[Senate Hearing 117-607]
[From the U.S. Government Publishing Office]


                                                        S. Hrg. 117-607

                   AGRICULTURAL TRADE: PRIORITIES AND
                    ISSUES FACING AMERICA'S FARMERS

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

                                HEARING

                               BEFORE THE

                            SUBCOMMITTEE ON
                COMMODITIES, RISK MANAGEMENT, AND TRADE

                                 OF THE

                       COMMITTEE ON AGRICULTURE,
                        NUTRITION, AND FORESTRY

                          UNITED STATES SENATE

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             SECOND SESSION

                               __________

                              JUNE 9, 2022

                               __________

                       Printed for the use of the
           Committee on Agriculture, Nutrition, and Forestry
           
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]           


                  Available on http://www.govinfo.gov/
                  
                              __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
50-075 PDF                  WASHINGTON : 2024                    
          
-----------------------------------------------------------------------------------                    
                 
           COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY


                 DEBBIE STABENOW, Michigan, Chairwoman
PATRICK J. LEAHY, Vermont            JOHN BOOZMAN, Arkansas
SHERROD BROWN, Ohio                  MITCH McCONNELL, Kentucky
AMY KLOBUCHAR, Minnesota             JOHN HOEVEN, North Dakota
MICHAEL F. BENNET, Colorado          JONI ERNST, Iowa
KIRSTEN E. GILLIBRAND, New York      CINDY HYDE-SMITH, Mississippi
TINA SMITH, Minnesota                ROGER MARSHALL, Kansas
RICHARD J. DURBIN, Illinois          TOMMY TUBERVILLE, Alabama
CORY BOOKER, New Jersey              CHARLES GRASSLEY, Iowa
BEN RAY LUJAN, New Mexico            JOHN THUNE, South Dakota
RAPHAEL WARNOCK, Georgia             DEB FISCHER, Nebraska
                                     MIKE BRAUN, Indiana

               Joseph A. Shultz, Majority Staff Director
                    Jessica L. Williams, Chief Clerk
               Fitzhugh Elder IV, Minority Staff Director
                              ----------                              

        Subcommittee on Commodities, Risk Management, and Trade

                   RAPHAEL WARNOCK, Georgia, Chairman
SHERROD BROWN, Ohio                  JOHN HOEVEN, North Dakota
RICHARD J. DURBIN, Illinois          MITCH McCONNELL, Kentucky
TINA SMITH, Minnesota                CINDY HYDE-SMITH, Mississppi
KIRSTEN GILLIBRAND, New York         TOMMY TUBERVILLE, Alabama
BEN RAY LUJAN, New Mexico            CHARLES GRASSLEY, Iowa
                                     JOHN THUNE, South Dakota
                            
                            
                            C O N T E N T S

                              ----------                              

                         Thursday, June 9, 2022

                                                                   Page

Subcommittee Hearing:

Agricultural Trade: Priorities and Issues Facing America's 
  Farmers........................................................     1

                              ----------                              

                    STATEMENTS PRESENTED BY SENATORS

Warnock, Hon. Raphael, U.S. Senator from the State of Georgia....     1
Hoeven, Hon. John, U.S. Senator from the State of North Dakota...     3

                               WITNESSES

Munisamy, Gopinath ``Gopi'', Ph.D., Distinguished Professor, 
  Department of Agricultural and Applied Economics, University of 
  Georgia, Athens, GA............................................     5
Thompson, Karla, Vice President, J.E.T. Farms Georgia and 
  Integrity Farms, Camilla, GA...................................     7
Meshke, Sheryl, Co-President and CEO, Associated Milk Producers, 
  Inc., New Ulm, MN..............................................     9
Fisher, Neal, Administrator, North Dakota Wheat Commission, 
  Mandan, ND.....................................................    10
                              ----------                              

                                APPENDIX

Prepared Statements:
    Munisamy, Gopinath ``Gopi'', Ph.D............................    22
    Thompson, Karla..............................................    25
    Meshke, Sheryl...............................................    42
    Fisher, Neal.................................................    53

Question and Answer:
Meshke, Sheryl:
    Written response to questions from Hon. Amy Klobuchar........    60

 
   AGRICULTURAL TRADE: PRIORITIES AND ISSUES FACING AMERICA'S FARMERS

                              ----------                              


                         THURSDAY, JUNE 9, 2022

                                       U.S. Senate,
         Committee on Agriculture, Nutrition, and Forestry,
    Subcommittee on Commodities, Risk Management, and Trade,
                                                    Washington, DC.
    The Subcommittee met, pursuant to notice, at 11:02 a.m., in 
room 215, Dirksen Senate Office Building, Hon. Raphael Warnock, 
Chairman of the Subcommittee, presiding.
    Present: Senators Warnock, Smith, Hoeven, Tuberville, 
Grassley, and Thune.

