[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]
RURAL ENTREPRENEURSHIP: EXAMINING THE CHALLENGES AND STATE OF RURAL
SMALL BUSINESSES
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
JULY 26, 2023
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 118-022
Available via the GPO Website: www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
52-686 WASHINGTON : 2024
HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
BLAINE LUETKEMEYER, Missouri
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
MARIA SALAZAR, Florida
TRACEY MANN, Kansas
JAKE ELLZEY, Texas
MARC MOLINARO, New York
MARK ALFORD, Missouri
ELI CRANE, Arizona
AARON BEAN, Florida
WESLEY HUNT, Texas
NICK LALOTA, New York
NYDIA VELAZQUEZ, New York, Ranking Member
JARED GOLDEN, Maine
KWEISI MFUME, Maryland
DEAN PHILLIPS, Minnesota
GREG LANDSMAN, Ohio
MORGAN MCGARVEY, Kentucky
MARIE GLUESENKAMP PEREZ, Washington
HILLARY SCHOLTEN, Michigan
SHRI THANEDAR, Michigan
JUDY CHU, California
SHARICE DAVIDS, Kansas
CHRIS PAPPAS, New Hampshire
Ben Johnson, Majority Staff Director
Melissa Jung, Minority Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Roger Williams.............................................. 1
Hon. Marie Gluesenkamp Perez..................................... 2
WITNESSES
Mr. Kendell Culp, Vice President, Indiana Farm Bureau,
Rensselaer, IN................................................. 5
Ms. Jennifer Cassaday, Owner, Byrd's Pecan Delights, Adrian, MO.. 7
Mr. Matt Splitter, Owner, Splitter Farms, Sterling, KS........... 8
Mr. Josh Phillips, Owner, Spawn Fly Fish, Ilwaco, WA............. 10
APPENDIX
Prepared Statements:
Mr. Kendell Culp, Vice President, Indiana Farm Bureau,
Rensselaer, IN............................................. 38
Ms. Jennifer Cassaday, Owner, Byrd's Pecan Delights, Adrian,
MO......................................................... 31
Mr. Matt Splitter, Owner, Splitter Farms, Sterling, KS....... 44
Mr. Josh Phillips, Owner, Spawn Fly Fish, Ilwaco, WA......... 42
Questions for the Record:
None.
Answers for the Record:
None.
Additional Material for the Record:
Guam Chamber of Commerce Partners in Progress................ 46
Washington State Microenterprise Association (WSMA).......... 48
.............................................................
Letter from Carter Malloy, Founder & CEO, AcreTrader to Hon.
Roger Williams............................................. 53
RURAL ENTREPRENEURSHIP: EXAMINING THE CHALLENGES AND STATE OF RURAL
SMALL BUSINESSES
----------
WEDNESDAY, JULY 26, 2023
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 10:02 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams
[chairman of the Committee] presiding.
Present: Representatives Williams, Stauber, Meuser, Mann,
Ellzey, Molinaro, Alford, Scholten, Thanedar, Davids, and
Pappas.
Also Present: Representative Moylan.
Chairman WILLIAMS. Good morning. I now call the Committee
on Small Business to order.
Without objection, the Chair is authorized to declare a
recess of the Committee at any time.
I now recognize myself for my opening statement.
Welcome to today's hearing that will focus on the
challenges facing main street in rural America.
I want to thank our witnesses for being here today and I
understand that all of you traveled a long way to share your
stories. There are probably more important things that you
could be accomplishing back home and at work but I am extremely
grateful that you chose to give us your time to tell us about
your businesses and backgrounds so we can hear directly from
all of you.
Entrepreneurs in rural communities are responsible for
bringing life, jobs, and economic advancement on their
hometowns. However, in Biden's America rural entrepreneurs face
a series of unique challenges that make running their
businesses more difficult than they need to be. Small
businesses across America are facing unprecedented economic
challenges, high taxes, and unnecessary regulatory burdens. To
make matters worse, according to the Congressional Budget
Office, inflation in rural areas was over double that in the
urban areas.
Unfortunately, the obstacles do not stop here. Workforce
issues and the inability to obtain affordable capital is making
it more challenging to keep operations moving forward. While
there are certainly headwinds for all rural entrepreneurs, I
remain confident that they will overcome these obstacles.
In the meantime, this Committee will be looking at the
federal resources that are available to rural business owners
to ensure that they are making the intended impact. The
challenges of a business owner in Weatherford, Texas, where I
am from faces very different than those in Washington, D.C.
While no entrepreneur needs the government to be successful, we
must ensure that if we are spending taxpayer dollars to help
our nation's job creators they will be able to be utilized by
all people regardless of where they are located.
So Congress is currently working on the new Farm Bill that
will provide certainty for our nation's farmers and ranchers
for their next 5 years. These businesses feed American and it
is important that we are listening to their concerns as this
bill is being developed.
And I am glad we have some of our witnesses here today that
will be able to give us their perspectives on the challenges
they are seeing in their rural communities. There is no doubt
rural small businesses are resilient and will not stop in the
face of adversity and hardship, and I am confident that their
hard work and unrelenting spirit of all of you and
entrepreneurship that happens our rural small business owners
exhibit can be a shining example for all of our nation's job
creators. And where there are gaps, we need to understand where
federal, state and local assistance programs can help.
So I look forward to our discussion today as we shed light
on the challenges facing rural America while highlighting
success stories that give hope to entrepreneurs across the
country.
So I ask unanimous consent to waive Representative Moylan
from Guam onto the Committee for the purpose of asking
questions in today's hearing.
And without objection, so ordered.
So with that, I will now yield to Ms. Gluesenkamp Perez for
an opening statement.
Ms. GLUESENKAMP PEREZ. Thank you, Mr. Chairman, for holding
this important hearing.
As somebody who lives in rural Washington, the importance
of supporting our rural entrepreneurs is an issue close to my
heart and vital to our economic prosperity. Too often when we
think of places with robust entrepreneurship, rural areas are
left out of that discussion. Yet, small companies are the
foundation of rural economies delivering essential services to
residents fostering job creation and stimulating economic
growth. Unfortunately, rural businesses also often face
disproportionate challenges when starting and scaling their
operations.
In my home county, Skamania County, and many others across
the country, rural businesses lack the capital that is easier
to obtain in major cities, the high-speed broadband connection
that keep them competitive, the clean water that keeps them
healthy, and the workforce to grow their enterprise.
The disparity in rural areas extends beyond just
entrepreneurship--from access to healthcare, to neglected
infrastructure, to food and banking deserts--rural communities
are consistently at a disadvantage. Often, being rural
literally means being further away from some of the essential
services which makes the small and local businesses that much
more important.
If your car breaks down or your phone screen shatters, most
people cannot go 2 or 3 hours in the city to the nearest
dealership or Apple store. Instead, you have to rely on your
local mechanic or electronic shop. And yet, many manufacturers
are trying to stop the ability of these shops to provide basic
services to rural residents, which is why I came to Congress to
support right to repair legislation.
Despite existing resources, rural towns may lack the
support to navigate complex grant programs or interact with
federal agencies and that basic infrastructure is invaluable to
nurturing an entrepreneurial ecosystem that creates economic
growth and resilience.
It is our duty here in Congress to meet the needs of our
rural entrepreneurs and unleash the power of our federal
programs and investments. And we are taking significant steps
to do just that with historic funding for broadband, fiber, and
water system projects under the Bipartisan Infrastructure Law,
energy modernization with the Inflation Reduction Act, and
shifts in focus to place-based local strategies.
Last year's Democratic majority led the way to a brighter
future for rural America. But our work is far from over. My
partners on both sides of the aisle and I are working hard to
make sure that these infrastructure and energy laws are
implemented effectively and that rural areas get our fair
share.
I am especially proud to cosponsor the bipartisan
Supporting Small Businesses in Career and Technical Education
Act of 2023, which would empower hardworking Americans to join
the trades and train them to start their own small businesses.
As we move forward with landmark investments in our
communities, I remain committed to ensuring that rural America
is not left behind.
With that, I would like to thank all the witnesses for
joining us today. We look forward to hearing your testimony.
With that, I yield back.
Chairman WILLIAMS. The Member yields back.
And now I will introduce our witnesses.
Our first witness with us here today is Mr. Kendell Culp.
Mr. Culp is the vice president of the Indiana Farm Bureau
located in Rensselaer. I am from Texas so that is hard to say.
Rensselaer, Indiana. Mr. Culp was also recently elected in 2022
to the Indiana House of Representatives and serves on the U.S.
Department of Agriculture's Technical Advisory Committee. He
previously serve as the Jasper County commissioner, president
of the Indiana Association of County Commissioners, and vice
president of the Indiana Farm Bureau. And we know in Texas the
power of the county commissioner, so you are a big deal in
Indiana. So good job. Mr. Culp is a graduate of Purdue
University. Mr. Culp, thank you for joining us today and we
look forward to today's conversation.
Our next witness with us today is Mr. Matthew Splitter. I
am former baseball player and when I hear splitter it scares me
to death. Mr. Splitter is the owner of Splitter Farms located
in Sterling, Kansas. Splitter Farms began in 1876 when Wilhelm
Splitter moved to Central Kansas. Five generations later, the
family still farms the same land and Mr. Matthew Splitter
returned to the family farm when he was just 24 years old and a
new graduate. Mr. Splitter has served on multiple boards,
including the Central Prairie Co-op Board of Directors and the
Kansas Corn Association Board of Directors, as well as
currently serving on the FCC's Federal Advisory Commission, a
Precision Ag Connectivity Taskforce. Mr. Splitter is a graduate
of Kansas State University. I am a TC Horn Frog. Okay? Where
you earned a bachelor's degree in agriculture, agricultural
operations, and related sciences. He also recently attended
Texas A&M's Executive Program for Agricultural Producers in
2020. So Mr. Splitter, thank you for joining us today, and we
look forward to hearing a conversation with you also.
