[Senate Hearing 118-373]
[From the U.S. Government Publishing Office]
S. Hrg. 118-373
NOMINATION OF BASIL IVANHOE
GOODEN TO BE UNDER SECRETARY OF
AGRICULTURE FOR RURAL DEVELOPMENT AND
THE HONORABLE SUMMER K. MERSINGER TO
BE A COMMISSIONER OF THE COMMODITY
FUTURES TRADING COMMISSION
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HEARING
BEFORE THE
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
__________
November 30, 2023
__________
Printed for the use of the
Committee on Agriculture, Nutrition, and Forestry
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available on http://www.govinfo.gov/
__________
U.S. GOVERNMENT PUBLISHING OFFICE
56-339 PDF WASHINGTON : 2024
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COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
DEBBIE STABENOW, Michigan, Chairwoman
SHERROD BROWN, Ohio JOHN BOOZMAN, Arkansas
AMY KLOBUCHAR, Minnesota MITCH McCONNELL, Kentucky
MICHAEL F. BENNET, Colorado JOHN HOEVEN, North Dakota
KIRSTEN E. GILLIBRAND, New York JONI ERNST, Iowa
TINA SMITH, Minnesota CINDY HYDE-SMITH, Mississippi
RICHARD J. DURBIN, Illinois ROGER MARSHALL, Kansas
CORY BOOKER, New Jersey TOMMY TUBERVILLE, Alabama
BEN RAY LUJAN, New Mexico MIKE BRAUN, Indiana
RAPHAEL WARNOCK, Georgia CHARLES GRASSLEY, Iowa
PETER WELCH, Vermont JOHN THUNE, South Dakota
JOHN FETTERMAN, Pennsylvania DEB FISCHER, Nebraska
Eyang Garrison, Majority Staff Director
Chu-Yuan Hwang, Majority Chief Counsel
Jessica L. Williams, Chief Clerk
Fitzhugh Elder IV, Minority Staff Director
Caleb Crosswhite, Minority Chief Counsel
C O N T E N T S
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Thursday, November 30, 2023
Page
Hearing:
Nomination for Basil Ivanhoe Gooden to be Under Secretary of
Agriculture for Rural Development and The Honorable Summer K.
Mersinger to be A Commissioner of the Commodity Futures Trading
Commission..................................................... 1
----------
STATEMENTS PRESENTED BY SENATORS
Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan... 1
Boozman, Hon. John, U.S. Senator from the State of Arkansas...... 2
WITNESSES
Gooden, Basil Ivanhoe, Ph.D., of Virginia, To Be Under Secretary
of Agriculture For Rural Development........................... 6
Mersinger, Hon. Summer K., of South Dakota, To Be A Commissioner
of The Commodity Futures Trading Commission for a Term Expiring
April 13, 2028 (Reappointment)................................. 8
----------
APPENDIX
Prepared Statements:
Gooden, Basil Ivanhoe, Ph.D.................................. 32
Mersinger, Hon. Summer K..................................... 34
Document(s) Submitted for the Record:
Stabenow, Hon. Debbie:
Association of Equipment Manufacturers, letter of support.... 38
Rural Community Assistance Partnership, letter of support.... 39
Rural Network USDA, letter of support........................ 40
The National Cooperative Business Association, CLUSA
International, letter of support........................... 42
Commodity Futures Trading Commission, letter of support...... 43
Gooden, Basil Ivanhoe, Ph.D.:
Committee questionnaire, Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report and 5-day letter filed by Gooden, Basil Ivanhoe..... 45-83
Mersinger, Hon. Summer K.:
Committee questionnaire, Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report and 5-day letter filed by Mersinger, Summer K.......84-113
Question and Answer:
Gooden, Basil Ivanhoe:
Written response to questions from Hon. Debbie Stabenow...... 116
Written response to questions from Hon. John Boozman......... 117
Written response to questions from Hon. Amy Klobuchar........ 119
Written response to questions from Hon. Michael F. Bennet.... 121
Written response to questions from Hon. Peter Welch.......... 122
Written response to questions from Hon. John Fetterman....... 123
Written response to questions from Hon. John Hoeven.......... 124
Written response to questions from Hon. Charles Grassley..... 125
Written response to questions from Hon. John Thune........... 127
Mersinger, Summer K.:
Written response to questions from Hon. Debbie Stabenow...... 128
Written response to questions from Hon. John Boozman......... 128
Written response to questions from Hon. Michael F. Bennet.... 130
Written response to questions from Hon. John Fetterman....... 131
Written response to questions from Hon. Cindy Hyde-Smith..... 132
Written response to questions from Hon. Tommy Tuberville..... 133
Written response to questions from Hon. Charles Grassley..... 133
NOMINATION FOR BASIL IVANHOE GOODEN TO BE UNDER SECRETARY OF
AGRICULTURE FOR RURAL DEVELOPMENT AND THE HONORABLE SUMMER K. MERSINGER
TO BE A COMMISSIONER OF THE COMMODITY FUTURES TRADING COMMISSION
----------
Thursday, November 30, 2023
U.S. Senate
Committee on Agriculture, Nutrition, and Forestry
Washington, DC.
The Committee met, pursuant to notice, at 10 a.m., in room
328A, Russell Senate Office Building, Hon. Debbie Stabenow,
Chairwoman of the Committee, presiding.
Present: Senators Stabenow [presiding], Brown, Klobuchar,
Bennet, Gillibrand, Smith, Warnock, Boozman, Hoeven, Ernst,
Hyde-Smith, Marshall, Tuberville, Braun, Grassley, Thune, and
Fischer.
STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR FROM THE STATE
OF MICHIGAN, CHAIRWOMAN, U.S. COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
Chairwoman Stabenow. Good morning to everyone. I call this
hearing of the U.S. Senate Committee on Agriculture, Nutrition,
and Forestry to order.
Today, we are considering the nominations of Dr. Basil
Gooden, of Virginia, to be Under Secretary of Agriculture for
Rural Development, and the Honorable Summer Mersinger, of South
Dakota, to serve a second term as a Commissioner of the
Commodity Futures Trading Commission (CFTC). Both of these
nominees were raised on farms and understand the needs of
farmers, ranchers, and rural communities.
I have three goals for the farm bill: keep farmers farming,
keep families fed, and keep rural communities strong, and the
role of Under Secretary of Agriculture for Rural Development is
essential to all three. For the more than 46 million people who
call rural America home, the USDA's Rural Development mission
area is a pathway to revitalizing their communities, creating
new jobs, and improving their quality of life.
As we know, the climate crisis and a changing economy are
placing significant pressures on rural communities. Addressing
these challenges will be no small undertaking, but I know that
Dr. Gooden is up to the task.
Dr. Gooden has a wealth of experience. He currently serves
as the Director of State Operations for USDA Rural Development.
He previously served as the third Secretary of Agriculture and
Forestry for the Commonwealth of Virginia, the Virginia State
Director for Rural Development at USDA, and as the Chief Deputy
Director of the Virginia Department of Housing and Community
Development.
Perhaps most importantly, Dr. Gooden understands the needs
of rural America because he is from rural America. He and his
family still own and operate a cattle farm in his native
Buckingham County, Virginia.
The Commodity Futures Trading Commission also plays an
essential role in our economy by stabilizing costs to feed our
families and power our homes. Derivatives markets provide
farmers and producers with tools they need to manage their
business risks as they face extreme weather events and
implement more climate-smart agricultural practices.
The derivatives markets are complex and constantly
evolving, so the CFTC's work to safeguard market integrity has
never been more important. The hardworking agency staff cannot
do their jobs unless Congress does its job and provides the
CFTC with sufficient, reliable funding.
We must also ensure that that our financial markets are
fair for all customers, not just the most sophisticated. This
principle extends to the digital asset market. As Congress
considers how to regulate digital assets, we will need to lean
on the experience of the Commission to make sure we get it
right.
With that, I would like to welcome back Commissioner
Mersinger. Hailing from a long line of Midwestern farmers and
ranchers, she knows firsthand that agricultural commodities are
the backbone of our economy and understands the importance of
well-functioning derivatives markets.
As the sponsor of the CFTC's Energy and Environmental
Markets Advisory Committee, she hears directly from energy
producers and consumers about the challenges of modernizing our
power grid and transitioning to clean and renewable resources.
With this experience, Commissioner Mersinger is well suited
to help lead the CFTC.
Dr. Gooden and Commissioner Mersinger are both extremely
qualified for the roles to which they have been nominated. I
look forward to supporting their nominations and working
closely with them once they are confirmed. I will note that
they both have received letters of support from multiple
stakeholders, and I ask unanimous consent that these letters be
entered into the record. So ordered, without objection.
[The letters can be found on pages 38-44 in the appendix.]
Chairwoman Stabenow. With that I will turn to my friend and
Ranking Member, Senator Boozman, for his opening remarks.
STATEMENT OF HON. JOHN BOOZMAN, U.S. SENATOR FROM THE STATE OF
ARKANSAS
Senator Boozman. Well, thank you, Madam Chair, very much,
and today, as has been said, we are here to meet and listen to
Dr. Basil Gooden, President Biden's nominee to serve as Under
Secretary of Agriculture for Rural Development, and the
Honorable Summer Mersinger, who is being nominated as a CFTC
Commissioner. I want to thank both of you for being here, and
we appreciate your service. Both of you all have excellent
reputations.
As the son of a farmer with roots in rural Buckingham
County, Virginia, Dr. Gooden possesses a passion for rural
communities that has underpinned his distinguished career. When
he and I spoke earlier this week in my office, he told me story
of his father dropping him off as a freshman at Virginia Tech,
and telling him not to return home to the farm. He also
reminded me that Virginia Tech had beat Arkansas in a bowl
game.
[Laughter.]
