[Senate Hearing 119-016]
[From the U.S. Government Publishing Office]
S. Hrg. 119-016
PERSPECTIVES FROM THE FIELD:
FARMER AND RANCHER VIEWS ON THE
AGRICULTURAL ECONOMY, PART 2
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HEARING
BEFORE THE
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED NINETEENTH CONGRESS
FIRST SESSION
__________
February 26, 2025
__________
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
59-424 PDF WASHINGTON : 2025
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COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
JOHN BOOZMAN, Arkansas, Chairman
MITCH McCONNELL, Kentucky AMY KLOBUCHAR, Minnesota
JOHN HOEVEN, North Dakota MICHAEL F. BENNET, Colorado
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
JAMES C. JUSTICE, West Virginia RAPHAEL WARNOCK, Georgia
CHARLES GRASSLEY, Iowa PETER WELCH, Vermont
JOHN THUNE, South Dakota JOHN FETTERMAN, Pennsylvania
DEB FISCHER, Nebraska ADAM SCHIFF, California
JERRY MORAN, Kansas ELISSA SLOTKIN, Michigan
Fitzhugh Elder IV, Majority Staff Director
Caleb Crosswhite, Majority Chief Counsel
Jessica L. Williams, Chief Clerk
Lauren Santabar, Minority Staff Director
Chu-Yuan Hwang, Minority Chief Counsel
C O N T E N T S
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Wednesday, February 26, 2025
Page
Hearing:
Perspectives From the Field: Farmer and Rancher Views on the
Agricultural Economy, Part 2................................... 1
----------
STATEMENTS PRESENTED BY SENATORS
Boozman, Hon. John, U.S. Senator from the State of Arkansas...... 1
Klobuchar, Hon. Amy, U.S. Senator for the State of Minnesota..... 2
WITNESSES
Panel I
Erickson, Bret, Chairman, U.S. Government Relations Council,
International Fresh Produce Association Edinburg, TX........... 6
Hinton, Jeremy, Chairman, Kentucky Horticulture Council,
President, LaRue County Farm Bureau Kentucky Farm Bureau
Federation, Hodgenville, KY.................................... 8
Boring, Tim, Director, Michigan Department of Agriculture and
Rural Development, Stockbridge, MI............................. 10
Rhinewalt, Anna, Council Member, Mississippi Farm Bureau
Federation/Mississippi Sweet Potato Council, Senatobia, MS..... 11
Etcheverry, Ben, President, New Mexico Chile Association, Deming,
NM............................................................. 13
Panel II
Lehfeldt, Ben, President, American Sheep Industry Association,
Lavina, MT..................................................... 32
Wehrbein, Buck, President, National Cattlemen's Beef Association,
Waterloo, NE................................................... 34
Howrigan, Harold, Board Member, National Milk Producers
Federation, Fairfield, VT...................................... 35
Stevermer,Lori, President, National Pork Producers Council,
Easton, MN..................................................... 37
Zimmerman, John, Chairman, National Turkey Federation,
Northfield, MN................................................. 38
Wesner, Tony, Board Member, United Egg Producers, Seymour, IN.... 39
----------
APPENDIX
Prepared Statements:
Erickson, Bret............................................... 52
Hinton, Jeremy............................................... 62
Boring, Tim.................................................. 67
Rhinewalt, Anna.............................................. 74
Etcheverry, Ben.............................................. 83
Lehfeldt, Ben................................................ 87
Wehrbein, Buck............................................... 91
Howrigan, Harold............................................. 103
Stevermer, Lori.............................................. 113
Zimmerman, John.............................................. 121
Wesner, Tony................................................. 125
Document(s) Submitted for the Record:
Boozman, Hon. John:
H5NX Vaccine, letter for the Record.......................... 136
U.S. Department of Agriculture, letter for the Record........ 139
McConnell, Hon. Mitch:
Introduction of Senator Mitch McConnell, letter for the
Record..................................................... 141
Smith, Hon. Tina:
Minnesota Farmers Union, letter for the Record............... 142
Booker, Hon. Cory:
Brief for Independitn Family Famrers, document for the Record 144
Lujan, Hon. Ben:
Written testimony from Gene Baca of Bueno Foods, document for
the Record................................................. 188
Thune, Hon. John:
United States Cattlemen's Association, letter for the Record. 191
Question and Answer:
Erickson, Bret:
Written response to questions from Hon. Raphael Warnock...... 196
Written response to questions from Hon. Adam B. Schiff....... 197
Boring, Tim:
Written response to questions from Hon. Michael Bennet....... 202
Written response to questions from Hon. Adam B. Schiff....... 204
Etcheverry, Ben:
Written response to questions from Hon. Ben Ray Lujan........ 207
Written response to questions from Hon. Adam B. Schiff....... 208
Lehfeldt, Ben:
Written response to questions from Hon. Michael Bennet....... 210
Howrigan, Harold:
Written response to questions from Hon. Adam B. Schiff....... 212
Zimmerman, John:
Written response to questions from Hon. Adam B. Schiff....... 213
Wesner, Tony:
Written response to questions from Hon. Raphael Warnock...... 214
Written response to questions from Hon. Adam B. Schiff....... 214
PERSPECTIVES FROM THE FIELD: FARMER AND RANCHER VIEWS ON THE
AGRICULTURAL ECONOMY, PART 2
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WEDNESDAY, FEBRUARY 26, 2025
U.S. Senate
Committee on Agriculture, Nutrition, and Forestry
Washington, DC.
The Committee met, pursuant to notice, at 10:32 a.m., in
Room SD-216, Dirksen Senate Office Building, Hon. John Boozman,
Chairman of the Committee, presiding.
Present: Senators Boozman [presiding], Hoeven, Ernst, Hyde-
Smith, Marshall, Tuberville, Justice, Grassley, Moran,
Klobuchar, Bennet, Smith, Booker, Lujan, Warnock, Welch,
Schiff, and Slotkin.
STATEMENT OF HON. JOHN BOOZMAN, U.S. SENATOR FROM THE STATE OF
ARKANSAS, CHAIRMAN, U.S. COMMITTEE ON AGRICULTURE, NUTRITION,
AND FORESTRY
Chairman Boozman. Good morning, and welcome. It is my
privilege to call this hearing to order. I would like to thank
our witnesses for taking time away from your families and your
farms to share your expertise with our Committee today.
Before we get started, I want to take a moment to thank
Agriculture Secretary Brooke Rollins for her announcement today
on a bold strategy to address avian influenza. The virus
continues to threaten our poultry and dairy farmers with ripple
effects throughout the food supply chain. I applaud the Trump
Administration for prioritizing a response from day one.
This hearing is the second of a series to examine the state
of the agriculture economy by getting the perspective of
leading producers across our country. These hearings are meant
to help the Committee understand the challenges our farmers and
rural communities currently face as we work to pass a five-year
farm bill.
In our first hearing, we heard from some of our major farm
groups and row crop producers about their unique experiences.
Today, I am delighted to welcome two additional very important
constituencies to the discussion. First, we will hear from
several specialty crop growers and stakeholders from various
parts of the country. The specialty crop industry continues to
face unique pressures: the high cost of labor, competition with
cheap imports, pests and disease, limited access to risk
management tools, and the list goes on and on.
Our second panel will feature livestock, poultry, and dairy
producers.
While they have seen some improvement in economic
conditions in recent years, significant headwinds remain.
Livestock production remains highly capital-intensive, and high
interest rates and elevated production costs have trimmed
margins. Animal disease threats like avian influenza and new
world screwworm have added tremendous uncertainty across all
aspects.
Burdensome government regulation at both the Federal and
State level have also threatened viability of livestock
operations. For example, California's Prop 12 has required many
of our pork producers to spend millions of dollars retrofitting
their barns while costing the California consumers nearly $300
million annually.
In the next farm bill, it is critical we improve risk
management tools to support both our specialty crops and
livestock producers. It is important to continue investing in
our research and marketing programs. We must invest in our
animal health programs to prevent and respond to disease
outbreaks, and we must address regulatory overreach burdening
all producers. I am confident the Members on this Committee
stand willing and ready to roll up our sleeves and get to work
in passing a new farm bill.
I look forward to hearing from today's witnesses, and I now
turn to Ranking Member Klobuchar for her opening comments.
STATEMENT OF HON. AMY KLOBUCHAR, U.S. SENATOR FROM THE STATE OF
MINNESOTA
Senator Klobuchar. All right. Well, thank you very much,
Chair Boozman, and thank you to all our witnesses, including
Lori Stevermer who is here from Minnesota with our pork
producers, as well as John Zimmerman from our State with the
turkey producers. We are excited to have them here.
There was bipartisan agreement during our last hearing that
our Committee should continue to work together to ensure that
farmers and consumers have the certainty that they need in a
difficult economy. This means passing a bipartisan farm bill
that is reflective of the needs of the people of this nation.
It also means tackling today's challenges head-on, whether
they are avian flu, whether they are input costs, whether they
are these potential tariffs that I do not agree with--I just
wanted to put a footnote on that--or whether they are ensuring
that our farmers and ranchers have the tools they need to
thrive.
Our witnesses today are going to shed light on the
challenges facing our farmers, including those who grow fruits
and vegetables, and I really appreciated the words of Chair
Boozman about the headwinds that these farmers face. We also
are going to focus on those who milk cows day in and day out,
those who raise the high-quality beef, and pork, and poultry
that fuels us.
Today's first panel, as noted, is going to focus on
specialty crops. I think instead of calling them specialty
crops, given that they are everything from potato, to
asparagus, to apples, to the chiles from New Mexico, which is
way too hot for Minnesota, but I cannot wait to try them, we
should call them omnipresent crops. They are crops that really
matter to the people of this country.
According to the most recent Census of Agriculture, there
are over 5,000 farms in Senator Smith's and my State growing
these crops representing over $3 billion in market value. That
is why the Specialty Crop Block Grant Program is so important.
Other things we can do as we look at the challenges ahead is we
can improve crop insurance options for these growers, and give
them the tools they need to prevent devastating pests and
disease outbreaks. We can protect our investments in critical
nutrition programs, allowing Americans to afford more fruits
and vegetables.
We must stand with these farmers as they face the workforce
shortages, emerging diseases, import pressures that threaten
their economic viability. The one thing we do not want to do is
to make things worse.
Our second panel will focus on our poultry, livestock, and
dairy farmers. Now more than ever, we must support our poultry
and livestock producers as their farms are hit by avian flu.
This outbreak has impacted more than 160 million birds and
nearly 1,000 dairy herds across the country, causing economic
hardship for producers and driving up food costs for their
families.
I look forward to reading and learning about the proposal
set forward by the Secretary of Agriculture today. It was the
number one thing I raised with her, and we look forward to
reviewing it, and I am sure we will always have suggestions.
We must follow the science to build on the existing
national testing strategies and support for farmers, engaging
with experts to develop new prevention and response methods,
and a thoughtful vaccine strategy. Any vaccine strategy must be
supported by, of course, field trials, clear plan for outreach
and deployment, and proactive engagement with our trading
partners to mitigate market disruptions.
This also means keeping nonpartisan experts in the Federal
Government, including veterinarians, animal disease
researchers, and frontline animal disease responders. My
colleagues and I, of course, have pressed when some of these
people were laid off. I understand some of them are being
rehired, but we just cannot mess around with this right now.
We must make sure that the USDA has the resources available
to respond to this outbreak. This outbreak also underscores the
need to invest in the National Animal Health Lab Network,
National Animal Vaccine Bank, and the National Animal Disease
Preparedness and Response Program. Senator Cornyn and I
established these programs in the 2018 Farm Bill and they were
of help during these last outbreaks, but we have to do more.
In addition to giving livestock producers the support they
need on their farms, we need to make it easier, not harder, to
reach new markets. The recent proposal to implement sweeping
tariffs on Canada and Mexico, even if delayed 30 days, has
already caused chaos in the marketplace, and threatens farmers'
livelihoods.
Our farmers in our State in particular, stand to suffer
from these tariffs. Around a million pigs cross our border with
Canada every single year. On top of that, almost two weeks ago,
the President announced new plans to develop reciprocal tariffs
on all countries that would go into effect as soon as April.
While we do not know the details of where and how high these
new tariffs would be, we do know that agriculture often bears
the brunt of retaliatory tariffs, and this puts more markets in
jeopardy as farmers try to plan this year.
The bottom line is that our farmers need certainty. The
certainty of a fair playing field and transparent practices for
all, the certainty that we are investing in the research and
response programs that protect their crops and their flocks,
and the certainty in trade policy to continue doing what they
do best; feeding and fueling the world. All of this will be
important to keep in mind as we continue the Committee's task
of passing a bipartisan farm bill.
As I have said often, I am so excited to work with Senator
Boozman, and our team, I am excited about our new Members.
There is Senator Slotkin at the end of the row that are on this
Committee, and Senator Justice, and work together to get a farm
bill done. It could not be more important. Thank you very much,
Chair Boozman.
Chairman Boozman. No, thank you. I also am really excited
about our Committee this year. We just simply have a great
Committee of a lot of outstanding individuals. Before we begin
introducing our first panel of witnesses, I request unanimous
consent to submit for the record a number of written
testimonies and materials the Committee has received for
today's hearing. Without objection, so ordered.
[The letters can be found on pages 136-140 in the
appendix.]
We will now introduce the first panel of witnesses, Mr.
Bret Erickson. I am happy to introduce Bret who serves as Chair
of the U.S. Government Relations Council for the International
Fresh Produce Association. Bret lives in the Rio Grande Valley
in Texas, and is a Senior Executive for J&D Produce, which is a
family owned and operated grower, packer, and shipper of more
than 40 products.
I had the pleasure of meeting Bret last year during a farm
bill listening session in Texas with Senator Cornyn. Bret,
thank you so much for being here today.
Mr. Jeremy Hinton. Senator McConnell was unable to be with
us this morning, but he is very proud to have Jeremy Hinton
here before the Committee today. I am submitting Senator
McConnell's remarks regarding Jeremy into the record. Without
objection, so ordered.
[The letter can be found on page 141 in the appendix.]
Chairman Boozman. Jeremy Hinton is an eighth-grade--I got
to slow down.
[Laughter.]
Chairman Boozman. Jeremy Hinton is an eighth-generation
farmer from Kentucky. He and his wife Joanna, own and operate a
diversified farming operation, that in addition to soybeans,
and burley tobacco, includes two direct-to-consumer farm
markets, selling a variety of greenhouse flowers, herbs,
fruits, and vegetables. Jeremy, again, thank you for being
here.
Dr. Tim Boring serves as the Director of the--are you going
to introduce him? I am sorry.
Senator Klobuchar. Yes, Senator Slotkin.
Chairman Boozman. Senator Slotkin.
Senator Slotkin. Thank you. Thank you for not stealing my
thunder, Mr. Chairman. It is an honor to introduce Tim Boring,
the Director of Michigan's Department of Agriculture and Rural
Development, or MDARD, as we call it. Director Boring supports
the department's commitment to investing in our State's urban
and rural farming communities, providing opportunities for food
and agriculture businesses, protecting consumers from the pump
to the plate, and preserving Michigan's amazing natural
resources, particularly our Great Lakes.
He approaches those issues with a focus on economic
prosperity, regenerative agriculture, and diversifying
agricultural production across the State. We like to say in
Michigan that we used to say that we are the second most
diverse agricultural State in the country, after California. We
have changed the tagline; we are the most diverse agricultural
State in the country with regular access to water. We are----
Senator Klobuchar. You are doing that when Senator Schiff
is out of the room?
Senator Slotkin. He is out of the room. I managed it. I
told him to get out before I started picking on California. He
is a six-generation farmer in Stockbridge, Michigan. I have
visited his family farm. This is personal to him. He got his
Ph.D. from Michigan State University--Go Green--and I have had
the pleasure of working with him for many, many years.
I just want to take a particular moment in saying what Mr.
Boring has done in preventing avian flu in the State of
Michigan. Michigan was hit early with avian flu. I think
watching the State of Michigan, again, without regard to party,
without regard to politics, just doing what we needed to do to
control the outbreak and spread of avian flu has been really an
example for the rest of the country.
For all he does every day for our specialty crops, I know
we have our potato farmers in the room and others, thank you to
Tim Boring, and I am glad to share his wisdom with the greater
panel here.
Chairman Boozman. Thank you. Senator Hyde-Smith, to
introduce Mrs. Rhinewalt.
Senator Hyde-Smith. Thank you, Mr. Chairman, very much. It
is my pleasure to introduce one of our witnesses today from
Mississippi. I had the pleasure of meeting with her earlier.
Such a delightful meeting, and I so appreciate your efforts and
you being here today.
