Hearings to examine the nomination of Glen Smith, of Iowa, to be Under Secretary of Agriculture for Rural Development.
Meeting•Senate Agriculture, Nutrition, and Forestry•Nov 5, 2025 · 3:00 PM
Summary
Senate Agriculture, Nutrition, and Forestry held a meeting on Nov 5, 2025 at 3:00 PM in Russell Senate Office Building, Room 328A.
Record
The meeting has its transcript on the record.
Transcript
The transcript runs to 1,368 lines and 70,812 characters, as the Government Publishing Office printed it.
1[Senate Hearing 119-176]2[From the U.S. Government Publishing Office]34 S. Hrg. 119-17656 NOMINATION OF GLEN SMITH TO BE UNDER7 SECRETARY OF AGRICULTURE FOR RURAL8 DEVELOPMENT910=======================================================================1112 HEARING1314 before the1516 COMMITTEE ON AGRICULTURE,17 NUTRITION, AND FORESTRY1819 UNITED STATES SENATE2021 ONE HUNDRED NINETEENTH CONGRESS2223 FIRST SESSION24 __________2526 November 5, 202527 __________2829 Printed for the use of the30 Committee on Agriculture, Nutrition, and Forestry3132 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]3334 Available on http://www.govinfo.gov/3536 ------3738 U.S. GOVERNMENT PUBLISHING OFFICE394061-815 PDF WASHINGTON : 20254142 COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY4344 JOHN BOOZMAN, Arkansas, Chairman45MITCH McCONNELL, Kentucky AMY KLOBUCHAR, Minnesota46JOHN HOEVEN, North Dakota MICHAEL F. BENNET, Colorado47JONI ERNST, Iowa TINA SMITH, Minnesota48CINDY HYDE-SMITH, Mississippi RICHARD J. DURBIN, Illinois49ROGER MARSHALL, Kansas CORY BOOKER, New Jersey50TOMMY TUBERVILLE, Alabama BEN RAY LUJAN, New Mexico51JAMES C. JUSTICE, West Virginia RAPHAEL WARNOCK, Georgia52CHARLES GRASSLEY, Iowa PETER WELCH, Vermont53JOHN THUNE, South Dakota JOHN FETTERMAN, Pennsylvania54DEB FISCHER, Nebraska ADAM SCHIFF, California55JERRY MORAN, Kansas ELISSA SLOTKIN, Michigan5657 Fitzhugh Elder IV, Majority Staff Director58 Corey Weber, Majority Chief Counsel59 Jessica L. Williams, Chief Clerk60 Lauren Santabar, Minority Staff Director61 Chu-Yuan Hwang, Minority Chief Counsel6263 C O N T E N T S6465 ----------6667 Wednesday, November 5, 20256869 Page7071Hearing:7273Nomination of Glen Smith to be Under Secretary of Agriculture for74 Rural Development.............................................. 17576 ----------7778 STATEMENTS PRESENTED BY SENATORS7980Boozman, Hon. John, U.S. Senator from the State of Arkansas...... 18182 WITNESS8384Smith, Glen, of Iowa, to be Under Secretary of Agriculture for85 Rural Development.............................................. 38687 ----------8889 APPENDIX9091Prepared Statements:92 Smith, Glen.................................................. 249394Document(s) Submitted for the Record:95Boozman, Hon. John:96 Ag Bioeconomy Coalition in support of Glen Smith, letter of97 support.................................................... 269899Smith, Glen:100 Committee questionnaire, Office of Government Ethics101 Executive Branch Personnel Public Financial Disclosure102 Report..................................................... 27103 Addendum to Committee Ethics Agreement, dated November 3,104 2025, filed by Glen Smith.................................. 60105 Addendum to Committee Financial Disclosure, dated November 3,106 2025, filed by Glen Smith.................................. 61107 Addendum to Committee Senate Letter, dated November 14, 2025,108 filed by Glen Smith........................................ 62109 Second Addendum to Committee Ethics Agreement, dated November110 13, 2025, filed by Glen Smith.............................. 63111 Agency Letter to the Office of Government Ethics, dated112 November 13, 2025, filed by Glen Smith..................... 64113 Second Addendum to Committee Financial Disclosure, dated114 November 13, 2025, filed by Glen Smith..................... 66115 Five-day letter filed by Glen Smith.......................... 68116117Question and Answer:118Smith, Glen:119 Written response to questions from Hon. Amy Klobuchar........ 70120 Written response to questions from Hon. Tommy Tuberville..... 72121 Written response to questions from Hon. Michael Bennet....... 73122 Written response to questions from Hon. Cory Booker.......... 75123 Written response to questions from Hon. Raphael Warnock...... 75124 Written response to questions from Hon. Peter Welch.......... 78125 Written response to questions from Hon. John Fetterman....... 79126 Written response to questions from Hon. Adam Schiff.......... 81127128 NOMINATION OF GLEN SMITH TO BE UNDER129 SECRETARY OF AGRICULTURE FOR RURAL130 DEVELOPMENT131132 ----------133134 WEDNESDAY, NOVEMBER 5, 2025135136 U.S. Senate137 Committee on Agriculture, Nutrition, and Forestry138 Washington, DC.139 The Committee met, pursuant to notice, at 3:02 p.m., in140Room 328A, Russell Senate Office Building, Hon. John Boozman,141Chairman of the Committee, presiding.142 Present: Senators Boozman [presiding], Hoeven, Ernst, Hyde-143Smith, Marshall, Grassley, Fischer, Klobuchar, Bennet, Smith,144Lujan, Welch, and Fetterman.145146 STATEMENT OF HON. BOOZMAN, U.S. SENATOR FROM THE STATE OF147 ARKANSAS, CHAIRMAN, U.S. COMMITTEE ON AGRICULTURE, NUTRITION,148 AND FORESTRY149150 Chairman Boozman. It is my privilege to call this hearing151to order. I thank my colleagues for joining us today. Today, we152will consider the nomination of Mr. Glen Smith of Iowa to be153Under Secretary for Rural Development at USDA.154 Mr. Smith, congratulations on your nomination, and thank155you for your willingness to serve. Then, also thank you to your156family. These are all family affairs to allow you to serve, so157we want to extend a warm welcome to your wife, Fauzan, and158lovely family joining you here today.159 Mr. Smith, when speaking with you, it is clear you160understand the challenges facing rural America. Your161experiences as a young farmer in the 1980s operating a family162farm and serving on the board of the Farm Credit163Administration, among other roles, will be critical for you to164draw on as you make decisions that will have bearing on rural165communities and an extremely challenging farm economy. Your166nomination comes at a crucial time for American agriculture and167the broader rural economy.168 Members on this panel are all too familiar with the grave169challenges facing the agriculture sector. While rural170communities vary widely, many of them share the serious issues171that rural development is uniquely equipped to tackle. Within172the past 15 years, nearly 200 rural hospitals have closed or173ended inpatient services. Home ownership has become more174difficult to attain due to low housing stock and rising prices.175Millions of Americans living in rural areas still do not have176access to high-speed broadband or even clean drinking water and177adequate sanitation.178 If confirmed, you will be charged with the critical mission179of improving the economy and quality of life in rural America180through three agencies: the Rural Utility Service, the Rural181Housing Service, and the Rural Business Cooperative Service.182 In my own home State of Arkansas, I have seen firsthand the183success of USDA's core Rural Development programs that improved184access to infrastructure necessary to provide clean drinking185water, reliable and affordable electricity, high-speed186broadband, quality healthcare, and safe, affordable housing. It187is not an exaggeration to say that many of RD's programs are188lifesaving and generate tremendous results for the investment.189 I am looking forward to the conversation today and hearing190your thoughts on not only how Rural Development will continue191to be a resource for Americans living in rural communities, but192also ways we can work together to streamline programs, ensuring193they reach the communities and individuals who need them most.194Again, congratulations on your nomination.195 Senator Klobuchar is going to join us in just a little bit,196so I think what we will do is go ahead and ask you to start197with your opening statement.198 Oh, I am sorry. Go ahead.199 Senator Ernst. Thank you, Mr. Chair.200 Chairman Boozman. I got ahead of myself. I was so excited.201I was doing everything right----202 Senator Ernst. We were so excited to hear from Mr. Smith.203 Well, thank you, Chairman Boozman, and to