    [Senate Hearing 116-477]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 116-477

     LEGISLATIVE HEARING TO REVIEW S. 3894, THE GROWING CLIMATE SOLUTIONS
                                  ACT OF 2020

    =======================================================================

                                    HEARING

                                   BEFORE THE

                           COMMITTEE ON AGRICULTURE,
                            NUTRITION, AND FORESTRY

                              UNITED STATES SENATE

                         ONE HUNDRED SIXTEENTH CONGRESS

                                 SECOND SESSION

                                   __________

                                 JUNE 24, 2020

                                   __________

                           Printed for the use of the
               Committee on Agriculture, Nutrition, and Forestry

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

           Available via the World Wide Web: http://www.govinfo.gov/

                                  __________

                        U.S. GOVERNMENT PUBLISHING OFFICE
    45-154 PDF                 WASHINGTON : 2022

    -----------------------------------------------------------------------------------

               COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

                         PAT ROBERTS, Kansas, Chairman
    MITCH McCONNELL, Kentucky            DEBBIE STABENOW, Michigan
    JOHN BOOZMAN, Arkansas               PATRICK J. LEAHY, Vermont
    JOHN HOEVEN, North Dakota            SHERROD BROWN, Ohio
    JONI ERNST, Iowa                     AMY KLOBUCHAR, Minnesota
    CINDY HYDE-SMITH, Mississippi        MICHAEL BENNET, Colorado
    MIKE BRAUN, Indiana                  KIRSTEN GILLIBRAND, New York
    CHARLES GRASSLEY, Iowa               ROBERT P. CASEY, Jr., Pennsylvania
    JOHN THUNE, South Dakota             TINA SMITH, Minnesota
    DEB FISCHER, Nebraska                RICHARD DURBIN, Illinois
    KELLY LOEFFLER, Georgia

                 James A. Glueck, Jr., Majority Staff Director
                    DaNita M. Murray, Majority Chief Counsel
                        Jessica L. Williams, Chief Clerk
                   Joseph A. Shultz, Minority Staff Director
                   Mary Beth Schultz, Minority Chief Counsel

                               C O N T E N T S

                                  ----------

                            Wednesday, June 24, 2020

                                                                       Page

    Hearing:

    Legislative Hearing to Review S. 3894, The Growing Climate
      Solutions Act of 2020..........................................     1

                                  ----------

                        STATEMENTS PRESENTED BY SENATORS

    Roberts, Hon. Pat, U.S. Senator from the State of Kansas,
      Chairman, Committee on Agriculture, Nutrition, and Forestry....     1
    Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan...     2

                                   WITNESSES

    Bible, Brent, Corn and Soybean Producer, Farmer Advisor,
      Environmental Defense Fund, Lafayette, IN......................     5
    Duvall, Zippy, President, American Farm Bureau Federation,
      Greensboro, GA.................................................     7
    Larew, Rob, President, National Farmers Union, Greenville, WV....     8
    Weller, Jason Vice President, Truterra, Land O'lakes, Inc., Arden
      Hills, MN......................................................     9

                                  ----------

                                    APPENDIX

    Prepared Statements:
        Bible, Brent.................................................    34
        Duvall, Zippy................................................    38
        Larew, Rob...................................................    43
        Weller, Jason................................................    49

    Document(s) Submitted for the Record:
    Stabenow, Hon. Debbie:
        Ecosystem Services Market Consortium, letter of support......    58
        Growth Energy, letter of support.............................    64
        Indigo Agriculture, letter of support........................    66
        National Milk Producers Federation, letter of support........    69
        The National Pork Producers Council, letter of support.......    72
        Senator Sheldon Whitehouse, letter of support................    73
        Sustainable Food Policy Alliance, letter of support..........    75

    Question and Answer:
    Bible, Brent:
        Written response to questions from Hon. Pat Roberts..........    80
        Written response to questions from Hon. Debbie Stabenow......    80
        Written response to questions from Hon. Amy Klobuchar........    81
    Duvall, Zippy:
        Written response to questions from Hon. Pat Roberts..........    83
        Written response to questions from Hon. Charles Grassley.....    83
    Larew, Rob:
        Written response to questions from Hon. Pat Roberts..........    85
        Written response to questions from Hon. Debbie Stabenow......    85
        Written response to questions from Hon. Charles Grassley.....    86
        Written response to questions from Hon. Robert P. Casey, Jr..    87
    Weller, Jason:
        Written response to questions from Hon. Pat Roberts..........    89
        Written response to questions from Hon. Charles Grassley.....    89
        Written response to questions from Hon. Robert P. Casey, Jr..    90

     LEGISLATIVE HEARING TO REVIEW S. 3894, THE GROWING CLIMATE SOLUTIONS
                                  ACT OF 2020

                                  ----------

                            WEDNESDAY, JUNE 24, 2020

                                           U.S. Senate,
             Committee on Agriculture, Nutrition, and Forestry,
                                                        Washington, DC.
        The Committee met, pursuant to notice, at 10:09 a.m., in
    SD-G50, Dirksen Senate Office Building, Hon. Pat Roberts,
    Chairman of the Committee, presiding.
        Present: Roberts, Boozman, Hoeven, Ernst, Hyde-Smith,
    Braun, Grassley, Thune, Fischer, Loeffler, Stabenow, Brown,
    Klobuchar, Bennet, Gillibrand, Casey, and Smith.

     STATEMENT OF HON. PAT ROBERTS, U.S. SENATOR FROM THE STATE OF
    KANSAS, CHAIRMAN, U.S. COMMITTEE ON AGRICULTURE, NUTRITION, AND
                                FORESTRY

        Chairman Roberts. I call this hearing of the U.S. Senate
    Committee on Agriculture, Nutrition, and Forestry to order.
        Today, we will hear stakeholder perspectives on S. 3894,
    the Growing Climate Solutions Act introduced by Senator Braun
    and cosponsored by our Committee Ranking Member, Senator
    Stabenow.
        I want to thank our witnesses for their willingness to
    participate in our first-ever hearing conducted in this
    fashion, where some participants are here in person and
    obviously some are joining us remotely through technology.
        I want to thank Senator Braun especially for his hard work,
    and you would expect that from somebody who is a farmer and a
    forester from Indiana. Mike, thank you very much.
        Senate S. 3894 would assist growers in monetizing voluntary
    conservation practices on their farms, ranches, forests, and
    businesses. This legislation establishes a program at the
    Department of Agriculture to certify third-party technical
    service providers who assist farmers to capture carbon credits
    through voluntary conservation practices.
        The challenges that have confronted the entire food value
    chain during the COVID-19 pandemic have demonstrated the vital
    importance of stable and resilient food production. Over the
    past several months, farmers and ranchers have continued to do
    their work and the agricultural value chain continues to
    operate, though not without severe challenges.
        Agricultural productivity has largely been stable. Our cows
    continue to graze in pastures and be finished in feed yards in
    Kansas and all other States. Crops continue to be planted and
    harvested. These kind of things do not wait.
        At the same time, we have seen unprecedented disruption to
    the economy, and limits to our commuting, vacationing, and
    international travel have resulted in drastic, short-term
    declines in global greenhouse emissions.
        A recent study published in the Journal ``Nature Climate
    Change'' has estimated that our global emissions have been cut
    by 17 percent as human travel during the global pandemic has
    slowed.
        Maintaining the health of our planet for future generations
    is, of course, paramount, so is feeding the billions of people
    that populate the earth today and in the years ahead.
        In order for these two distinct needs to be met, there must
    be meaningful acknowledgment and support for the role
    technology plays in feeding more and more hungry people.
    Growing demand and production must be balanced with
    consideration for impacts on soil, water, and other natural
    resources.
        I want to emphasize the importance of accurate data in any
    climate-related discussion. How much have improved farming
    technologies and practices already accomplished in sequestering
    carbon? What roles should the Department of Agriculture have in
    gathering data and conducting analysis on greenhouse emissions?
        There is certainly no other agency or committee in Congress
    that prioritizes and understands farmers, our producers,
    ranchers, private foresters, and rural agriculture businesses
    as well as the Department of Agriculture and our Agriculture
    Committees.
        Farmers and ranchers manage unique risk, such as the
    weather, the global marketplace, agriculture production,
    tariffs. Further, regulatory burdens can add costs and hinder
    commonsense innovation.
        Today, we will learn more about the actions that are
    already under way in the agriculture sector to address some of
    these challenges and opportunities.
        With that, I recognize the Ranking Member of our Committee,
    Senator Stabenow, for any remarks.

    STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR FROM THE STATE
                              OF MICHIGAN

        Senator Stabenow. Thank you so much, Mr. Chairman. I really
    appreciate your holding this important hearing today, and it is
    my great pleasure to be partnering with Senator Braun in this
    effort.
        Our world has changed drastically since the last time this
    Committee met. That is for sure. The COVID-19 crisis has
    affected every family in America. It has also tested the
    resiliency of our food supply and the strength of our farmers.
        During this crisis, Congress has worked to address the
    countless challenges facing our food system. While we have
    passed several important relief packages, there is still more
    to do.
        Mr. Chairman, I look forward to working with you to pass
    additional legislation that supports our families, farmers, and
    essential food supply chain workers in these difficult times.
        We should also look for ways to support and fill in the
    gaps that remain in our supply chain such as those included in
    my Food Supply Protection Act, which I introduced earlier this
    year that I hope we will have an opportunity to discuss.
        As we continue to address these urgent challenges, this
    crisis has also underscored the importance of providing long-
    term stability for our farmers who face uncertainty every
    single day.
        I often say that agriculture is the riskiest business there
    is. Farmers know all too well how a sudden shift in the weather
    can change everything in the blink of an eye. Unfortunately,
    the climate crisis has caused these extremes to happen more and
    more often.
        While farmers are uniquely affected by the climate crisis,
    they are also a critically important part of the solution. With
    the right support, our producers can cut down on their
    emissions and benefit from the adoption of practices to store
    more carbon in soil and trees. This is good for the environment
    and good for the farmer's bottom line.
        The 2018 Farm Bill created new opportunities for climate-
    smart agriculture, including the landmark Soil Health
    Demonstration trials. However, much more is needed.
        That is why Senator Braun and I introduced the bipartisan
    Growing Climate Solutions Act, along with our colleagues
    Senator Graham and Senator Whitehouse, to help farmers and
    foresters scale up sustainable practices and make money through
    voluntary carbon markets.
        In the coming days, I am really pleased that
    Representatives Spanberger and Bacon will introduce this
    bipartisan bill in the House. Senator Braun and I have both
    been working with them for that to happen. We are very pleased
    that we will soon have a bipartisan bill in the House of
    Representatives.
        Carbon markets offer agricultural producers an opportunity
    to create additional revenue streams. With all the uncertainty
    from COVID-19, trade, and weather, farmers need new market
    opportunities now more than ever.
        At the same time, companies across the country are looking
    for ways to offset their emissions through carbon markets. That
    means farmers and foresters have an exciting opportunity to be
    rewarded for the voluntary, sustainable steps they are taking
    through generating and selling carbon credits.
        For example, Detroit's own General Motors paid for an
    agricultural carbon project like this based on grasslands in
    North Dakota a few years ago, one of the first of its kind. Our
    bill will help the corn and soybean farmer in Michigan who is
    hearing about companies like GM and is asking me how they can
    have a credible process to store their carbon and have it
    measured accurately. They want to know how to get started.
        That is what the Growing Climate Solutions Act does. The
    bill will set up a certification program at the USDA that will
    identify trusted outside experts for farmers to work with to
    help them through the carbon credit process. This will
    jumpstart climate-smart projects on farms, ranches, and private
    forests all across the country.
        Producers can easily navigate a new one-stop-shop at USDA's
    website where they can learn about carbon markets and the type
    of practices farmers can adopt to get paid. USDA-certified
    technical assistance providers can help farmers decide what
    practices will work for them. After the practices are in place
    and a USDA-certified third party verifies that they followed
    all the appropriate procedures, they can enter the marketplace
    and sell carbon credits to a private buyer.
        In order to start addressing the climate crisis in
    agriculture, I believe we need to focus first on voluntary,
    producer-led, and bipartisan policies that have broad support.
        The Growing Climate Solutions Act has the support of over
    50 farm and environmental groups, including the American Farm
    Bureau, the National Farmers Union, Land O'Lakes, and the
    Environmental Defense Fund, whom will be sharing their
    perspectives today.
        Mr. Chairman, we have received letters and testimony from
    numerous companies and organizations expressing support for the
    bill, and I would ask that all of these be submitted for the
    record.
        Chairman Roberts. Without objection, so ordered.