We have Mrs. Anna Rhinewalt. She and her brother and her
husband operate Sandy Ridge Farms in Senatobia, Mississippi,
and she has just completed a three-year term serving on the
Mississippi Farm Bureau Federation, State Young Farmers and
Ranchers Committee, which is so viable in our State and such a
good organization.
She currently serves on the Mississippi Sweet Potato
Council Board, as well as on the Mississippi Farm Bureau Labor
Committee, which we all know the issues with labor. Thank you
for your efforts there. Just last year, Anna was named the 2024
Mississippi Farm Woman of the Year.
We just want to welcome you today, and I am sure there is
several people watching you, and I bet Evelyn Ruth, and Eleanor
Grace are watching you today as well. She is the mother of two,
but you sure do a great job where you are, and I thank you for
representing Mississippi as well as you do.
Chairman Boozman. Very good. Senator Lujan will introduce
Mr. Etcheverry.
Senator Lujan. Thank you, Mr. Chairman. It is an honor to
introduce Mr. Ben Etcheverry, a dedicated community leader,
agricultural expert, and chile advocate from Deming, New
Mexico.
Mr. Etcheverry is a leader of New Mexico's farming
community, and works tirelessly to represent the priorities of
our local farmers. As the President of the New Mexico Chile
Association, he plays a crucial role in promoting and
protecting New Mexico's pride and joy, our chile, and that is
with an E, not with an I. Mr. Etcheverry was raised on an
alfalfa farm in Carlsbad, New Mexico, where his life in
agriculture began. He is also the proud husband of Jessica, and
the proud father of Samuel.
Currently, Mr. Etcheverry is the Agricultural Operations
Crop Manager of Olam, Food Ingredients Chile Pepper Division,
in Deming, where he oversees a plant breeding program
specializing in chile pepper genetic innovation. He has
dedicated his career to ensuring the chile industry thrives in
our State and preserving this important agriculture tradition
for future farmers and chile lovers.
Now, as was pointed out, there is sometimes some heat
involved with our chile products, but I am telling you, it is
always flavorful. For those of you that have not fallen in love
with it yet, you let me know and I will serve it for you. I
will prepare it myself.
Mr. Etcheverry holds both an undergraduate and a master's
degree in Agribusiness from New Mexico State University. Now,
while attending NMSU, he was employed by the Chile Pepper
Institute. His time at NMSU fostered his love of chile
production in New Mexico agriculture, with a lifetime of
experience in the field, he has built a deep understanding of
the industry and its impact on New Mexico's economy and
culture.
Ben, I want to recognize your extensive knowledge and
experience. We appreciate you being here today, and especially
the sacrifice of all of our panelists. Taking time away from
your families, from your responsibilities at home to be here as
well. This matters and these conversations matter as well.
Thanks for having us. I yield back.
Chairman Boozman. We look forward to some Lujan and chile.
Senator Lujan. Yes, sir.
Chairman Boozman. Again, thank all of you so much for being
here. Mr. Erickson, you are recognized.
STATEMENT OF BRET ERICKSON, CHAIRMAN, U.S. GOVERNMENT RELATIONS
COUNCIL, INTERNATIONAL FRESH PRODUCE ASSOCIATION, EDINBURG,
TEXAS
Mr. Erickson. Thank you, Chairman Boozman, Ranking Member
Klobuchar, Members of the Committee.
Little Bear Produce is a family owned grower, packer,
shipper, and fresh cut processor headquartered in Edinburg,
Texas. Jimmy and Diane Bassetti came to Texas from Vineland,
New Jersey in 1984, and started a small mom-and-pop brokerage,
which has grown into a multi-national agribusiness, employing
nearly 200 full-time employees with comprehensive benefits
including health and life insurance and 401ks. We also hire an
additional 500 to 600 seasonal workers, primarily through H-2A
to harvest and pack our products.
Labor costs remain the biggest threat to the future of the
U.S. fresh produce growers. In Texas, our labor costs have
essentially doubled in just five years. We are currently at $23
an hour for our cost. The federally mandated Adverse Effect
Wage Rate, inflates labor costs beyond market realities, making
it difficult to compete with foreign producers. We urge USDA to
revise the farm labor survey to reflect base wages only.
Additionally, we would request USDA to appoint an Agriculture
Liaison to the Department of Labor to help guide policy that
impacts food and farm production.
Texas farmers are facing severe water shortages, in part,
due to Mexico's failure to meet its obligation under the 1944
Water Treaty. Mexico is required to deliver 200,000-acre feet
of water per year. They are now in debt 1.3-million-acre feet,
which is over six years behind schedule. While other regions
pray for recovery from hurricane disasters, we are literally
praying for hurricanes to refill our reservoirs.
Less than 10 years ago, we were paying about $30 per acre
foot of water. Today, it is as high as $225 per acre foot and
climbing. That is if we can find it. Meanwhile, Mexico is
withholding six years' worth of water, and using it to grow
competing crops like onions and pecans.
On farm bill priorities, specialty crops represent nearly
half the total U.S. farm gate crop value, yet they receive less
than one percent of farm bill funding. We would urge
investments in research and development for increased yield
sustainability, mechanization and automation, expanded crop
insurance. Texas produces nearly 65 specialty crops. We have
insurance programs for three. Market development support to
stabilize pricing and competitiveness, and Federal procurement
reform to increase specialty crop purchases.
On crop protection and regulatory challenges, fresh produce
growers are rapidly losing access to essential pest management
tools. As key pesticides and herbicides are phased out, there
are a few viable alternatives and even fewer in the EPA's
approval pipeline. A recent example is Dacthal, a herbicide
relied on for onion production. After 50 years of safe use, the
EPA abruptly canceled it last year with no comparable
replacement. EPA has yet to provide guidance on viable
alternatives. This creates instability for growers, which in
turn creates opportunity for foreign producers. We urge
Congress to restrain regulatory overreach on bureaucratic red
tape.
On trade and economic competitiveness, fair trade is
critical for fresh produce growers. A recent Texas A&M study
highlighted USDA ERS data showing an eye-popping decline in the
U.S. fresh produce trade balance. You all should have that
chart in your papers. It began in the early 1990's and it has
accelerated through the 2022.
Like many in our industry, our company imports from Mexico
to supplement our U.S. production in order to provide our
customers a consistent year-round supply, but only when we are
out of season. At the end of the day, pricing is king, but how
can a U.S. grower compete on cilantro, onions, parsley, or
watermelons when my labor cost is $23 per man hour and a
foreign producer pays their worker $18 per day and operates
under less regulation. That is not a fair playing field.
On the flip side, we sell a lot of products to our Canadian
friends. They are incredible customers who value good quality.
They love fresh produce. They also buy Canadian perk grown
whenever available. They will not bring in our product when
they are in season. I admire that, and believe we could learn a
lesson from our friends to the North. Protect your growers,
they keep you fed.
In closing, over the last three decades, U.S. fruit and
vegetable production has declined while imports have surged.
The reason is clear; misguided U.S. policies and excessive
regulation have created a tilted market pushing production out
of the U.S. and into the arms of cheaper, less regulated
foreign producers.
Once our production is lost, it is not likely to return.
The barriers to entry are too high and the cost of land,
equipment and labor make it nearly impossible for new farmers
to enter the business. We should protect and preserve what
remains of our specialty crop production in the interest of our
national security and the future wellness of our country.
Thank you for the opportunity to testify. God bless our
farmers. I am happy to answer your questions.
[The prepared statement of Mr. Erickson can be found on
pages 52-61 in the appendix.]
Chairman Boozman. Thank you. Mr. Hinton.
STATEMENT OF JEREMY HINTON, CHAIRMAN, KENTUCKY HORTICULTURE
COUNCIL, PRESIDENT, LARUE COUNTY FARM BUREAU KENTUCKY FARM
BUREAU FEDERATION, HODGENVILLE, KENTUCKY
Mr. Hinton. Good morning, Chairman Boozman, Ranking Member
Klobuchar, and Members of the Committee.
I would like to begin today with a quote. ``No other human
occupation opens so wide a field for the profitable and
agreeable combination of labor with cultivated thought as
agriculture.'' These are words of our 16th President, Abraham
Lincoln, who was born only a few miles from our family's farm
near Hodgenville, Kentucky.
As an eighth-generation farmer in LaRue County, my
connection to agriculture traces back to the time that Lincoln
wandered the fields around his home. First, with the farming
operation that looks different from my grandfather's Hartford
cattle farm, and second, as a crop insurance agent, helping
other farmers manage their risks.
While our operation includes soybeans and burley tobacco,
our main focus is nearly 30 edible crops from apples to
zucchini and our greenhouse flowers and vegetable plants. Most
of our sales are direct-to-consumers through our two retail
markets and local farmer's markets. My wife Joanna and I began
the business in 2002, and are both involved daily with
production and marketing of our crops along with our three
children ages 20, 17, and 11.
As this Committee develops the next farm bill, you must
plan for both the present and the future. My work on the farm
and crop insurance requires a similar focus. While most
traditional row crops acres are covered under the Federal Crop
Insurance programs, participation for specialty crop growers is
often more complicated because sporadic geographic distribution
limits policy availability. Agents and growers must often work
to ensure specialty crops under RMA-approved written
agreements.
Whole Farm, and its companion, Micro Farm policies, are
good options, but can be complicated for both farmers and
agents, and have not been widely adapted. In 2024, for example,
there were only six Whole Farm policies and four Micro Farm
policies written in Kentucky compared to nearly 7,000 policies
for soybeans.
Efforts are being made by RMA and organizations like
Kentucky Horticulture Council, which I chair, to increase
awareness and understanding of options for specialty crops.
Many growers still do not understand how they work for their
operation. We look for solutions to better manage risks and
specialty crops.
Possible solutions may include improvement to Whole Farm, a
rainfall and temperature index, products similar to PRF that
could have consideration for both excess and below normal
conditions, or expanded revenue products for specialty crops,
but based on farm records rather than tax returns. While each
of these have challenges, I encourage you to engage with RMA,
the crop insurance industry, and specialty crop growers to help
find solutions.
Labor is another area that requires specialty crop growers
to work in the moment while keeping an eye on the future. I
think other Members are going to address that, so I am going to
move on. As we work for a better future, specialty crop growers
are especially dependent on the resources of extension at our
land grant universities.
Extension recommendations for disease and pest control and
fertility in our crops is invaluable to our success. Your
support is vital to research and direct technical assistance
delivered by our colleges of agriculture. A true focus on the
future must also recognize the loss of farmland to development
in Kentucky and across the Nation. According to the census of
agriculture, Kentucky lost more than 546,000 acres of farmland
from 2017 to 2022, or more than 290 acres per day. For context,
the average farm size in Kentucky is 179 acres.
Kentucky Farm Bureau through creation of the Kentucky
Farmland Transition Initiative is working with stakeholders at
both the State and Federal levels to provide resources and
education network opportunities and develop policy
recommendations. I urge your involvement in developing
solutions to this important issue. While on one hand, new
neighbors meet new customers for retail markets like ours, we
must find a balance between well-planned development and
farmland preservation to ensure the future of our farms and our
rural communities.
Despite many challenges, there are many positives in the
specialty crop segment of agriculture. In direct-to-consumer
sales, we see increased demand for locally grown products and
for building relationships with those who want to know the
farmer feeding their families. A new farm bill is an
opportunity to increase purchases of locally grown foods for
schools, hospitals, and other State and Federal institutions,
and to open additional markets for our products, and improve
the health of our communities.
By focusing on the issues of today and the future, I look
forward to my children becoming the ninth generation of my
family to farm the lands where Lincoln walked. I want to thank
each of you for your willingness to serve, and for your work to
ensure a healthy agriculture industry in a safe, stable food
supply. It has been an honor for me to address this group, and
I look forward to answering any questions.
[The prepared statement of Mr. Hinton can be found on pages
62-55 in the appendix.]
Chairman Boozman. Thank you. Dr. Boring.
STATEMENT OF TIM BORING, DIRECTOR, MICHIGAN DEPARTMENT OF
AGRICULTURE AND RURAL DEVELOPMENT, STOCKBRIDGE, MICHIGAN
Dr. Boring. Good morning, Chairman Boozman, Ranking Member
Klobuchar, Members of the Committee, thank you for the
opportunity to participate today. My focus will be on specialty
crops, their importance, the challenges, and opportunities the
growers and consumers face as you continue to work on a farm
bill. Members of this Committee can foster the success of
specialty crops today and for years to come, and I am looking
forward to the constructive solutions and policy decisions that
will come out of this hearing.
As the Junior Senator from Michigan, Senator Elissa
Slotkin, likes to point out, food security is national
security, and I believe the next farm bill serves as the
crossroads for whether or not we take that fact seriously. The
perspective I bring to the hearing today is as the Director of
the Michigan Department of Agriculture and Rural Development. I
am proud to lead a state agency of dedicated public servants
who are committed to providing opportunities for our food and
agricultural businesses, lifting up our rural communities, and
preserving Michigan's natural resources.
Agriculture is a $105 billion industry from Michigan, and I
consider our specialty crop farmers the backbone of our success
with more than 300 specialty crops produced in our State. Since
your invitation was extended from my testimony, I have been
asked by producers to share just how vital specialty crop
support programs are for their existence.
Unfortunately, for many specialty crops, times have never
been more tenuous. What once provided an avenue for farmers to
diversify their products has forced many to choose whether or
not their farm will welcome back the next generation, whether
it is due to trade pressures, rising input costs, climate
variability, labor constraints, and threats of pests and
disease.
Many specialty crops in this country are either harder to
grow, more difficult to get to market, or challenging as ever
to reach the consumer. In the interest of time this morning, I
want to highlight some key areas that are either currently
supported in the farm bill or need to become a priority as well
as share some of what we are doing in Michigan that is seeing
success and deserves more attention at a Federal level.
First, public sector research has been critical for
specialty crops, specifically specialty crop block grants that
are currently supported by specialty crop research initiative.
These investments have been instrumental in keeping farmers one
step ahead of the next disease or pest threat.
For instance, last year in Michigan, cherry farmers lost
between 30 and 75 percent of their crops because of abnormal
weather events that drove unprecedented insect and pest
pressure. Losses such as these are becoming far more common. A
farm bill that provides grower support such as through new
research, helps ensure the continuation of family farms in the
face of these unprecedented challenges, and is critical for the
long-term viability of specialty crops in Michigan and across
the country.
Another area that growers made clear and needs continued
support is the Marketing Assistance for Specialty Crop Program,
which helps growers expand domestic markets and develop new
markets for their crops. At a time when there is so many
unknowns with our trade partnerships, fostering stronger
domestic markets will be critical for the success of our
growers.
Finally, I want to share two areas where we are seeing
success in Michigan thanks to Governor Gretchen Whitmer
investing State dollars and new flagship programs; our
Regenerative Agriculture Unit, and the new Farm-to-Family
Program. Regenerative agriculture is an adept and active
approach to land management driven by improving soil health.
Our Regenerative Agriculture Unit, the first of its kind
embedded in the State department, supports producers engaging
in this approach to production agriculture.
By adopting regen agriculture practices, farmers and
landowners can improve profitability, restore healthy soils,
and safeguard natural resources for future generations.
Commodity row crop operators have been on the front lines of
integrating many of these practices, but they are equally
important for specialty crop growers.
Our Farm-to-Family programs are also a first-of-its-kind
effort, working to strengthening agrifood systems, bolstering
market demand for products, and increasing food access, and
availability. Our first investment through this initiative is a
middle of the supply chain program supporting food hubs and
farm stops, which are innovative models and market outlets,
aggregation and distribution that are important value chain
nodes for a variety of specialty crops in our State.
Together, these programs are working to add value to the
crops grown on Michigan farms and get those crops to the people
of Michigan. I share all this today because the support of our
specialty crops directly translates to the tools that keeps
farmers farming, keeps rural communities vibrant and keeps
fruit and vegetables on the dinner plates across America.
Thank you, again, for the opportunity this morning, and I
look forward to questions from the Committee.
[The prepared statement of Dr. Boring can be found on pages
67-73 in the appendix.]
Chairman Boozman. Thank you. Mrs. Rhinewalt.
STATEMENT OF ANNA RHINEWALT, COUNCIL MEMBER, MISSISSIPPI FARM
BUREAU FEDERATION/MISSISSIPPI SWEET POTATO COUNCIL, SENATOBIA,
MISSISSIPPI
Mrs. Rhinewalt. Chairman Boozman, Ranking Member Klobuchar,
and other distinguished Members of this Committee, thank you
for inviting me today to testify about the current state of our
farm economy.