I now recognize my colleague, Representative Alford from
the great state of Missouri, to briefly introduce his
constituent who is appearing before us today.
Mr. ALFORD. Thank you, Mr. Chairman.
Our next witness here with us today is Jennifer Cassaday.
Ms. Cassaday is the owner of Byrd's Pecan Delights located in
Bates County, Missouri, which I was just at last week with
about I think 50 other small business owners who wanted to come
learn about the Small Business Administration and how we were
making positive changes. She brought along some bourbon roasted
pecans which I may pass around here on the dais and let you
have a few, Chairman.
She founded her business, Byrd's Pecan Delights in 2014,
following in the footsteps of her grandparents who opened a
shop after buying a pecan farm in 1964. Relying on farm fresh
pecans for many of their products, Ms. Cassaday now knows
firsthand the challenges that rural small businesses can face
such as droughts which we are facing today, extreme drought,
rural delivery routes and lack of resources. A lot of people do
not think about these things. In true entrepreneurial spirit,
Ms. Cassaday does not only own and operate Byrd's Pecan
Delights but she also serves as the president of the Adrian
Chamber of Commerce. She is here with her husband, Jeremy, who
is also a small business owner and a Harley rider. Good guy.
Ms. Cassaday, thank you for being a rich part of America's
fabric joining us today, and hopefully we can learn something
from your experiences that we can make some positive changes in
America.
And with that, Mr. Chairman, I yield back.
Chairman WILLIAMS. Representative Alford yields back.
I now recognize Ms. Gluesenkamp Perez to briefly introduce
our last witness appearing before us today.
Ms. GLUESENKAMP PEREZ. Thank you, Mr. Chairman.
I would like to welcome Josh Phillips, the owner of Spawn
Fly Fish, a growing small business in Ilwaco, Washington. Mr.
Phillips started his business at home in 2017 creating lifelike
molded fish heads as lures for flyfishing. He soon acquired a
building in Ilwaco, branched out to kayaks and other flyfishing
equipment, and built an ecommerce brand that is globally
distributed. Today, Spawn Fly Fish is a full-scale brick and
mortar store. Before becoming an entrepreneur, Mr. Phillips was
a substitute teacher and a professional soccer player where he
captained the Portland Timbers second team. You know, we joke
in D.C. and in my office that here on the East Coast they have
marble and museums and on the West Coast at home we have the
woods. And we are very grateful for Mr. Phillips's leadership
in ensuring and fighting for public access to the woods and our
rivers. He is active in his local community and sharing his
rural small business knowledge and experience with other local
small business owners and the high school. He holds a
bachelor's degree in business administration from Gonzaga.
Thank you so much for being here with us today, Mr. Phillips,
and thank you to the rest of the panel. I look forward to
hearing and our discussion today.
I yield back.
Chairman WILLIAMS. Ms. Gluesenkamp Perez yields back. And I
want to thank you for that. And we appreciate all of you again
being here today.
So before we are recognizing the witnesses, we will do some
housekeeping. I would like to remind them that their oral
testimony is restricted to 5 minutes in length. And if you get
a little long you are going to hear me do this (tapping of
gavel). Okay? That means you are done. Okay? And if you see the
light turn red in front of you it means your 5 minutes is
coming up. Okay?
So I want to now recognize Mr. Culp for your 5-minute
opening remarks.
STATEMENTS OF KENDALL CULP, VICE PRESIDENT, INDIANA FARM
BUREAU; JENNIFER CASSADAY; OWNER, BYRD`S PECAN DELIGHTS; MATT
SPLITTER, OWNER, SPLITTER FARMS; JOSH PHILLIPS, OWNER, SPAWN
FLY FISH
STATEMENT OF KENDELL CULP
Mr. CULP. Thank you, Mr. Chairman, and Members of the
Committee. I appreciate the opportunity to be here to speak to
you this morning about the challenges that rural communities
and small businesses are facing. As the Chairman introduced
myself, I am Kendell Culp and I testify before you this morning
as vice president of Indiana Farm Bureau. I am also a Member of
the Board of Directors of the American Soybean Association and
I am proud to represent House District 16 in the Indiana
General Assembly in my first term.
I live and farm near Rensselaer, Indiana. That is a town of
about 6,000 people. That is located in Jasper County in the
northwest quadrant of the state of Indiana. I farm with my
father and my wife and my son on our family farm. We raise
corn, soybeans, beef cattle, and hogs. We also operate Culp
Family Farms meat sales as well as a catering service.
Now, in the past, as you said, I served as Jasper County
commissioner for 18 years, been on our local drainage board,
and served on our county's Economic Development Board. Because
of these past associations, I believe I can offer a unique
perspective to the challenges that we face today in rural
communities.
First of all, our rural communities face several challenges
and the 2020 Census certainly highlighted how dire that
situation is across rural America. Rural communities have seen
a decline in population in the last many years while our
friends in urban and suburban area has seen growth.
According to the 2020 Census, 53 percent of Indiana's
countries lost population which mirrors the exact percentage we
have seen across all of the United States. That is a problem
that certainly must be addressed before our rural communities
begin to disappear.
I am sure it will come to no surprise to the Committee to
know that the workforce challenges are the forefront of every
industry, every community, and every business whether large or
small. Jobs cannot get filled, shops and restaurants are having
to cut back and reduce their hours of operation, and small
business that are so important to rural American in many cases
are closing for good. Now, I have seen this happen in my own
hometown. Last year, two small family businesses closed because
the next generation chose not to move back to their hometown
where they were born to continue on that family business.
Now, in order to attract, small businesses in small
communities need access to reliable broadband. Today, internet
access is a must for small businesses, and without that
reliable connectivity, they will miss out on opportunities
needed to survive and to grow their business.
Now, like several other counties in Indiana, Jasper County
was a childcare desert and young families that needed that
childcare were forced to drive up to 45 minutes to find that
service. Now, with the help of a few local folks, our
communities, local government, and businesses, Appleseed
Childhood Education opened its doors earlier this year to 70
slots for children to be served in our community for quality
childhood education. And really, it showed that if a community
comes together and pools their energy and pools their resources
that we can tackle an issue and come to resolve.
Finally, we must focus also on quality of life amenities.
When potential new families come to communities, they want to
know do we have high quality educational opportunities in your
community? Do we have access to healthcare and emergency
services? Is there adequate and affordable housing in your
community? And do we have the road, water, and utility
infrastructure needed to support those residences and those
business? All these questions must be addressed if we are going
to attract and retain workforce in our communities.
Now, I have identified some of the challenges that we face
in our communities but what can Congress do to help? Well,
first of all, I would encourage Congress to work together and
pass a bipartisan 2023 Farm Bill on time so that we cannot lose
access to the programs that we really need. The Farm Bill
impacts the well-being of all Americans, and while it is not
the fix for everything, the challenges that our rural
communities are facing, the rural development title of the Farm
Bill offers programs that can add tools that communities need
as they plan for future and future growth.
In conclusion, I want to thank you today for the
opportunity to testify. Rural communities are the backbone of
this nation and in many cases agriculture, along with those
small businesses, are the economic drivers of those
communities. If farmers have a good year they are going to
spend dollars in their hometown and that benefits main street
businesses and they will flourish as well. Open discussions
like this will allow us to find solutions to the challenges
that we face. I truly love living and working in my rural
community and it is my greatest honor to serve my constituents
in my district. I look forward to answering your questions
today and discussing some of the challenges of our communities.
Thank you.
Chairman WILLIAMS. Perfect.
I now recognize Ms. Cassaday for her 5-minute opening
remarks.
STATEMENT OF JENNIFER CASSADAY
Ms. CASSADAY. Thank you.
I am here representing businesses in a town of about 1,700
people. Adrian, Missouri is located about 60 miles south of
Kansas City, right on the I-49 border. We are a town of people
who back each other up and support each other every which way
we can. It is a town primarily made up of farmers, teachers,
and other business owners who understand what it means to work
for everything you have.
Business owners in the area work 24/7 to keep their doors
open trying to fulfill a dream. Each one of them have a story
to share about why they became entrepreneurs and why they
continue to strive for success with their business. Each one of
them will probably also tell you that it is one of the hardest
things they have ever done. At least that was the most common
reply I got when I was asking their thoughts on running a
business in 2023.
I first opened my business back in 2014 at a very small
location a few blocks from where it is now. Four years ago I
moved into a building that we renovated because it was located
right off the interstate. I then completely revamped my
business plan. We still sell our pecans that we raise as a
family on about 600 acres of pecan trees, but we also offer a
full breakfast, lunch, dinner menu. We make our own homemade
ice cream. We sell gourmet coffee and it is also a bakery as I
am a certified pastry chef by trade. Within 6 months of opening
at this location, we went up against COVID, followed by supply
shortages, wage increases, and inflation.
At times it feels like the odds are stacked completely
against us as business owners. I recently had to purchase a van
in order to travel an hour to the city to get supplies to
supplement having it delivered because I could simply save
money. I am able to save $300 to $400 a week by doing this but
I have to use up an entire day of not being at my business to
do it.
I will say I love what I do and I am fortunate enough to
have family, friends, community, and not to mention a great
staff that backs up my dreams as if it is their own. Even
though I cannot pay them what they well deserve, and I cannot
afford to offer insurance or other benefits because as a small
business owner there is also no breaks on that unless you have
large amounts of employees.