the Ranking204Member Klobuchar when she arrives. It is a privilege to205introduce a fellow Iowan, Mr. Glen Smith, to this Committee. I206also want to warmly welcome his wife, Fauzan, and their family.207Special shout-out to Emma, who is entering into--you are in the208seventh grade, correct, Emma? Well, thank you for being here209today. It is always a family affair, and Glen, you have such a210wonderful family. Welcome, everyone, to Washington, DC.211 I am sorry? Oh, the Honorable Senator from Kansas said you212married up.213 [Laughter.]214 Senator Ernst. I have had the very personal pleasure of215knowing Glen and his family for many, many, many years. His216hometown of Atlantic is just down the road from my home in Red217Oak, and today feels full circle for me because in this very218same Committee room eight years ago, I had the pleasure of219introducing Glen during his nomination to the Farm Credit220Administration. Since then, he has spent almost a decade221helping strengthen the backbone of American agriculture,222ensuring farmers and rural businesses have the credit and223financial tools they need to succeed.224 Now, President Trump has chosen him to serve as the Under225Secretary of Agriculture for Rural Development, a role that226impacts communities in every state. As a fellow Iowa State227graduate with a degree in Agricultural Business, Glen built a228career in agricultural real estate and appraisal, serving229farmers and landowners all across southwest Iowa. Glen, Fauzan,230and their family also operate Smith Generation Farms, working231approximately 2,000 acres of row crops.232 With his experience, Glen is exceptionally well-positioned233to lead USDA's Rural Development mission. I could not be more234excited about his nomination and look forward to seeing the235revitalization of our rural communities under his leadership.236 Thank you, Mr. Chairman. I yield back.237 Chairman Boozman. Thank you and thank you for getting me238back on track. It is appreciated.239 [Laughter.]240 Chairman Boozman. Again, thank you for being here, Mr.241Smith. I will now administer the oath and then you may begin242with your testimony. You will have five minutes.243 Please stand and raise your right hand.244 Do you swear or affirm that the statement you are about to245provide is the truth, the whole truth, and nothing but the246truth, so help you God?247 Mr. Smith. I do.248 Chairman Boozman. Do you agree that, if confirmed, you will249respond to requests to appear and testify before any duly250constituted Committee of the Senate?251 Mr. Smith. I do.252 Chairman Boozman. Thank you. You are now recognized for253your statement.254255 STATEMENT OF GLEN SMITH, OF IOWA, TO BE UNDER SECRETARY OF256 AGRICULTURE FOR RURAL DEVELOPMENT257258 Mr. Smith. Well, thank you for those introductions. Senator259Ernst, Senator Grassley, you are a friend to our family for260many years and a friend to all in agriculture.261 Chairman Boozman, Ranking Member Klobuchar when she262arrives, distinguished Members of the Ag Committee, it is an263honor to appear before you today as President Trump's nominee264to be the Under Secretary for Rural Development in the United265States Department of Agriculture.266 I am a fifth-generation farmer from the gently rolling267hills of western Iowa. All our children behind me would268represent the sixth generation, and as mentioned before, she269would probably squirm a little bit for the attention, my270special guest is our oldest granddaughter, Emma, which271represent the seventh generation of agriculturalists, and that272is if she continues her impressive career in the cattle273business. She is quite a showman.274 Like most farm kids, the important virtues of hard work and275determination were instilled in me at a very early age. I276witnessed for years my parents struggling to keep a small farm277going. I watched my folks fight back after a disabling278accident, working off-farm jobs, doing farm work--sorry--in the279evenings, weekends, and holidays. Our rural community was280always there, supportive, talking about our neighbors, our281friends, family, church, pastor, emergency response, healthcare282system, doctors, nurses, schools, teachers, coaches, local283businesses offering jobs. The list is long, and the lessons284learned from living in a rural community never leave you.285 In order for rural communities to survive and prosper, we286must have robust rural economies. As a lifelong farmer, I can287tell you, when a farmer has a dollar in his pocket, chances are28880 to 90 cents of that dollar will be spent in town. It is that289multiplier effect we all read about. The key to that prosperity290has and will continue to be adding value to our raw, bulk291agricultural products. I have noted, I think it has been great292to see the proliferation of consumer--directly to consumer from293producer products that we have seen in the last decade, maybe294since COVID. Locally raised beef from North Dakota and Kansas295ranches, pork from Minnesota farms, locally raised dairy,296vegetable, and fruit in Michigan and Vermont directed to our297schools, hospitals, and farmers' markets.298 I have witnessed this value added in our own backyard, as299one of our Iowa farms actually borders one of the most300efficient ethanol plants in the world. I have seen how it has301boosted our local economy. It is not just the 80 jobs at that302plant. It has all the support services and businesses it303engages and the wealth it pumps into the trade area from the304premium price paid for corn for the ethanol that is distributed305all over our country and all over the world.306 Now you capitalize those premiums by long-term investment307rates. You are talking hundreds of millions, maybe billions of308dollars over time that is pumped into that rural economy. Rural309development could and should play a key role in that value-310added investment and entrepreneurship encouragement.311 The second area I would like to touch on is rural312connectivity. During COVID, many of you saw, and I saw--313actually saw a reversal of the historic rural-to-urban314population migration. We actually saw rural populations grow,315largely in areas that could support remote internet work. I316firmly believe that many urban residents desire and would seek317the amenities of rural living. However, they also need the318tools to work remotely in meaningful occupations. Those same319tools of connectivity allow schools, hospitals, and businesses320in rural areas to compete with the rest of the world.321 Let's take a history lesson. In 1936, under the New Deal,322Franklin Delano Roosevelt, Rural Development was charged with323the challenge of bringing electricity to our country's rural324regions, a mission that was admirably achieved. Given the right325resources, Rural Development should strive to achieve that same326level of success in rural connectivity, and again, given the327right resources.328 The last area I would like to touch on is the cost and329availability of homes in rural America. While this is a330challenging area, if confirmed, I pledge to ensure USDA331programs on housing operate with transparency and efficiency. I332will look at all options specific to different regions and make333intelligent long-term investments in meeting housing demand.334Intelligent investments, not just pushing money out the door.335That is not fair to the recipients, and that is not being336accountable to the public dollar.337 These are a few of my ideas as I ponder a new role as338advisor to Secretary Brooke Rollins in carrying out the goals339of the Trump Administration in serving rural America. As340Members of this Committee, I am sure you have many of your own341ideas, some of which you shared last week. If confirmed, I342pledge to you I will listen to those ideas. Together, we will343work in improving the viability and prosperity of rural344America.345 I look forward to your conversations and questions.346 Thank you, Mr. Chairman.347 [The prepared statement of Mr. Smith can be found on pages34824-25 in the appendix.]349 Chairman Boozman. Thank you very much.350 Without objection, I would like to add letters of support351for Mr. Smith's nomination into the record. So ordered.352 [The letter can be found on page 26 in the appendix.]353 Chairman