[Senate Hearing 119-328]
[From the U.S. Government Publishing Office]
S. Hrg. 119-328
INCREASING DOMESTIC CONSUMPTION OF
U.S.-GROWN AGRICULTURAL PRODUCTS
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HEARING
BEFORE THE
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED NINETEENTH CONGRESS
SECOND SESSION
__________
March 10, 2026
__________
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
63-068 PDF WASHINGTON : 2026
=======================================================================
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
Corey Weber, 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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Tuesday, March 10, 2026
Page
Hearing:
Increasing Domestic Consumption of U.S.-Grown Agricultural
Products....................................................... 1
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STATEMENTS PRESENTED BY SENATORS
Boozman, Hon. John, U.S. Senator from the State of Arkansas...... 1
Klobuchar, Hon. Amy, U.S. Senator from the State of Minnesota.... 2
WITNESS
Duvall, Zippy, President, American Farm Bureau Federation, Greene
County, Georgia................................................ 6
Perdue, Matt, President, North Dakota Farmers Union, Ray, North
Dakota......................................................... 7
Reed, Nathan, Chairman, National Cotton Council, Marianna,
Arkansas....................................................... 9
Bower, Jed, President, National Corn Growers Association,
Washington Court House, Ohio................................... 10
Burns, Cathy, CEO, International Fresh Produce Association,
Washington, DC................................................. 11
Metzger, Scott, President, American Soybean Association,
Williamsport, Ohio............................................. 13
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APPENDIX
Prepared Statements:
Duvall, Zippy................................................ 42
Perdue, Matt................................................. 63
Reed, Nathan................................................. 74
Bower, Jed................................................... 79
Burns, Cathy................................................. 86
Metzger, Scott............................................... 91
Document(s) Submitted for the Record:
Hyde-Smith, Hon. Cindy:
Buying American Cotton Act Coalition Letter.................. 106
Fetterman, Hon. John:
Bill S. 3068 to require original equipment manufacturers to
make available certain documentation, parts, software, and
tools with respect to farm equipment,and for other purposes 111
Brief of Civil Action No. 25-11816-IT........................ 126
USDA Letter to Secretary Rollins............................. 148
Question and Answer:
Duvall, Zippy:
Written response to questions from Hon. Raphael Warnock...... 166
Written response to questions from Hon. Adam Schiff.......... 167
Perdue, Matt:
Written response to questions from Hon. John Fetterman....... 169
Written response to questions from Hon. Adam Schiff.......... 170
Reed, Nathan:
Written response to questions from Hon. Raphael Warnock...... 172
Written response to questions from Hon. Adam Schiff.......... 172
Bower, Jed:
Written response to questions from Hon. Adam Schiff.......... 174
Burns, Cathy:
Written response to questions from Hon. Raphael Warnock...... 176
Written response to questions from Hon. John Fetterman....... 176
Written response to questions from Hon. Adam Schiff.......... 177
Metzger, Scott:
Written response to questions from Hon. Adam Schiff.......... 184
INCREASING DOMESTIC CONSUMPTION OF U.S.-GROWN AGRICULTURAL PRODUCTS
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TUESDAY, MARCH 10, 2026
U.S. Senate
Committee on Agriculture, Nutrition, and Forestry
Washington, DC.
The Committee met, pursuant to notice, at 3:02 p.m., in
Room 106, Dirksen Senate Office Building, Hon. John Boozman,
Chairman of the Committee, presiding.
Present: Senators Boozman [presiding], Hoeven, Ernst, Hyde-
Smith, Marshall, Tuberville, Grassley, Fischer, Klobuchar,
Bennet, Smith, Durbin, Booker, Lujan, Warnock, Fetterman, and
Slotkin.
Also present: Senator Husted.
STATEMENT OF HON. BOOZMAN, U.S. SENATOR FROM THE STATE OF
ARKANSAS, CHAIRMAN, U.S. COMMITTEE ON AGRICULTURE, NUTRITION,
AND FORESTRY
Chairman Boozman. Good afternoon, and it is my privilege to
call the meeting to order. I thank my colleagues for joining us
today.
I also want to thank our witnesses for being here. Many of
you farm, and we all know that it is an important time of the
year for you to be on the farm as you prepare to plant your
next crop. Today's hearing comes at a time of great financial
stress for America's farmers. If you are putting something in
the ground, you are probably losing money. It does not matter
what you are planting or where you are planting it; no row crop
is currently profitable.
In my home State of Arkansas, the last three years have
been absolutely punishing, and again, that goes across the
board with our row crops and all of agriculture, except for
cattle. Arkansas now holds the unfortunate distinction of
leading the Nation in Chapter 12 farm bankruptcies, a sobering
statistic. I remain committed with my colleague, Senator Hoeven
from North Dakota, and literally everyone on the Committee, to
pursue additional financial assistance for our farmers to
lengthen and widen the Farmer Bridge Assistance Program that
President Trump announced in December, which is so, so very
important.
The recent history of high input costs, high labor costs,
and high interest rates, coupled with lower prices and
significant trade headwinds for certain commodities, should
give us all good reason to think about what the future of
agriculture in the United States should look like. It is clear
that China is not a dependable trading partner and that Brazil
is doing everything that it can do to take over the
agricultural markets that, traditionally, have been dominated
by the United States. I commend the Administration for pursuing
new markets and holding our trading partners accountable.
Agricultural trade must remain a high priority, one of the
highest priorities for the United States. Expanding market
access and developing new trading partners is crucial to the
success of American producers and our rural communities.
However, our recent experiences made me think about how we can
build more robust domestic markets that will not subject our
producers to the whims of foreign governments. This hearing is
intended to begin that conversation.
My hope for today is that we start exploring new domestic
opportunities for our farmers. What are the impediments
limiting domestic consumption? What incentives would be
helpful? Are there legal, regulatory, or procedural obstacles
at the federal, state, or local level that need to be
addressed? Is the Tax Code structured in a way to make
American-grown commodities more attractive? Do we have the
necessary processing infrastructure? In the coming weeks and
months, the Committee will continue to explore this topic. I
intend on discussing this topic with processors, manufacturers,
and retailers as well. Domestic market development will remain
a priority of this Committee as long as I am Chairman.
Again, I want to thank my colleagues and our witnesses for
being here today, and now I recognize my friend and colleague,
Senator Klobuchar.
STATEMENT OF HON. KLOBUCHAR, U.S. SENATOR FROM THE STATE OF
MINNESOTA
Senator Klobuchar. Well, thank you so much, Mr. Chairman,
and thank you for holding this important hearing this
afternoon.
Whether a farmer grows corn and soybeans, or blueberries
and apples, our farmers need domestic marketing opportunities
to stimulate growth throughout our country. They need it now
more than ever, as you pointed out, Mr. Chairman. A few ideas I
would toss out there. One is E15, making that permanent and
year-round. There is bipartisan support for this, and I want to
thank Senator Fischer and Duckworth, and so many others who
have worked on this issue for we need to get it done. A
bipartisan farm bill seems to me a vehicle where we can get it
done, but there may be others as well.
We can also expand domestic opportunities by investing in
local markets by purchasing fresh produce and meat from small-
and mid-sized farmers, we can support local supply chains and
families. I was frustrated to see the administration cancel the
popular Local Food Purchasing Assistance Program last year, and
I hope that we can reinstate this investment. We can also
invest in organic agriculture, expand support for rural
businesses, and invest in research to develop new revenue
streams for farmers. I have long supported bipartisan efforts
to grow new domestic production of sustainable aviation fuel,
bio-based products, and industrial hemp. There is a lot more we
can do on hemp, that is a subject for another day, but this is
a growing market that we should be looking at and not going
backward on. These opportunities provide farmers with
innovative sources of revenue amidst a difficult farm economy.
It is no secret that we are exploring these domestic marketing
opportunities. We would be anyway, but the chaos caused by our
tariff and trade policy is causing many, many issues.
I appreciate my colleagues on both sides of the aisle who
have joined me in pushing back on the tariffs. The impacts of
the tariffs, record-high input costs, and the need to invest in
domestic markets are top of mind for Minnesota farmers. I
recently held two roundtables, one in Southern Minnesota, one
in Breckenridge in Western Minnesota, where I heard directly
about the uncertainty facing our farmers and ranchers, and that
is the hardest thing for so many of them. A tariff changes, it
goes up, it goes down. They do not know what to plant, they do
not know what to invest in, and then, in the end, it gets
harder and harder.
The best thing we can do, in addition to having less of
these tariffs and have them much more targeted, using a chisel
or a hammer instead of a sledgehammer, would be good, and the
second thing would be a bipartisan five-year farm bill that
meets the moment. Farmers need reliable access to credit,
modernized conservation programs, and new uses for their
products. These ideas could be included in a bipartisan farm
bill. At the same time our farmers and ranchers are struggling,
we also have families struggling. Paychecks are stretched
because of rising grocery and health care costs, and now, gas
costs, just as our anti-hunger programs face the steepest cuts
in a generation. We must do something here, and I did not like
the way these state shifts went on SNAP. I understand that our
colleagues would engage in some cuts to SNAP this last summer,
and I am hoping we can get to a better place.
I think it is really important for people to know that,
because of the way this was structured, with the highest error
rate states getting off scot-free, 10 of them, and the lowest
error rate states, of course, not having to pay, there is a
whole bunch of us in the middle, as in the entire Midwest. They
are going to see enormous cost shifts to our states and in some
states, counties. That is why the bipartisan National Governors
Association--I am not talking about the Democratic Governors
Association--the National Governors Association have come out
with a proposal to delay these cost shifts. The National
Conference of State Legislatures and other state and local
officials, we should give the states the time to get their
error rates down, and we should delay these cost shifts, and we
certainly should not be benefiting high error rate states over
ones that have lower error rates.
I hope as we look at a farm bill, and I know there is work
being done over in the House, that we include some corrections
to what happened last summer. Thank you, Mr. Chairman, and I
look forward to today's discussion.
Chairman Boozman. Thank you. Today, we are joined by our
colleague from Ohio, Senator John Husted, who will introduce
two of our witnesses. I did not realize that Ohio was taking
over the meeting.
[Laughter.]
Chairman Boozman. You are well represented. Thank you for
being here, and I know you are like everybody else is,
incredibly busy, but thanks for taking time to come over.
Senator Husted. Thank you, Mr. Chairman, to you and the
Ranking Member, and the Committee Members, thanks for allowing
me to introduce two Ohioans today.
First, I would like to introduce Scott Metzger, the
president of the American Soybean Association in Ohio. I would
just like to say that we grow products that feed and fuel
America, and so I am proud to introduce Scott today to provide
insight on how we can increase domestic consumption of these
homegrown products. Mr. Metzger is a sixth-generation farmer
from Williamsport, Ohio, where he grows soybeans, corn, and
wheat. He is also a member of the Ohio Farm Bureau, Ohio Corn &
Wheat Growers Association. Mr. Metzger is the--Mr. Metzger's
leadership is in guiding one of the largest farm organizations
in the country is a testament to Ohio's agricultural impact on
our great farm economy. I want to thank you for joining us
today, Mr. Metzger, and we are looking forward to hearing your
testimony.
Then, second, I want to introduce Mr. Jed Bower. Jed is--he
raises corn and soybeans with his wife, Emily, and their
children, Ethan and Emma, on the fifth-generation farm in
Washington Courthouse, Ohio. In addition to advancing corn
growers' interests at the national level as the president of
the National Corn Growers Association, Mr. Bower previously
served as the president of the Ohio Corn & Wheat Growers
Association, and continues to serve as an active member of
NCGA's farm-led leadership Committees. Ohio's farmers drive
economic growth and ensure our state remains a leader in
agriculture, and Mr. Bower's leadership with the National Corn
Growers Association underscores the role Ohio farmers play in
in shaping the agricultural landscape across our country, and I
appreciate Mr. Bower coming to testify today and to the
Committee Members.
I can tell you, both of these gentlemen are highly
respected in our state, and farmers across our state and across
the country rely on them for their role in these organizations,
and thank you for allowing them to appear before the Committee
today.
Chairman Boozman. Thank you, John, and again, thank you for
taking the time to come over.
I am pleased to introduce Mr. Zippy Duvall. Mr. Duvall is a
third-generation farmer from Georgia, where he and his son
raise beef cattle, broiler chickens, and grow hay. A true
advocate for farmers and ranchers nationwide, Mr. Duvall has
led the American Farm Bureau Federation as president since
2016. Mr. Duvall has a personal understanding of how several
factors before this Committee may impact the future of American
agriculture, and I look forward to hearing his testimony.
Welcome back to the Committee, and you have been here several
times, and we really do appreciate your leadership.
Next, Senator Hoeven is going to introduce Mr. Perdue.
Senator Hoeven. Thank you, Mr. Chairman, and thanks to both
you and the Ranking Member for calling this hearing today. It
is my pleasure to introduce Matt Perdue, who is the president
of the Farmers Union in North Dakota. We have an incredibly
strong farmers union organization in North Dakota, more than
70,000 members, and Matt is the youngest person to ever be
elected president of that great group. We know both Farmers
Union, and, of course, because Zippy is here, Farm Bureau. Both
are just powerhouse organizations for our farmers and ranchers,
and so important, particularly at these times where our guys
are facing a hard go of it. Your advocacy is just incredibly
important.