Our Nation has experienced many years blessed with a robust
and successful farm economy, but current conversations around
farm office tables and mailboxes full of farm dispersal sales
tell a vastly different story of what has happened in the last
five years. New equipment is 30 to 40 percent higher. Many
parts and repairs have doubled or tripled. Per acre supplies
for specialty crop producers have increased by at least 50
percent. Wage rates have increased in our State by 30 percent.
Farmers who were once profitable enough to finance
themselves are now paying eight to ten percent interest rates
on multi-million dollar operating loans just to try to stay
afloat. These increases are taking hundreds of thousands of
dollars off of farmers' bottom lines every year. Some of these
same farmers have experienced unprecedented weather events that
have diminished and destroyed their crops. Finally, market
pricing for crops like soybeans and sweet potatoes has been
stagnant, if not in decline. Farmers are trying to claw their
way out, but they cannot pay their debts with losses.
Specialty crop producers like me are faced with another
variable that, if not addressed soon, is going to be the
catalyst for our closure. The number of messages I have
received in the last 24 hours regarding this testimony has made
an impression on me. There are so many constituents watching
today. I sense they are encouraged that this hearing was called
and they are hopeful that you are listening and will help us.
While I understand this Committee does not have direct
jurisdiction over the H-2A program reform, I urge you to share
my testimony with your colleagues to make them aware that we
are desperate for relief. The Adverse Effect Wage Rate was
initially established to protect the domestic farm workers from
foreign worker wage depression. Decades later, the domestic
workforce has almost entirely moved away from owned farm jobs.
In 2023, of the 380,000 H-2A eligible positions, only
10,000 domestic applications were received, 97 percent went
unanswered. Since 2019, the AEWR in our State has risen almost
31 percent resulting in an additional $12 million impact to
Mississippi sweet potato growers annually. We do not understand
why the rate continues to rise so dramatically using the
rationale that it is to protect a domestic workforce that no
longer exists.
Seasonality restrictions are also affecting our farmers. We
increasingly need a year-round solution. Our long-term domestic
crews are dwindling and there do not seem to be any new workers
willing to fill the gap. Some farms are closing for two months,
missing critical sales until their H-2A workers return.
Finally, in the last 24 months, the Department of Labor has
issued over 3,000 pages of H-2A rulings. Please understand H-2A
workers live on our farms with our families for months at a
time. We have very positive relationships with our workers to
suggest that it requires thousands of regulations to establish
a fair, safe, and mutually beneficial employer-employee
arrangement is offensive to farmers.
Our livelihoods are inextricably linked to the presence and
quality of our workforce. We appreciate the willingness of our
H-2A workers and we understand the sacrifices they make to
provide a better life for their families, much like we do. We
support a straightforward common-sense program that protects
our workers without burying us under a mountain of policy.
I hope my testimony today has provoked a sense of urgency.
This situation is playing out in families all across our
country. I ask that you assess the ramifications of the loss of
food production from within our borders. Food grown and raised
domestically is safer, of a higher quality, and it is most
importantly, a matter of national security. We are so close to
losing the American farm. Please help us pave a way forward,
remove our obstacles, and lead our country into a renewed
awareness that without food, nothing else matters.
Thank you for holding today's hearing, and I would be
pleased to answer any questions the Committee may have.
[The prepared statement of Mrs. Rhinewalt can be found on
pages 74-82 in the appendix.]
Chairman Boozman. Thank you. Mr. Etcheverry.
STATEMENT OF BEN ETCHEVERRY, PRESIDENT, NEW MEXICO CHILE
ASSOCIATION, DEMING, NEW MEXICO
Mr. Etcheverry. I am incredibly proud to represent the
Chile Capital of the world as the President of the New Mexico
Chile Association and share my perspective on the agricultural
economy. Thank you, Chairman Boozman, and Ranking Member
Klobuchar, and Members of this Committee.
Immigration is a hot debate in America right now, and
agricultural labor is closely tied to it. It is nice to be
noticed, but these circumstances are less than favorable. As
you know, most produce in this country is hand-harvested. As
such, we have a tremendous need for the human touch and the
hard work that comes with it to plant, grow, and harvest our
products.
As our economy is developed, far less people pursue work on
the farm. With this challenge, we have become more reliant upon
the H-2A Program to shore up the gap in agricultural
employment. Unlike large acreage crops like corn or cotton, we
do not have reliable automation and mechanization options for
produce. Consumers demand perfect peppers at the grocery store
with no blemishes and any slights thereof.
The New Mexico Chile Association has spent a lot of time
trying to develop automation solutions for our industry with
the help of USDA. This work needs to continue and expand until
we solve the riddle for chiles as well as other vegetable
crops. While this Committee does not have jurisdiction over
immigration, I do want to share a few words on this topic.
First, the H-2A Program, as we know, is broken, and it
needs to be fixed. The program is expensive, loaded with
numerous costs and paperwork involved, and is at times
torturous as best.
Second, we need to have a functioning and fair immigration
system. I have seen many leaders in my rural community who came
to this country long ago and enriched it. There is a middle
ground and it is my hope this Committee can use its influence
to elevate the need for agriculture labor reform.
Trading tariffs are also a burning issue, and our growers
have seen this issue close up for years. Currently, the
domestic red chile production in the Southwest is down by 50
percent across the board since 2018. This is largely due to
foreign paprika being shipped to intermediaries repackaged as
intermediary paprika then shipped to the U.S. with the landed
cost 10 to 15 percent below the cost of the domestic growers on
farm price, let alone the cost of dehydration and packaging.
I already talked about the need to have Federal funding
that helps fuel innovation and automation, but I want to
highlight three additional areas of necessity improvement in
the farm bill.
First, the Specialty Crop Block Grant is incredibly
valuable and has helped our growers gain access to marketing
materials for increased consumer education. As Senator Lujan
knows, we have a wonderful certified program that protects our
products so they are not confused with imports often gaining
our growers a premium.
Second, the availability of water, especially in desert
producing regions, is becoming less consistent and reliable. It
is critically important that conservation programs like EQIP be
bolstered to help growers use Federal matching money to switch
to more efficient irrigation systems.
Finally, specialty crops have less support, higher risk,
and unfortunately, a weaker risk mitigation system to rely on
than our friends in row crops. Right now, our industry relies
on an outdated crop insurance program that USDA helped set up
in the 1980's. We need to correct this immediately to help
ensure our farm survival.
In closing, due to the efforts of the farm bill and the
legislative history of this body, we have created a food policy
program that has helped us shrug off wars, would-be famines,
economically trying times, and set the standard on which the
modern agricultural model in the world was created. I implore
this Congress to set aside partisan differences to make sure
that farmers have the support to continue provisions for enough
food to eat and enough food to make sure our next-door
neighbors do not go without.
Thank you, again, for this opportunity, and I will look
forward to your questions.
[The prepared statement of Mr. Etcheverry can be found on
pages 83-86 in the appendix.]
Chairman Boozman. Thank you. Mr. Erickson, the trade
imbalance on fresh produce is disappointing and is the primary
contributor to the growing trade deficit across all of
agriculture. What should this Committee be thinking about as we
work together to evaluate this concern?
Mr. Erickson. Thank you for the question, Mr. Chairman.
This graph should be in your information that was submitted to
you. This is the fresh produce trade balance from 1980 to 2022.
You do not have to be up close to see, this is a pretty vicious
picture. This is not fair trade for the specialty crop produce
industry. We need controls on the cost of our labor. When I am
paying $23 per man hour and Mexico can grow the same crop and
they are paying $18 per day, per person, that gap is
insurmountable. We need common sense solutions to help control
the cost of our labor.
Second, water. In the case of Texas, our water situation is
threatening our very existence that we farm about 6,000 acres
of fruits and vegetables. We grow over 40 different
commodities. This year, we left fallow 2,000 acres that we
could not farm because we did not have water for it. Because of
that, we had to relocate some of our production to outside
growers and to other regions.
For those of you folks here that use the H-2A Program,
shifting your H-2A people around when you have not put a
location on a petition and we are making adjustments on the fly
is very difficult. Additionally, at $23 per hour, our cost per
person moving people around from farm to farm is impossible. We
need to have them centrally located.
Controls on cost in the H-2A Program. Support in pressing
Mexico to make regular water payments for us. Support through
getting the farm bill completed and finding ways to invest in
the mechanization and automation. Finding ways to stop
regulatory overreach, such as when I talked about the EPA.
Basically, from one day to the next, pulling a very important
herbicide that we use in onion production that has been in use
for 50 years. Essentially, from one day to the next, it was
pulled away with no options, no input, no alternatives, and our
foreign competitors are not under that kind of regulatory
pressure.
Those would be some areas that I would point to that this
Committee could focus on.
Chairman Boozman. Very good. Thank you. Mrs. Rhinewalt, can
you talk more about how the changes to the H-2A Program over
the past several years have affected your day-to-day and what
having a voice for agriculture leading the Department of Labor
would mean for the specialty crop industry?
Mrs. Rhinewalt. Thank you for the question, Senator. Day-
to-day, we are trying to keep our heads above water in response
to a wage rate that is taking from our farm an additional
$70,000 annually off our bottom line. We have cut where we can
to compensate, but we recognize that another increase would be
devastating.
To your point about having a voice for agriculture as
leader of the DOL, we are very optimistic about President
Trump's nominee, Lori Chavez-DeRemer, she seems to be a friend
of farmers and an advocate for H-2A reform. Recently, she was a
member of the House Agriculture Labor Working Group who drafted
a very articulate recommendation for H-2A reform that largely
has bright bipartisan support. We hope if she is confirmed that
she will help us push reform in this new policy over the finish
line.
Chairman Boozman. Very good. Mr. Hinton, in your testimony,
you noted the challenges faced by many specialty crop producers
in finding adequate tools to manage their risk. What are some
ways that we can strengthen insurance options for specialty
crop growers?
Mr. Hinton. Thank you for the question, Mr. Chairman. As I
mentioned, one of the most difficult challenges is the
geographic distribution of crops and the lack of concentration.
I know for Mrs. Rhinewalt, there are a lot of sweet potatoes
grown in her area, and so that is an insurable crop. For us,
for example, with our operation, peaches are one of the crops
that we grow and peach insurance is available in three of the
120 counties in Kentucky just because of the lack of historic
production.
As we look at that one option that we have is to insure
crops with written agreements. Unfortunately, there is a
relatively high standard of proof in terms of the disposition
of those crops where the way that they are sold. For markets
like ours that sell directly to consumer, it is very difficult
to be able to produce the records even with a point-of-sale
system to back and document where those fruits went, when they
were sold. Unlike if we have sale tickets for a wholesale
purchase, when you are dealing with a direct-to-consumer
transactions, it is much more difficult to back up and prove
those.
I think there is potential in Whole Farm and Micro Farm, it
certainly has its places where it fits. I do not think it is
the answer for everything. One of my biggest challenges with
Whole Farm is the timing of it. Obviously, when the losses are
paid based on tax returns, that means that any losses are not
paid until taxes are filed. If for example, for me, if I had a
loss in strawberry production that happens in May, it might be
a full year from now before I would be able to collect an
indemnity payment for that.
That is one of the challenges I would encourage further
looks at revenue-based products that could be based on farm
records instead of those tax returns that could reduce the
burden of record keeping for producers. I think that is one of
the most intimidating things about Whole Farm is the record
keeping burden that comes along with this. I have had a couple
of really good conversations, one last night with Mrs.
Rhinewalt, about their operation and how they are hoping that
Whole Farm will work for them.
I had a conversation with an apple grower in Michigan a
couple of weeks ago who has been using Whole Farm and is very
pleased with how it works for his operation. He is primarily a
wholesale seller of his crop, and so that is a little different
situation. I think anytime we talk about crop insurance, we
have to talk about all of the pieces. With the industry, we
talk about the three-legged stool with RMA, and the AIPs, and
with agents.
We have to remember all of the different layers that are
involved there and make sure it is a good fit for everyone. We
have not had an inflation adjustment for the A&O payments that
are made to the AIPs for nearly 10 years, and that is something
that I think would help our industry as a whole.
Something else that I think would bear consideration is
specialty crops fall in the same category with corn, soybean,
wheat, the main commodity crops. They are subject to the pro
rata reduction in payments. We have seen that firsthand in our
agency being heavily in burley tobacco. Our revenue from our
tobacco policies has been reduced by 40 percent because of the
pro rata factor on corn and soybeans. It works perfectly for
those crops, but when we are not aligned with the same increase
in market value, increase in insured value in premiums, then it
makes it difficult for agencies that focus on those extra
crops.
Chairman Boozman. Senator Klobuchar.
Senator Klobuchar. Very good. Thank you. I appreciate a
number of you raising the workforce issue, and I noted you, Mr.
Etcheverry, talking about how important that is going to be.
Senator Bennet is an expert on this and actually has a really
good bill that I have co-sponsored on immigration reform for
agriculture workers. He will ask those questions.
I wanted to lead with the funding for the Marketing
Assistance for Specialty Crop Program. The program, as you
know, recognizes the struggles that specialty crop growers have
with import pressures, rising costs, inadequate safety net. I
know USDA has made the initial payments, but eligible growers
are still waiting for the rest of the assistance--this is for
you, Director Boring. They have received a partial payment, and
this includes crop growers in Minnesota.
We are pushing for the department to make good on the
promise that was made. What response have you gotten from
specialty crop growers in your State regarding this program
from the USDA?
Dr. Boring. Thank you for the question. We have seen
tremendous interest for the program, especially crop growers in
Michigan. I know FSA offices has seen quite a bit of interest.
I believe there has been over 1,000 applications that have gone
in for that program. My understanding is around half the money
perhaps has gone out to specialty crop producers.
You know, it is a really important lifeline for producers
of diversifying market access and the ability to move products
into different areas. You mentioned some of these challenges
around international pressures coming in. We certainly see that
through a variety of different specialty crops in Michigan,
right, similar to what we see across the country here.
Expanding out the domestic markets is going to be really
critical, and strengthening some of these linkages between--
like, Michigan farmers grow food and it needs to be on tables.
Senator Klobuchar. I would, for your research, is also
really important. That is something we do big time at the
University of Minnesota, soil health, those kinds of things. It
is also important. Is that right?
Dr. Boring. Absolutely, yes.
Senator Klobuchar. Then risk management tools. Again, Mr.
Etcheverry was noticing that the crop insurance provisions have
not been updated since the 1980's. You know, that was when
Cabbage Patch dolls were popular, walkman's were the rage, and
the women, I think Senator Smith and I may remember this, we
are wearing little bow ties with our suits. Are you saying it
might be time to update things since then?
Dr. Boring. Certainly, timely.
Senator Klobuchar. Okay. Good. Mr. Erickson, could you talk
about how specialty crop growers can benefit when more families
are able to afford fruits and vegetables?
Mr. Erickson. Thank you for the question, Senator. We grow
medicine, fruits and vegetables, they are mother nature's
medicine, so anything and everything we can be doing to
encourage, increase consumption of fresh fruits and vegetables,
I think is critical. Our Nation is facing a health crisis, and
we should be investing in and supporting programs that
encourage the consumption of fruits and vegetables.
On the other side, there is a lot of work that needs to be
done to ensure that those of us who are sitting here and who
are producers can remain in business, and stay in business. It
requires the need to be profitable to run our farms and
operations. Investing in school nutrition programs, and WIC
programs, and encouraging and requiring the consumption of
fresh fruits and vegetables, I think is critical.
Senator Klobuchar. Thank you. Mr. Etcheverry, I cannot help
but just keep being drawn to your chile peppers and what is
going on there in New Mexico. Could you just talk about what
the Specialty Crop Block Grant how important it is, and how it
has helped that industry, and what it means beyond even the
growers, right, the restaurants, and just the tourism, and
things like that for your State?
Mr. Etcheverry. It is critical for us as we are a super
specialty crop, that we have a very local following on.
Senator Klobuchar. Is that a term of law?
[Laughter.]
Mr. Etcheverry. Fanatic. It has allowed us to penetrate
other markets, and other States, and educate our consumers on
how to prepare our peppers and enjoy them as well.
Senator Klobuchar. Thank you. I will yield the rest of my
time back. Thanks.
Chairman Boozman. Senator Hyde-Smith.
Senator Hyde-Smith. Thank you, Mr. Chairman. I certainly
appreciate the opportunity that you have called this meeting,
and I want to thank all of our witnesses today. This is
incredibly important for our country, and your part today is
very, very helpful.