Senator Boozman. His dad told him not to return to the
farm. Instead, his father recommended he go where the jobs and
opportunity exist. It is understandable that comments like
these would hit hard for a young man leaving home for the first
time, and we appreciate that you have spent your career making
opportunities for people to go back to the farm.
Dr. Gooden draws upon these experiences in his current role
as Director of the State Rural Development Operations at USDA.
Throughout his career, Dr. Gooden has shown a willingness to
work across party lines in the State of Virginia, having served
under both Republican and Democrat Governors, most notably as
the Secretary of Agriculture and Forestry for the State of
Virginia.
If confirmed, Dr. Gooden will be charged with the critical
mission of improving the economy and quality of life in rural
America through three agencies: the Rural Utility Service, the
Rural Housing Service, and the Rural Business Cooperative
Service.
Much of rural America lacks basic necessities such as clean
drinking water, sanitation, broadband, health care, and
childcare, among others. Over the last decade, population
decline has hit rural communities hard, compounding the
difficulty of ensuring access to many of these necessary
services. As residents leave for urban and suburban areas and
municipalities lose access to tax dollars needed to improve
water and electric infrastructure, cooperatives are asked to do
more with less while maintaining affordable rates.
Dr. Gooden, I trust you will draw upon your previous
experiences and familiarity with rural Virginia to represent
Americans well and work tirelessly to advance their interests.
Turning to Commissioner Mersinger, she has served as a CFTC
Commissioner since 2022, and before that served in other roles
at the agency. That experience, along with her agricultural
background, makes her especially qualified for this role. I
especially enjoyed her visit to Arkansas last year where she
got to meet with various Arkansas agriculture stakeholders.
Through a pragmatic, principles-based approach, the CFTC
has built and implemented constructive, workable regulatory
frameworks for markets to function efficiently. Derivates
contracts served as resilient risk management tools because the
CFTC implements comprehensives rules, diligently polices the
cash and derivatives commodity markets, and protects market
participants.
As the sponsor of the CFTC's Energy and Environmental
Markets Advisory Committee, Commissioner Mersinger has
championed resiliency of agriculture and energy markets, which
are essential risk management and price discovery tools for
those who feed and clothe us, and who provide reliable energy
sources necessary to power our daily lives.
Commissioner Mersinger has also led the call for regulators
to deliver clear guidance in a timely manner in order to reduce
risk. I have appreciated your perspective on no-action relief
and your recognition that while no-action relief is a good
thing, extending it over and over again without fixing a broken
rule creates risk and uncertainty. I applaud Commissioner
Mersinger for calling to codify repeatedly extended no-action
relief, which ultimately would reduce uncertainty.
I also hope that when the agency is going to extend no-
action relief, it makes that decision sooner rather than later.
Waiting until the last minute to extend relief leaves market
participants guessing and creates risk, especially in times of
volatility.
Finally, Commissioner Mersinger has also appropriately
recognized the global nature of derivatives markets and the
importance of open markets. She appreciates that barriers to
market access reduce liquidity, increase hedging costs, and
weaken market resiliency.
Commissioner Mersinger is a champion for agriculture end
users and ensuring the derivatives markets continue to serve as
a viable risk management tool for this important constituency.
I look forward to supporting her nomination.
In closing, I am glad that we can hold this hearing today,
and I look forward to getting you two confirmed as soon as
possible.
Thank you, Madam Chair.
Chairwoman Stabenow. Thank you so much. Before introducing
our two witnesses I would like to turn to Senator Grassley, who
I think has some comments that he would like to make.
Senator Grassley. Yes. Madam Chairman, I ask for a point of
personal privilege. I am only going to be here just for a short
period of time because of a long agenda on the Judiciary
Committee now meeting. I told the nominees I would submit my
questions for answer in writing.
I would like to talk about a member of my staff who has
been working with you all here on this Committee for a long
period of time. I would take a moment to commend a member of my
staff, Joe Gilson, who is leaving my office for greener
pastures after four years with my office. I hate to lose Joe
has he provides me excellent guidance on ag, energy,
environment, and trade policy. Joe is a native of the farming
community of Prairie City, Iowa, so he came to my office
knowing a lot about agriculture, or like I like to say, with a
bit of dirt under his fingernails.
Joe's time at Simpson College beefed up his interest in
agriculture. During his four years in my office Joe rolled up
his sleeves and got to work, holding countless meetings here
from Iowans, crafting legislation to help family farmers and
independent cattle producers, and promoting biofuels.
I want to thank Joe for all of his hard work for the family
farmers of Iowa and all of the people of Iowa, and we wish you
well, Joe, in your next assignment. Thank you very much.
Chairwoman Stabenow. Well, thank you, and Joe, why don't
you stand up so we can give you----
[Applause.]
Chairwoman Stabenow. Wonderful. We wish you the best.
All right. Our first nominee is Dr. Basil Gooden, and as I
indicated before, Dr. Gooden is currently the Director of State
Operations for Rural Development at USDA. Prior to this he
served as Secretary of Agriculture and Forestry for the
Commonwealth of Virginia and the Virginia State Director for
Rural Development at USDA. Dr. Gooden has also served as the
Chief Deputy Director of Virginia Department of Housing and
Community Development, an Extension Specialist at Virginia
Tech, and as a County Committee Advisor for USDA Farm Service
Agency.
Welcome, Dr. Gooden, and I now will turn to Senator Thune,
who will introduce Commissioner Mersinger.
Senator Thune. Thank you, Madam Chair, both you and Senator
Boozman for having this very important nominations hearing, and
I am very pleased today to be able to introduce to this
Committee again Commissioner Summer Mersinger, who has been
nominated to serve another term as Commissioner at the CFTC.
I have had the privilege of knowing Summer for I want to
say going on 25 years now. She grew up in a small town in South
Dakota, as has been noted, Onida, South Dakota, where her
family continues to run a diversified row crop operation. She
went on to study political science at the University of
Minnesota. After she graduated she moved to Washington, DC, to
work on my staff in the U.S. House of Representatives, and
after stints on my campaign in the private sector she came with
me to the U.S. Senate to serve as a member of my staff there.
While serving in the Senate--and I think this speaks to her
work ethic--she was working full-time in our office in the
Senate, going to law school, got her law degree in 2007 from
Catholic University's Columbia School of Law, and started a
family. She was raising kids, going to law school, and working
full-time in the U.S. Senate, and in every circumstance did it
with professionalism, excellence, and integrity.
I am delighted to be able to be here today to introduce her
to the Committee. She has worked in the private sector at the
Smith-Free Group, worked on a range of issues from
cybersecurity to tax policy. She joined the CFTC on Chairman
Tarbert's staff, as Director of Legislative and
Intergovernmental Affairs and then went on to serve as then-
Commissioner Stump's Chief of Staff, and then last year the
Senate unanimously confirmed Summer's nomination to serve in
the CFTC Commissioner role, which she holds today. I hope we
will move swiftly to confirm her reappointment to this
important position.
During her short time at the CFTC, she has been an active
Commissioner. She leads the Energy and Environmental Markets
Advisory Committee. She is also the only current Commissioner
who comes from a farm family, which gives her a unique
perspective on the importance of agriculture markets for the
livelihoods of farmers and ranchers across the country.
As you noted, Madam Chair, many ag groups across the
country recently voiced support for Summer's nomination, and I
think you have already asked consent to submit those letters
for the record, but I would reiterate that request.
Summer is a critical thinker. She is a problem solver. She
is the, I would say, consummate example of professionalism. She
will approach issues with an open mind. She is fair. She is
honest. She is a woman of integrity. I think we are very
fortunate that she is willing to continue serving in this
important role at the CFTC.
I know her husband Pat who is here today and her four
children, Sienna, Sydney, Wyatt, and Drake, are all here as
well, and I know they are very proud of her, as am I, and all
of South Dakota.
Summer, congratulations on your nomination. I look forward
to considering your reappointment and working with my
colleagues on this Committee and in the Senate to ensure that
your confirmation moves forward. Congratulations. It is great
to have you back.
Chairwoman Stabenow. Well thank you, Senator Thune. Yes,
absolutely.
First, Dr. Gooden and Commissioner Mersinger, we have a
couple of questions to ask, and we need to administer the oath.
If you would stand and each raise your right hand.
Do you swear or affirm that the testimony you are about to
provide is the truth, the whole truth, and nothing but the
truth, so help you God?
Dr. Gooden. I do.
Ms. Mersinger. I do.
Chairwoman Stabenow. Thank you. Second, do you agree that
if confirmed you will appear before any duly constituted
committee of Congress if asked to appear?
Dr. Gooden. I do.
Ms. Mersinger. I do.
Chairwoman Stabenow. Thank you very much.
Your testimony, as you know, will be made a part of the
record. You can be seated. Thank you so much. We will now turn
to Dr. Gooden for your comments.
STATEMENT OF BASIL IVANHOE GOODEN, Ph.D., OF VIRGINIA, TO BE
UNDER SECRETARY OF AGRICULTURE FOR RURAL DEVELOPMENT
Dr. Gooden. Thank you, Chairwoman Stabenow, Ranking Member
Boozman, and members of the Senate Agriculture Committee. Thank
you for the opportunity to be with you today and your
consideration of my nomination.
I also want to thank my lovely wife of more than 30 years,
Susan, and our daughter, Caper, who are both here with us
today. I want to acknowledge and thank my six siblings for
their support and encouragement, and I want to acknowledge my
parents, Allen and Christine Gooden. Both of my parents were
educators, my mother a home economics teacher and my father, an
elementary school principal. Their influence has had a profound
impact on my life and continues to guide me today.
I am honored and humbled to have been nominated by
President Biden to the position of USDA Under Secretary of
Rural Development. I sincerely appreciate the support of
Secretary Vilsack, and the support and friendship of Deputy
Secretary Xochitl Torres Small, and former Deputy Secretary Dr.