Boozman. I will go ahead and get started. Arkansas354is one of the largest shares of rural population in the country355with almost 45 percent of the state's population residing in356rural areas. While USDA data does show modest population gains357in some rural communities following the COVID pandemic, many358rural communities still continue to see declines. I guess the359question is--and to me, that is really the major problem facing360rural America. I think 53 percent of our counties lost361population last census. It does not matter if you are the362fastest growing state in the country or where you are at, even363those states are losing rural population.364 I guess the question is, what ideas do you have, how can365you work with Congress to implement things that will help stem366the flow of outmigration and generate sustained economic growth367in rural areas?368 Mr. Smith. Thank you, Chairman Boozman. In my opening369comments in addressing the three areas of Rural Development, I370think to look at solving some of the decline in rural American371population, you look at it two-fold. Number one, we need to372have good, vibrant rural economies, and successful agriculture373contributes to that tremendously, again, the multiplier effect374we speak of. Rural Development has so many programs, 88375programs I have learned, and many of those are support for376businesses, for cooperatives, entrepreneurship endeavors in377rural America, and all these contribute to that prosperity and378moving ahead as far as that rural economy, but you also have to379have quality of life.380 Rural Development also plays a huge role in that with the381community facilities, everything from water treatment to waste382treatment to hospitals to fire stations, infrastructure--383hospitals--infrastructure that contributes to the quality of384life because you are not going to keep residents or attract385residents, which would be even more positive, if you do not386have that quality of life. Rural Development contributes hugely387to that quality of life.388 Chairman Boozman. Very much, thank you. Mr. Smith, we have389all seen news reports that hostile actors like China have390targeted U.S. utility infrastructure such as water systems.391What are your thoughts on the importance of cybersecurity to392the core infrastructure programs at Rural Development? Will you393commit to working with this Committee to better understand what394new policy tools may be needed for USDA to ensure our rural395water systems and other critical infrastructure are protected396from those who wish to do us harm?397 Mr. Smith. Well, Senator, that scares the bejesus out of398me, and it should be every American, the vulnerability of our399grid, particularly in rural areas that may not have the400security measures that is needed to protect that distribution401grid. I think any programs that Rural Development is involved402in should make sure we have adequate cybersecurity measures,403because a lot of this can be done by bad characters simply from404cybersecurity. They are not going to show up at a site and405plant a bomb at a substation. They are going to do it on their406computer. The cybersecurity issue is very huge, and it is407something I think we should make sure we have those protections408in place for new loans, for guarantees, and grants whatever--409wherever Rural Development is contributing.410 Chairman Boozman. One thing that government struggles with411is IT. How important do you think improving USDA's RD IT412capabilities are to the success of the programs? How do you413view technology improving the customer experience?414 Mr. Smith. Senator, I have not delved into it yet, but I415can pull on my experience at Farm Credit Administration. In416fact, my fellow board member, Jeff Hall, is here in the417audience, and Jeff and I worked together for eight years.418Cybersecurity is at the top of the issue, and a key to that is419a very, very on-top-of-it IT program. We found with our420employees, particularly during COVID, we really had to tap into421those IT resources in order to continue with our mission.422 My goal will be to find out, first of all, if our field423offices, hundreds of field offices throughout the country, are424equipped with the right equipment, the audio and the visual425equipment that allow them to communicate between offices, and426also communicate, obviously, with the hub offices and with us427here in D.C. It is something I will look into and something428that I think is a great deal of importance, and if there is429improvement needed, you can believe that we will try to execute430those changes.431 Chairman Boozman. Thank you.432 Senator Smith.433 Senator Smith. Well, thank you, Mr. Chair, and welcome to434the Committee, Mr. Smith. Maybe you are related to my husband's435family. I cannot say for sure.436 Mr. Smith. You never know.437 Senator Smith. That is right. Mr. Chair, in preparation for438this hearing, I asked my staff to check in with Minnesotans on439this very important issue of rural economic issues, and the one440question that we kept hearing over and over again was, what is441this administration's plan for spurring rural economies? This442question is being asked in the context of a lot of talk about443moving things around within Rural Development, for example,444moving the Rural Housing Service to HUD, or rural business445financing programs to SBA, or rural broadband programs to446Commerce. I do not know what this would look like yet. We do447not have a concrete plan, but I can tell you that in Minnesota,448this is giving people a lot of concern because they trust the449USDA on these issues. They know where to go. They know how to450find the help that they need, and they know that rural451challenges are unique, and they believe that the USDA452understands that.453 I wanted to just raise this, Mr. Chair, because I think454that as we are looking at a farm economy that is deeply455challenging for so many folks right now, big credit crunch, a456lot of challenges, it is really important that folks know that457USDA Rural Development is going to be there for them.458 I want to go to a piece of this right away. I appreciate459that you mentioned rural housing in your opening statement. I460am sure everybody around this Committee table knows that we461have a serious shortage of housing, affordable housing in462particular, in rural communities. These are places where our463elders, folks living on fixed incomes, people who are working464two or three jobs but in low-wage jobs, this is where they465live. Everyone agrees, I think, that the Rural Housing Service466at USDA needs to be reformed and modernized.467 This has been a special project of mine. I have worked with468Senator Rounds on this for several years, strong bipartisan469support. In fact, it passed out of the Senate.470 I wanted to ask you about this, Mr. Smith. I think that the471Rural Housing Service should stay at USDA. They know the472program. They understand how it works. They can work with rural473communities. Could you comment on that? Do you think that it474should stay at USDA? Will you work with me on this piece of475legislation? It is yet to pass the House. It is part of the476NDAA right now bill that has passed out of the Senate. Could477you just comment on this and let me know that you would be able478to work with me on this?479 Mr. Smith. Certainly, Senator. I could not agree with you480more. My firsthand experience with USDA is--as a farmer is the481NRCS and FSA offices. They have very similar footprints out in482rural America as Rural Development. We have got the mechanism483for these programs, and I could not imagine it being in another484area other than USDA.485 One of my primary responsibilities is to be the advisor to486Secretary Rollins, and that certainly would be my advice to487her. As far as working with you, I would be more than happy to488work with you on those ideas and that bill to make sure that489comes about.490 Senator Smith. Thank you. I believe that this bill is one491of those classic, common sense, bipartisan, does not cost very492much, but let's just figure out how to make these programs that493have been around for a long-time work better----494 Mr. Smith. Yes.495 Senator Smith [continuing]. for farmers and for homeowners.496It