        [The letters can be found on pages 58 through 77 in the
    appendix.]

        Senator Stabenow. Thank you.
        Our farmers know that sustainability and profitability go
    hand in hand. This bill will help farmers improve their
    operations and build new revenue streams, all while addressing
    the root cause of the serious climate crisis.
        I look forward to discussing this commonsense bipartisan
    bill today, and I look forward to continuing, Mr. Chairman, to
    work with you, Senator Braun and all of our colleagues to see
    that it is enacted as soon as possible.
        Thank you so much.
        Chairman Roberts. Thank you, Senator.
        I welcome our panel of witnesses to the Committee this
    morning, and I recognize Senator Braun for introducing our
    first witness, Mr. Brent Bible.
        Senator Braun. Thank you, Chairman Roberts.
        I appreciate the Committee's desire to consider this
    legislation, and I am proud to introduce Brent Bible to the
    Committee this morning.
        Brent is a first-generation Hoosier farmer who operates
    Stillwater Farms, a 5,000-acre grain production farm in
    Lafayette, Indiana. Since returning to the farm in 2007, Brent
    has been a leader in modern sustainable farming. He was an
    early adopter of cover crops and uses modern technologies to
    reduce fertilizer use and carefully managed soils.
        In fact, Brent was instrumental in the development of the
    Growing Climate Solutions Act itself, as he understands the
    benefits that access to carbon markets can bring for American
    agriculture.
        Over the last six years, Stillwater Farms has partnered
    with the National Corn Growers Soil Health Partnership as a
    demonstration farm to continue working on these techniques.
        Brent is also farmer advisor to the Environmental Defense
    Fund.
        Mr. Chairman, as a fellow Hoosier, I am looking forward to
    Brent Bible's testimony this morning. Thank you.
        Chairman Roberts. Our next witness is no stranger to the
    Committee, President Zippy Duvall of the American Farm Bureau
    Federation, a third-generation farmer from Greensboro, Georgia.
    He raises both cattle and broilers on his operations. Zippy has
    served as president of the AFBF for over four years. He has
    helped lead their policy initiatives on issues like agriculture
    sustainability.
        Prior to his current role, Zippy has a history of serving
    farmers through roles in both the American and Georgia Farm
    Bureaus.
        Thank you for being here, Mr. Duvall.
        Our next witness will be introduced by our distinguished
    Ranking Member.
        Senator Stabenow. Thank you, Mr. Chairman.
        I am pleased to welcome Rob Larew to the Committee this
    morning. Rob was elected National Farmers Union's 15th
    president earlier this year and previously served as NFU's
    senior vice president of Public Policy and Communications.
    Prior to joining NFU, Rob was the staff director of the House
    Agriculture Committee under the leadership of Chairman Collin
    Peterson, where he oversaw the panel's efforts during the 2008
    and 2014 Farm Bills.
        Rob was raised on a dairy farm in Greenville, West
    Virginia, and we are very happy to have him with us this
    morning.
        Welcome.
        Chairman Roberts. Our next witness is Mr. Jason Weller, our
    final witness this morning. He is the vice president of
    Truterra, LLC, which serves as the sustainability business of
    Land O'Lakes. In his role, he helps develop conservation
    solutions for the cooperative's members and owners. Jason is no
    stranger to Washington, having served in roles in the USDA's
    Natural Resource Conservation Service, the White House Office
    of Management and Budget, and two House committees.
        I welcome all the witnesses, and, Mr. Bible, why don't you
    start us off.

      STATEMENT OF BRENT BIBLE, CORN AND SOYBEAN PRODUCER, FARMER
        ADVISOR, ENVIRONMENTAL DEFENSE FUND, LAFAYETTE, INDIANA

        Mr. Bible. Thank you Chairman Roberts, Ranking Member
    Stabenow, Senator Braun, and all the members of this Committee
    for the invitation to testify before you today. I applaud you
    for making sense of this new normal. I know this is a first
    time for you in terms of the way this hearing is done. This is
    the first time I have testified before a committee, so it does
    not seem any different to me.
        What I will say is that as farmers, when we come up to a
    fence, we do not stop or turn around. We find the gate and walk
    through it, and I think that is what you have done by
    continuing this as normally as possible throughout this
    process.
        As a first-generation farmer, I see myself as a typical but
    fairly representative and vital part of the food supply chain.
    My business partner and I operate Stillwater Farms, as Senator
    Braun mentioned, growing corn and soybeans mainly for seed
    production, ethanol, and food products over about 5,000 acres
    in three counties in west central Indiana.
        I am also a member of the Indiana Corner Growers
    Association and Indiana Farm Bureau and by extension their
    national organizations, and I appreciate their support for
    farmers and for the work we are trying to accomplish today.
        I am educated with a bachelor's of science from Purdue
    University in ag economics. Purdue taught me very well to be
    analytical, to be data driven, and to make decisions based on
    economic science.
        Globally, farmers are more challenged than ever. We see
    increasing demand for our products but face massive headwinds,
    including trade barriers and climate change, similar to what
    Senator Stabenow alluded to earlier.
        As these pressures mount, we continue to try to improve on
    how we manage our lands so that we can remain in business, and
    that is what sustainability is all about, doing more with less,
    finding ways to be economically sustainable and environmentally
    sound as well.
        On my farm, we invest in conservation practices that lead
    to soil health, water quality, air quality, and reduced
    greenhouse gas emissions. This interest in investment led us to
    become a member of the Soil Health Partnership, a partnership
    between the National Corn Growers Association, Environmental
    Defense Fund, and other critical stakeholders.
        My farm has spent the last six years conducting research
    trials on soil health and farming practices that benefit the
    environment in my area and in the world around me.
        I have also spent that time as a voluntary advisor, farmer
    advisor to the Environmental Defense Fund. What is interesting
    there is that we many times share different perspectives on
    farming and agriculture in general, but we find ways to work
    together to create good solutions that are complementary to
    both entities, and I think that is an important distinction to
    make, especially in today's environment.
        These practices and initiatives that we reach will not
    reach a broader farming audience if we cannot figure out how to
    scale up the current rates of adoption in conservation
    practices, and that is why I like the Growing Climate Solutions
    Act. It opens the door for farmer participation in a market-
    based system that rewards farmers for implementing conservation
    practices on their farms if they choose to do so.
        Because of these results, we need Congress to step in and
    provide policies that incentivize further adoptions, and we
    have great programs at USDA that provide cost share for farmers
    to implement conservation practices, but government programs
    are not the only solution to our problem. We need real market-
    based options that allow farmers to individually make a choice
    and participate and then see the benefits to their economic
    bottom line.
        I urge the Committee to examine this bill and work together
    to pass legislation that will put my farm and environment both
    on a path to success.
        Thank you.

        [The prepared statement of Mr. Bible can be found on page
    34 in the appendix.]

        Chairman Roberts. President Duvall.

      STATEMENT OF ZIPPY DUVALL, PRESIDENT, AMERICAN FARM BUREAU
                    FEDERATION, GREENSBORO, GEORGIA

        Mr. Duvall. Good morning, Mr. Chairman and Ranking Member
    Stabenow. I want to thank you all for the opportunity to visit
    with you today through the internet. We appreciate the
    opportunity.
        I also want to thank you and other members of the Committee
    for all the things that you have done for American farmers and
    ranchers during this very difficult time. With all the market
    disruptions due to COVID-19, the pandemic, and the already
    distressed farm economy, keeping our farmers and ranchers in
    production is vital to our farm, our food security, and our
    national security, as most all you members of the Committee
    already know.
        Thank you for supporting the measures to assist our farm
    businesses.
        At the same time farmers and ranchers are working to keep
    our food on our plates, they continue to make great strides in
    sustainability, which brings me to the topic for today's
    hearing. I would like to provide a short snapshot view of
    agriculture's leadership in sustainability farming practices.
        American agriculture accounts for less than 10 percent of
    the total U.S. greenhouse gas emissions, far less than
    transportation, electrical generation, and other industries.
        Total carbon sink efforts by forestland management, land
    converted to forests, grasslands, and management of wetlands
    more than offset agriculture's total greenhouse gas emissions.
        Farmers continue to produce more food and fiber and energy
    with more efficiency than our parents and our grandparents did
    over two generations ago.
        We have increased production 270 percent without using more
    resources. In fact, we would have to have nearly 100 million
    more acres in 1990 to match the same production that we had in
    2018. Our advancements in sustainability are due to the
    adoption of technologies, and they are due to farmers
    overwhelmingly participating in voluntary incentive-based
    conservation programs.
        As we continue to navigate trade challenges and the
    economic impacts that COVID-19 brings to American farmers and
    ranchers, we also face a very difficult headwind, yet we remain
    committed to smart farming, whether our farms are passed on to
    us by our parents or whether we started our own farms. Our
    farms and our land is our heritage.
        Every farmer I know wants to leave their land, the air, and
    the water and also the farm and ranch businesses in better
    shape, better condition, than they found it. In fact, to
    achieve that goal, Congress must protect agriculture from undue
    burdensome regulation, and also we have to respect farmers' and
    ranchers' ability to innovate and solve problems.
        The Farm Bureau's grassroots developed policy supports
    market-based incentives and compensation for farmers for
    planting crops and adopting farming practices that keep carbon
    in the soil. That is why we welcome opportunities to
    participate in emerging carbon markets.
        The Growing Climate Solutions Act would create a certified
    program at USDA to help solve technical barriers to farmers.
    The forestland owners' participation in carbon credit markets
    are important, and the bill also provides the Secretary of
    Agriculture an advisory council that is made up of agricultural
    experts, scientists, producers, and others to ensure the
    certification program works for all participants.
        The Growing Climate Solutions Act seeks to provide more
    clarity and guidance for farmers and ranchers who want to
    provide the ecosystem services that more and more consumers and
    businesses are demanding. This builds upon American
    agriculture's strong foundation of environmental stewardship
    and innovation.
        I want to thank you, Mr. Chairman, for holding today's
    hearing, and I will be glad to take any questions after the
    other panelists speak. Thank you for having me today.