Jewel Bronaugh. I also want to thank the many farmers,
ranchers, and landowners that I have worked with over the years
who continue to provide insight and advice to this very day.
I am a proud product of rural America. My family and I own
and operate a beef cattle farm in Buckingham County, Virginia.
There I learned the lessons of hard work, responsibility, and
being a grateful steward of our land and environment. Down the
road from our family's farm, my grandparents owned and operated
a small country store that served our rural community for
nearly five decades. Spending time there as a kid, I saw
firsthand how the country store nurtured a sense of community.
Looking back, I realize that this was far more than just a
store; it was a vital institution in sustaining the health,
social, and economic well-being of our rural community.
As Ranking Member Boozman indicated, when my parents took
me to college to attend Virginia Tech, my father gave me some
profound advice. He told me to ``study hard,'' ``get good
grades,'' and ``don't plan to come back to the country when you
graduate.'' He said, ``There are no opportunities there, so you
go to where the jobs are.''
His words really stunned me and they stick with me to this
very day. Throughout my career I have worked to level the
playing field for rural Americans so that rural parents and
their children have the same opportunities and quality of life
as people in non-rural areas.
I had the honor of serving as the third Secretary of
Agriculture and Forestry for the Commonwealth of Virginia.
There I worked with farmers, ranchers, landowners, and rural
businesses across Virginia and across the country to advocate
for and promote agriculture and rural businesses. In this work,
I saw firsthand the rich diversity of rural America. I got the
opportunity to travel the back roads of Appalachia, visit many
small towns of the Black Belt, and many Tribal communities in
the Midwest. Here I recognized and appreciated that rural
America is not monolithic. Rural communities have their own
unique strengths, needs, and assets.
I have had the privilege of working in Rural Development in
two different capacities. First, I served as the State Director
in the Commonwealth of Virginia, and now I currently serve as
Director of State Operations. I want to acknowledge that Rural
Development has an outstanding, very knowledgeable work force
that is dedicated to our mission in rural America.
If I have the honor of being confirmed, I will work every
day to advance the top priority of promoting rural livability.
We will do this at Rural Development by ensuring that our
program applications are easier for our customers to access and
complete; better using technology to streamline our work;
supporting and strengthening our work force; and building our
partnerships to better deliver and leverage resources
throughout rural America. Through these priorities, we will
continue to work in advancing racial justice, equity, and rural
prosperity.
Across America, in every State, very successful people in
every career field imaginable were raised in rural communities.
I am committed to making sure that rural communities do not
just produce talent that is invested in cities but they are
also able to directly reap the benefit from the values, work
ethic, and community spirit that rural communities have so very
well cultivated. Like my grandparents and their country store,
I am committed to promoting community connections that both
matter and have a vital impact on the betterment of our
society.
Again, thank you for your time today and I look forward to
answering any and all questions you may have.
[The prepared statement of Dr. Gooden can be found on page
32 in the appendix.]
Chairwoman Stabenow. Thank you so much.
Commissioner Mersinger, welcome back to the Committee.
STATEMENT OF THE HON. SUMMER K. MERSINGER, OF SOUTH DAKOTA, TO
BE A COMMISSIONER OF THE COMMODITY FUTURES TRADING COMMISSION
FOR A TERM EXPIRING APRIL 13, 2028 (REAPPOINTMENT)
Ms. Mersinger. Chairwoman Stabenow, Ranking Member Boozman,
and members of this Committee, it is an honor to sit before you
today as a nominee for a full, five-year term as a Commissioner
of the Commodity Futures Trading Commission. I am incredibly
grateful to Senate Minority Leader Mitch McConnell for
recommending me and to President Joe Biden for renominating me
to serve as a Commissioner. On the heels of the Thanksgiving
holiday, I count this honor as one of many blessings in 2023.
As we continue to count our blessings during this holiday
season, I want to take a brief moment to reintroduce those
blessings in my life that are most precious to me, my husband,
Patrick, and my four children, Sienna, Sydney, Wyatt and Drake,
who are all joining me today. My four children are my live
wires. They keep me on my toes, and I am alert for anything.
While they are my live wires, my husband is my grounding wire.
He makes sure I do not short circuit and completely burn out
from the many power surges we experience as parents of two
teenage daughters and two preteen boys.
I also want to mention the love and support I receive from
my parents, my siblings, and my many other family members who
could not be here today but are joining us virtually. You have
all blessed my life in so many ways.
My list of blessings would not be complete without
mentioning my rock-star staff: Chris Lucas, Terry Arbit, Libby
Mastrogiacomo, LaTasha Pate, and my two student interns Tim
Achinger and Izzy Mcilvenna.
To all of the impressive staff at the CFTC, whether in
Chicago, Kansas City, New York, or D.C. office, thank you.
Thank you for your hard work, for your dedication, your service
to the people of the United States. I fully recognize that I
cannot do this job without you, and I am blessed to call you
all colleagues.
Blessed does not even fully explain how I feel when I look
back over the journey that led me here. I am eternally grateful
to the leadership of my very first boss, Senator John Thune.
Senator Thune, you have always demonstrated how to be a leader
with a strong moral compass; how to do the right thing, when it
is the hard thing; and how to always remember where you came
from. You also taught me how to be a humble servant to both God
and country. Thank you. I wish I could also mention every last
one of my former coworkers from Team Thune. They have all
become my second family. You all know who you are, and you all
know how important you are to me.
Finally, to my fellow CFTC Commissioners, what an honor it
is to serve among such a distinguished group. Russ, some days I
am convinced you have the hardest job in Washington, but you
always manage to lead with fairness, patience, and respect. To
Kristin, Christy, and Caroline, I am still in awe of all of
you. You inspire me daily, and I am blessed to not only call
you my colleagues, but my dearest friends.
Although only a year and eight months have passed since I
last appeared before this Committee, it feels like a lifetime
of experiences have blessed my term as a CFTC Commissioner. The
term I served has prepared me and energized me to continuing
this role for another term, if it is the will of this Committee
and the U.S. Senate.
As a Commission, we have demonstrated what can be
accomplished when we work together in a bipartisan manner. In
total, we proposed 12 new rulemakings for public comment;
approved almost 100 enforcement actions, resulting in billions
of dollars imposed in civil monetary penalties; and authorized
over $34 million in whistleblower payments, demonstrating the
success of this important program.
We have collectively held 14 advisory committee meetings,
including four held by the advisory committee I sponsor, the
Energy and Environmental Markets Advisory Committee (EEMAC). I
am blessed by the commitment of the members and associate
members of the EEMAC and its subcommittees, as well as the
members of the CFTC's other advisory committees. These
individuals offer their time to assist the agency in fulfilling
our mission and help inform our work through their vast
knowledge, experience, and expertise.
Recently, I was back home in South Dakota during the final
days of the fall harvest on my family's farm. As I watched the
combine headers cut down the rows of corn and sunflowers,
filling the hoppers with grain, I was reminded of the
importance of the agriculture futures markets to farmers and
ranchers across the United States. It is critically important
for those of us here in Washington, DC, to remember that those
farmers harvesting their fields took an enormous risk when they
planted the seeds from which those crops grew.
The agriculture futures markets are not only invaluable
tools for price discovery but also for mitigating those risks
inherent in production agriculture. Each and every day, I
approach my work at the CFTC with those farmers and ranchers in
mind, and should I be confirmed, I hope to continue to be a
voice for agriculture at the Commission.
To have this opportunity to continue in my current role and
to be a part of the great things to come at the CFTC is a
blessing beyond my imagination. Thank you again for this
opportunity, and I look forward to answering your questions.
[The prepared statement of Ms. Mersinger can be found on
page 34 in the appendix.]
Chairwoman Stabenow. Well thank you very much to both of
you, and let me start with Dr. Gooden and talk a bit about the
fact that the USDA Rural Development is now responsible for
implementing the largest investment in rural electricity since
the New Deal. From the State of Michigan alone there is
tremendous interest. We have over 215 applications from farmers
and electric cooperatives and small businesses, requesting
nearly $2 billion in clean energy funding. We know that this is
going to create a lot of good-paying jobs also, which we are
very excited about.
Could you talk about your plan to use these resources that
are available to Rural Development to both tackle the climate
crisis and also ensure the timely and responsible allocation of
these funds?
Dr. Gooden. Well thank you, Chairwoman Stabenow. We
certainly understand the vital impact that these clean energy
programs have on rural America, and we are committed, in Rural
Development, to ensure that we are employ aggressive strategies
to make sure we hire people to actually allocate the funding
that came through, certainly through our Powering Affordable
Clean Energy (PACE) and New Empowering Rural America (ERA)
programs, looking at if we can really impact the cost of energy
in rural America, reduce the energy costs through these
programs, that really helps rural America but also it improves
our environment, which is always better for our farmers and
ranchers. Also through our programs and some of bio-based
programs, providing additional opportunities of revenue for our
farmers and ranchers as well.
With that three--reducing energy costs, cleaning our
energy, and also providing additional revenues--I think that
certainly is a benefit for rural America, and we are committed
to working with our Rural Utility Service administrator and
program to make sure that we meet the timeline to deploy these
funds as Congress has intended.
Chairwoman Stabenow. Thank you. You know, as we talk about
new programs we are always hearing from small and under-
resourced communities about their lack of capacity to be able
to apply for USDA Rural Development programs, and other
programs within the USDA. Relying on State staff and technical
assistance providers to get their applications over the line
becomes so important.
In your current role could you talk about common barriers
you have seen communities face when trying to access Rural
Development programs, and what should we be considering as we
are writing the next farm bill, to address these barriers?
