[Senate Hearing 118-408]
[From the U.S. Government Publishing Office]
S. Hrg. 118-408
PATHWAYS TO FARMING: HELPING THE
NEXT GENERATION OF FARMERS
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON
COMMODITIES, RISK MANAGEMENT, AND TRADE
OF THE
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
__________
June 4, 2024
__________
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
56-752 PDF WASHINGTON : 2024
-----------------------------------------------------------------------------------
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
----------
Subcommittee on Commodities, Risk Management, and Trade
TINA SMITH, Minnesota Chairwoman
KIRSTEN E. GILLIBRAND, New York CINDY HYDE-SMITH, Mississippi
RICHARD J. DURBIN, Illinois MITCH McCONNELL, Kentucky
CORY BOOKER, New Jersey JONI ERNST, Iowa
RAPHAEL WARNOCK, Georgia TOMMY TUBERVILLE, Alabama
JOHN FETTERMAN, Pennsylvania CHARLES GRASSLEY, Iowa
C O N T E N T S
----------
Tuesday, June 4, 2024
Page
Subcommittiee Hearing:
Pathways to Farming: Helping the Next Generation of Farmers...... 1
----------
STATEMENTS PRESENTED BY SENATORS
Smith, Hon. Tina, U.S. Senator from the State of Minnesota....... 1
Hyde-Smith, Hon. Cindy, U.S. Senator from the State of
Mississippi.................................................... 3
Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan... 4
Boozman, Hon. John, U.S. Senator from the State of Arkansas...... 7
WITNESSES
Good, Christian, Owner/Operator, Christian Good Farms, Macon, MS. 8
Parks, Tessa, Farmer, W.T. Farms, National Farmers Union,
Northfield, MN................................................. 10
Lussier, Kevin, Chair, Young Farmers and Ranchers Committee,
American Farm Bureau Federation, Hawthorne, FL................. 12
Sattazahn, Raechel, Director of Industry and Membership
Relations, Horizon Farm Credit, Mechanicsburg, PA.............. 14
----------
APPENDIX
Prepared Statements:
Boozman, Hon. John........................................... 34
Good, Christian.............................................. 36
Parks, Tessa................................................. 40
Lussier, Kevin............................................... 49
Sattazahn, Raechel........................................... 53
Document(s) Submitted for the Record:
Stabenow, Hon. Debbie:
New and Beginning Farmers: Investing in Our Future, document
for the Record............................................. 60
Smith, Hon. Tina:
Independent Community Bankers of America, document for the
Record..................................................... 64
National Sustainable Agriculture Coalition, document for the
Record..................................................... 66
National Young Farmers Coalition farmer survey, document for
the Record................................................. 109
Question and Answer:
Good, Christian:
Written response to questions from Hon. Tommy Tuberville..... 164
Parks, Tessa:
Written response to questions from Hon. Peter Welch.......... 165
Lussier, Kevin:
Written response to questions from Hon. Tommy Tuberville..... 168
Sattazahn, Raechel:
Written response to questions from Hon. Cory Booker.......... 170
Written response to questions from Hon. Tommy Tuberville..... 172
PATHWAYS TO FARMING: HELPING THE NEXT GENERATION OF FARMERS
----------
Tuesday, June 4, 2024
U.S. Senate
Subcommittee on Commodities, Risk Management, and Trade
Committee on Agriculture, Nutrition, and Forestry
Washington, DC.
The Subcommittee met, pursuant to notice, at 2:30 p.m., in
room 328A, Russell Senate Office Building, Hon. Tina Smith,
Chairwoman of the Subcommittee, presiding.
Present: Senators Smith [presiding], Stabenow, Booker,
Warnock, Hyde-Smith, Boozman, Ernst, Tuberville, Grassley, and
Hoeven.
STATEMENT OF HON. TINA SMITH, U.S. SENATOR FROM THE STATE OF
MINNESOTA
Senator Smith. Good afternoon, everyone. I call to order
the Subcommittee on Commodities, Risk Management, and Trade.
Senator Hyde-Smith, a big thanks to you and your staff for
working together with me to organize this hearing today. I know
that Chair Stabenow and Ranking Member Boozman are going to be
joining us shortly, and I am also grateful to them and their
staffs for our work putting this together, and we appreciate
their leadership very much. Thanks all the members of the
Subcommittee, as well.
Our hearing this afternoon is going to focus on how
Congress can help support the next generation of farmers,
really this generation of farmers. According to the most recent
Census of Agriculture, the average age of a producer in the
United States is now around 58, and, of course, this number is
only going to get higher.
This, in a nutshell, is why we need to invest in the next
generation of farmers, so that this country's agricultural
sector continues to work. This is a matter of national
security, of food security, and the strength and vitality of
rural America.
Agriculture is a driving force in Minnesota's economy and
in America's economy. This is true not just in rural places but
also in urban areas and suburban communities. It is also true
that the agricultural sector faces challenges right now, and
nobody feels the ups and downs of farming more than producers
just starting out.
It can take years to establish yourself as a farmer, to
find affordable and productive land, to establish a line of
credit with a lender, and to develop and maintain a market for
your products.
From rising input costs, changing climate and weather
variability, to market consolidation that results in fewer
options for processing and fewer avenues to market, many
beginning farmers struggle to turn a profit. Today most small
and beginning farmers close the financial gap with at least
one, and often more than one, off-farm jobs.
Yet beginning farmers are some of the hardest working,
innovative, entrepreneurial, and optimistic people that I know.
What they tell me is that Federal farm programs need to work
for them too.
Here is an example. The number one challenge I hear about
from beginning farmers is finding productive, affordable land,
and that means access to cash and lending to buy or rent. The
reasons for the high cost of farmland are complicated, of
course. Many farmers today are holding onto their land longer.
Farmland is consolidating into bigger and bigger operations, or
some land is being turned into residential and commercial
developments. This is lowering the supply of land and driving
up prices.
According to the Economic Research Service at the USDA,
just 33 percent of beginning farmers and ranchers receive
assistance from USDA programs, compared to 41 percent of
established farms. Why is this happening? Again, the reasons
are complex, but a big one is that beginning farmers face a lot
of challenges finding farmland with base acres, so it is
challenging for them to use the USDA commodity safety net.
An October 2023 study from the Food and Agriculture Policy
Research Institute found that a 10 percent increase to the
Price Loss Coverage program--which is a program that helps
farmers facing a substantial drop in crop prices or revenue--
that a 10 percent increase in the PLC would result in hundreds
of millions of taxpayer dollars going into the pockets of
landlords and investors, not farmers. Commodity programs are
intended to be a risk management tool for active farmers.
To add to the challenge for beginning farmers, base acre
payments have the primary effect of increasing land prices.
Land that is counted as base acres by the commodity programs is
more expensive to purchase and more costly to rent. Today, more
than 50 percent of cropland across the country is rented, not
owned by actual farmers doing the hard work of planting and
harvesting, while also working to support their families.
Beginning farmers often have only one choice, either renting
cheaper and less productive land that does not have a base acre
designation, which results in less support from the Federal
Government. Sometimes it feels, I think, like they are getting
hit coming and going.
I know that the issue of reference prices and base acres
are very much on the mind of our Chair and Ranking Member, and
I am grateful to Chair Stabenow for laying out a sensible farm
bill framework that will support beginning farmers as they get
started and as they operate their businesses day to day. I am
looking forward to a conversation about what we can do to
update the base acre formula so that it reflects current
planting realities, not planting decisions made more than 40
years ago.
There are many other things that this Committee is working
on to help beginning farmers. I have worked closely with the
National Young Farmers Coalition on crafting the Increasing
Land Access, Security, and Opportunities Act (LASO). This bill
would directly help beginning farmers and historically
underserved farmers acquire affordable land, develop markets,
and get access to capital. I also worked closely with Chair
Stabenow and the entire Agriculture Committee to update the
Farming Opportunities Training and Outreach Grant Program--that
is a mouthful. What it does is it helps coordinate training and
outreach for emerging farmers and veteran farmers and
historically disadvantaged farmers by allowing for better
partnerships with known and trusted groups on the ground. In
Minnesota this is very valuable, organizations like The Good
Acre, the Hmong American Partnership, the Latino Economic
Development Center, and Renewing the Countryside, among many.
I know that many of my colleagues on this Committee also
have proposals to support beginning farmers and that we will be
highlighting that today during this hearing. Our diverse panel
today will provide the Subcommittee with a better understanding
of the issues facing beginning farmers as you work so hard to
stand up and then operate successful farming operations. We
really appreciate you all being here today to share your
stories and your experience, and I know that your presence here
today will help to inform the Subcommittee and the full
Committee as we work toward a bipartisan farm bill and as we
consider how best to support our country's beginning farmers.
I would like to welcome Chair Stabenow and Ranking Member
Boozman, and I will turn now to my Ranking Member, Senator
Hyde-Smith, and then would welcome the opportunity for Chair
Stabenow and Ranking Member Boozman to make opening remarks, if
you choose.
Senator Hyde-Smith, thank you.
STATEMENT OF HON. CINDY HYDE-SMITH, U.S. SENATOR FROM THE STATE
OF MISSISSIPPI
Senator Hyde-Smith. Thank you so much, Chairwoman Smith,
and thank you to our witnesses for traveling and getting here
to give us real-life stories of the real challenges. We
celebrate a lot of successes, but we realize that in reality
there are so many challenges, as well.
As Ranking Member of the Subcommittee, I am just pleased to
be a part of things like this, to ensure that the two percent
of us who feed the other 98 percent, that we continue to grow.
Throughout my time in the Senate I have loved working with Farm
Bureau, with FFA, with young folks who come in, and they say,
``I want to get into agriculture.'' Sometimes they were not
born into agriculture, and they have to go and find land or
find opportunities. As I was just speaking down there, ag
lending is such an opportunity, and we have to look around
because everybody plays a role to make this thing work and to
keep the train on the track.