Matt, in addition to leading North Dakota Farmers Union, is
a farmer himself and a lifelong farmer. Grew up on the farm and
now is farming with his family. They farm in Northwest North
Dakota, where I am from, Northwest North Dakota. We love that
part of our country and our state. On his farm, they raise
durum wheat, canola, lentils, soybeans. You know, he reflects
what we need to get more of is younger farmers into farming,
and so, that is why it is so important that you and the Ranking
Member are having this hearing today, because it is about
markets.
Our guys want markets here at home, around the world, and
anything and everything we can do to help them is critically
important. Again, that is why it is so important that our
commodity groups, certainly led by Farmers Union, Farm Bureau,
are so important because we have this network--this incredible
network of family businesses, family farms, and ranches. If we
take it for granted, we take it for granted at our peril, and
we need to be with them, and I know that is what this hearing
today is all about. Thank you.
Chairman Boozman. Next, Senator Klobuchar is going to
introduce our next witness, Mrs. Burns.
Senator Klobuchar. Thank you very much. I do not know if
Mrs. Burns is the youngest person ever to head up her
organization, but I do thank her for coming today. She is the
chief executive officer of the International Fresh Produce
Association. She serves the entire fresh produce and floral
supply chain, including farmers, consumers, processors, and
retailers. She has over 30 years of industry experience,
including her time as the Produce Marketing Association--at the
Produce Marketing Association and serving as a leader in the
grocery retail sector.
Thank you for being here, Cathy, and thank you for your
work in support of specialty crops, which has been so--a
growing part of our ag profile in our country, and really
appreciate it. Thanks.
Chairman Boozman. I do not know if she is the youngest, but
she is one of the most effective in twisting our arms.
[Laughter.]
Chairman Boozman. I would now like to introduce Mr. Nathan
Reed, a great Arkansan hailing from Marianna, Arkansas, located
in the heart of the Mississippi Delta region. Nathan and his
wife, Kristen, and their four wonderful children, grow cotton,
rice, corn, and soybeans. Nathan currently serves as the
chairman of the National Cotton Council. Back in Arkansas, he
serves as the executive director--executive officer with the
Arkansas Ag Council and serves on the Arkansas Plant Board. I
look forward to hearing his testimony as he represents farm
families across the cotton industry. Welcome back to the
Committee, Nathan.
Again, thank all of you all for being here. You can go
ahead and come up. Okay, so we are ready to roll. Mr. Duvall,
you are recognized for your opening statement.
STATEMENT OF MR. ZIPPY DUVALL, PRESIDENT, AMERICAN FARM BUREAU
FEDERATION, GREEN COUNTY, GEORGIA
Mr. Duvall. Thank you, Mr. Chairman, and Ranking Member
Klobuchar, and the Members of the Ag Senate Agriculture
Committee. I want to thank you all for the opportunity to
testify on this important topic. My name is Zippy Duvall, and I
am a third-generation farmer from Georgia. My family and I
raise beef cattle, poultry, and hay, and I am honored to serve
as president of American Farm Bureau Federation, representing
more than five million member families who grow every crop
produced in the United States. Our members are the economic
backbone of rural America, but they continue to face historical
headwinds in farm economy.
When adjusted for inflation, USDA projects that farm income
this year will be down nearly $50 billion below the levels of
just a few years ago. One of our young farmers from Oklahoma
pointed out to me recently that his prices have failed to the
lowest level in his lifetime, while input costs have continued
to increase faster than ever. The conflict in Iran is expected
to make cost of fuel and fertilizer soar even farther. Congress
and the President have delivered critical support, and we are
grateful for that support and investment in our risk management
tools, trade promotion, conservation and addressing animal
diseases, bridge payments provide a lifetime--lifeline to
farmers to help farmers make it to this planting season, but
farmers do not want to rely on government aid, and aid should
not be needed year in and year out. That is not a normal
volatility. It is structure imbalance, and that is why this
hearing is so important today.
We must strengthen domestic demand for American
agricultural products, and we must support increased production
of critical ag supplies and restore domestic processing. We
must ensure our safety nets are strong and expand fair access
to markets abroad. More than 20 percent of our total
agricultural products are exported in a typical year. When that
export engine slows, farm-level prices drop quickly. Export
markets must be strengthened through fair and enforceable trade
agreements. Global competitors have expanded their acreage,
they have improved their yields, and they are investing heavily
in their ports and rail system. That competitiveness is not
going to go away. We must be competitive in the export market,
but we also need to expand our domestic demand and processing
capacities to truly be resilient.
There are many ways to drive domestic demand. Biofuels
represents a clear example. Ethanol production now accounts for
about 40 percent of the total U.S. corn usage. Renewable diesel
and biodiesel markets continue to transform oilseed demand.
This shift has driven expansion in soybean crushing capacity,
creating jobs and strengthening our local communities.
Sustainable aviation fuel represents another opportunity.
Another aspect of domestic demand is federal purchasing.
Federal agencies purchase almost $7 billion of U.S.-grown food
in agricultural products last year.
Buy America policies are both patriotic and powerful, but
oversight and enforcement can be strengthened. For example, the
National School Lunch Program provides nearly five billion
meals annually, and they are supposed to be domestically
sourced, but the rules allow for significant share of foreign
products. Enabling schools and food banks to be sourced
directly from U.S. farmers is another demand booster,
especially in fruit and vegetable growers. Incentives can also
help. The Buy America Cotton Act of 2026 is a good example of
legislation that builds demand through a tax credit for
businesses using American-grown cotton. A key pillar of strong
farm economy is an adequate work farm workforce. The current
labor shortage is unacceptable and unnecessary. We need
modernized ag labor programs and improved guest worker
programs. Otherwise, farm production and food processing will
continue to move agricultural outside our borders.
American agriculture remains one of the most innovative and
productive sectors in the world. We must ensure that markets,
infrastructure, and policy evolves alongside that productivity.
I look forward to working with this Committee to ensure that
America's farmers and ranchers can continue to supply food,
fiber, and fuel to families across our great country and
beyond.
Thank you for the opportunity to testify for you today.
[The prepared statement of Mr. Duvall can be found on pages
42-62 in the appendix.]
Chairman Boozman. Thank you. Mr. Perdue.
STATEMENT OF MR. MATT PERDUE, PRESIDENT, NORTH DAKOTA FARMERS
UNION, RAY, NORTH DAKOTA
Mr. Perdue. Chairman Boozman, Ranking Member Klobuchar,
Members of the Committee, thank you for the opportunity to
testify today. My name is Matt Perdue. I farm with my family
near Ray, North Dakota, where we raise durum, spring wheat,
canola, lentils, and soybeans, and I am honored to serve as
president of North Dakota Farmers Union and on the board of
directors of National Farmers Union.
Family farmers are facing significant economic headwinds.
Our input costs are high, commodity prices are low, and our
markets are extremely volatile. Farmers and ranchers are also
shouldering record-high debt loads, higher than the 1980s,
further deepening the crisis for many. In the last year, trade
disputes and now the war in Iran have compounded these economic
challenges. Geopolitical tensions have created pressure on both
sides of the farm income equation, driving up input costs and
depressing commodity prices. Farmers Union has been critical of
the Administration's trade strategy, but we must also confront
the reality that U.S. agriculture is facing increased
competition in international markets. Strong domestic markets
are critical to the long-term profitability of family farms and
ranches, and we can grow those domestic opportunities by
bolstering renewable fuels markets, expanding local and
regional supply chains, and strengthening competition in ag
input markets and the markets that we sell into.
Renewable fuels play a vital role in farm income and rural
economies. A strong domestic biofuels industry provides
consistent homegrown demand for agricultural commodities,
offering greater price stability, and that stability is badly
needed right now. We appreciate the work of Senators Fischer
and Klobuchar and many others on this Committee to secure
permanent year-round E15. As you well know, farmers are
frustrated by the repeated delays in advancing permanent year-
round E15 through the legislative process. We need that demand
boost, and we need it now. It is time to get it done.
We are also encouraged by the Administration's proposed
increase in biomass-based diesel volumes under the renewable
fuels standard. We strongly support those increased volumes and
will continue to urge EPA to finalize its proposal and provide
certainty for farmers and renewable fuels producers, and long-
term, we look forward to working with this Committee to grow
biofuels markets. Further, we strongly support efforts to
advance higher blends of ethanol, including E30, we support
45Z, the Clean Fuel Production Credit and its timely
implementation, and we are excited to help grow demand through
sustainable aviation fuel.
While expanding renewable fuels markets will boost
commodity prices, we can also create more opportunities beyond
traditional commodity channels. Local and regional supply
chains help farmers and ranchers expand and build markets and
strengthen profit margins. Programs like the Local Food
Purchase Assistance and Local Food for Schools program
supported that development. While we were disappointed that
USDA terminated funding for those programs last year, we
appreciate the inclusion of both in the House farm bill. As
this Committee takes up the farm bill, we encourage you to
authorize LFPA and LFS and to build upon the House proposal by
providing both programs mandatory funding.
We also strongly support efforts to bolster local and
regional livestock processing. In recent years, a combination
of federal and state programs have meaningfully expanded market
opportunities for North Dakota ranchers. Those investments are
having a real impact for real families. For example, the Bruner
family from Drake, North Dakota has built Dakota Angus Beef, a
brand that now has statewide recognition. Through Dakota Angus
Beef, the Bruners are selling their own beef directly to
consumers and to restaurants, and capturing a larger share of
the consumer food dollar. Their story is a great example of how
targeted support can help hardworking producers create new
opportunities for themselves, their families, and their
neighbors.
Finally, we must recognize that most of the markets we buy
from and sell to are heavily consolidated. That consolidation
limits options for farmers and ranchers, and it compresses our
margins. We appreciate the Administration's recently announced
investigations into farm inputs in the major meat packers, but
investigations will not help farmers and ranchers unless they
are followed by real enforcement. We urge Congress and the
Administration to work together to provide meaningful antitrust
relief and remedies for farmers and ranchers.
Family farmers are experiencing real economic pain. We need
real solutions. We look forward to working with this Committee
to expand domestic opportunities, create new ones, and to
ensure that all our markets are fair and competitive. Thank you
for the opportunity to testify today. I look forward to
answering your questions.
[The prepared statement of Mr. Perdue can be found on pages
63-73 in the appendix.]
Chairman Boozman. Thank you very much. Mr. Reed.
STATEMENT OF MR. NATHAN REED, CHAIRMAN, NATIONAL COTTON
COUNCIL, MARIANNA, ARKANSAS
Mr. Reed. Good afternoon. I am Nathan Reed from Marianna,
Arkansas. I farm with my wife, Kristen, and our four children
in the Mississippi River Delta, where we raise cotton, rice,
corn, and soybeans. We are grateful for the work of this
Committee over the last year to mitigate the economic
conditions facing cotton producers. Congress, the USDA, and the
White House have stepped up to the plate by providing
additional support to production agriculture. However, the
financial situation of U.S. cotton growers continues to
deteriorate, with market prices still well below the cost of
production. This is on top of deep losses producers suffered in
2023, 2024, and 2025. We are encouraged by Chairman Boozman and
Senator Hoeven's efforts to provide additional economic
assistance for 2025 losses. We look forward to working with you
and the leadership in the House and Senate to achieve this
result.
Unfortunately for domestic producers, Brazil has surpassed
the U.S. as the leading global exporter of cotton and is
projected to produce almost 19 million bales, up from 6 million
bales a decade ago, and far surpassing current U.S. production
of 14 million bales. Over the last 20 years, cotton has seen no
consistent demand growth. To make matters worse, during the
same period, man-made fiber consumption has more than doubled,
with much of that being Chinese polyester priced at 42 cents
per pound. While ad hoc assistance and farm bill provisions
have helped substantially, the U.S. cotton industry cannot
survive without stronger demand.
We are grateful for the leadership of Senator Cindy Hyde-
Smith, who last year introduced the Buying American Cotton Act,
or BACA. In January, a House companion bill was introduced by
Representatives Greg Murphy and Terri Sewell. BACA has strong
bipartisan support that extends far beyond the Cotton Belt, as
evidenced by House co-sponsors from New York, New Jersey, Ohio,
and Maine. In addition, BACA has very broad industry support,
as highlighted in a letter signed by 80 entities, including
cotton organizations, textile mills, brands, and retailers from
all over the country. Under BACA, products sold containing--
products containing U.S. cotton sold in this country would
qualify for a transferable tax credit that scales with the
level of U.S. cotton content or domestic cotton processing.
Higher credit values apply to qualifying items produced
entirely in the United States or in countries with which we
have a free trade agreement.
U.S. consumers represent the world's largest retail market
for textile and apparel products, purchasing the equivalent of
40 million bales of fiber. Yet, we estimate that only 10
percent of that total, or 4 million bales, is U.S. cotton. The
other 90 percent of American consumer purchases are supporting
international cotton and synthetic fiber producers. BACA will
correct this imbalance by increasing demand for U.S. cotton,
thus positioning U.S. cotton to compete more effectively.
Ultimately, BACA will enhance cotton prices for American
producers, reducing cost and reliance on farm bill support
programs. It will encourage additional cotton production and
increase domestic economic activity. We estimate that each
dollar at the farm gate generates $20 throughout the broader
economy. This legislation is critical not only for cotton
producers, but also the rural communities that depend on
healthy and profitable family farming operations.