STATEMENT OF HON. RAPHAEL WARNOCK, U.S. SENATOR FROM THE STATE 
                           OF GEORGIA

    Senator Warnock. I call this hearing of the Subcommittee on 
Commodities, Rick Management, and Trade to order. Thank you all 
for joining us this morning.
    Today's hearing, titled ``Agricultural Trade: Priorities 
and Issues Facing America's Farmers,'' is an opportunity for 
members of the Subcommittee to hear directly from our farmers 
regarding their trade challenges and their priorities in 
today's tough and changing economy.
    Just last week, I spent time on Dickey Farms in Musella, 
Georgia, meeting with a group of farmers and agriculture 
leaders to discuss the stress our farmers are experiencing. 
Their message to me and to us was loud and clear; farming is a 
really tough job, but it is especially tough right now.
    Farmers in Georgia and throughout the country have been 
forced to navigate a tremendous amount of uncertainty over the 
last few years. Among their challenges, trade wars, COVID-19 
supply chain disruptions, and now Russia's war in Ukraine have 
all sent shockwaves through global commodity markets. In 
addition to that, farmers are also experiencing extreme weather 
events as we deal with climate change. Many in Georgia 
painfully remember the destruction of Hurricane Michael in 
2018, and as we speak a third of the counties in Georgia, a 
third, are experiencing some level of drought.
    In Georgia, the success of our farmers is integral to the 
success of our State. According to the University of Georgia 
Center for Agribusiness and Economic Development, food and 
fiber production and processing contributes nearly $70 billion 
to Georgia's economy, supporting over 350,000 jobs in my State. 
Expanding trade opportunities is not a guarantee for success, 
but it is certainly a vital tool in the tool box for our 
farmers. The farmers in Musella told me repeatedly that trade 
barriers are a risk to their profitability. They are dealing 
with that challenge in real time on the ground.
    I believe that it is our responsibility to support policies 
that keep our farmers competitive in the global market and 
expand opportunities for market access. I am focused on doing 
all I can to help Georgia's farmers thrive economically and in 
their communities, and as we prepare for the next Farm Bill, I 
look forward to working with members of the Agriculture 
Committee, including Ranking Member Hoeven, to ensure that we 
are making strategic investments that set all farmers up for 
success, including those who have been historically underserved 
and overlooked.
    While passage of the next Farm Bill is likely months away, 
our farmers are facing trade barriers in international markets 
right now. Here are just a few examples:
    Last year, I partnered with my friend, Senator Tuberville, 
to highlight concerns to the United States Department of 
Agriculture (USDA) and the United States Trade Registration 
(USTR) raised by our peanut farmers in getting their products 
to market in Europe and ways we need Federal agencies to better 
coordinate and step up to help address this issue.
    I also remain concerned that our trade policies are leaving 
certain sectors behind, including Georgia's seasonal fruit and 
vegetable farmers. A steep increase in cheap imports has made 
it difficult for Georgia's produce farmers to compete in the 
market. I am especially hearing in that regard from our 
blueberry farmers and the current regulations around showing 
that they are under distress have made it difficult for them to 
get any kind of relief. I have worked with Senator Rubio to 
support legislation to defend domestic produce production and 
level the playing field for Georgia's fruit and vegetable 
growers.
    As a proud Georgian, it would be a missed opportunity in 
this hearing to not mention puh-cahnsor pee-cans, depending on 
where you are from. My State is No. 1 for pee-can production; 
that is how we usually say it in Georgia. Georgia's pecan 
growers are currently facing tariff rates as high as 36 
percent, 36 percent, when attempting to export their products 
to India. I am currently working with Senator Cornyn to address 
this, and in the coming days we will be pushing USTR to 
prioritize engagement on this issue.
    These are just a few examples of concerns that I am hearing 
from farmers all across Georgia, but these examples underscore 
how we can work across party lines to tackle trade barriers in 
support of our farmers.
    As Chair of this Subcommittee, it is my goal to ensure 
farmers' voices and experiences are heard throughout the halls 
of the Senate to better inform our work. This moment of 
uncertainty in our international markets demands strong 
leadership. I am glad to see that Alexis Taylor has been 
nominated to be the USDA Under Secretary for Trade and Foreign 
Agricultural Affairs, and I look forward to consider her 
nomination soon before this Committee. I am also relieved that 
President Biden finally put the nomination of Doug McKalip to 
be the Chief Agricultural Negotiator at USTR. These positions 
are critical given the current stress that our farmers are 
dealing with because of the challenges in the current trade 
situation. The Senate needs to confirm these nominees right 
away because it is unacceptable that no one has been confirmed 
for these critical roles.
    Finally, I want to say thank you to Ranking Member Hoeven 
and his team for working with us on this hearing. The 
agricultural sectors in Georgia and North Dakota may look 
different, but I know we share many of the same priorities when 
it comes to advocating for the farmers in your State and in 
mine. Ranking Member Hoeven, I will turn the floor over to you 
now for any opening comments you would like to make.

 STATEMENT OF HON. JOHN HOEVEN, U.S. SENATOR FROM THE STATE OF 
                          NORTH DAKOTA

    Senator Hoeven. Thank you, Chairman Warnock. Appreciate it. 
Appreciate you calling this hearing. I want to thank our 
members, our witnesses for being here.
    We are here today to discuss a topic that is important to 
every farmer and rancher in North Dakota and really across the 
country, as the Chairman just articulated. Ag exports provide a 
tremendous value to our producer. For example, last year, our 
State exported about $4.3 billion worth of ag products.
    I always like to say: It does not matter what issue we are 
working on in agriculture. Every American benefits every single 
day from good farm policy. Highest quality, lowest cost food 
supply in the world. Every consumer benefits from the courtesy 
of our farmers and ranchers.
    Recent world events like Russia's aggression, invasion of 
Ukraine and the COVID-19 pandemic have underscored the 
important role our farmers and ranchers play, not just in our 
food supply here at home but globally, and really ensure food 
security for us and something that we just cannot take for 
granted.
    A key component of sound farm policy is ensuring that our 
producers have access to those global markets. Our producers 
can compete with anyone, anywhere, anytime. I think Coach used 
to say that a lot to his players. Right? I think in some cases 
it was true of some of his teams and in some cases it was not, 
but for our farmers, it is always true, and our ranchers.
    That is why I am a strong supporter of programs like the 
Market Access Program (MAP), and the Foreign Market Development 
(FMD) program, both of those programs obviously at USDA. 
Commodity organizations in my State, as well as the North 
Dakota Wheat Commission, the North Dakota Soybean Council, rely 
on these programs and resources to open new markets and grow 
opportunities for our producers.
    That is why also I have supported, and we need to continue 
to support, to take on bad actors like China when they, in 
essence, undertake a trade war on our producers, which we have 
had to do in recent years. That distorts markets and obviously 
is unfair in terms of trading practices, and we need to--we 
want open trade. We want free trade. We want fair trade, and we 
got to be tough about it. We have to be tough about it.
    Ag trade is not just important for our ranchers. It really 
is important for our overall economy in terms of bringing in a 
positive balance of payments, which ag does, and of course, 
employing north of 16 million jobs directly or indirectly 
across our country. According to USDA Economic Research 
Service, every $1 billion of U.S. ag exports supports about 
7,500 jobs throughout our economy. In 2021, the value of 
exports was $177 billion. In addition, the U.S. has carried, as 
I said, a positive balance of trade for the last two decades.
    Now I am going to mirror here the Chairman's remarks in 
that we do need these trade positions filled by the 
Administration, so I am encouraged that he has named a nominee 
for Under Secretary for Trade last month and now a nominee for 
the Chief Ag Negotiator for USTR just yesterday. It took too 
long, and we need to get people in those positions and working 
for our producers.
    U.S. ag exports are forecasted to hit a high of $191 
billion this year. $191 billion. That is good, but we got to 
stay after it and keep it growing. Of course, with what Russia 
has done in Ukraine, that has created real food issues across 
the globe.
    There is a lot of work here to do, and I look forward to 
working with the Chairman and the other members of this 
Subcommittee and again want to thank all our witnesses for 
being here.
    Thanks, Mr. Chairman.
    Senator Warnock. Thank you so much, Ranking Member Hoeven.
    It is now my pleasure to introduce our panel of witnesses. 
Our first witness is Dr. Gopi Munisamy. Dr. Munisamy is a 
distinguished professor of agricultural marketing in the 
University of Georgia's Department of Agricultural and Applied 
Economics. Dr. Munisamy has an extensive history working on 
agriculture trade issues, including his previous service as 
Director of the Market and Trade Economics Division within 
USDA's Economic Research Service.
    Thank you so very much for being here, Dr. Munisamy.
    Our next witness is Mrs. Karla Thompson. Mrs. Thompson is 
the Vice President of JET Farms Georgia and Integrity Farms. 
She lives in Camilla, Georgia--I know where Camilla, Georgia is 
where she supports management of farm operations across Georgia 
and South Florida, producing peanuts and specialty crops such 
as blueberries, green beans, and sweet corns.
    Thank you for being with us today.
    Now I turn to Senator Smith of Minnesota, who will 
introduce our next witness.
    Senator Smith. Well, thank you, Chair Warnock and also 
Ranking Member Hoeven. It is good to be here with both of you, 
and I really appreciate this hearing very much.
    I am delighted to be here to introduce my fellow 
Minnesotan, Mrs. Sheryl Meshke. Mrs. Meshke is a fifth 
generation farmer, as I understand it, who operates a hog and 
sheep farm near Lake Crystal, Minnesota, with her husband, 
Blake and son, Brent, and wife, Leslie.
    Sheryl currently serves as Co-President and CEO of 
Associated Milk Producers, Incorporated (AMPI), which is the 
largest cheese cooperative based in the United States. AMPI is 
proudly headquartered in Minnesota and owned by dairy farm 
families all across the upper Midwest. Throughout her career at 
AMPI, Sheryl has represented the interests of 1,400 farm 
families and nearly 1,000 employees, and due to Sheryl's 
leadership, AMPI dairy farmer owners marketed 4.7 billion 
pounds of milk, which I just think is a sign of the incredible 
contributions you are making.
    In 2014, Sheryl became the first woman to be named CEO of a 
U.S. dairy cooperative and remains active on the boards of the 
National Milk Producers Federation and the U.S. Dairy Export 
Council. She holds a bachelor's degree in agriculture from 
South Dakota State University, not North Dakota State, and a 
master's degree in business from the University of St. Thomas.
    Welcome and thank you for being with us today.
    Senator Warnock. Thank you so much.
    Ranking Member Hoeven will now introduce our final witness.
    Senator Hoeven. South Dakota State has a pretty fair school 
of agriculture.
    My privilege to welcome a fellow North Dakotan to the 
Committee, Neal Fisher, who just got a doctorate from North 
Dakota State University, home of the Bison, so congratulations 
on that and very deserving. Neal serves as Administrator of the 
North Dakota Wheat Commission, and he works hard to expand 
trade for North Dakota wheat growers, really a lot of wheat 
growers across the country. He has been everywhere across the 
globe. You would be hard pressed to find a place he had not 
been.
    He joined the Commission in 1978, so he has been at it for 
a while, and was appointed Administrator in 1998. As 
Administrator, he is responsible for executing producer-funded 
programs focused on market development, research, 
transportation, and trade policy. He serves on a variety of 
boards and committees, including the U.S. Trade Reps, Ag Tech 
Advisory Committee for Trade.
    He is still involved in farming. He has got a farm in or 
near Tappen, North Dakota. He and his wife Deborah have three 
children and three grandchildren.
    Literally, I mean, he has been all over the world promoting 
wheat, and that is what we need, and he is a great Ambassador 
for our farmers.
    Thanks for being here, Neal. I appreciate it.
    Thank you, Mr. Chair.
    Senator Warnock. Great. Thank you so very much, Ranking 
Member Hoeven.
    Again, I thank our witnesses for being with us today. As a 
reminder, we ask that you keep your testimony to five minutes 
each. Thankfully, the deacons at Ebenezer Church, who suffer 
through my preaching, do not have one of these, but I do. Five 
minutes if you would, please.
    Dr. Munisamy, I will now turn things over to you for your 
five minutes of testimony.