You are just such a breath of fresh air--young, resilient
farmers who are willing to come, willing to sit in here and put
up with these members, these politicians, and thinking, ``Oh my
goodness. What are they going to ask me?'' You will always
remember this day, too. America needs you. We need you on this
Committee. Thank you for the willingness, and thank you for the
sacrifices that you are willing to make to continue in
production agriculture, because we know it is not always easy.
We always need to be thinking about how to ensure a bright
future for you and because of those who want to get into this
business.
Today we get to hear from young and beginning farmers and
directly to understand your unique perspective, because your
perspective matters. This is your Capitol. We represent our
States. We represent you. It is so incredibly important that
you come and give us these honest discussions of exactly what
is happening.
I am grateful we have a witness here today from Farm
Credit, which is charged by Congress to serve creditworthy
young, beginning, small farmers. I say all the time, finance is
what makes the world go around. Our three Mississippi Farm
Credit institutions are First South Farm Credit, Mississippi
Land Bank, and Southern Ag Credit. They do so much to help the
next generation. We know that is a necessity. They also award
thousands of dollars in scholarships each year to students
studying agriculture, and sponsor events like the Young Farmer
and Rancher Conferences as well as the 4-H and FFA events.
I truly look forward to hearing from you and the incredible
opportunity that lies in front of you, right in front of us, to
support young and beginning farmers. That is our job, to pass a
strong farm bill and to make sure that those opportunities
continue to exist for you and so many others just like you.
I commend the House Ag Committee for favorably reporting a
robust farm bill that modernizes the farm safety net, including
multiple provisions beneficial to young and beginning farmers.
I just look forward to working with my colleagues. I will
continue to stand to emphasize the need for more farm in the
farm bill, whether we are talking about young and beginning or
old, experienced farmers, like my husband and I. This is why
the farm safety net authorized in Titles I and XI of the farm
bill, is so critical, and why I am so dedicated to ensuring
that a new farm bill modernizes the safety net to keep up with
today's challenges, like skyrocketing input costs, interest
rates. We know when you have to borrow money to buy big,
expensive equipment, when that interest rate goes up, that can
be a game-changer in so many operations, and it can determine
whether you can continue to do this or not.
I am so grateful for you and I look forward to hearing from
you. Please stay in agriculture, and please bring others along
with you, and hold us accountable and responsible for making
sure that that pathway is obtainable for you. Write those
letters. Make those calls to make sure everybody on this
Committee and on this Subcommittee are aware of the needs out
there and that we are doing our part to help young American
farmers just like yourselves. Thank you.
Senator Smith. Thank you so much. Now I will defer to Chair
Stabenow for some opening remarks, if you would like.
STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR FROM THE STATE
OF MICHIGAN, CHAIRWOMAN, U.S. COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
Chairwoman Stabenow. Well, thank you very much, Chairwoman
Smith and Ranking Member Hyde-Smith. This is such an important
hearing, and thank you both for your leadership and bringing us
together. Yes, as Senator Hyde-Smith said, we want you in
farming. We want you to have the opportunity to get into
farming, to be able to stay, and I know this is something that
everybody on the Committee cares about.
While the average age of Americans farmers has been on the
rise, as we all know, the number of new and beginning farmers
has been increasing, as well. Nearly one-third of all producers
are beginning farmers. The problem, in addition to attracting
new farmers, as I know all of you know, is getting them the
support and removing the barriers that are keeping them from
long-term success.
There are differences. There are things that work for big
enterprises, there are things that work for established farms,
that do not create opportunity for you. It is really important
that we be focused on your needs.
The future of American agriculture and the strength of our
agricultural economy depends on the long-term success of young,
beginning farmers, and ranchers as well. However, new and
beginning farmers often face what we have already heard,
significant barriers to entering the agricultural economy, and
are left with less support from the safety net than established
farmers. That is a reality today that we need to fix. Almost
half of beginning farmers receive the majority of their
household income from off-the-farm employment.
For example, let's talk about one policy that Chair Smith
talked about, land with base acres in the commodity program is
more expensive to purchase. It is more valuable because it
comes with a payment. It is more expensive to purchase and
costlier to rent. Beginning farmers often lack the necessary
capital to access this land and are forced onto land that does
not have the automatic payment under base acres, which means
they do not have base acres. So they do not qualify for the
current commodity programs through ARC and PLC that we keep
discussing.
The House proposal to increase these programs by 70
percent--extraordinary 70 percent increase in payments--and
relax and remove payment and eligibility limits for the biggest
farms, will make land rents even more unaffordable for
beginning farmers, making access even more challenging. I think
that is something we really have to discuss.
Making crop insurance more affordable and accessible is a
much more effective way to help farmers, and it does not depend
on what you planted back in the 1980's to be able to get
support. It covers what the producer is actually growing.
Other barriers include challenges accessing necessary
capital, financing, technical assistance, hands-on training,
and risk management tools that you need to succeed. I know for
many of our farmers and ranchers the pathway into the
agricultural economy actually starts--as it does in my State--
with small fruit and vegetable or livestock operations.
The success of these farms often depends on consistent
access to local markets as well as international markets--local
markets--that provide fresh local product directly to
consumers, restaurants, and small businesses in the community.
This is an economic model that depends on strong support for
specialty crops. By the way, this is an important area of
commonality in the House and Senate bill, focusing on crop
insurance. There are many provisions there that we agree on, so
it is a great place to start.
At the same time, a focus on local and regional supply
chains, and technical assistance to navigate Federal programs
and target solutions. Last month I unveiled our Rural
Prosperity and Food Security Act, which makes significant
investments in the next generation of agriculture
professionals, whether they are on the farm, in the lab, or in
the boardroom. The proposal incorporates more than 100
bipartisan provisions, and is aimed at expanding the reach of
our farm safety net for all producers. It provides an
opportunity for training and education, opens new pathways to
getting started, ensures that risk management tools meet the
needs of new and beginning farmers.
It makes several improvements to lower the barriers to
credit. It provides the first expansion of the commodity
programs, ARC and PLC access, in more than 20 years, by
providing an opportunity for beginning farmers to use these
programs through targeted base acres established. To get into
the program, which is not what is happening right now. Crop
insurance, making it more affordable, dealing with a number of
different issues.
This is a strong bill for new and beginning farmers and
ranchers. Madam Chair, I would ask unanimous consent that the
document highlighting the provisions for new and beginning
farmers be included in the record.
Senator Smith. Without objection.
[The document can be found on page 60 in the appendix.]
Chairwoman Stabenow. I would appreciate that. I want to
thank you again, both of the leaders of this Subcommittee. I
know that we can build on bipartisan cooperation and finish a
2024 Farm Bill. It is so critical that the path maintain the
long tradition of respecting the needs and interests of the
broad farm and food coalition. That is how we get it done. That
is the foundation for a successful farm bill. I look forward to
working with you to get that done. Thank you.
Senator Smith. Thank you so much, Madam Chair.
I look forward to hearing from Senator Boozman when he
returns, but in the meantime I believe we will start with
hearing testimony from our witnesses. I will start with
introducing Ms. Parks and Ms. Sattazahn, and then Senator Hyde-
Smith will introduce the next two witnesses.
Ms. Tessa Parks is a farmer and co-owner of W.T. Farms in
Northfield, Minnesota. Tessa is a first-generation, half-
Japanese Filipino farmer who co-owns and operates a beef and
certified organic hay operation with her spouse, Wyatt, on
rented farmland in Northfield. Tessa is the newly elected
President of the Rice County Chapter of the Minnesota Farmers
Union. As part of the Sharing Our Roots farm commons cohort
since 2021, Tessa and Wyatt rotationally graze Holstein steers
to improve soil health and provide quality beef directly to
consumers. In addition to being involved in Minnesota's Farmers
Union and the National Farmers Union, Tessa is an active member
of the Land Stewardship Project and the National Young Farmers
Coalition.
Off-farm, Tessa works as an organic certification
specialist and inspector at the Minnesota Crop Improvement
Association.
Welcome, Tessa.
I would now like to welcome Raechel Sattazahn, who is
Director of Industry and Membership Relations for Horizon Farm
Credit in Mechanicsburg, Pennsylvania. Horizon Farm Credit
services 22,000 members across 100 counties in Delaware,
Pennsylvania, Maryland, Virginia, and West Virginia. In her
role, Raechel oversees Horizon's strategic industry
relationships, member education, and young and beginning farmer
efforts.
Raechel grew up on a small dairy farm in south central
Pennsylvania and is now involved in her husband's dairy farm in
Womelsdorf, Pennsylvania. Thank you. Welcome.
I will turn to Senator Hyde-Smith for introducing the next
two witnesses.
Senator Hyde-Smith. Thank you for this opportunity. What a
cool name is Christian Good. It is my pleasure to introduce
him, a corn and soybean producer from Macon, Mississippi. Mr.
Good graduated from Mississippi State University in 2016, and
shortly afterward set out to establish his own operation. He is
involved with the Mississippi Farm Bureau Federation, American
Soybean Association, and the United Soybean Board.
I am grateful we have Mr. Good here to lend valuable
insights into challenges faced by Mississippi farmers and young
farmers nationwide. Mr. Good lives on his farm with his wife,
Laura, and two children. We certainly want to welcome you.
What are those children's names?
Mr. Good. Caleb and Peter.
Senator Hyde-Smith. Caleb and Peter. I didn't have that in
there. Well, we certainly welcome you, and I look forward to
hearing your testimony.
Now I get to introduce Mr. Kevin Lussier, the Chair of the
American Farm Bureau Federation Young Farmers and Ranchers
Committee. Mr. Lussier is a graduate of Jacksonville
University, and started a 300-cow dairy farm and creamery with
his wife, Shelby, in 2020. They sell handcrafted cheese and
also run a commercial cow-calf herd. Mr. Lussier has been
involved in his county Farm Bureau and Florida Farm Bureau, and
lives in Hawthorne, Florida, with his wife and family.
Thank you for being here, as well, and that is a whole lot
like work, what I just read. Thank you.
Senator Smith. Thank you so much.
Before we turn to our witnesses I want to give an
opportunity to Ranking Member Boozman. If you would like to
speak we would welcome it.