        [The prepared statement of Mr. Duvall can be found on page
    38 in the appendix.]

        Chairman Roberts. Thank you, Zippy. Our next witness is Rob
    Larew.

      STATEMENT OF ROB LAREW, PRESIDENT, NATIONAL FARMERS UNION,
                       GREENVILLE, WEST VIRGINIA

        Mr. Larew. Good morning, Chairman Roberts, Ranking Member
    Stabenow, and members of the Committee. Thank you for the
    opportunity to testify today.
        I am president of the National Farmers Union. We work to
    ensure that farm families and their communities are respected,
    valued, and enjoy economic prosperity and social justice. Thank
    you for highlighting agriculture's role as part of the solution
    to climate change. Even in this time of great uncertainty in
    public health, the economy, and our society in general, we
    cannot overlook this topic. We know that climate change is the
    single greatest long-term challenge for family farmers and
    ranchers, rural communities, and global food security.
        The changing climate is affecting all aspects of our farms;
    however, we also know that farmers and ranchers, if provided
    the right tools, can help to reduce atmospheric carbon and
    other greenhouse gases.
        National Farmers Union supports the Growing Climate
    Solutions Act, as it will help family farmers and ranchers
    engage in the market opportunities presented by carbon
    sequestration and would lend legitimacy to these voluntary
    carbon markets.
        With strong private-sector participation, carbon markets
    can create a sustainable revenue stream for farmers. These
    systems allow companies to offset some of their emissions
    through the purchase of sequestration credits. This idea is not
    new. Carbon markets work.
        In 2006, we partnered with North Dakota Farmers Union to
    create the National Farmers Union Carbon Credit Program, which
    served as an aggregator. Credits were earned by farmers or
    landowners on a per-acre basis with the use of no-till and
    reduced till cropping, long-term grass seeing, rangeland
    management, and forestry practices. These credits then were
    sold on the Chicago Climate Exchange, which was a voluntary
    carbon market. At its peak, the program was the largest
    aggregator of agricultural soil credits in the United States
    and distributed more than $7.4 million to nearly 4,000 farmers
    across five million acres.
        Between 2006 and 2010, these farms sequestered about $7.6
    million tons of carbon. Unfortunately, in 2010, the Chicago
    Climate Exchange folded, but corporate, consumer, and farmer
    interest in the concept remains. The Government must encourage
    these activities while ensuring adequate protection for
    farmers. There are many ideas on the best way to do this.
        For example, a member of this Committee, Senator Bennet,
    supports that farmers and ranchers should have access to a
    carbon sequestration tax credit as Congress has enacted for
    other industries. Others are proposing that USDA create a
    carbon bank within the Commodity Credit Corporation that would
    serve as another buyer of carbon offsets from farmers.
        A combination of these ideas is needed to ensure a stable
    and effective carbon market. Climate legislation should also
    consider protections for farmers from bad actors, faulty market
    efforts, and corporate consolidation, and include a variety of
    tools that address the needs of the full range of farms.
        Furthermore, we support growth in the use of renewable
    fuels, including ethanol, as part of a climate program. When
    compared to petroleum and gasoline, the use of ethanol blends
    reduces emissions of carbon monoxide, particulate matter, air
    toxic chemicals, and greenhouse gases.
        In conclusion, there should be no uncertainty about the
    role of family farmers and ranchers in addressing the climate
    crisis. We stand ready to be part of the economy-wide solution
    to reduce total greenhouse gas emissions.
        Thank you to the authors of the Growing Climate Solutions
    Act, Senators Braun and Stabenow, for their leadership. The
    National Farmers Union looks forward to working with this
    Committee to ensure this and any climate legislation meets our
    needs.
        Thank you.

        [The prepared statement of Mr. Larew can be found on page
    43 in the appendix.]

        Chairman Roberts. Thank you, Mr. Larew.
        Jason Weller.

       STATEMENT OF JASON WELLER, VICE PRESIDENT, TRUTERRA, LAND
                 O'LAKES, INC., ARDEN HILLS, MINNESOTA

        Mr. Weller. Good morning, Chairman Roberts, Ranking Member
    Stabenow, members of the Committee. Thank you very much for the
    invitation to Land O'Lakes to join the proceedings this
    morning, and it is great to be back before the Committee. It is
    great to see you all.
        Before I begin, I just want to also compliment the
    Committee for its leadership and it support for farmers and for
    agriculture during uncertain times in the midst of the COVID
    pandemic as well as the following economic crisis that farm
    families are now having to confront and get through. I know the
    Committee--on behalf of my cooperative members and the family
    of Land O'Lakes, we really appreciate the support of this
    Committee as well as the ongoing support we know this Committee
    will provide farm families in the coming months.
        My name is Jason Weller, and I serve as vice president at
    Truterra. I know many on the Committee know about Land O'Lakes,
    but it bears repeating that Land O'Lakes is a farmer
    cooperative as well as a cooperative of agricultural retailers.
    Through our family of agricultural retailer owners and
    thousands of farmer members, the Land O'Lakes enterprise
    touches about half of the harvested acres across the United
    States, and at Truterra, we are in the sustainability business
    as part of that cooperative system. We work with our
    progressive leading agricultural retailers to design and
    deliver sustainability services to their farmer customers, and
    we work with world-class food companies as well as leading
    conservation organizations in the United States and USDA to
    provide a complementary, voluntary approach to help farmers
    adopt conservation practices in their fields.
        At its core, the Growing Climate Solutions Act is really
    about resiliency of both farmers as well as rural communities,
    and its resiliency is both an economic component of these
    farmers and rural communities as well as, of course, the
    environmental resiliency of those farms.
        The bill anticipates a future class of commodities; in this
    case, environmental commodities, greenhouse gas credits. These
    credits have an opportunity to help farmers and ranchers to
    diversity their operations, generate new sources of income,
    while at the same time receive financial and technical support
    to adopt the practices and systems and machinery that
    ultimately will help them literally and figuratively weather
    the results of a changing climate.
        The way this is possible, I am really excited about and we
    are passionate about at Truterra and with our family of
    agricultural retailers. It is the advent of that we are on a
    cusp of a revolution in precision conservation. It is going to
    be through amalgamation of data, machine learning, artificial
    intelligence, as well as working and forging that information
    with USDA practice standards and technology and modeling, also
    in putting all that information in the hands of farmers and
    their trusted agronomic advisors to make the best decisions on
    the farm, to enhance that farm's profitability, improve its
    efficiency, and ultimately improve the quality of the natural
    resources on that farm. The only say this is going to be
    possible, ultimately, is to have access, access to the
    internet.
        That is why Land O'Lakes is proud through the American
    Project to be working with a broad array of organizations,
    including the American Farm Bureau Federation, to increase and
    expand broadband access in rural America, to be able to bring
    to market the promise and potential of not just this new class
    of environmental commodities, but also provide critical access
    to health care and education and other economic opportunities.
        We commend Senator Stabenow, Senator Braun, and the other
    cosponsors of this legislation for their leadership and vision
    to continue the conversation but also to identify core building
    blocks that we believe will unlock these solutions to scale
    this new class of commodities for farmers and ranchers to take
    advantage of.
        I know I speak for my Land O'Lakes colleagues and the
    families of our farmers and agricultural retailers that we
    stand ready to work with the Committee and ultimately help
    bring these solutions to our farm community and to help
    agriculture succeed.
        Thanks very much, and I look forward to the conversation.

        [The prepared statement of Mr. Weller can be found on page
    49 in the appendix.]