could preserve up to 400,000 affordable units across the497country, so it is a big deal.498 Let me just ask you about one other thing in the minute I499have left. I also hear all the time in rural communities about500how important it is to find childcare. You know, if you do not501have childcare, then, you know, you have got a lot of families502that are working off-farm as well as on the farm, and there is503a real shortage. It is a big issue. This is another bipartisan504thing. I have worked with Senator Ernst and Senator Marshall on505this legislation that would help the USDA, help local, often506family-owned childcare providers in their communities. Would507you just talk a little bit about this and kind of how you see508this challenge?509 Mr. Smith. Well, actually, I probably should bring my wife510up here in the chair because she can attest to the challenges511we had raising four children, not having a lot of money, and512basically her working a full-time job as a nurse at the513hospital, me starting to try to get a business off the ground514in town, and operating a farm besides. Yes, it was a constant515challenge and juggling contest to see who would pick up who,516who would take who to school, who would drop off here.517Childcare has become a critical need in rural America, as the518next generation can attest to with our grandchildren.519 I know in our hometown community of Atlantic right now,520there is an initiative to bring in new housing, and compatible521with that and right with that is expanding on a childcare522center, which we have contributed to.523 Absolutely, you have hit right on the point. The fact of524life is many rural families are two-income families.525 Senator Smith. That is right.526 Mr. Smith. Back when I was growing up, you had your527grandparents, you had your uncles, aunts and uncles and528cousins. It was right there, and a lot of times, you all traded529that off; you got on the school bus at the same time. Well, we530are in a different era now with those two-income families. A531lot of times, two-income families means a spouse works just to532provide insurance----533 Senator Smith. Healthcare.534 Mr. Smith [continuing]. for that family. I have got a young535friend down the road that has got four young children. They are536all healthy, thank God, and his insurance is like $36,000 a537year.538 Senator Smith. Yes.539 Mr. Smith. That does not even include----540 Senator Smith. You have got an idea to fix that, too.541 [Laughter.]542 Mr. Smith. Well, okay. As far as----543 Senator Smith. I am being polite because this is the Ag544Committee.545 [Laughter.]546 Mr. Smith. Okay. As far as childcare, Senator, I could not547be more supportive----548 Senator Smith. Thank you.549 Mr. Smith [continuing]. of that, and that would fall under550the community facilities area.551 Senator Smith. That is right.552 Mr. Smith. Rural Development, as I understand it, is active553in it right now.554 Senator Smith. Well, I am well over my time. Thank you, Mr.555Chair.556 Thank you very much.557 Chairman Boozman. Thank you.558 Senator Ernst.559 Senator Ernst. Yes, thank you, Mr. Chair, and thank you,560Mr. Smith. It is great to have you here before us today. I know561that I am biased, but I always say we need more Iowans serving562in our Federal Government, and truly those folks who understand563what it is to be a rural American, so thank you so much for564being willing to take this on.565 Mr. Smith, as you know, the ag economy continues to566struggle. We have got high input prices and low commodity567prices. Just yesterday, CNH announced it will be closing its568facility in Burlington, Iowa, and with that closure, it569eliminates about 200 jobs. The plant produced heavy machinery570and ag equipment, and its closure shows how low farm income571ripples across our entire state.572 I do thank the President and his team for delivering new573trade deals and advancing strong policies to support the574biofuel industry, which will help us build new markets. With575that being said, there is still more work ahead to increase576demand.577 At USDA, the BioPreferred program plays a key role in578promoting bio-based products. Many are made from Iowa-grown579crops like soy-based asphalt for roads and corn-based carbon580fiber used in military munitions. Unfortunately, the program is581not currently operating because it has run out of resources.582With renewed backing from Congress and strong USDA leadership,583BioPreferred can expand markets, create jobs, and strengthen584rural communities.585 Senator Slotkin and I introduced the Biomanufacturing and586Jobs Act to modernize the program by increasing purchases of587bio-based products, improving labeling and transparency, and588better coordinating USDA's efforts to grow the bio-based589economy here at home. Mr. Smith, if confirmed, will you commit590to prioritizing improvements to the BioPreferred program and591working with Congress to expand bio-based markets and Federal592Government procurement?593 Mr. Smith. Senator Ernst, thank you for that question, and594thank you for first introducing me to the idea of coming to595Washington, DC, although the first couple months and getting596used to the traffic and the standard of living here, I wondered597about it a few times.598 The question on the biofuel plant or any bioproduct is599using our raw bulk commodities. I mentioned in my opening600comments, any business that we can use--that we can utilize in601the United States that uses that raw agricultural product, we602are not relying on that bushel corn, bushel soybeans, whatever,603to have to be exported to keep prices up. We are developing our604own markets. It has that exponential effect not only of that605industry being in Indiana, Illinois, Iowa, Minnesota, whatever606rural state it happens to be in, but it has that multiplier607effect of creating the domestic demand.608 Absolutely, I would support you in that. I know there is a609lot of exciting products and technology out there that can610utilize our raw bulk products. Anything we can invest in at611Rural Development in the way of grants, loans, or guarantees I612believe, will pay exponentially. Yes, ma'am, I would support613that.614 Senator Ernst. Thank you so much. Just switching gears very615quickly in the time we have left, connectivity, as you616mentioned, in rural America is very, very important, whether it617is our hospitals, our schools, home businesses, small618businesses. We need to make sure that we are able to compete619and thrive with that connectivity.620 Right now, there are more than 133 broadband programs621across the government, including six under USDA Rural622Development. Many of the programs are very duplicative and623could be better coordinated. I have introduced the Streamlining624Rural Broadband Act to consolidate the USDA's Community Connect625grant program into the ReConnect program. Mr. Smith, if626confirmed, will you commit to reviewing USDA's broadband627programs to reduce that duplication and ensure that taxpayer628dollars are targeted to truly connecting our unserved areas and629underserved areas?630 Mr. Smith. [Off mic] resources and whether the resources we631need are directed to USDA, but yes, a commitment to it. That is632why I mentioned it in my opening comments. It would be a633priority.634 Senator Ernst. Thank you. I look forward to voting on your635confirmation.636 Thank you, Mr. Chair.637 Chairman Boozman. Senator Welch.638 Senator Welch. Thank you very much, Mr. Chairman.639 You know, I had a very nice visit with you and really640appreciated the time you took in my office. I share the concern641about markets that Senator Ernst just spoke about. I think I642also explained to you that in Vermont, we are really proud of643the services that we have received from your agency. It has644really made a difference for farmers. We are really worried645about the staffing. I mean, this is something I brought up with646you. In Vermont, we apparently have had the highest cuts of any647regional office, and that is really worrisome to our farmers648because they really think these guys do an excellent job. I do649not know what you can do about that. I think they went way650overboard on it.651 You know, we have the lowest staffing rate of any regional652office in the