STATEMENT OF HON. JOHN BOOZMAN, U.S. SENATOR FROM THE STATE OF
ARKANSAS
Senator Boozman. Well, I am really anxious to hear the
witnesses so I am going to submit my statement into the record.
I want to thank you two, the Chair and Ranking Member, for
bringing this forward, and then again we have got the big Chair
here, Senator Stabenow.
We are in a situation where we have a lot of important
hearings here, but I don't know that we are going to have any
more important than the topic that we are discussing today. It
is not only important now, but it is so important for the
future of agriculture.
Thank you all for pushing forward so that we might have
this hearing.
Senator Smith. Thank you so much. That is great.
Let's see. Just to keep it simple we will start with Mr.
Good, and then we will go down the panel. Please begin, and we
look forward to your remarks. Please try to keep your remarks
to roughly five minutes.
STATEMENT OF CHRISTIAN GOOD, OWNER/OPERATOR, CHRISTIAN GOOD
FARMS, MACON, MS
Mr. Good. Madam Chair, Ranking Member Hyde-Smith, and other
distinguished members of the Subcommittee, thank you for
calling this hearing today to discuss this important topic and
for allowing me to testify. Again, my name is Christian Good,
and I am owner/operator of Christian Good Farms in Macon,
Mississippi.
Since my childhood, I have always been involved in our
family farm in Noxubee County, raising corn, soybeans, cotton,
beef cattle, and catfish. After graduating high school, I went
to Mississippi State University to get my Bachelor of Science
in Agribusiness. Although I grew up in agriculture, I
established my own operation shortly after college. In 2020, my
wife Laura and I had the opportunity to purchase our first
farmland tract of around 125 acres with financing through the
Farm Credit System. We have expanded to over 300 acres of corn
and soybean production through long-term land leases.
Farming in today's overall economic environment poses some
real challenges for both beginning and experienced farmers. My
fellow Mississippi farmers are facing one of the most difficult
years in quite some time. First and foremost, our operating
costs are at an all-time high. Inflated costs for seed,
fertilizer, fuel, technology, equipment, and parts and repair
costs continue to erode the profit headwinds for producers,
both young and old. Most farmers in our community made one of
the best crops they have ever produced in 2023, and due to
these record input costs, many still lost money.
Second, the markets for the commodities that my farm
produces are currently in a significant price downturn, yet are
above the statutory reference prices established in the 2018
Farm Bill. In just two years, we have seen the market price for
corn drop $2.40 per bushel, or roughly 35 percent. The same can
be said for the soybean market that has dropped roughly 18
percent.
The third economic challenge that all of us are facing is
the rising level of interest rates on our farm operating loans.
Just four years ago, interest rates on farmland real estate
loans and farm production loans were between three and four
percent. Now, the same interest rates stand between eight and
nine percent, more than doubling the cost of borrowing for
agricultural producers. The current interest rate environment
is a substantial roadblock to many producers to expand their
operation as needed, and is certainly a challenge to many young
and beginning farmers and ranchers like myself.
Finally, as we kick off the 2024 crop season, the lack of
meaningful safety net that our current farm bill provides is a
real concern for farmers in my community. The farm generally
participates in the Price Loss Coverage, PLC, program provided
by the USDA Farm Service Agency, designed to provide a price
floor that we receive. The statutory reference prices in the
2018 Farm Bill are so outdated that I can confidently say that
if I were to receive those prices for corn and for soybeans, my
farm and my family's farm would be out of business.
I highlight these challenges to provide some context into
the importance of Congress passing a strong farm bill in 2024
for the future of all farmers, especially those beginning young
farmers.
I would like to now give you my perspective of the some of
the numerous challenges that young and beginning farmers face
in my State with farm bill programs, and provide you with some
recommendations to address some of these concerns.
One challenge on my farm is having an adequate amount of
base acres to allow for me to enroll in FSA Price Loss Coverage
Option program or other Title I risk management programs. My
farm is roughly two-third based. My recommendation would be to
devise some way for young producers to build base without
adopting a policy for mandatory base updates.
The House Agriculture Committee just recently marked up a
farm bill provision that will allow producers a one-time option
of building base on their current farming operation. For young
farmers this change would be monumental. Additionally, the
House bill makes significant adjustments to the statutory
reference prices for most commodities, bringing them more in
line with today's market situation.
Many young and beginning farmers in my State utilize the
Farm Service Agency loan programs. These programs are designed
to assist young producers with limited resources and assets to
get started farming. My experience and that of others in my
community has been that these programs are overly cumbersome,
complicated, and require too much time to complete an
application. My recommendation would be to simplify and
streamline the application process.
Additionally, the direct and guaranteed loan limits should
certainly be raised. The bipartisan PACE Act, introduced by
Senators Klobuchar and Hoeven, makes sweeping adjustments to
these USDA direct and guaranteed loan programs to make them
more effective and responsive to farmers and ranchers.
Crop insurance is also a vital tool used by young farmers
and ranchers, but the premium costs for adequate coverage is a
real challenge for young farmers. The bipartisan Crop Insurance
for Future Farmers Act of 2023, introduced by Senators
Klobuchar and Thune, extends the eligibility period from 5
years to 10 years, for beginning farmers and ranchers, thus
lowering their cost for crop insurance coverage.
In closing, thank you for the opportunity to testify before
you today. In my view, the most important thing Congress can do
is to help the next generation of farmers by passing a robust
farm bill that strengthens the farm safety net and improves
access to credit, risk management tools, and voluntary
conservation programs.
I look forward to working with you today to create a strong
farm bill that provides sound policy for young and beginning
farmers like me, and I stand ready to answer any questions that
you may have.
[The prepared statement of Mr. Good can be found on page 36
in the appendix.]
Senator Smith. Thank you very much.
We will now turn to Ms. Parks.
STATEMENT OF TESSA PARKS, FARMER, W.T. FARMS, NATIONAL FARMERS
UNION, NORTHFIELD, MN
Ms. Parks. Chair Smith, Ranking Member Hyde-Smith, and
members of the Subcommittee, thank you for the invitation to
testify.
My name is Tessa Sadae Parks, and I am a beginning farmer
in Northfield, Minnesota. My spouse Wyatt and I own and operate
W.T. Farms, raising grass-finished beef and certified organic
hay, which we sell direct to consumer. I am a member of
National Farmers Union, and President of the Rice County
Chapter of Minnesota Farmers Union. I am also active in the
National Young Farmers Coalition and Land Stewardship Project.
Farmers Union is general farm organization advocating for
the economic prosperity of family farmers, ranchers, and their
communities. Our grassroots policy recognizes the importance of
putting sound policy in place to support the next generation of
farmers who will produce the food, fiber, and fuel we need for
our security and the health of our fellow citizens.
Beginning farmers like me face significant barriers to
entry into agriculture. The farm safety net favors larger and
more established farms. Land is expensive, and capital is
difficult to access. Climate change makes farming more risky,
and ongoing corporate consolidation limits our access to a fair
and open market.
Before I dive into the issues further I wanted to share a
bit more about myself, my family, and our farm. Though I am
several generations removed from the farm, my connection to
agriculture is strong. On my mother's side, our family farmed
rice in Japan before immigrating to Hawaii where they were rice
and pineapple farmers. In one sense, I see myself as a new or
beginning farmer, but I also see myself as returning to the
land.
After I met Wyatt, who was already farming at the time, I
became increasingly involved in agriculture. The shared
experience of building a farm with Wyatt brings me great joy,
but we also face many challenges. It is exciting to grow our
businesses, adding 100 more acres of hay and buying our first
tractor this year. We cannot afford land of our own, and our
access to markets is uncertain.
A program that might have helped us get a better start and
that could help support many other beginning and underserved
farmers in the future, if expanded, if USDA's Increasing Land
Capital and Market Access Program. Senator Smith's Land Access,
Security, and Opportunities Act (LASO), would reauthorize and
improve this new USDA program, which takes a locally led,
community-based approach to helping beginning and underserved
farmers succeed. I hope LASO will be in the next farm bill.
Managing risks on our farm is important to us, especially
considering the impacts of climate change. Using conservation
practices helps us do our part to tackle climate change and
build resilience. We are glad to see there is bipartisan
support for including the Inflation Reduction Act funding for
USDA's Voluntary Conservation Programs in the farm bill.
We know that crop insurance is an important risk management
tool for many farmers, but it has been difficult to find the
right fit for our farm. We have kept records for several years
to prepare to purchase a whole-farm revenue protection policy,
but it still does not work for us. The inclusion in Chairwoman
Stabenow's farm bill framework of additional options in the
Non-Insured Crop Disaster Assistance Program, NAP, including
through a whole-farm concept, is encouraging, but more must be
done to ensure all types of farms, especially so that smaller
and more diversified farms can access crop insurance.
As important as crop insurance is for many of our
neighbors, we worry that the program lacks limits. Crop
insurance is known to increase land values, which makes it more
difficult to us and other beginning farmers to afford land. The
crop insurance program supports farms that need the most help
while avoiding providing excessive protection to the farms that
need it the least.
Another barrier to longer term success for many new or
beginning farmers is that they often operate on land that does
not have program base acres. The farm bill should provide ways
to establish new base acres, especially for beginning farmers,
which would provide greater financial stability for producers
like me.
The root causes of the financial instability our farm faces
are the monopolies that dominate agricultural markets. Our
dreams of building a successful will not be possible if we
can't get a fair price for our cattle and access to affordable
inputs. That is why I am proud of the Fairness for Farmers
campaign and that Farmers Union is standing up for fair and
competitive markets in this farm bill debate. We appreciate the
competition provisions in Chairwoman Stabenow's framework,
including the Meat and Poultry Special Investigator Act, to
strengthen Packers and Stockyards Act enforcement.
We need to make sure other Fairness for Farmers priorities
are added to the farm bill in order to improve market price
discovery and transparency, reestablish mandatory country of
origin labeling for beef, and give farmers the Right to Repair
their farm equipment. I also urge the Committee to reject any
provisions that create loopholes that weaken the Packers and
Stockyards Act.