My question is for Mrs. Rhinewalt of Mississippi. A few
weeks ago, we heard from the row crop folks and the producers
in our State, and the outlook is very, very grim. It goes
without saying, that farming is heading in a very dark
direction. I know that you guys have the specialty crop side of
things, but your family happens to also be involved in both
with the row crops, a 2,000-acre operation that includes sweet
potatoes as well.
Would you just, generally, describe for the Committee what
your challenges are and the various hardships your family
operations are facing from the high cost of inputs, the
depressed prices, the red tape, the regulations? Can you just
share with us your greatest challenges?
Mrs. Rhinewalt. Sure. Thank you, Senator. We utilize row
crops primarily on our farm for crop rotation with sweet
potatoes. Unfortunately, the higher margins that we do
experience on the specialty crop side are pretty much
diminished on the row crop side due to high equipment costs,
primarily, and then also, historically, low crop prices that we
are experiencing right now.
A particular note would be critically outdated reference
prices. The farm safety net is not triggering as quickly as it
should to really provide the relief we need for people who use
row crop farming as a supplement, but most especially those who
their whole livelihood, is dependent on that.
Senator Hyde-Smith. The update, again, is so critically
important. In your testimony, you also refer to the H-2A
temporary agriculture workers who are so important. My takeaway
is that this program is critical in helping American farmers
fill employment gaps that other people just do not, they are
unwilling to do that type of work. It is terribly expensive in
recent years, and riddled with red tape as we well know.
Could you, again, shed some light on the challenges you
faced with the H-2A workers, the programs, but most of all, how
we need to improve it?
Mrs. Rhinewalt. Yes, Senator, thank you for that
opportunity. Outside of the 3,000 pages of regulation that we
are struggling to keep up with, we really need reform in the
areas of AEWR, as I stated before. The AEWR rate in our State
is currently $14.83, which is 31 percent higher than it was
five years ago. In particular, that rate does not consider the
housing cost that we have to pay, transportation, and
administrative expense.
Typically, that can bring the rate that we are actually
paying, I would say, a conservative estimate would be four to
five additional more dollars per hour that we are paying. That
$14.83 now is leaning into $20, which for the cost of living in
our State is quite expensive.
We also need a path to year-round labor so that we do not
experience gaps in production. A lot of farms like us, we are a
grower and a packer. The planting and harvest seasons have been
critical for H-2A, but since our long-term domestic workforce
that has worked in the pack house has kind of dwindled and
there is not a new generation coming on.
A lot of people in our shoes we are able to kind of patch
it together. Our whole family is on the pack line working just
trying to get through that eight weeks until H-2A workers
return. I have friends who have to shut down their pack lines
completely because they just do not have enough help to keep it
going, and that really exposes them with their customer base.
Their customers could move on to somebody else. They really
just need to kind of fill in that gap there. That is probably
about it.
Senator Hyde-Smith. If we do not have these changes and the
suggestions that this entire panel is making, can you just look
five years out and tell me how you foresee your operation if
this Committee and this Congress does not do something
immediately?
Mrs. Rhinewalt. If we do not make changes within, I do not
think it will take five years for us to get the answers to that
question. It will be far less if we certainly continue on the
trajectory that we are currently on. It will take far less than
five years to put a vast majority of specialty crop producers
out of business they cannot afford. That increase in labor wage
rates in particular, we are having to eat all of that because
for many of us depending on what your specialty crop is, our
markets will not bear us passing along that cost to our
customers.
Senator Hyde-Smith. I am out of time. Thank you, Mr.
Chairman.
Chairman Boozman. Senator Bennet.
Senator Bennet. Thank you, Mr. Chairman. Thank you for
holding the hearing. I want to thank the Ranking Member for her
mention of the workforce issues here, and I am glad they are
coming up everywhere.
Mr. Etcheverry, I am going to come to a question with you,
but I will say, since you strike me as an honest man, and I
know there are a lot of people from New Mexico and your family
watching you today, I am not going to ask you about the virtues
of Pueblo chile today.
[Laughter.]
Mr. Etcheverry. Thank you, I appreciate that.
Senator Bennet. You are most welcome, but we can talk about
it later. Every single one of these, in fact, Anna said that
the future of the American farm is at stake. I agree with that.
I think when I transport myself back to another time, not that
long ago in American history, just about 10 years ago, we had
an agreement, the Gang of Eight bill on immigration that had
tens, and tens, and tens of billions of dollars of border
security. I think it was like $70 billion in current dollars.
It had a pathway to citizenship of the 11 million people
that are here that are undocumented. It had agriculture
provisions that I negotiated with Senator Rubio, and Senator
Hatch, and with Senator Feinstein. Two of those people have
passed from this earth. It was supported.
The agriculture provisions of that bill were supported by
the growers all over America, and were supported by the farm
workers, which is how it should be because of what Mr. Erickson
said; the importance of the food that they are growing to the
lifeblood of this nation. You know, the growers and the farm
workers are doing something that most of us would never be able
to do, most of us could never do. They are an essential part of
not just our economy, but our culture, who we are as the
American people.
It is a reminder that of how, in my opinion, how
impoverished our discussion on immigration has become in this
country. Not because we should not secure the border, I am for
that. I was for that long before Donald Trump rode his
escalator down at Trump Tower. We are never going to get a plan
together that does not do all of the things that we tried to do
in the Gang of Eight bill.
In 2022 you know, we had a bipartisan proposal, similar to
the one that is in the House that was described that actually
had a wage freeze and dealt with the adverse wage issues that
was agreed to by the farm workers and also by almost all the
growers in America, but not by all the growers in America.
What I would say is we need your help, you know, before we
lose American agriculture, before we lose farms and ranches
that are just going to move to places where they can find the
labor they need to be able to do what we used to do here and
are in danger of not being able to do anymore.
I wonder, Mr. Etcheverry, in all of that context, and I
apologize for the long windup, but I do think it is important
to recognize that there was a time when our politics was not as
broken as it is around this issue. I guess also a reminder that
this economy, especially our rural farm economy, depends on
immigration and our having a functional immigration system in
this country.
Mr. Etcheverry, could you talk a little bit about how
things have gotten more dire in the last few years on this
subject? Then if there is anybody else who would like to
comment, I am happy to take that, too.
Mr. Etcheverry. It has become more dire with all the
comments from this board. We are seeing higher interest rates,
lower farmer wages. One of my growers did the math on his take-
home, and he makes $3 an hour. It is just hard. It is just
really hard.
Senator Bennet. Anna, do you want to talk--I am sorry, Ben,
are you done?
Mr. Etcheverry. We have a lot of on-farm workers close to
the border who want to be good Americans. They want to come
over, they want to work, they pay their taxes, and they go home
and they raise their families.
Senator Bennet. I remember Jeff Flake was part of that
negotiation as well. He learned this on his family's farm and
ranch in Arizona. Anna, do you want to say anything else?
Mrs. Rhinewalt. We are a little bit farther north than Mr.
Etcheverry, so I do not have a whole lot of experience. We
transitioned directly from domestic workforce into the H-2A
Program.
Senator Bennet. You talked about the need for year-round
folks, didn't you?
Mrs. Rhinewalt. Yes.
Senator Bennet. Could you talk a little bit about that?
Mrs. Rhinewalt. There are a tremendous number of
constituents right now who have never even had access to the H-
2A Program because their operations, we have different segments
of our operations. Some are seasonal, and they are easy to
enter into the H-2A Program quickly, but their operations are
specifically year-round. They have not even been able--they are
suffering without a reliable workforce, and they have not been
able to take advantage of the H-2A Program at all due to the
seasonality.
Senator Bennet. Thank you for that. With my last two
seconds, I would say to the Chairman and the Ranking Member,
you know, as somebody on this panel said already, this is not
in the jurisdiction of this Committee. That is true, but I
think that Republicans and Democrats here could provide some
leadership to the rest of the Senate in terms of bringing these
proposals forward. I just want to volunteer my services in your
efforts to do that.
Chairman Boozman. Senator Tuberville.
Senator Tuberville. Thank you, Mr. Chairman. Thanks for you
being here today, all of you. Our agriculture economy is a
disaster. Complete disaster. You know, if we do not do
something, and I do not know how it is going to work, we are
not going to have an Agriculture Committee here in a few years.
We lost 150,000 farms in the last few years, 150,000 farms.
If that is not a disaster, I do not know what is, but we do
not help you at all. Regulations are overboard. Labor is out of
sight. You have no water. I do not know what we have done right
up here. Does not sound like a whole lot. Mrs. Rhinewalt, what
is the ideal rate if we were to revert back to labor cost? What
would be the ideal rate that we would pay if you are to make a
profit?
Mrs. Rhinewalt. Senator, thank you. We actually had that
discussion yesterday. We chuckled talking about wages that were
based on maybe 115 percent of the Federal wage rate or State
minimum wage rates, but we know that is at $7.25. Farmers are
not suggesting that we pay that low. We do want to have some
consideration, a formulation for the wage rate that takes into
account that $14.83 may be the wage rate, but we need to
consider the transportation cost, the administrative cost, the
housing cost, and maybe--what is the word? Prorate that in
consideration of those factors because it is a fallacy to say
that because we are paying $14.83, that is not really the wage
rate we are paying. It is really more like $20 or $21 an hour.
Senator Tuberville. Exactly. Thank you. Mr. Erickson, $23
an hour. You got to be kidding me. How do you make it? I mean,
what would be your cost to make a profit?
Mr. Hinton. Well, I wish it was not. It is. To Mrs.
Rhinewalt's comments, you know, all the costs that are involved
with applying for the program, transporting the laborers from
their home country to the United States, where they are going
to work. We transport them. We put them in housing, hotels, we
transport them from the hotel to the job site. They have
catering services. We provide food. You know, you need to take
them to doctor's appointments and to get sundries and such. I
do not know, how you roll back. In Texas, the AEWR is, I
believe, it is $15.87 an hour. Our actual cost is about $23 per
hour. When you add all that in, I do not know what the number
is. We definitely need to put a cap on the increases that have
occurred.
How do we deal with it? Unfortunately, in the case of
Little Bear Produce, I wish Senator Lujan was still here, we
recently shut down. We had an onion packing facility in Deming,
New Mexico. It was an important part of our operation that had
about 15 full-time people, and we brought in 20 to 30 seasonal
people. We had onions, hatch chiles, pumpkins, watermelons up
there. We had to recently shutter that facility because, in
part, the water that is being withheld in Mexico. They are
using that water to grow our crops, and then we are having to
purchase those products.
It is a crazy situation for us to be in. As a business, we
had to make the decision, and you have to sit down with each
one of these people who have been working for us for 12 or 15
years. To sit down and tell them, you know, we have to let you
go. Unfortunately, we are going to work with you to try to
transition into another job. And you know what? The craziest
thing was those folks, in talking to them, they were so
thankful for the opportunity that they had during the 12 or 15
years that they were working for us. They were so thankful for
that. If we do not get these costs under control for U.S.
producers, we are going to continue to hand over the production
of specialty crops and fruits and vegetables
Senator Tuberville. It is going to be over. Mrs. Rhinewalt,
could we do without the H-2A Program?
Mrs. Rhinewalt. No, sir. We would be completely out of
business.
Senator Tuberville. How are domestic workers being affected
by H-2A Program?
Mrs. Rhinewalt. Well, a domestic workforce is never, again,
going to be the remedy for agriculture production in the United
States per their response to the jobs. Ninety-seven percent of
jobs remain open when we are required to advertise them to
domestic workers first before we can receive any assurance that
we are allowed to bring H-2A onto our farms. We would be happy
to pay our own citizens a very reasonable wage and save all
those auxiliary costs that I mentioned, but they simply do not
want the jobs.
Senator Tuberville. Thank you. Good luck. Hope we get out
of your way----
Mrs. Rhinewalt. Thank you.
Senator Tuberville [continuing]. because that is what we
are going to have to do. Thank you.
Chairman Boozman. Senator Smith.
Senator Smith. Well, thank you. Thank you, Chair Boozman.
Thank you very much for this hearing. Welcome to all of our
panelists. I want to particularly give a welcome to Lori and to
John from Minnesota for your work. We are blessed, Mr. Chair,
to have Minnesotans lead both National Pork and National
Turkey, and I think it is a tribute to the diverse farm economy
that we have in Minnesota. I want to welcome you both here.
I also just want to associate myself with the comments that
Senator Bennet made and the great insights from our panel on
the issues around farm labor reforms, which I think it is just
so important for us all to hear. It does not work for us
sitting up here to say, you know, somebody should do something
about all the problems when we really are the ones that need to
put aside our partisan differences and figure it out.
Mr. Etcheverry, I am a proud Senator of Minnesota, but I
was born in New Mexico, and so for me, chile is not a specialty
crop. It is a necessary crop. I really appreciate also the
comments that we have had around the importance for bipartisan
risk management tools that work for specialty farmers. I
appreciated your question on this, Senator Boozman, and others.
We keep hearing that we do not--I think we do not pay
enough attention to how crop insurance just does not work like
it should for many farmers, especially small farmers and
specialty farmers. The Whole Farm Revenue Protection option was
designed to fill some of those gaps, but it has got
shortcomings. I have been working on some legislation to
address these shortcomings. Many of the challenges that you
have raised, our bill goes at trying to work on.
I would like to continue this conversation and get feedback
from all of you on that legislation. I would love to see that
be a part of the work that we do in the upcoming farm bill. Mr.
Chair, I would like to enter into the record a letter from the
Minnesota Farmers Union opposing staffing cuts at local and
regional USDA offices.
[The letters can be found on pages 142-143 in the
appendix.]
Chairman Boozman. Without objection.
Senator Smith. This letter says, and I quote, ``We want a
USDA that is effective, responsive, and accountable to the
farmers and communities that they serve. This requires adequate
staffing and stable funding.''
I know, I bet you all are seeing this in your States. We
are seeing it in Minnesota. USDA county and local offices. They
help farmers in so many different ways, managing disease
outbreaks, safety net programs, or partners with farmers
dealing with all of the challenges that you have been
describing. Yet, despite the critical work that they are doing,
many of these positions and local offices have been eliminated
over the last few weeks.
Just yesterday, I was hearing from Minnesotans about local
USDA employees who were almost through their probationary
period to replace soon to be retiring FSA staff only to get
fired after all that training. They are worried, of course,
that those folks are going to retire anyway, that those new
probationary employees were going to be filling the spots of.
You have to remember that these FSA employees or NRCS employees
are often farmers themselves who are trying to find extra farm
income because of all the challenges that you all have laid
out.
I want to just talk for a minute about the importance of
this regional local staff, USDA staff. Mr. Boring, I am going
to ask you about this. Can you just talk about the impacts of
firing these USDA employees, and how these local FSA offices
are helping farmers, and what it means if they are just not
there?
Dr. Boring. Well, I think it is a great question. Great
point to bring up. As a former State Executive Director in
Michigan of FSA, I know firsthand of how dedicated certainly
Midwest and Michigan FSA employees are to farmer partnerships
and working closely providing that assistance.
You know, we talked a little bit about today of some of the
challenges of these programs. A lot of the services that are
available to growers are complicated, and there is a lot of
nuances to these programs. FSA staff help growers navigate
these issues, right?
Senator Smith. They are partners, really partners.
Dr. Boring. I think that is true in so much of the work
that we are working to foster in agriculture. It is true of the
crop insurance agents that are partners with farmers out there.
It is true of how we are advancing conservation practices,
implementing different land management approaches that requires
technical expertise. The partnerships broadly here, it is
really essential to working with farmers and to building
stronger, more resilient farming systems.
Senator Smith. I think that is absolutely right. I hear so
often from Minnesota farmers about how they rely on FSA advice
and get to develop long-term relationships with folks. That is
all going out the window with these firings.
Mr. Chair, I know that we have worked in a bipartisan way
to try to address some of the staffing shortages that we have
seen in FSA, and yet what the administration is doing right now
goes absolutely counter to, I think, what is a shared
bipartisan goal here. I hope that we can find a solution that
will make sure that farmers across the country have the support
that they need from FSA and other regional offices. Thank you,
Mr. Chair.
Chairman Boozman. Thank you, Senator Smith. Senator
Justice.
Senator Justice. Thank you, Mr. Chairman. Let me just tell
this, you know, I do not have a script to go by. I am a new kid
on the block in a lot of ways, but I promise you that I really
think you should listen to what I have to say today.
In many ways I would say, what should we do? What should we
do? There is a solution to all this. My dad would have said a
long time ago, and if I can use the slang that he would use, he
would say, ``Son, I don't know exactly what we should do, but
this--'' and he would not say, dad gum, he would say this--
``whatever, surely ain't it.'' I would tell you all just
exactly just this.
I really appreciate those coming today and their testimony.