In closing, I commend this Committee for conducting this
hearing on building domestic demand for our agricultural
products. Most importantly, we urge Congress to pass the Buying
American Cotton Act this year. Thank you for the opportunity to
testify, and I am pleased to respond to any questions.
[The prepared statement of Mr. Reed can be found on pages
74-78 in the appendix.]
Chairman Boozman. Thank you. Mr. Bower.
STATEMENT OF MR. JED BOWER, PRESIDENT, NATIONAL CORN GROWERS
ASSOCIATION, WASHINGTON COURT HOUSE, OHIO
Mr. Bower. Thank you. Chairman Boozman, Ranking Member
Klobuchar, Members of the Senate Committee on Agriculture,
Nutrition, and Forestry, thank you for your invitation to
testify today. Again, my name is Jed Bower. I am a fifth-
generation farmer from Washington Courthouse, Ohio. I grow corn
and soybeans with my wife, Emily, and my children, Ethan and
Emma. I currently serve as the president for National Corn
Growers Association. Founded in 1957, NCGA represents more than
36,000 dues-paying corn growers in 48 states, and the interests
of more than 500,000 farmers who contribute through their corn
checkoff programs in their states. It is an honor to testify
before the Committee today. This hearing on domestic demand
expansion could not come at a more critical time for our
industry.
In 2026, we celebrate America's 250th year, and in those
250 years, corn has been foundational to the American success
story. Unfortunately, the legacy that generations of corn
growers have built is in jeopardy. Today, corn farmers are
facing many challenges, and the ability of the next generation
to take over the farm is in question for too many families
right now, including my own. With the next 250 years in mind,
NCGA is doubling down on a demand agenda to diversify near- and
long-term market opportunities for corn and corn products.
While my written testimony covers a broader range of topics
that are important to growers' profitability, such as trade and
risk management, because today's hearing is focused on domestic
demand, I will concentrate on two key domestic demand
priorities: expanding markets for ethanol and scaling the
utilization of bio-based products.
Since its inception, the ethanol industry has strengthened
rural economies, created jobs, and driven farmer profitability.
Today, over a third of each year's crop is turned into fuel. We
believe there is room for growth in on-road, marine, and
aviation fuels. First, year-round access to E15 is critical.
Farmers have waited far too long for this simple deregulatory
bill to be passed. Aside from the economic boost it would
provide to farmers, year-round E15 would lead to significant
savings for American consumers, strengthen U.S. energy
dominance at a time when geopolitics are complicating markets
and supply chains, and I want to thank Chairman Boozman and
Ranking Member Klobuchar for their public support of year-round
E15.
Second, the renewable fuel standard remains the cornerstone
of biofuels policy. Strong, predictable renewable volume
obligations are essential. They give farmers, ethanol
producers, and fuel retailers the confidence to invest and
grow. We appreciate the EPA's current approach and look forward
to seeing the finalized 2026-2027 RVOs as soon as possible.
Beyond maintaining current markets, we must look toward the
future and new opportunities for biofuels to help decarbonize
the transportation sector. One of the most promising is
sustainable aviation fuel. Corn-based ethanol can play a major
role as a feedstock for producing SAF. The 45Z tax credit,
which Congress wisely extended in the One Big Beautiful Bill
Act, is poised to help stimulate the expansion in the rising
industry.
Corn growers are also actively exploring ethanol and marine
fuel. This has potential to be a four billion gallon market
within the next five years. This market symbolizes an
unprecedented opportunity for American corn farmers. Bio-based
products represent an important growing economic opportunity
for farmers when corn and ethanol are used as feedstocks. They
also present a more environmentally sustainable alternative for
ingredients in many products that Americans use in their
everyday lives, such as fibers and polymers. Capturing just 10
percent of the global plastics market with bio-based
alternatives could generate a demand for an additional 15
billion bushels of corn.
NCGA is working with industry partners to develop
legislation to establish a federal tax incentive that would
encourage the conversion of U.S.-grown agricultural feedstocks
into renewable chemicals and materials. This investment and
production credit would diversify demand for agricultural
products, strengthen domestic biomanufacturing, and stimulate
rural economies. We encourage Congress to invest in these
tools.
In closing, I thank the Chairman, the Ranking Member, and
the Members of the Committee once again for today's focus on
expanding domestic demand markets for U.S. agricultural
products. This objective is imperative to our future. I implore
all Members of Congress to work with us to advance real
solutions like the ones that were discussed here today. Please
fight with us to secure the next 250 years of farming.
[The prepared statement of Mr. Bower can be found on pages
79-85 in the appendix.]
Chairman Boozman. Thank you very much. Mrs. Burns.
STATEMENT OF MRS. CATHY BURNS, CEO, INTERNATIONAL FRESH PRODUCE
ASSOCIATION, WASHINGTON, DC
Mrs. Burns. Chairman Boozman, Ranking Member Klobuchar--
thank you for the introduction--and Members of the Committee,
thank you for the opportunity to testify on behalf of the
International Fresh Produce Association. I am proud to
represent the thousands of U.S. fruit and vegetable producers
who feed American families, strengthen rural communities,
support more than two million jobs, and contribute more than
$335 billion to the national economy.
IFPA is guided by a simple yet powerful goal: to grow a
healthier world by increasing Americans access to and
consumption of fresh fruits and vegetables grown here in the
United States. The science is clear. Eating more fruits and
vegetables is one of the most effective ways to improve health,
prevent chronic disease, and reduce health care costs. This is
reflected in the Dietary Guidelines for Americans and aligns
with the priorities of the Make America Healthy Again movement,
yet 90 percent--90 percent--of Americans still fall short of
recommended intake levels.
Increasing consumption is not just a nutrition issue; it is
an economic issue and an economic opportunity. When we
strengthen produce consumption, we strengthen domestic markets
for American farmers. To meet this opportunity, we need
systematic solutions--systemic solutions to make it easier for
everyone to choose fruits and vegetables, everything from
strengthening federal nutrition programs to ensuring the
industry has access to federal investment to enhance our
competitiveness, our resiliency, and efficiency.
The good news is that Congress has powerful tools at its
disposal, particularly through federal nutrition programs. We
need Congress to continue to fully fund the WIC Fruit and
Vegetable Benefit and expand online redemption, strengthen
produce incentives in SNAP, ensure school meals include a wide
variety of fresh produce, expand the Fresh Fruit and Vegetable
Program to reach more elementary schools, and modernize USDA in
procurement so it reflects nutritional value, not just the
lowest cost, and includes more U.S.-grown produce options.
Embedding produce prescription as a standard benefit across the
federal health programs will improve the health of nearly 150
million Americans. Ensuring HSA and FSAs can be used to
purchase fruits and vegetables is another commonsense step.
While these actions will help drive consumption, Congress
must also support a competitive and resilient supply chain.
From the moment it is harvested, fresh produce must move fast,
and growers today face rising input costs, labor shortages,
regulatory pressure, and increasing natural disasters. Over the
past two decades, the United States has lost more than 230,000
farms, a stark reminder of the economic pressures facing
producers. Policies that support farm profitability and
encourage new investment in specialty crops are essential.
Strategic investments in research, technical assistance,
risk management, and conservation programs help growers remain
competitive across all production systems, conventional,
organic, and regenerative. A coordinated national approach to
produce packaging is also critical, one that avoids conflicting
state rules and balances sustainability goals with food safety,
shelf life, and affordability. Finally, consumer confidence
depends on a strong modern food safety system. This includes
continued investment in FDA's Human Foods Program, including
traceability, implementation and reliable funding for and
consistency across state food safety programs. These are all
essential to protect consumers and support growers.
Despite the challenges they face, America's fruit and
vegetable producers are ready to meet the growing demand, but
we cannot do it alone. We need your leadership. Congress has a
vital role to play in ensuring every American has access to
fresh fruits and vegetables, while creating economic
opportunity for farmers across this country. On behalf of the
International Fresh Produce Association and U.S. Growers we
represent, thank you for your leadership and for your
partnership, and I look forward to your questions.
[The prepared statement of Mrs. Burns can be found on pages
86-90 in the appendix.]
Chairman Boozman. Thank you. Mr. Metzger.
STATEMENT OF MR. SCOTT METZGER, PRESIDENT, AMERICAN SOYBEAN
ASSOCIATION, WILLIAMSPORT, OHIO
Mr. Metzger. Thank you, Chairman Boozman, and Ranking
Member Klobuchar, and Members of the Senate Agriculture
Committee. It is an honor to join you here today to testify on
behalf of the American Soybean Association regarding domestic
market expansion opportunity for U.S. Ag. My name is Scott
Metzger, and I am a sixth-generation grain farmer from Ohio. I
also serve as ASA president, which represents U.S. soybean
farmers across 30 soy-producing states.
The U.S. soybean industry has a profound positive impact on
the economy, with the entire soy value chain generating an
economic impact of $124 billion in 2025. However, the trade
uncertainty plaguing our industry this marketing year
highlights how important strong domestic markets are for U.S.
soy. While the soybean industry continues to diversify export
markets, embracing federal policies that can promote and expand
domestic markets is more critical than ever. U.S. soybean
farmers play an essential role in feeding and fueling the world
while also supporting over 1,000 soy bioproducts, from biofuels
to food uses to new opportunities for soybean meal and the
development of soy-based bioproducts.
ASA sees immense domestic market potential for our crop.
The domestic biomass-based diesel, or BBD, industry was
developed with the support of the soybean farmers in the 1990s.
Biodiesel, renewable diesel, and sustainable aviation fuel
support American energy dominance while using U.S.-grown soy
oil feedstocks. Through federal policy, the U.S. consumed over
five billion gallons of BBD in 2024, which created over $42
billion in economic impact. Now the industry is on the brink of
additional expansion. While the BBD industry increased by 65
percent from 2021 through 2024, the percentage of soy oil used
in BBD production decreased as imports of used cooking oil and
tallow surged from China, Brazil, other overseas destinations.
ASA thanks Congress for its improvements to the 45Z tax
credit. The changes eliminated the penalty on ag-based
biofuels, effectively doubling the credit value for soy-based
BBD. Further, Congress prohibited fuel and feedstocks imported
from overseas from benefiting from the tax credit. Now,
Treasury must finalize the guidance that the soy biofuel value
chain can actually utilize the tax credit. The EPA renewable
volumes obligation for 2026 and 2027 must also be finalized
swiftly to promote biofuel industry expansion. The June 2025
draft EPA rule was the most positive proposal ASA has ever
seen. Finalization of the 45Z tax credit and RVO rule will
provide increased certainty for domestic BBD markets and drive
investments to increase production, in turn, increasing
consumption of U.S. soy.
Soy is also a critical component in the U.S. food systems.
In addition to food products, soy oil serves as an affordable,
heart-healthy ingredient for home cooking and packaged foods.
The Federal Government must ensure that the regulations and
policies continue to follow sound science. At the state level,
food labeling proposals continue to emerge. ASA urges Congress
to ensure food affordability remains top of mind, especially as
labeling patchworks will increase consumer costs by 12 percent
nationwide.
As soybean processing increases to meet domestic oil
demand, soy meal offers additional market opportunities beyond
animal and aquaculture feed. Soy meal is used as a base
ingredient in SoyFoam, a PFAS-free firefighting foam.
Firefighting foams are one of the most common, continuous PFAS
polluters in the country, and SoyFoam offers a biodegradable
American-grown alternative. ASA urges Congress to help expedite
federal approvals of this product. Widespread use of SoyFoam
will ensure firefighters, like my son, Dalton, will no longer
have to worry about regular PFAS exposure while on the job.
Soy oil-based products also offer immense domestic market
growth potential, from tires, to infrastructure products, to
golf balls, and artificial turf. The scalable potential of
these products is limitless. Like biodiesel, most soy
bioproducts can be traced back to the investments made by the
soy checkoff. As a proud investor in our checkoff, support is
critical to ensure research and development into new domestic
market opportunities can continue. As we work to maintain and
grow domestic markets for U.S. soy, Congress must continue to
focus on biofuels, edible oil meal bioproducts. I also urge for
our soy checkoff, which is a critical tool to U.S. soybean
farmers to use to build markets today.
Thank you for this opportunity. ASA appreciates the
Committee's focus on this critical issue to improve the farm
economy, and I look forward to your questions.
[The prepared statement of Mr. Metzger can be found on
pages 91-104 in the appendix.]
Chairman Boozman. Thank you very much. Mr. Reed, there has
been a dramatic decline in cotton processing capacity with the
number of cotton gins, once over 2,000 in 1980, now standing
just under 450, so that 85 percent of U.S. cotton production a
day is exported. Can you talk further about the underlying
reasons for the trend, you know, with the processing ability
and opportunities? Is it out of reason to think that we could
actually have textile plants again in the United States? I
mean, it seems like every--you know, we all know communities
that there was, you know, some sort of a gin factory, or this
or that there, that just simply all disappeared.
