated pool of young farmers who are waiting in the wings. While there are a number of potential barriers that can prevent young farmers from entering farming, this analysis outlines options for developing new farm policy that provides support for future farmers.

For example, primary among them is helping to provide the capital needed to begin farming. In 2002 the value of land and buildings averaged $595,000 per principal operators 35 years old and younger. This can be a significant hurdle for farmers of any age but especially for someone just starting out. For some, renting land can overcome the hurdle; for others, access to loans can make a difference.

During our listening sessions last year, many people suggested raising the ceiling on our direct and guaranteed operating and farm ownership loans. The ceiling on direct loans at $200,000 has not been raised since 1984.

Another alternative is to enhance the financial benefits of the safety net's risk management programs. As an example, for young or beginning farmers we could increase the percentage of enrolled base acres that are eligible for direct or counter cyclical payments.

These are just a few of the alternatives for supporting future farmers and the future of agriculture. I encourage anyone interested in engaging in Farm Bill discussions to take advantage of the hours of research and to take a look at all of our analysis papers.

As I've said before, the purpose of these papers is not to lay out administration farm bill policy proposals. The purpose is to educate the public and policymakers alike about the challenges facing agriculture and some alternatives we might consider as we contemplate new policy.

Caption: Ag Secretary Mike Johanns concluded his farm bill listening sessions with an analysis of agriculture's future.