Dr. Gooden. Thank you, Chairwoman. Capacity and being able
to provide technical assistance to our customers to actually
navigate the maze of our programs and sometimes our application
process, it is a top priority of mine and the agency to reduce
that burden on our customers. It is an equity issue, improving
the access to our applications and making sure that our
customers are able to complete these applications as well.
Certainly there are several things that we are looking at
doing. We are actually looking at strengthening our
partnerships with our nonprofit organizations and other
organizations that work in the rural economic development space
across the country. That is a key priority of mine. Also hiring
staff, really shoring up our field-based operations, making
sure that where our customers engage with rural America on the
ground that we have adequate support there for individuals.
Looking at building a pipeline, again, to be able to
provide the staffing, to provide technical assistance. We
certainly understand, again, there are things we can and should
do better at Rural Development, and making our application
process easier for our customers is certainly a top priority.
Chairwoman Stabenow. Absolutely.
Commissioner Mersinger, you have spoken about how energy
markets are an area of focus for you at the CFTC. I have been
concerned for a long time, and advocated, of course, for clean
energy, and it is exciting to see that we are moving and
creating these opportunities in rural America as well to tackle
greenhouse gas emissions and create jobs and so on. We know
that the derivatives market plays an important role in how we
achieve all of these goals.
In your view what is the Commission's responsibility for
supporting the transition that we are involved in to a low-
carbon economy?
Ms. Mersinger. Thank you for that question, Chairwoman
Stabenow, and we do have an important role. I think the markets
that we regulate serve a really important role in offering
hedging opportunity. When you are looking at some of the costs
involved in transition, hopefully it can help kind of smooth
out that process.
Our main job is to make sure those markets are functioning,
whether it is for energy end users, farmers and ranchers, or
those who are using our markets to hedge the risk costs of some
of the underlying components that are needed for renewable
energy and electrification.
Those are all things we are looking at closely through the
EEMAC committee, and my hope is that we can be contributors to
the discussion and do what we can to make sure our markets are
functioning in the role that they are meant to play.
Chairwoman Stabenow. Thank you. Senator Boozman.
Senator Boozman. Thank you, Madam Chair. Commissioner
Mersinger, as sponsor of the Energy and Environmental Markets
Advisory Committee you have championed ensuring the resiliency
of agriculture and energy derivative markets. Can you talk
about some of the work you have done to ensure these markets
remain robust and resilient, and any future initiatives you may
wish to pursue to ensure this goal if you are confirmed?
Ms. Mersinger. Thank you for the question, Ranking Member
Boozman. I was very intentional when I picked the EEMAC
Advisory Committee as a committee to sponsor because, to me,
one of the largest input costs for American farmers and
ranchers is the cost of energy. Looking at those markets and
how they work and how they serve end users is an important part
of the discussion, especially when we are talking about a move
to a net zero economy.
Our role, the advisory committee role, is really looking at
some of the newer metals that are important to renewable energy
and further electrification, looking at some of the physical
infrastructure related to energy and how that could impact our
markets, and what that means for prices for the average
consumer.
Throughout all of those discussions it is very important to
have farmers and ranchers part of that discussion. Any
discussion of climate and improving our energy infrastructure
needs to include America's farmers and ranchers who I often
call the first environmentalists, to really worry about the
environment and the work that they do to conserve soil and
bring agriculture products to the general public.
Senator Boozman. Very good. Thank you.
Dr. Gooden, over 50 percent of counties in Arkansas, and I
think 53 percent nationally, have lost population over the last
10 years. This scenario is not, again, unique to Arkansas. We
routinely hear about the lack of opportunity and capacity
building to stimulate economic development. Can you provide
examples of initiatives Congress or the Administration could
pursue that could stem out-migration and generate sustained
economic growth in rural areas?
Dr. Gooden. Thank you, Ranking Member Boozman.
Senator Boozman. What is the answer to the problem that
your daddy posed?
Dr. Gooden. Well, I have been mulling that solution for
about 30 years now.
Senator Boozman. I know you have.
Dr. Gooden. I really do appreciate that question. The issue
of the out-migration of population in rural areas is a major
concern across the country. Rural Development has some
significant programs and initiatives to shore up support in our
rural communities. We have a Rural Partners Network that
actually looks to work in some of the underserved communities
that Rural Development may not have reached in quite some time,
and it is an all-of-government approach. It is breaking down
silos, not only across USDA, but it actually is breaking down
silos across government, where we can bring more government
resources to these rural areas with our Rural Partners Network.
Really it is designed to help strengthen the capacity of
these communities, not only to learn about our programs but
actually to be able to take advantage of not only Rural
Development programs but programs at SBA, EDA, and other parts
of the government.
We are working very diligently to bring the resources of
the Federal Government and to partner with State and local
municipalities to actually make sure that rural counties can
avail themselves to the opportunities that we have here in the
Federal Government.
Senator Boozman. Very good. Thank you. I have got some more
but I will submit those to the record, in the interest of time.
Thank you, guys. Thank you, Madam Chair.
Chairwoman Stabenow. Thank you very much. Before proceeding
I understand Senator Marshall would like a moment of personal
privilege. We are not sure what this is.
Senator Marshall. Thank you, Madam Chair. Thank you so
much. I know the Ag Committee has been watching with bated
breath the upcoming Farmageddon bowl game between Iowa State
and Kansas State. I just want to congratulate Senator Ernst and
Senator Grassley for a well-played game. They took it to us. It
has been going on for 100 years, Farmageddon. In case you
missed it, Farmageddon bowl game. It is usually the Saturday
before or after Thanksgiving.
I just want to present the trophy this year to Senator
Ernst and Senator Grassley and make this a new tradition for
the Ag Committee, as we pass this trophy back and forth.
Senator Ernst, on behalf of Iowa State, congratulations.
Senator Ernst. Madam Chair, I want to congratulate my
Cyclones. Go Clones. Thank you.
Chairwoman Stabenow. We are happy to accept this new
tradition of the Committee.
[Applause.]
Chairwoman Stabenow. All right.
Senator Ernst. Thank you, Madam Chair.
Chairwoman Stabenow. Absolutely.
Senator Ernst. It is a Newhall one. Where is my John Deere?
Senator Smith. Madam Chair, maybe it would be possible to
move the microphones and we could have a little drag race.
Chairwoman Stabenow. We could.
[Laughter.]
Senator Smith. I am sorry. I did not mean to----
Chairwoman Stabenow. Do not give him any ideas. I have a
feeling.
Senator Marshall. My bad. My bad.
Senator Smith. There we go. I love it. Great. Well, thank
you, Madam Chair and Ranking Member, and welcome to the
Committee. It is wonderful to see both of you, and thank you
for your service.
I would like to start with Dr. Gooden, and I want to talk
with you a little bit about rural housing. I think we all know
that if you do not have a safe, affordable place to live,
nothing else in your life works--not your job, your education.
Nothing in your community works. We also know that there is a
shortage of housing in rural communities, and that is a huge
barrier for families and for businesses that want to expand in
rural communities. There is also a real shortage of affordable
housing stock. Places where our seniors, people living with
disabilities, and also folks working in low-wage jobs are
living.
Senator Rounds and I have been working closely on looking
at some common-sense reforms to the Rural Housing Service,
which has not really been looked at for really quite a long
time. I want to thank the Department and the Rural Housing
Service staff for the very useful technical assistance that
they have provided us. I am glad to say that this bill that
Senator Rounds and I have been working on now has 10 co-
sponsors on the Banking Committee, which all has jurisdiction
over this, five Republicans and five Democrats.
I want to dive into this a little bit. One of the things
that we learned as we did a lot of outreach on this is that the
Rural Housing Service struggles with outdated technology which
makes it very difficult for the folks to do their jobs, and it
makes it very difficult for the private sector to interact with
the Rural Housing Service.
Dr. Gooden, could you just talk a little bit about the role
that this Rural Housing Service plays and the role that housing
plays in attracting folks to rural communities and what we need
to do to ensure that we keep that stock of affordable housing
in community?
Dr. Gooden. Good morning and thank you so much, Senator. I
am excited about that question. I share your concern and your
interest in rural housing. Much of my career at the State level
was with the Department of Housing and Community Development.
One of the first things that I did as a State Director in
Virginia in Rural Development was actually analyze our single-
family housing program to make sure that we were able to deploy
our program across the State of Virginia, to put people in
safe, decent, clean, affordable housing in Virginia,
understanding housing is more than just a home, that actually
it impacts health as well. Housing is a stepping stone to
accumulating wealth as well.
Housing plays so many important parts in rural America. I
certainly will commit to working with our Rural Housing Service
administrator, but also partnering with our rural housing
partners such as HAC and other organizations to really address
these issues of rural housing. I certainly understand.
One thing I do want to share is that our Single-Family
Housing Direct Loan Program this year had a banner year of $1.7
billion. We are doing some good things with our program, but I
think we can certainly do more, and I do share your concern and
look forward to working with you, your staff, and other Members
of Congress to better deploy our housing services across rural
America.
Senator Smith. Thank you very much. I look forward to
working with you on this as well and talking with you more,
Madam Chair and Ranking Member, and other members of this
Committee about this issue and this legislation. I am hoping
there will be an opportunity for us to make some progress on
this in the coming months.
Ms. Mersinger, I would like to just quickly, in the time I
have left, let you know that in preparation for the hearing we
had an opportunity to hear from some grower organizations in
Minnesota, and the Minnesota Corn Growers, in particular, asked
that I pass along a thank-you for your commitment to
establishing good, regular communications with them through the
CFTC's Agriculture Advisory Committee. Thank you for that. It
means a lot for people to feel as if they have somebody that
they can connect with and express their views to, so I am
grateful for that.
I think we all know that consolidation in the ag sector is
a significant problem, both on the input side as well as on the
processing side. Also we continue to see lots of mergers in
this sector, and it is very concerning to a lot of us on both
sides of the aisle.