        Chairman Roberts. We thank you, Jason.
        Questions. President Duvall, your testimony includes the
    compelling statistic that U.S. agriculture production has
    increased by 270 percent since the mid-1900's. I do not know of
    any other part of our economy that has experienced that, and
    that is thanks to our farmers and ranchers and growers.
        As climate change continues to gain attention in the United
    States and around the world--that is an understatement--do you
    believe it is appropriate for benchmarks established under S.
    3894 or any carbon trading proposal to account for this
    progress?
        Mr. Duvall. Yes, Mr. Chairman. I really believe in that. I
    think our farmers have led the way for years and years in
    getting out ahead of climate change, doing things on their
    operations for many years now, to protect natural resources on
    our farms.
        Just like I said in my statement, it is all farmers' desire
    to leave our farm, the air and the water and everything around
    our farm, in better shape than what we found it, and we do that
    through technologies that are being delivered to us through the
    research and development dollars that are being spent.
        To account for what we have already done is very, very
    important.
        Chairman Roberts. I appreciate that.
        Jason Weller, my home State of Kansas is one of the most
    livestock-dense States in the country. We have long been home
    to millions of head of cattle raised for beef, and in recent
    years, we have also seen growth in both dairy and swine
    production.
        Can you describe some of the most impactful environmental
    conservation practices that livestock producers are employing
    within your livestock and feed business unit?
        Mr. Weller. It is a twofold component. It is first, of
    course, supporting the farmers and coming up with on their
    dairy operations or livestock operations with the plan for how
    you feed the cattle and the livestock and the animals, but also
    how you manage the manure.
        At Land O'Lakes, we have a lot of experience with this. We
    have examples of how our dairy producers are providing, I
    think, real leadership. For example, one of our producers in
    Pennsylvania on Reinford Farms, they have installed and are
    operating a very significant methane digester, and this
    digester is beyond just handling the manure on their operation.
    It is also taking in the food waste from up to 15 other grocery
    stores in its surrounding community. It is really a community
    digester, and this digester is ultimately generating
    significant energy. Over the course of the year, it is
    generating the equivalent to 1.5 million kilowatt hours of
    electricity, which is enough to power 100 homes.
        What I think is relevant to this conversation, over the
    last decade, that one digester, that one dairy operation, has
    offset the greenhouse gas emissions equivalent to the land area
    of 79,000 acres of forestland in the United States in terms of
    total carbon sequestration potential and benefit. That is just
    one of our dairy producers.
        Ultimately, it is a combination of the feed. It is the
    agronomy practices that the farmers and the producers use to
    grow that feed and how the feed is managed, but then it is also
    the combination of conservation practices that farmers are
    using to manage the manure and turning that manure not just
    into a waste but ultimately into, hopefully, generating co-
    benefits, new revenue opportunities, as well as limiting the
    environmental impact of that waste stream.
        Chairman Roberts. We thank you.
        Zippy, back to you. Does your organization envision a role
    for the U.S. Department of Agriculture in any future carbon
    trading policy discussions? Obviously, I think the answer to
    that is yes. Compared to other Federal agencies, do you think
    the Agriculture Department is best able to lead any data
    collection and analysis that might be required? Do you have any
    thoughts on which Federal agency can provide the best available
    science on the reduction of carbon for various agriculture
    activities?
        Mr. Duvall. Yes. We think that any discussion around
    agriculture and climate change and any program that might be
    introduced through Congress should be through USDA. USDA is the
    one that understands agriculture. Our farmers and ranchers
    trust USDA. They know the people that are in their local
    communities that work for them. For farmers to participate in
    any voluntary program, they have to have that trust. I think it
    is essential that all that happen within USDA and through the
    discussions with Congress.
        Chairman Roberts. We thank you, Zippy. Thank you very much.
        I now recognize Senator Stabenow for any questions she may
    have within the five-minute rule.
        Senator Stabenow. Thank you, Mr. Chairman. I heard that,
    five-minute rule. Okay.
        Well, thank you to all of you for your testimony. and Mr.
    Duvall, we very much appreciate the Farm Bureau's strong
    support for the Growing Climate Solutions Act and the fact that
    you are with us today.
        In your testimony, you talked about the financial
    opportunity for your members in gaining better access to the
    greenhouse gas marketplace that we are focused on in the bill.
    I wonder if you might just speak a little bit more about the
    importance in these uncertain times for producers to really
    think about new markets and new revenue streams.
        Mr. Duvall. Sure, Ms. Stabenow. I compare what we are going
    through to what I have experienced as a young man during the
    1980's. Of course, this crisis that we are in has not quite
    reached that level, and hopefully, it will not. Back then, we
    were all scrambling, looking for something to generate income
    for our family farm so that we could stay there, and back then,
    it was diversification that came into the picture.
        Now as we start discussing climate and policy around
    climate change and creating other markets, I think it is
    vitally important that our farmers be able to not only take
    advantage of these markets that could be available to us but
    also have the opportunity to look back and see all the things
    that we have done in the past so that we can make our farms
    sustainable for the future.
        What is important to the American people is that we all
    continue to keep our family farms there, and the only way we
    are going to do that is to make sure that they can make a
    profit and raise their families there and keep their lands up
    and take care of them. The way to do that is to find other
    revenues because so many things depend on trade. It depends on
    research. It depends on an extension delivering that to us, and
    of course, the work that we are doing on trying to take
    broadband across America to rural communities is really, really
    important. What you mention is vitally important to the
    sustainability of our family farm.
        Senator Stabenow. Well, thanks so much, and I think our
    Committee across the board agrees with you about rural
    broadband and what needs to happen as well. We put substantial
    increases and authorized funding in the Farm Bill. We need to
    push to make sure that we are creating that connectivity across
    the country.
        I certainly know in Michigan, this is a major issue. Thank
    you for mentioning that.
        Mr. Weller, we are really glad you are back before the
    Committee and appreciate that you have been a real innovator in
    this space and now working for a company that is very focused
    on sustainability.
        Could you speak a little more about the portion of your
    testimony where you remarked that without this legislation,
    U.S. agriculture risks falling behind its global competitors.
        Mr. Weller. The journey for sustainability at Land O'Lakes
    actually began on the dairy side. We are a 98-, almost 99-year-
    old dairy cooperative, and it was several years back that our
    customers started asking pretty in-depth questions around
    sustainability and then increasingly had expectations that we
    could share the data around the practices and ultimately the
    outcomes of the management activities our dairy producers used
    on their dairy. That was not just for U.S.-based companies.
    Those are global companies that we provide dairy ingredients
    to.
        We have seen that now expand into the grain markets, and as
    I mentioned in my opening and in my testimony, we partner with
    world-class brands, including Campbell's Soup and with Tate &
    Lyle and Nestle Purina, and in working with them and in turn
    their customers, it had become very apparent to us that
    increasingly international companies and their working in
    international markets in different consumer preferences, their
    expectation is the American farmer, whether they are dairy
    producers, protein producers, or grain producers, have to have
    the data and ultimately the outcomes to be able to just not
    characterize the quality of the grain or the quality of the
    product, but also how, what was the system used to produce that
    food product.
        The American producer, it is no longer just only about
    premium and access to new incentives. Increasingly, we see a
    potential being a market access challenge, and the American
    farmer does not have access to this kind of ability to tell his
    or her story. We are concerned about the long-term potential
    impact about access to international markets and ultimately
    international food companies.
        Senator Stabenow. What you are saying is that this kind of
    information in setting up a system with integrity in the USDA
    is going to be very important for our producers who obviously
    are selling in the global marketplace?
        Mr. Weller. Agree. Having USDA creating those standards, I
    think, will also create that independent trust that the
    international marketplace looks at.
        Senator Stabenow. Thank you.
        Thank you, Mr. Chairman.
        Chairman Roberts. Senator Boozman.
        Senator Boozman. Thank you, Mr. Chairman, and thank you,
    Senators Braun and Stabenow and your cohorts, Graham and
    Whitehouse, for really pushing this forward. This is something
    that is timely, and anything we can do to help our farm
    community be recognized and receive value for the great work
    that they do is so important, along with helping the
    environment.
        I guess my concern is as you read through the bill, you
    really wonder who is going to benefit. What we do not want--and
    I know what you do not want--are the third-party providers, the
    verifiers who are going to receive the USDA-certified label or
    the corporations who want to greenwash their businesses, that
    they are the real benefitters.
        I worry a little bit about companies dictating how our
    farmers should farm. We all know that some companies have made
    environmental commitments without even engaging the farmers who
    supply the raw materials.
        So, what I would like is a discussion. Tell me how we can
    ensure that the benefits go to the farmer.
        I will give you an example. A few years ago, GSA started
    using the LEED certification program. Most of the trees in the
    country could not be used in building our government buildings.
    The trees could come from overseas, but American-grown trees
    did not qualify. How do we avoid problems like that? How do we
    make sure that the benefit, the value actually goes to the
    farmers and not the middle men and corporations?
        We will start with you, Mr. Larew, if that is okay.
        Mr. Larew. Sure. Appreciate the question because it is an
    essential one, right?
        Senator Boozman. Right.
        Mr. Larew. I think one of the first things to ensure is
    that we first are looking at this as a voluntary private
    market. In that, farmers would have the option to participate
    or not. Assuming that the verification system is rigorous and
    does add that legitimacy to it, I think that USDA's role in
    this process it going to be critical to ensuring the trust that
    farmers can have and, quite frankly, the other players along
    the line, including corporations and consumers. Really, our
    focus is on making sure that farmers can trust that the market
    that we are going to be participating in is one that is
    legitimate and can be reliable for them, and that they are
    recognized for the public good that they are creating with
    their practices.
        I think it is something that we will need to continue to
    look at throughout this process because another concern of
    ours, quite frankly, is anytime you are operating in a
    voluntary private market like this and you are commoditizing
    something, we also want to make sure we are not, in doing so,
    incentivizing corporations from even buying up land or doing
    other practices that put family farmers at the sideline of this
    issue, where they should be central.
        Thanks for the question.
        Senator Boozman. Thank you, and I agree with you totally.
        Anybody else want to jump in on that? I do think this is a
    central question as we work through this.
        You mention USDA, and I have a lot of confidence in USDA,
    but Secretaries come and Secretaries go. We have to make this
    such that we can make it as ironclad as possible.
        Mr. Bible. Senator Boozman.
        Senator Boozman. Yes. Sure.
        Mr. Bible. I will add just a couple quick comments. With
    USDA being in the process, I will echo what Mr. Larew said.
    That is very important, but I think what really it comes down
    to is that the farmer will be looking for economic signals in a
    free market. If the economic signal exists for a farmer to
    produce a certain product--in this case, it is a carbon