country. It is operating, Mr. Smith, at 61653percent of capacity, and that was last year before the office654lost 12 more employees. Obviously, that was not anything you655were involved in, but it is something you are going to have to656deal with. What kind of assurance can you give to me on behalf657of our Vermont farmers who really depend on that service that658they are going to get the staffing that is absolutely essential659to doing the job?660 Mr. Smith. Well, we absolutely need to be committed to that661critical mission, Senator. As I told you, I have toured Vermont662with young, beginning, and small program with the Farm Credit663Administration----664 Senator Welch. You know, I get that. Here is the dilemma665because, look, you are coming in. You are not in charge yet.666 Mr. Smith. Yes.667 Senator Welch. You have got a lot of experience running a668major organization, so----669 Mr. Smith. Yes.670 Senator Welch [continuing]. you have got the skills. The671administration made a decision for other reasons, I think672related to their view about spending.673 Mr. Smith. Yes.674 Senator Welch. You seem sympathetic to my concern that675there be adequate staffing.676 Mr. Smith. Yes, sir.677 Senator Welch. You are going to be in a situation where you678may want to do something, but you will have to get authority679from other places in order to do it.680 Mr. Smith. Yes.681 Senator Welch. I guess I am asking you how you navigate682that. I do not have a reservation about your commitment to683doing everything you can, but it is a real practical problem684for anybody who is taking your job. We have not seen any sign685that the administration is particularly concerned about re-686upping adequate staffing in Vermont.687 Mr. Smith. Well, the first thing, and I learned this at688Farm Credit Administration, is get the data. Get the objective689data. Find out just what your staffing issues are because I do690not know right now, Senator.691 Senator Welch. I will work with you on that.692 Mr. Smith. Yes.693 Senator Welch. Maybe I am just putting you on notice that694that is a concern.695 Mr. Smith. Yes.696 Senator Welch. It comes from a place where we really697value----698 Mr. Smith. Yes.699 Senator Welch [continuing]. what you do.700 A second thing is, last year, Congress had allocated $362701million to the Disaster Assistance Fund, and Vermont is702expecting to receive $31 million. We had floods in July of7032024, July of 2023, and actually some floods in July of 2025.704My understanding is that OMB released this funding to USDA in705August, but where is the money? We do not have it in Vermont706yet. Is that something you can help us out with?707 Mr. Smith. Senator, I promise I--if confirmed, I would708check into that and be in----709 Senator Welch. Okay.710 Mr. Smith [continuing]. direct contact with you----711 Senator Welch. Well, I would appreciate that, yes.712 Mr. Smith. Yes, a disaster, you need it----713 Senator Welch. Yes.714 Mr. Smith [continuing]. now.715 Senator Welch. We really do. The Governor, you know, has716been making efforts to get it, and so we are working together717in that effort.718 Mr. Smith. Yes.719 Senator Welch. Also, I am working with my colleague,720Senator Marshall, on the ReConnect program. I know you are721really concerned about rural broadband and know----722 Mr. Smith. Yes.723 Senator Welch [continuing]. its importance, and my724colleagues here in the Committee do as well. One of the things725in that rural broadband program is that it would codify over726100 megabit. Basically, the proposition that we have in that727bill is that you should not get second-rate internet service728just because you are in rural America. What are your thoughts729about that?730 Mr. Smith. I could not agree with you more, Senator. You731know I was the Chairman of the Board, CEO of the Farm Credit732Administration, the regulator for a $600 billion farm credit733system during COVID. There was times--there was some trying734times, but I had to be in contact, in regular contact, and I735had to have the speed necessary to do the video conferences----736 Senator Welch. Well, good.737 Mr. Smith [continuing]. to do everything so----738 Senator Welch. That is what is important.739 Mr. Smith [continuing]. I----740 Senator Welch. I am sorry.741 Mr. Smith. I understand the critical need for good rural742broadband in rural America.743 Senator Welch. Yes, and not second-rate to----744 Mr. Smith. That is correct.745 Senator Welch [continuing]. the fancy cities that, you746know, guys like Grassley prefer, you know.747 [Laughter.]748 Mr. Smith. Okay.749 Senator Welch. Thank you.750 Mr. Smith. You are welcome.751 Chairman Boozman. Senator Grassley.752 Senator Grassley. I am glad your roots are deep in rural753America because you have been in this town long enough to know754that this city is an island surrounded by reality, and I am755glad to have some of your common sense. Been here for a few756years.757 [Laughter.]758 Senator Grassley. You have spoken a little bit about your759work on the farm credit system. I know you know the importance760of federal loan programs, and I think of rural hospitals as an761example in this area, but I am not asking you just about rural762hospitals. How will you use your experience at the Farm Credit763Administration to improve loan functions at the USDA?764 Mr. Smith. Well, Senator, that question is something that765was posed to us early on, to myself and fellow Board Member766Hall, years ago, six, seven, eight years ago. How can we--as we767are regulating these sophisticated financial organizations, we768need to have to--we need to understand it. What we have done in769IT to advance that, as I get to USDA, certainly, that will be770one of the first questions I ask is where are we in FinTech, in771financial technology? Are we able to deliver those programs as772efficiently as possible today in today's world? Hopefully, that773look at the IT, if there is improvement, will help solve, in774part--cannot completely--but in part, the question on775personnel, but it is something we will look at real closely776when I get there, if confirmed.777 Senator Grassley. You have an ethanol plant in your778backyard. I do as well. Iowa is home to 40 of these plants. We779are a national leader in biofuels. Ethanol demand increases780corn demand, supporting farmers. Do you agree that supporting781ethanol--now, I know you cannot make decisions in this area, it782is mostly in EPA, but----783 Mr. Smith. Yes.784 Senator Grassley [continuing]. you can sure be an advocate.785Do you agree that supporting ethanol and other biofuels in turn786support rural communities and that we should expand domestic787production, use, and export markets for ethanol?788 Mr. Smith. I am an advocate, Senator, and I would actively789support that and will continue to support that. Critical,790critical to rural America that we continue to utilize our791biofuels, critical to use our agricultural products and add792value to them. Ethanol is probably the shining example and the793shining success, I might add, in America today.794 Senator Grassley. Yes. Like you are not a policymaker in795this area, but speaking up for Rural Development is very796important. Do not wait for opportunities to come to you. Seek797them out. This town is kind of ignorant about biofuels and798ethanol. Maybe people in this room are not, because this is an799Agriculture Committee room. Just remember that when you hear800people pronounce ethanol, ee-thanol, you are talking to801somebody that does not know much about the program.802 In Rural Economic Development Loan and Grant Program, you803know that is a REDL&G program?804 Mr. Smith. Yes.805 Senator Grassley. You know what I am talking about?806 Mr. Smith. Yes.807 Senator Grassley. It is a critical tool for Iowa rural808electric cooperatives. These loans and grants drive economic809growth in rural communities that would otherwise not have810access to financing for improvement and new projects. Will you811work with my office and appropriators to ensure that the RECs812are supported through the REDL&G program, REAP, and similar813programs?814 Mr. Smith. I will, Senator. I will commit to that.815 Senator Grassley. Yes. I yield back my time, Mr. Chairman.816 Chairman Boozman. Thank you, Senator