You all play a big role in commodity price discovery. I
know you do not have oversight over there mergers, but could
you just talk a little bit about whether you think that there
is a role for the CFTC to play to help producers that are not
getting a fair market value for their products because of this
price transparency issue?
Ms. Mersinger. Thank you for the question, Senator Smith,
and although I am from South Dakota I did spend a lovely four
years in Minnesota at the University of Minnesota. My husband
is also a Golden Gopher, and he grew up in Minnetonka.
Practically a constituent.
To your question on consolidation, especially in the
agriculture markets, it is something that we pay attention to.
The underlying fundamentals of especially the agriculture
complex markets really do have an impact on the price discovery
role that our markets play. It is something we have to pay
close attention to, be aware of, and make sure that at the end
of the day our markets are adequately reflecting the price of
these markets.
That is something that we are thinking about, something
that we are looking into. Another kind of aspect of
concentration here has to do with futures commission merchants,
which is kind of the onramp to some of these markets. We have
seen significant drop in numbers in FCMs, and that is something
that we are paying attention to. I think we have some
opportunities to look at ways where we could see if there are
barriers to entry and just make sure that we are allowing
farmers and ranchers to have full access of the markets so they
can hedge their risk.
Senator Smith. Thank you very much. A complex question. I
appreciate you. Thank you, Madam Chair, for your forbearance.
Chairwoman Stabenow. Absolutely. Senator Ernst, I do not
know if you have other trophies or awards or speeches you would
like to make.
Senator Ernst. Well, next year, I will be keeping it
probably next year too. Thank you. Congratulations again to
Iowa State, and thank you, Dr. Marshall, very much for a little
bit of levity. It is always appreciated. Thanks, Madam Chair
and Ranking Member, and as well to our witnesses, Dr. Gooden
and the Honorable Mersinger. Thank you very much for your
testimoneys today. I really appreciate it.
I have shared many times before, but I grew up on a small
family farm in southwest Iowa, and you could often find me
either feeding the hogs or walking soybeans. I would like to
say they were fond memories, but maybe a little bit of
nostalgia now. It was a lot of hard work, and I experienced
firsthand the type of work that goes into production
agriculture, and my folks taught me the values of service and
sacrifice.
I have gone through your biographies, we heard them here
today, we have heard your remarks, and I am so encouraged that
we have such phenomenal nominees before us today that have that
similar background that I had growing up in southwest Iowa. You
truly do understand the complex challenges that are facing
rural America today. I really appreciate that.
Dr. Gooden, on your cattle farm, God bless you, and then,
as well, Ms. Mersinger, growing up in South Dakota and having a
similar experience. We really do need more dedicated
individuals like you that are stepping forward and serving our
country in these types of positions. I know and understand that
both of you will not only want our small rural communities to
survive but you want them to thrive. That is why I am excited
that you are here.
I always do get a couple of questions as I am out and
about. I travel Iowa, hit all 99 counties every year on my
River to River Tour. If we can address some of those questions
today, and Dr. Gooden, I will focus a lot of the questions to
you.
We do have a number of companies in Iowa that will turn
corn, soybeans, and other plant-based feedstocks into a broad
spectrum of everyday products. USDA's BioPreferred Program
represents a very important tool for our Federal Government to
spur private sector innovation. This adds value to the crops
that farmers are producers, and it also builds our national
security.
Dr. Gooden, will you commit to supporting this important
program, again the USDA BioPreferred Program, and working
across the Federal Government to improve the reporting, data
collection, and procurement opportunities for those products?
Dr. Gooden. Thank you very much, Senator Ernst. I am very
excited about our BioPreferred Program, and I will certainly
commit to making sure that that program has the resources and
attention that it needs to make the impact that Congress
intended. We are excited both about the labeling aspect of the
BioPreferred Program and also the procurement preferences as
well. Very impactful program, and it is making a big difference
in rural America, as you so noted. Again, very excited about
that program, and looking forward to moving that forward.
Senator Ernst. Outstanding. I appreciate that because
overall the U.S. is falling behind when it comes to
prioritizing that ag-bio economy environment. I would love it,
as well, if you would commit to educating others within the
Administration about the incredible opportunity that we have.
Do you commit to do that as well?
Dr. Gooden. I do. Thank you, Senator Ernst. Any time that
we can sing the praises of the impact, certainly for our
farmers and ranchers, again, the benefits of the additional
revenue streams for them, I am all in. Thank you so much for
your support.
Senator Ernst. Thank you. Dr. Gooden, Iowa continues to be
a leader in renewable energy, and ethanol production
specifically is something I feel very strongly about. Home-
grown biofuels are very critical to our farmers and our
consumers, and especially when we are working to lower costs at
the pump. The Higher Blends Infrastructure Incentive Program,
HBIIP, has been a useful tool for helping convenience stores
purchase the infrastructure needed to support these higher
blends of fuels, such as E15 and E85.
If confirmed, can you commit to continuing this program and
ensuring that consumers are provided with higher blend options,
which are oftentimes much lower cost at the pump?
Dr. Gooden. Yes, ma'am. I certainly commit to that. We have
a fantastic team in our Rural Business-Cooperative Service
really focused on this and this program, making sure that it is
making the impact that it is desired to do, and they are
committed to doing that, great team at U.S. Rural Development
to do that.
Senator Ernst. Wonderful. Well, I appreciate that. I see
that I am running out of time. I do have a number of other
questions that have come from constituents. I will submit those
for the record, things such as childcare as well in the rural
areas and how we are working to improve that situation.
To both of our nominees, thank you very much. I really
appreciate you. Thank you, Madam Chair.
Chairwoman Stabenow. Thank you so much. I have raised the
issue on the biobased economy with Dr. Gooden as well, so I am
so glad that you have raised that. There are a whole lot of
jobs and opportunities in this area.
Next, Senator Marshall. Excuse me. I am sorry. Wait just a
second. Senator Bennet.
Senator Bennet. With your permission, Madam Chair, I defer
to Senator Marshall if I could go after him.
Chairwoman Stabenow. You may. Yes. There you go. Merry
Christmas.
Senator Marshall. Thank you so much, and we are going to
keep working on those water issues in Colorado and Kansas.
Chairwoman Stabenow. That is right. That is right.
Senator Bennet. Thank you, neighbor. Thank you.
Chairwoman Stabenow. Senator Marshall.
Senator Marshall. Thank you, Madam Chair. I will start off
with Dr. Gooden. Now before you answer this question I want you
to know that my mom's family raised Hereford cattle and my
dad's raised Angus beef cattle. What type of cattle do you
raise?
Dr. Gooden. We are pretty agnostic on the cattle. No, we
and my family raise Black Angus beef cattle.
Senator Marshall. That is a great choice. It is all good to
me. Contrary to what the United Nations is saying, I am so
proud that American farmers and ranchers grow beef with less of
a carbon footprint than anybody else in the world does, and I
think it is a pretty good protein source as well.
Dr. Gooden, if you could do one thing in the next six
months that would help rural America, what would it be? Maybe
two things, one or two things.
Dr. Gooden. Senator, I really feel that rural America,
actually the loss of the population in rural America. Really
promote rural livability, making sure that people understand
that rural America is not just a place that produces energy or
things that you can extract products from, that that actually
is a place that you can live, raise a family, and actually work
and have a livable wage. Really, again, just promote that.
If you are talking specifically through our programs and
rural America what I would do in the next six months, I would
focus heavily on our staffing, making sure our staffing is
adequately supported in our field-based operations, where we
meet the customers there on the ground, to make sure that they
understand our programs and can access our programs. That is
what I would do through rural----
Senator Marshall. Thank you, Dr. Gooden. You know, as I
listened to your testimony I was reminded that you laid out
some really good goals that you could do. You are representing
the government. Other than making it rain, the biggest thing
the Federal Government could do is help drive the interest
rates down. That is what is impacting rural America probably as
much as anything right now. Our interest rates, we were paying
one percent for operation loans, now nine percent. That was the
profit.
At the bigger level I just hope that you would use your
megaphone to tell the White House that we cannot keep spending
so much money and printing dollars that leads to high interest
rates as well.
Last I do want to ask about childcare. Senator Ernst kind
of brought it up as well. If we expanded USDA loan program to
include childcare facilities, would that be of use?
Dr. Gooden. Oh yes, sir, Senator, and certainly our
Community Facilities Program, actually we invest in community
facilities, health care clinics in rural areas, hospitals as
well. Certainly educational opportunities.
Senator Marshall. Right now--so I understand we cannot do
childcare centers. I think that would be something great to
think about on a farm bill is expanding what the USDA could
loan money on, to include some type of childcare facilities.
They are just not profitable, so we could give them or help
loan them a facility. Perhaps it would work out as well.
Next I will turn to Commissioner Mersinger. Thank you
again. I am going to start--your children came with you. I am
going to pass on some advice to your children. Okay? Now listen
to this. Mark Twain said, ``When I was 15 my dad was the
dumbest man I had ever met.'' By the time he turned 23 he had
learned a lot. As you are fighting with your mom and your dad--
the girls tend to fight with their mom, the boys fight with
their dad--just remember that, that over the next seven or
eight years your mom and dad are going to learn a lot.
I appreciate, Commissioner, your commitment to family. I
think about rural America and I think those family values are
so important. I appreciate you bringing them here and letting
them see what Mom does for a living, and what you do is
important, that the farmers and ranchers back home use
commodity futures as part of their risk management. They seldom
have a concern but we have got one going on now. I am going to
have to turn to my notes because this is a little bit more
complicated.