  GOPINATH ``GOPI'' MUNISAMY, PH.D., DISTINGUISHED PROFESSOR, 
DEPARTMENT OF AGRICULTURAL AND APPLIED ECONOMICS, UNIVERSITY OF 
                    GEORGIA, ATHENS, GEORGIA

    Dr. Munisamy. Good morning, Honorable Chairman, Ranking 
Member, and members. Thank you for the opportunity to speak 
with you today.
    I would like to begin by saying there is much to celebrate 
in American agriculture. Our farm and food producers will 
export commodities and products worth about $191 billion in 
2022; that is about $19 billion over 2021, according to USDA. 
America is among the world's largest exporters of many 
agricultural commodities: soybeans, corn, beef, wheat, cotton, 
almonds.
    While we celebrate that success, let us keep in mind that 
export success is uneven across commodities and countries. Five 
commodities account for 50 percent of the total export value. 
Five countries account for 62 percent of the American 
agricultural export value. Moreover, the record export value in 
2022 mostly comes from price increases with volume down across 
most products.
    Let us also not forget that American consumers and food 
businesses will import $181 billion worth of commodities and 
products during fiscal 2022, nearly $18 billion over that of 
fiscal 2021, according to USDA again. Horticultural products--
fruits, nuts, vegetables, and alcoholic beverages--accounted 
for a whopping 50 percent of that import value, and Canada and 
Mexico are our two largest sources of imports.
    I would like to draw your attention specifically to a 
unique and large trade imbalance in fruits and vegetables. We 
will export about $14.4 billion worth of these products and 
import nearly $42.7 billion of fruits and vegetables during 
fiscal 2022, and that imbalance is unique and large.
    No doubt that our natural resource base, together with 
technology and our farmers' ingenuity, are at the core of 
American agricultural growth. Trade policy plays a role, a 
critical role, in translating that growth into well-being for 
both American producers and consumers. We led the creation of 
the World Trade Organization in 1995, accompanied by the launch 
of the Uruguay Round Agreement on Agriculture. In addition, we 
have 14 regional trade agreements in place covering 20 
countries.
    From the agricultural and food industry perspective, the 
major trade agreements are the Uruguay Agreement, U.S. Mexico 
Canada Agreement, the Central American Free Trade (CAFTA-DR) 
Agreement, and the Korea-U.S. Trade Agreement. Noteworthy here 
is that the last new agreement was Korea-U.S. in 2012. While 
there was some momentum in 2014 for new agreements, like the 
Trans-Pacific Partnership (TPP) and the Transatlantic Trade and 
Investment Partnership with the European Union, it was quickly 
replaced by a focus on enforcing existing agreements, resulting 
in renegotiated NAFTA, USMCA, renegotiated Korea-U.S. 
Agreement, and the Phase 1 U.S.-China Agreement in the last 
five years.
    Going forward, American agriculture, in my humble view, 
needs both predictable and equitable trade policies. Please 
allow me to first expand predictability. Back to back to back 
events--you can read that as U.S.-China trade conflict, COVID 
19, and the Ukraine-Russia military conflict--have created 
significant economic and policy uncertainties. For soybeans, 
for example, the largest market, China, was taken away first, 
and when it was reopened we faced a COVID-19 demand collapse, 
worker shortages, and shipping constraints. Now, with sunflower 
and palm oils facing export blocks for diagonally opposite 
reasons, our producers are significantly stressed on input 
costs and transportation barriers.
    Economists have clearly shown that uncertainties make all 
of us, including our farmers, to limit investments for future 
growth. With the market access that we are all asking for, we 
also need--and I am going to quote WTO here--``Sometimes, 
promising not to raise a trade barrier can be as important as 
lowering one because the promise gives businesses a clearer 
view of their future opportunities.'' The 164 member countries 
of WTO committed to this fundamental principle of 
``predictability, through binding and transparency.''
    I believe American leadership is needed in shaping trade 
policies that not only opens markets around the world but also 
ensures that such access remains stable, that is, 
predictability. Bilateral opportunities to expand market access 
exist both in sustainable products and conventional products 
with our key allies, like Japan, U.K., and E.U. However, 
multilateral efforts are needed to achieve predictable market 
access across all products and countries because collective 
action is often the best way to ensure predictability through 
binding and transparency. When the sky-high prices come down in 
a year, two years, we will diversified volume growth to 
continue to sustain and increase American agricultural exports.
    For the multilateral and bilateral efforts to achieve 
predictable market access, again in my humble view, we need to 
address inequities arising from trade. Every trade economist 
will tell you that trade creates gains and losses. If the 
losses--jobs, income, abilities--do not receive adequate policy 
attention, a consensus to move forward on future agreements 
cannot arise.
    The case in point is the Southeastern produce industry. On 
a recent road trip to south Georgia with my dean, I found a 
common theme across a dozen produce farms we visited: 
Hardworking families, husband and wife, grandpa and 
granddaughter, entire family, they are all challenged by 
imports, input costs, and labor issues.
    A major question on their agenda, as we talked to them, is: 
How can we compete with the flood of both in-season and off 
season Mexican and South American produce in our markets?
    Both the U.S. Department of Agriculture and the 
International Trade Commission have documented these trends and 
assessed revenue losses to Southeastern growers from some of 
these produce imports. Most of our growers recognize American 
consumers' desire for year-round availability of produce but 
fear that comes at the expense of their current and future 
incomes. Regional injuries of produce imports do not have a 
recourse in our trade law, but there are certainly other ways, 
many examples in the Farm Bill, which could make our 
Southeastern growers more competitive. The lessons learned from 
addressing inequities in agriculture may be of use elsewhere in 
the economy as well.
    Thank you for the opportunity to speak with you today. I 
would be very pleased to respond to any questions you have.