Our profit margins allow for very little spending because
we also cannot price things where they need to be in order to
take care of everything or else we price ourselves out of the
market. For example, I buy my supplies at the same place
restaurants in Kansas City buy their suppliers but I cannot
sell it on the menu for the same as what they sell it for.
If we drive away our local commerce, then we have to rely
more and more on the outside commerce to come into our town,
which is what our focus has been here lately. Our reality that
we accept and embrace is that if we rely on the population of
1,700 within our town then our businesses just will not survive
right now.
Unfortunately, this means we have to advertise at a large
radius to get more people to travel to come and see us or come
off the highway. This takes billboards and large amounts of
advertising. In the city, the marketing philosophy is how to
bring people off the street, but in rural America the concept
is a bit more broad and it is how do we convince people to
drive the 20, 30, 60 minutes to come to our town or exit off
the interstate. Just having a sign listed under the Food this
Exit, Missouri Department of Transportation charges $2,000 a
year. And it is higher depending on the traffic so it is
usually just larger businesses and chains that can even afford
that. Advertising with travel magazines and similar entities
cost upwards of $1,000 plus a year, and that is a lot of money
when trying to balance daily sales and with the higher cost of
everything. At the end of the day, there just is not anything
left to work with.
We need some barriers to be broken down so small businesses
can succeed and not feel like it is impossible to be
successful. The more sales tax that comes through a small city
the better it can survive. It helps the schools. It helps the
community. It helps those who cannot pay their bills. It helps
on the federal level as well but then it also helps the city to
function and to thrive on its own two feet. And it takes those
tax dollars to do that. We are not fans of big chains but our
small town, even if we were, they would never set up shop
because we do not have the population to support it. That means
the commerce has to fall completely back on small businesses.
And when small businesses cannot survive, small towns in rural
America will continue to fall.
Chairman WILLIAMS. Thank you.
And I now recognize Mr. Splitter for his 5-minute opening
remarks.
STATEMENT OF MATT SPLITTER
Mr. SPLITTER. Thank you, Chairman, and the entire SBA Small
Business Committee.
It is an honor to be here before you today as a fifth
generation farmer from Central Kansas. If I told you that
farming was in my blood I would lie. I was adopted before I was
born so this is kind of living the true American dream.
In 2010, my wife Janna and I had the opportunity to take
over our family farm. My father had just passed away and we
came back to a farm that was 1,200 acres and one seasonal
employee. As we sit here today, we farm over 10,000 acres in
Central Kansas and we have six to eight full-time employees.
As I wrap up in m11th year of full-time farming, we can
reflect back on all the challenges and the success stories that
we have had. Our growth has been contributed mostly to
relationship building. A lot of retiring farmers, neighboring
farmers, and custom work. Lots of sleepless nights and just
lots of prayers got us to where we are today.
I would like to talk a little bit about the challenges, the
opportunities, and the quality of life. There are micro and
macro challenges that face today's young farmers. One of the
largest challenges that face young farmers today is access to
capital. Regulations placed on lending institutions make it
difficult to access necessary funding that allows a small
farmer and a young farmer to plant their crop. With little to
no collateral, the ability to borrow is significant limited.
Other resources, such as USDA/FSA loans are great alternatives
but they are cumbersome and time consuming. In today's fast-
changing markets, time is of the essence. Same is the case for
rural Main Stret and small businesses. Capital is hard to come
by and very complicated to work through. Very cumbersome and
very slow.
Most recently, supply chain issues, inflation, regulatory
uncertainty, and weather--we just came out of the worst drought
that I have seen and I have not been farming very long but it
has been a tremendous drought through Central Kansas--makes
producing the world's safest and most affordable food supply
very difficult.
Inflation continues to wreak havoc on our farm equipment
purchasing and borrowing. Daily, we struggle procuring parts
for equipment, seed, and fertilizer for crops regardless of the
price. We just cannot get them. More specifically, equipment
costs on our operation were up 12 percent from late 2021 to
early 2023. Seed costs were up 7 to 12 percent from 2022 to
2023. Fertilizer prices have fluctuated from 25 to 70 percent
increases year on year. Although prices were up, commodity
prices were also higher. It helped offset some of those costs.
The 2022 growing season was extremely dry. We had 33 percent of
our average rainfall and were unable to raise even our average
production number. Our wheat harvest that we just got out of
about 12 days ago was about 30 to 40 percent of our average. To
me, it feels like some federal regulations are trying to put
family farms out of business while we should be working
together to be the world's gold standard in agriculture.
More challenges that rural Americans face, not just
agriculture producers, are access to healthcare, quality
education, childcare, high speed internet access, quality
housing. The list goes on.
Although there are multiple challenges, there are multiple
opportunities as well. There are great opportunities for
entrepreneurs in rural America. The need for main streets to
stay vibrant and cater to the local economy remain. We need
local businesses where we can shop and socialize without having
to travel out of our community.
With the realization that working remotely is more widely
accepted, moving to rural areas has become more attractive. The
push and implementation of rural broadband access will allow
employees and employers to connect regardless of geographical
location.
In the 2017 Census, the average age of the farmer was 57-1/
2 years old. The land is not going anywhere and the opportunity
still exists for young farmers to begin. Kansas State
University's Office of Farm and Ranch Transition is helping
link beginning farmers with retiring farmers. This program
allows for mentorship while searching for the next generation
to farm. It is a one-of-a-kind program providing young
entrepreneurs a chance to follow their dreams.
Up to this point we have been very proud to say all of our
employees are long-time and lifelong Members of our local
communities. The wages that we pay to our employees stay local.
Their children go to or have gone to the local public schools.
They shop local. Tax dollars stay local. They use medical
services that are local and support may organizations. They are
volunteers in their 4-H clubs, Members of the volunteer fire
department, and they volunteer their time at church. Our
closest friends are doctors, nurses, schoolteachers, engineers,
work in the tech sector, veterinarians, bankers, coaches. My
time is running up. I am going to talk faster. Restaurant
owners, neighboring farmers. But they have all chosen to be in
rural America.
Our county, Rice County, Kansas, has 9,400 people and four
stoplights, one of which works after 6:00 p.m. We are the
epitome of rural America and we deserve recognition.
Again, thank you for inviting me to speak before you and I
look forward to answering any questions and being a resource
for further policy discussion.
Chairman WILLIAMS. Thank you, Mr. Splitter. Great story.
I now recognize Mr. Phillips for his 5-minute opening
remarks.
STATEMENT OF JOSH PHILLIPS
Mr. PHILLIPS. Chairman Williams, Ranking Member Gluesenkamp
Perez, I am delighted to stand before you today and share my
story.
My name is Josh Phillips, and I am the owner and president
of Spawn Fly Fish, a thriving fly shop located in Ilwaco,
Washington. This quaint town over 2,000 miles away embodies the
essence of rural America where challenges are plentiful.
However, my company has committed to not only achieving success
in our community, but also inspiring success in rural
communities nationwide, despite the obstacles we face.
Having grown up visiting Ilwaco my entire life, and moving
there full time several years ago, I have personally witnessed
the struggles endured by its community. Limited housing, scarce
job opportunities, and the subsequent talent drain from rural
areas are all too familiar to us. Driven to make a difference,
I embarked on a journey to bring a growing ecommerce business
to Ilwaco, showcasing the power of hard work and determination.
While our venture focuses on fly fishing, it is our
unwavering passion to the community that has garnered
recognition and success in rural America. Recognizing the need
for stability in rural communities, I seized the opportunity to
create a foundation of support and empowerment using the tools
at hand. Spawn Fly Fish was born out of a deep commitment to
providing exceptional products and fostering a sense of
community among fly fishing enthusiasts.
To ensure the success of our business, we made a commitment
to rural America by building a thriving community around our
brand through a brick-and-mortar storefront. We understand the
significance of supporting local economies and garnering job
opportunities within our community. By sourcing materials
locally and collaborating with other small businesses in the
area, we not only bolster the regional economy but also forge
strong relationships that continue to improve the overall
growth and vitality of rural America.
In addition to our dedication to the local community, we
are also advocates for environmental sustainability.
Recognizing the delicate balance of our ecosystems and the
importance of preserving the natural resources that enable
outdoor recreation, Spawn Fly Fish is dedicated to
preservation. We donate a percentage of profits to conservation
groups and aim to create lifelong stewards of the environment.
Through our unwavering commitment to our rural community,
Spawn Fly Fish has emerged as more than just a thriving
business. We have become a beacon of hope, fostering a strong
sense of community and inspiring success. Our entrepreneurial
spirit exemplifies the resilience and determination that define
our great nation, serving as an inspiration for others in rural
communities. By demonstrating that success can be achieved
outside of urban centers, our small fly shop paves the way for
the revitalization of rural economies and the empowerment of
local talent.
However, life as a small business owner in a rural
community is incredibly challenging. After 6 years, we are
still completely owner-operated without any employees. The lack
of available housing makes it difficult for us to attract
talented staff, and this housing issue also affects us as
owners. To address this, I had to advocate to the local city
council to allow for single-floor occupancy in the commercial
district, enabling one of my partners to move to Ilwaco and
help operate our business together.
The obstacles we face go beyond housing. Our financial
situation is a constant battle, as rural communities often
experience high turnover of businesses and lack of banking
options. Securing simple lines of credit and business loans
becomes a lengthy and challenging process, forcing us to rely
on credit cards for operating expenses.
In addition, essential services such as gas, water,
groceries, internet, and health services are all limited and
come at a premium cost in rural communities. This further
strains our financial resources.