The solutions I talked about will not be as effective in
helping the next generation of farmers if we do not ensure
access to affordable health and childcare in rural areas. Like
many farm households, we have found it difficult to afford
health care without working off-farm jobs, but the off-farm
work means we have had less time to invest in our farm
business. Lack of access to affordable health and childcare
means we may need to choose between farming and starting a
family. We appreciate the provisions from the Expanding Child
Care in Rural America Act in Chairwoman Stabenow's farm bill
framework.
It has been an honor to share my experience as a beginning
farmer with you in the ongoing farm bill debate. Passing a good
farm bill, the right farm bill, can only be done by building a
broad and strong coalition of support through addition, not
division. The right farm bill is not only one that establishes
a sound foundation for beginning farmers like me, but for all
of our rural, suburban, and urban neighbors, one that improves
the farm safety net, takes climate change head-on, and that
ensures food and nutrition security for all.
I look forward to any questions you may have. Thank you
again for the opportunity to testify.
[The prepared statement of Ms. Parks can be found on page
40 in the appendix.]
Senator Smith. Thank you very much.
Now we will turn to Mr. Lussier.
STATEMENT OF KEVIN LUSSIER, CHAIR, YOUNG FARMERS AND RANCHERS
COMMITTEE, AMERICAN FARM BUREAU FEDERATION, HAWTHORNE, FL
Mr. Lussier. Thank you. Chairwoman Smith, Ranking Member
Hyde-Smith, and distinguished members of the Committee, my name
is Kevin Lussier, and I am a third-generation dairy farmer from
Hawthorne, Florida. I am here with my wife and partner in my
operation, Shelby.
I am honored to be here today to share my experiences and
to advocate for the programs that are vital to the survival and
success of young farmers like me. I also want to make clear how
imperative it is that Congress pass a bipartisan farm bill this
year.
Today's hearing focuses on helping the next generation of
farmers. If we do not give young farmers the certainty of a
five-year modernized safety net, young farmers will be less
likely to go into the business of producing the food, fuel, and
fiber that our country and national security depend on.
When I returned home from college in 2016, I stepped into
management of our family farm. In 2017, I was able to take
advantage of the Farm Service Agency Young Farmer Program and
purchase 100 dairy cattle and 35 acres of cropland. With the
dairy industry in the middle of its worst downturn in history,
we decided we had to either grow or diversify if we were going
to sustain our farm business.
In 2019, we went back to the FSA and secured another loan
to purchase 100 additional head of Jersey cattle and cheese-
making equipment to help us begin our artisan creamery. We also
utilized the Value-Added Producer Grant through USDA Rural
Development to help market our cheese. We are now milking 300
head of Jersey cows.
Dairy farming is not just a job for me; it is a way of
life, a heritage that I am proud to carry forward and one that
I hope to pass on to my own children one day. However, the
challenges facing young farmers today are daunting, and without
adequate support and creativity from producers, the future of
American dairy farming and other small family farms like mine,
is at risk.
Access to credit is one of the most critical issues young
and beginning farmers face. Inflation continues to raise supply
costs, and the price of agricultural land is skyrocketing.
Starting and maintaining a dairy farm requires significant
capital investment, from purchasing land and equipment to
acquiring livestock and feed. Traditional lending institutions
often view agriculture as a high-risk industry. When you
combine that with the limited or zero credit history many young
farmers and ranchers have, it makes it difficult for them to
secure loans through private lending institutions on favorable
terms.
Programs like the FSA's Guaranteed and Direct Farm
Ownership and Operating Loans have been invaluable to the
success of our farm and to many other young farmers and
ranchers. Increasing the lending limits for these programs to
more accurately reflect the costs of production agriculture in
today's world would enable more young farmers to access the
credit they need to start and sustain their operations.
Dairy farmers face unique challenges related to market
volatility and pricing. Programs that offer price support and
risk management tools, such as the Dairy Margin Coverage (DMC),
program provide a safety net that can make the difference
between staying in business and shutting down. Strengthening
and expanding the DMC program will help young dairy farmers,
like myself, manage the inherent risks in agriculture and
ensure a more stable, predictable income.
Modifications to DMC will better allow our business to
manage financial risk. Modifications the Committee should
consider as it works toward a farm bill include increasing the
cap on Tier 1 coverage for DMC above five million pounds. The
House farm bill increased it to six million pounds, but moving
the cap closer to 10 million would allow for more producers to
benefit. For example, our farm milks roughly 300 head of
Jerseys, which is right near the current cap. Should we choose
to grow our business by adding cows, we would exceed the five
million pound cap, leaving part of the business with no safety
net.
Other positive enhancements that were included in the House
bill include updating DMC production history, providing a
premium discount for those producers who choose to enroll in
DMC for the life of the farm bill, and restoring the ``higher
of'' formula for the class one mover. The market disruptions
seen in the last five years due to the change in milk pricing
formula have created huge losses to our dairy farmers. In fact,
my family farm alone has lost more than $230,000 when you
compare today's pricing formula to the ``higher of.'' We have
continued to see losses in the first four months of 2024, and I
believe this change is imperative when addressing the
sustainability of the American dairy farmer.
Additionally, Farm Bureau members like me have expressed
concern over the limited availability of childcare centers and
the distance to get to a childcare facility. In order to keep
young and beginning farmers on the farm, it is extremely
important to have affordable childcare in rural areas. I thank
Chairwoman Smith for supporting the Expanding Childcare in
Rural America Act. I hope we can see this bill included in the
farm bill.
The future of American dairy farming depends on investment
in the next generation. By increasing access to credit and
enhancing risk management programs, we can ensure that the next
generation of farmers have the tools and resources we need to
thrive. I urge the Committee to consider these vital programs
and to take action to support young farmers across the country
by passing a bipartisan farm bill this year. Young farmers like
us cannot afford continued delays by Congress.
Thank you for the opportunity to speak today, and I am
happy to answer any questions you may have.
[The prepared statement of Mr. Lussier can be found on page
49 in the appendix.]
Senator Smith. Ms. Sattazahn.
STATEMENT OF RAECHEL SATTAZAHN, DIRECTOR OF INDUSTRY AND
MEMBERSHIP RELATIONS, HORIZON FARM CREDIT, MECHANICSBURG, PA
Ms. Sattazahn. Madam Chair, Ranking Member Hyde-Smith,
thank you for calling this hearing today. My name is Raechel
Sattazahn and I am Director of Industry and Membership
Relations at Horizon Farm Credit, headquartered in
Mechanicsburg, Pennsylvania. At Horizon I lead strategic
industry relationships, member education, and young and
beginning farmer efforts. I have a passion for and lifelong
experience in agriculture, and am proud to be the next
generation on my husband's dairy farm in Berks County,
Pennsylvania.
Horizon Farm Credit provides financing, crop insurance, and
related services to more than 20,000 farmers, ranchers,
agribusinesses, and rural homeowners in Pennsylvania, Delaware,
and parts of Maryland, Virginia, and West Virginia. We are a
member-owned, locally governed cooperative and a member of the
Farm Credit system. Along with 59 other Farm Credit
institutions, Horizon Farm Credit shares a critical mission to
support rural communities and agriculture with reliable,
consistent credit and financial services today and tomorrow.
Congress specifically directs Farm Credit to serve the
needs of creditworthy young, beginning, and small farmers and
ranchers, and we take that responsibility seriously. On a
national level, in 2023, Farm Credit made over 50,000 loans to
young farmers for $12.1 billion, nearly 70,000 loans to
beginning farmers for $18.9 billion, and over 108,000 loans to
small farmers for $14.9 billion. We work with each of our
customers to put together the best financing packages to meet
their needs. Often this means collaborating closely with the
FSA through their Guaranteed Loan program to support young and
beginning farmers who often have limited capital or assets as
they start farming.
Each Farm Credit Association implements a tailored program
for young, beginning, and small farmers in their geographic
territory. Just last year, Horizon Farm Credit launched a new
Grow Ahead program targeted at beginning farmers. Loans through
Grow Ahead feature discounted pricing, reduced fees, customized
loan terms, and relaxed underwriting requirements. In addition
to these financing options, Grow Ahead offers educational
offerings, mentoring opportunities, and grant programs to help
beginning farmers establish and grow successful operations.
Our JumpStart grant programs help grow a new generation of
farmers by offering $10,000 grants to startup farmers, like one
of our 2021 JumpStart winners, Joel Kuhns, and his wife Emily.
After serving in the Marine Corps for 10 years, Joel moved into
a career in the corporate sector but desired to move back to
his roots in central Pennsylvania and start a business. The
Kuhns bought 47 acres in Huntingdon County, Pennsylvania, where
they founded Odyssey Orchard, a specialty apple orchard
producing high-quality sharp and bitter sharp apples for fine
and craft cider markets. The JumpStart grant supported growth
of their new orchard.
Our Farmers on the Rise award competition honors
outstanding beginning farmers, offering $10,000 awards to
invest in their farming operations, like one of our 2022
winners, Nia Nyamweya. Nia owns and operates Beauty Blooms
Farms in Montgomery County, Maryland, where she grows certified
and naturally grown African heritage produce and flowers with
low-till and organic practices. Inspired by her Kenyan-born
father, Nia is developing a thriving ecosystem that celebrates
the diversity of agriculture and community. Nia used her
$10,000 award to purchase a walk-behind tractor and flail
mower, allowing her to mechanize her small-scale farm. This
award propelled the growth of Nia's farm and allowed her to
provide more food to her Washington, DC, community.
Additionally, our Grow Ahead program includes educational
courses such as Ag Biz Masters, which provides virtual learning
opportunities for participants to learn farm management skills
and develop a business plan. Ryan Brown and his wife Andrea are
examples of Ag Bis Masters graduates. While working as a
railroad diesel mechanic, Ryan had the opportunity to purchase
his grandfather's 100-acre dairy farm in Cumberland County,
Pennsylvania. Ryan formed a partnership with a high school
classmate who was also enrolled in Ag Biz Masters, and together
they now farm 4,000 acres in a three-county area.