    [The prepared statement of Dr. Munisamy can be found on 
page 22 in the appendix.]

    Senator Warnock. Thank you so much, Dr. Munisamy.
    Next, Mrs. Thompson.

STATEMENT OF KARLA THOMPSON, VICE PRESIDENT, JET FARMS GEORGIA 
             AND INTEGRITY FARMS, CAMILLA, GEORGIA

    Mrs. Thompson. Chairman Warnock, Ranking Member Hoeven, and 
members of the Subcommittee, thank you for the opportunity to 
appear before you today as you review trade priorities for U.S. 
farmers. Today, I am representing the United States Peanut 
Federation.
    I currently farm with my husband Aaron and our extended 
family in southwest Georgia. We have a diversified farming 
operation, including peanuts, blueberries, green beans, fresh 
sweet corn, and sugar cane. Our farm reflects an increasing 
diversity in Southeastern agriculture.
    Trade issues impacting our farm range from non-tariff trade 
barriers to seasonal imports on fruits and vegetables, both of 
which are decimating our prices. Approximately 75 percent of 
our peanuts are sold domestically, but historically about 25 
percent of our U.S. peanuts are exported. Our primary peanut 
export markets are Canada, Mexico, Japan, the European Union, 
and China.
    After the 2002 Farm Bill reforms, U.S. peanut world market 
share did show a slight increase. However, since 2015, our U.S. 
share of the world market has been declining. The 
implementation of non-tariff trade barriers in the E.U. and 
United Kingdom have only made this problem worse. The U.S. 
peanut industry share of the world peanut market is less today 
than the U.S. market share was in the 1990's.
    A look at our major export markets shows some of the issues 
that we are facing. Our very best markets and also those with 
the most potential for growth are the markets that offer 
premium prices. Unfortunately, some of these best markets are 
really not healthy. Regarding the E.U. market, while the first 
three months of 2022 saw a significant increase over 2021, the 
overall trend line since 2003 has been downward. The U.S. 
market share decreased in the E.U. from approximately 40 
percent in 2003 to 14 percent in 2021.
    Why is there a struggle for U.S. peanut exports to the E.U. 
and, more recently, the U.K.? Mr. Chairman, as you and Senator 
Tuberville and 17 of your colleagues noted in a letter to the 
U.S. Trade Representative, peanuts are susceptible to a 
naturally occurring aflatoxin. U.S. peanut growers are subject 
to stringent testing by the United States Department of 
Agriculture that really assures our peanuts are safe to enter 
the food supply, both domestic and international.
    Still, the E.U. and now the U.K. have started requiring 
expanded testing criteria for U.S. peanut imports. The E.U. and 
the U.K. select 20 percent of U.S. shipping containers for 
aflatoxin testing, and then they test 100 percent of those 
peanuts. In contrast, they only select 10 percent of shipments 
from China and 5 percent of shipments from Argentina. These new 
requirements are far more extensive than those that are 
required of our competitors, and they are costing the U.S. 
peanut industry hundreds of millions of dollars every year.
    We do not anticipate short-or long-term growth in the E.U. 
or the U.K. until U.S. peanuts are on a level playing field 
with other peanut-exporting countries. As an industry, we are 
struggling to try and replace the E.U. and the U.K. markets for 
the future. Our top trade priority at this time is to improve 
our position in the E.U. and the U.K. That will require 
reduction of the non-tariff trade barrier. The peanut industry 
has been working with USDA's Agricultural Marketing Service and 
the Foreign Agricultural Service on this problem. We need the 
U.S. Trade Representative to prioritize this problem in 
discussions with the E.U.
    Mr. Chairman, we appreciate you and Senator Tuberville, 
along with Senator Hyde-Smith, leading the effort to cure the 
obstacles that peanut growers are experiencing with the non 
tariff barrier in the E.U. and U.K. We believe that the best 
path to resolve this issue is with USTR prioritizing U.S. 
peanut exports in discussions with the E.U. and the U.K.
    I thank you for allowing me to participate today.

    [The prepared statement of Mrs. Thompson can be found on 
page 25 in the appendix.]

    Senator Warnock. Thank you so very much for your remarks, 
Mrs. Thompson.
    Next, Mrs. Meshke.