Many rural communities like ours rely on tourism, and many
of these communities' tourism opportunities, including ours,
involve outdoor recreation. At the forefront of recreation in
Ilwaco is fishing. The need for funding and proper management
of these fish populations and the watersheds that they live are
vital to our community's survival. Not only are recreational
activities like fishing experiencing limitations, but the
places where these actives occur--public lands--are being
restricted. Limited access to public land has becomes more of
an obstacle, hindering our ability to fish and recreate in the
places that we love. When someone visits our community to
recreate, every single person in this community wins.
Despite all the challenges, we remain committed to the
future of rural communities. We understand that if we lose the
people who care about these areas, our rural communities will
lose their essence and vibrancy. Therefore, we persist in our
efforts to overcome these obstacles, seeking solutions and
support to ensure the long-term sustainability of our business
and others like it.
In closing, I extend my gratitude to the Committee Members
for your time and consideration. It is an absolute honor to
have the opportunity today to share my experience and offer
insights into what it takes to build, sustain, and inspire
small business in rural America. I am ready to answer any
questions and champion the prosperity of rural communities.
Thank you.
Chairman WILLIAMS. Great job on the timing and great
stories from all of you.
Let me just say you are going to see Committee people
moving in and out. There are a lot of hearings going on so they
will be coming in and out as you see that.
Now we will move to the Member questions under the 5-minute
rule, and I recognize myself for 5 minutes.
As the Chairman of this Committee, I have repeatedly
discussed my personal experiences as a small business owner.
Many people know that I own car dealerships back in Texas but
what they may not know is that I also run a Black Angus calf-
cow operation and pecans. Not nearly as large as yours. And I
can tell you that I know the price of fertilizer and what it
has done. And the struggles that so many people have faced, we
have faced in many cases firsthand that all of you talked about
here today.
So with out of control inflation and a brown bale of hay
that usually runs 40 to 45 bucks is now $95 in a business with
such tight margins, these changes can be detrimental to long-
term success.
So Mr. Splitter, I would like to ask you. Do you have any
examples of how inflation is hurting your farm? And how have
you had to adjust operations to compensate for those higher
prices?
Mr. SPLITTER. Compensation for higher prices--consolidation
in agriculture is just tough. Access to a competitive market is
really tough as well. But as inflation goes, because we are
young farmers, young business, we do not have cash reserves to
go back to. Whatever the interest rate does, it does. We still
have to pull on a line of credit. We are probably doing a
little bit more marketing on our grain side, extending
ourselves out a little bit so we can lock in some grain prices.
Whenever we are making a big purchase of fertilizer, seed, or
chemical, we are offsetting it with a futures price as well on
the board. We are being just more aggressive in that nature.
Chairman WILLIAMS. My second question, over the last few
years business owners across the country have faced economic
uncertainties. We have talked about that. But one thing is
certain; main street is resilient and ready. And I have always
said that small business owners will do whatever they can to
survive and are willing to make tough decisions in order to
keep doing what they love. So unlike the government, the
private sector will find ways to keep their doors open with our
money.
So Ms. Cassaday, as the president of your local chamber in
Adrian, Missouri, a town as you said of less than 2,000 people,
you have a unique perspective on the local business in your
area. So what challenges do you face operating in a rural
community? And what efforts do you take to attract people and
businesses to come to the community?
Ms. CASSADAY. Well, we get together and we do things like
trying to plan events. But really the biggest thing that I
think hurts a lot of us directly is with this inflation. You
know, I have to constantly look at how I am going to price all
of my items on my menu, what we sell. But then you feel like
you are constantly raising prices, raising prices, raising
prices. And then you listen to customers get frustrated at, you
know, well, I could go somewhere else and get this so much
cheaper. Well, we know that but we are kind of backed into a
corner and do not have much option and we are still struggling
to keep our doors open. So I am still not able to price things
where they need to be but----
Chairman WILLIAMS. And it is difficult to pass it on to
customers.
Ms. CASSADAY. It is very difficult to pass it on to
customers right now.
Chairman WILLIAMS. You have got help from both sides here.
Ms. CASSADAY. Yeah, because the inflation is, I mean, they
are hurting our customers.
Chairman WILLIAMS. Yeah.
Ms. CASSADAY. They are paying higher amounts at the grocery
stores and everywhere that they go. So, of course, they are
looking for cheaper items and we cannot compete with the bigger
chains and what they have to offer.
Chairman WILLIAMS. Mr. Culp, as you know, many small
business owners are unaware of the government resources that
are out there or find the application process to burdensome to
even want to get involved in it. What are you hearing from
businesses about this problem about able to access, and what
have you done on the state and local level to bring the
community together to find solutions and create a better
economic environment in Indiana?
Mr. CULP. Well, that is a concern. I hear that over and
over again from small businessmen. I mean, I have participated
on an energy grant program to have energy savings on my farm
and so I had to hire a consultant to do the application for me.
And then there is follow up. Every year there is additional
documents that have to be filed. If you do not go that route of
hiring someone else, if you forget to do that or file that on
time then you are liable to repay all of that and lose your
grant. So that certainly is a big issue. We need to make sure
that there is less of those regulations. And in some cases
there is just not a knowledge that that even exists.
And I can tell you at the state level we do that. We just
passed a budget in Indiana and we have dollars available for
different programs to support and to help the growth of those
businesses. And we think as legislators that we have done our
job and we say, well, we have taken care of that problem
because we have delegated or we have appropriated those
dollars. What we do not do is follow up to see did those
dollars get to where they were supposed to go, to the right
groups, the right communities to help them. And so we are
really relying on others to make sure that the application gets
done and in many cases it does not reach the right location.
Chairman WILLIAMS. Thank you. My time is up.
I now recognize Ms. Gluesenkamp Perez for 5 minutes of
questions.
Ms. GLUESENKAMP PEREZ. Thank you, Mr. Chair.
Mr. Phillips, could you share your experience in finding
capital for your business?
Mr. PHILLIPS. I can. Yes.
As a growing ecommerce brand we have had extreme struggles
finding local banking options. With limited options, we have
turned to credit cards, which every bank in America will sign a
small business up for. This has posed a massive challenge on us
as a small business.
Also, the other need for capital, as a small business we
have not been able to look far out into the future so we have
relied on reactionary options such as online lending platforms
which come at a premium, although turnover is very fast,
further burdening a small business.
Ms. GLUESENKAMP PEREZ. What was the main reason you opted
not to pursue a loan from the SBA?
Mr. PHILLIPS. The main reason is not that I do not
understand how to check each box. The main reason is that as a
small business owner, when we are not doing one task, another
task is being impacted. So for me to check each box means that
the daily operations of our small business are not being
fulfilled, which in turn hurts our small business and does not
allow us to operate the way that we need to to support our
local community.
Ms. GLUESENKAMP PEREZ. Would you agree that more investment
is needed to make the SBA's loan application process more
accessible and straightforward for small business owners?
Mr. PHILLIPS. I would agree, yes, so that we have time to
do what we need to do to survive.
Chairman WILLIAMS. So in the past, so in some parts of your
district I know we can count the number of banks on one hand.
How much harder does the lack of a physical bank make getting
loans and investments for small businesses?
Mr. PHILLIPS. It does make it extremely challenging. We
bank with Chase, and the nearest Chase is over 2-1/2 hours
away. Like you heard earlier, these times that we are not in
the physical location of our small business, again, restrict us
from operating. A day to visit a bank takes 2-1/2 hours one
way, an hour meeting, and 2-1/2 hours back. That day is
essentially over.
Ms. GLUESENKAMP PEREZ. So, when there are just one or two
banks and, you know, a 3-hour drive, how does that affect the
favorability of the loans and fees a client could get, would
you say?
Mr. PHILLIPS. It does not really give us an option as a
small business. Or in turn, like I stated earlier, it lends our
ability to venture elsewhere which in turn is the internet.
Ms. GLUESENKAMP PEREZ. You know, almost every community I
visit--and in my community--housing is the issue we hear over
and over and over from small business owners. Like, we cannot
find housing for the people we need to hire. And so, I thought
your solution was really interesting of lobbying. And you know,
we talked about the headache and the struggle to get your
property rezoned so that you were able to, you know, it is so
funny to go into your business and there is like a coffee cup.
You know, someone is living there. So, I wonder if you could
talk about your experience finding housing, navigating, and the
necessity of, you know, zoning flexibility.
Mr. PHILLIPS. Yeah. Our housing on the coast of Washington
is extremely limited, which has possessed a ton of challenges.
As Ms. Gluesenkamp Perez just stated, a business owner of mine
occupies the back space which was previously unallowed. We had
to advocate for single-floor occupancy to our city council. And
there was a lot of hesitancy against it. But through constant
communication, our dedication to our community, we were able to
get that passed and in turn allow for my partner to move to
Ilwaco to benefit our local community.
Ms. GLUESENKAMP PEREZ. Thank you so much.
Ms. Cassaday, thank you for staying in business. Thank you
for fighting the fight. I know that, you know, you would have a
lot less heartache doing something else. And so thank you so
much.
And I saw on your Facebook page that you are out recruiting
high schoolers and looking for work. And I wonder if you could
sort of talk about the mutual value of bringing in young people
and having meaningful work in their local communities, your
efforts to find them. Just, yeah, talking about your labor
market.
Ms. CASSADAY. Well, when it comes to teenagers, I think I
look at my teen staff as my kids. I kind of become their mom
because this younger generation, you know, they rely on texting
and I have to teach them how to work a landline. So if that
tells us where we are starting at with this. So, yeah. It is
just teaching them a lot of life skills. They do not know how
to count money. You know, we are working through a lot of very
basic things with these younger staff Members.
Ms. GLUESENKAMP PEREZ. Well, thank you so much for doing
that work. The apprenticeships are so necessary and thank you
sincerely to all of our witnesses.