I want to talk about live cattle future prices for a
second. They just seem to be out of whack. I have never seen
such a divergence in the prices, and we do use these. Our
feedlots, I do not know, 25 percent of the beef in the country
comes through our feedlots in southwest Kansas as well. The
swing in prices is damaging to producers.
What is the economic basis for this big swing that is
happening, and heaven forbid, is there any type of evidence of
market manipulation going on here? Is there any chance that
there is market manipulation going on? It just does not make
sense to us.
Ms. Mersinger. Thanks for that question, Senator, and I
grew up on a cattle ranch. I spent the first 14 years of my
life on a cattle ranch actually picking rocks for fun.
Definitely I understand the challenges, and I know how
important the futures markets are for cattle producers in
providing that price discovery.
We have very well-qualified, very smart analysts who are
watching these markets day in and day out, monitoring----
Senator Marshall. What are the economics behind it?
Ms. Mersinger. You know, the agriculture markets are very
sensitive to underlying fundamentals, and as you know, the
pricing aspect and how prices are reported in the cattle
markets, there are a number of questions around how that is
formulated. That is not within our jurisdiction, but certainly
it impacts our futures markets. Certainly we are willing to
work with USDA, willing to work with this Committee to see if
there are things that need to be changed, and certainly if
there is anything that needs to be changed within the contract
specifications for the----
Senator Marshall. If there was market manipulation going on
do you think that you could see it? Could you figure it out?
Are you concerned there is market manipulation?
Ms. Mersinger. I do feel strongly that we would be able to
see it if there was manipulation in the futures markets. Not
only are we surveying for that but also the exchanges. That is
part of their role. I do think, you know, when we see fraud and
manipulation we put an end to it. We go after the bad actors.
It is also on the exchange to ensure that these markets are not
susceptible to fraud and manipulation. That is part of their
core principles.
We are looking into it all the time, and certainly happy to
work with your office and this Committee to see what we can do
if there are things that can be done to better--make sure these
markets serve their purpose.
Senator Marshall. Thank you.
Chairwoman Stabenow. Senator Bennet.
Senator Bennet. Thank you. Promises made, promises kept.
Thank you. Thank you, Madam Chair, and to the Ranking Member
for holding this hearing, and thank you to our nominees for
your willingness to serve and to testify before the Committee.
Dr. Gooden, your predecessor, and now the Deputy Secretary
of Agriculture, made a point to visit Colorado during her
tenure as the Under Secretary for Rural Development, and we
appreciated it. I hope you will make it a priority to visit
Colorado as well and to meet with our farmers and ranchers and
community leaders, business owners who are working hard to keep
Colorado's rural areas vibrant.
A topic that I have raised over a long, long time in this
Committee, and it continues to be a challenge for rural
Colorado communities, is the burdensome red tape that is
holding back Rural Development programs. Whether it is the
Community Facilities Program that helps rural health clinics in
the San Luis Valley or Clean Energy Development in northwest
Colorado or Rural Housing on the Eastern Plains, this trend
cannot continue if we want to be successful in lifting up our
rural communities. Our rural communities do not have time to
get drowned in the red tape that they are suffering from.
I would ask you, Dr. Gooden, if confirmed as Under
Secretary how you will work to reduce the burdensome
application and contracting requirements for the USDA Rural
Development programs?
Dr. Gooden. Thank you, Senator Bennet. I will commit
certainly to come to Colorado, in the footsteps of Deputy
Secretary Xochitl Torres Small.
Senator Bennet. Thank you.
Dr. Gooden. I certainly understand and appreciate your
question related to the red tape. One of the top priorities
that I have at Rural Development is really making our
application process far easier to access and complete, whether
that is working with our rural partners to provide technical
assistance--and again, shoring up the support of our staff
there on the ground in Colorado and across the country to make
sure that they can help applicants better understand that
process. I mean, there is a maze, sometimes, of programs that
small towns sometimes do not really understand exactly some of
our programs and the benefits that they can bring to their
area. Making sure that our staff is able to come out and meet
these individuals where they are, in these small towns and
municipalities.
Senator Bennet. Yes. I would say maybe another way of
saying that is that small towns do not have the resources the
big municipalities have to hire people whose only job is to
figure out to get themselves through the USDA red tape and
through these complicated processes. They do not. They cannot
afford to do it, and it is not fair for them to have to do
because it shuts them out of the process, and they are the ones
that need the help the most.
I will take you on your commitment. I believe it. I have
made this offer to your predecessors and I will say it again.
If there are things we can do to change the way the law is
written to help make your job easier, you should not have to
hire a bunch of lawyers and accountants to get through these
forms. You should not have to do it. You know, your average
small town in America should be able to do this. Your average
producer should be able to do this. If they cannot it is not
their fault; it is our fault.
Unfortunately the problem is people here, they come for a
job, they stay for two or three years. I am not criticizing you
in any way. That is just is the way this works. The people at
home are still doing the same thing they were dealing with
three years ago or five years ago, 10 years ago. I would like
to build a statue to you if you could figure out how to get
some of this stuff done and whatever I can do to help.
Let me also use this as a chance to express my appreciation
for all the work the Rural Development team as USDA is doing to
roll out the new Inflation Reduction Act Clean Energy Programs.
With the IRA, we made the single largest investment in rural
electrification since the New Deal. I am particularly excited
about the New ERA Program, nearly $10 billion to help rural
electric co-opioids transition to clean energy.
I know that the program, not surprisingly, is significantly
oversubscribed. It is great to see how much interest there has
been. Colorado co-ops are poised to lead the clean energy
transition in rural America, and I hope USDA will give their
applications full and fair consideration. I think New ERA has
the potential to fund larger renewable projects and even
position rural co-ops to own projects for the first time, which
they have never been able to do. That is going to provide huge
value to rural communities for their long-term economic value.
I have been hearing concerns about how projects are going
to make it through the NEPA process, or whether they will ever
make it through the NEPA process in a timely manner. I would
ask you, outside of increased staff capacity, which of course
is going to be difficult to find at the agency for
environmental review, in your experience what can USDA do to
speed up the NEPA review process for the New ERA program? Well,
let me stop there and see if you have got an answer.
Dr. Gooden. Thank you, Senator. I certainly understand the
frustration and the challenges that are being encountered
related to our environmental review process. That is something
that Rural Development has been taking very seriously, looking
at strategies to improve that, the environmental review
process.
Actually, we did hire some additional staff to really focus
on that. We have a task force that actually has been created,
actually over a year ago now, working to provide
recommendations to address the environmental review process. We
have contracted with others to help us be able to complete
those environmental review processes, to move those Rural
Development projects forward.
We are giving this serious attention, Senator, but we
certainly welcome the input and the feedback. I certainly do
not take any comments as any criticism at all. We need to hear
certainly things that we can do better. We look forward to
working with you, your staff, and other Members of Congress to
really address these issues, certainly around environmental
reviews and other issues as well.
Senator Bennet. Thank you. We look forward to that, and
Madam Chair, thank you for the opportunity to ask these
questions. Thank you for being here.
Chairwoman Stabenow. Absolutely, and let me echo the
paperwork. Both Senator Boozman and I have talked extensively
about this, and with our Deputy Secretary now as well, about
the importance of streamlining the paperwork for communities
and farmers and so on, to be able to get the services that are
so important that are being offered.
Senator Tuberville.
Senator Tuberville. Thank you, Madam Chair.
Congratulations. Thanks to both of you for being here. Very
impressive families. It is good to see them here too.
Before I get started, Dr. Gooden, I have always wanted to
ask this question. The son of a principal at the school that
you went to, did you have any friends?
Dr. Gooden. No, sir. I had very few friends.
Senator Tuberville. Nobody ever came home with you, did
they?
Dr. Gooden. No. Very few.
Senator Tuberville. Hard to get somebody to sleep over with
you. I always wondered that.
Dr. Gooden. Right.
Senator Tuberville. Good to have you here. Dr. Gooden, a
couple of quick questions. Would increasing the guaranteed to
FSA loan cap expand access to capital and credit in rural
communities?
Dr. Gooden. Senator, thank you so much for that question.
Actually, we work with our colleagues across USDA and certainly
in FSA as well, really focused on improving farmers, ranchers,
the livability and the livelihood. If I am so honored to be
confirmed I will certainly work with FSA and other parts of
USDA to really address these issues in rural America. Currently
that is outside of the purview of Rural Development, but
certainly is a focus of rural livability.
Senator Tuberville. I think it is something we need to
address, especially in some of the States like I am from. I
mean, I think it is pretty important.
You and I talked about rural broadband, and considering the
strong push for fiber we are seeing from this Administration.
Can you speak to the importance of promoting tech neutrality
amongst all broadband technologies, including fiber and coax?
Dr. Gooden. Thank you, Senator. I really appreciate that
question.
Senator Tuberville. It is a lot cheaper.
Dr. Gooden. What we are focused on certainly in Rural
Development is the quality of the broadband and the standards.
Right now over 100, that is what we are focused on. We are
pretty agnostic related to the technologies. I personally, my
family and my community members in Buckingham County, Virginia,
we understand the need for high-speed internet and the impact
that it makes in lives. Certainly as I shared with you, right
through our family farm there was fiber laid along a natural
gas pipeline only 200 yards from my house and we were not able
to connect to that high-speed internet at all.
We are agnostic related to the technologies, open to all
technologies. Again, we are focused on the quality of broadband
that actually is deployed in these rural areas.
Senator Tuberville. We have got to do something pretty
quick because this technology in farm equipment is getting more
complex, more complex, GPS and things like that. You know, I
know you will do a good job with that, but I think that is one
of the most important things we can do for our farmers.
Commissioner, as you know farmers rely on derivatives to
hedge risk. I just did a huge sweep of the South and I was
shocked how many people hedge their farms. It is real, real
important.
What are you doing at the CFTC to make derivative products
more accessible to producers and particular small farmers?