 STATEMENT OF SHERYL MESHKE, CO-PRESIDENT AND CEO, ASSOCIATED 
            MILK PRODUCERS, INC., NEW ULM, MINNESOTA

    Mrs. Meshke. Good morning, Chairman Warnock and, of course, 
Ranking Member Hoeven. Yes, I am a jackrabbit and very proud to 
be here and visit with the members of the Subcommittee on 
behalf of the dairy farmer owners of Associated Milk Producers. 
I have served as their Co-President and CEO for seven years, 
but today I represent all of the members of the National Milk 
Producers Federation, on which board I serve, and also the U.S. 
Dairy Export Council which works with National Milk in creating 
unified dairy trade policy, principles, and priorities.
    Let us start by talking about America's dairy industry. It 
is an economic force, and it employs about a million Americans, 
adding $750 billion to the U.S. economy; that is about three 
percent of the GDP. Exports underpin U.S. dairy success and 
will support our industry's growth into the future. In fact, 
U.S. dairy exports have grown more than domestic sales in four 
of the last five years. That is an important stat.
    Making global markets accessible is critical to the health, 
and the long-term viability of our industry. As important, we 
are meeting global demand in a more sustainable way. U.S. dairy 
farmers reduced--again, another good stat coming up here--we 
reduced greenhouse gas emissions required to produce a gallon 
of milk by almost 20 percent from 2007 to 2017.
    A science-based approach to feeding the world in a 
sustainable way will be critical to supporting our position as 
a global leader. The U.S. Government must take the lead and 
work with likeminded countries to advance trade and global 
policies that usher in this goal.
    One of the most pressing concerns to share today is the 
industry stress around export shipping. It has been in the 
headlines. Freight rates are soaring while the availability of 
export essentials like containers, drivers, rail access, that 
is plummeting. Supply chain challenges are costing U.S. dairy 
exporters more than $1.5 billion in just last year. On top of 
that, our long-term trade relationships are at risk.
    This complex problem requires a suite of solutions, but let 
me offer a few. First of all, Congress must swiftly pass the 
Ocean Shipping Reform Act. At the same time, the Administration 
can take steps, to resume things such as USDA's weekly 
container and availability snapshot and providing fast-lane 
incentives for exports at port terminals. It is also essential 
for Congress to deal with immigration reform to help the dairy 
industry grapple with our extreme labor crisis.
    In pursuing exports, the U.S. dairy industry faces 
experienced and well-established competitors. They have been 
very active with free trade agreements. The U.S. needs to get 
back into the game. We need to craft comprehensive agreements.
    In the meantime, we need to make full use of our tool box, 
and that includes improving export market access. At a minimum, 
these efforts should lower foreign, most favored nation tariffs 
and secure specific commitments on non-tariff barriers like the 
E.U.'s efforts to monopolize common cheese names.
    We must also ensure our trading partners faithfully uphold 
current trade deals. We greatly appreciate the Administration 
securing a successful verdict in the USMCA's first ever dispute 
panel and now starting a second panel process against Canada's 
continued foot-dragging and inflexibility. The U.S. must insist 
on Canada's full compliance and be prepared to retaliate.
    In addition, we cannot wait any longer for the U.S. 
Government to proactively defend the use of common food names 
against aggressive global efforts by the E.U. to restrict the 
use of generic terms we rely on.
    Finally, the Administration must head off a wave of anti 
import sentiment in the markets that are so key: Latin American 
FTA-partners from Mexico, Panama, Peru, as well as others.
    Chairman Warnock and Ranking Member Hoeven, I appreciate, 
on behalf of my dairy farmer owners, this opportunity to 
highlight the importance of global trade to American dairy 
farmers across this Nation. Thank you.

    [The prepared statement of Mrs. Meshke can be found on page 
42 in the appendix.]

    Senator Warnock. Thank you so very much, Mrs. Meshke.
    Finally, testimony from Mr. Neal Fisher.

  STATEMENT OF NEAL FISHER, ADMINISTRATOR, NORTH DAKOTA WHEAT 
                COMMISSION, MANDAN, NORTH DAKOTA

    Mr. Fisher. Good morning, Mr. Chairman and Ranking Member 
Hoeven. Thank you for this opportunity. My name is Neal Fisher. 
I am the Administrator at the North Dakota Wheat Commission. I 
am pleased to have this opportunity to present some comments 
here today.
    Our North Dakota producers, as Senator Hoeven has already 
outlined, rely heavily on exports and have actually developed 
durable export market relationships which account for half of 
their annual pricing and income opportunity. That is a very big 
part of the wheat industry in North Dakota but also in our much 
more diversified agriculture. When I started this business we 
were largely a wheat State, and now we have a very much broader 
base under us. The diversification is something I think our 
fathers and grandfathers would have wished for.
    Our total annual value of production in North Dakota is 
roughly $10 billion, with a ``B,'' each year. There are four 
pillars; it is corn, wheat, soybeans, livestock, primarily beef 
cattle. We do not raise many peanuts in North Dakota, but we 
have a lot of other very high-value specialty crops like 
potatoes and sugar beets and peas and lentils and things like 
that that make up that very important other 20 percent, so a 
growing diversification there, all dependent, though, on trade, 
and so we are very much a part of that.
    In my earlier years at the Wheat Commission, we were 
struggling to find freight rates that would even get us to the 
West Coast, much less to Japan and the Philippines and places 
like that. Now that is where 70 percent of our goods go. That 
is something that is still a very high cost operation, and our 
earlier commissioners used to say, this is one of our highest--
our transportation is one of our highest production costs. They 
included that with the fertilizer and the fuel bill when they 
were figuring up how their income statement was going to look 
for the banker.
    I think this is an interesting take on that. Those days are 
back with us now even though we have those channels opened up. 
We have some very, very stiff competition in those markets, and 
we have high transportation costs. I think the energy situation 
has also exacerbated that, the Black Sea origins, you know, 
compromised now by, obviously, the geopolitical situations and 
other things that are going on.
    We are in the central part of the country. We have a long 
ways to reach water, and so those freight rates are a big, big 
deal. As fuel goes up, so do the freight rates, whether it is 
here in our own country or getting across the puddle, as they 
say, to those destinations.
    Our goals are to continue to advance as far as we can, so 
market access, enforcement of the trade agreements we have. We 
heard a lot about advancing this agenda of the new nominees. I 
hope that goes well because we have been missing that for some 
time and we need that aggressive approach out there.
    Our involvement in trade policy was sort of tangential to 
our programs with the foreign market development. MAP, and 
those programs of the USDA's FAS, these cooperative programs 
have done a lot for us and have been the backbone of the 
development, so funding that program as well, perhaps not so 
much in the trade policy arena but also the backbone of how we 
move goods, how we promote them into the world market. Those 
are very important aspects of this all for us.
    We have the non-tariff barriers you just heard about. This 
is something that is very concerning because when I started in 
this business we were doing tariff reductions. We had knocked 
down a lot of that, become very successful in that arena, but 
we have since then slipped away. Now we have the non-tariff 
barriers with attacks on commonly used foreign products. Weed 
seeds that have unrealistic limits and those kinds of things, 
and the MRLs, Maximum Residue Levels, tend to take us apart in 
Vietnam and places like that where we are having a great 
success in moving into the South East Asian market, but these 
are the technical issues that continue to come up.
    That shift to non-tariff trade barriers is something we 
really need to address, and these protectionist moves sometimes 
look like they are masquerading as legitimate measures, either 
in increased food security in some areas, sustainability goals, 
or guard against some other threats that sometimes have very 
little basis in science.
    We are pleased to hear about these nominations. We want to 
move that portfolio further ahead. We had seen past 
administrations do quite a bit of work in the area of new trade 
agreements. We think the U.K., not a layup by any means but 
might be one of the most doable prospects, if we can call it 
that. In Africa as well, there are some opportunities there, 
100 million ton grains market there, probably a longer term 
project but something that could move forward on that agenda as 
well.
    The other areas that we have found work that could be done, 
I think, in an effective way, in Indonesia, Malaysia, more of 
this Indo-Pacific area that we have made great success in, 
those are growth markets in our top 10 customers. I think if we 
had a few more resources to work with in MAP, FMD, we could 
move further faster on those kinds of things.
    We are big proponents of value-added and biofuels. In North 
Dakota, we are going to do some more of that kind of work here 
pretty soon. I think balancing our energy portfolio with all of 
the alternatives, whether it is fossil fuels that we are pretty 
good in North Dakota as well, the biofuels aspect. There are 
new technologies here, the new generation. I think this is 
something that is very, very exciting.
    With that, you heard a lot of the same arguments probably 
made by the other witnesses here. I thank you, Mr. Chairman, 
for this opportunity. I will be happy to respond to any 
questions that we might have.