    credit--that farmer will respond and will benefit from that
    market signal.
        We do a great job of producing a lot of corn, a lot of
    soybeans, a lot of cattle, whatever that commodity might be,
    when we are incentivized to do that within the marketplace. I
    think that is how this would work as well.
        Senator Boozman. Anybody else, quickly?
        Mr. Weller. Senator Boozman?
        Senator Boozman. Yes.
        Mr. Weller. Just to add to President Larew's and Mr.
    Bible's comments, from a farmer perspective---and one of our
    farmers, Matt Rezac, who testified before your Committee last
    May, he talked about this best, where ultimately you need to
    work with who farmers trust.
        For our model, working with the agricultural retailer, we
    are all about maximizing the value for the farmer, and we see
    what this legislation, this bill is actually providing the
    farmer, then, a way they can identify whom they can trust to
    help them generate the maximum value, but ultimately, then it
    helps buyers of these credits also have trust and confidence.
    They, in turn, feel confident what they are purchasing also has
    value.
        Yes, as a cooperative, we are actually about maximizing
    return to the farmer, and we believe in this legislation's
    potential to help identify trusted advisors, but also a trusted
    system that ultimately the marketplace can rely on.
        Senator Boozman. Good.
        Thank you, Mr. Chairman.
        Chairman Roberts. Senator Brown?
        Senator Brown. Thank you, Mr. Chairman, very much.
        Mr. Weller, good to see you again.
        Both you and Mr. Bible mentioned the lack of high-speed
    internet in rural areas as a challenge to deployment of
    precision technology. We have heard from so many teachers,
    librarians, superintendents, small business owners, farmers all
    over our States--I think pretty much all of us have--about
    during thins pandemic as broadband being one of their biggest
    challenges.
        This Committee has worked to improve broadband, but we have
    way more work to do, Mr. Chairman, Ranking Member Stabenow, and
    I am hopeful next year, we can reengage.
        Mr. Weller, one question. From your time at NRCS, you know
    the Western Lake Erie Basin well. Run me through some scenarios
    and the types of soil health practices farmers there can
    implement and how widespread use of these practices, what I
    would hope would reduce runoff into the lake.
        Mr. Weller. I do know the Western Lake Erie well, and
    actually I was invited in 2014 after that initial crisis within
    the city of Toledo, that summer when it lost its water supply,
    and that was as well with the agricultural community. In trying
    to identify solutions in the Western Lake Erie Basin,
    ultimately, first and foremost, to give farmers the credit they
    deserve for their already excellent stewardship in that
    watershed, but also then how do we help them advance both the
    soil management, ultimately reduce the loss of sediment and
    phosphorus that is impacting the lake.
        To your question on the practices, I really believe, as I
    said in my opening, we are on the cusp of a revolution and
    conservation, and what is required in the Western Lake Erie
    Basin is the ability to advise the farmer, help the farmer
    identify on their fields where they are losing their inputs as
    well as their losing their soil.
        As in my testimony, that according to USDA, it is actually,
    on a micro scale, across that watershed, based on topography
    and terrain and soil type, it is really helping the farmer
    understanding the diversity in their fields across their
    operation and then prescribing the mix of practices, including
    the rotation of their corps, the residue management, the
    application and precision application of fertilizers and crop
    protection products, ultimately to drive profitability on a
    subfield scale. By chasing profitability and ultimately
    improving efficiency, you are reducing then the loss and the
    risk of loss in that field; in this case, loss of top soil,
    loss of nutrients into the tidal line or surface runoff, as
    well as loss of greenhouse gases in the atmosphere.
        It is really ultimately a systems approach, but using
    prescription as a subfield scale, we think is going to be the
    solution to addressing both Lake Erie's water quality
    challenges as well as helping farmers in that watershed
    generate this new class of commodities, greenhouse gas credits.
        Senator Brown. Thank you.
        You know there are obviously several members of this
    Committee representing the Great Lakes States and how important
    the Great Lakes is to our planet, of course.
        Mr. Larew, thank you for your interest in soil health. In
    Ohio, we are proud to have one of the world's foremost soil
    scientists, Dr. Rattan Lal. There was a good story in NPR about
    him in the last couple of days. Two weeks ago, he was awarded
    the World Food Prize for his work on soil health. His work is
    focused on rebuilding soils and the role soil can play in
    mitigating climate change.
        By his math, for about $16 an acre, we could dramatically
    reduce carbon emissions via number of on-farm ecosystem
    practices.
        Mr. Larew, do you think farmers would be interested in and
    would utilize a tax credit based on the amount of carbon
    sequestered by deployment of these ecosystem practices that he
    has talked about?
        I appreciate Farmers Union support for this concept. How
    does a tax credit--how would you structure it to ensure farmers
    are using it and we get the climate benefits we want?
        Mr. Larew. Thank you for the question. I think it is an
    important one because it also highlights the fact that we are
    probably going to need a series of tools to provide incentives
    to farmers to continue to be able to adopt these climate
    friendly practices, which also improve soil health.
        I think specifically to a carbon sequestration tax credit
    that NFU does not have specific policy, but it certainly aligns
    very closely with the types of incentives that we are looking
    for that we think farmers certainly would be able to take
    advantage of.
        There is an obvious challenge, at least initially, with the
    idea in that for a lot of farmers, as we talk about the economy
    and the struggles that farmers have, a tax credit is not
    necessarily available to them unless there is also a way to
    make that transferrable, and so there are certainly ways to tie
    that in with existing markets out there and other players, that
    if done correctly and fairly to farmers would enable them to
    potentially take advantage of that and provide additional
    incentives for them to adopt these practices.
        We certainly support the concept and look for a suite of
    these types of tools. Thank you.
        Senator Brown. If you would, if you and the Farmers Union
    and for that matter the Farm Bureau and Land O'Lakes and all of
    you would work with us on that, we would love to do that in the
    upcoming months.
        Thanks, Mr. Chairman.
        Chairman Roberts. We thank you, Senator.
        Senator Hoeven?
        Senator Hoeven. Thank you, Mr. Chairman.
        My first question is for Mr. Duvall. How do we make sure
    that any program we set up along these lines is farmer
    friendly, we make sure that it works for farmers, that it does
    not create a mandate or a burden, it truly is something that is
    voluntary and a benefit to our farmers and ranchers?
        Mr. Duvall. Yes, sir. Thank you for the question.
        That is so important. Every law that you all work on and
    work tirelessly on to pass has great intentions, and then a lot
    of times in the rulemaking, it kind of gets twisted around a
    little bit.
        Clear rules that help us be able to identify how do we do
    this--we are already hiring multiple consultants on different
    levels of our businesses. We do not need another program that
    is so complicated that we have to hire another consultant to
    help us with it. To make it clear and make sure that the rules,
    and the bill is clear enough that the rules are going to end up
    being something that farmers can trust and have it more brief
    than lengthy.
        We got into that trouble with some of the other rules that
    were passed down to farmers in the past, and our farmers have a
    very difficult time staying within the guidelines of those
    programs because the rules are so complicated. They need to be
    in a way that they cannot change with one Secretary or one
    administration to the other.
        Senator Hoeven. Well, on that, if we end up using some kind
    of third-party verifier or something in these programs, talk
    about that for a minute. Again, how do you make sure you have
    got somebody out doing those evaluations in a way that helps
    our farmers and ranchers and does not feel like another
    compliance kind of thing? You know what I mean?
        Mr. Duvall. Hopefully, it would be organizations that
    already exist that we already have trust in.
        Senator Hoeven. You mean like the Farm----
        Mr. Duvall. You know, trust goes a long way.
        Senator Hoeven [continuing]. Bureau or Farmers Union, like
    that?
        Mr. Duvall. Well, possibly.
        Senator Hoeven. Yes.
        Mr. Duvall. Possibly, that could happen. Yes, sir.
        I would think our State farm bureaus would welcome the
    opportunity to try to provide that, and I cannot speak for
    Farmers Union. I would think they would too.
        I think if it is put together correctly, it could be
    something that our organizations could help with.
        Senator Hoeven. Yes. Well, then I am going to go to Mr.
    Larew with kind of the same question. How do we make sure it is
    farmer friendly and a role for our farmer organizations to play
    in actually making it work in a way that benefits the farmers
    and ranchers? I mean, our farmers and ranchers got so many
    challenges. We do not want to add challenges. We want to add
    opportunities.
        Mr. Larew. It is a great question, and again, from Farmers
    Union perspective, all of these questions from our view is it
    has to be from the farm family and rancher perspective. Is this
    going to work for them? Is this incentive based? Is it
    voluntary, and is it based on sound science and practices that
    are going to work for that particular area?
        We know that farming is quite different from one area to
    the other. Looking at North Dakota in particular, you step
    outside the Red River Valley, and agriculture shifts pretty
    dramatically across the State, so making sure that we do not
    have a cookie-cutter kind of approach to these practices.
        I think that this also really stresses the other
    complementary component to all of these questions, and that is
    the need for really additional sound investment in core
    research at USDA to make sure that as we look at these
    practices and as we look at soil health practices and climate-
    friendly farming practices, that the data and the research
    behind the decisions that we are making out there are based on
    sound science, and farmers can trust and rely on that
    information. That along with recognizing that farms come in
    various sizes and styles across the entire country, that is
    going to be a key piece to making sure that farmers in
    particular are central to this. Thanks for the question.
        Senator Hoeven. Yes. I think you make a real important
    point that one size does not fit all. There is incredible
    diversity across agriculture. I think that is a really good
    point, and I appreciate it.
        I would just finish up and ask both Mr. Bible and Mr.
    Weller, any other thoughts would make this easier for farmers
    to use, just any big ideas or key ideas you have to make it
    easier for farmers to use?
        Mr. Bible. For me, just establishing that process that USDA
    serves as a certifier and bring some credibility and legitimacy
    to the process, I think that makes it easy for farmers to be
    able to go to a central location and find out information about
    the program and be able to participate with some level of trust
    from that standpoint.
        Senator Hoeven. Mr. Weller?
        Mr. Weller. I think the key is that it's not a USDA market,
    that USDA will be the one essentially certifying the competency
    of the people providing the technical assistance to the farmer,
    so really bringing a tool set of different practices and
    agronomic expertise to the farmer and ultimately putting the
    farmer in control of making the best decisions of what is good
    for their farm or ranch. It is also then the competency of the
    verifiers. In the end, it is not a USDA marketplace, and I
    trust in USDA's ability to help ensure the integrity of the
    science and the practices. Ultimately, Senator Hoeven, to your
    point, it is ultimately maximizing the flexibility of the
    farmer to make the best decision for their farm or ranch.
        Senator Hoeven. Thank you.
        Thank you, Mr. Chairman.
        Chairman Roberts. We thank you, Senator.
        Senator Klobuchar?
        Senator Klobuchar. Thank you very much, Mr. Chairman and
    Ranking Member. Thank you for having this hearing today. It is
    very important.
        The Growing Climate Solutions Act would help farmers gain
    access to new revenue streams through private-sector
    environmental markets while also establishing a process that I
    think is really important to certify that greenhouse gas
    emission reductions can both be quantified and verified.
        Senator Thune and I actually worked on a provision in the
    last Farm Bill based on our Agriculture Data Act to improve the
    use of advanced data analysis to help farmers identify the most
    effective conservation techniques that would have the greatest