Horizon Farm Credit's Grow Ahead program is designed to
meet the needs of these farmers, ensuring they have the tools
to start and grow their operations while realizing long-term
financial success.
We have also founded and funded the Farm Credit Foundation
for Agriculture Advancement in 2015. This nonprofit has awarded
more than $1.6 million through scholarships and community
education programs, recently awarding $315,000 in scholarships
to 39 students pursuing careers in agriculture in our
territory.
Thank you for the work this Subcommittee has put into
writing a new farm bill, and we urge the Senate and House to
come together in a bipartisan way to get the farm bill across
the finish line.
In my written testimony I included ideas we believe would
benefit the next generation of agriculture. Thank you very
much, Madam Chair and Ranking Member Hyde-Smith, for your
passion for the next generation of agriculture and for allowing
me to testify today. I would be happy to answer any questions.
[The prepared statement of Ms. Sattazahn can be found on
page 53 in the appendix.]
Senator Hyde-Smith. [Presiding.] Thank you all for those
opening statements. We have a vote going on now, so you will
see members leave and come back, and Senator Smith will come
back.
I will go ahead and start with my first question, and it is
going to be to Mr. Good. One farm bill proposal I have seen
floating around recently would lower adjusted gross income,
AGI, limits from $900,000 to $700,000, and impose them on land
owned by an individual or legal entity for which the adjusted
gross income exceeds $700,000. The stated objective here is,
quote, ``to restrict wealthy investors and absentee landlords
from benefiting from farm safety net programs intended to
support the active farmers who are taking the risk and
producing the crops.''
Please tell me how such a proposal would affect farmers,
especially young and beginning farmers.
Mr. Good. Thank you for the question, Senator. I think
first and foremost we have to start with the fact that farmers
want their income to be derived from the market and not from
the government. I think it is really important for us, when we
look at the price coverage option, and looking at young
farmers, to realize that young farmers especially lease a lot
of their land rather than own their land. When we look at an
equation where a farmer should be the means testing in that
equation, we are the primary operator and the farms themselves
are absorbing the risk reward from the crop.
As somebody that leases a substantial amount of land, I do
think that, again, it should be directed toward just the
tenant, just because of that do means testing.
Senator Hyde-Smith. Thank you for that honest answer. We
have agreed to go to Senator Grassley, if that is okay, at this
time, for a question.
Senator Grassley. Whoever is accommodating me on this
Committee, I thank you for doing that. I know it is rude to
come here and not hear your testimony and ask you a lot of
questions, but that is just the way the Senate operates, when
you have two votes going on at the same time.
Some of the testimony spoke to the importance of passing a
new five-year farm bill. I agree that the farm bill needs to be
updated to reflect the realities of farming today, not six
years ago when the 2018 Farm Bill was passed. Farmers today
face increase in inputs of cost on diesel, fertilizer,
chemicals, seed, interest rates.
Mr. Good, you will probably get a lot of these questions
because you have got dirt under your fingernails. You spoke
about these rising costs and the need for meaningful farm
safety net that reflects those increases. Please speak to how
an increase in reference prices for corn and soybeans would
impact your farm.
Mr. Good. Absolutely. You exactly hit it right on the head,
Senator. When we look at our crop budgets we have seen
increases in nitrogen fertilizer by three times. We have seen
seed and herbicide increase upwards of 25 percent or greater,
along with equipment. We are very much in this inflationary
environment. The reference prices, as I mentioned in my written
testimony and spoken testimony, at those price levels would not
sustain our farmer operation or our family farm's operation.
Base acres is a discussion, but I think when we look at the
importance of reference prices, with base, without the
reference price to support it, there is not much price support
that is actually happening.
Senator Grassley. Ms. Parks, going to you. You spoke about
how farm safety net can be improved to help maximize the
benefit for young and beginning farmers. I have been a strong
advocate for higher reference prices. I believe that those
higher reference prices share, there should be commonsense
payment limitations on those programs. I have been an advocate
for that for a long time. I have not been as successful as I
would like to be. As I pointed out early and often, just 10
percent of the farmer operations receive 70 percent of all
yearly farm payment subsidies.
Do you think that closing loopholes so that only actively
engaged--and that is a legal term that we use in the law--or as
I like to say, farmers with dirt under their fingernails,
receive Title I payments can help beginning farmers compete
with larger operations?
Ms. Parks. Excuse me. What was your question?
Senator Grassley. You want me to repeat it?
Ms. Parks. Please.
Senator Grassley. Okay. We have loopholes in the laws that
allow several people to get in under the payment limitations we
have. My question is, I have been for closing those loopholes,
so I would like to have your opinion. In a technical sense we
are really talking about making tighter the words ``actively
engaged.'' My question to you, do you think that would help
beginning farmers compete with larger operations if we targeted
the farm program toward medium and small farmers?
Ms. Parks. Thank you, Senator, for repeating your question.
I think it is a step in the right direction. Being a beginning
farmer comes with so many complex challenges that creating
spaces that are more equitable and accessible for beginning
farmers like myself that are on 100 percent rented ground, so
government programs and opportunities are not readily available
or accessible for us versus larger, more established
operations. By tightening up those loopholes so that we may
have a fighting chance I believe is really important.
Senator Grassley. Mr. Good, my last question will have to
go to you. I might submit a question to others in writing. I
travel my State quite regularly, getting to each of the 99
counties every year for a Q&A with constituents. What I hear is
just support Federal crop insurance. It is very vital to ensure
that farmers get through the next year despite weathering
difficult times. It is everything that is out of their control,
and I am not talking just about the weather. There are
political decisions. There are embargos. There are a lot of
things that farmers do not control.
We have a bill that goes by the acronym FARMERS Act that
would improve crop insurance. Could you speak to how increasing
the affordability of crop insurance would benefit young
farmers?
Mr. Good. Absolutely. I am supportive of FARMERS Act, the
FARMER Act. The premium support on the higher levels of
coverage is very important. I was just at a young farmer and
rancher conference meeting last weekend, and I was talking to
an individual that had a third of their soybean crop was wiped
out. Because they could not afford higher levels of coverage,
they did not receive a claim. They had to get to a situation
where they are looking to possibly self-insure with their own
cash, moving forward.
When we look at the cost of crop insurance we really need
to make it affordable for young farmers, to be able to allow
them to reach higher coverage levels so that they do not have
to dig so deep into the deductible. That is absolutely
important.
Senator Grassley. Once again, thanks to my colleagues for
helping me out.
Senator Smith. [Presiding.] Thank you so much. I am glad to
have you with us, Senator Grassley.
I will defer to Senator Stabenow, Chair Stabenow, to ask
her questions. We are in the midst of voting, for our
witnesses, so that is why we are kind of running around a bit.
Thank you for your understanding.
Chairwoman Stabenow. Well, thank you. Before Senator
Grassley leaves I want to thank you, Senator Grassley, for all
these years focusing on reforms. As you know, the bill we
passed in the Senate in 2018 included your reforms, and I
supported them. We did not make it all the way through the
process, but your effort to make sure we are talking about
active farmers in focusing this certainly affects young farmers
that we are talking about today, but it affects everybody.
That is why in the bill that I put forward does not allow
wealthy Wall Street investors or foreign landowners to get farm
payments. I mean, that is part of it too. We should be aiming
it right to the people that, as you say, have dirt under their
fingernails. Thank you.
I also wanted to say that I think, in listening today, that
there is so much common ground here. In so many ways I know
some of you have talked about the House bill, or the Senate
bill that we have put forward. There is a lot of common
approaches in understanding the challenges that we need to
have, and I think we need to start with that, where we agree.
That is how you get a farm bill. That is how you get a
bipartisan farm bill.
I did want to say on several good news fronts. I am writing
down things. Like Mr. Good, you talked about we should focus on
the PACE bill, Klobuchar/Hoeven. It is in our bill. We should
focus on the Crop Insurance for Future Farmers Act, Klobuchar/
Thun. It is in our bill. We should focus on childcare, in the
bill that you talked about, which is Braun/Marshall/Smith. It
is in our bill.
There is a lot of what you are lifting up today, we have
put forward here, which I think is very, very important.
I think the difference is to get a farm bill we cannot
split the farm community and the family safety net and get a
bill. We have to be supporting both, and that is where success
comes from. That is very, very important.
I also heard, Mr. Good, you were talking about, and others
have talked about, the disadvantage for beginning farmers who
cannot access land with base acres. If you are fortunate that
you are part of a family operation and you have base acres,
that is one thing. If you are not, or if you are new, really
new, it is hard because you cannot get those payments that we
are talking about.
The House did it one way. We got in our bill a proposal
that would establish new base acres, or allow new farmers do to
that. It is not a mandatory base update, but for new farmers it
would establish new base acres, which I think is so important.
Because we can talk about commodity payments, ARC and PLC, but
if you do not have base acres, you do not have a chance to get
that. It does not mean anything. Right now the vast majority of
what the House bill does goes to that, and unfortunately not
paid for, so we have to address that.
Another piece you have talked about is a bipartisan
proposal that we have, and I know there is support in our
Committee for lowering the cost for crop insurance,
particularly for beginning farmers, which is something we can
do. We can absolutely do. We have support, bipartisan support,
to do that.
The final piece I will say before asking a question is on
the dairy safety net. We have a lot of common ground there,
both in what the House proposed, what we have in terms of the
areas that you are talking about, boosting coverage levels,
updating production histories, extending the premium discount,
in our proposal and in the House. There is a lot of commonality
there.
I wanted to dig a little deeper on crop insurance, though,
because like the larger farm bill, the big tent for farmers
needs to be all kinds of farmers being able to get crop
insurance. This is the ongoing challenge we have tried to move
forward on, and we still have challenges. Small, diversified,
specialty crop farmers need more options for them, and that
continues to be what we need to focus on. I heard whole farm
revenue insurance, making that work, as well.
I am wondering--and I think I am running out of time here--
Ms. Parks and Ms. Sattazahn, could you talk about the role that
crop insurance plays as you are securing financing, and in
particular, the barriers that you face if you are a small or
young or diversified farmer, in getting the credit to run your
operation.