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

    Senator Warnock. Thank you, Mr. Fisher, and thanks to all 
of our witnesses. Your testimony certainly provides a lot of 
insight into the current terrain that our farmers are 
navigating in Georgia and all across our country.
    Now we will turn to a round of five-minute questions from 
each member of the Subcommittee.
    Dr. Munisamy, thank you for your testimony. You have had an 
extensive career working with our farmers and a deep knowledge 
of how they navigate increasingly complex agricultural markets. 
I understand that just last week you traveled across Georgia to 
meet with farmers. As I mentioned in my opening statement, I 
also met with a group of farmers last week in Musella, Georgia, 
to discuss farm stress.
    Do you believe the Biden administration can effectively 
advance the trade priorities of Georgia's farmers without 
Senate-confirmed leadership currently working on the specific 
issues at USDA or USTR?
    Dr. Munisamy. I can give you a one-word answer, no.
    Senator Warnock. Thank you. Given the uncertainty of our 
farmers--given the uncertainty our farmers have faced in recent 
years, from trade wars to COVID-19 supply chain disruptions, 
how would Georgia's farmers benefit from having dedicated 
leadership within the Administration focused on agricultural 
trade?
    Dr. Munisamy. From the trip that I took recently, everybody 
and the farmers that we met, everybody wanted us to be heard--
wanted them to be heard. I think right now career folks are 
talking to many of them. It would be good to have political 
leaders reach out to them and listen to their concerns. You 
heard a variety of them at this point, you know, in this 
hearing, but I think reaching out to them and sitting down with 
them and talking with them will really help set the process 
moving to solve these problems.
    Senator Warnock. Right. Do you agree it would help to have 
these positions filled in order to strengthen our position in 
these larger trade issues?
    Dr. Munisamy. Absolutely. Leadership is needed.
    Senator Warnock. Yes, I agree. I think we need strong 
leadership, particularly in a moment like this. I am glad that 
the Administration has nominated Alexis Taylor for the USDA 
trade spot and that he finally put--we finally put forward Doug 
McKalip to be the USTR Chief Agricultural Negotiator. Let us 
face it. It took too long to get these nominees. I believe that 
they are well qualified, and I hope that we can advance their 
nominations quickly through this Committee. Every day that 
passes without Senate-confirmed leadership is a missed 
opportunity for Georgian farmers.
    Georgia is a national leader when it comes to the 
production of specialty crops like blueberries and peaches and 
melons. Consistently, fruit and vegetable farmers in Georgia 
raise concerns about imports of cheaper seasonal produce from 
countries such as Mexico. According to a 2020 report from 
USDA's Economic Research Service, imports of fresh produce into 
the U.S. increased by $8.9 billion between 2009 and 2019.
    Mrs. Thompson, you know quite a bit about this. Thank you 
for your testimony. How has your blueberry business been 
affected by this flood of seasonal imports?
    Mrs. Thompson. Well, I will tell you, with fresh fruit and 
vegetables, the market situation is really volatile just as it 
is. You know, a lot of us have our prices negotiated with 
retailers almost daily, and it is really based on supply and 
demand.
    In Georgia with blueberries, we used to have times where 
Georgia berries might be the main supply on the market, and so 
we knew that we could maybe make a little bit of a profit 
during those times to kind of help us weather the dips. Well, 
now, according to our sales organizations, the price is just 
staying low because the market is flooded with Mexican imports.
    With us personally, on our farm, when prices get to a 
certain level, there are times where we have to decide whether 
we can even harvest. We provide a fair wage and really good 
working conditions to our harvest workers, but that is 
obviously costly. There have been times when we have lost money 
in order to harvest because we cannot stand to let good fruit 
just sit there and rot, especially when we have neighbors in 
Georgia that have trouble accessing fresh produce at all.
    Senator Warnock. Thank you so much.
    Dr. Munisamy, how has the influx of these seasonal imports 
that Mrs. Thompson refers to harmed the competitiveness of 
domestic fruit and vegetable growers across the Southeast?
    Dr. Munisamy. Let me use the International Trade Commission 
studies to answer that question. They conducted two studies, 
one on squash and the other one on cucumbers. In the case of 
cucumbers, they found that producers are losing revenue up to 
$65 million because of these about average imports, meaning if 
you hold the imports to their average level, not flood the 
market as it has happened in the past few years, then producers 
would get about $65 million more in terms of revenue. This is a 
big one, and it is only for just one commodity, cucumbers.
    It affects prices; it affects income and across all these 
specialty products that we are talking about.
    Senator Warnock. Thank you so very much. Leveling the 
playing field is critical----
    Dr. Munisamy. Yes.
    Senator Warnock [continuing]. to farmers in Georgia and all 
across the Southeast and the country, for that matter.
    Ranking Member Hoeven.
    Senator Hoeven. Thanks, Chairman. Neal, one of the issues 
we are seeing now is backlogs in grain car movements as our 
farmers are working to get wheat and other commodities to 
market. Now recently the Surface Transportation Board required 
Class I railroads to provide biweekly reports on their progress 
for increasing rail service and making cars available. Comment, 
if you will, on the status there, what is being done, and in 
your opinion what should be done to get that squared away.
    Mr. Fisher. Thank you, Mr. Chairman and Senator Hoeven. 
This is something that we are taking very seriously. In fact, 
some of our staff has been working with the STB on what can be 
done there. They are asking them now to report in on what their 
progress is on these issues. I still do not find the STB to be 
tough enough on our transport system sometimes, but I think 
there is opportunity here to--the Grain Dealers Association has 
been involved in this as well, as the folks in your office have 
been very, very helpful in this area.
    I think it is something that we are going to have stay on 
top of because this is one--as I said, our early producers 
talked about this being one of their largest production costs 
or reduction in what that bottom line is when it comes time to 
go see the banker every year. I think this is--it is something 
that we are going to have to stay on top of.
    You know, we went through a period where things were pretty 
well off. We had pretty good service. Then a few weather events 
began to hit. Then COVID hit. I think they are short on crews. 
I do not think they have planned well. Costs continue to go up 
in this arena, and it is something that producers are noticing. 
Any efforts on our behalf is very welcome, and we will be there 
to help with testimony when those times come.
    Senator Hoeven. Right. I am meeting with the CEOs and 
others in the rail industry to try to get them to really make 
this a priority. Any other specific recommendations you would 
have?
    Mr. Fisher. Well, I think in the--when we saw this merger 
coming between the CP and the other railroad, the Kansas 
Southern that they merged with, we saw this as an opportunity 
to interject some other comments, I think, on this one because 
the time was right and we had people's attention with that 
issue. We are going to want to followup on that.
    This has long been one of those high-cost operations that I 
think we fussed about, Kansas rates being cheaper than ours 
years ago, and some of these things are still true. I think we 
have to get balance in that arena and stay on top of it because 
if we do not move this product--we had a little shorter wheat 
crop last year because of the drought, but corn and soybeans 
have to fit into this funnel that we are all addressing. More 
Asian markets and with the demand to China and so on, a lot of 