Grassley.817 Ranking Member Klobuchar.818 Senator Klobuchar. Well, thank you very much, Mr. Chair. I819apologize, Mr. Smith, for being late, and I thank our other820Members for being here. I have had kind of a messed-up day. I821went to the tariff argument at the Supreme Court, which was822very interesting and good, and it went a lot longer than anyone823thought. You cannot exactly jump up in the middle of the824Supreme Court argument and put off the rest of the schedule.825 I do want to welcome you and your wife--there she is--and826your children, your son-in-law, your granddaughter. I also827wanted to recognize Farm Credit Administration Board Chairman828Jeffery Hall. I thank Senator Ernst for introducing you. We had829such a good meeting a while back.830 I just want to point out the importance of Rural831Development right now. If we do come upon a moment where we can832pass some kind of a farm bill, I think that is going to be one833of the big reasons why we should do it.834 I know Senator Welch asked about staff losses in Vermont835that we have seen all over the country. That is something836really important to me. We talked about this, about you working837to try to build up the staff again.838 We also have some issues, as I know you have heard of, with839some of the broadband, electric co-ops, some of the projects840that are going on that we want to make sure happen. Co-ops in841Minnesota supply nearly 1/4 of our electricity. We are one of842the biggest states, as we have talked about, for electric co-843ops, which I love. They serve almost two million Minnesotans. I844will hope that you will work with me on those projects.845 As we discussed last week, we also care a lot about high-846speed internet, both out of the Commerce Committee flow of847money and then also out of USDA, discussed rural healthcare,848childcare, markets, and the like.849 I just have a few questions here. The first is we have850very--most of us on this Committee have worked across the aisle851to improve broadband access. The ReConnect Loan and Grant852Program has delivered high-quality internet to rural areas,853often partnering with electric and telephone co-ops. As Under854Secretary, you will have a great deal of discretion over855broadband funds at the USDA. Do you believe this program should856prioritize speeds like those available in urban areas? How do857you plan to ensure these programs are accessible to rural858electric co-ops and other small rural providers?859 Mr. Smith. Thanks for the question, Senator. Yes, I do860think it should have the same priority as urban broadband. We861should have the same access to connectivity. It is the key for862rural America to stay connected with the rest of the country,863with the world. We have had success with ReConnect. The main864thing we are going to look at is do we have the resources for865ReConnect, and that is entirely up to you in Congress whether--866where those resources are allocated. I can tell you that in867Rural Development, we have that footprint in rural America that868I think we can deliver.869 Senator Klobuchar. There are a lot of projects out there,870already-awarded energy projects that have been frozen, and I871hope that you will work with us to look at those projects. Some872of them, interestingly enough, in Minnesota involve neighboring873States of North Dakota and South Dakota, I think Iowa. Some of874these projects, if you would be willing to look with us at875them, they involve the electric grid, they involve all kinds of876things that both Democrat and Republican Senators are877interested in. When I looked at the list, I am like, whoa, for878the ones that were frozen in Minnesota. I hope you will be879willing to look at those with us.880 Mr. Smith. We should all work together for that, yes.881 Senator Klobuchar. Okay. Very good. High blend biofuel882infrastructure, Senator Ernst and I have worked on this at883length and been successful in passing some things into law. Do884you commit to reopening funding opportunities for high blend885biofuel infrastructure and making sure the funds are spent on886that?887 Mr. Smith. Yes, I do.888 Senator Klobuchar. Okay. That is wonderful. The housing,889what are your affordable housing preservation strategies to890keep existing properties in USDA programs?891 Mr. Smith. One thing, I think, Senator, that has become892obvious to me, I had no idea the breadth and scope of Rural893Development before I started looking into it. I did not realize894how much they are involved in housing. Now, we probably cannot895cure the problems of the high cost of building a new home or896the high cost of major repairs, but we do offer grants, we do897offer loans and loan guarantees to those parties that qualify898at subsidized interest rates, so it is one step closer to899affordability of rural housing.900 One thing I do hear from some states is the whole901regulatory process, the permitting and the licensing of the902contractors and all that becomes almost prohibitive and does903add to the cost--can add to the cost of that house, maybe in a904town of 1,200, which does not make sense in fitting in with905possibly the federal regs. I would strongly encourage looking906at somewhat of a deregulative structure to make sure that those907homes can be built in the most efficient manner possible.908 The other thing, though, Senator, I would like to talk909about is that 88 programs. I have lived in a rural community910almost my whole life, not realizing the depth and scope of911those programs. I think our visibility needs to be improved in912rural America. I have talked to my Deputy Under Secretary, Neal913Robbins, about that. He comes from the publication business and914has some ideas on where we can get that word out, that there915are programs in Rural Development--subsidized programs that916allow low- and moderate-income people to invest in their dream917of living in their own home.918 Senator Klobuchar. Okay. Well, thank you very much. I see919my colleagues are here to ask questions. I will save some time920on the clock here. Thank you.921 Mr. Smith. Thank you.922 Chairman Boozman. Thank you.923 Senator Hyde-Smith.924 Senator Hyde-Smith. Thank you, Mr. Chairman, and thank you,925Mr. Smith, for being here. Good to see you again. We had a nice926visit before, and I appreciate all that you are willing to do927for us.928 There are three things that I want to talk about today, and929the first one is expanding some markets and opportunities for930U.S. forestry timber products and improving rural water and931wastewater infrastructure, and ensuring proper access to932healthcare in rural America.933 In Mississippi, we have over 19 million acres of forest934land, and we have 130,000 forest landowners, very important in935Mississippi. The activity generates 84,000 jobs and $4.4936billion in income annually. We are often referred to as the937wood basket, but right now, the basket is full, and the bottom938line is we need to expand existing markets and create new ones939for our timber and our wood residuals.940 My colleagues and I are exploring ways to utilize existing941USDA programs to support renewable energy systems that will942strengthen rural communities through timber, through biomass,943and there is really a significant opportunity there for us to944encourage sustainable forest management practices and keeping945our forests working to support local economics because it is a946driving engine there, build markets that will ultimately serve947our landowners and our rural businesses. Obviously, there will948be challenges and costs to all of that.949 My question for you is, will you work with me going forward950to strengthen these programs within USDA and Rural951Development's mission area to support the forestry sector as we952seek to create new and expanded markets for American timber and953biomass?954 Mr. Smith. Well, Senator, thank you for that question.955Regardless whether it is corn, cattle, soybeans, or timber,956whatever business that Rural Development can support that adds957value to that and adds a new market, Rural Development should958be involved, should and could. Certainly, in the timber959industry, I confess, I know it was part of our--part of the960loan portfolio at Farm Credit, but I do not know a lot about961it, so