Ms. Mersinger. Thank you for that question, and certainly
making sure that America's farmers and ranchers can use our
markets to hedge their risk, and a lot of times this is an
important tool that they need to access credit. Certainly
ensuring that they have access to these markets is very
important.
I think one of the things we can be doing, that we
hopefully, at some point, will be able to do, is use our Office
of Customer Education and Outreach to better get in touch with
those small farmers and ranchers and at least introduce them to
the markets and how they can help.
You mentioned access. Earlier when I was speaking to
Senator Smith I mentioned that we are seeing smaller numbers of
the futures commission merchants, and that is a critical piece
of accessing futures markets. Certainly we need to look at
whether there are policies impacting it, there are barriers to
entry, and just make sure that those who want to access our
markets can, and that they are serving the price discovery rule
that they are meant to serve.
Senator Tuberville. Are you seeing people reach out to you
about education and what you are doing, farmers, and is there a
huge need for maybe education in this area?
Ms. Mersinger. Yes, there is, and we do try to leverage
some of our relationships with the various farm groups. We do
have some limitations on how we can spend funds in our Office
of Consumer Education, and I think it would be very helpful, if
the Committee decided to do reauthorization, if we were able to
expand that ability to use that money to better reach farmers
and ranchers.
Senator Tuberville. Thank you, and thanks for both of your
service. Thank you.
Ms. Mersinger. Thank you.
Senator Tuberville. Thank you, Madam Chair.
Chairwoman Stabenow. Thank you very much. Senator Warnock?
Senator Warnock. Thank you very much, Madam Chair, and
congratulations to both of you for your nominations. As of last
year, 90 percent of the places in Georgia that are unconnected
are in rural communities, and we have already heard a lot about
that today. There is no secret that rural America, rural
Georgia struggles with this issue of connectivity. As I have
said time and time again, broadband is to the 21st century what
electricity was in the 20th century, and I think if we think
about it in those terms it will sharpen the urgency with which
we address this issue.
Folks in rural Georgia consistently tell me that they do
not have adequate internet access, and they cannot take
advantage of distance learning, of telehealth services. I have
spent a lot of time with farmers, working with Senator Thune
and others, to address the issue of precision agriculture. It
is impressive to see what farmers are able to do with these new
precision agricultural technologies. We are looking to
standardize these technologies so that they can talk to one
another.
None of that means anything at all if people cannot get
online. I am glad that the ReConnect Program has provided over
$93.5 million to deploy broadband in rural areas of Georgia
that lack sufficient access.
Dr. Gooden, if confirmed, will you commit to working with
me and my colleagues to prioritize an efficient rollout of
these broadband development funds to ensure all Georgians have
access to reliable internet connection? Help me to understand
where that is in your suite of priorities, and how you will
help us to get that done.
Dr. Gooden. Thank you, Senator Warnock. High-speed internet
is vitally important to rural America, and I like to say it is
not an amenity; it is a necessity.
Senator Warnock. Right.
Dr. Gooden. We see that across the country. I fully commit
to ensuring that we work with your staff and other Members of
Congress to make sure that we roll out our ReConnect Program
and we continue to work with other parts of the Federal
Government, like the Department of Commerce, NTIA, FCC, to make
sure that we do not duplicate efforts but we augment and
support each other. I certainly commit to addressing broadband
issues across rural America.
Senator Warnock. Well, thank you for your commitment. It is
critical, and we have got to remain focused on this issue.
ReConnect, to be fair, is just one component of solving this
big problem, but all of this new broadband infrastructure does
not do a bit of good if people cannot access it, but also if
people cannot afford it. That is why I was glad to see that the
Biden administration requested that Congress provide additional
funding for the Affordable Connectivity Program. We have got to
keep those two things, those two priorities at the center of
our minds, both accessibility and affordability. I hope we can
get those things done.
Dr. Gooden. Thank you, Senator. Also reliability. I would
like to throw in reliability there as well. Affordable,
certainly, and reliable.
Senator Warnock. I certainly will agree with that.
Georgia's needs are diverse. I have worked tirelessly to
address the needs of all Georgians, including the unique
challenges faced by rural and underserved communities. Some
rural communities in my State like Echols County have little or
no access to physical bank branches, making it difficult for
them to manage their financial assets. Sometimes a banking app,
as nice as that is to have, sometimes it does not cut it,
particularly if you cannot get online.
My next question is directed to Ms. Mersinger. Do you
believe financial technology companies have a role in promoting
financial inclusion in rural and underserved communities, and
what is the work that we need to see done on that front?
Ms. Mersinger. Thank you for that question, and coming from
a small community my mother actually spent her career working
at the Onida Bank. It was a Main Street bank, and it was
critical to the farmers and ranchers in that community to have
the capital that they needed to do their work and to supplement
their livelihoods. I completely understand what you are saying
about the importance of having access to bank branches.
Certainly I think fintech can play a role. As you said, an
app does not necessarily replace the physical bank on the
street corner, but certainly if there are ways to reach more
people and provide them regulated banking services, I think
that is really important and something that should be promoted
as long as there are adequate consumer protections and
regulatory oversight.
Senator Warnock. I think that is critically important, and
we see that many of these communities are sometimes targeted,
and they do not have access to the very kinds of services that
you are talking about. I look forward to working with you, and
I remain committed to ensuring that all Georgians have access
to the services they need to build wealth and ensure their
financial security, both through mobile banking services and
physical branch locations.
Thank you so very much. Congratulations.
Chairwoman Stabenow. Thank you. Senator Braun.
Senator Braun. Thank you, Madam Chair. I enjoyed our
conversation yesterday evening, Dr. Gooden. I have got a
question for you and then momentarily one for you, Mrs.
Mersinger.
You know, when it comes to rural broadband our State has
done pretty well in terms of putting its own resources into it.
Often when anything comes from the Federal Government we have
received, in Indiana, through ReConnect, two fundings, one for
$1 million and one for $2 million, and Illinois has received
several, one of which would be for $20 million. I would like to
know what the rhyme or reason is for how much a given State
gets, and why, in the case of two neighbors there, there would
be such a disparity between one that is literally either 10 or
20 times the size of the two that we got in Indiana, which
would have been back in 2020?
Dr. Gooden. Thank you, Senator Braun. I appreciate that
question. I look forward to learning more about that. I am not
fully aware of that issue, but I certainly would work with you,
your staff to better understand and then provide you a response
related to how those applications are reviewed. Thank you for
the question, and I will look forward to learning more about
that.
Senator Braun. If you do not mind, I think it would be good
to go through probably how that has been dispensed across the
country, because just in this one case that was brought to my
attention by folks from Indiana. Indiana is a place that
generally is going to be somewhat more self-reliant, and I
would hope that you are not being penalized. If you are doing
that, that should have no bearing in terms of how you might
participate in a Federal program.
Dr. Gooden. Thank you, Senator. I do know that these
programs are highly competitive and often oversubscribed, and I
know there are some very tough decisions that have to be made
related to these programs. Again, I do commit to learning more
about that.
Senator Braun. Getting back to me on it will be fine. Thank
you.
Dr. Gooden. Thank you, Senator.
Senator Braun. Mrs. Mersinger, when it comes to the whole
cryptocurrency issue, to me that is something that is so
amorphous, we do not know where it is going to end up. It is
certainly not a currency in the sense of having stability. I
want to just zero in on it, though, in that it is emerging. It
is new.
Last week the CEO of Binance, the world's largest crypto
exchange, pleaded guilty to violating anti-money laundering
requirements. Earlier this month, the founder of FTX, another
crypto exchange, was found guilty of seven counts of fraud.
Last year the Committee spent considerable time debating new
crypto regulations. It seems to me that our existing laws and
regulations are bringing criminals to justice. I would like to
hear your opinion on that. In an industry that is literally
evolving daily, that has got a lot of peculiarities to it, and
I think it is yet to be determined where it fits into the total
scheme, do you think we need more regulation, or do you think
there is accountability in place given the two instances I
cited?
Getting to the key question, even though we know there are
issues with it, is there a possibility we could over-regulate
it, especially when we have brought two to accountability
already?
Ms. Mersinger. Thank you for that question. I was worried I
would not get a crypto question, so I am glad that we----
Senator Braun. There you go.
Ms. Mersinger [continuing]. I am glad we are having this
conversation. I do have to give a lot of credit and accolades
to our enforcement team. They were really the first movers on
the Binance case. They came out with a very strong case against
Binance, the founder and their chief compliance officer, and we
definitely have seen justice served in that space.
I think what that means is we are catching people who are
committing fraud and who are doing bad things in these markets.
Unfortunately, when you are only using your enforcement
authority you are coming in after the fact. The money has been
lost, consumers have been harmed, the bad behavior has
occurred.
While we are able to go after those individuals with the
authorities we have, what we do not have is the ability to get
ahead and be proactive and look at these markets and ensure
that customers are protected. There is an immense amount of
interest in these markets from U.S. citizens. We cannot ignore
it. In working closely with our States we need to have a
Federal framework to oversee the cash markets for crypto
commodities.
Senator Braun. Does that mean then you are going to use the
current framework, try to enhance it, or just be kind of
attentive to it?
Ms. Mersinger. That is a great question, and it is
something we have looked into. I do believe that we probably
need legislative authority to do more in this space. I do not
think that right now these exchanges could register under our
current regime. Yes, I have seen a lot of great ideas out of
this Committee and elsewhere throughout Congress, and I think
we can get to a good place where we have Federal framework to
properly regulate these markets.
Senator Braun. Thank you.
Chairwoman Stabenow. Thank you. I am just going to jump in
with one editorial comment because I do, Senator Braun, want to
say that the enforcement being done at CFTC has been really
excellent. It is important to note that there is no regime in
place on the front end. What happened at FTX would have been
completely illegal if we had passed the bill that Senator
Boozman and I had introduced last year, in terms of
transparency and so on. Hopefully we will have more opportunity
in the coming year to really discuss that. Thank you.
