CARGILL OFFICIAL DEFENDS CERTIFICATE PROGRAMS

  The use of generic in-kind commodity
  certificates has helped ease storage problems and is a
  necessary part of export promotion programs, a senior executive
  for the world's largest grain company said.
      Testifying before the House Agriculture subcommittee on
  wheat, soybeans and feedgrains, Robbin Johnson, vice president
  of Cargill, Inc., disputed claims that U.S. grain companies
  have made huge profits from certificate trading.
      "The certs program is not in any way a windfall to the
  trade," he said. Johnson said that Cargill has been dealing
  with a two pct spread in certificate transactions, and that
  this is within the normal grain marketing levels.
      Johnson recognized current concern over the cost of
  certificates as compared to cash, but said that critics need to
  look more closely at the savings caused by certs, noting for
  example that widespread use of certs in the PIK and Roll
  marketing technique last summer helped ease storage costs.
      Certificates are also an important part of any export
  promotion program, he said.
      "The more you look at ways to expand export markets, the
  more you have to look at ways to expand certs to put more grain
  into the market to meet demand," he said.
      Subcommittee chairman Dan Glickman (D-Kans.) said his
  committee would be looking at the certificate program later
  this year and studying the General Accounting Office report on
  certificate costs.
  