I really appreciate our Chairman and our Ranking Member, but we
have the real deal Chairman right now, and we can really make a
difference. Let me just take you through some level of math.
The small family farm in America today, the average size is 430
plus acres.
Now, just think about this just for a second. They are
hurting in every way imaginable. We better awaken real quickly
to just a couple things. We go into grocery stores and as far
as you can see a mile long, there is every choice imaginable.
We pay almost nothing of our annual incomes compared to
countries all across this globe to have a luxury like you
cannot imagine that we have in America. That is all there is to
it. We have that luxury because of these people, because of
many of you that are sitting right out here right now.
Absolutely.
When it comes right down to it, our family farms in this
country do something that defies all financial reasonableness.
That is all there is to it. Just let me walk you through just a
little bit of math. If you had 500 acres today in Champagne,
Illinois, it is probably worth greater than $15,000 an acre.
With all that being said, if you just do the math real quick
and everything, that is $7.5 million. If that farmer had
$500,000 in the bank, he had $8 million worth of worth.
Really, and truly what he does is he goes out and pushes it
all out on the table every year and says, ``I'm all in. I'm
waiting on it to rain.'' Absolutely, that farmer probably is
living off of $28,000 or $42,000 a year, when if he sold his
land tomorrow, he could absolutely go to Goldman Sachs, and
Goldman Sachs would bring him a return of probably $350,000 a
year.
He does not do it. He does not do it for all of us, for
every last one of us. He does not do it. The reason he does not
do it is because he loves what he is doing, and we better love
him. That is all there is to it. At the end of the day, if we
do not love him enough, we are going to be in real trouble.
Now, what happens? What happens tomorrow if big giant
corporations, Exxon, whatever it may be, all get together and
decide, I will tell you what we are going to do. This guy is
not going to continue to farm. He is not going to continue to
do what he does. He decides he wants to go to the Bahamas and
hang out and absolutely have somebody send him an annual income
of $350,000 instead of his $28,000 and driving a 12-year-old
pickup truck. What do we do if we lose him?
Absolutely, whatever it may be, a foreign interest, Exxon
and whatever decides just out of the clear blue sky that what
they are going to do is they are going to plant one crop, and
then they are going to say, the price of corn is $150 a bushel.
If you do not want it, we are not going to plant anymore. What
happens to us? We have a meltdown in our food industry. We have
a meltdown in a crisis in this country like you can imagine. We
owe so much to those people it is off the chart.
Coach Tuberville is a great friend. We are both coaches in
our own way. With all that being said, I absolutely promise
you, promise you to God above, we have got to fix this. We have
got to fix this right now. We have got to fix crop insurance.
We have got to have a farm bill that is a true bill, that
basically probably is regionalized instead of a one-size-fits-
all. It does not fit all. That is all there is to it.
I have grown many specialty crops, and I salute you for
what you do. It is a high-risk business. You are fighting
everything from regulations, to labor, and on, and on, and on.
We all are, but we got to wake up. Absolutely. If we do not
wake up right now and we awaken to those farmers leaving the
farm for whatever reason it may be, it is going to be a bad day
in America.
Mr. Chairman, I salute you in every way. Absolutely, I
thank all of you all that are involved in agriculture and
especially this Committee. Thank you so much for your testimony
and everything. God Bless America in every way, and we got to
fix it, and we better fix it now or we are going to be in a
heck of a mess. Thank you all so much.
Chairman Boozman. Thank you, Senator Justice. Again, very
well said. Senator Booker.
Senator Booker. Mr. Chairman just appointed privilege.
Forgive me for my language, but I just want to say, damn, I was
not a coach. I was a player in the once great Pac-10, that is
no more. If you are the coach and you talk like that, put me in
coach. Because I am ready to play in a bipartisan way to deal
with this.
Because this panel, I was sitting there listening and the
nobility of what you all stand for and what you all do, and the
unnecessary crap that you have to deal with that undermines
your ability to do what is the greatest profession to help
found this nation, which is to farm, to feed communities.
It is evident and we have to fix this stuff. There are
common-sense ways that I have been talking about for a long
time. Agriculture is the fourth biggest industry in my State,
and we are a so-called ``specialty crop'' State. This one-size-
fits-all does not work. It really does not work. We are a
nation that spends 93 percent of our agriculture subsidies on
the big commodity crops and does not support so-called
specialty crops in the way we do, nor do we do common-sense
things; limiting regulations, supporting labor to help them
out. This was really, really, to me, exciting to hear, Senator
Justice. I am coming for you. That is not a threat. That is a
compliment for us to work together.
I just want to take my few moments, if you all do not mind.
We are going to work on these issues, and I will champion them.
I just want to say, a lot of my farmers in New Jersey and
across the country are just struggling right now with an
immediate crisis, which is the illegal funding freeze that has
been imposed on thousands of USDA contracts.
I am getting calls and emails from farmers all across my
State from all different political perspectives that are just
saying, why are we investing money on farms for things like
planting cover crops or installing irrigation systems? Now,
those farmers are not receiving their reimbursements. They
outlaid cash and they are now in a crisis.
For many farmers, this is tens of thousands or even
hundreds of thousands of dollars that the USDA is now stiffing
them on. For some of these farmers, they are saying that if
they are not able to move forward with their spring planting.
They are ultimately at risk for losing their farms in
foreclosure because of what the USDA is doing to them. It will
be catastrophic. These reimbursement payments and signed
contracts with farmers that have been frozen, this is wrong.
The USDA has also frozen their reimbursements to nonprofits and
small businesses who provide critical assistance to farmers.
In Jersey, we have nonprofits and small businesses who give
this kind of technical assistance. They too are in crisis.
There are also groups who help farmers implement conservation
practices that we supported in a bipartisan way. There are
groups helping those farmers that are now facing this crisis.
All of these nonprofits and small businesses have signed
contracts with the USDA to provide these services. They have
laid out money in reliance upon them, and now they are being--
excuse my language Mr. Chairman, they are being screwed.
This is wrong, and it is hurting people, and it is a self-
inflicted wound that has got to stop. It is killing me that we
are now seeing people in my State, farmers that are laying off
staff that they are not getting the help they deserve and they
are not doing their innovations that are going to help them be
better stewards of the land because they know how to supply the
land. That is why a lot of these conservation programs have
been so oversubscribed. It is outrageous and it is illegal.
Multiple Federal courts have instructed the administration
to lift these bans, lift these broad freezes. The USDA is
ignoring the court orders and intentionally causing serious
harm to farmers across our country. On top of all that, the
USDA has fired many of the local level staff who farmers rely
upon, and who would be helping the farmers to navigate this
crisis.
I know Secretary Rollins. I voted for Secretary Rollins. We
need help. If the USDA does not immediately release the funding
to our farmers, I hope this Committee will quickly bring her
back here to explain to us why every day that we wait. We are
already in a farming crisis in this country. We are already
losing thousands of independent family farmers. This is
outrageous at a time that we have other issues we should be
dealing with right now, dealing with this crisis.
I just want to say one more thing on another subject
because I know I am not going to be here for the next panel. I
know Prop 12 is going to be brought up. I just want to say my
piece for 10, 20 seconds. I am concerned that there is no
witness here today to speak for the independent family farmers
who support Prop 12. The National Pork Producer Council does
not represent all the hog farmers in the country. They may
speak for the big producers. They may align with the biggest
multi-national corporations, but they do not represent our
smaller independent hog farmers.
In fact, a large group of those independent farmers filed a
BLE brief with the Supreme Court for Prop 12, arguing that Prop
12 helped them by creating new markets for their products and
allowing them to better compete with the big vertically
integrated meat packers like Smithfield.
I did not vote for Justice Gorsuch, but here is his brief
in his Supreme Court decision upholding Prop 12. Justice
Gorsuch cited directly these independent hog farmers and cattle
farmers in our country. I would like to ask unanimous consent
to enter the brief for these independent family farmers.
[The document can be found on pages 144-187 in the
appendix.]
Chairman Boozman. Without objection.
Senator Booker. Mr. Chairman, and Mr. Justice, if you want
to know where I am going to stand, it is for small, mid-size
independent family farmers. You started your statement by
talking about the average farms in our country. These
entrepreneurs, these folks have been devastated in the last
decade. We are losing thousands of farmers. I have sat with
them from the Midwest to around my State. This is a crisis
being made worse right now by the USDA, but I am hoping that we
can work together to solve some of these problems. Thank you,
Mr. Chairman.
Chairman Boozman. Senator Welch.
Senator Welch. Thank you very much. Before I start, I do
hope the Committee--Senator Justice, I really appreciated your
remarks. I think all of us feel pretty much the same way. The
farmers are the lifeblood of our local rural communities and
they--nobody works harder. Maybe the coal miners in West
Virginia, but they are right up there, the farmers and the coal
miners.
I am just shocked that where there have been agreements
made. We have farmers in Vermont who under the IRA made an
agreement, and in response to that agreement, borrowed money,
and then did the work that they promised to do. It might be
solar. It might be a streambed protection. Now got an email
saying the Federal Government's going to stiff them. I so
admire about farmers, like promise made is a promise kept.
Right? I mean, this is like impossible for the folks who do
this farming to imagine that you have an agreement and then it
is violated.
My hope Mr. Chairman, is that the Committee would weigh in
here and insist that these deals that have been signed and
where our farmers now put the money out, done the work and are
getting stiffed that we really strongly object and call on the
administration and reverse that.
I just want to ask some questions about specialty crops.
You know, so much of our Farm Program is on commodities, dairy
included, but the specialty crops, it is a funny name for me
because it is like everything local, everything fresh and
everything nutritious. My view is we need more, not less of the
specialty crops. A lot of our specialty crop farmers got really
hurt by the floods we had in July 2023 and July 2024. Our crop
insurance program really needs to be improved.
You know, maple syrup is one which I like to talk about.
With Senator Collins from Maine, I have endorsed the we have
sponsored and introduced the Supporting All Producers, the SAP
Act. We have, in that, what that does is helps the
sustainability of that program. Another program that we--or
another bill that we have introduced together, Making
Agricultural Products Locally Essential, the MAPLE Act.
I want to ask, Mr. Boring, we have talked a lot about maple
syrup, but the climate related disturbances are not unique to
maple. It is affecting all kinds of crops. My question is, what
can we do to provide specialty crop growers the support they
need to ensure the continuation of their family farms with all
the changes in weather?
Dr. Boring. Well, I think that is an excellent question.
Certainly, we enjoy maple syrup in Michigan as well. We are
coming into the season for that. Looking forward to that. You
know, I think we need more certainty for specialty crop
growers. I think so much of the questions that issues we are
talking about today come down to providing more certainty for
producers, and in some ways, better valuing the impacts of what
these crops are, not only for farms, but for the rural
economies, the process, so many of them that the communities
that they feed.
We have touched on some, points around, you know, revisions
to crop insurance, certainly. We need better management tools
so that we can deal with increasingly extreme and erratic
weather. I think there is promise about looking at how we
broaden out conservation practices and impact----
Senator Welch. Let me go to another question. I mean, I
think we have to have more emphasis on them because the real
opportunity is it is local, it is nutritious. The people in the
communities really support it, and it is entry point for some
younger farmers that does not have as many financial barriers.
You know, just as an example, Mr. Chairman, the USDA has a
Specialty Crop Block Grant Program, and Vermont received
$334,000. That is not a lot of money in the scheme of things,
but it did a lot in Vermont. With a $56,000 grant, one USDA
recipient in Vermont was able to expand the market
opportunities for 60 local farmers. A lot of this is like the
farm stand-type of situation. This is tiny compared to the $6.3
billion that we spend on the Commodity Crop Program. It is
important, I know to you, but the specialty is really important
as well.
Tell me, how has the Federal funding--and Mr. Boring--
freeze affected our specialty crop growers?
Dr. Boring. It creates uncertainty, and I think that is the
biggest question of what those risk mitigation tools are going
to be into the future of the reliability and access to markets
when crops might be harvested later this fall. There is
uncertainty on the research front as researchers are working on
this. In essence, uncertainty.
Senator Welch. Thank you. I yield back.
Chairman Boozman. Thank you. Senator Lujan.
Senator Lujan. Thank you, Mr. Chairman. Mr. Chairman, as I
begin, I would like to ask that the written testimony from Gene
Baca of Bueno Foods that his remarks be submitted into the
record.
[The letter can be found on pages 188-190 in the appendix.]
Chairman Boozman. Without objection.
Senator Lujan. Thank you so much, Mr. Chairman. Mr. Baca is
a 14th generation New Mexico founder and former President of
the New Mexico Chile Association, and a leader in New Mexico's
food and agricultural industry.
Now, the strength of our country and our agricultural
industry I believe is its diversity. That is a word that I use
a lot. It is a good word. It talks about our crops. Diversity
and crops is good. The success, Mr. Hinton, that you described
with the varieties and the diversity you have of crops help you
prosper and connect with more folks, whether it is domestically
or internationally. I applaud you for that as well.
The diversity of our growers and the products they raise
and grow help make us stronger as a nation. We need more
producers in America, not fewer producers. We need more
generations. Well, I cannot brag that I am eight generation
farming, so I am fourth generation in the family house that I
live in today and the little farm that I still call home. God
willing, it will be in the family for generations after us.
The power of finding more farmers, encouraging younger
generations to get involved and stay involved is so critically
important. I have spoken many times in this Committee about how
the farm bill can and should do more to support the diverse
farms and ranches across our great country. I look forward to
working on some bipartisan initiatives where we provide support
farmer-to-farmer.
You know, there is a lot of programs out there that provide
support to farmers, but if you are a farmer and you are giving
your time to another farmer to teach them how to farm and
qualify for these USDA programs, you do not get compensated a
penny out of the generosity of your heart because you care
about the industry. Well, there should be a support program for
that so we can tap into the genius of existing farmers and
producers across the country and learn from them how best to do
what you do. I look forward to continuing this work, and as I
said, it is bipartisan.
Now, Mr. Etcheverry, in your testimony, you mentioned the
frustrations that New Mexico growers have with crop insurance
and your desire to see it expand. What challenges do you see
specialty crop growers facing when looking at the risk
management tools currently available to them?
Mr. Etcheverry. Sir, bureaucracy. We want the insurance and
there is minimal insurance. We asked the USDA to be able to get
more insurance and we were basically told, okay, go collect the
data yourself and then we will take a look at the data you
collected. We are all working full-time jobs. The average on-
farm time for a grower is 18 hours a day. For him to stop and
do the job that the USDA should do is hard enough.
Senator Lujan. I appreciate that, Mr. Etcheverry and Mr.
Chairman. As I have learned from smaller producers across the
country, there are offerings on paper, but they do not work
once folks try to get them to use them. I often compare it to
when we talk about water rights in the West. We like wet water,
we do not just like water on paper. Everyone is chuckling here
because you know what I am talking about.
It is the same vein in this space. You should not just get
a piece of paper that says you bought the policy. It has got to
work for these folks. I look forward to working with you on
that and the Ranking Member.
Now, Ben, I want to maybe get something from you for the
official record so that you have some thought to put into this,
but specifically, what should Congress do to expand access to
risk management programs for specialty crop growers? I would
invite all of you to help us understand how to cut through that
bureaucracy as well, and then make sure that that policy is
actually applicable to what you are doing on the ground and
helping folks.
There is a farmer from New Mexico that testified to this
Committee not long ago, and he taught me that he had to learn
how to farm USDA. I said, ``What do you mean by that Mr.
Bustos?'' He said, ``If I don't farm USDA, I don't get access
to any of these programs. I have to change the way that I was
planting, change the way that I was going after programs.''
That thought has stuck with me for years at a time because it
should not be that case. You are there to produce food, to
nurture that land, to make sure that you are selling those
crops. You do not need to be going through all these other
steps. I hope that we can get that better as well.
Mr. Chairman, I have a slew of other questions, but I have
gone on and on my own. I am just going to submit them into the
record to each and every one of you. Mr. Etcheverry, I cannot
thank you enough for taking time to travel from home to come
out here. I mean this truly because you are in the midst of a
lot of important decisions that are taking place as we speak,
but it means a lot to the people back home that you are here. I
hope that the rest of the country just falls in love with chile
as much as we love it as well. Thanks, again.
Chairman Boozman. Thank you all very much for being here.
We appreciate it. Let us swap panels real quick. Again, thank
you all so much. Your testimony was great.
[Pause.]
Senator Klobuchar. [Presiding.] All right. Thank you.
Chairman Boozman had to go vote, so he has given me the gavel,
so who knows what is going to happen. I am pleased to introduce
this second panel, and if we could all sit down. Thank you.
There we go. That first panel could not have gone better. As
you can see, we have a lot of interested Members and a lot of
bipartisan support for a lot of the ideas we are talking about.