pressure over there, and this has to work very smoothly. It is 
going to be a very, very interesting topic for us for a long 
time.
    Senator Hoeven. Yes, along those lines, Mrs. Meshke 
mentioned the Ocean Shipping Reform Act, which I sponsored 
along with Senators Klobuchar and Thune, which we have moved 
through the Senate. Talk to me about how that could help with 
some of these shipping bottlenecks, too, and I will ask the 
same question of Mrs. Meshke.
    Mr. Fisher. Well, I think--Senator Hoeven and Senator 
Warnock, this brings new attention, I think, to this. This is 
an area that has been a bit taken for granted. You know, people 
just assume there is ocean freight. We have been in a period 
when ocean freight was, you know, relatively attractive given 
where it has been in some time.
    Now we see these escalating rates. We see all the 
bottlenecks, and there are multiple causes, of course. Drawing 
attention to it is a big part of that battle, and I think 
increasing the awareness, this kind of effort, should help a 
lot in making everyone aware that this is very important.
    Because why? $191 billion in exports are hanging in the 
balance here. We are the only sector in the economy that 
provides a positive trade balance. The only sector in the 
economy. I think that is something that agriculture is risking 
right now when we have these kinds of bottlenecks that slow up 
the inputs coming in, and it is very important that we get our 
products out.
    Again, we have full-size crops coming out this year. It is 
going to be very, very important.
    Senator Hoeven. Mrs. Meshke, your fellow jackrabbit fan 
just showed up. Your thoughts on the ocean shipping container 
act? He was obviously one of the leads on it. Your thoughts on 
it?
    Mrs. Meshke. Appreciate that. I am going to really boil it 
down. Our company, as I shared, is owned by dairy farmers. They 
make processed cheese important to Wisconsin that of late has 
been stalled in China ports for a lot reasons. As we all know, 
the political climate. That is just an example of how it 
directly impacts rural America.
    Swiftly passing that reform act, as I shared earlier, is 
just one part of it. At the same time, the Administration can 
take steps too--again, weekly container availability snapshot, 
providing fast-lane incentives for exports at port terminals. 
It is a suite of solutions that can be added to that.
    Senator Hoeven. Thank you.
    Thank you, Mr. Chairman.
    Senator Warnock. Thank you so very much.
    Senator Grassley.
    Senator Grassley. Thank you, Mr. Chairman.
    I am going to go to something that deals with trade because 
you export a lot, Mrs. Meshke. It seems like this 
Administration is referring to free trade agreements. They use 
the words, kind of a 20th century trading tool. This makes 
maintaining our trade relationships and expanding market access 
for U.S. dairy products even more vital to the strength of our 
domestic cattle and dairy industries and the economic health of 
rural America.
    What more could the U.S. Government do to protect and 
expand overseas market access? Then maybe in the process of 
answering that, you could give me your view on the Indo-Pacific 
Economic Framework if indeed market access is not available.
    Mrs. Meshke. Let us start with maybe three things to 
consider, and this is what is really important on behalf of 
dairy farmers and much of agriculture. We believe that FTAs are 
critical, that we need to get back in the game of establishing 
those agreements, particularly that two-way trade relationship 
with South East Asia, Japan, the U.K. There is a growing global 
hunger for dairy production, and as shared in my testimony, we 
can meet that with the right agreements and the right tools.
    Also important, to look at the tariff and non-tariff 
barriers that stand in our way. Oftentimes, those are more 
silent, but very, very critical.
    As far as your comment about the Indo-Pacific region, I 
would maybe address that with a few items to consider, and one 
would be that comment I made about commitments on common names, 
streamlining regulatory requirements, and then finally, tariff 
agreements such as Indo-Pacific. All of those can help us.
    Senator Grassley. Yes. What I hear from reading about the 
countries that are involved with the Indo-Pacific framework 
setup is that it is a very important step for the United States 
to move forward to do that, but the fact that it does not have 
any trade provisions along the lines of moving toward free 
trade is not going to really serve a very useful function. That 
is what I have read about.
    Mrs. Meshke. We are committed to opening up any trade 
avenues that are possible, and that is a really big statement, 
but in general, that is the guiding principle.
    Senator Grassley. Yes. Hey, you know, so same to you as 
well. You know, we do not have a Chief Agricultural Trade 
Negotiator at USTA and a USDA Under Secretary for Trade. I am 
glad to see that the Administration has made some progress at 
least in nominating what appears to be two qualified people. 
What opportunities do you think American agriculture may be 
missing out on since we do not have these positions filled 
after a year and a half?
    Mrs. Meshke. I am really going to go back to the importance 
of the big picture of trade and open markets and the fact that, 
to speak for dairy, one of out of every six days of milk is 
exported. We need focus on those export opportunities. To 
repeat a stat that I gave earlier in my testimony, that of the 
last five years, four of those years we have seen the most 
growth in exports, not domestic growth, so just very important 
from a big-picture aspect.
    Senator Grassley. Mr. Fisher, this is my last question, but 
in regard to the fact that we are all talking, particularly 
since Ukraine was invaded, about food shortages around the 
world, what will the decreased supply of fertilizer paired with 
increased prices affect world food supply?
    Mr. Fisher. Well, this is a--Senator Grassley, this is, I 
think, a very big concern, and it is related in many ways to 
the geopolitical situation but also our own energy policy. When 
we are looking at fertilizer and inputs, things like that are 
the lifeblood, as we know, of modern agriculture.
    I think there is a--anytime we disturb that situation, we 
are looking at--my son is a very active farmer right now, and 
he is in the process of just finishing up seeding where he can. 
That fertilizer bill is going to be huge this year, but actual 
availability is even more scarier than what you have to pay for 
it, and so I think this is something very serious.
    I think also in a State like our home State, where we are 
good agriculture and we are good at the energy industry, there 
is an awful lot of product that would make good fertilizer in 
the natural gas industry and that sort of thing that is 
available there as well. I think we have to look at all options 
on both sides, on the input side and on our output side, for 
all options, for biofuels, for the--but also, we can produce 
some of our own fertilizer right here.
    Senator Grassley. Yes. I do not have another question, but 
let me just finish with this comment. Everything I have read 
about the 8.3 percent inflation rate we have, 40 to 50 percent 
of it is caused by energy and this President's energy policy. I 
think it is outrageous that we are having $5 gasoline and the 
poor people of this country are the ones that are suffering as 
a result of it, and I think that ought to be taken into 
consideration and just reverse these bad policies of the last 
year that have run the gasoline cost to what it is.
    I yield back.
    Senator Warnock. Senator Thune.
    Senator Thune. Thank you, Mr. Chairman. What he said on 
energy. Thank you and Ranking Member Hoeven for having today's 
hearing focusing on trade priorities and issues that are facing 
farmers and ranchers.
    I also want to thank the panel today. Thank you for being 
with us and sharing your insights. A special welcome, as was 
noted, to Mrs. Meshke, who--it is great to have someone working 
to grow South Dakota's dairy industry and, I might add, a South 
Dakota State University jackrabbit graduate before the 
Committee.
    Let me maybe focus this first question--and it has been 
covered a little bit, but I want to really drill down on it 
because it does deal with the important issue of market access. 