Mr. Reed. Well, on the cotton gin side, there has been a
reduction in cotton acres, which, unfortunately, has closed
many gins. There has been some consolidation of gins and some
larger gins built, but it has followed the trend of reduced
cotton acres. As far as textile mills, they have had a very
tough time. It started when China entered the World Trade
Organization. We started losing textile mills, and then more
recently, the mass importation of cheap synthetic chemical
fibers from other countries flooding our market, our textile
market in America.
Fortunately, we got the de minimis provision reversed and
that has helped some, but we feel that the way to reverse this
trend is through BACA, the whole cotton industry, textile,
providing more consumption of American cotton will absolutely
reverse the trend of the loss of cotton processing facilities
because once they are gone, it is very difficult to get that
back.
Chairman Boozman. Very good. Mr. Duvall, in your testimony
you talked about the importance of reliable labor. I was glad
to see the Department of Labor issue an interim final rule on
the effective adverse wage rate and support efforts to codify
the rule. What else can Congress or the Administration be doing
to modernize ag labor programs?
Mr. Duvall. Well, we need to continue to work together to
bring a farm labor bill to surface and get it on the
President's desk so that we can have a reliable source of labor
for agriculture. The programs that we work within now is only
seasonable. There is year-round workers needed in much of
agriculture today all across America, and we need to continue
to work on that. We are very appreciative of the work that the
Administration has done, the Department of Labor has done to
try to help some of the regulations, but if you look across
America, when I go across America and talk to farmers, it is
the number one issue they are facing. That is a long-term
issue.
Of course, the economy right now is the biggest issue that
faces them, but labor is the biggest limiting factor that we
have in agriculture today. It prevents having young people come
back to our industry because they have to expand their family
farms, and they need additional labor to do that, and we are
not able to do that. Then it is over-regulated and cost too
much. Larger farms have a tendency to be able to adapt to the
program because larger farms may have--possibly could have H.R.
department and attorneys working for them, while small- or
medium-sized farms, it is almost impossible for them to adapt
to the systems that we have. We need to look at this, and it
can be fixed. It is unnecessary that we are short of labor.
There are people in this world that want to do our work, and we
need to find a way to let them come here and help us do it.
Chairman Boozman. Mrs. Burns, you mentioned that one of the
answers to increasing specialty crops is the various USDA
programs that are out there. We have problems with them in the
sense that sometimes the bureaucracy, sometimes this or that.
Do you have any specific ways that we could make those programs
better, easier for farmers to use?
Mrs. Burns. Yes, I mean, I think anytime you can make the
process simpler and easier for our growers, it is definitely a
win. Some of these programs that are in place have an
opportunity to scale, so the construct already exists.
Obviously, some of them need funding, but I will tell you,
fully funding the WIC Fruit and Vegetable Benefit is our crown
jewel. It really does make a difference in those young
families. If you think about school meals, our schools are the
largest restaurant in the country, and so we need to ensure
that we are providing the variety of fruits and vegetables for
our kids because we need to start those habits at a very young
age. Again, streamlining processes, always, but some of the
recommendations that we put forward do not cost a lot of other
bureaucracy. It is just a matter of opening up the policies
like ensuring HSA and FSAs are used to purchase fruits and
vegetables.
Chairman Boozman. That is good. I visited with the school
lunch professionals today and they were mimicking exactly the
same things you said, so it was great. Senator Klobuchar.
Senator Klobuchar. Thank you, Mr. Chair. I have long led
bipartisan efforts along with so many of my colleagues to make
E15 available year-round. I appreciate so many of you bringing
it up. It is an obvious solution to what we are facing now,
which is some higher gas prices which we were not facing a few
months ago. It seems to me like the moment to seize, to show
that we have a diversified fuel supply, and it is already,
what, 10 percent of our fuel. I just think this would be the
smartest thing to at least send a message to those soybean and
corn farmers that this is a market that we want to fill, and
this is the time to do it.
A new economic analysis from the University of Missouri
shows that E15 is currently saving drivers about 25 cents per
gallon. Mr. Bower, with the cost of production being so far
above the current price of corn, what would the availability of
year-round E15 and higher blends of ethanol mean for corn
growers across the country?
Mr. Bower. Well, Ranking Member Klobuchar, thank you for
the question. You know, absolutely tremendous. As we look at
potentially our 4th year of losses in a row, and trying to--at
least in my personal farm, trying to figure out how I am going
to pay for my inputs that are so drastically out of line. You
know, as we look at what E15 could potentially do for growers,
for every one percent we increase that blend wall. As we go
from 10, to 11, to 12, and on up, for every one percent, that
is 490 million bushels of grind, you know. For farmers it
varies depending on the market, but we are looking at maybe 35
cents a bushel. Some numbers are lower than that, but any
relief right now is tremendous for growers.
Senator Klobuchar. I do not even--I think of it as fuel we
need right now. If we put you in such perilous position, if the
government policies do that with tariffs and the like, that you
are not able to keep producing, then we are going to be really
screwed because you do not--those are not your words--because
with the way gas prices are going right now, I think it is a
real problem. This is a great moment to do that. Mr. Metzger,
how does a strong renewable fuel standard provide stability for
soybean market? Be quick in the answer because I have a few
more.
Mr. Metzger. Thank you, Ranking Member Klobuchar. Biofuel
production is one of our largest domestic products markets for
U.S. soy, with significant growth potential through higher
annual blending targets and safeguards against the flood of
imported feedstocks. A strong RFS will help the American
soybean farmer. You know, we are in kind of the same role here
as corn. With it, we are, you know, looking to have more
access--become more economically viable with our products.
Senator Klobuchar. Thanks. Mrs. Burns, of the $12 billion
in economic assistance announced by USDA, as you know, only
certain specialty crops will be available for a billion in
assistance. Do you believe that the economic assistance is
adequate, and are you in favor of advancing a farm bill?
Mrs. Burns. Absolutely not adequate. We need at least $5
billion. In fact, GT said last week that we need $10 billion.
We need--we will take $5 billion, $10 billion. We are a third
of the crop sales, yet we are not getting a third of the
economic assistance, so yes.
Senator Klobuchar. Thank you. Mr. Perdue, how can farm bill
conservation programs and the conservation programs created
using CCC funding help create new markets?
Mr. Perdue. Senator Klobuchar, I appreciate the question.
You know, I think the reality is that consumers are often
willing to reward farmers for adopting certain practices,
producing a commodity in a specific way. Farm bill conservation
programs are, you know, a key opportunity, a key support that
we can provide producers to transition that production system,
whether it is an incremental transition or a wholesale
transition. We get caught up on words a lot: ``sustainable,''
``regenerative,'' ``climate-smart,'' ``carbon neutral.'' Does
not really matter to me. It matters that a consumer puts value
in it, and farm bill conservation programs help us meet that.
Senator Klobuchar. Very good. I was just at our National
Pheasants Forever Convention in Minnesota and there was of
course a lot of interest in this for reasons outside of even
farmers.
Last, Mr. Duvall, could you talk about investments we have
talked about--year-round E15, and aviation fuel, which we have
all these opportunities to move into, and conservation, and
fruits and vegetables--but could you talk about how investments
in ag research directly benefit farmers on the ground,
especially right now when you are seeing the ability of
technology to help us to get to that next level?
Mr. Duvall. Number one, that is why it is so important for
us to get a new farm bill, modernized farm bill passed. All the
research that goes into agriculture helps us stay on the
cutting edge. We see other countries where their agricultural
communities are growing, and they are adapting to the things
that we have adapted to many years ago, and that research keeps
us on the cutting edge and gives the consumer out there what
they really want. It is vitally important for us to have
additional monies for research. It helps us do the things that
the people of this country want us to do, from conserving our
natural resources to creating new products and new crop
protection tools that we can use in the future.
Senator Klobuchar. Thank you.
Chairman Boozman. Senator Hoeven.
Senator Hoeven. Thank you, Mr. Chair. In the One Big
Beautiful Bill, we included updates to ARC/PLC and also to crop
insurance--very important--and our Chairman led that effort,
and big-time effort, that is going to help our farmers and
ranchers. It really kicks in in October because that is the end
of the marketing year, so we are still working to get our guys
from where we are now to October range. Senator Boozman and I
have introduced a bill that would provide additional disaster
assistance, about $15 billion. If possible, we would also like
to include E15 in there, year-round as well. Starting with you,
Mr. Duvall, what is your thoughts?
Mr. Duvall. Well, first off, I want to thank you, and the
Chairman, and the whole Committee of what they are doing to
push that forward. We do need that additional money. The monies
that has come across now has got our farmers to planting
season, but there is not enough there to bridge us over until
those new Title I programs come into effect. It is vitally
important that we not only get a new farm bill, modernized farm
bill, and finish it out, but it is also vitally important that
we have more bridge payments and a real focus on specialty
crops, too. We have to have that to get our farmers and
ranchers through.
Senator Hoeven. Mr. Perdue, same question.
Mr. Perdue. Senator Hoeven, I appreciate your work on this
issue, and absolutely, it is going to be critical in the months
ahead that we provide additional financial support. There is
not enough money out there in farm country right now, that is a
challenge. One of the things, you know, in North Dakota we tend
to have higher basis or a wider basis than other parts of the
country, something that was not reflected in the Farmer Bridge
Assistance. Essentially, that means that we get underpaid
compared to the losses that our neighbors in other states'
experience, and I think that is an important issue as we move
forward.
Senator Hoeven. Mrs. Burns, specialty crops are an
important part of the legislation we put forward. What is your
feeling? Same question.
Mrs. Burns. Yes. I appreciate, Senator, you calling this
out. As Zippy mentioned, this is a very, very important topic
for our growers. It needs to be addressed through the farm bill
as well, and we need--as you know, specialty crops do not
really have a crop insurance program that is affordable or
effective. The Specialty Crop Farm Bill Alliance put together a
recommendation to do just that, and we are proposing
significant reforms to the current programs. We have high value
products that have a high impact on Americans health. We need
this.
Senator Hoeven. Right. We very much want to thank Secretary
Rollins for the Farm Bridge Assistance. That has really been
important and much appreciated, but also, you know, we need to
finish that bridge assistance, which is what we are trying to
do here to get to the provisions that we did include in ARC/PLC
and crop insurance.
The other question, and again, the focus here is how we
increase domestic markets. You know, both the Chairman, and I,
and others have talked on a continuous basis to USTR. We have
got--you know, we not only have international agreements to
export, but we have got to get the sales--the actual hard sales
as fast as we can, and I know they are very much focused on
that. I guess the issue today is what more we can do
domestically? In our state, we have made a huge push on value-
added ag. I guess I will come back to you, Mr. Perdue. Are
there some other things you think we can and should do in that
realm?
Mr. Perdue. Senator Hoeven, I think--you know, I think one
of the biggest things to point out with the North Dakota story
is we have made big strides on ethanol, we have made big
strides on soybean crush, but we also have pea flour
processing, and craft molting, and a lot of diversity like
wheat flour milling----
Senator Hoeven. Awesome.
Mr. Perdue [continuing]. that is driving a lot of
opportunities for producers. Now, we are still in tough
economic times. It has not totally changed the tide, but the
more we can create diverse opportunities for producers, I think
the better off everybody is. I think it bolsters our resilience
on the farm in North Dakota and across the country.
Senator Hoeven. Yes, and to foot stomp that we now grow 40
different major crops and a lot of it is because we do have the
ability to do processing. Mr. Perdue, what can we do on the
input side on the fertilizer and those kinds of things to
help--those input costs have gone up so much. What are the top-
of-mind things we can do there? Yes, Mr. Duvall. I am sorry.
Mr. Duvall. Thank you, sir. Well, one thing we need to look
at the tariffs that are being put on and make sure that we
exempt all inputs that come in from out of country and crop
protection tools that we utilize. That would help drastically
to make sure that all that and retain those exemptions for
them. Of course, we need to look for ways to increase the
production of those ag supplies that we need here in this
country, and I know that would take a big investment. I know it
can take a long time. If you look at our dependence on the rest
of the world for these inputs, it really is important for us to
do that because we surely do not want to be taken to of our
knees when it comes to our food supply. It is a national
security issue.
Senator Hoeven. I am really glad--I am really glad you
ended there because I think working both with USDA and
Department of Energy, we can do more there to, you know, use
the energy we produce to provide our inputs. That is a double
win: security on energy and security on food, so I really think
that is important. Thank you. Thank you, Mr. Chair.
Chairman Boozman. Senator Smith.
Senator Smith. Well, thank you, Mr. Chair and Ranking
Member. I really appreciate this hearing and hearing the
testimony of all of you. As we think about what it is going to
take to boost domestic demand for American-grown food, and
fuel, and fiber, I want to just first say thank you all so much
for your strong support for biofuels, year-round E15, and the
opportunities around sustainable aviation fuel and marine
fuels, and it is really exciting to think about what we can do
with bio-based products. I know there are Minnesota companies
that are working on this, and there is a huge opportunity
there.
I am struck by how our innovation and value-add has always
been our competitive advantage in this country, and that has
been fueled by a big public-private partnership. You have got
private industry, you have got academic institutions, you have
got the Federal Government, you know, land grants, extension,
all doing the kind of research that it takes. I just hope,
colleagues, that as we think about the role of the Federal
Government, as we think about a farm bill, that we are paying
attention to the support that we need to provide to research
because I think it is just crucially important.