    benefit, both for our climate and our farmers' bottom line.
        Mr. Bible, could you briefly talk about how you use data,
    and would you find it helpful for the Department of Agriculture
    to release studies that compare data across disciplines, like
    comparing yield rates to rates of cover crop adoption?
        Mr. Bible. As I alluded earlier, my training is in ag
    economics from Purdue University. That discipline taught me to
    look at things from a data-driven perspective, no matter what I
    am analyzing, so to be analytical in my process.
        The business decisions that we make on the farm every day
    centered around what does the information tell us, what does
    the data support, what does it tell us, and what is an
    economically good decision to make for our operation.
        I will note that what we find more and more all the time,
    that economic decisions and environmental decisions are
    complementary. They go hand-in-hand, and we are finding that
    more and more every day.
        Certainly, any information that we can have that is
    reliable data, statistics, whether that come from USDA or third
    party--university data has historically been very important,
    university extension data. Any of that that is available, that
    helps us inform better decisionmaking, is certainly important.
        Senator Klobuchar. Okay. Thank you.
        Mr. Weller, welcome remotely from my home State. We are
    very proud of Land O'Lakes in our State, and I wanted to ask
    you about this. The bill would help reduce emissions by
    providing farmers with technical assistance on participating in
    carbon markets. At the same time, the legislation has the
    potential to improve sustainability throughout the agricultural
    supply chain by bringing greater value to renewable fuels.
        Can you talk about how providing access to carbon markets
    for farmers could help drive emissions reductions across the
    biomass supply chain, including the positive effects on
    biofuels and biobased products?
        Mr. Weller. The system of practices that ultimately this
    legislation anticipates to help farmers generate credits, in
    this case, greenhouse gas credits, will also be then the same
    system and suite of practices that biobased products and
    biobased energy, fuel products, ultimately need.
        For example, on the West Coast, there is a whole coalition
    of States led in part by California, Oregon, and Washington
    that are looking at the low carbon fuel standards, and so this
    is a way for ethanol products and other biobased energy
    products to create credits that go into those marketplaces. In
    order to generate the credits, the farmers and ultimately that
    energy supply chain needs to have the data and the outcomes to
    demonstrate how these biobased products ultimately creating
    that credit potential can allow these energy products to access
    into those marketplaces.
        It is also beyond just creating the credit and ultimately
    marketing this energy product. It is then helping the farmers
    with incentives through and support from the greenhouse gas
    credits to help them adopt the system, the suite of technology
    of conservation practices, new machinery that will ultimately
    help them create results that the marketplace is looking for.
        Senator Klobuchar. Thank you.
        Mr. Larew, my last question here, it is sort of along the
    same lines but about the biofuels market. Senator Grassley and
    I have worked together on a number of initiatives, as have
    others on this Committee through the years, and right now,
    something like half the biofuel plans are idled or slowed down.
    Of course, these exemptions, small refinery exemptions--and
    Senator Grassley and I have introduced some legislation for
    relief on this, but as making it so much worse.
        Could you, Mr. Larew, just talk about the challenge that we
    are facing? I know Mr. Bible is well aware of this, but I will
    have him followup in writing. Can you talk about that briefly?
        Mr. Larew. Yes. I appreciate it because for Farmers Union,
    biofuels production is very much aligned with our climate
    strategy as well.
        Senator Klobuchar. Exactly.
        Mr. Larew. It is a climate and a consumer-friendly
    development, and what the EPA is doing with the current
    barriers and the small refinery exemption waivers is really a
    huge disservice not only to farmers and ranchers and rural
    communities, but to the Nation, who is trying to look for
    alternative fuels and climate-friendly solutions.
        We are very excited to be one of the primary litigants
    against EPA recently on some of those waivers. The 10th Circuit
    ruled in our favor, and we are hopeful that in spite of
    continuing effort to seek even additional waivers that they
    will use the court's ruling on that to stand behind the RFS in
    a solid way.
        Thank you.
        Senator Klobuchar. Thank you.
        Thank you, Mr. Chairman.
        Chairman Roberts. Senator Hyde-Smith?
        Senator Hyde-Smith. Thank you, Mr. Chairman and Ranking
    Member Stabenow, for holding this hearing, and I certainly want
    to thank those witnesses down there that have agreed to serve
    on the panel today. It has been very beneficial.
        My question is for President Duvall, Zippy Duvall, and I
    want to thank him for his great leadership as well at the Farm
    Bureau and his advocacy for farmers and ranchers that has
    benefited this entire country, I can safely say.
        Mississippi is blessed with more than 10 million acres of
    farmland and almost 20 million acres of timberland. We have a
    high enrollment in the CRP and the WRP programs in our State
    and other conservation programs authorized by the Farm Bill.
        In many instances, as we have discussed, producers and
    private landowners find it difficult to access carbon markets,
    and that the process is often difficult or it is too convoluted
    to achieve wide adoption.
        Your home State of Georgia and Mississippi are a lot alike,
    and could you speak a little more on how the legislation we are
    reviewing today might benefit our farmers and private
    landowners?
        Mr. Duvall. Sure, Senator, and thank you so much for the
    question.
        I think it gives us the opportunity to, like I said
    earlier, diversify our income. I think the secret to making
    this happen is information. Farmers need the information and
    data to be able to drive their decisions, and then we talk
    about small family farms where they are not used to hiring a
    consultant, so they are not used to having lawyers on staff
    full-time. They are going to depend on their extension services
    and the land-grant colleges to help to lead them in that
    thought process of whether or not this option is available for
    them on their farm and whether or not it would be profitable
    for them to be able to diversify their income.
        I think information is a big thing. How do we get the
    information out there? How do we get that information to them
    through a trusted delivery system? The extension service is
    always--for a small family farm, that is always the delivery
    system that they trust.
        Senator Hyde-Smith. Thank you, and I sure appreciate Farm
    Bureau. I appreciate the mask that I have today that has got
    ``Farm Bureau'' on it. Thank you so much.
        Mr. Duvall. It is looking good on you, Senator.
        [Laughter.]
        Chairman Roberts. Has the Senator concluded?
        Senator Hyde-Smith. I am done.
        Chairman Roberts. Thank you, Senator.
        Senator Bennet.
        Senator Bennet. Thank you, Mr. Chairman, and thank you very
    much to the witnesses for participating in this hearing. We
    really appreciate it under these circumstances.
        Mr. Bible, in answer to a question that Senator Klobuchar
    asked a few minutes ago, you said that increasingly on your
    farm, you are seeing the economic health of your farm is tied
    to the sustainability of the farm, and that environmental
    practices and economic practices, I think you said more and
    more are going hand-in-hand.
        We are seeing a lot of that in Colorado, but I think it
    would be useful if you could expand on your answer and talk a
    little bit about what you are seeing in that regard.
        Mr. Bible. Certainly. It spans a few different areas. One
    is certainly in the practices that we choose to participate in,
    and it really is by a farm-level or field-level decision, that
    in many times, no-till practices, sometimes cover cropping are
    two examples of things that certainly tend to increase
    productivity on particular farms that do not have the same
    organic material or the same water retention abilities as other
    farms. We find that when we engage in certain environmentally
    friendly practices that we are also increasing the productivity
    and the resiliency of those farms. They may not be our highest-
    producing farms, but over changes in weather, changes in
    climate year to year, we see some stability that will develop.
        Then is also spans the technology and the equipment side of
    things. We have made investments and continue to make
    investments in equipment year over year that allow us to
    operate much more efficiently.
        Part of our farm is irrigated, center-pivot irritation, and
    we found that investments in technology within that allows us
    to variable rate water and allow us to use that more
    efficiently.
        It is not just in how we treat the soil, but it is other
    things that go into the total operation across the board.
        Senator Bennet. The soil is an important part of all of
    this, obviously, because that is the only way you can pass a
    farm to the next generation.
        In Colorado, that part of the country, we know our history,
    and we know when we had the Dust Bowl, we had to respond to
    that. We had to change the practices, and the result of that is
    we have family farms today that we would not otherwise have had
    we not done that. I think we are on the cusp of that sort of a
    revolution right now. You heard it from the testimony of the
    representative of Land O'Lakes.
        Since you were kind enough, Mr. Larew, to mention my bill,
    I wanted to give you an opportunity to talk about it a little
    bit more.
        As I think the Chairman knows, I released a draft bill last
    year to provide tax credits for farmers, ranchers, and
    foresters who are taking steps to store carbon in their land.
    We modeled it after the 45Q credit that is available to the
    energy sector. I think our sector should have the benefit of
    that as well.
        Could you talk a little more about how the Growing Climate
    Solutions Act might set the stage for more public-sector
    initiatives such as a tax credit to increase carbon
    sequestration in the land sector and create value for our
    farmers, ranchers, and foresters?
        Mr. Larew. Certainly. I appreciate the question.
        I think that what is important to note is that the Growing
    Climate Solutions Act, by setting criteria for the third-party
    verifiers lends that legitimacy to the marketplace-sends the
    signal that there is more structure in place, if done
    correctly, with very rigorous accreditation and also with
    making sure that bad actors and other market forces are
    performing well for farmers.
        I think that will set the stage very nicely for additional
    suites of incentives that would also allow farmers to innovate
    and take advantage of additional climate-friendly practices.
    Part of that certainly could include a carbon sequestration tax
    credit, much like your bill has perceived so far.
        As I noted before, we do need to make sure that it operates
    in a way that serves family farmers and ranchers primarily, and
    we need to make sure since they do not have many cases of a tax
    burden because of economic conditions that we are incentivizing
    any transfer in a way that again keeps family farmers and
    ranchers on the land and that we are not inadvertently setting
    up incentives for corporate land grabs to also take advantage
    of those.
        Senator Bennet. I think that is a very important point. I
    look forward to working with you on that.
        Mr. Larew. Thank you.
        Senator Bennet. Mr. Chairman, thank you.
        Chairman Roberts. Senator Thune.
        Senator Thune. Mr. Chairman, thank you and Ranking Member
    Stabenow for holding today's hearing to consider the Growing
    Climate Solutions Act.
        I also want to thank our witnesses for appearing before the
    Committee today and for your input on this issue.
        I know you have probably covered some of this ground, and I
    apologize I had to be at another hearing at the Commerce
    Committee, but I want to ask the question for all the
    witnesses. Maybe you could do it quickly and sort of summarize
    your answer. What do you see as the biggest obstacle that
    farmers and ranchers face when it comes to accessing carbon
    markets, and how are producers currently accessing these
    markets?
        Mr. Bible. I can go first on that.
        The biggest barriers are knowledge or lack thereof about
    the process and then trust, trust that you can be involved with
    a third party that is going to be fair with you from a farmer
    perspective. I think those are the barriers that I see. I think
    this bill does a good job of addressing that.
        Senator Thune. Mr. Larew.
        Mr. Larew. I would certainly agree with that. I think
    knowledge--farmers are great at farming and at trying to
    distill a lot of information, but for the efforts that are out
    there right now, these contracts are enormously complex, and
    there are a lot of questions. Setting up a system similar to
    one that is envisioned by this bill would at least set up a
    structure so that farmers can trust the information, make sure