President Biden is attending the Summit of the Americas. The 
White House has announced priorities for the summit that 
include climate change and corruption but not trade agreements 
and investment initiatives. Similar to the Administration's 
Indo Pacific Economic Framework, the President is pushing an 
agenda with our Latin American partners that does not include 
market access to boost investment in two-way trade.
    As China actively makes inroads in the Indo-Pacific and 
Latin America, I should add, through trade and investment 
infrastructure projects, does the U.S. risk losing market 
access opportunities and influence in these key regions without 
active trade engagement? If China makes further inroads in 
these key regions at the expense of America, what longer-term 
impact is this going to have on American producers?
    Whoever wants to take a stab at that. Mr. Fisher, please.
    Mr. Fisher. Senator Thune, I totally agree, and I think one 
of the things that--perhaps if I may go back a little bit in 
time, when we pulled out of the Trans-Pacific Partnership, this 
was one of the things that I was concerned about. I realize it 
was not a popular piece of work, but we did use some of those 
planks in USMCA and other places. Access is what this is all 
about in our trade world. It is what it has always been about 
and any way you can get there.
    I worry about losing traction in part of the Indo-Pacific 
area because I do not see that element in the present 
environment we are in. I look at Africa, and I look at some of 
the things that we had started in that process and we are not 
following up on right now. Latin America is another good 
example, and it has been in the news just lately. There are--we 
are missing opportunities there, and we are allowing, if I 
might say it this way, China to move in and sort of colonize 
some of the otherwise demand that we would be--and the 
relationships that we could be involved in and we simply have 
not been for some time now.
    I agree. I think there are--there is a lot we need to step 
up on in this agenda. In my written remarks, I mentioned that 
with the slowdown and with the lack of the appointments we have 
sort of stepped back from the world arena, and it is very 
troubling to those of us that have made our living all our 
lives pushing for access to markets and capitalizing on that. 
We have 60 to 80 to 100 markets every year for wheat, much of 
it in Asia, much of it in Latin America, and we do not want to 
jeopardize that in any way. We want to expand those roles going 
forward.
    Senator Thune. Thank you. I am going to ask Mrs. Meshke 
that same question, but I will just observe in response to your 
answer I also believe TPP was a good thing. I wish we would 
have been in it, stayed in it.
    My concern is since this Administration has taken over 
there has been no effort at trade promotion authority, no 
effort to do FTAs, and to the degree that there is an Indo-
Pacific Economic Framework it does not address the fundamental 
issues. If we are really serious about competing with China 
economically in that region of the world, most of those 
countries are going to much more naturally align with the 
United States than they are in China. If we are not there, and 
if we are not giving any of these countries an incentive, they 
are going to flow into that orbit.
    This has huge economic implications for agriculture, 
obviously, for other forms of the American economy as well, but 
it also has national security implications in that region. I 
just think that we are missing a huge opportunity, and so I 
appreciate your comments on that.
    Mrs. Meshke, anything to add on that?
    Mrs. Meshke. I would concur that free trade agreements are 
key in reducing non-tariff barriers for trade and for leveling 
the playing field. I would again draw the attention to the fact 
that our U.S. competition--Europe, New Zealand, Australia--they 
are more firmly entrenched in their deals than we are today. We 
have not passed an FTA in about a decade, and that is, again, 
critical to our long-term success.
    Think about the U.K., what a lucrative dairy market that 
could be. South East Asia. There is so much room to grow in 
China and Japan. Again to underscore, we need free trade 
agreements.
    Senator Thune. Yes. Thank you and, again, appreciate the 
investment that you all are making in dairy in South Dakota. We 
think that is a lot of growth potential there.
    Mr. Chairman, my time is expired. I have got a couple other 
questions maybe I can submit for the record, but thank you.
    Mrs. Meshke. Thank you.
    Senator Warnock. Thank you, Senator Thune.
    I think Ranking Member Hoeven will be back in just a 
moment. We are in the midst of a vote, and he is going to vote, 
and then I have got to get to vote and come back. In the 
meantime, as I wait for him, I will go to another question.
    Georgia is a national leader in peanut production, 
producing more than half of all peanuts grown in the United 
States. As I mentioned in my opening statement, I remain deeply 
frustrated that little progress has been made to improve market 
access for our peanut farmers into the European Union. This is 
something Senator Tuberville and I have worked on. We partnered 
on this issue last year, leading a letter that was co-signed by 
17 of our colleagues, urging USDA and USTR to work alongside 
industry stakeholders to address these persistent trade 
barriers.
    Mrs. Thompson, how would increased market access into the 
E.U. benefit peanut farmers and shellers in Georgia?
    Mrs. Thompson. Well, as I mentioned before, exports are 
historically 25 percent of the peanut market, and if we can 
tackle some of these trade barriers in the E.U., it could 
really help provide some certainty. We are in such a time of 
uncertainty when it comes to peanuts and really when it comes 
to all of our crops. You know, we do not know how much our 
inputs are going to cost. We do not know whether our shipments 
can even arrive in the E.U. in a timely manner.
    This aflatoxin non-trade barrier, it really adds to that 
uncertainty. We may send peanuts that we have taken every step 
to make sure are of the highest quality, especially in Georgia, 
only for them to be rejected at the E.U. Then we have to lose a 
third to a half of the value of the product while they are 
recleaned or even reshipped back to the United States.
    Senator Warnock. Thank you so very much. This is an issue 
that I certainly am going to stay focused on and continue to 
hear from all of our stakeholders across Georgia, farmers all 
across our State, who are concerned about this issue. We cannot 
fill these positions soon enough to get this addressed.
    With all of that, I was trying to wait on Ranking Member 
Hoeven. We are in the midst of a vote. With that, all 
questioning is concluded.
    Thank you to our witnesses for being here today and 
providing testimony. This has been an insightful hearing. A key 
message that I heard is that our farmers must have a seat at 
the decisionmaking table on trade. I look forward to working 
with Ranking Member Hoeven and other members of the 
Subcommittee to continue to elevate the concerns and priorities 
of our farmers with the current Administration.
    This hearing was about helping our farmers compete and 
thrive. That is a net benefit not only for them but certainly 
for all of us. Our farmers are navigating increasingly complex 
and volatile markets both at home and abroad, and I believe 
that it is our responsibility to support these farmers as best 
we can and to ensure that their operations are resilient for 
their long-term and short-term economic success.
    To my fellow members, I would ask that any additional 
statements or questions you may have for the record be 
submitted to the committee clerk five business days from today 
or 5 p.m. next Thursday, June 16th. Thank you all.
    With that, this hearing is adjourned.

    [Whereupon, at 12:09 p.m., the Subcommittee was adjourned.]

      
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                            A P P E N D I X

                              June 9, 2022

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                         QUESTIONS AND ANSWERS

                              June 9, 2022

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