I would look forward to hearing more about it and962looking forward to hearing about the industries that you think963need support. I would say to your staff, make sure you are in964contact with our staff and programs that would fit, because we965need anything that adds markets for our domestic products, we966need to support.967 Senator Hyde-Smith. Well, thank you very much for that, and968I do have some ideas that I want to get with you on.969 Mr. Smith. Very good.970 Senator Hyde-Smith. In our water systems across971Mississippi, we have more than 1,000 water systems. Our towns972and rural water associations are often understaffed, and they973are working hard to keep the taps running and the wastewater974safely disposed of. Many towns have infrastructure needs that975far exceed their financial capabilities, which often requires976rate increases that are insufficient or not feasible to comply977with federal environmental regulations.978 The communities that need assistance most often do not have979the financial resources to hire an experienced grant writer or980provide technical expertise needed to apply for the various981federal water and wastewater assistance programs. If confirmed,982will you be mindful of the unique water-related challenges983faced by many of our rural communities? Will you commit to984working with me to eliminate as much unnecessary red tape as985possible?986 Mr. Smith. Well, Rural Development has always played a key987role in delivering clean, safe water to rural America, and988anything I could do to influence and encourage that, I will.989 Senator Hyde-Smith. Great. Thank you. Maybe get to my third990one, ensuring proper access to healthcare in rural America. We991farm and we have farming accidents and we use a lot of rural992healthcare, but nearly half of all rural hospitals operate at a993loss, and many have had to close their doors or discontinue994certain services to stay afloat. Mississippi is a rural state,995and it is critical that we maintain access to care,996particularly those living in our rural communities.997 Rural Development administers the USDA Technical Assistance998Program for rural hospitals, which has been a lifeline to999helping hospitals manage their finances, and to prevent1000defaults on USDA loans, and to just simply keep their doors1001open. Through this program, Jasper General Hospital in Bay1002Springs, Mississippi, received technical assistance that really1003helped. It improved its financial performance, and it enhanced1004access to healthcare services in rural underserved areas.1005 Since 2018, almost 120 rural hospitals across the country1006have participated in the program, with each project identifying1007significant ways to reduce costs and establish a more1008financially stable path forward. Would you please speak to the1009importance of this program for rural hospitals and how you plan1010to maintain and grow the program, which has proven effective in1011helping rural hospitals?1012 Mr. Smith. Well, Senator, thank you for that question.1013Obviously, I stated earlier I recognize the importance of the1014rural hospital, and that is what kept groceries on the table1015and paid our electric bill for early years of our marriage, as1016my wife is an RN and retired now, proudly, but now she supports1017me.1018 [Laughter.]1019 Mr. Smith. The Rural Development makes loans, grants, and1020guaranteed loans to build facilities. We--we are not involved1021in the operational lending. It is a whole different area,1022different from investing in facilities. You mentioned something1023that I thought was important to some of those rural hospitals1024is that they got technical assistance. I think that is where RD1025can help. Again, getting back--and I hate to be repetitive, but1026for something you feel strongly about and that connectivity of1027rural areas, that is so important.1028 In order for those hospitals--let's say it is just an1029emergent care facility out 200 miles from a major hospital, a1030farmer comes in with a major accident, major injury, that he1031can get on the internet to one of the finest hospitals in the1032country and understand what to do until that patient can be1033transferred. That, to me, is things we need to investigate in1034rural America, and that is how Rural Development can help in1035that technology and that assistance in giving you the tools for1036that.1037 Does that answer your question, Senator?1038 Senator Hyde-Smith. Absolutely. Very, very critical. Again,1039I appreciate what you are willing to do for us, and I look1040forward to supporting you.1041 Mr. Smith. You know, Senator, do you recall our1042conversation last week that I thought was--I mean, we talked1043about attracting doctors and professionals to rural areas,1044which is important and difficult. Number one, you have to have1045that quality of life to attract them in the first place. I know1046that Rural Development had a grant down in your state, and they1047were not medical doctors, they were veterinarians, which is1048very important to you and I's business, right? A grant to1049veterinarian college at Mississippi State to pay back tuition1050for students that stayed in the state and practiced large1051animal practice in the state, and that was a Rural Development1052grant. That is another way that we can encourage the type of1053services that we need so much in rural America.1054 Senator Hyde-Smith. Yes, you are so right because there is1055a shortage.1056 Mr. Smith. Yes.1057 Senator Hyde-Smith. No doubt.1058 Mr. Smith. Yes, ma'am.1059 Senator Hyde-Smith. Thank you.1060 Mr. Smith. Yes, ma'am.1061 Chairman Boozman. Thank you.1062 Senator Lujan.1063 Senator Lujan. Thank you. Thank you, Chairman.1064 Mr. Smith, do you commit to follow the law?1065 Mr. Smith. I am sorry, the question?1066 Senator Lujan. Do you commit to follow the law?1067 Mr. Smith. Yes, sir, of course.1068 Senator Lujan. Do you commit to follow court orders?1069 Mr. Smith. Of course.1070 Senator Lujan. Are you a man that keeps your word?1071 Mr. Smith. Am I what, sir?1072 Senator Lujan. A man that keeps your word?1073 Mr. Smith. I believe so sir.1074 Senator Lujan. I appreciate that, sir.1075 Mr. Smith. I would not be here if I was not.1076 Senator Lujan. I appreciate that. I grew up on a small farm1077myself. I think there is a lot that you learn growing up in a1078small community.1079 Mr. Smith. Sure.1080 Senator Lujan. My colleagues get sick and tired of me1081talking about how my father would leave my rubber boots and my1082shovel outside the door when I would come home to visit, and1083that meant it was time to clean the barns.1084 Mr. Smith. Okay.1085 Senator Lujan. Now, people that giggle at this are the ones1086that have done it because----1087 Mr. Smith. Yes.1088 Senator Lujan.--you know it is not the top layer that1089builds character, it is the second layer----1090 Mr. Smith. Yes.1091 Senator Lujan.--that gets really ripe.1092 Mr. Smith. Yes. I have wielded that shovel many times.1093 Senator Lujan. I wish more of us did it, sir.1094 [Laughter.]1095 Senator Lujan. Now, with that being said, Mr. Smith, you1096know, there is a difference of opinion, I think, with my1097colleagues and I on different sides of the aisle right now, and1098all that is going on with the President. The reason I asked1099about the court order is, as you know, at the end of last week,1100the courts had to say that the President had to roll out the1101SNAP funding because the President said he did not want to do1102it. I mean, heck, even Monday, after he said he would, he said1103he would not. Then his staff then correctly said, no, no, no,1104we are going to roll it out, but there is still a question1105about it.1106 Now, the reason I bring that up, even though that is not1107your responsibility, sir, is one of the programs the Trump1108Administration canceled was a program to support local farmers1109and ranchers with food banks. It was called the Local Food1110Purchase Assistance Cooperative Agreement and the Local Food1111for School Cooperative Agreement, about a billion bucks. As you1112know, these agreements get entered into with local farmers and1113ranchers, and then they change how they are going to grow for1114the next year, what they are going to raise for the next year.1115They