    that they can get their questions answered, and can believe in
    the system and the market itself.
        Senator Thune. How are they currently accessing the market?
    That is a second question, then.
        Mr. Larew. There are certainly a couple players right now
    in this marketplace. Indigo is one of the companies that is out
    here right now, and farmers are able to kind of access that
    individually.
        Again, I think that one of the limitations for additional
    acreage being signed up is the lack of knowledge and being able
    to tap into those markets.
        Senator Thune. Mr. Duvall and Mr. Bible, both of you
    mentioned ethanol in your opening remarks, and built on the
    efficient and cleaner farmer practices we are discussing today,
    we know that American ethanol and biodiesel are driving
    significant emissions reductions. Could you speak to the
    importance of having accurate up-to-date greenhouse gas
    modeling from EPA, especially how it might further support
    green farming or create trade opportunities?
        Mr. Bible and then Mr. Duvall.
        Mr. Bible. Okay. Two things that I will say, it is vitally
    important for us to have that information wherever it comes
    from, whether it is EPA or USDA, and second, I will say that
    the issue that we faced in the ethanol market with EPA and
    issuing those waivers that we faced, that has been a tremendous
    challenge, and the fact that we have a government entity that
    has put up a barrier to that market is deeply concerning to me.
        Senator Thune. Mr. Duvall.
        Mr. Duvall. Yes, Senator. We think it is vitally important
    that we be able to measure that and have something that we can
    have trust and depend on.
        The ethanol, biodiesel in 2019 reduced green house gas
    emissions by the amount equivalent of 17 million cars being
    taken off the road.
        When you start talking about data for your constituents and
    the people out in the public to support programs that we are
    trying to utilize on our farms, they got to have the data to be
    able to see what we are actually doing and what is producing
    and how it is helping the environment.
        The ethanol industry is a great industry. It is an
    infrastructure in a lot of our rural communities out there. Not
    only the cars depend on it and being energy independent, but
    also the animal sector depends on a lot of the byproducts for
    feed stuff. It is a vital piece of the rural economy of this
    country and the infrastructure that was created to not just
    help rural America but to help America be energy independent,
    and in doing that, we have done some tremendous--made some
    tremendous strides in protecting our environment.
        Senator Thune. Thank you.
        Mr. Bible, Mr. Larew, very quickly, greener farming
    practice does not only add value to the crop, but lower the
    lifecycle greenhouse gas emissions for biofuels. Cellulosic
    biofuels lower this carbon intensity even further. Could you
    speak to the importance or perhaps the detriment, I should say,
    of the EPA inaction when it comes to supporting technologies
    like corn kernel fiber that would bolster environmental efforts
    in the ag space?
        Mr. Larew. Yes. I mean, very briefly, I think that EPA has
    been the primary barrier to a lot of additional success that we
    can have in the reduction of greenhouse gases in ethanol and
    technology, particularly on the cellulosic side, but also,
    quite frankly, on traditional--even as we are improving through
    agronomic practices, et cetera, and processing, the story for
    green-based ethanol in general. EPA continues to be a barrier
    not only for the waivers that they have issued, but also for
    barriers against higher blends, which would be able to move us
    even further and continues to be a strong and smart climate
    solution.
        Senator Thune. Thank you.
        Mr. Bible. I will just echo that thought very briefly that
    there are tremendous opportunities for ethanol markets going
    forward, grain, cellulosic, on and on, and the EPA certainly
    should not be a barrier to those emerging markets.
        Senator Thune. Thank you.
        Thank you, Mr. Chairman.
        Chairman Roberts. Members should know that we have votes at
    11:30. We are going to try to keep going here. If we can make
    our remarks somewhat brief, why, that would be appreciated.
        Senator Gillibrand.
        Senator Gillibrand. Thank you, Mr. Chairman.
        As you all know, farmers are dependent upon a stable
    climate for their livelihoods and way of life and acutely
    exposed to the impacts of climate change, whether flooding,
    drought, or spread of invasive species and crop pests.
        I agree with you, as you said in your testimony, that,
    quote, climate change is the single greatest long-term
    challenge facing family farms and ranchers, rural communities,
    and global food security.
        We need to address this challenge head on, and our farmers
    have a unique and important role to play. What more can we be
    doing to engage our farmers and agricultural communities
    particularly where there is a lot of skepticism around climate
    science and the need to reduce fossil fuels?
        Mr. Larew. I appreciate the question.
        For our membership and our farmers and ranchers across the
    country, they have recognized the challenges and the changing
    climate and the direct effect that it has on their operations.
    They are very much focused on solutions, and as this debate and
    conversation continues, recognize the opportunities, some of
    which we are talking about today, tapping into markets.
        For farmers and ranchers, I think that, first and foremost,
    they are interested in leaving their lands in better condition.
    They are also interested in sustaining that operation into the
    far future, and so making sure that they can do that not only
    in a sustainable way, but quite frankly, an economically viable
    way is going to be critically important.
        As we get additional data about the value that many of
    these climate-friendly practices bring to their operations, I
    think that information will go even further in building that
    level of trust. That tied to the incentives that are market-
    based, potentially also those incentives with the existing
    suite of voluntary incentive-based programs at USDA and
    conservation, all of these types of things are certainly
    welcome by farmers and will continue to be adopted by them as
    they see the value that it brings to their operations.
        Senator Gillibrand. In addition to the legislation we are
    examining today, what are other policies and support from the
    Federal Government that would make it useful to helping farmers
    become less dependent on fossil fuel, and what are the biggest
    barriers to powering our farms with more renewable energy? Do
    any of you have thoughts on what Congress could do to
    incentivize farmers to use more wind and solar power to
    electricity and transition to cleaner farm equipment in a way
    that is cost effective?
        Mr. Larew. Senator, I would just jump in first on
    reiterating that one of the, I think, central roles that
    Congress could certainly play in helping support this whole
    culture is really investing even further on basic research,
    basic research through USDA on climate-friendly solutions and
    what those outcomes actually are, making sure that we have
    credible, validated information with which we can make other
    policy and obviously land practice decisions in a credible way.
        I think that making sure that the information we have out
    there is very much science driven is a really important role
    that the Federal Government can play.
        Mr. Weller. I would just add to this, and this is built
    upon President Larew's remarks, but also to echo Mr. Bible's
    remarks earlier.
        Senator, I think the conversation with the producer really
    has to be anchored, in our experience, first and foremost, in
    how do practices and technology help that farm be more
    profitable.
        Setting aside the climate change conversation, which
    sometimes can lead to a tangent that is not necessarily a
    productive conversation, if you first approach the farm,
    understanding a business operation, what is the mix of
    practices and systems that is going to help that farm be more
    successful from a production but more importantly a profit
    standpoint, if you anchor the conversation in profitability,
    that ultimately can lead to the adoption of climate-smart
    technology.
        Using the Federal Government, as we talked about, with this
    legislation, with other legislation, and incentives that have
    been discussing during the hearing, it is really the mix of
    different incentive tools that the Federal Government should
    look at, but ultimately, it is helping farmers to adopt the
    right mix of practices, because it is going to reduce their
    emissions but also offset the emissions of other sectors.
        Mr. Duvall. Senator, this is Zippy Duvall, American Farm
    Bureau.
        I grew up, I have raised my family here on my family farm
    that was passed down from my grandfather, and the most
    important things as a farmer is, one, being able to conduct our
    businesses in a way that is healthy for our families and our
    neighbors, that is healthy for our soils and our waters, and
    then, of course, to do that, we have to be profitable.
        What we depend on in small family farms across America is
    trust in research, research that is public and private going
    on, our land-grant colleges. We all trust our land-grant
    colleges to do that research, to be able to deliver something
    that I can voluntarily get involved in, protect the soil and
    water of my family, my neighbors, my friends, pass my farm on
    in better conditions than I received it. It is something that
    is going to draw me to it quickly.
        Just an example in my younger years when we started talking
    about nutrients being applied behind animal production, I raise
    about a million and a half broilers here a year. We use a
    comprehensive nutrient management plan. That comprehensive
    nutrient management plan was information that came to me from
    the extension service. My extension agent, I trusted. He helped
    me set it up, and we have abided by that plan for years and
    years and years.
        The programs that we are talking about is the same thing.
    If we can do it, do it right, not make it too complicated, make
    it beneficial to our land, water, and our farms, healthy for
    our families and our neighbors, and help us to be profitable,
    more profitable, that we can afford to do it through buying the
    equipment and actually putting in these practices on the ground
    would be a draw to our farmers to come to.
        Senator Gillibrand. Thank you.
        Chairman Roberts. Thank you, Senator.
        Senator Braun.
        Senator Braun. Thank you, Chairman Roberts.
        Chairman Roberts. Cosponsor of the bill.
        Senator Braun. Thank you.
        Brent, we had a chance to visit this morning earlier and
    share the common roots of being a Hoosier, and interestingly,
    you are a first-generation farmer. I am wondering how many have
    stuck their neck out to get into farming for the first time.
    You started in 1907, two years before the four best years we
    have had in the farm economy, and since 2013--and I talk about
    it often--all of a sudden, the arithmetic starts to get
    increasingly difficult for any farmer.
        We were reminiscing about putting an acre of soybeans out
    for 70 bucks an acre; corn, $140; and prices along with the
    other mechanisms not too much different from what we have now.
        Now costs have tripled. It seems to be very sticky, coming
    down, and we are in that groove of where there is probably very
    little margin of error.
        I would like you to take the time in a pro forma way to
    talk about the costs of agriculture per acre and maybe take an
    acre of corn and put that in relation to--I think from Mr.
    Larew's data, we found that back in 2010, this might generate
    about 15 bucks an acre. Update us on what the carbon markets
    might give a farmer currently if you perform in a way that is
    friendly to the environment. Talk about the high altitude of
    farm P&L's and how narrow the margin of profit is currently, if
    you can carve one out, so we can all understand how difficult
    your business is.
        Mr. Bible. Sure. It has changed drastically over the last
    13, 14 years.
        I do come to this as a first-generation farmer. Certainly,
    we all grew up--I think many of us grew up with a garden or a
    few cattle or a few pigs around and that type of thing. That
    was a rural lifestyle in the 1970's and 1980's, especially, but
    my parents had all farm jobs. I chose to enter this a little
    bit later in life, and it has worked out wonderfully.
        The timing was good, as you alluded to, when we entered
    into full-time farming. There was a profit margin there, and we
    did not rely on government support and subsidies like we have
    gotten to today in terms of trying to have some type of
    sustainability or profitability on the farm.
        The cost of inputs have risen dramatically in the last 15
    years, and that----
        Senator Braun. Three times would be fair from what it was?
        Mr. Bible. Two to three times, absolutely. A lot of that
    has been driven by technologies and seed and other inputs, but
    certainly, some of that has just been driven by the ability to
    make a profit or the need to make a profit form the input side
    of things. That was great through a few years where the farmer,
    the end producer was making a good profit as well. We have seen
    that certainly go backward the last five, six years.