Our second panel. First of all, we have Mr. Ben Lehfeldt
and he serves as President of the American Sheep Industry
Association. A fifth-generation sheep rancher from Montana, Mr.
Lehfeldt's family has been involved in the sheep industry for
140 years. He also serves as President of his County Farm
Bureau, serves on his county FSA committee, and is chairman of
his local school board. I look forward to hearing about your
perspectives on the sheep industry.
We are also joined by Mr. Buck Wehrbein. Thank you very
much. I know that Senator Fischer wanted to be here to welcome
you. She said great things about you. I will introduce you for
now. You are from Waterloo, Nebraska, is that right? You serve
as President of the National Cattleman's Beef Association. I
think Senator Fisher knows a little bit about cattle. Mr.
Wehrbein brings over 45 years of experience from the cattle
feeding sector across both Texas and Nebraska, and has served
in various leadership posts in the beef industry. Thank you for
being here today. It is also an important industry in my State.
We are also joined by Mr. Harold Howrigan. Senator Welch is
here to introduce Mr. Howrigan.
Senator Welch. Thank you very much. Mr. Howrigan is here
from the dairy capital of the United States of America,
Sheldon, Vermont, and we are glad to have him. Harold and his
wife, Bet, she is an elementary teacher, are the sixth
generation on their family farm. Is that right? Six
generations? He has got grandkids there right now doing the
work. Well, we are here four adult children, five
grandchildren. He is in business with his brothers, Lawrence,
and Michael, and his three sons, three nephews, and their
families.
They have got four dairies, 350 cows on each. I started out
my political career on the Agriculture Committee in the State
of Vermont in 1981. Your uncle, Francis, was my boss on the
Agriculture Committee and one time he gave me the highest
compliment. He said, ``You're a dairy guy.'' I am delighted to
have you here representing Vermont dairy. It is just wonderful,
and we are going to see a great farmer. Thank you.
Senator Klobuchar. Very exciting. Thank you, Senator Welch.
Now, Minnesota is the top turkey producing State in the Nation.
I do not know if you knew that, Senator Welch?
Senator Welch. I did.
Senator Klobuchar. Yes, as well as the second top pork
producer in the U.S. We are fortunate to have two outstanding
Minnesota witnesses, and Senator Smith and I welcome both of
you. First of all, Lori Stevermer of Easton, Minnesota. Lori
currently serves as the President of the National Pork
Producers Council's Executive Board. She is the Customer
Success Manager for Alltech's U.S. Pork Business, having spent
her time in sales and marketing in the animal nutrition
business for over 30 years.
I often see her at the Minnesota State Fair at the pork
booth. There with our little oink oink hat. We welcome you,
Senator Welch, I know you want to wear one of those. Lori is a
graduate of the University of Minnesota with a bachelor's
degree in Animal Science.
John Zimmerman is also with us. John is the Chairman of the
National Turkey Federation. John is a 35-year veteran of the
turkey industry, and a proud second-generation turkey farmer
who also raises corn and soybean. It gives him a unique view of
all of this being diversified that way. He does that on his
family farm with his wife Kara and their son, Grant.
I have known John for several years, and I remember when
avian flu hit and just the emotion of so many of yours and your
producers during that time. I know you are going to provide an
incredibly valuable perspective to this Committee today.
We also have with us Tony Wesner from Seymour, Indiana, on
behalf of the United Egg Producers. Mr. Wesner serves as CEO of
Rose Acre Farms, the second largest egg producer in the Nation.
He has served in various roles with Rose Acre Farms over the
past 30 years. Given everything that is going on, there is a
lot of discussion about eggs right now and what is happening
with avian flu and prices. I really look forward to your
testimony on the challenges that our egg producers currently
face. Thank you for being here today, Mr. Wesner.
Now we are going to start with you, Ben, thank you very
much for being here.
STATEMENT OF BEN LEHFELDT, PRESIDENT, AMERICAN SHEEP INDUSTRY
ASSOCIATION, LAVINA, MONTANA
Mr. Lehfeldt. Thank you very much. Chairman Boozman,
Ranking Member Klobuchar, Senators, thank you for inviting me
today. My fellow sheep ranchers in the entire industry
appreciate the opportunity to share our Federal policy
priorities. The farm bill, specifically, and 2025, in general,
will be key for the survival of our industry, given the impacts
from Federal regulations, taxes, Federal programs, and trade on
my fellow producers.
As the oldest livestock trade association in the country,
we are a key component to America's future. From the land we
have cherished and protected for generations, to the uniforms
worn by our American warriors, and the high-quality American
land that has fed them and their fellow Americans for
centuries. We are proud and a key piece of that American story.
Sheep producers are dealing with record high input costs
and depressed or flat markets for lamb and wool. The wholesale
lamb market has been stagnant for the past year and any uptick
is quickly dampened by a surge of imports of Australia and New
Zealand lamb. In fact, 2024 saw portions of those imports
increased by one-third over 2023. ASI's producers are looking
for solutions to help curb the influx of those imported lamb
that seems to continually floor our market.
Thanks to the Chairman's encouragement last year, USDA's
Risk Management Agency issued a report assessing the risk
management tools currently available to the sheep industry or
lack thereof. The report acknowledged our need for a quality
risk management tool, but ultimately, it did not provide
recommendations. We therefore ask that you direct the Secretary
to provide recommendations for a viable sheep-specific risk
management tool.
A large share of our 2024 wool clip did not receive a bid,
and yet, we are now sharing the 2025 clip. The 2018 Trade War
with China blew up our single largest market for American wool.
This loss was followed by a pandemic that wiped out demand for
most wool garments, a lack of demand easily seen in our
overflowing wool warehouses and something well known and used
by our buyers' purchasing decisions. We ask the Committee to
update the wool marketing loan rate that unlike other
commodities, has not been updated since 2002.
We strongly support the 2024 House bills proposal and
appreciate your mirroring of that effort. In addition, we ask
your strong support in ensuring that the administration
includes wool in any future market equalization payments to
help rectify a long-standing trade imbalance. Free trade only
works if it is fair trade.
One-third of our America's sheep herd is under the watch of
an H-2A sheep herder. Our labor costs have skyrocketed over the
past eight years, salary alone in California, the second
largest sheep producing State is nearly $58,000 annually per
herder. This combined with the mandate that we provide the
herders with food, board, and clothing, while also covering
their application and visa fees has driven our cost to an
untenable level. California has lost nearly 15 percent of sheep
production over the last two years alone. Our survival is
literally reliant on a modernized Sheep Herder Guest Worker
Program.
In closing, we support the FMD and MAP programs, the
reauthorization of the Livestock Mandatory Price Reporting, the
enhancement of conservation and technical assistance tools, and
the vital funding from our farm bill's orphan programs. I
pledge ASI's full support for your efforts to secure our
priority request in the 2025 Farm Bill. Enactment of a farm
bill is crucially important to the thousands of sheep
operations across the country. Thank you for your efforts to
continue American agricultures uniquely important role in
feeding, fueling, and clothing the world. We are proud to be a
part of it. Thank you.
[The prepared statement of Mr. Lehfeldt can be found on
pages 87-90 in the appendix.]
Senator Klobuchar. Well, thank you. We have now been joined
by Senator Fischer who was off of voting, and I know she wants
to say a few more words about you, Mr. Buck Wehrbein, who is
probably the best name ever for a cattle rancher we could have.
Go ahead.
Senator Fischer. Thank you, Senator Klobuchar, and thank
you to all the witnesses for being here today.
Nebraska is the beef State, and so I am very, very happy
today to have Mr. Buck Wehrbein here as a witness. In May 2023,
when Chairman Boozman visited Nebraska on his farm bill tour,
we were able to visit Buck's feedlot and hear directly from him
about how the farm bill could support cattle producers.
Mr. Wehrbein grew up in eastern Nebraska on a farm raising
cattle, hogs, and chickens. He has managed custom feedlots in
Nebraska and in Texas--we will forgive him that--since 1984,
while feeding his own cattle since 1980. He has been active in
the beef industry, and he has served as both Chairman and
Treasurer for the Nebraska Beef Council, and served on the Beef
Promotion Operating Committee.
He currently serves as President of the National Cattleman
Beef Association. Buck and his wife have been married 50 years.
He has three children, seven grandchildren, and 10 great-
grandchildren. How is that possible, Buck? I am very, very
proud to have you here today, Buck, representing Nebraska, and
I look forward to hearing your testimony. Thank you for being
here.
Senator Klobuchar. Thank you, Senator Fischer. Mr.
Wehrbein.
STATEMENT OF BUCK WEHRBEIN, PRESIDENT, NATIONAL CATTLEMEN'S
BEEF ASSOCIATION, WATERLOO, NEBRASKA
Mr. Wehrbein. Chairman Boozman, Ranking Member Klobuchar,
and Members of the Committee, thank you for inviting me to
testify before you today on the state of the cattle business.
My name is Buck Wehrbein, I am currently serving as President
of the National Cattleman's Beef Association, the oldest and
largest organization representing cattle producers in America.
Through NCBA's century-old grassroots policy process, our
members direct us to advocate their interests here in the
Nation's capital. It is on behalf of these family seed stock,
cow calf stocker, and feeding operations that I appear before
you today.
Overall, I am pleased to report that the state of the
cattle industry is strong. Strong cattle prices and beef demand
have made the marketing environment for cattle better than
virtually any time in the last five years. It is worth noting
that these market improvements have occurred without any new
legislation or regulation aimed at the cattle markets.
While we have reason for optimism, like everyone else in
agriculture, cattlemen and cattlewomen still face challenges,
particularly with input costs that seem to never stop rising.
Unfortunately, the rising cost of feed, fuel, animal health
products, and other essentials still pose the greatest threat
to producer profitability. We are hopeful Congress and the new
Trump Administration can swiftly adopt policies which will curb
these inflationary pressures and deliver critical relief to
cattle producers.
As you look for ideas on how to accomplish this, I would
draw your attention to the following key issues. A significant
portion of cattle producers input costs result from compliance
with arduous Federal regulations, whether adhering to agenda-
driven Endangered Species Act, and National Environmental
Policy Act requirements, or navigating miles of bureaucratic
red tape to access farm programs, the outsize impact of Federal
rules cuts into producers' pockets.
While we are grateful that some of the most atrocious
proposed regulations like the Biden Administration's attempts
to rewrite the Packers and Stockyards Act have been abandoned,
more oversight is needed to ensure similarly harmful rules
never finalize.
In a Post-Chevron deference world and with a renewed eye on
government efficiency, we are hopeful that common sense will be
inserted into the rulemaking process. Producer profitability is
always at the forefront of NCBA's priority, and right-sizing
the Federal Government is the smartest way to begin addressing
that issue.
One of the most effective tools designed to put dollars
back into the pockets of farmers and ranchers is the Beef
Checkoff. This immensely popular program has come under fire
from the radical animal rights industry and the fake farm
groups they bankroll. The truth is the Beef Checkoff works for
producers, and it does all this with the pooled resources of
cattle producers across the country at zero cost to the
taxpayer.
The Beef Checkoff is the model public-private partnership,
and NCBA urges Congress to reject measures aimed at dismantling
it. NCBA also urges the House and Senate to swiftly adopt a
farm bill. We have supported and continue to support Chairman
Thompson's bipartisan legislation and your framework, Mr.
Chairman.
There are many other important issues which I do not have
time to address in my opening statement, and I would direct
your attention to my written testimony for more detail. In
closing, Mr. Chairman, NCBA is ready to work alongside this
Committee, this administration, and anyone else to ensure the
future of the cattle industry remains strong. Thank you for
your time, and I look forward to answering your question.
[The prepared statement of Mr. Wehrbein can be found on
pages 91-102 in the appendix.]
Senator Klobuchar. Thank you very much. Next up, Mr.
Howrigan.
STATEMENT OF HAROLD HOWRIGAN, BOARD MEMBER, NATIONAL MILK
PRODUCERS FEDERATION, FAIRFIELD, VERMONT
Mr. Howrigan. Chairman Boozman, Ranking Member Klobuchar,
thank you for the opportunity to testify. My name is Harold
Howrigan. My wife, Bet, and I, are sixth generation on our
family farm in Vermont. I am honored to serve on the board of
both Dairy Farmers of America and National Mountain Producers
Federation, which Dairy Farmers of America is a member. I am
pleased to speak today on the dairy industry. We appreciate all
the steps you have taken toward completing a farm bill, and we
urge this Committee to prioritize timely passage of a new five-
year bill to provide certainty to our industry.
The Dairy Margin Coverage Program has served farmers well
during difficult times. Since it was implemented six years ago,
our farm has consistently purchased the maximum $9.50 coverage,
knowing it is meant to be a safety net when needed. We urge
this Committee to continue the program, and update its
production history calculation to reflect more recent on-farm
production levels. I thank you, Chairman Boozman, and Ranking
Member Klobuchar, for your support for this update.
We are also pleased that USDA has finalized its Federal
Milk Marketing Order Modernization decision, but we need this
Committee's help on one piece. The dairy industry lacks
accurate transparent data on dairy product processing costs. We
thank Members of this Committee for supporting language to
require USDA to conduct mandatory processing cost studies every
two years. This will give us all better data, and we can hope
to work with you in the future to get this done.
I will touch on just a few more topics today. First,
agriculture labor reform. We continue to face an acute shortage
of workers. Dairy farmers consistently try to hire domestic
workers, but ultimately rely on immigrant workers to make sure
we can produce our milk. We strongly urge Congress to enact
long overdue legislation to provide permanent certainty for our
current workers and their families, and to open the H-2A
Program to dairy. Failing to act risks damaging the vitality of
our entire sector.
Second, trade. Nearly one-fifth of U.S. dairy production is
exported, and this share is only likely to rise. We must seek
new market access so we do not continue to slip behind our
competitors. We urge doubling the funding for trade promotion
programs, which boosts the presence of American dairy
worldwide. We also urge Congress to help resolve trade issues
with Canada during the USMCA review.
Third, nutrition. Dairy is a nutrition powerhouse, but
continues to be under consumed by most Americans. I am grateful
to you, Senator Welch, for co-authoring the bipartisan Whole
Milk for Healthy Kids Act to fix our school nutrition problem.
I urge this Committee to swiftly pass this legislation.
Finally, H5N1. U.S. dairy farmers continue to work closely
with USDA, FDA, and other agencies to safeguard dairy herds and
farm employees from highly pathogenic avian influenza. We
appreciate USDA's work to accelerate vaccine development and
urge that the vaccine be made available as soon as possible.
Thank you, again, for the opportunity to testify. I am
happy to answer any questions later.
[The prepared statement of Mr. Howrigan can be found on
pages 103-112 in the appendix.]
Chairman Boozman. [Presiding.] Thank you. Mrs. Stevermer.
STATEMENT OF LORI STEVERMER, PRESIDENT, NATIONAL PORK PRODUCERS
COUNCIL, EASTON, MINNESOTA
Mrs. Stevermer. Well, good afternoon, Chairman Boozman,
Ranking Member Klobuchar, and Members of the Committee. I am
Lori Stevermer, pork producer from Easton, Minnesota, and
President of the National Pork Producers Council.
Every morning when I wake up on my family farm, I think
about two things. First, producing wholesome nutritious pork
while serving my community and employees.
Second, how policies and regulations impact families across
America, not just now, but for future generations.
For several years, America's over 60,000 pork producers
have faced difficult times. While farmers are ever optimistic
about the future, we are emerging from multiple years of
losing, on average, $30 per pig. Production costs have declined
and hog prices have improved, but many farmers have not yet
recovered financially from the worst period of losses in our
industry's history.
To provide the certainty, we need to continue farming,
American agriculture needs a five-year farm bill in which pork
producers have three needs. First, we must address the problems
caused by California's Proposition 12, which has increased
farmers' operating cost, created business uncertainty, and
raised pork prices at the grocery store. As you know, this law
reaches far beyond California to include farmers in other
States and even other countries.
The outcome of Prop 12 defies common sense and creates a
patchwork of differing State regulations if Congress does not
act. Prop 12, opposed by both President Trump and President
Biden, is harming small and medium family farmers the most. We
have followed the processes in place to address this issue, and
we are before you because the Supreme Court has said it is a
matter for Congress to take up.
Second, we must ensure we protect our animals from foreign
animal diseases by funding USDA programs for detection,
prevention, and rapid response to outbreaks.
Third, we must promote our exports by funding the Foreign
Market Development Program and Market Access Program.
Another matter that deserves this Committee's attention is
a five-year reauthorization of the Livestock Mandatory
Reporting Program. It ensures reliable and accurate
information, influencing critical business decisions is
available to farmers like myself and others at this table.