I also just want to put a note on the impact of labor
shortages that quite a few of you have been talking about and
what that means for farm country. I cannot let this moment pass
without observing that in my home State of Minnesota, the
Administration's immigration policies has had a devastating
impact on farm labor and food processing labor. As farmers, as
we think about getting ready to go into the field and the work
that we have ahead of us this spring, there are a lot of people
that are just not there anymore, not because they were here
illegally, but because it is too risky for them, even with
their legal status, to be here in Minnesota to do the work. I
just think we all need to think really hard about what impact
these immigration policies are having on our domestic food
production.
I want to go to something, and Mr. Perdue, that you were
talking about that I think is really interesting and very
relevant to this conversation. We have got rising input costs,
we have got the impacts of tariffs, the impact of the war, the
Iran war, on pushing these costs even higher. It is no secret,
right, that one of the biggest factors that we have here is the
lack of options that farmers face because of corporate
consolidation.
This is an issue both on the supply side, you know, like,
where are you going to get your inputs, what companies control
those inputs, and it is also a big issue on the demand side if
you are producing beef, or corn, or pork, the few numbers of,
you know, who you can sell to. Minnesota farmers will often say
to me, basically, ``I feel more and more like I am just a
contractor to a big company, that my business is not even my
own anymore.'' This is an issue that many folks on both sides
of the aisle have worked on in this Committee. Could you just
speak a little bit more to this, and what impact do you see
this consolidation has on the overall competitiveness as we
want to build bigger domestic markets for American-grown food
in this country?
Mr. Perdue. Senator Smith, appreciate the question. When
you look at the reality of the markets, again, that we buy from
and sell to, most of them are controlled by--three or four
companies control 80, 85 percent of those markets. One of the
things that I consistently hear from neighbors, friends, fellow
farmers, and ranchers across the State of North Dakota is input
costs are just through the roof.
Senator Smith. Right.
Mr. Perdue. You know, we need to figure out some way to
provide relief. You know, now we have additional geopolitical
tensions, right, the Strait of Hormuz and some of the
challenges there, driving another increase in already high
fertilizer costs. That fertilizer cost on an acre of wheat is
about 40 percent of your production cost, and that is going up
30 percent now. I mean, that is--you cannot make it work. You
cannot make it pencil out. We have to look at market structures
and the ways in which they create challenges for market
participants.
Senator Smith. Right. There are--I would just add, I mean,
there are a lot of good ideas on, again, as I said, on both
sides of the aisle. I have legislation with many of my
colleagues to get at this consolidation issue and the direct
impact it is having on the ability of producers to make a
profit. You know, you said there is just not enough money in
farm country, and I would argue that there is a lot of money in
farm country. It is just that it is going to fewer and fewer
institutions and organizations, and that is the problem that we
have to get after. Thank you, Mr. Chair.
Chairman Boozman. Thank you. Senator Ernst.
Senator Ernst. Thank you, Chair Boozman, and Ranking Member
Klobuchar, and thanks for all of our witnesses for being here
as well.
I have been traveling across Iowa, and I meet with farmers
all the time, and I hear one very clear message, and many of
you have stated it already: markets, not aid, okay? I hear it
all the time. Since coming to Congress in 2014, I have been
fighting to grow our domestic markets and increase consumption
of American-grown commodities. Today, farmers in Iowa, whether
you are traveling near my family farm in Southwest Iowa, all
the way over to the other side of the state in Eastern Iowa and
across the country, because I am hearing it from you, all of
these farmers are being squeezed by the high input costs and
low commodity prices.
You know, Congress has a real opportunity right now to
respond by expanding our domestic markets, putting more money
into the pockets of our producers and rural communities, and a
new five-year farm bill would be an exceptional place to start.
I do applaud Chairman Thompson for moving a bipartisan package
in the House last week, and I am hopeful that we can make the
same progress here in the Senate very soon, but the farm bill
is not the only avenue to do this. We should be looking at
every opportunity to increase demand here at home.
We are going to stay on some of the themes you have heard
already. The recent spike in oil prices following activity in
the Middle East really reminds us how vital energy security is.
Energy security is national security, food security is national
security, and how higher blends of ethanol can help keep gas
prices affordable here at home, so producers and consumers
alike deserve long-term stability. Mr. Bower, how does E15
strengthen our Nation's fuel supply and support strong grain
prices for farmers?
Mr. Bower. Well, thank you, Senator. You know, to reiterate
on what you just said, you know, the conflict going on right
now, this is a prime example and a prime time to bring that
strength in domestic production up, so we are less reliant on
all the foreign countries. It is so much better. We grow the
product here, we can produce it here, we can burn it here. It
is a perfect opportunity for the American farmer and the
American people, and I think we are in a prime position to move
that forward. We are so close. We have been close many times,
and it is so relieving to see so much support in this room for
that.
Tremendous for us as growers, too, I mean, at a time when
input prices are just completely out of sight, and we are
worried, losing sleep every day on how we can possibly raise
another crop next year, and we need this market boost. As we
try to market last year's crop and try to figure out how to pay
for the inputs this year. Prime time for this to happen, and we
need the support for the consumers. It has been mentioned, you
know, if we can lower the price 25 cents a gallon, I mean,
everybody in America gets a break on this, and it is--I am just
so thrilled to hear all of you talk positively about it.
Senator Ernst. Yes. Thank you. Mr. Duvall, do you have any
thoughts there as well?
Mr. Duvall. Yes, ma'am. It is vitally important. E15 is a
no brainer. It is a win-win-win. It is a win for consumers, win
for the farmer, and it is a win for you to make sure that you
can do that for the consumer and for the farmer at the same
time, so, and there is no better time to do that, especially
with the threatening of some of the fuel and oil going up
because of the war.
Senator Ernst. Yes, absolutely. Thank you so much. I will
also add we need to make sure that the infrastructure
requirements do not stand in the way of offering E15 to those
who want that cheaper fuel source. I am leading a bill, it is
Ethanol for America Act, to deem existing fuel equipment as
compatible with ethanol blends up to 15 percent. It is a really
simple fix, and it would avoid costly infrastructure upgrades
and build on the $4 billion to $6 billion dollars in savings
from securing permanent year-round E15. President Trump has
already asked Congress to deliver a bill to his desk, and it is
really well beyond time to act. I would love to talk a little
bit more about 45Z as well.
We have got the clean fuel production credit hanging out
there. I would like to see more work done on cover crops and
other initiatives that our farmers have as well. I think that
has been lacking. I will be sending a letter soon reiterating
this point, but Treasury, and the Department of Energy, and the
Department of Ag, they really have to work together to ensure
that the final rule that they put together truly does put our
farmers first. Thank you all for being here, and with that, Mr.
Chair, I yield back.
Chairman Boozman. Thank you. Senator Slotkin.
Senator Slotkin. Thank you, Chairman, and I want to welcome
you all here and associate myself actually, with a lot of
things that Senator Ernst just said. You guys have been going
through a lot. We owe you a farm bill. That is our job, and we
have always had a great tradition here. My former--the woman I
replaced, Senator Stabenow, that was a big deal to her, and so
it is a big deal to Michigan, and I want to also put down, it
seems like very bipartisan E15 year-round. Can we just do it? I
thought we were getting close. I thought there was a moment.
Let us just do it. It is so good and good for the consumers,
good for our farmers. It is a good deal.
I think the thing I want to talk about, you know, we are
talking about expanding American markets, which is very
important, but just review the bidding on sort of where we are
here. You know, the--I am going to do this as neutrally as I
can, and I want you all to correct me because I am not trying
to be political. I am just trying to review the facts for the
farmers, particularly specialty crop farmers. I come from
Michigan, and we are the most diverse crop state in the country
with access to water.
The President in his first term, put on a bunch of tariffs,
our farmers started feeling it immediately, and then he spent
$23 billion in bailouts. I have heard over and over again, just
like Senator Ernst, we do not want bailouts. We want access.
You know, we do not want this money to be paid when we are
suffering. We want access to markets. Second term, comes in,
and the Secretary of Agriculture was here, and I said, like,
can we not rinse and repeat from the first time, where we are
having to again bail out farmers? We have put a bunch of
different tariffs on. It is hard to know on a given day, but
right now, so far, the spending package--the bailout package
for farmers is $12 billion, and we are just 14 months in.
It feels like taxpayers are kind of in this do-loop where a
bunch of tariffs are put on. We all want our farmers to
succeed, and in order to keep them afloat, we have to bail them
out with taxpayer dollars, and it seems, in my mind, at least,
unnecessary. In that package, and Mrs. Burns, this is for you,
we have had a real lack of clarity on what this aid means for
specialty crop farmers. One billion out of the $12 was put
aside for us. You just said in your opening statement it needs
to be way more than that, but we do not even know, like, how
they are going to be calculating that aid, how to get at that
aid, when it is going to come out? Can you hum a few bars on
what this is doing to our specialty crop farmers, because I am
hearing it constantly?
Mrs. Burns. Yes, it is not doing enough, and if I think
about that $1 billion, we also have to share with others, so it
is not just for specialty crop. As I mentioned earlier, our
expectation is that we get no less than $5 billion. We would
love to have $10 billion, but at the end of the day, we also
need and want open markets. I think the critical thing is that
it is the mechanism and the construct of how that money gets
distributed. That is where we need a process and some real
support. It should not be on acreage, and it should not be on
product-by-product commodity. It should be on crop sales,
revenues, receipts, however you want to say it, and that is
critical. I mean, our growers are hurting just as much as my
colleagues here, and we do not have the mechanism and construct
to get that money out to our growers, and that could be the
biggest help that could happen right now for our growers.
Senator Slotkin. Thank you for that.
Mrs. Burns. You are welcome.
Senator Slotkin. Mr. Duvall, I wanted to get your sense.
You know, we were talking--the senator was talking about Iran,
and sort of right before, farmers are starting to think about
planting. You know, more shocks to the price of fuel, more
shocks, importantly, to the price of fertilizer. I do not think
the average American understands the role of, like, the Strait
of Hormuz way in the Persian Gulf to their farmer that lives
down the corner. Can you walk through the official Farm Bureau
position on this? You guys have been writing letters. Can you
walk us through where you are on this?
Mr. Duvall. Yes, ma'am, and thank you for the question, and
it is timely to talk about what we need to be doing. We need
for our government to use the Navy to make sure that those
ships can freely come through and work with our partner
countries that make sure that they come through there. Also,
the financial and insurance direction. You know, when the
Strait was shut down, the insurance company, Lloyd's of
London----
Senator Slotkin. Yes----
Mr. Duvall [continuing]. cut off insurance.
Senator Slotkin [continuing]. they refused to insure.
Mr. Duvall [continuing]. they parked the boats. We need to
use every opportunity that we have in our country to make sure
that we solve that problem. Once we get it here, we need to
make sure that we waiver the Jones Act. The President has often
done that in difficult times like this. We also need to make
sure that ports, and rail, and everything that is going to
bring it from the port here in America, and get it to the
farmer real quickly, tear down any barriers that might be in
that area. I get--I think last but not least, but the
countervailing duties that are charged needs to be go off so it
makes it easier to get them here and make it more affordable
for our farmers. It is a serious time. My phone has rang off
the hook since last week when the Strait was shut down, and we
need to do it. We need to do it now.
Senator Slotkin. Thank you. Appreciate that. Yield back.
Chairman Boozman. Senator Tuberville.
Senator Tuberville. Thank you, Mr. Chairman. Thanks for
being here today. My State of Alabama, we are leaking oil bad.
We had lost 150,000 farms and 25,000 farmers nationwide just a
few years ago. You all know that. Mr. Duvall, I am going to
give all of you the answer to this one wish to correct this
God-awful mess. What do we do?
Mr. Duvall. I do not know that there is just one wish that
can solve this problem. We need open markets, we need a labor
force, and we need to tear down regulation to take down those
barriers that gets in the way of us actually being able to make
a living on the farm.
Senator Tuberville. Thank you. Scott.
Mr. Metzger. Yes, thank you, and that there is not a one-
answer-fits-all on this, but----
Senator Tuberville. Give a good shot at it.
Mr. Metzger. Give a good shot at it?
Senator Tuberville. Yes.
Mr. Metzger. Well, let us get some new markets opened up,
continue with the trades that we have had, and then on domestic
markets, you know, getting those ramped up, 45Z, we get the RVO
numbers out and finalized, get some domestic use done. That is
going to help.
Senator Tuberville. Mrs. Burns.
Mrs. Burns. Since Zippy said labor and open markets, I will
do a third one. I think the Federal Government can take action
to incentivize healthy eating, and to incentivize and provide
better access to domestic-grown products, specialty crops
products here in the U.S., and we can do that by driving
consumption. Huge opportunity for us in the U.S., and Americans
will be healthier.
Senator Tuberville. Thank you.
Mr. Bower. Senator, short-term, it is--that is a challenge
for new markets, I think we all know. E15 is poised to be right
there, but another one I need to bring up is we need to
continue support for the renewal of USMCA. I think that is
critical to row crop farmers. There are a number--Mexico is our
number one exporter of corn. Canada is our number one export
market of ethanol. Truly critical for growers in the short-term
while we build out these domestic markets.
Mr. Reed. Thank you, Senator. Speaking for the cotton
market or for the cotton production, as a cotton farmer, we
need to be able to leverage the power of the American consumer
through the Buy American Cotton Act and get that passed. Thank
you.