Ms. Parks. Thank you, Senator. First, to even qualify for
crop insurance programs you need three consecutive years of
submitted Schedule F. Though we have been farming we just hit
that finish line, so, in theory, all these doors have opened
for us. Unfortunately, because we are first-generation and
there is not a foundation set for us, we are trying to build
our own kind of brick by brick, crop insurance currently does
not make any sense for us in the greater scheme of things. We
will be applying for a rainfall index because we primarily
depend on pasture and hay for our farm income. The devastation
from drought and currently flooding is the scariest part of our
farm operation as far as risk. Many other beginning farmers
like us who are unable to even access--how do I put this?--
access credit so that the debt load is enough where crop
insurance is required by lenders and makes financial sense
overall, we would need maybe to win the lottery or a couple
more off-farm jobs.
Chairwoman Stabenow. That is another strategy we could put
in the bill, winning the lottery.
[Laughter.]
Ms. Parks. That is plan z, maybe.
Chairwoman Stabenow. I do not know if Ms. Sattazahn wants
to take just a second. I know I am out of time here.
Senator Smith. Please go ahead.
Chairwoman Stabenow. Thank you.
Ms. Sattazahn. You talked a lot about programs for
beginning farmers, and Ms. Parks spoke to that, as well. I will
just add to that, that is where it is really important to work
with, for beginning farmers, to form relationships with a
lender that knows and understands agriculture, and certainly
some of the programs that I pointed to there in my testimony of
what Horizon Farm Credit is doing. Certainly other Farm Credits
across the country offer similar types of programs, as well. It
is a challenge, but we are hoping to really work together,
because beginning farmers are the future of agriculture, and we
want to make sure that we are supporting them.
Chairwoman Stabenow. Thank you, Madam Chair.
Senator Smith. Thank you very much. Senator Boozman.
Senator Boozman. Thank you, Madam Chair, and thank you all
so much for being here. This is very helpful.
We have talked a lot about how important it is to put
meaningful investments in the farm safety net, and you all have
different needs in that regard, regardless of if it is ARC,
PLC, crop insurance, the milk program, disaster programs, all
of those things, so that you have got the ability to hedge your
risks. That is really the bottom line, it is so, so very
difficult. We are working hard to do that, and we talk about
putting more farm in the farm bill, and that is really what we
are trying to do.
I would like to talk to you about something I think is
really important, and this is something that there should not
be any controversy that we can do. We can do it tomorrow. Mr.
Good, in your testimony you mentioned that FSA loan
applications can be overly cumbersome, complicated--and I am
referring this to Mr. Good, but any of you could speak on this,
you are going through the same process--and require too much
time to complete. The need for application streamlining and
simplification is something I hear routinely. Can you speak
more specifically to ways in which you would like to see the
process made more accessible for producers who rely on these
programs to begin and expand your operations?
Mr. Good. Absolutely. Thank you for that question, Senator.
When I went through that farmland purchase back in 2020, it was
a situation that needed to close quickly, and basically the
struggle for me was to be able to go through the process in a
way that was timely for a real estate transaction in the real
world. I found that when I met with the Farm Credit system it
was very much more based on relationship and understanding of a
sound balance sheet and working through your business plan. All
that still happens at the FSA. It just is a long process and it
takes a lot of time. Sometimes the boots-on-the-ground staff
can shy away from getting that process done in a timely manner.
Senator Boozman. Yes. I think it is especially hard on the
smaller producers in the sense that the bigger producers are
used to this. We have really been good about bringing forward
new programs, but smaller producers just do not have the
resources sometimes that others do.
Ms. Parks, you look like you can relate to this.
Ms. Parks. Yes. Unfortunately, accessing programs like
EQIP, where you need to submit a grazing plan, which the FSA
can work with you on, is unfortunately an arduous and time-
intensive process for beginning farmers like myself. Oftentimes
when we need that support and that capital, we need it swiftly.
Then with the finish line of our three Schedule F's, you know,
FSA financing, so that we may live where our animals are rather
than commuting 30 minutes one way, 45 from the farthest field,
it will be probably through FSA financing. However, the
requirement for a very patient, understanding, seller makes it
even harder to access land, to find that right person and that
right parcel, especially with livestock. They are needy.
Senator Boozman. Very good. Mr. Lussier, we all know the
importance of off-farm income to the success of farming
operations, but many producers also rely on health care
benefits secured by a spouse that works off the farm. It is
really important for a lot of reasons.
Unfortunately, childcare can be difficult to find and
extremely costly in rural areas. I understand you have two
children and another on the way.
Mr. Lussier. Yes, sir.
Senator Boozman. I would really like to hear--you are
qualified to talk about this. Can you tell us more about the
role childcare plays in your ability, enabling you to access
capital and grow your business?
Mr. Lussier. Thank you for that question, Senator, and I
think you mentioned it, that off-the-farm income is becoming
extremely important to our young farmers and ranchers. My wife
Shelby, she works really hard so that I can live my dream every
day, and I thank her for doing that.
I represent a committee, American Farm Bureau, of 16
appointments. There is not one full-time farmer on there, that
is a part of that, 16 appointments that does not have at least
one spouse working off the farm.
When it comes to childcare, we have one option in our town.
Pricing becomes an issue there. Cost is great. We have to drive
at least 45 minutes for us to have any other options. It
creates challenges for my wife being able to work. Lots of
times I have got the kids with me at the farm, which creates
challenges in its own, as you can imagine.
Identifying those issues and realizing some of the
challenges that our young farmers have raising a family on
their farms, and raising children, is extremely important and
something I appreciate you identifying.
Senator Boozman. Well, thank you, guys. We appreciate you
being here.
Senator Smith. Thank you very much. Senator Warnock.
Senator Warnock. Thank you, Madam Chair. I came in earlier
and you were discussing the issue around base acres, and I want
to talk some more about that. The average age of farmers is
increasing. It is 58.1 nationally, and in Georgia it is older
than that. About 59 is the average age. I am glad that we are
having this hearing to talk about all the challenges around
that.
Mr. Good, we all know that farming is a tough job, with
very slim margins. I spend a lot of time with farmers down in
Georgia, and there are many reasons for this. What role does
access to farm safety net programs play in this?
Mr. Good. Absolutely. Thank you for that question, Senator.
When we look at farming, it is inherently risky, and we really
need to look at having an array of risk management tools. When
you look at Title I and Title XI, I think they work in tandem,
not against each other. I think crop insurance is vitally
important, and then I think a base acre, having a strong base
acre, and reference prices to make that base acre meaningful is
really important. I think it is absolutely important,
especially for this young generation.
Senator Warnock. I agree, and as you point out, it is
especially difficult for farmers who are starting out, young
generations. That is what we want to see. We want to see
farmers who are able to pass this from one generation to the
next. We want to see folks who, maybe it is not a part of their
family history, but are drawn to the dream of hands in the
soil, answering the prayer that many of us pray, give us this
day our daily bread. I have to say farmers are an answer to a
prayer.
How important are base acres to commodity farmers, and why
are they more difficult to obtain?
Mr. Good. Base acres are really the foundational piece to
that Title I, whether it be PLC or ARC. The importance to have
a base acre means that you have that price support and you have
that protection or that floor beneath you that you can grow off
of. Base acres are vitally important for me and my community,
absolutely.
Senator Warnock. They are expensive and hard to come by,
and this is what I had in mind when we put together my
legislation to provide underserved commodity farmers, including
new and beginning farmers, the opportunity to establish or to
increase their base acres through my Southern Crops Act. This
bill would lower the barriers to entry for the next generation
of farmers, and I was glad to see Chairwoman Stabenow, who
played a disappearing act on me--I thought she was sitting in
the chair--included my Southern Crops Act in her farm bill
reauthorization framework. We will continue to work to see that
it is included in the final farm bill. I think when we center
people we have a chance to get the public policy right. It is
folks like you that I think we have to center as we try to
figure out a way forward, not only for your benefit but for the
benefit of the American economy, for families.
Another barrier new farmers face is access to credit.
According to a 2022 study, young and beginning farmers are more
like to be credit constrained when compared to their more
established peers.
Ms. Sattazahn--is that all right? Close enough?--what
service does Farm Credit provide to producers who are just
starting out, and why are they critical to their success?
Ms. Sattazahn. Thank you for that question, Senator. Young
and beginning farmers are just that. They are young and
beginning. Oftentimes they have not had their chance to buildup
capital reserves, they may have limited credit, their risk
profile tends to be a little bit riskier compared to other
farmers. That is where the importance of working with an
organization like Farm Credit, who understands farmers, is so
critical, and really the challenges that beginning farmers
face.
Again, at Horizon Farm Credit we are extremely pleased to
be able to have launched our Grow Ahead program, where we have
a series of different loan products available that offer
discounted pricing, reduced fees, relaxed underwriting
requirements, and customized terms. We also have introduced
what we call our Farm Starter loan product. It is another
specialized product for young and beginning farmers with
limited credit and limited collateral, as well. We also look at
some qualitative attributes that sometimes these young and
beginning farmers might bring to the table, even though they
might not have some of that credit and some of that background.
We look at their experience, their attitude, their management
abilities, sometimes their education that they bring to the
table, which is extraordinarily important.
I think a lot of beginning farmers do not start farming
because they like the business aspect of it. They like to grow
the crops and raise the animals. The business side of it is
critically important, and certainly we at Farm Credit are
trying to do our best, from an educational standpoint
sometimes, in helping to build them up and then certainly
offering, from the credit side, how we are able to support
these young and beginning farmers, as well.
Senator Warnock. Thank you so much. When we consider how
the farm bill can best support the next generation of farmers
we need to ensure that we are including all farmers. We know
that as we think about young farmers, farmers of color, and
women are disproportionately represented among the share of our
Nation's agricultural producers. I am grateful for the work
that you do. Thank you.
Ms. Sattazahn. Thank you.
Senator Smith. Senator Ernst.