Farmers across the country desperately need employees. The
H-2A Visa Program must be expanded to include year-round
foreign-born workers. Given our ongoing challenges, farmers
need assurances we will not be subject to regulations that
restrict our ability to buy and sell our animals. For that
reason, we urge Congress and the administration to defund and
withdraw the Packers and Stockyards Rules.
Finally, let me say a few words about international trade.
Without trade to our customers beyond our borders, we see and
feel deep substantial losses. International trade provides us
with an additional $66 a pig. Without those markets for a wide
range of products we produce, many of us simply would not be
able to continue to farm.
U.S. Pork producers face tariff and non-tariff barriers to
our products in many countries, including China and the EU.
Opening new and expanding existing markets is paramount and
allows many farms to stay afloat. The best way to do this is
through comprehensive trade agreements, eliminating those
tariff and non-tariff barriers. We now export more pork to the
20 countries where we have a comprehensive trade agreement than
to the other 80 countries where we ship pork.
It is also important to realize that there are feed
ingredients, reimport, including amino acids and trace minerals
only available from China. We must keep this in mind as
Congress and the administration continue to have conversations
on the future of our relationship with China.
We are proud of the work we do and appreciate the
opportunity to feed American families and to present our
perspective on the agricultural economy. Thank you for the
opportunity to testify before you today.
[The prepared statement of Mrs. Stevermer can be found on
pages 113-120 in the appendix.]
Chairman Boozman. Thank you. Mr. Zimmerman.
STATEMENT OF JOHN ZIMMERMAN, CHAIRMAN, NATIONAL TURKEY
FEDERATION, NORTHFIELD, MINNESOTA
Mr. Zimmerman. Good morning, Chairman Boozman, Ranking
Member Klobuchar, Members of the Committee. Thank you for the
opportunity to share the turkey industry's perspective today.
This morning I would like to highlight the animal disease
portion of the written testimony I submitted for the record.
For more than a year, the turkey industry has been dealing
with the negative impacts of highly pathogenic avian influenza,
as well as another highly consequential respiratory virus,
avian metapneumovirus, which has impacted between 60 and 80
percent of turkey flocks nationwide.
In Minnesota alone, 127 cases of HPAI in commercial turkeys
have led to the loss of more than 6.6 million birds. While HPAI
is 100 percent lethal to birds exposed to the virus long
enough, aMPV is more subtle, but equally impactful due to its
ability to significantly reduce egg sets of the breeder stock
that produces the next generation of turkeys, and causes
severe, prolonged mortality in commercial flocks.
Together, these two respiratory viruses have exponentially
increased volatility, supply shortages, and market uncertainty.
This one-two punch has caused many farmers to quit raising
turkeys with several others on the brink of shutting down.
Banks are very concerned about our farm's financial health, and
some farmers are struggling to obtain credit after losing 30 to
50 percent of their flocks to aMPV.
HPAI is a terrible disease, but with aMPV, there is no
indemnity and no assistance. I would urge Congress to make aMPV
an eligible disease under the USDA's Livestock Indemnity
Program. This would assist growers in mitigating the economic
loss, and will go a long way to assist poultry producers who
are being hit hard stay on their farms, producing the most
abundant food supply in the world.
On a more positive note, the first imported aMPV modified-
live vaccine doses have reached Minnesota farms this month with
more on the way to assist farmers nationwide. I want to
personally thank the Chairman and Ranking Member Klobuchar for
leading the charge and supporting the importation of this much
needed imported modified-live vaccine for aMPV. I also want to
thank USDA for their efforts in getting this across the finish
line.
However, I also think it is important to acknowledge the
industry's incredible frustrations with USDA's review process
of an imported modified-live vaccine. I appreciate the
importance of ensuring the safety of a vaccine and that the
aMPV vaccine was the first of its kind to ever be approved.
However, when an entire industry is at significant risk, it
should take a matter of months, not over a year for a widely
used and well-established global vaccine to be imported and
available for use. I would encourage the Committee to use your
experience in evaluating USDA's review process to ensure a
faster, more efficient response to future animal disease
outbreaks.
Unfortunately, aMPV is only half the battle. Time is of the
essence on HPAI. A national strategy targeting all potential
hosts of H5 influenza is lacking, allowing the virus to spread.
The global poultry industry is in crisis. Pursuing a
successful vaccination program that does not negatively impact
trade as part of a stamp-out strategy, is the key to
significantly reducing disease rates. If the U.S. fails to lead
globally on implementing animal health solutions capable of
preventing disease and death in commercial poultry, we will be
at a significant disadvantage in world trade. Empowering USDA
to increase proactive engagement with trading partners and
solidify a new framework to reduce disease outbreaks impact on
the global food supply is essential.
In closing, as Congress writes a new farm bill, NTF urges
the renewal and robust funding of animal disease programs, and
the establishment of an HPAI strategic initiative to ensure the
turkey industry has the tools necessary to combat the current
and future animal health diseases.
I also recognize that Secretary Rollins just announced
measures to address HPAI and we appreciate the urgent
attention. After a brief overview, it seems only to cover the
egg laying industry. As I have stated in my testimony, the
turkey industry has been devastated by HPAI, and we ask that
any plan also address the urgent needs of the turkey industry.
Thank you, again, for the opportunity to testify today, and
I look forward to answering any questions you may have.
[The prepared statement of Mr. Zimmerman can be found on
pages 121-124 in the appendix.]
Chairman Boozman. Thank you. Mr. Wesner.
STATEMENT OF TONY WESNER, BOARD MEMBER, UNITED EGG PRODUCERS,
SEYMOUR, INDIANA
Mr. Wesner. Chairman Boozman, Ranking Member Klobuchar, and
the Committee, on behalf of UEP and Rose Acre Farms, I would
like to thank you for the opportunity to be heard. I will talk
a little more about avian influenza as my colleague from the
turkey industry just did.
Since 2015, we have lost 10 million birds to avian
influenza. Six million of those since January 1st of this year.
That is 25 percent of our current production. There has been
162 million poultry since 2022, that has been put down, 126
million of those were layers, 792 were backyard flocks. To give
you an idea of the normal numbers of layers in this country is
about 315 million.
Since 2015, we have now seen an increase in, and we have
seen the problems with the dairy, and it is really not hard to
find wildlife in the areas that are positive. It is a
biosecurity nightmare and that is really our only method today
to deal with it along with depopulation.
A lot of talk today about egg prices. Egg farmers today are
not price makers. They are price takers. They do not get to set
the market on eggs. It is like a corn and soybean farmer. We
take what the price is and it is done on supply and demand.
Demand is very high right now. Still, that is different than
what we have seen in 2015. My theory on that is people are
still shopping for an affordable protein in the store, and so
they are still turning back to eggs because there is not a
cheaper alternative today. That is why you are seeing the high
demand. I also think the high protein diets that are popular in
this country now are fueling the protein craze. You have people
looking for more protein.
Another aspect of that is I think the egg shortage is
bigger than we know. There is a researcher at North Carolina
State, Dr. Ken Anderson. He is well respected. He would
estimate the backyard flock in this country at a size of 200
million birds or more. Remember I told you our commercial flock
is 315. I think that avian influenza has devastated the
backyard flocks in this country, and people really do not know
what is wrong with their birds. I think those people are now at
the store buying eggs, also.
We have the tool of indemnity, which helps. I would just
ask that we continue to look at it. There has been $1.4 billion
worth the indemnity paid out since 2022. I would ask that we
continue to look at that with common sense and fairness. It is
a way to have a stopgap measure to keep people in business.
Finally, when we get down to vaccination, UEP and Rose Acre
Farms fully supports vaccination in their industry. We have to
control this disease. We have to do it with offense, not
defense, which in my opinion is what we have done to this
point. We know of a farm in Colorado that 1.5 million birds
went positive three times in three years. They just got the
farm repopulated and two geese fell out of the sky within yards
of the first house down there just a few weeks ago. This thing
is not going to get better. It is going to get worse.
Nobody wants to see trade stopped because we start using
vaccines. I looked up on the charts. If you look at the chicken
last year that left this country, almost 40 percent of it went
to countries that are also vaccinating. I cannot understand why
we cannot get together with those countries and figure this out
so we do not ruin trade. Nobody wants to hurt anybody in the
poultry sector or in agriculture. Period.
Dairy, layer, and turkeys need the vaccine. Turkeys should
not have been left out on what was done today. I hope it was an
oversight, but it really needs to be done. Still, we start
taking this thing seriously. It is not a U.S. problem, it is a
global problem, and what is at stake is food security and
protein security. We have to put people in the room that are
smart.
I am not sure vaccine is 100 percent the answer, but I
think that if we go down that road and we start there, there
will be people working hard and spending a lot of money to try
to come up with answers, and I would look for you guys to be
leaders in that. It all starts with all of us on whether we are
going to fix this or not. Thank you.
[The prepared statement of Mr. Wesner can be found on pages
125-134 in the appendix.]
Chairman Boozman. Thank you. Mrs. Stevermer, can you tell
us more about how a disruptive patchwork of State laws like
Proposition 12 would be on the pork sector, and why it is
critical for us to utilize the farm bill to prevent these
harmful proposals from moving forward?
Mrs. Stevermer. Well, thank you, Senator Boozman. In my
role as president, I get the opportunity to talk to producers
of all sizes, small, medium, large. Some are Prop 12 compliant,
some are not. The concern that all of them have is that
patchwork of regulations. That if California could put in a set
of regulations and another State can do the same thing. That
patchwork causes chaos in our business because it is hard to
make business decisions. It is hard to make changes not knowing
what the next regulation might be.
That is why it is important that Congress addresses this.
The Supreme Court said it was Congress's issue to deal with. We
need to have it addressed in the farm bill to provide that
certainty so that we can make business decisions.
I would say it is also generational. When we look at the
next generation of farmers determining if they want to come
into their family farms and they see that uncertainty, it is
hard for them to know if that is where they want to be. Thank
you.
Chairman Boozman. Very good. Mr. Wehrbein, over the past
four years, the Biden Administration went far beyond its
mandate under the Packers and Stockyards Act to implement
costly, burdensome rules, often without being able to show any
quantifiable benefit to producers. Can you talk about the need
to prevent these rules from proliferating in the future, and
the impact that regulatory overreach has on livestock
producers?
Mr. Wehrbein. Thank you, Mr. Chairman. We feed about 70
percent of the cattle in our feedlot are customer cattle from
Okeechobee, Florida to the Big Island of Hawaii, and in all
points in between. Because of the opportunities for marketing,
we have a lot of different ways that we can market their cattle
so that they can be paid for the superior genetics and superior
animal husbandry and so forth that makes a superior product.
A lot of those opportunities would have been taken away by
the changes to the Packers and Stockyards Act. We do not need
the Federal Government shouldering their way in and telling us
how to market cattle. It would be very good if we could
eliminate the ability for the government to do that. That is a
hardship on us and these people, good producers producing good
product need to be able to be paid on the merit of their
product.
Chairman Boozman. Very good. Thank you. Mr. Wesner, thank
you for your comments on avian influenza. Can you speak about
the importance of strengthening the work between growers, USDA,
and States? You talked about this a little bit, and States to
respond to avian influenza, and to provide support to producers
when they are impacted?
Mr. Wesner. Well, I appreciate the question. Our experience
with USDA in navigating the bird flu problem, for the most
part, has been very positive. If I would say there is one way
to improve it is sometimes you have to get bureaucracy out of
the way and get decisions made. I think that is a--you have
heard that before this morning with some of the other
testimonies.
I would encourage U.S. data to tackle this bird flu thing
head-on with money and funding to support research. You know, I
was brought a product to me this week that is not a vaccine,
that is a pharmaceutical that is being used in Russia with good
results. It actually cures avian influenza. Those are the kind
of things is it real? I am not sure, but we have to look at it
and we have to go down and look at things like that all to try
to find an answer to this thing.
You know, there are people going hungry in this country,
and there are people going hungry all over this world, and we
have to protect the protein. So, USDA, and anything that the
Federal Government can do to be supportive of that research.
You know, vaccine is probably not the answer today, but it is
the only tool that we have. I really believe that we are going
to get better vaccines.
Right now, people have not worked hard on vaccines because
they do not know if they are ever going to be able to sell it,
or if it is ever going to be able to be used because they did
not think it was going to. The fact that the announcement's
today, I am hoping we have turned a corner that there will be
cooperation between USDA with the farmers, with the
researchers, that we really come up with an answer that makes
sense for avian influenza and makes sense for the American
consumer ultimately.
Chairman Boozman. Senator Klobuchar.
Senator Klobuchar. Thank you very much. Thank you. We have
had, not just the vote, but I have a Judiciary hearing, a
Commerce hearing, and I have now put on 5,100 steps, Mr.
Chairman, I just looked, running back and forth.
Avian flu, I raised the importance of a coordinated
response to this virus with Secretary Rollins during her
confirmation hearing, along with Senators Ernst and Fetterman.
We led a request of her, and I am looking forward to reading
the document today where the Secretary has come out with the
coordinated response.
Mr. Zimmerman, how would a strategic initiative bringing
together animal health experts from across impacted industry at
USDA and enhance our ability to mitigate and prevent the spread
of avian flu? I suppose you want to emphasize how important it
is to include turkeys in this response.
Mr. Zimmerman. Thank you, Senator. Yes, we do hope that
turkeys are included in future drafts of the announcement
today. We have been great partners with APHIS and USDA in
mitigating the disease outbreaks that we have had, and we are
very thankful for their support.
Looking forward, we have made incredible strides in
biosecurity, and I question whether that should be at the
forefront anymore. We are going to continue to push
biosecurity, but we have to look at new solutions, and a
strategic initiative around HPAI would help us do that. We need
to look into how, when and if we can address the trade issues,
how we will deploy a vaccine. We know it will not go to every
bird right away all the time. We know what birds we have to
protect the layer flock, obviously----
Senator Klobuchar. I see Mr. Wesner nodding his head.
Mr. Zimmerman. We are in agreement here. We need to have a
plan in place because we know that our trading partners are
going to request that plan. Getting the experts together to
address these issues that have not been addressed yet, but just
being prepared for the eventuality that we are going to be able
to vaccinate at some point in time in the future. Then, also
researching other novel ways to vaccinate. Right now, it would
be an injectable vaccine, and we cannot inject every bird in
the country. We have to look at other modes of delivering
vaccine for the future. Anything we can do to further our
knowledge of how to mitigate this disease would be incredibly
helpful.
Senator Klobuchar. Okay. Thank you. Mrs. Stevermer, thank
you for being here. Can you talk about how the threat of
tariffs and potential retaliation from trading partners like
Mexico, China, Canada, really the whole world, could impact
pork producers and have a--you already seen impacts in the
future's market. Could you talk about the tariffs on Canada in
particular?
Mrs. Stevermer. Yes, thank you, Senator Klobuchar. About 25
percent of our pork products are exported. That adds about $66
worth of value. The U.S. pork's industry is a net exporter, so
we export more than we import. Any type of retaliatory tariff
back on us would be concerning. It could be disruptive to our
markets.
I think it is also important to note that we get a number
of weaned pigs, small little pigs, from Canada into the U.S.,
especially in Minnesota. The increase in tariffs would increase
the cost of those piglets into the United States, and then, you
know, affect our cost of production. The countries that we have
the comprehensive trade agreements with; Canada, Mexico, they
are our top export.
Senator Klobuchar. USMCA.
Mrs. Stevermer. USMCA, those are our top exporting markets.
We are an integrated market here between Canada, U.S., and New
Mexico. I explained some of the ways we do that. We also talk
about animal health issues together. We are good partners, and
once again, any type of tariffs, retaliatory tariffs
especially, that would disrupt that business would be very
concerning.
Senator Klobuchar. All right. I appreciate your answer. Mr.
Howrigan, thinking of USMCA, knowing we need some improvements
there on dairy, but also knowing how important that agreement
is. I just noted that before the State agriculture
commissioners that I addressed yesterday. A number of us up
here crafted improvements to the former Dairy Margin Protection
Program which led to the creation of the Dairy Margin Coverage
Program in the 2018 Farm Bill.
The DMC Program serves as a safety net for dairy farms
across the U.S. As you know, it is working well, but I know
there are some improvements we can make, talking to my own
dairy farmers in Minnesota. What changes would you like to see
in the upcoming farm bill to improve the Dairy Margin Coverage
Program's ability to assist producers?
Mr. Howrigan. Thank you for the question. As I stated, DMC
is very important to the dairy industry and naturally like to
improve it. Fundamentally, we would at least like to stay
status quo with all the budget talks. National Milk Producers
Federation, which I represent here today, could not come to an
agreement on which way to go. Status quo is where they are.