Senator Tuberville. Thank you,
Mr. Perdue. Senator, I would say that the single biggest
impact would be growing our renewable fuels markets. That is
going to improve prices for corn and for soybeans. It is going
to produce prices for--or improve prices for wheat. We also
need to make sure that we have strong and competitive fair
markets for farmers to buy inputs from and sell their
commodities to.
Senator Tuberville. Thank you very much. Mr. Reed you are
talking about the Buy American Cotton Act, which I am
sponsoring with my cohort, Cindy Hyde-Smith here. I hear that
this would totally revamp the cotton market because if we do
not do something, we are going to lose it all. In Alabama, we
are losing $400 an acre before we even plant it. I mean, it is
ridiculous. Why would we get in the cotton business? We have to
do something. Could you explain what this act would do?
Mr. Reed. Well, the American cotton farmer, we can produce
the highest quality, most environmentally friendly, best crop,
best cotton in the world. We cannot produce it cheaper.
Unfortunately, between other countries, without as much
regulatory environment and synthetics, we have been able to
not--we have been unable to compete on a world market. Our
domestic textile industry has been decimated, not only as a
cotton farmer, but our whole industry, the domestic textile
industry; the farm, or the gins, and cottonseed crushing
facilities.
There is so much that goes into cotton production just
beyond the cotton farmer. A lot of these small rural
communities depend on all that. When you lose the cotton
industry, you do not just lose the farmers, you lose the whole
industry in America. We feel that the Buy American Cotton Act
will reverse that trend and provide--allow us to use the power
of the American consumer that consumes 40 million bales of
textiles a year. It will allow us to bring that market back
because there is rewards in there for domestic produced thread
and fibre. There is a bigger tax credit, but it will allow us
to--until our American mill industry comes back, further export
cotton and then American cotton comes back in in garments that
may have been produced overseas and brands and retailers get a
tax credit. It will increase demand for American cotton.
Senator Tuberville. Thank you. Good explanation. Thank you,
Mr. Chairman.
Chairman Boozman. Thank you. Senator Lujan.
Senator Lujan. Thank you very much. Thank you, Mr.
Chairman, for calling this hearing and for our witnesses for
being here. Taking time away from home, that is not always easy
when you have other responsibilities, and that does not just
include the farm, that includes the family. Thank you all for
taking a moment.
Mr. Chairman, before I jump into questions, you know, I
just wanted to reflect on something here. We all fought for
seats on this Committee because we care about farms, we care
about our ranchers, we care about people, we care about access
to food. I was a little saddened by the markup that came out of
the House of Representatives on the farm bill because it is not
bipartisan. It did not take into account all of the programs
that have been devastated that are hurting folks across the
country.
I certainly hope, Mr. Chairman, that in the Senate, that we
can show our House colleagues that we know how to count
because, you know, growing up on that little farm, my
grandparents, they taught me when I would go get those eggs
that sometimes there were not eggs, and not to count them
before they hatch also if we wanted some new chickens, and
basic arithmetic around here seems to evade everybody. I do not
understand. If we are going to talk about getting a strong
bipartisan bill here that is going to help all of our farmers
and our ranchers, and make sure we have food for people that
are hungry, and that we are going to do something real here,
that we find a way to do it, Mr. Chairman.
I just certainly hope that everyone hears that loud and
clear. For me, if we cannot address the food problem that was
created in some of these pieces of legislation of devastating
access to food for hungry people, that should not be a starter
for us because cutting these food programs and access to them,
that hurts all the farmers across the country as well. Keeping
grocery store shelves empty, that is not good for anybody. A
big percentage of that dollar that is spent, I think, is 20
cents, when it comes to buying food in those grocery stores.
That little bit amount, that is what goes to farmers and
ranchers. Then, for all of our folks who are not here, that can
of food, I mean, hell, they are already struggling because the
cost of the tin that it takes to make the damn can, they cannot
afford to do it anymore. Oddly enough, the tariffs, they do not
hit--the can that has food in it that comes into America, just
the empty can. I am just beside myself as I try to figure out
all these crazy rules.
I am certainly hopeful that we will get there. We are
seeing now additional kickers when it comes to the cost of
fertilizer, the war in Iran. I did not realize that we got so
much fertilizer input from that Strait, and I am now realizing
how much that is hurting our farmers and ranchers back home as
well. I just hope that we look at this farm labor shortage,
there is a bunch of USDA staff that have been fired. A bunch of
farmers and ranchers back in New Mexico tell me that it is
great to get a farm bill, but if there is nobody at USDA to
implement all these programs that we create and fund, they do
not get any help. I certainly hope that when we talk about
these programs that we have the USDA professional staff in
place at the local level, at the federal level, to make sure
that these programs actually get to families back home.
Now, in my remaining time, Mr. Perdue, I would like to
begin by discussing the challenges facing specialty crop
producers as well, and I hope we get a lot more attention in
these spaces. We have gathered here today to talk about
increasing domestic consumption of U.S.-grown agricultural
products. In March 2025, USDA announced that the cancellation
of two local food procurement programs that did just that:
created a pipeline from local farmers to schools to food banks.
The cuts at the LFPA and LFS made by USDA total about $900
million. Now, farmers and ranchers back home told me that these
cancellations had negative impacts on their operations. Can you
speak to the uncertainty these cancellations had on fruit and
vegetable growers, especially folks who had made purchasing and
planting decisions based on these grants?
Mr. Perdue. Senator, appreciate the question, and certainly
there were benefits to the LFPA program or from the LFPA
program to North Dakota. There was $400,000-some in products
purchased from North Dakota farmers, ranchers, processors that
were then used to support hungry people through our Great
Plains Food Bank. That is an important demand boost. We are a
very rural state. If you want to have a base of demand for
those small-scale direct marketing-type operations, you need
some of that institutional demand, and pulling that away
certainly had significant negative impacts for many of those
producers.
Senator Lujan. I appreciate that. Mr. Chairman, as my time
expires, I certainly hope we keep an eye on some of these as
well because these are good for farmers and ranchers. Look, for
folks that are saying why are all these senators sitting up
there, they do not know a damn thing about our farms, look, my
hands are cut up from cleaning a ditch this weekend as well.
The Senate has made my hands a little softer, so all the
calluses I had when I was a kid, they have kind of gone away. I
made a joke this weekend that, you know, one of the things that
prepared me to serve in this body is when my dad used to make
me clean the shit out of the sheep barn as well, but, look, I
took a shovel to a ditch this weekend. These things go back
hundreds of years in New Mexico. It is how we get water going.
I think that a few of us need to take more shovels to the dirt
and understand what you guys are going through every day, so
that we can fight for these programs that make a difference and
make sure that we get to you as well.
Thanks for having me today, Mr. Chairman. I look forward to
rolling up my sleeves, working with my colleagues. Mr.
Grassley, let us make sure that we get more places to cut up
that meat and get it served on the plate, brother. I look
forward to working with all of you to get the work done.
Thanks, everyone.
Chairman Boozman. Thank you. Senator Grassley.
Senator Grassley. I am sorry I missed all your testimony,
but listening to your answers to questions of my fellow
colleagues and what my staff said--who heard all the testimony,
I think all of you said things that I would agree with. I want
to thank you for your great representation of American
agriculture, and thank you for coming and testifying. I think I
am going to submit my questions for answers in writing, and
give you some of my frustrations, and for the benefit of Iowa
farmers and for the benefit of my colleagues here, some of the
frustrations I have. I am going to start with a lot of things
that have already been talked about here by my colleagues, but
E15 and the importance of biofuels and Iowa being the number
one producer of biofuels, with about 50,000 jobs implied with
it, and a tremendous market for our corn.
One of the frustrations I have is dealing with these
refineries in the RINS and things like that that are holding up
getting E15 by legislation because the frustration comes from
the fact that for the last year or two years of Trump 1 and now
Trump 2, and then the four years of Biden in between, we had
E15 by Presidential waiver and still have it by Presidential
waiver, and not any of those six or seven years did I hear one
peep out of refineries. Somehow, you are going to make it law,
and I think somebody figures I can get my hands in the cookie
jar and benefit from it because I know that some of these mid-
sized refineries are billion-dollar businesses, and I am not
hearing from any small refinery that is not making some money.
What is the big deal? It is holding it all up, and we are not
going to get that $14 billion that the economist for the Corn
Growers Association says we are going to get if we cannot have
E15 nationwide year-round, if we do not get it by law because
you are never going to get the retailers to invest in the pumps
that it takes unless they know it is permanent law. I just do
not understand it, but we got to get it done.
Now, there is some good talk that we are getting close, but
we were there in February until some refineries wanted to get
their hand in the cookie jar, and then we do not get it in an
appropriation bill. Then they tell me, well, there is a good
chance it can pass the House of Representatives as a separate
bill if they get this final agreement, but you are never going
to get through the U.S. Senate as a separate bill. It has got
to be put someplace, and that could be a five-year farm bill,
it could be money for the Iran war when we supplement our
Defense expenditures, it could be this housing bill that is on
the floor right now, but there is no reason that we cannot get
it done.
This is all going on at the same time that we got people in
the Congress and maybe even in the Administration talking about
we are going to give a handout to the farmers of a certain
number of billion dollars in addition to the $12 that has
always been there. How many times have we heard farmers in Iowa
say, we do not want our money from the Federal Treasury, we
want it from the marketplace, and that is what it is going to
take? I heard my colleague from Iowa talk about 45Z. We have
some regulations for 45Z, but it has not covered agriculture,
and the only thing I want the Administration to keep in mind
when it comes to regulations for farmers to qualify for 45B, do
not make it as egregious as they did in 40B. Be a little more
realistic when you require farmers to benefit from their
cutdown on carbon.
My last thing deals with tariffs. I do not understand. If
we are losing a dollar on corn, we are losing $2 on soybeans.
If we can get the cost of production down a little bit, there
is no reason we should have tariffs on phosphate coming out of
Morocco when one company in the United States has 80 percent of
the market. There is no reason we should have tariffs on
anhydrous ammonia coming out of Trinidad when two companies
dominate the market in the United States, and there is no
reason we should have any tariffs on potash. You have heard me.
My opinion. Thank you very much, Mr. Chairman.
Chairman Boozman. Thank you, Senator Grassley. Thank you.
Senator Durbin.
Senator Durbin. Mr. Chairman, Senator Grassley, and I may
disagree on college basketball teams, but we agree on
everything else that he had to say.
Senator Grassley. Amen.
Senator Durbin. I have to tell you, you and I go back in
this E15 debate to the days of gasohol. It goes back to gasohol
a few years ago. I am with you all the way on what you had to
say on both accounts. I listened--I had a hearing I had to be
Ranking Member on, but I listened to your testimony, and there
are three things that came out to me.
Mr. Duvall, you talked about farm labor. Going to put in a
word that you do not hear too often, ``immigration,'' and we
have to be honest about immigration. I have got farmers--dairy
farmers, people who own orchards and the like tell me they just
cannot get anybody to do it, help them, and they are going to
give it up. They do their best, and they cannot, and those that
had loyal employees that came in from Mexico, for example,
bring their family every year. Good family relationship between
the owners of the farm and the workers. They are scared to
death to come to the United States right now. You know that for
a fact, and I do, too. It applies not just to farming, but it
applies to processing as well, and that is the reality. We got
to get serious about immigration. When we did a bipartisan
immigration bill, comprehensive bill, with John McCain, I was
on that group of eight senators, we had a farm program. It was
damn good. If we had it today, we would be much better off.
The second issue that I want to raise, and it applies to
virtually everybody, is tariffs. I hear when a door closes when
I meet with farm groups, and they know nobody can hear them,
how frustrated they are with tariffs. Farmers have long
memories. They can remember when Richard Nixon messed it up
with Japan and put Brazil on the map for soybeans. Mr. Metzger,
you know that story, and I think by and large, this tariff
thing, now that the Supreme Court has given it the boot, I hope
it does not come back. It is not helping. The third area is
what the war in the Mediterranean is going to do to input
costs. It has got to be bad when you consider what goes through
the Strait of Hormuz. You got three things, three policy
decisions by this Administration that are really putting us in
a real challenging situation.
Mrs. Burns, I would like to ask you a question if I can,
and I do not mean to pick on you, but one of the hottest--I
have been around Senate for a while. One of the hottest debates
I can ever remember in the Democratic Caucus was over the issue
of GMOs. It went on for days, and people were madder than hell
on both sides before it was over. We got a new debate coming
up, and, you know, from Secretary Kennedy and others what it
is. It is about processed food and what it means. Is it
dangerous? Is it nutritious? What is it? Tell me, if your
industry, specialty crops, is thinking ahead about a proactive
position when it comes to alternatives to processed food, do
you see some opportunity there?
Mrs. Burns. Yes. You are not picking on me. You are giving
me an opportunity to address the question. I--we have such an
opportunity here in the U.S. to increase domestic production by
increasing domestic consumption. As I said earlier, only 1 in
10 Americans are eating the right amount of fruits and
vegetables. That means 90 percent of Americans are not eating
the right amount of fruits and vegetables. Just an increase of
10 percent would be $33.5 billion. If we got the American
population to eat the amount of fruits and vegetables that we
are eating in protein, 50 percent, based on the Dietary
Guidelines, it would be an extra $134 billion.