All right. Well, Senator Hoeven, you have jumped in just in
time to bump Senator Hyde-Smith. All right, Senator Hyde-Smith.
She has been very patient. Thank you. Senator Hyde-Smith.
Senator Hyde-Smith. Either way is fine. Thank you, Madam
Chairman, and thank you for hosting this hearing. Thank you to
the two of you. You know, I congratulated some folks earlier in
the day, and I said, ``Thank you for your bravery,'' but thank
you for your willingness. To have four children tagging along,
and you both have beautiful families. Senator Ernst and I had a
sidebar conversation. We both have one child each, and I said,
``I do not know what I did before I got her, but I must have
been a lazy American.'' I cannot imagine what you go through.
I am going to start with Dr. Gooden. I certainly enjoyed
our visit yesterday, and I know I threw a lot of stuff at you,
and I think we had a thorough discussion. One of the things we
spoke of yesterday that I am concerned about is health care.
You know, throughout Mississippi, particularly our Delta, the
epicenter of our agriculture industry, we are currently facing
some very severe potential hospital closures. Working on a farm
is dangerous. We are livestock producers ourselves, and whether
it is equipment accidents or handling livestock, it is critical
that we have access to rural health care. I have had to leave
the Senate floor to fly home when my husband encountered a
bull, and, you know, many family members we have literally had
to airlift because that is what we do for a living.
I am just worried about how producers and farm workers in
Mississippi are going to get that urgent medical care if the
rural areas in which they work do not have a hospital. Rural
Americans face very unique health disparities and challenges
compared to those in urban areas, but we grow the food in rural
areas. It is hard to grow food in a subdivision.
I have worked to establish the CDC Office of Rural Health
Support, Rural Development's Delta Health Care Services Grant
programs and provided resources for telecommunications programs
to help rural Mississippi hospital administer that. When you
have a patient, you know, you have a patient you have to get to
somewhere. This Committee has spent a lot of time this year
talking about using the farm bill to strengthen rural America
by supporting farmers and ranchers, but I want to make sure we
look at the health care situation because of the obvious reason
that I have already Stated.
If confirmed, what will you do to ensure that Rural
Development's programs to support health care and hospitals are
strong and effective, and how can Congress help the agency on
those endeavors?
Dr. Gooden. Thank you, Senator, and I certainly share your
concern about health care in rural America. As a farmer myself
I certainly understand the dangers of working on a farm.
Actually, a longtime worker on our farm actually had a stroke
on our farm, but he had a stroke. He worked for us for about 30
years, and actually it took more than four hours for him to get
to a medical facility because of the remoteness of the area but
also because of weather. I really think that his condition
would have turned out different if he had easier access to
health care. Certainly that is near and dear to me. That is
something that we understand.
I am excited to say that through our Community Facilities
Program most of that program, the portfolio is dedicated to
rural health care, funding rural clinics in the areas, and
personally again, when I was the State director in Virginia I
worked with a rural hospital in Appalachia, out of Lee County,
Virginia, to try to help find ways to make sure that that
hospital stayed open as well.
I am very familiar with the significant issue rural
hospitals and health care is across the country, and certainly
I will commit to ensuring that we utilize our programs to Rural
Development, Community Facilities Programs, and other
resources, working with partners to address health care issues
in rural America.
Senator Hyde-Smith. Thank you very much for that. I want to
talk about rural water assistance. That is also very important
to me, very important to my constituents, and I have worked to
support Rural Development's Circuit Rider Program that provides
essential services to train small communities on how to best
operate and maintain their water systems. Safe water, as we
well know, is so critical.
I have also worked with Senator Cortez Masto to introduce
the Rural Water System Disaster Preparedness Assistance Act to
make sure rural water systems can resume operations as soon as
possible after a natural disaster. We have a lot of those in
Mississippi because we have a lot of hurricanes in Mississippi.
These rural water programs administered by your agency are
very important and helpful, but the application process also
involves a lot of paperwork and a lot of red tape. As we talked
about yesterday, the folks who are in the business of
assistance and advisors to do that, that business is growing,
the consultants, because it is so difficult. I want us to be
able to provide that assistance, as The U.S. Federal
Government. So when you come in and apply for these programs,
we are the ones trained to help you do that.
What opportunities do you foresee to strengthen and improve
access to rural water programs, particularly through the
administrative burdens?
Dr. Gooden. Thank you, Senator. I am very proud of our
rural water program, our WEP Program, and the people that run
that program, but we certainly look for opportunities to,
again, collaborate and partner with folks on the ground.
Certainly we work with municipalities to deploy these programs,
understanding that clean, safe water is essential to not only
the health but also business creation and job creation as well.
Certainly we are committed there. Certainly things that we
can do is actually work with, again, our partners on the
ground, but also make sure that Congress understands and make
sure that we hear any concerns that you, your office have
related to any of our programs in Rural Development and
certainly around clean water.
I think we certainly have the knowledge and expertise. We
may need to augment the staffing in some of our field-based
operations, the boots on the ground, and I think that is where
we can focus a lot of our energy to get this job done related
to rural water.
Senator Hyde-Smith. Thank you. You both are so impressive,
and I have more questions but I am out of time so I will submit
those to the record. Thank you.
Dr. Gooden. Thank you.
Senator Boozman. Senator Hoeven.
Senator Hoeven. Thank you, Ranking Member Boozman. Thanks
to both of you for being here. We appreciate it very much, and
your service.
Dr. Gooden, one of the big challenges we have is creating
more competition for our livestock producers. I know you both
are well aware of that. One of the things that your
predecessor, Secretary Torres Small, worked on very diligently
was helping us get more of these processing and water
facilities going in our State and around the country. We need
to do a lot more of that so I want to hear what your ideas are
to really help create more competition that will serve our
ranchers in great States like mine as well as South Dakota and
really across the country. You know, what can we do? What are
you committed to do to really help our cattlemen get better
pricing, more competition, more transparency, more options to
sell their great product?
Dr. Gooden. Thank you, Senator. I really appreciate that
question. As a cattleman myself I look for any opportunities to
increase revenue, gate sales, anything that we can do to
support our farmers, ranchers, foresters, and landowners in
rural America. We certainly have programs. Certainly the Meat
and Poultry Processing Program has really garnered a lot of
interest. It is really making a significant impact, and it
continues to be open right now to continue to receive
consideration for these projects, knowing that the more that we
can increase competition in the processing space that is better
for the farmers and ranchers and producers as well.
Certainly not only looking for revenue streams from meat
processing but also trying to reduce costs, to augment the cost
of fertilization. We have a fertilization program as well,
looking at trying to make sure that that is sustainable, that
farmers can rely on domestic production of fertilizer.
Really looking at ways that we can reduce costs, certainly,
for the farmers but also make it sustainable. Increasing income
opportunities and revenue streams for rural farmers as well,
whether it is through bio-based products, you know,
consideration, but just looking at ways that we can create more
and better markets for our rural farmers and our rural
businesses as well.
Senator Hoeven. Yes. You have a lot of cow-calf operations
down there in central Virginia----
Dr. Gooden. Yes, sir.
Senator Hoeven [continuing]. and what we see is these
operations startup but they have a heck of a time staying in
business. You know, it is hard for them. What can you do to
really help? It is one thing they startup but then we have got
to keep them going and hopefully growing so that they are a
stable market for our producers.
Dr. Gooden. Certainly I am committed to, and have been
working across USDA, breaking down any silos that may exist to
really work with our counterparts in FSA and actually looking
at how we can better serve and deliver programs to our rural
communities, farmers and farmers. I certainly understand the
significance of the issues of startups, and I am certainly
committed to working with FSA to make sure that we are
providing the support needed to our rural farmers as well.
Senator Hoeven. Well, Rural Development, it is
appropriately named, and it is really important that you find
ways to help these folks really stay in business and build that
market. I think you can have a huge impact, because timeliness
is something people want. You know, the consumer wants it as
well. I look forward to working with you on that. I want to get
you out to our State. It is really not just about getting these
operations going, but making sure that they can stay in
business and grow and serve not just the cow-calf operator but
the consumer.
Dr. Gooden. Yes, sir.
Senator Hoeven. Then I want to stay on this line with you,
Commissioner Mersinger. What can the CFTC do to help, again,
create more options for markets for our cattlemen?
Ms. Mersinger. Thank you for that question, Senator, and
certainly our cattle contracts, they perform an important
function in the cattle ecosystem overall by providing adequate
price discovery and hedging opportunities. For the CFTC it is
important to us to make sure that those markets are operating
as they should, that they reflect the market fundamentals on
the ground, so that these producers can adequately hedge their
risk. If they are not doing that then we need to take a look at
why that is happening. If there need to be changes to the
contract term that is something the exchange can look at. If it
is a delivery point issue, if there are other concerns
underlying the market, those are things that we can look into,
because these markets need to work.
Senator Hoeven. Yes. You come from a State that has a large
livestock population, and again, need to find ways to help our
cattlemen with markets--more competitive pricing, more
transparency, more opportunities.
Ms. Mersinger. Absolutely.
Senator Hoeven. Thank you.
Chairwoman Stabenow. [Presiding.] Thank you very much.
At this point we will conclude the hearing and thank both
of you very much for your testimony. Because we want very much
to move your nominations as soon as we can, the record will be
open until tomorrow at 5 p.m. for members to submit additional
questions or statements. Senator Boozman and I are going to be
working closely together, and we are hopeful that we can report
nominations out of Committee next week.
The meeting is adjourned.
[Whereupon, at 11:41 a.m., the hearing was adjourned.]
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