Dairy Farmers of America would like to see it represent a
more average-size farm in this country. A five-million-pound
level, which it represents now is probably an eight or 10-year-
old number. I think the average dairy is up closer to seven or
eight million pounds of milk, which would justify coverage. We
would also like to see the basis increase of production
history. Right now, they are working with 2011 to 2013 numbers.
Dairy is a growth industry. We consistently have to produce
more milk each year as the price seems to stay pretty level.
Getting more efficient and doing everything we do on the
dairy means growing production. Raising that production history
would be helpful.
Senator Klobuchar. Got it. Thank you very much, all of you.
Chairman Boozman. Senator Ernst.
Senator Ernst. Thank you, Chair Boozman, and Ranking Member
Klobuchar. Thank you to the second panel of witnesses for being
here today. As many of you displayed in your testimonies this
morning, it is clear that the agriculture economy is
struggling. Last year, Congress was able to provide some
temporary support, but we really do need lasting changes in the
five-year farm bill, one that will actually focus on the farm.
Mr. Wesner, and Mr. Zimmerman, from your statements a
moment ago, you had said the continued spread of Highly
Pathogenic Avian Influenza, or HPAI, is a major concern for
many farmers and especially for farmers in my State. In the
last few months, we have seen over seven million birds just in
Iowa alone that have been impacted. Unfortunately, it is a
number that continues to grow every single day, even with
farmers who are adopting the heightened biosecurity protocols
and States that are implementing strict movement controls.
While there is a significant amount of work ahead, I am
thankful that this remains a top priority for the
administration. We did see earlier today, Secretary Rollins
announcing several steps she is taking to help mitigate the
ongoing outbreak. I am grateful that the Secretary has taken a
number of the suggestions that my friend and colleague Senator
Fetterman and I provided to the Department of Agriculture last
week.
One of the strategies includes developing new vaccines that
can effectively protect laying hens and turkeys from the virus.
USDA is also creating a task force to effectively work through
any trade concerns and maintain export access to international
markets. For both of you, let us start with Mr. Wesner, can you
explain why a vaccination strategy is so important to
preventing the spread of HPAI, and what do the next steps look
like in protecting our trade?
Mr. Wesner. The vaccination today is, I believe, our only
protection that we are going to have. If you look at diseases
that we have had in the poultry industry in the past, you know,
there is some of them that just the only way to come to get
past it was through vaccine. I think this avian influenza, now
that it is mutated to other species, and we have even had one
human death in the United States, vaccine needs to be
forefront. They need to be the right vaccines. They need to be
safe.
This is not a short-term. This is not going to happen next
year. We are talking a two-to-five-year thing to really, in my
opinion, see much advancement improvement. I think when the
light turns green and researchers and the people that do know
that it is going to be used, I think you will see advancements
may become quicker than I think. We have to go down this road
because right now, today, it is the only answer we have to do,
nothing is wrong.
Hopefully, they will come up with better answers. Right
now, the vaccines today, as Mr. Zimmerman said, you know,
taking a needle to 300 million chickens across this country, a
lot of them now cage free 45 percent or whatever, that is not
an easy task and easily done. Someone is going to help us come
up with a vaccine that makes sense. Today, what we have is what
we have and we have to start somewhere.
I applaud the administration for making that step today. I
just hope it does not take too long, and I hope that we move
roadblocks out of the way and that we go after it with a
vengeance, because there is a lot on the line.
Senator Ernst. I appreciate that. Mr. Zimmerman?
Mr. Zimmerman. We are beyond biosecurity. We have done as
much as we can. Some of our most strict biosecure facilities
are still contracting aMPV and HPAI. We need to expand the
toolbox. We have viral load exponentially increased with dairy
herds being infected now, and cats, and other species. We have
just seen a great increase in the incidents of HPAI in
Illinois, Indiana, and Ohio, where before it was in the
Midwest. We cannot track it like we used to because of the
viral load that is present in the environment.
The strategic initiative would help us decide the logistics
and the work that needs to be done to roll out a vaccine
strategy for multiple species, and I am including dairy in
this, so we can get the viral load diminished in the United
States. We do not plan to vaccinate every bird right away, but
if we can reduce that viral load through specific vaccination
in different regions while addressing the trade issues, it
would be a giant step toward controlling this virus.
Senator Ernst. Thank you. I appreciate it. HPAI is such a
huge, huge issue right now for all Americans. I apologize, I am
out of time. I did want to address Proposition 12 as well.
Senator Ernst. This also coming from Iowa, the number one
pork producing State in the Nation. It is a big deal and we
have got to figure this out. Thank you, Mr. Chair. Thank you.
Chairman Boozman. Senator Hyde-Smith.
Senator Hyde-Smith. Thank you, Mr. Chairman. Thank you,
panel, for being here. I like the two panels because we have an
opportunity to get to visit with many of you from throughout
the country.
Right now, I am going to have two things I want to address.
I am trying to be brief, and this one is for Mr. Lehfeldt. I
understand the U.S. sheep inventory has been so reduced because
we are competing with other countries. I have been texting with
Cole Estill, and I think that you were emailing with him last
night. I met with him. He has an operation in northern Nevada
and California. Also, Mike Bartley. They were very, very
concerned. I promised them that I would certainly address this
in this Committee.
The imports from Australia and New Zealand have increased
like 500 percent in the last many, many years, 30 years. It
seems to me that U.S. sheep producers are at a distinct
disadvantage compared to our foreign competitors. I am
concerned that the high volume and the low-priced imports could
put our producers completely out of business. This is certainly
what Mr. Estill and Mr. Bartley were telling me. Could you shed
some light on the challenges our domestic producers are facing
with the respect of high volume of the cheap imports that we
are seeing?
Mr. Lehfeldt. Yes. Thank you for your question. I
appreciate you meeting with sheep producers out there. You
know, it is a desperate need in a lot of places in the sheep
industry. Right now, we are close to 30 percent domestic, 70
percent imports. Right out of the gate, we have a 40 percent
currency deficit that we have to overcome that, you know,
producers have no absolutely no control over.
We struggle, especially out west, with predator control.
Our importers and those that bring in imported lambs do not
have those issues. We struggle with labor. We have talked about
that in States of California, Colorado, and Oregon. Even the
mandated Federal level has been increased to a level that is
completely untenable for these sheep produce. That is why we
are losing some of these big flocks. It is very, very important
that we understand these issues.
In California, you know, most of the largest producers of
sheep are actually delivering wildfire control in those areas.
In my State of Montana, we are delivering noxious weed control
on many cattle ranchers and fishing game sites instead of a
pesticide or an herbicide application. There are so many
opportunities with sheep. We just need that little pressure to
make sure we can be competitive.
Senator Hyde-Smith. Great. Thank you very, very much.
Another one top priority of mine in this new administration and
the immediate future is I want to talk about estate taxes,
death taxes. I just do not think there is anything this
Congress can do that would be more vitally important to keeping
acreage in production than addressing this.
Mr. Wehrbein, I will address you on this one. I want to
talk about that. You know, it is a death sentence for so many
family farms and businesses. We are cattle producers ourselves,
and we see this all the time with people in our stock yard who
sell cattle. I know what it is like to operate on limited cash
for all of these people, like many of us, who have a lot of
value tied up in the land.
The death tax, it is a massive burden on so many cattle
producers and farm operations, forcing these families to sell
off livestock, to sell off property after a death of a family
member simply to pay the IRS. I am thrilled that our Senate
Majority Leader Thune, has introduced legislation to repeal the
death tax. You would see me elated, dancing in the halls of
Congress, if this happens, and I am proud to be a co-sponsor of
it.
While tax legislation does not fall under this Committee's
jurisdiction, the farming community needs to be more vocal
about the death taxes. Many people do not realize how many
acres are taken out of production because of this when we are
trying to feed this country. We are losing acreage all the
time.
Will you please elaborate on the burden of the death tax in
U.S. cattle operations?
Mr. Wehrbein. Amen, and thank you for that question. The
way land is appreciated and the value of it now, which of
course is a good thing for the owner of it, as you said, when
it changes hands at a death, then the cost, they can either
have to sell or take on great debt to pay the tax on it. This
is a huge one, and we were very pleased with what the Trump
Administration did in their first term. We know that he wants
to reauthorize the Tax Cuts and Jobs Act and maybe even improve
on it. Even with the higher level that is in it now, that even
needs to be more.
I could not agree with you more that, that is a big one for
landowners and in agriculture, which is high volume, low
margin, it is especially a hardship. We appreciate your
concern, and we will be working closely with the administration
toward that end.
Senator Hyde-Smith. Thank you very much. I am out of time,
Mr. Chairman.
Chairman Boozman. Thank you. Senator Hoeven.
Senator Hoeven. Thanks, Mr. Chairman. I work closely with
our outstanding Chairman, Senator Boozman, also Ranking Member
Senator Klobuchar. In addition, I Chair Agriculture
Appropriations, and we have the Commodity Credit Corporation
Program under that. It is vitally important, and keeping that
tool going forward as we work on the farm bill is going to be
incredibly important.
I want to point to two examples. The first is at the end of
the year, because we were not able to put a new farm bill in
place. Some of the Members have talked about the importance of
that and getting it done. I, of course, agree with that very
strongly. We were able to put a one-year extension in place,
and we secured $33 billion in emergency assistance, which came
from the CCC, for our farmers and ranchers.
In addition, now we are looking at addressing avian
influenza, and we are using funding from the CCC. You know, day
in and day out between farm bills, when all these things happen
out in farm country, we need that tool to have the flexibility
to respond to our farmers and ranchers. There are two instances
right now here today that point out how important that is and
to be able to work with the administration to use it in an
effective way.
First to you, Mr. Wehrbein, your thoughts on as we get work
to get this $33 billion out in emergency assistance, do you
have any specific recommendations as to how that could be done
most effectively?
Mr. Wehrbein. Well, the first thing would be to talk with
the people that need it and hear what they need rather than
make the decisions up here, you know, through a central
planning idea.
Senator Hoeven. You do not think Senator Boozman should
just arbitrarily make the decisions all by himself?
Mr. Wehrbein. I do not think that is what I meant.
[Laughter.]
Mr. Wehrbein. As the Senator would do, and the Chairman
would do, would be to talk to the people that are out there in
the need.
Senator Hoeven. Sure.
Mr. Wehrbein. There is a great need, and it needs to be
expedited so it is quicker because they need it quickly.
Senator Hoeven. Yes. It is really key to getting to the
next farm bill with updated reference prices and affordable
crop insurance and the other things we need. Enhanced LIP,
ELAP, and LFP for our ranchers, right, those kinds of tools. It
is vital as a bridge to get to where we need to go with the
next farm bill. You would agree?
Mr. Wehrbein. Agreed.
Senator Hoeven. Okay. Then, Mr. Wesner, and Mr. Zimmerman,
you may want to both comment on this. Secretary of Agriculture,
Brooke Rollins, came out with a comprehensive plan this morning
to address avian influenza. I really want to commend her for
that. She has hit the ground running. We think she is going to
be a very strong, very effective Secretary for Secretary of
Agriculture. We are already working with her closely.
Her five-point plan, I do not know if you all have had a
chance to take a look at it. It looks to me like it is a solid
plan. It is comprehensive. Again, it will be CCC funding. We
are working with her on it very closely and intend to continue
to do that.
This is a huge problem, this avian influenza. Obviously,
the price of eggs is through the roof. Have you had a chance to
look at that five-point plan, and do you have any specific
thoughts or input that might be helpful as we work to implement
it?
Mr. Wesner. I looked at it briefly before we walked in here
this morning. I think it is a good start. I think it is a good
start. You know, the proof is in the details. You know, when it
gets right down to it, and I think that, you know, we just have
to go down the road and see where it leads.
I think all the things that we were worried about, they
have addressed somewhat in it. When you look at the details, we
will just have to see if it makes sense, how we are going to
attack it. You had to start somewhere. I commend the
administration, and I commend her for taking that step. Does
not matter what happens in the past, it only matters what we do
today, and what we do tomorrow.
I am excited about it. I think it is a good start. I really
do. We have got to come up with funding maybe for national
poultry research programs and things to really look at these
things. Not just deal with this problem today, but to deal with
problems in the next decade, and the decade after that so we do
not have to relive these things. I think it can be done, but we
cannot do it pulling funding out some of these research labs
where a lot of smart people can really come together and get
answers.
Senator Hoeven. Yes. Well, this is a $1 billion
comprehensive plan. I think she has really taken the right
approach here. Obviously, implementing it, we need to work
closely with folks like you. Because it is complicated. It
affects trade, affects so many things----
Mr. Wesner. It does.
Senator Hoeven [continuing]. to get it right and to make
sure it is effective and as expeditiously as possible. Anything
you wanted to add, Mr. Zimmerman?
Mr. Zimmerman. Yes. We have, obviously, seen the plan and
looked over it briefly. Obviously, this is a very fluid
situation that we are dealing with, but we do want to make sure
that all harbors of the virus are included in this plan; eggs,
poultry, and also dairy cattle, and wildlife also. Because if
we leave sources of the virus in the environment, we are just
going to be reinfected. I think we can all agree that
depopulation is an incredibly expensive, economically and
emotionally devastating, thing to have to do.
As we move forward and can look at different tools, vaccine
to be one of them, and if we can, you know, on a parallel path,
make sure the trade issues are addressed long-term, this will
be a much more financially viable solution to this virus
outbreak than what our current path has done. Thanks to
Secretary Rollins for looking at novel approaches to dealing
with high-path avian influenza.
Senator Hoeven. Thank you. Thank you, Mr. Chair.
Chairman Boozman. Senator from Kansas, Senator Moran.
Senator Moran. Mr. Chairman, thank you. I have chaired
hearings before, and the last thing you want is somebody to
walk in at the last minute and put their name plate up and ask
a question. I do not know what has been asked or answered, but
I did not want to miss the chance to get this panel's
instructions to me and to the Senate about the importance of
trade and what happens in the current circumstance with the
potential of tariffs.
Maybe the easiest question in that arena is what countries
could we enter into bilateral trade agreements with that would
be the most beneficial and something we might actually be able
to achieve. I direct that to whoever has the best answer.
Mr. Wehrbein. I will give a shot at it. Thank you. I would
say that we have an issue with two countries that perhaps we
should not be in an agreement with, and that is Brazil and
Paraguay, because they cannot live or will not live up to the
health standards that everybody else does.
Then, we have an agreement with Australia, and we have
bought beef from them for 20 years and have not spent one red
cent with us. It is not just having an agreement, but it is
also enforcing the agreement. That would be an example of what
you are talking about.
Senator Moran. Perhaps what you are suggesting to me is
that rather than looking for that next new market, make sure
that the agreements that we have in place today are ones that
are being enforced and the advantages of trade are being
realized.
Mr. Wehrbein. That is the way I would see it.
Senator Moran. Thank you.
Mr. Howrigan. Senator, dairy industry exports almost 20
percent of our products daily, weekly, monthly. About 40
percent of those go to our two neighboring countries, Canada,
and Mexico. I would encourage this Committee and administration
to when we look at the USMCA agreement to look at our partners
to the North and Canada, they have a history of kind of
circumventing the process they agreed to. Many of their TRQs
are traditionally given to companies from Canada in this
country for the trade. It kind of leaves us out. That plan
needs to be revised with them. Our Southern Border, Mexico,
they are a great trade partner, and from them I would hope we
would do no harm. Thank you.
Senator Moran. Let me follow-up with that and then I will
conclude, Mr. Chairman. Are there any efforts underway,
administration to, to dairymen or livestock producers, others
in having those, particularly about USMCA, at least the press
reports that there is going to be new USMCA agreements or
negotiated attempts at those new agreements? Are there
conversations going on between the administration, and are
those personnel yet in place, although we are in the process of
confirming one of the important players today?
Mr. Howrigan. As I understand it, the USMCA with Canada
will be reviewed as they have been in violation of some of the
parts of the agreement. I think it is.
Senator Moran. At some point in time, you expect to have
input into those agreements?
Mr. Howrigan. We hope to.
Senator Moran. Yes, sir. Thank you.
Chairman Boozman. I want to thank, again, all of our
witnesses for being here. You all did a tremendous job and this
is certainly very, very helpful. We appreciate your
participation. I know you have got other things to do, but both
panels represented their industries very, very well.
The record will remain open for five business days. With
that, today's hearing is now adjourned.
[Whereupon, at 1:14 p.m., the hearing was adjourned.]
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QUESTIONS AND ANSWERS
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