Ms. CASSADAY. Thank you.
Chairman WILLIAMS. Next, I recognize Representative Meuser
from the great state of Pennsylvania for 5 minutes.
Mr. MEUSER. I appreciate that very much, Mr. Chairman. And
certainly, thank you to all our witnesses for making the trip
and being here with us today.
So Mr. Culp, I would very much like to start with you. And
congratulations and everything that you are doing serving as a
representative of the Farm Bureau and many other roles that you
play.
So as far as small business goes, are taxes helpful, higher
taxes? Is that something that helps small business?
Mr. CULP. Not at all, actually.
Mr. MEUSER. It adds cost. It adds cost.
Mr. CULP. No. No.
Mr. MEUSER. Do you think you pay your fair share?
Mr. CULP. Absolutely.
Mr. MEUSER. Okay. So, yeah. And higher taxes make American
businesses and certainly American farms less competitive. And
then you make less because you are paying higher taxes. Then
there is a negative return on that investment since you are
making less because you cannot reinvest in your business, and
therefore, tax revenues will go down.
How about regulations? Have regulations from the federal
government, or state government for that matter, been helpful
to you?
Mr. CULP. Regulations are not helpful.
Mr. MEUSER. Okay. So what about workforce? What do you
think has caused the great decline? I mean, COVID, obviously,
but since then?
Mr. CULP. Well, COVID highlighted it but, I mean, with the
retirement of the baby boomers, and we just do not have the
skilled workforce available. We have issues right now where we
have young folks--a real example is a local drive-in. I got a
call from them at a neighboring town. A local drive-in hires
high school kids. And so I did not realize but there are
regulations on the number of hours they can work depending on
their age and then depending on if it is a school year or not.
And here are kids that are 14, 15, 16 that want to work but
there are government regulations that say they can only work to
9:00 p.m. and so they are not able to.
Mr. MEUSER. So, you know, access to capital has come up
from a few of you. The massive spending that took place over
the last couple of years, did that benefit you? Did you see any
of that money, $5 trillion?
Mr. CULP. No.
Mr. MEUSER. You did not see anything; right?
Energy costs, obviously, that is an added burden. Causes
inflation.
Mr. CULP. Have gone up.
Mr. MEUSER. As did the spending.
And I know broadband is something that we have handled
horribly, both the federal and state government, rural
broadband, so that needs to be micromanaged in order so you
have the right access to it.
Has the federal government, particularly over the last 2
years, done anything--and we have this Farm Bill coming out--
done anything that has been positive for you? And Ms. Cassaday,
I am going to come to you in a second.
Let me just divert to you if you do not mind. You are
chamber president. You have your small business and everything
else. You mentioned insurance. You cannot afford insurance,
small business. There is something called association health
plans, AHPs that used to exist. Farmers used to love them,
particularly in Pennsylvania. But my colleagues on the democrat
side just wiped them out. I mean, democrat governors hate them.
Colleagues here hate them because largely, the only thing I can
figure is they want you to go into Obamacare, the Affordable
Care Act.
Ms. Cassady, comment to me on why you think AHPs, if you
are familiar with them, have been eliminated.
Ms. CASSADAY. I am not super familiar with them.
Mr. MEUSER. Okay. It allows all of your chamber Members to
buy in a group so as their insurance rates, healthcare rates
and such would come down. But they have been eliminated.
Ms. CASSADAY. Right.
Mr. MEUSER. It has really greatly negatively affected small
businesses as well as farms in Pennsylvania.
But just going through the list, has the federal government
over the last couple of years done anything except create
barriers as you mentioned that has been helpful?
Ms. CASSADAY. Correct. Yeah. I mean, we are constantly
combatting all of the inflation. You know, it seems like every
time I turn around there is something else that costs more
money. It is more money. It is more money.
Mr. MEUSER. It is crazy.
Ms. CASSADAY. Which means there is less----
Mr. MEUSER. Crazy.
Ms. CASSADAY. We are doing a terrible job. Right.
Mr. Splitter, let me ask you. You brought up access to
capital a couple of times and then you said regs are putting
you out of business. Hopefully, this Farm Bill, I am sure the
SNAP program, the majority of the Farm Bill, of course, has
positive effects on your business. It needs to be continued. It
is important. None of us argue that. Let's talk about access to
capital. Are you using credit unions? Are you using SBA? Are
you using community banks?
Mr. SPLITTER. We are using a community bank that
specializes in agriculture.
Mr. MEUSER. Do you understand that the SEC, the FDIC and
the Fed want to increase the deposit requirements of these
community banks?
Mr. SPLITTER. We have been made aware of that.
Mr. MEUSER. Yeah, what do you think of that?
Mr. SPLITTER. Thankfully, we are past that point in our
operation but if we had been facing those regulations 10 years
ago, we probably would have had to file bankruptcy.
Mr. MEUSER. Look forward to getting from you, your
testimonies were great, anything at all that you can provide
that we need to stop doing or do a lot better I would love to
see it. Thank you.
Mr. Chairman, I yield back.
Chairman WILLIAMS. I next recognize Ms. Scholten from the
great state of Michigan for 5 minutes.
Ms. SCHOLTEN. Thank you so much, Mr. Chair. And thank you
to our incredible panel of witnesses for being here today.
I am from the great state of Michigan where we have large
swaths of beautiful rural area, especially in my district. So
ensuring that we support rural small businesses is so critical
to me. It is not just about enabling the spirit of
entrepreneurship but making sure small and rural towns have
reliable infrastructure, like broadband internet, water, and
access to childcare. All these things that we have been talking
about today I consider to be the foundations of a critical
infrastructure on which to build small businesses in rural
communities.
Mr. Culp, my first question is for you. In your testimony
you discuss the importance of attracting and maintaining a
strong workforce. Can you talk a little bit more about how
workforce issues compound in rural areas with other issues like
childcare deserts or access to broadband internet?
Mr. CULP. Absolutely. We are located in northwest Indiana.
We are about 45 minutes you could go north or south to a more
metropolitan area. And so we have young families that maybe
come in and they get a job, they interview for the job, they
get a job. Our hospital was a good example of this. And so the
professional that is getting hired is fine to live there. The
spouse comes and says, well, where is the retail? Where is the
entertainment opportunities? Where are the food venues? Right?
Where are the walking paths? And you see all of these quality
of life and quality of place amenities that sometimes are not
there. And if they went 45 minutes either way in our case they
would have an abundance of all of those. And so what happens
then, not only do they want to live there but it is like, oh,
we have a lot more employment opportunities there as well and
you lose those people. They just will not come because you
cannot offer those quality of life issues.
So I would have said 10 years ago, or 15 years ago as a
county official, those really are not county government issues
but I have really changed my tune on that because we have got
to attract people to our communities to live and to work
because we need that workforce whether it is professional or
other. And to get that we are going to have to have things that
attract them. And so the things you have listed certainly fall
into those categories.
Ms. SCHOLTEN. Thank you so much.
Mr. Phillips, my next series of questions are for you. And
I want to talk a little bit about the relationship of water to
your business in particular as well. I am proud to represent
miles of beautiful Lake Michigan shoreline, a year-round angler
myself and serve on the Water Subcommittee on our
Transportation and Infrastructure Committee here in Congress.
We know how important clean water is to so many businesses, but
especially one like yours.
The fish who you rely on for your revenue depend on clean
water. We have got a beautiful map in my office of how far the
boundaries outstretch. I represent a lot of fish. That is the
joke in my office.
What is the best way in your opinion for the federal
government to protect this vital input for the rural small
businesses who need it?
Mr. PHILLIPS. The biggest factor in this is that although I
do make a living on fish, it is not just myself that benefits
from clean water. The entire community surrounding my business
also benefits. When somebody comes to our rural town they gas
their boat up. They stay in a hotel. They eat at a restaurant.
It is not just one individual when it comes to fish. It is the
community at-large when you are talking about communities that
rely on clean water for outdoor recreation. So in saying that,
it is not just about me; it is about our community as a whole
when you are talking about clean water. And knowing that I
think is very important that it is not just about a fly shop in
Ilwaco. It is about everybody.
Ms. SCHOLTEN. Yeah. It is clear you have a firsthand
knowledge, understanding of just the greater economy that a
business like yours supports around it.
And quickly, you know, just as a follow-up, would you have
chosen Ilwaco to locate your business in if its water
infrastructure was polluted, contaminated?
Ms. PHILLIPS. No, I would not have. The ability to get out
and escape, per se, the challenges that we all have as business
owners is something that revitalizes myself, as well as allows
us to market our products to a larger audience, to communities
across the nation.
Ms. SCHOLTEN. Yeah, thank you so much.
I yield back the remainder of my time.
Chairman WILLIAMS. Yields back her time.
And now I recognize Representative Mann from the great
state of Kansas for 5 minutes.
Mr. MANN. Thank you, Mr. Chairman, for the time. thank you
all for being here. And Mr. Chairman, thank you for having this
important hearing this morning.
I represent the big 1st District of Kansas which is 60
primarily rural counties in western, central, and the eastern
part of our state. We have hundreds of thousands of small
businesses in our district. About 80 percent of the folks in
our district work in small businesses. They really drive, as we
know, the economy and certainly the economy in my district.
Mr. Splitter, first question is for you. I have been to
your farm. Great seeing you. Thank you for testifying this
morning. Great to see your wife here as well.
In your testimony you talked about federal regulations and
how they are trying to put family farms out of business and
that we should be working together to be the world's gold
standard for agriculture here in this country. I could not
agree more with you. Can you share more about how regulations
and federal policies have negatively impacted your farming
operation?