        I see no change in that on the horizon for that right now.
    Our demand structure certainly has been injured in the last
    couple of years through different things, policy and otherwise,
    but our supply is very good right now as well. We need to look
    for other markets, other opportunities to generate a profit,
    and outside----
        Senator Braun. Yields have not compensated for the input
    cost going up. To be fair, yields have gone up, but your margin
    has shrunk to where there's a margin on a pro forma basis in
    farming currently, taking into full depreciation of equipment
    and all of that. How close is it?
        Mr. Bible. It is zero--or it is probably--to be fair, it is
    less than zero if you do not include the USDA payments that
    have come the last couple of years.
        A typical--I think I am a typical farmer. I see myself that
    way. We are not making money right now. We are treading water,
    so to speak, when you take away that USDA subsidy that has been
    there, whether that is the market facilitation program to the
    COVID.
        Senator Braun. Have these carbon credits gotten any better
    since the 15 bucks per acre, roughly, back in 2010 in terms of
    the markets that are there? Can you comment on that quickly?
        Mr. Bible. Just very quickly, I would say that that comes
    down to supply and demand, and the demand has increased for
    those voluntary markets to exist. I think that is the
    opportunity for us to be able to step up and supply that and
    generate revenue through that process.
        Senator Braun. Make a big difference going from maybe zero
    in the present, actually having a positive bottom line based
    upon something you are doing, anyway, sustainably.
        Mr. Bible. Absolutely. It gives us the opportunity to make
    a profit and do something environmentally healthy for our
    operations at the same time.
        Senator Braun. Thank you so much. Keep up the good work.
        Mr. Bible. Thank you, Senator. Thanks for having me.
        Chairman Roberts. Senator Smith.
        Senator Smith. Thank you very much, Chair Roberts and
    Ranking Member Stabenow. It is wonderful to be with all of you
    virtually, and I very much appreciate your testimony.
        Just quickly, I am really proud to be a cosponsor of the
    Growing Climate Solutions Act of 2020, and as I am listening to
    you all talk about this, you really are describing, in a way,
    sort of a noble circle that can exist in farming where you have
    good soil health, good water quality. You have sustainability.
    You have profitability, and all of that leads to a sustainable
    operation.
        Could you just briefly talk about how if it is done
    correctly, this act could provide an additional source of
    revenue and a diversification of revenue that might be helpful
    to farmers in all parts of that noble circle? Just anybody who
    wants to comment on that, that would be great.
        Mr. Weller. I will jump in there, Senator Smith. Jason
    Weller from Land O'Lakes. Nice to see you, Senator.
        As Mr. Bible was just discussing, but some of the other
    witnesses have also talked about, it is, first and foremost,
    farmers are great at producing food, fiber, and fuel,
    absolutely, but it is also here, we are on the cusp of and what
    your legislation helps anticipate is this new class of
    commodities for, in this case, greenhouse gas credits. Whether
    it is going to be $10 a ton or $15, $20 a ton, the voluntary
    markets are going through price discovery right now, and as we
    expect as increasing demands for credits come from the private
    sector for offsets further emission, we are hopeful that over
    time, you will see price accretion, and there will be more and
    more opportunities for farmers to generate revenue.
        In the end, we see this as not necessarily becoming a
    replacement of crops, of course. This is going to be an
    additive, an add-to, and so in the end, this is an opportunity
    for farmers to have an additional source of revenue but also to
    diversify the revenue coming into the operation and at the same
    time can help offset the cost to adopt new technology, new
    equipment, new crops that ultimately can improve the
    profitability of the farm, but also adopt a climate-smart
    practice that will improve the resiliency of that operation.
        Mr. Bible. I will just briefly add to that. What it does is
    it provides the opportunity to participate, and that is what
    Jason is really getting at.
        We do not have to do this, but if there is an incentive
    there and if it is right for our operation, we will have that
    opportunity to participate and to succeed.
        Senator Smith. Right. Thank you.
        Jason, if I could come back to you, it is wonderful to be
    here with a fellow Minnesotan. Minnesota is the very proud home
    of Land O'Lakes.
        Throughout this conversation, there has been lots of
    conversation and lots of discussion about the importance of
    broadband, especially, as you talk about, the work you are
    doing around your big effort around sustainability.
        I very much admire the work that your CEO, Beth Ford, has
    done around the American Connection Project. I know that
    Farmers Union is part of the American Connection Project, and I
    also know that Farmers Union--Farm Bureau is part of the
    American Connection Project, and Farmers Union is a strong
    supporter of broadband also.
        Beth talks about--and the group talks about the importance
    of greater funding for broadband, better mapping for broadband,
    and also the need for increased coordination at the Federal
    level. The suggestion is that a person within the White House
    that coordinates all of the various Federal efforts around
    broadband. We have certainly seen in the COVID emergency, but
    we knew it before, that broadband is not just something that is
    nice to have. It is absolutely necessary for health, for
    education, for jobs, for everything.
        Jason, could you just talk a little bit more about the work
    at the American Connection Project and how you see that
    applying to what we are talking about today?
        Mr. Weller. Absolutely. In no small part, I am extremely
    proud to be part of Land O'Lakes, and because, first and
    foremost, when I wake up, I know who I work for, which are farm
    families and ag retail owners, but it is also the power of the
    cooperative to be a convener, in this case, through the
    American Connection Project. We are helping to convene a huge
    alliance of diverse partners, including the American Farm
    Bureau Federation. Microsoft is a technology partner. CoBank is
    a financial institution. The Mayo Clinic, also another
    Minnesota-based organization, of course, focused on health
    care, and it is a huge coalition.
        What the COVID pandemic has really shined a light on is the
    disparity in access to the 21st century economy, and that is
    access to the internet. Without access to that internet, you
    cannot do or ultimately implement what we have been talking
    about during this hearing, which is creating new commodities,
    but you also cannot access telemedicine outcomes, education
    opportunities, commerce opportunities for small businesses and
    for farmers themselves to market their crops.
        In the end, we have tried through the American Connection
    Project to provide for connection, but more fundamentally to
    advocate for significant investment, really what should be a
    public utility, and it is a right of access to the 21st century
    super highway, which is the internet.
        Senator Smith. Thank you very much.
        Mr. Chair, I just want to add--I understand that Farmers
    Union as well as Farm Bureau have signed on to the American
    Connection Project, so that is great news.
        Chairman Roberts. Thank you, Senator.
        Senator Fischer.
        Senator Fischer. Thank you, Mr. Chairman.
        I would like to address this first question to Mr. Duvall
    and Mr. Weller, please.
        Ranchers, particularly those with small-or medium-sized
    family farms and ranches are operating on very thin margins,
    but we know that rangelands store vast amounts of carbon, and
    with small management tweaks, that they can store even more.
        However, carbon market conversations seem to be narrowly
    focused on croplands. How would this legislation remove
    barriers and de-risk these management tweaks for ranchers,
    specifically wanting to access voluntary carbon markets?
        Mr. Weller. I will jump in there first, Senator. Thank you
    very much.
        I think this legislation is really about tapping into the
    scientific and technical expertise of USDA to ultimately help
    identify, set up a system, to identify experts that, in this
    case, ranchers, livestock producers can turn to.
        I agree with you, more often than not, that the whole focus
    around soil health and carbon sequestration is very much
    focused on real crop producers, but there is a huge opportunity
    for range operations, livestock producers, as well as those who
    have pastures, and ultimately, to help those soil systems
    capture and store carbon.
        Through this legislation, it is identifying the
    professionals that can provide that range management, pasture
    management expertise to that livestock producer, livestock
    operator, to help those grassland-based systems pull down and
    store carbon as well as then allowing to have a transparent
    place where ranchers and livestock operators can turn to if
    they too also want to participate in a voluntary marketplace.
        There are increasingly organizations--and I will mention it
    because we are a member of one. We are a very proud member of
    it. It is the Ecosystems Services Market Consortium. It is an
    important industry consortium of over 50 organizations, private
    sector, public sector, nonprofit organizations coming together
    to design the protocol to create a voluntary marketplace for
    ranchers, for livestock producers to bring their credits into
    the marketplace, so they too can participate in a greenhouse
    gas credit removal opportunity.
        Mr. Duvall. Yes, Senator. Jason is perfectly correct. I
    mean, I have a 400-cow-calf operation here on my family farm. I
    am a grass farmer. We call ourselves beef farmers, but we are
    really grass farmers. Anytime or any program that I can be
    involved in to help the soil health on my farm, it not only
    helps the soil, but it makes it more productive, and more
    productive soil gives momma cows more to eat, which makes the
    calves bigger and better.
        I think it is all about having the data, of recognizing
    what we have already done to improve our soils before,
    recognizing our annual practices that we have put on the ground
    with interseeding hard-land drills and comprehensive nutrient
    management plans and all that we do, all incorporated in this
    will help us provide another avenue for us to improve our soil
    health, be more productive, and more profitable on the farm.
        Senator Fischer. Right. There are several NRSC programs
    that are aimed at conserving land like the CSP and CRP, and
    both of those are very popular in my home State.
        In the 2018 Farm Bill, there was a provision in there on
    environmental services markets that prevents USDA from limiting
    participation in markets for all farm bill conservation
    programs.
        Effectively, that is going to allow producers to couple and
    offset projects on top of an already funded conservation
    project. It seems to me that this would help producers increase
    their income by generating credits from land taken out of
    production through CRP, as an example. Do you see it that way?
        Mr. Weller. Through our approach, just real quick, through
    Truterra, we work with our agricultural retailers, and they are
    working with farmers in Nebraska. We have several retailers we
    are very proud to be partnering with in Nebraska, including
    Frontier Co-op, Central Valley Ag, Westco Co-op, and they are
    working with farmers to identify on their fields where there
    are opportunities to utilize programs like CRP to protect the
    soils, to enhance the carbon capacity carrying the soils to
    reduce erosion, provide for wildlife habitat.
        Yes, we see USDA programs like CRP very complementary to
    the exact topic of this hearing.
        Senator Fischer. Right. I would like to see us with this
    bill or other bills also to look at new feed additives, where
    you can reduce methane emissions from cow up to 30 percent. I
    think that has to be part of the conservations for all people
    who are involved with agriculture because we have millions of
    acres of rangeland in this country. We have tens of thousands
    of family ranchers out there as well who continue to improve
    those rangelands, continue to improve the soil, and can be of
    help here.
        Mr. Weller. Yes, Senator.
        Senator Fischer. If we can work together really to be able
    to address the need to allow for a quicker process to have some
    of these additives move through a regulation system at a
    quicker pace, that is going to help all of us.
        Thank you very much. Looking forward to working with you on
    that.
        Thank you, Mr. Chairman.
        Chairman Roberts. We thank you, Senator.
        This will conclude our hearing today. Thank you so much to
    each of our witnesses for taking time to share your
    perspectives on the Growing Climate Solutions Act for 2020.
        To my fellow members, we ask that any additional questions
    you may have for the record be submitted to the Committee Clerk
    five business days from today or by 5 p.m. next Wednesday, July
    1st.
        The Committee stands adjourned.
        [Whereupon, at 11:54 a.m., the Committee was adjourned.]

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