Senator Ernst. Yes. Thank you, Madam Chair and Ranking
Member, for this Subcommittee hearing, and I want to thank our
witnesses for being here today. I am really excited. Any time I
get to see truly young farmers I think about when and where I
grew up in southwest Iowa. I grew up on a farm, and I think
about all the farmers on the surrounding farms now back home. I
think of them as young farmers. Then I am like, oh my gosh,
they are 50. They are like my age. Because it is all the kids.
We all grew up together.
Senator Smith. Maybe they are 40 and they look 50 or 60.
Senator Ernst. It is really, really nice to have you here,
and again, I am so excited about it.
Many examples that you have given today. Thank you so much
for sharing your own personal testimony. It really demonstrates
why we need a modernized farm bill and one that focuses on
those programs that are actually going to the farm. I hope that
we do continue to make progress here in the Senate.
Ms. Sattazahn, we will start with you. In my home State of
Iowa our turkey and our egg producers have been hit very hard
by a highly pathogenic avian influenza. It hit us the first
time when I came into the Senate in 2015, and that was a
traumatic time for our producers. While we have been free of
the virus since December of last year, just in this last week
now we have identified bird flu in an egg-laying facility with
4.2 million chickens in the northwest corner of the State. Then
we have got another farm with over 100,000 turkeys in a nearby
county.
Now we do have the USDA Indemnification Program, and that
does help, but the farmer is at a loss of any income that might
have come, or would have been expected from the flock.
Ms. Sattazahn, those poultry and livestock producers are
really focused on foreign animal disease preparedness and
biosecurity. Can you walk us through what you can do for your
customers when avian influenza or another foreign animal
disease strikes?
Ms. Sattazahn. Thank you, Senator, so much for that
question, and I certainly agree. Disease outbreaks are a
significant concern in the agriculture industry, and I hate to
see it when they do happen. Unfortunately we have seen a number
of them happen here in recent years, and we certainly take that
very seriously.
I would say, first and foremost, we work very closely with
a lot of State organizations and others in the industry. We are
not in this alone. Agriculture, we are supported by a number of
different agricultural organizations that are supporting our
producers out there, as well. Staying up to date on what is
going on there with the outbreaks, the impacts that they may
have, as well, is critically important.
I will also speak to the side of, if there is an outbreak,
on a farm, a farm in our territory, certainly farmers being
open and contacting their lender as soon as they are aware of
the situation, sooner is better than later, and we can work
through a number of different options with them. Again, a lot
of times working with other agricultural organizations within
the State and across the country in those matters, as well.
Internally, within Farm Credit, we take biosecurity very
seriously. Even our staff limiting farm visits, providing them
with necessary PPE, just very critical. I think, again, that is
something that all of us in agriculture can come together for,
in support of. Certainly they are terrible when they happen,
but I think you see the agriculture industry really rally
around trying to do our part to keep our farms and the animals
safe.
Senator Ernst. Right. No, and that is great. Collaboration,
I think, is key, any time we see those types of issues sweeping
through our farms or for our producers.
Mr. Good, just very briefly, in your testimony you
mentioned that markets are critical for the commodities you
produce, particularly corn and soybeans. In my home State of
Iowa our farmers are really frustrated to watch trade kind of
go by the wayside under the Administration. In the past 3 1/2
years we really have not seen any new trade agreements, and
that is discouraging for us.
As a result, the Department of Agriculture projected
earlier on this year that the U.S. would see a record
agricultural trade deficit of $3.5 billion in 2024. That has
recently been updated to $32 billion trade deficit. Do you
agree this only hurts farmers, especially those that are just
starting out, if we are not engaging in trade agreements?
Mr. Good. Thank you, Senator, for bringing that point.
Currently, as you stated, we are in a trade deficit, and
farmers rely on foreign markets to grow demand. That is
absolutely needed. The House highlighted this need with their
bill, with MAP and FMD funding increases. To get better market
access and develop foreign markets is vitally important.
I actually just went--and I will speak this briefly--but I
went to Panama and Colombia on a trade mission alongside the
USDA just recently, back in the spring, and got to meet with
some of the end consumers in Colombia, and how the U.S. soybean
is one of the most reliable quality products available. Our
logistics are very timely. They spoke to the importance of
using U.S. soybeans over some of our greatest competitors, and
I think that is important as we find those markets, access new
markets, not the ones that we have relied on for years, but
find those new markets and do business with them.
Senator Ernst. Yes, thank you, and I appreciate all of you
again for being engaged in agriculture. Thank you, Madam Chair.
Senator Smith. Thank you so much, Senator Ernst. I will
just mention--I am going to ask my questions next--I will just
mention there was some good conversation about the importance
of having good childcare in rural communities. I know that this
is something that you and I have worked on a lot, and there are
good provisions in the framework that Senator Stabenow has
offered to forward that. That is a good bipartisan effort that
I hope we can keep going as these young farmers are trying to
figure out how to drive 45 minutes to find good childcare at
the same time that you are trying to run an operation.
I want to just quickly, if I could, ask consent from my
colleagues to submit the following items into the record. The
first is the National Young Farmers Coalition farmer survey.
The next is the National Sustainable Agriculture Coalition
report titled, ``Unsustainable: State of the Farm Safety Net.''
The third is the Independent Community Bankers of America
testimony.
Is there any objection?
[No response.]
Senator Smith. Thank you very much.
[The documents can be found on page 64-162 in the
appendix.]
Senator Smith. I am really struck by this conversation. It
is so interesting and so useful. I am struck by a couple of
things, but maybe the biggest of them is that if you are truly
starting out, just getting going, and you are not coming from
an operation where you are maybe transitioning ownership from
one generation to the next, it is like you have to kind of have
it together to get it together, you know what I mean,
financially. Like there is a first step that you have to take,
and how do you take that first step? Ms. Parks, you are
describing that so clearly when you are hoping to be able to
get to the place where you could take advantage of crop
insurance, but just getting there is a challenge.
I want to ask, start with Ms. Sattazahn, from your
perspective I am sure you just see hundreds and hundreds of
young farmers. What could we do to kind of help create that
first step so that you are able to actually participate in some
of these, crop insurance, for example?
Ms. Sattazahn. Sure. Thank you, Senator, for the question.
Yes, you describe it exactly right. There are a number of
hurdles that beginning farmers face as they get started, and I
think really we can all rally around a few different areas.
No. 1, I think the more that we can educate our young and
beginning farmers on how they can overcome these challenges,
but also providing them with the tools they need, so the
education, the business, the financial management education,
and the networking. No. 2, connecting them with other young and
beginning farmers I think is also critically important, and I
am sure a lot of these other individuals would speak to that,
as well.
I think understanding the tools that are available is
another huge hurdle. I spoke in my testimony about Joel Kuhns,
right, a veteran, sort of a second career as a farmer. Where
does he even go to get support through the Extension Service
and the Small Business Development Centers and the Farm
Credits, and all of the other organizations out there?
I think being able to showcase our resources and make sure
they are getting into the hands of folks that, again, if they
do not come from that background, they might not even be aware
that those resources exist. Being very open about sharing those
resources and leveraging one another within this community.
Again, no two beginning farmers are the same. They come to us
in a lot of different ways and capacities. To me that is the
initial first start is education and resources.
Then really taking it from there. I spoke about our
JumpStart grant program. That is an example of----
Senator Smith. That is a grant program.
Ms. Sattazahn [continuing]. a grant program, precisely.
Senator Smith. You need capital to build capital.
Ms. Sattazahn. Exactly. They might not even be ready for a
loan yet, but that grant could help them in a lot of ways,
maybe some initial equipment, business formation, those types
of things. That is why we created that program.
Senator Smith. Thank you. Ms. Parks, could you just talk a
little bit about kind of what you and your husband have found
in terms of getting access to those sorts of networks and kind
of support systems that I know is a part of the place where you
are farming and some of the good community groups we have in
Minnesota.
Ms. Parks. One of the many reasons why we decided to settle
in Minnesota was that community. However, if you do not know
how to get that introduction and get into that room, you find
yourself feeling a listless. It is a lot of time and emotional
labor to try and seek out those resources yourself, time that
we also spend dedicated toward raising calves and building our
farm business. You just cut out sleep.
Helping other beginning farmers know where those resources
are, kind of what questions to even ask. Like we have been very
fortunate with Farmers Union Insurance, that we are trying to
figure out what insurance is, in our late 20's, you know, that
kind of last push out of the nest for health insurance by my
parents was a number of years ago, but it was still a learning
process on how to advocate for yourself, how to take care of
yourself as an adult, let alone a farm. Helping beginning
farmers to kind of lead them to the water trough, so to speak,
is something that this next generation really does need.
Senator Smith. Thank you so much. I believe Senator
Tuberville is next.
Senator Tuberville. Thank you very much. Thanks for being
here today. Great topics, farm bill and the future of our
Nation's agriculture industry. I get very depressed when I go
home to Alabama. Obviously farmers put food on our tables, but
unfortunately a lot of people across this country think that
all the crops and the meat come from out back of Walmart and
Publix and Piggly Wiggly's. They need to wake up and smell the
roses before it is too late.
We have hardworking people that believe in conservation.
The EPA is unbelievably hard on our farmers, unfortunately.
They need help. Everywhere I go they need help with the rising
input costs, fluctuating prices. They cannot control the
weather, obviously. Costs are up. Income is coming down. Just
the last few years we have lost 25,000 farmers that have left
the industry, and over 150,000 farms have closed. I talked to
two farmers last week in Alabama who said, ``Game, set, match
this year if I can't make a little money.'' Can't afford to pay
back the bank.
We have got to open our eyes to this because we have to
eat. We cannot depend on people from other countries to supply
what we need. Plus we need to make sure that our farmers are
held to a standard where they can compete with people that we
import from.
Mr. Good, the farm bill that passed out of the House Ag
Committee allows for a one-time allocation of base acres to
growers using a planting history from 2019 to 2023. Do you see
this opportunity to access base as encouraging to beginning
producers, and what impact will this have from an economic
perspective?
Mr. Good. Absolutely. Great question, Senator. I see the
opportunity, especially in the House provision, where they have
an update of base for everybody. Because I think, as you
stated, inflation is not choosing sides. Inflation is hitting
all of us. Like I addressed earlier, we are seeing it in seed,
fertilizer, equipment, in every area. To have the safety net,
we see the market fluctuations of just address the need for
more markets.