Senator Durbin. Do you see this whole debate about
processed foods as an opportunity then?
Mrs. Burns. I see an opportunity to drive incentives to
purchase our products. If you think about SNAP, you know, if
we--there are programs within SNAP that drive incentives for
Americans to buy more fruits and vegetables in the SNAP
program, so health is having a moment. You said it yourself,
right? Health is having a moment right now. As a specialty crop
industry, we must take advantage of that.
Senator Durbin. I go into a high school in Chicago, brand-
new school, beautiful school. As we are leaving, I say, let us
walk through the cafeteria. The principal says, we are in a
hurry. I want to see what you are serving for lunch. I will
tell you what they were serving for lunch. Corn dogs, pizza,
tater tots. How about that for a meal? I think we can do a lot
better, and I think we need to be proactive in that area. I am
glad--I am so happy to hear that you are not taking a defensive
position on this, but a proactive position, and I invite the
others at the table to see it the same way. There is going to
be a national debate about nutrition. Let us do our darndest to
make sure it is balanced. Thank you, Mr. Chairman.
Chairman Boozman. Senator Hyde-Smith, who has been waiting
patiently.
Senator Hyde-Smith. Thank you, Mr. Chairman, very much, and
thank you to all of you for your willingness to come and
testify. You have done very well, and I certainly appreciate
your efforts because I know you could be doing a lot of other
things, but we are certainly glad you are here.
We are talking about at this hearing ways to increase
domestic consumption of U.S.-grown agriculture products and the
Buying American Cotton Act, which I introduced last year, would
achieve exactly that. I ask for unanimous consent, Mr.
Chairman, to enter into the record a letter sent today to the
Senate from industry stakeholders, textile mills, major brands,
and retailers, and farm bureaus from across the country, many
represented on this Committee, companies like Target, America
Trench, Gap, Dignity Apparel, all support this initiative.
Chairman Boozman. Without objection.
[The letters can be found on pages 106-110 in the
appendix.]
Senator Hyde-Smith. Thank you. Congress must deliver on two
things to save American agriculture before it is too late,
before we have to rely on foreign adversaries such as China to
feed and clothe us. It is imperative that we, one, provide an
additional round of short-term support to supplement the
Farmers Bridge Assistance Program until the achievements of the
One Big Beautiful Bill Act become available, which is going to
be later in October. Two, invest in a long-term, demand-
building initiatives, such as Buying American Cotton Act, which
will reduce our reliance on ad hoc assistance and farm bill
safety net programs in the future. This will help keep American
farmers and ranchers in operation while saving tax payer
dollars down the road.
Not long ago, a colleague from a state that does not grow
cotton asked me, ``Why should we support the cotton industry?
It is too small for us to care about and we do not grow it in
my state. Last year, the U.S. grew more than 95 million acres
of corn, 83 million acres of soybeans, but less than 10 million
acres of cotton. Synthetic fibers are on the rise anyway.''
Well, here is why we should care about the U.S. cotton industry
and passing this Buying American Cotton Act. While cotton
planted acreage is small compared to other major row crops, its
economic output and associate jobs dwarfs other major row crops
on a per-acre basis.
Just do the math. The supply chain is far more intricate
than other major row crops. That means jobs, money. More jobs
and more money. U.S. producers now have to export, as it has
been mentioned before, more than 85 percent of the cotton they
grow. We can use it right here. Just think about it. Most
products Americans use today are made of synthetic fibers or
foreign-grown cotton from Brazil and China. In Mississippi we
grow a lot of corn, soybeans, rice, sweets, sorghum, peanuts,
and cotton. Some see year-round E15 as a long-term fix for Ag.
Some point to the clean fuel tax credit. The list goes on, but
if we pick winners and losers among commodities, we have
already lost.
We in Washington need to adopt a comprehensive strategy for
domestic consumptions that lifts all of American agricultural
products. That is how all growers benefit, and it is the only
fix worth having. Today, I am here to emphasize that complex
problems are rarely solved with one simple solution and that
the Buying American Cotton Act should be part of the overall
solution that we are seeking.
This question is for Chairman Reed and President Duvall.
How would the Buying American Cotton Act support producers and
the entire cotton supply chain, and what will happen if
Congress fails to strengthen the domestic cotton market?
Mr. Reed. First, representing the cotton industry, I would
very much like to thank you for co-sponsoring this bill. As you
know, cotton has been in a big decline. Your State of
Mississippi. I am from Arkansas. As you know, in that region of
the country, we have much higher production costs. We depend on
crops that are higher-gross crops, higher-value crops, and
cotton is one of those. In addition to that, we have the whole
infrastructure that surrounds it, as we discussed, but we are
in a dire situation in cotton due to cheap domestic--or cheap
polyester and cheap foreign cotton. This is a way for us to
leverage the American consumer to help support our industry,
and there will be some cost offsets because the price of cotton
goes up, PLC payments go down to farmers. It is a win-win
across the board and also supports the industry, the whole
industry, all the way through the supply chain.
Mr. Duvall. Thank you, Senator. Wore my cotton tie today. I
do not grow cotton, but I know how hard they are struggling out
there for that. Your bill will incentivize companies to use
American-grown cotton, which is a good thing for our cotton
farmers. They need a market here in our country. When NAFTA was
passed and all our textile mills left and went overseas, that
is where our cotton had to go to, and now we need that
production to come back to this country so that we can give
them.
The key thing is not only will it help farmers. It is going
to help rural communities. We have lost 1,700 cotton gins since
1980. Seventeen hundred. That infrastructure will never be
replaced again. Never be replaced again, and all the jobs that
went with it and all the communities that depended on that
infrastructure just went away, and we have seen it all over the
Southeast and Southern part of our country. That bill will be a
tremendous help, not only to farmers--cotton farmers, but it
will be a big help for our rural communities in those areas of
our country.
Senator Hyde-Smith. Yes, because we want corn growers to
grow corn, but we want cotton growers to grow cotton. I think,
Mr. Bower, you mentioned that in a podcast this past week. I
had a question on that, but I am out of time, but thank you
again for your willingness.
Chairman Boozman. Thank you. Senator Warnock.
Senator Warnock. Thank you, Brother Chair. Look, I am all
for helping our farmers sell their crops across the country,
and coming from the State of Georgia, I certainly support any
efforts to strengthen and bolster the hands of our cotton
growers. We are talking about increasing American markets
today, in part, because international markets have been
decimated by the President's tariffs. We need our growers to be
able to sell here in the United States, certainly, but we also
need them to be able to sell globally. The President's
tariffs--taxes, which is what it is, taxes--have increased the
cost of everything farmers need, like fertilizer, fuel, and
equipment, and it is eroding the very slim margins that they
already had left. It is a tough business. I spend a lot of time
with our farmers all across the state, and I admire people who
are just really committed to that work. Farmers, for me, are an
answer to a basic prayer that we Christians pray all the time,
``Give us this day our daily bread,'' and the margins are thin.
There is so much that you cannot control. The President's
tariff taxes have made a tough business even tougher.
Mr. Duvall, it is good to see you again. Always good to see
you, and thank you again for your leadership, first over the
Georgia Farm Bureaus, and now, the American Farm Bureau. Now
that we are approaching a year into the tariffs, what is the
latest that you are hearing from farmers about the effects on
their business since last April?
Mr. Duvall. Well, it has been--it has been very difficult
for our farmers because it has raised the cost of inputs. Some
have been exempted, not all, but the loss of markets--we lost
some markets in the first trade war that we never recouped.
Now, we are very appreciative of the work the Administration
has done in opening up some of that market, but it--we have not
gotten back to the place that we were in the first trade war.
We had promises of frameworks of trade treaties all over the
world. I understand eight of them have been closed. We are very
appreciative of that, but until we see ships leaving the dock
with our products in it going to a destination, our farmers are
not going to find any relief.
When it comes to fruits and vegetables, and you want to
talk about USMCA and we are coming up on a review, it is so
important for us to renew that, but it is so important for us
to have something like a rapid response technique to be able to
deal with the flooding or dumping of products from other
countries. You know, we--our fruits and vegetable guys are
devastated because when they go into production, these other
countries will dump product in there and just destroy the
market, and it takes it below the cost of production for our
specialty crops.
The other play thing is we need to emphasize the importance
of our Federal Government, when they purchase foods, that they
purchase American-grown food, and we have to protect those
markets so that we give farmers certainty that they can stay in
business, produce fruits and vegetables. You realize that our
school system, 94 percent of the fruits that are served in our
school system come from out of country--94 percent--53 percent
of the vegetables. Why? Because we probably cannot--we do not
have the producers producing it because there is no certainty
there. They do not have any risk management tools, and there is
no protection from dumping from other countries, and those
things need to be solved before we can get the certainty out
there and bring young people and farmers back into the business
of producing specialty crops.
Senator Warnock. Well, absolutely, and, you know, as the
Ranking Member on Trade for the Finance Committee, I will be
taking a close look at USMCA. On the other hand, you know, I
think it would help if we could get a farm bill----
Mr. Duvall. Yes.
Senator Warnock [continuing]. a bipartisan farm bill,
passed through this Congress. I was glad to see that the USDA
admitted that farmers have been hurt by the President's
tariffs. It is one thing to have a theory of the case. The
President clearly had a theory of the case. He has had it about
30 years. I am not sure that he is responding to facts on the
ground, but now that we are beginning to hear from farmers,
they have admitted as much by providing a bridge payment
program, but I was--and I would point out that farmers, while
they appreciate the bridge payment program, what I am hearing
from farmers all the time, and Senator Grassley said the same
thing, we want trade, not aid, but here we are.
I was disappointed to see that only $1 million of the $12
million was dedicated for specialty crop farmers. As a former
president of the Georgia Farm Bureau, you know as well as
anyone how important specialty crops are, like blueberries,
peaches, and peppers. What is your view on how much of the
funding is going to specialty crop farmers based on your
understanding of their specific market conditions? I know I am
running out of time, Mr. Chair.
Mr. Duvall. One million does not even come close to
covering the losses that we had in specialty crop. Like in
other programs that are there to protect producers, specialty
crops do not have those risk management tools, and they do not
get the attention that they need because in this country, the
consumer is wanting more and more of those fruits and
vegetables. To compound that problem is the lack of labor. It
is a lot more labor intense. We do not have the labor to
actually get out in the field, pick it, harvest it, and get it
to the stores.
Senator Warnock. Across-the-board tariffs putting pressure
on farmers, an immigration policy that is so unforgiving that
you are struggling with labor, and now we are facing USMCA. All
of these make for a difficult mix for our farmers. I think we
need to sit with the farmers, hear what they are saying, and
then we have a chance of getting the policy right. Thank you so
very much for your work, and thanks to all of the witnesses.
Chairman Boozman. Thank you. Senator Fischer.
Senator Fischer. Thank you, Mr. Chairman, and thank you to
our witnesses for being here today.
It is no secret that we are facing challenging times right
now with the farm economy all across this country, so I
appreciate this hearing and the need to reinforce how we can
grow demand. While it has been touched on already, it is really
important for me to underscore the importance of biofuels as a
key demand driver for the Nebraska crops. Not only do biofuels
drive demand for our crops, but they play a crucial role in our
energy security. There are several ways before us that Congress
and the Administration can and should take action, and they
should take it immediately, that I would like to touch on.
Mr. Bower, through a patchwork of regulatory actions, we
have had year-round E15 now since 2019, but that patchwork of
emergency fuel waivers does not provide certainty. How does
Congress passing a year-round E15, which I have had a bill for
that for 10 years, how does that translate into greater corn
demand?
Mr. Bower. Well, Senator, thank you for being such a
champion on this issue. Your leadership has given us all hope.
As I have mentioned before, you know, this is just truly at a
point that was pivotal for the American corn farmers. You know,
E15 would provide certainty to the retailers, which in turn
builds the infrastructure out to lower the cost for consumers,
and then in turn bring that back to the corn farmer in a time
when we are so desperately in need of some relief. I cannot
emphasize how much it would mean just to my operation and to
all my friends and colleagues across the country. We are all in
a tough time, and it is not only the growers, but the consumers
as well, saving them at the pump. We have to have that
certainty for that infrastructure to go in and for people to
have the ability to find that at every station.
Senator Fischer. I appreciate you talking about consumers
because this is a way that we can save consumers money every
time they fill up at the pump, so thank you for mentioning
that. Mr. Metzger, the RFS Set 2 rule is currently pending at
OMB for soybeans. Can you discuss what strong RVOs will signal
to the market?
Mr. Metzger. Yes, thank you, Senator. With the strong RVOs
that are in the Office of Budget and Management, it is going to
be critical. We get up into that 5.61-billion-gallon area, with
it--and that is going to be a lot of bushels that is used up
domestically here, and it will help crush and oil together to
get to get bushels used up and help drive some of this domestic
demand that we are needing. The soybean farmers are in the same
boat. You know, this last year we were about $109-an-acre loss.
We are also the lowest on the FBA payment. It is--you know,
things like this are going to be critical for American soybean
farmers to be able to become more economically viable in the
future.