Mr. SPLITTER. On our operation, one thing that we always go
back to is trust the science. Trust the experts. When we are
sick at our house we do not go to Google; we go to the doctor.
Ethanol is a big deal for us. We live 6 miles from the local
ethanol plants and what better story can rural America tell
than ethanol production? You know, a green plant is producing
fuel and that green plant can be grown every year, again, and
again, and again. Why are we limiting access to ethanol
production? That just seems mindboggling to me.
I have been trusting the science. EPA regulations on some
herbicides, chemicals that we use. Atrazine in particular is
the most studied chemical of all time and it has been proved to
be safe in the doses and in the volumes that have been set
forth by the EPA. But yet, we routinely, routinely, routinely
bring it up for review. So in our house we trust the science.
Mr. MANN. I could not agree more. And you look at the
history of the chemicals used in agriculture today. Let's trust
the science. Not the political science but the real science.
Clearly, these things are safe. They have been proven over
decades and we need to give some certainty to our ag producers.
You mentioned in your testimony as well about Kansas State
University's Office of Farm and Ranch Transition, their program
which links beginning farmers with retiring farmers in an
effort to find and mentor the next generation of farmers. Can
you speak more about the opportunities this program to young
entrepreneurs and future farmers in your experience interacting
with that particular program?
Mr. SPLITTER. Yeah. That program came into existence
probably about 5 years ago. And we had already gone through two
farm transitions. One after my father had passed away, so I was
never able to be mentored by my father in a formal setting. Of
course, all fathers mentor their children. But it was in 2015,
we were on the verge of bankruptcy and I went to a local farmer
who was not considered competition to me and just asked for
mentorship. That took a lot of swallowing my pride. I did not
know really where else to turn. And so we went into a long-term
relationship where we were able to take over his farm so him
and his wife could retire. That was part of our farm growth. It
was not really a strategy as much as a resource for us to just
grow as human beings and an operation. But that office is doing
exactly what we did. It is matching an older generation, or an
older generation that does not maybe have an heir to come back
to the operation, and instead of going through the community
and asking for applications, it is kind of like a dating
service for farmers. It has worked. The success stories are
just tremendous out of that office.
Mr. MANN. It is fantastic. And I think that is an example
for not just agriculture but all of our small businesses to be
looking at how do we continue them on when there are not heirs
or when the next generation does not necessarily, for whatever
reason it does not make sense for them to carry on.
Last question would be for you, Ms. Cassady. Can you talk
to us a little about access to capital and what barriers do you
face when trying to access capital for your business?
Ms. CASSADAY. There are several barriers. And you know,
even just opening up a business, I have talked with the local
bankers and, you know, we have very small banks in a small
town. And I was told that to get an SBA-backed loan is pretty
well impossible. You will just be drowned in paperwork and it
seems to be never-ending. And so the businesses, if you want to
open up a business you have to get more creative and, you know,
I had to rely on relatives and other people to help back my
business in order to make it come into existence.
Mr. MANN. I think that is great for this Committee to hear,
Mr. Chairman. Here we spend tens of billions of dollars on
these SBA loan programs, yet the regulations and the ability to
access them are so burdensome you are being advised to not even
pursue them.
Ms. CASSADAY. Right.
Mr. MANN. Which is something that, you know, has been a
focus of this Committee and something as Members of Congress we
all need to keep front and center.
Thank you, Mr. Chairman. With that I yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize someone else from Kansas. We have got
everybody from Kansas here today. Ms. Davids for 5 minutes.
Ms. DAVIDS. Well, maybe about half the population because
there is like six of us in the room. Seven, eight. There is
like 10 of us. Half the population.
Thank you, Chairman. And to everyone on the Committee. And
to our witnesses for joining us today.
I am excited to have this conversation, partly because
there are some Kansans here, but also because I serve on both
the Small Business Committee and the House Agriculture
Committee. And so definitely appreciate some of the comments
that we have heard today because as you can imagine there is a
lot of overlap between the two Committees, especially
recognizing that particularly in Kansas we have a lot of family
farms. I think we might have some of the highest numbers of
family farms still in the country. And then in the 3rd District
specifically we have a lot of smaller farms and family-run
small businesses. Certainly, we have already heard from Mr.
Splitter in Lorraine, Kansas, which is actually further away
than Ms.--I am sorry. It is so funny. When I go down to visit
my family in Waynesville, Missouri, I am going to stop by. I am
going to go down 49 and I will stop by your shop, Ms. Cassaday.
So in Lorraine, Kansas, they are having a fifth generation
family farm testifying here today. Mr. Splitter, I really,
really appreciate it because you are certainly highlighting
some of the issues that we talk about a lot on this Committee.
And as we have been discussing the 2023 Farm Bill, I know quite
a bit of the conversation has centered on trying to figure out
how to address the digital divide that exists. And when we
think about the federal government announcing recently
broadband grants from the bipartisan infrastructure law, I was
definitely happy to see that Kansas was going to be one of the
states to get the federal support to improve that middle mile
infrastructure, broadband infrastructure, because if we have
taken anything away from today it is that we have to absolutely
be thinking about this holistically. Everything from supporting
our rural communities through passing the Farm Bill, to
addressing how the operation of a modern farm or agriculture
operation happens. You know, the technologies that are being
used. And I think that we have seen tons of progress over the
past few years to ensuring that all Kansans have access to
broadband but certainly there is still a lot more work to do.
So I am really glad to hear, Mr. Splitter, some of the comments
that you made and then in your testimony I know you have
addressed some of that.
This is for anybody on the panel who wants to respond, but
Mr. Splitter, I would love for you to kick us off here. If you
could talk a bit about how much of an obstacle having reliable,
fast, affordable internet access is to running your operation.
And what does successful implementation of those federal
broadband dollars mean to you? Like, what do you want to see
happen with that?
Mr. SPLITTER. Technology is a huge part of our operation.
Just absolutely huge. Actually, as we have been sitting here
today my phone has just been going crazy because we are 110
degrees and all my equipment is telling me that it is too hot.
So we are communication from the farm in Central Kansas to my
phone in D.C. today telling me the updates, the live updates of
what is happening with some of our equipment today.
We may just be a technology business that is masked as a
farm for how much data that we do. We reconcile everything to
the decimal point and a lot of that is done in real-time on the
fly from the operators in the cab of the tractor, sprayers,
planters, whatever it may be.
We have one person that we can access high speed internet
from and it is not even high speed. There is, and this is a
guess, probably $20,000 worth of investment of hardware on our
end to put a receiver above the tree line and then shoot the
signal back to us and then across our whole operation. Not
every acre but just our farmstead, our 5-acre farmstead.
So broadband is just tremendously important to us on our
operation. And it really freaks out my family when the internet
stops working in the middle of an afternoon. Business cannot
get done. The kids cannot be quiet because their iPads quit.
All jokes aside, it is just tremendously important that we have
access to it. And reliable. Not even access; reliable access.
Ms. DAVIDS. Yeah. And I just realized I took too much time
asking my question. I just really appreciate all of you coming
in. And in a lot of ways, highlighting how complex making sure
that rural communities are being supported can be because of
the multitude of issues that you all are facing. So thank you
so much for being here today and I yield back.
Chairman WILLIAMS. Yields back. I now recognize
Representative Stauber from the great state of Minnesota for 5
minutes.
Mr. STAUBER. Well, thank you, MR. Chair. And I have read
parts of your testimony. To the witnesses, thanks for being
here.
As my colleague from Kansas just talked about, he talked
about broadband and the importance of it.
I just came from a Natural Resources hearing where there
was a piece of legislation that removed the NEPA requirements
for laying broadband in rural American and already pre-
disturbed ground like where wires are already in the ground,
where wires are already on the poles. They are talking about
more NEPA to do that. So you have got electrical wires. Some of
my colleagues on the other side of the aisle want to do a NEPA
review to put broadband wires on an already generated
electrical line. NEPA, 4-1/2 years on average it takes. Can you
wait 4-1/2 years? That is on average. It is more like 9 or 11
or a mine in Minnesota it is 20 years. I do not think you can
wait that long. You want it now. And I think we have the
opportunity with the investment and the need for rural
broadband. I said this, rural America, I represent Northeast
Minnesota. It is rural and it is beautiful. But the
constituents that we serve that are in rural America deserve
the same priority as those living in the metro areas. As rural
business owners, small business owners, you deserve the exact
same attention that somebody does in your bigger cities in your
respective states. No more, no less. But you deserve the same.
It has to be fair. And the frustrating thing for me, and I
think on both sides of the aisle we have democrats and
republicans that represent rural America. There is no daylight
between us that represents rural America.
As my colleague from Kansas just said, we have to get this
done. We have to have the return on investment. And I think
there is an urgent need to do that because we want you to
succeed. Not just give lip service from the respective state
capitals or our nation's capital. We have to make sure that
this investment gets to where it needs to get and soon. Rural
health, your small businesses, rural health, telehealth,
telemedicine, our schools, our grocery stores, our small
businesses like you, our farmers, we need to make that
investment.
Mr. Culp, in your statement you highlighted the decline in
population in rural communities and the importance of reliable
broadband access. How do you believe improved broadband infra
structure can positively impact rural small businesses and
attract new workers to live and work in our rural areas
Mr. CULP. Well, it is going to be vitally important,
obviously, with our workforce issues. And just the
connectivity. You know, we learned during the pandemic that our
home served as our school, as our doctor's office, as our
churches; right? Everything is there. But the connection is
broadband. And I heard them talk about we need to have
broadband focusing on the middle mile, but in the rural areas
we have got to have it to the last mile. Just like when they
brought rural electrification out into the rural areas, the
same thing. In our areas, actually, local government, our
county is working with our local RMC, our electric provider,
and they are providing the broadband. It seems like a natural
entity to do that because they are used to taking those
services out to the last mile. Broadband, obviously, needs to
be just the same priority.