I think the base is an opportunity. It is a foundational
piece to be able to build that risk management portfolio, and
for young farmers, especially, that, as we stated, their
balance sheets are not as strong.
Senator Tuberville. It is hard to understand how just in
the last two or three years the prices of this equipment has
doubled and tripled and quadrupled in amount of money. I know
we do not make a lot in this country anymore. We need to get
back to that. The manufacturing and a lot of it, it says it is
made in America but it goes by way of other countries before it
actually has the USA imprint put on it.
Do you see that? Are you hearing that from people that you
work around?
Mr. Good. Absolutely. I think as we look at precision
agriculture, I think that is a very vital piece. Just on my
farm operation we are able to demo the John Deere See & Spray
sprayer to be able to reduce inputs. With this technology there
are additional costs. When we look at equipment, it seems to
follow the way that the commodity markets do. As farmers we are
putting an increasing amount of our budget into equipment,
which is a very big issue for us young farmers, as well.
Senator Tuberville. Yes. At Auburn, where I live, a land-
grant university, they have a great ag school, vet school. We
see it growing to a certain point, but I do not understand, you
know, what a lot of these young people are looking at, to be
honest with you. I know they talk to their parents about the
future of farming and possibly going back and taking over their
farms.
There are over 20,000 young and beginning producers in
Alabama, 20,000, many of whom will want to pass their farms on
to the next generation. Any of you can answer this. Mr. Good,
you can start with this. Can you speak to the importance of
extending President Trump's 2017 Tax Cuts and Jobs Act
provisions such as the increased estate tax exemption, step-up
in basis, and bonus depreciation to support farm families?
Mr. Good. Absolutely. I think at the core of what we need
is a sound tax policy. When I think about my wife, Laura, and
my two boys, Caleb and Peter, I am looking to build something.
I am looking to build something that is meaningful in a way
that we are feeding the world. For me to not be able to pass it
on to my children in a meaningful way, or to give them more of
a liability as a gift, I think that is against what we are
looking to do here. My family is in full support of the step-up
basis and extending that estate tax limit.
Senator Tuberville. Well, God bless all farmers, because
you do not get a lot of help. You get a lot of ridicule. You
get the climate people looking at you, wanting to change all
the rules in midstream. That is unfortunate because farmers
care more about conservation than anybody could ever imagine.
Thanks for what you all do, and thanks for being here
today. Thank you, Madam Chair.
Senator Smith. Thank you, Senator Tuberville. Senator
Hoeven.
Senator Hoeven. Thank you, Chairman and Ranking Member, for
letting me join you on your very important hearing today on
young people in agriculture. I think the average age of our
farmers and ranchers now is about 60 years old, which does not
seem that old to me, but it probably seems pretty darn old to
all of you. The reality is we have got to find ways to get more
young people into farming and ranching, and then make sure they
are successful, right.
The capital requirements are tough. The markets are tough.
I mean, it is a tough business. It is a high-tech business now.
These beginning farmer programs are really important.
I want to start with crop insurance, because one of the
things that I want to make sure we do in this farm bill is that
we make it more affordable to buy crop insurance at a level
that is effective for you, whether it is at the enterprise
level, so at your farm level, or the supplemental coverage
option (SCO), to give you that added lift, you know, when you
have tough weather and you get kind of a marginal crop.
First I would ask for all of you, do you agree that crop
insurance is a really, really vital risk management tool for
our farmers and ranchers, and it has got to be in the farm
bill, and it has got to be in the farm bill in a way that is
affordable. Would you all agree with that?
[Witnesses agree.]
Senator Hoeven. Okay. Then let's take it to the next level.
Now let's talk about beginning farmers. Senator Tester and I
are working on some of the programs on the rancher side,
whether it is LFP or LIP or ELAP and all those, to make them
more dependable and consistent for cattle producers.
Talk to me. What can we do for beginning farmers on the
crop insurance piece that, in your opinion, would strengthen it
and help those beginning farmers? If you just run through the
line and give me four great ideas, that would be good enough
for today.
Mr. Good. Well, I think there has already been a lot of
good progress spoken. We look at the FARMER Act. We look at the
Crop Insurance for Future Farmers Act of 2023. Both of those, I
think, create sound policy, moving forward.
Senator Hoeven. Say that once more about the FARMER Act?
Could you repeat that? I didn't quite hear it.
[Laughter.]
Senator Hoeven. You said it would be really good policy?
Mr. Good. I think so, when we can bring premium support.
Senator Hoeven. By the way, Cindy Hyde-Smith is on that
bill. Go ahead. I am sorry.
Mr. Good. I think that the premium supports is the
returning issue. I think for young farmers and ranchers they
are putting out a lot of their costs on the upfront. We see
these costs are inflated, as well. Deductibles may be the
profit margin. Deductibles may be the profit margin. I think at
the end of the day if we can reduce that deducible, we can make
crop insurance affordable, then I think that we will have a
much more solid base.
Senator Hoeven. Less need for ad hoc disaster packages too,
right?
Mr. Good. I think in tandem.
Senator Hoeven. More certainty to get your operation
financed every year, which hopefully brings down your cost of
credit.
Okay.
Ms. Parks.
Ms. Parks. Because our farm is beginning we have not yet
been able to access crop insurance that makes sense for us, so
having flexibility for the diverse number and types of farms is
vitally important. Because those of us who find themselves not
owning land and do not have that security of knowing where you
are going to farm after your leases run out, potentially,
having a safety net for what you do produce when you do produce
it is vital.
Senator Hoeven. Okay.
Mr. Lussier. Risk mitigation is the biggest part for me,
for young farmers. I had a farmer tell me one time that they
take a million dollars and they plant it this far underground
every year, and they hope that it comes up. As you look at
that--and that really struck me as we do not control the
weather. There are a lot of challenges as farmers.
I do not have any crop insurance myself, as a dairy farmer
that does not do any row crops. I take advantage of the DMC
program. I know that when I go to lenders and when I talk about
gaining access to capital, they ask me, ``Are you involved in
these programs that can mitigate the risks and give you the
opportunity to ensure that you are going to be able to make
these payments?''
Senator Hoeven. Okay.
Ms. Sattazahn. Yes, and I will just put an exclamation
point on it all that risk management is critically important to
all farmers, certainly beginning farmers, as well, and add to
that, I mean, I certainly support all the different crop
insurance programs out there. In Pennsylvania we have a lot of
dairy producers, so dairy margin coverage particularly of
interest, as well. Certainly we encourage Farm Credit
borrowers, other producers out there, that is a way to help
against all the different risks of farming, and certainly
support that.
Senator Hoeven. Affordability and then making sure that
those deductibles do not eat up any margin. Then, Mr. Lussier,
you brought up the access to credit. Senator Klobuchar and I
have a bill that would increase the credit limits for FSA and
some of the other programs. Then we need enhancements under
beginning farmer and rancher, where you can borrow at a lesser
cost.
Any ideas that you all would have that you would want to
throw it on the FSA, the financing, the funding piece for
beginning farmers?
Mr. Lussier. I think you hit the nail on the head when
talking about raising those limits. I have been able to take
advantage of three FSA loans, and just the cost of land has
skyrocketed. The cost of inputs. To buy a facility and then put
cattle on it, and buy the equipment to be able to farm it,
those numbers have increased so much. Those limits need to
follow suit.
Senator Smith. Thank you so much. I think that Senator
Hyde-Smith has a question before we wrap up. Thank you.
Senator Hyde-Smith. Yes. Just one more. I think this is
lingering on and I can submit the rest. Mr. Good, you had
mentioned catfish production. You and I are from a State that
produces more catfish than any State in the entire country.
Arkansas and Alabama come in behind us. A lot of folks just
simply do not understand or know how to manage or how
challenging that is.
Please share more with the Subcommittee about how farm-
raised catfish production works and how some of the challenges
faced by those catfish producers might prohibit beginning
farmers from getting involved in agriculture in that way.
Because aquaculture is very important in Mississippi, and we
still have a market. Could you kind of put some highlights on
that, of how the challenges are?
Mr. Good. Absolutely. Thank you, Senator. In the catfish
business it is very capital intensive in the beginning. We have
to put up levees. That means moving dirt to make it happen.
Then we stock our ponds with the fish, and then we harvest them
at the end. It is not smooth as it sounds. In the middle of
that process, and even from the beginning, we experience a
nearly constant disaster due to federally protected migratory
birds eating our fish, and this sum totals up to approximately
$65 million a year. That cost goes from trying to scare off the
birds to the birds eating the fish, which is our final product,
and then also the diseases that can infiltrate a pond from
those migratory birds.
Adding bird depredation as an eligible loss to ELAP would
provide a desperate safety net for these catfish farmers. If
you are a catfish farmer coming in, and you are laying out all
that upfront cost for the infrastructure, and then at the end
of the day your profit is literally consumed, we do need a
safety net desperately. It has been one that is long overdue.
Senator Hyde-Smith. Thank you for those comments. You have
all done great.
Senator Smith. Well, thank you so much. Thank you again to
our witnesses for being here today and for providing testimony.
We often mention, in the Agriculture Committee, that we are
lucky to work in a space that is not as partisan as other
spaces, although we certainly have our regional differences. I
look forward to continued work that we can do to pass a
bipartisan bill, and I am very grateful for the input and the
insight that you all provided to us as we continue that work.
For Senators who wish to submit questions for the record,
those questions are due one week from today, which will be
Tuesday, June 11th. For our witnesses, you will have two weeks
to respond to any questions for the record.
Thank you again, and with that this hearing is adjourned.
[Whereupon, at 4:37 p.m., the hearing was adjourned.]
=======================================================================
A P P E N D I X
June 4, 2024
=======================================================================
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
=======================================================================
DOCUMENTS SUBMITTED FOR THE RECORD
June 4, 2024
=======================================================================
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
=======================================================================
QUESTIONS AND ANSWERS
June 4, 2024
=======================================================================
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
[all]