Senator Fischer. When our corn and soybean farmers are
successful, our rural communities are strong and the heartland
of this country is strong. Rural America has value, and
sometimes that is hard to explain to some of my colleagues, but
it is so important that we continue to find that dignity in
hard work, to find that value in strong communities and strong
families. Thank you both.
Mr. Duvall, welcome. Good to see you. As I mentioned, E15
is a significant byproduct of corn, and it has helped add value
and utilize more out of reach bushel of corn--of each bushel of
corn. With Nebraska being the beef state, beef byproducts are
also essential in driving domestic and international demand.
From hides to specialty cuts, the industry has significantly
increased its efficiency in using those cattle carcasses. We
also have seen interest from some producers, whether in the
cattle, dairy, or hog industries, of turning animal waste into
potential streams of revenue. Mr. Duvall, how do we continue to
bolster the development of new byproducts for the livestock
industry, and what opportunities do you see for maximizing
potential revenue streams from all livestock production?
Mr. Duvall. Well, thank you, ma'am. Thank you for the
opportunity and your question, which is not a real simple one
to answer, of course, because most of that market for those
byproducts is overseas, and that means good trade treaties and
making sure that we can move those products out of here, and
giving individual farmers access to that. One of the big
problems is, you know, to have those byproducts that a farmer
can use. A farmer does not have any place to take their animals
on a small scale. The big four packers dominate it, and it is
very difficult to find local processing plants for smaller
amounts of cattle that could be--or any livestock to go
through. To help small processing plants to be able to be
developed with low-interest loans or some kind of grants so
that they can sustain themselves in these communities would be
big.
I am in the beef business myself, and I would love to take
a certain percentage of my cattle straight to the consumer, but
there is nowhere within 400 miles of me to be able to process
it and get it done, so it is not practical to do that. We need
more small processors around so that farmers can utilize
straight to the consumer, and also take some of those
byproducts and expand on it, but research and development
dollars and investment in that infrastructure to be able to
handle that would be a necessity.
Senator Fischer. I agree with you. As the beef state, we
have cow-calf production, we have backgrounders, we have large
and small feedlots, and we have three of the four big packers
in the state. We are also seeing growth of smaller packing
plants in Nebraska, and I agree that that is a direction we
need to go, and one way we can address that, I think, at the
federal level, is looking at the regulatory environment that
affects all of agriculture. That sometimes is a really large
hindrance when you are looking at putting up those smaller
packing plants that can help smaller communities and still be
able to thrive in a marketplace with the big four. Thank you.
Mr. Duvall. The regulatory requirements and the cost that
goes with that, and the lack of technology that we are allowed
to use in those smaller plants and whether or not they could
afford it. It is just like any other technology or innovation
that comes down the pipe. Bigger producers can afford that,
where smaller- and middle-sized producers cannot afford it, and
it is putting pressure on them and pushing them out of
business, whether it be a processor or a small family farm. We
have to bridge that gap to make it affordable so that they can
use those innovation and technology in the future to preserve
that small family farm that American people are in love with.
Senator Fischer. I have got some bills on that with
precision agriculture to be able to have our small farmers take
advantage of all that really cool technology out there that
will help them be more profitable, and it is also good for
their economy, but the environment as well. Thank you, sir.
Thank you, Mr. Chairman, for allowing me to continue over my
time.
Chairman Boozman. No, thank you. Senator Marshall.
Senator Marshall. Thank you, Mr. Chairman, and welcome to
all of our guests, our witnesses. We do appreciate you being
here.
Mr. Duvall, if I told you I have export market that we
could double overnight, that we typically export about 2
billion bushels of corn, maybe 2.3, but we have a new market
that would add an additional 2.5 billion bushels of corn
consumption, would you be excited about that?
Mr. Duvall. I would be real excited and celebrate with you.
Senator Marshall. Yes, and of course, we have got that in
our backyard. By going to year-round E15, it would be the
equivalent of doubling our exports, and the beauty of that is
we do not have to depend upon the ups and downs of having to
deal with another country and maybe a different administration,
all these types of things. This would--this would--how big of a
win would this be, Mr. Duvall?
Mr. Duvall. It would be tremendous.
Senator Marshall. Yes. Mr. Bower, is there anything to add
how important year-round E15 is? Is there anything that is a
bigger priority right now for agriculture that could really
change net income today?
Mr. Bower. You know, when you talk about all the bushels,
Senator, and the amount of acres corn happened to cover this
past year, I mean, a lot of farmers are looking for a way to
make a profit, and they are hoping this is the light at the end
of the tunnel. I think we have seen a lot of acres transition
just for the hope that we are going to get E15 and we might
bring some profitability back. That is--that is our number one
priority, and we truly hope that it gets over the line here
soon.
Senator Marshall. Yes. Then, if I told you that I have
another export market that would consume even more corn than
year-round E15, and I talked about 45Z, what would be the go
ahead? Again, Mr. Bower, what would be the impact of 45Z
potential market?
Mr. Bower. Again, Senator, absolutely tremendous. You know,
the American corn farmer is the best in the world at raising
corn. You give us a--give us a goal, we will raise the corn,
and we will produce the corn. We just need the markets.
Senator Marshall. This is the number one ask I had for
President Trump and his team going into the election is to
proceed with 45Z, and it is here. We even got undenatured
alcohol in there so that we can export it as well. Mr. Duvall,
are you all happy with the President's rules for the 45Z?
Mr. Duvall. Currently, we are. Of course, we could always
modify them a little bit, and I do not want to get into the
weeds of that, but yes.
Senator Marshall. Okay. Looking through, Mr. Duvall, your
own--your graphs here, it is very enlightening that we saw a
record decline in net farm income in 2023 and 2024, net drop in
farm income in 2023 and 2024. Then, we talk about input costs,
and I think that is probably the number one challenge right now
is input costs. Input costs stayed stable in 2016, 2017, 2018,
2019, 2020. In 2021 we saw, it looks like, just a record
increase in input costs, and they continued upward, but they
have not come down. People tell me usually input costs come
down when the commodity prices come down, and, you know, I will
open it up to anybody. Why did the input costs go up so much,
and then what are the solutions?
Mr. Bower. Senator, I guess I will start. The input costs
went up because they could. Nobody told them they could not. As
farmers, you know, we are left out in the weather, in the cold,
and there has been a lot of consolidation in that realm. With a
lot of the things happening around the world, our ability to
source fertilizer and inputs has really declined, and we are
left stuck with what we got.
Senator Marshall. When you say no one told them they could
not, what you are really referring to is a concentration of
industry.
Mr. Bower. Yes, Senator.
Senator Marshall. When we speak of--speak of input costs,
really what we are talking about are chemicals and fertilizers.
They would be the big chunk of input costs. You know, certainly
diesel fuel is in there as well. Until nine days ago, diesel
fuels were coming down----
Mr. Bower. It really was, yes.
Senator Marshall [continuing]. and even interest is a huge
expense for farmers.
Mr. Bower. Right now.
Senator Marshall. The average Kansas farmer, a million-
dollar operation, loan interest rates went from two to nine
percent overnight, so it is good that that is coming down as
well. Mr. Duvall, anything to add on input costs? You know,
why, and what can we do to help impact these?
Mr. Duvall. We know the events around the world with the
war in Ukraine and now the war in Iran is not helping things at
all, and it has been challenging. Of course, we have encouraged
the people that are providing those inputs to be more
transparent so that we could more understand on the farm why
those increases have come so high. The other increase you have
not even mentioned is increase of machinery.
Senator Marshall. Yes.
Mr. Duvall. I mean, if you just--I do not grow cotton, but
I know you cannot touch a cotton picker for less than $1
million, and it does one thing: it picks cotton for about a
month.
Senator Marshall. Yes.
Mr. Duvall. It does one thing, and, you know--and it has--
and it has probably doubled in price in the last five or six
years. There is really no explanation other than what is
happening around the world, and I think there needs to be more
transparency so that we can understand why these inflated
prices are there.
Senator Marshall. Okay. Mr. Chairman, I think I will just
leave it there. Thank you.
Chairman Boozman. Thank you very much. I just got a couple
more things. Matt--Mr. Perdue--tell me--you know, I had a
situation--this has been probably five or six years ago--where
I was at a meeting and they were talking about sweet potatoes,
and actually, I was meeting with a guy. This was a guy that
farmed all kinds of stuff and just a guy that knew how to make
it work. You know, he is like, you-all, at the top of your
fields. He--I told him, I said, I am going to go to a meeting
about sweet potatoes. You know, there--again, not a lot grown
in Arkansas, and he was intrigued by that. He said, well, I am
going to come with you, so he would, you know, get in the car
and go over there. He looked at the presentation, researched
it, and then wound up planting a bunch of sweet potatoes and
made a bunch of money out of it. I do not know what they are
doing now or whatever, but at that time, again, savvy guy.
Are we doing a good job in informing our producers, our
farmers about the alternatives? You know, again, we are in a
situation now where this is not--this is not the first year it
has been bad. What is making this year so bad is it is the
third year of being bad, and I see John Newton out in the
audience, our great economist. He is going to tell us that next
year does not look a whole lot better, okay. It really makes it
difficult and, you know, these years doubling up. Are we doing
a good job of telling the agriculture community to, you know,
to start looking for ways to look into different crops, not
necessarily not doing their own crops, you know, or what they
are used to, but in addition?
Mr. Perdue. Senator Boozman, I appreciate the question, and
there is always room to improve research and extension, and
making sure that producers understand the opportunities
available to diversify their operations. Where I think there
really needs to be a focus is creating those market
opportunities. You know, on our farm, we raised malt barley for
many years, and we do not do that anymore because there is not
local contracts. I think that is a good reminder to us all to
drink more beer, but I think it also demonstrates that, you
know, you need to have that local market outlet.
On the other hand, you see in Southwestern North Dakota,
there was hardly any corn raised for grain there 15, 20 years
ago. There is an ethanol plant now. A lot of people have a lot
of success raising corn for grain and selling it to an ethanol
plant. The market opportunity is what people need, and we need
to make sure that we are providing more diverse market
opportunities for producers.
Chairman Boozman. Let me ask you, Mr. Metzger, in regard to
that. You know, as we have, you know, some things coming on the
line with opportunity, are we worried about people changing
their planning decisions, and then you are in a situation where
everybody is growing, and then you have increased--you have got
increased supply and then that lessens your cost?
Mr. Metzger. Yes. Thank----
Chairman Boozman. Does that make sense?
Mr. Metzger. Yes. Thank you, Chairman. Yes, that is--yes,
that is always an issue depending on, you know, how rotations
go every year. You know, the--in the--we get in these tighter
economic times like this, a lot of times there will be more
soybeans planted, an increase in soybeans and a little bit
decrease in corn acres. That would be a concern, but that is
where, you know, we get some of these--some domestic demand use
up with it, get the--get the RVOs out, and that will help--that
will help those increased acres that we have, you know, if
the--if the higher yields come to fruition with it.
Chairman Boozman. Very good. Cathy, you got any words of
wisdom as we leave?
Mrs. Burns. Yes. I am so excited that they grew sweet
potatoes. Those are our people.
Chairman Boozman. No, that is good.
Mrs. Burns. That means the demand for sweet potatoes must
have been increasing.
Chairman Boozman. Yes, yes.
Mrs. Burns. Right now, specialty crops are grown in all 50
states, and the easiest way for us to look at expanding
domestic production is by expanding domestic consumption and
also opening markets. Absolutely, our growers will grow
anything. They will increase their acreage if the markets are
there and the demand is here domestically, and at the end of
the day, it will improve the health of all Americans.
Chairman Boozman. How many specialty crop producers have we
lost in the last 20 years?
Mrs. Burns. Well, total farms over the last two decades is
about 230,000.
Chairman Boozman. It is about 80--it is like 80 percent,
isn't it?
Mrs. Burns. Yes, I mean, it is--you know, and it is a
significant amount, so----
Chairman Boozman. Yes, yes.
Mrs. Burns [continuing]. because of the high input costs,
because of the labor challenges. I mean, that is the biggest
challenge is if you think about--if we could just get 50
percent of Americans eating the recommended amounts of fruits
and vegetables, imagine the labor----
Chairman Boozman. Right.
Mrs. Burns [continuing]. it is going to take to harvest
that.
Chairman Boozman. Well, my concern is, again, you know, we
can look at specialty crops. This stuff, like I say, did not
start this year. You know, it started a long time ago, this
slide, but they are such a great example of what can happen in
the sense of losing so much. My concern is that is going to
spread, you know, across the commodity sector also. We need to
beef up specialty crops. We need to protect what we have in the
commodity sector, and that is really going to take all of us
working together.
We appreciate you. Today was very helpful. I cannot tell
you how busy it is around here. It is busy right now. There is
lots going on, but we had all kinds of Members come and
participate, so you can be very proud of that. That says a lot
for you all, that they actually wanted to hear what you had to
say. Again, we appreciate it, and the way you can help us, and
I speak for myself and Senator Klobuchar, just let us know--let
us know what you are thinking. You are not a bashful bunch at
all, we do not have to worry about that, but we really do
appreciate all that you do and helping us get through a very,
very difficult time. Thank you very much.
With that, the--I got to do my--where is my stuff? Okay.
The record will remain open for five business days.
Chairman Boozman. Today's hearing is now adjourned.
[Whereupon, at 5:19 p.m., the Committee was adjourned.]
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