Mr. STAUBER. In your opinion, what is holding up the
successful implementation of rural broadband to make sure that
it is reliable for you?
Mr. CULP. Well, most of it is cost. It is very expensive.
It has a very long payback. You have to remember, if you are
taking it out, you might be running 5 miles of line and maybe
only servicing three or four households. And so it is not cost
effective. And that is where the grant programs come in.
Broadband is one issue that is very unique because you have
federal, state, and local dollars and governments all working
together to collaborate to make sure that we get that broadband
out to the rural areas.
Mr. STAUBER. Mr. Culp, if you go back 70, 80 years, the
U.S. Postal Service said every mailbox mattered. Every rural
farm mattered. They got their mail. Now, we have to look at
this as an opportunity. Every inbox matters.
Mr. CULP. Absolutely.
Mr. STAUBER. You know, that is going to be so important
that we do this in a bipartisan fashion.
So I see my time is up. Mr. Chair, thanks for holding this
hearing. It is extremely important that we hear from the
business men and women that have the boots on the ground. And I
yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize Representative Thanedar from the great
state of Michigan for 5 minutes.
Mr. THANEDAR. Thank you, Mr. Chair. And I want to thank you
and the Ranking Member for all this very, very meaningful
discussions and the witnesses who are here helping.
You know, being an entrepreneur myself, having run small
businesses, knowing the struggles small business owners have in
terms of running their businesses, making payroll every 2
weeks, these discussions are very, very vital. And Chairman, I
appreciate your leadership and the bipartisan nature by which
we are really doing our best to help small businesses.
Ms. Cassaday, in your testimony you discuss the struggles
your business had during the COVID pandemic. Ms. Cassaday, I
see that during the pandemic Byrd's Pecan Delight received a
PPP loan and EIDL loan; is that right?
Ms. CASSADAY. That is correct.
Mr. THANEDAR. How important was this assistance from the
federal government to the survival and recovery of your
business? If you can help me understand.
Ms. CASSADAY. Sure. It was very vital because, you know,
when we shut down, rural areas, I mean, we were told that we
had to go curbside as a restaurant. Well, when you are in a
rural area that was very limited. And so without that
assistance I would not have been able to keep my doors open.
Mr. THANEDAR. Now, do you think there are enough programs
and resources are there to serve everyone who needs such help?
Ms. CASSADAY. Not in the rural areas. I do not think that
the other rural businesses are even aware of anything that SBA
has to offer or, you know, they do not get to take these
classes on marketing or get to understand what all the
different loans are that are available because in SBA, I mean,
the resources for rural areas, it just is not there.
Mr. THANEDAR. And you know, listening to you all, I see
that worker shortages are adversely impacting rural America as
mentioned by you. Finding a reliable and skilled workforce is
essential to rural entrepreneurship, especially in growing
profits and unleashing innovation.
Mr. Splitter, my question to you is do you think reforming
our immigration system can help you attract workers in rural
communities, especially streamlining the visa process for
seasonal workers here on H2A or H2B visas?
Mr. SPLITTER. I cannot speak too much about that.
Currently, we utilize all local employees. We have been very
fortunate to be able to find skilled and quality employees
locally. But I think the H2A program, bringing in helpers,
seasonal helpers, is something that we will be looking at very
closely into the future. So anything to streamline it would be
helpful.
Mr. THANEDAR. While access to capital continues to hinder
small businesses across our country, in rural or in urban
areas, many of the small businesses in my district struggle
with finding capital to grow their business or establish new
small businesses. As a result, finding a solution to this
problem is something we all share on this Committee.
Mr. Culp, what can the federal government do in conjunction
with local entities to provide more access to capital in the
form of loans and grants to small business owners?
Mr. CULP. Well, and besides just small business owners you
have small farmers and small agricultural businesses. So the
farm credit system obviously is a function of the federal
government. Very effective to getting those dollars, those
capital dollars out. I utilize that service and purchases that
I have made as well. I think it is important that when you look
at young entrepreneurs beginning, it is very important that
they have access to capital because they do not have the assets
always to back them up. I know we used in our county, we looked
at using ARPA dollars to start a revolving loan fund for small
startup businesses in our community. And it was met with a lot
of support and enthusiasm. We are not talking about a big
industry being built. Sometimes you just need a few thousand
dollars or $10,000 to get somebody jumpstarted and then over
time you could have a low interest payback. We set that up
working with local financial institutions. And those are the
type of programs I think that you need to institute. But a lot
of those can even be done locally, not at the federal level.
Mr. THANEDAR. Thank you.
And I yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize Representative Alford from the great state
of Missouri for 5 minutes.
Mr. ALFORD. Thank you, Mr. Chairman. Thank you to our
witnesses for being here today. I know you come up here on your
own dime and your own time and I really appreciate your
investment in America.
Rural small businesses know the needs of rural communities
better. And when they succeed, our communities succeed, our
states succeed, our nation succeeds. And I see firsthand. In
Missouri's 4th Congressional District, and I am honored as
Sharice Davids, my colleague from Kansas, to sit on both Ag and
Small Business. We see how these tie together in this symbiotic
relationship. We are working hard on the Farm Bill right now.
It is so important to our rural communities. And sir, you
mentioned rural broadband. We have got to get that right.
The SBA also has an office of Rural Affairs but little
information is available on what that office is doing and how
it is focusing on rural small business. Five years ago, in
April of 2018, the Department of Ag and Small Business
Administration signed a memorandum of understanding to enhance
collaboration. Ms. Bette Brand, former Deputy Under Secretary
for Rural Development was not able to be here today because she
was in a car accident. We are praying for her recovery. She
wrote that the memorandum of understanding strength and
coordination between USD and SBA but we do not know what came
of it.
So this leads into my questions. One of my favorite
questions of all time is Cool Hand Luke. And one of the best
lines is, ``What we have here is a failure to communicate.''
And I think that is what has happened.
Ms. Cassaday, I was in your business a week ago. How many
people did we have there, 40, 50 people?
Ms. CASSADAY. There was, yeah, probably every bit of 45 to
50.
Mr. ALFORD. A lot of them small business owners. And they
were asking, how do we get help?
Have you interacted with anyone from the Office of Rural
Affairs for the Small Business Administration?
Ms. CASSADAY. I do not know about the Rural Affairs. We do
have a location that is located about 1-1/2 hours away from us
and she said that she did have some resources that could help
us.
Mr. ALFORD. That is in Appleton City, the lady?
Ms. CASSADAY. Well, this one is out of Sedalia, actually. I
had a nice long discussion with her but she said that her
funding is so tight that she has a hard time getting out and
even letting people know about the information in the rural
areas.
Mr. ALFORD. I think one of the common themes there from
what I heard and what you were hearing as well is people just
did not know where to turn to for help.
Ms. CASSADAY. That is correct.
Mr. ALFORD. How do they access the information, the
encouragement, and the money? Is that what you heard?
Ms. CASSADAY. That is absolutely what I heard. Yeah.
Mr. ALFORD. Mr. Culp, have you had any interaction with the
Small Business Administration's Office of Rural Affairs?
Mr. CULP. I have not. I did not even know that existed,
actually. Yeah.
Mr. ALFORD. What we have here is a failure to communicate.
How about you, Mr. Splitter?
Mr. SPLITTER. No, I have not.
Mr. ALFORD. How about you, Mr. Phillips?
Mr. PHILLIPS. In terms of Rural Affairs I was not aware.
Mr. ALFORD. Well, we have got to fix that. We have got to
figure out what is going on. And we are going to be working on
that. Next month I will be introducing a Small Business
Administration Rule Performance Report Act. This bill will
require two reports actually. One will be a report from the SBA
on the activities of the Office of Rural Affairs. We are going
to give it another try to see if we can get this information.
And the second report is going to be on what was accomplished
under the memorandum of understanding. I actually pronounced it
correctly this time.
Ms. Cassaday, in your written testimony you talked about
some of the unique challenges you face--rural deliveries and
procuring supplies, having to drive to Kansas City, it takes
you all day. What are some of the other challenges that you are
facing? Because it is you and your husband. I forget how many
employees you have but----
Ms. CASSADAY. I have 11.
Mr. ALFORD. Eleven employees. This is a great business. How
are you keeping it together in Adrian, Missouri with the
challenges that you face?
Ms. CASSADAY. Well, some days not very well and other days
we fare better.
I will tell you that our biggest issue is the inflation and
the cost of supplies. The amount o of money that goes out is my
supplies is my biggest one. My payroll is my next bill that I
pay. They are the two highest things that I am dealing with in
my business.
Mr. ALFORD. Well, I hear that from farmers who are small
business owners, and small business owners like yourself, it is
food, fuel, and fertilizer for our district. And I blame Joe
Biden for that. For demonizing fossil fuels, targeting the
fossil fuel industry, but putting the crosshairs on the backs
of the American people. He has done it. He owns it. We are
going to have to make some changes. We have got to get back to
reducing inflation and making businesses more profitable,
increasing our communication between the SBA, and that is our
job here to make that happen.
Thank you, and I yield back.
Chairman WILLIAMS. I now recognize Representative Molinaro
from the great state of New York for 5 minutes.
Mr. MOLINARO. Thank you, Mr. Chairman. And I appreciate not
only the hearing but the witnesses today.
It is without question certainly that small businesses like
yours, but of course all across this country, have been dealing
with the frontline of great burden, whether it is the high cost
of fuel and electric, inflation, taxes, and labor shortages,
there is little question that all of you just really cannot
catch a break. But you continue to thrive and that is
important.
It is true not only where you are from but where I am from
in New York, I know it is hard to believe but there are rural
parts of the state of New York. A lot of rural parts of the
state of New York, and I represent 11 counties that are both
small cities and mostly rural communities.
In my district, for instance, the average family farm or
average farm is less than 200 acres and farmers are already
dealing with excessively high input costs, labor costs, and in
New York, sadly electric and tax costs. Add to that the rising
cost of diesel and fertilizer and we know agriculture is really
being pounded.
Mr. Splitter, I wanted to jump right in on some of what you
have spoken about. I know that you understand all too well the
challenges that family farms face. You talked a little bit
about that already under our current economic environment. In
your testimony you specifically talked about the difficulties
associated with accessing the farm loan programs and some other
USDA resources.
In your perspective, so we spent a lot of time asking you
generically what are the things that are important to you. What
can we do? What can this Committee do to ensure family farms,
businesses like your own are connected to those resources? I
think you mentioned, maybe it was Ms. Cassaday that said we do
not even know some of these services that exist. What is the
thing this Committee can do to really impress upon SBA to be
more accessible to all of you?
Mr. SPLITTER. I think just going back to that, I did not
know that there was access to any kind of help or assistance
from SBA for farming, for agriculture. Of course, we know about
FSA and USDA and those resources but there was no education to
us or anything out there that would lead me to believe that SBA
was there to help with the agriculture sector.
Mr. MOLINARO. We appreciate that. I think we hear that
consistently. The SBA is a smaller entity in the federal
government but more outreach and more connection with small
business is critically important. If not that also obviously
guarding taxpayer dollars to make sure they get to you and not
to those who seek to defraud the American taxpayer as we
learned more and more about last week.
You all have talked a little bit about access to high speed
internet. I always like to say high speed internet as opposed
to broadband because there are multiple ways to move high speed
internet to communities like the ones you live in and work in
and the ones I represent.
I am proud of serve on the House Agriculture Committee.
This is obviously a major topic of conversation as we tackle
the Farm Bill and we are hopeful that we can continue to
broaden access.
Mr. Culp, in your testimony you mentioned how access to
reliable internet, of course, is a must for small businesses,
not only to thrive and survive but to access new opportunities.
So we can all agree on that. The question generally is how do
we do that? I am proud to sponsor and have introduced the
Reconnecting Rural America Act to ensure rural and
technologically underserved communities have access to reliable
broadband and high speed internet services.
But building off the investment of the last infrastructure
bill, what else can we do? I heard one of my colleagues talk
about NEPA as an obstacle which it is. I know in communities
like my own, providers speak to the high cost of the ready cost
to get poles installed. In states like New York, whatever
regulation the federal government has, New York likes to heap
on about 10 times more than that. What other steps can we take
to broaden access of high speed internet?
Mr. CULP. Well, fortunately, I am from a state that has
really reduced regulation in Indiana but----
Mr. MOLINARO. Well, they must be sending it to us.
Mr. CULP. Even at the local level, and this is the
partnership I talked about earlier, we granted all of our
county road rights-of-way, we granted access to our local
provider to access and to use our rights-of-way to either hang
lines or to bury lines in that with no permitting, no cost at
all. That was something that actually we even started a program
where basically all of that cost, all of that investment is
abated. So that is all taxable property for the local
government. We abated that because we wanted to encourage them,
everything they can do to get that in because whether it is a
farm or local, or a small business, you think about, as
isolated as some of our rural communities are, the way that
they are going to sell their product is to advertise that on
the web. They have to have a website. They have to get that
information out so people have to access that instead of what
used to be we just had our local residents, did business with
them and supported them. We have to think bigger, and to do
that we have to have that broadband and that far-reaching
internet access.
Mr. MOLINARO. I appreciate it. My time is up.
Mr. Chairman, I just would echo one of my colleagues.
Access to high speed internet is sort of the last frontier if
you will that should be accessible to small businesses and
farms and we have got to do more to make sure that happens.
Thank you, Mr. Chairman.
Chairman WILLIAMS. Gentleman yields back.
I now recognize Representative Ellzey from the great state
of Texas for 5 minutes.
Mr. ELLZEY. Thank you, Mr. Chairman, for holding this very
important hearing, and to all of you for spending your own time
and treasure to come up here.
You know, this is an interesting town. I think that is
being pretty generous. As we are having this very important
hearing on the fundamentals of what you do in your businesses
to provide the foundation of life in this country which is
food, there are very few people here paying attention to this
hearing. But there is a line wrapped around the block
downstairs talking about UFOs, which at the end of the day is
not going to feed the population of this country or of the rest
of the world. In a time we have got Russia going back on a deal
on Ukraine, 40 percent of the world's wheat coming from the
Ukraine, they are going back on a deal to provide food for the
rest of the world, it is exceedingly important that the bread
basket of the United States and you all small business owners
and farmers are able to do your job the best you can to unleash
the economy of this nation and feed the rest of the world.
I come from the 6th District of Texas, which is growing
increasingly rural, a lot of farmers and ranchers and business
folks just like you all. And just like you all, they do not
talk a whole lot. You cannot have a business like yours and not
have common sense or efficiencies in order to make a living to
provide for your families and for your communities. So as I
listen to you all, and it is interesting to hear how we talk at
length because we are elected to do so, you all have very spare
words that you use to describe what you do. And that, I think,
represents how important it is. You do not have time to mess
around with flowery words and things like that. You have got a
job to do. So thank you for coming up here and doing your jobs.
So part of the problem of what exists up in this town is
agencies that do not exist to help you; they exist to provide
jobs for people up here in Washington, D.C., who do not know
come here from sic `em about what it is that you do.
So we have heard increasingly in a number of hearings about
the SBA having a noble cause but in reality the regulations
that they follow do not help you do your jobs. And that is why
we rely on small community banks and state agencies that will
help you do your jobs, like in Network Kansas or the original
capital access program in Texas.
So I think that is really interesting. I would like to see
more partnerships with the federal government and the SBA with
the states who know their customers, which is you, to help you
do your jobs. But when we talk about community banks based on
big bank failures on the West Coast, banks too big to fail, we
are going to use a sledge hammer to affect all the banks in the
country, most notably the community banks which keep your
businesses afloat. So there is a mismatch in common sense and
efficiencies from up here in what you do.
So in the 2-1/2 minutes I would have left, Representative
Culp, I would like to ask you a question. And if you are not
ready yet that is just fine and I will go down the road.
What is one thing that you would do, since you are a state
rep, what is one thing you would like to see the SBA or the
federal government do to make your job easier to provide a
living and food for the people that you support?
Mr. CULP. To have a program that offers financial support
for entrepreneurial businesses, small businesses, to make sure
that they can continue to operate in their community.
Mr. ELLZEY. So does that mean less red tape?
Mr. CULP. It would be less red tape and easier access to
that financial support.
Mr. ELLZEY. Thank you.
Ms. Cassaday?
Ms. CASSADAY. Yes. I think that just getting the
information out there to the rural areas. You know, I have
learned over the last couple of weeks that SBA can offer
classes on marketing and helping businesses with their budgets
and they can do these different things but nobody in my town
that I came across was aware that this even existed or was even
a possibility. And I am being told that by funding that, the
offices that we could reach out to, they do not have the time
or the resources to come out to our rural areas unless we
invite them out. But how are we going to invite them if we do
not even know they exist?
Mr. ELLZEY. Got it. And I hear the same thing from my
veteran friends about the VA.
One thing I would like to note, as we talk about broadband,
in my district we do not even have cellular. We do not have
LTE. We do not have 5Gs. In some places it is completely
sparse, much less broadband. So we need to improve our
capabilities to even get cellular out in my district.
So Mr. Splitter, same question to you.
Mr. SPLITTER. Get help to those who need it. I mean, when
we were desperate for help it was not there. The other thing I
think Washington can do is get out of my way. Let me do my job.
You know, let me provide the safest, the most secure, the most
bountiful food supply that this world can see.
Mr. ELLZEY. Well, Mr. Phillips, I was going to ask you the
question. I am about out of time and I think Mr. Splitter hit
that nail on the head.
Mr. Chairman, I yield back. Thank you for your time.
Chairman WILLIAMS. The gentleman yields back.
And I want to say to all of you thank you for being here. I
would like to just say a couple of things. I think one thing I
hope you recognized with this Committee, you do not see it on
TV when you watch Washington but I think you can see there are
things we agree on, that these hearings can be bipartisan. And
I think this has shown that today that we are all interested
and many of us who sit up here are doing a lot of what you are
trying to do and make things happen.
I made some notes. D.C. You know, I always tell people D.C.
can create a job but it cannot create net worth. And that is
what we do as small business owners and you all do. We need to
streamline the SBA. We need fewer regulations. We need to bring
inflation down. We know to do that. Bring costs down. Broadband
we talked about. We need to hire a workforce so we can get the
job done. And we need access to capital. I mean, that is
everything we agree with on this and we are going to do
everything we can to make it happen.
So I would like to thank all of you today for being here,
for your testimony, and for appearing today. We know, as said
earlier, you came on your own time and it is hard to be away
from your business. I would tell you my phone has been ringing
right now. My daughter is back home wanting to talk to me about
my business. So being away is a big deal.
Without objection, Members have 5 legislative days to
submit additional materials and written questions for the
witnesses to the Chair which will be forwarded to the
witnesses. And I want to ask the witnesses if that happens to
please respond promptly on that.
So if there is no other further business, without
objection, the Committee is adjourned. Thank you.
[Whereupon, at 11:33 a.m., the committee was adjourned.]
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