do not look for other customers because they know that1116they have one, and it got cut.1117 I certainly hope that when you are at the table, Mr. Smith,1118that you stand up for the farmers and ranchers where we grew1119up, where you grew up, and just make sure that programs that1120help them, that we find a way to do it. Now, if there needs to1121be changes or adjustments based on leanings one way or the1122other, I am fine with that. My Republican colleagues in the1123majority, they are in charge. I get that. The program swings1124that way. In the end, farmers and ranchers should not get hurt1125arbitrarily because someone just had a whim about something, so1126I hope that is something we can agree on.1127 One of the questions that I also have is, you know, in the1128healthcare space, I appreciate these questions being asked. One1129of the concerns that I have is in these rural health clinics, I1130do not know, 15 to 35 percent of the revenue comes from1131Medicaid beneficiaries. Earlier this year, my Republican1132colleagues passed a piece of legislation the President signed1133into law that takes almost a trillion bucks out of the program.1134That does not just hurt people. That is going to close rural1135clinics.1136 Three years ago, I survived a stroke. Now, I always joke,1137this is what a stroke survivor looks like. If you have access1138to healthcare, if you get good doctors, if you have faith----1139 Mr. Smith. Yes.1140 Senator Lujan.--if you have good family, people that help1141you understand, you have to have a positive way of getting1142better. I am very concerned with the way that things have been1143going with OMB and Mr. Vought, that a lot of these grants and1144things, they have just been getting stalled. Again, you know,1145not necessarily a question, sir. I just hope that is another1146area when, at the table because you will be in the room, you1147will be at the table with the Secretary and everyone else, that1148we say, hey, we have got to find a way to keep these rural1149clinics open so that when a farmer or someone gets cut by an1150implement or they are pulling out the bandsaw, man, and1151something happens and you have got to get in quick to be able1152to reconnect, that we get that done. I hope that we can find1153some time there.1154 Now, in the last minute, I want to talk about electricity1155prices.1156 Mr. Smith. Okay.1157 Senator Lujan. You are aware of what rural electric co-ops1158are, Mr. Smith?1159 Mr. Smith. Yes.1160 Senator Lujan. You are aware of what G&Ts are, the1161generation and transmission components are?1162 Mr. Smith. Yes.1163 Senator Lujan. For everyone that does not, the G&Ts are the1164entities that actually generate the power, and they move the1165transmission to the smaller electric co-ops, and those are the1166ones that are called the distribution co-ops. Sorry for talking1167about it. I served on the Public Utility Commission before I1168came here, and I grew up as a member of a co-op. That is where1169my electricity comes from today.1170 Mr. Smith. Yes.1171 Senator Lujan. One of the questions that was asked earlier,1172I think by Senator Klobuchar, she asked about some of these1173grants that were canceled to our G&Ts across the country. There1174is one that was canceled to a G&T that matters to us in New1175Mexico that resides in Colorado called Tri-State.1176 What are your thoughts about the cancellation of these1177contracts that supported generation at these electric co-ops,1178which would arguably lower power for rural families that1179benefit from being a member of an electric co-op?1180 Mr. Smith. Well, Senator, obviously, I am not there, so I1181am not familiar with that particular case. I----1182 Senator Lujan. Let me ask the question this way, Mr. Smith.1183Is that something that you will commit to look into?1184Understanding that it is a Republican administration, they may1185have preferences over one generation or another----1186 Mr. Smith. Yes.1187 Senator Lujan.--but if a local generation, G&T, which is1188made up of trustees from electric co-opinions----1189 Mr. Smith. Yes.1190 Senator Lujan.--it is not us. It is not partisan. As a1191matter of fact, these are real conservative folks for the most1192part.1193 Mr. Smith. Yes.1194 Senator Lujan. That if they choose that they want to do1195some generation in a certain area, that is something I would1196hope that we would all respect as well. Is this something that1197you will commit just to look into and see if there is a better1198way that we can go forward in looking at G&Ts across the1199country to support electric rural co-ops?1200 Mr. Smith. I think that is part of the job, Senator.1201 Senator Lujan. I appreciate that, sir.1202 I appreciate it, Mr. Chairman. Thank you all so much.1203 Chairman Boozman. Senator Hoeven.1204 Senator Hoeven. Thank you, Mr. Chairman.1205 Mr. Smith, thanks for coming in and visiting with me1206earlier, and I appreciate you being here today. Of course,1207Rural Development is vital in rural America in so many ways, so1208this is a really important position.1209 One of the things that we are working on in North Dakota is1210what we call Crack the Code 2.0. Crack the Code 1.0 was where1211we worked on developing directional drilling and hydraulic1212fracturing to produce oil from shale. Traditionally, that was1213not economically viable. Back during the time I was Governor,1214actually, we worked with a lot of innovative companies that1215came in and figured out how to do that.1216 Now we are working on Crack the Code 2.0, which is actually1217trying to connect our coal-fired electric plants with the oil1218field, wherein we will take the CO2 off the coal1219plants, and then we will put it downhole for enhanced oil1220recovery. We think we can double the life of those coal plants1221at a time when we badly need electricity, and we can double the1222production out of the shale. Just in our state, that is over1223five billion barrels of oil that we have gotten so far. It has1224huge implications for energy not only for our state, but, you1225know, for the country, because if we can do it successfully in1226North Dakota, they will do it in the Permian Basin, in the1227shale play, in the Marcellus, in Ohio and Pennsylvania, and so1228on and so forth.1229 The cooperatives are an important part of this effort, and1230Rural Development is an important part of this effort because1231of your credit programs. Talk to me about your commitment to1232make sure that with companies like Minn Kota, which is a1233cooperative in Minnesota and North Dakota, their project,1234Tundra, is heavily involved in this, and your credit programs1235play a big role, and I want to know if you support and how you1236will support that effort.1237 Mr. Smith. Well, thank you, Senator, for that question. It1238would appear that the technology you are describing enhances1239more efficient oil production, cheaper oil that I think we all1240agree is good for the American consumer, and it benefits rural1241America, which is what we are all about at Rural Development. I1242think anything that reduces the dependency on foreign oil,1243encourages domestic production is something that we should look1244at strongly.1245 Senator Hoeven. As you know, in rural America, I mean,1246cooperatives have been incredibly important, and your credit1247programs are incredibly important.1248 Another area is hospitals. In the One Big Beautiful Bill,1249we included $50 billion to help our rural hospitals. One of the1250programs that we have used in North Dakota for our rural1251hospitals is the Rural Development Program for them to build1252new facilities, and combining that with the critical access1253reimbursement has enabled us to put first-class critical access1254hospitals out there in rural North Dakota, and they are doing1255well. They are serving their customers. Their customers tell me1256they would rather go to their hospital in their small community1257than go into the larger communities. It really works.1258 Talk to me about the credit programs, and then also for our1259farmers, the credit programs are really important as well. One1260of the things we have really got to do more on is helping with1261rural housing. It is a big need out there. Talk to me about the1262healthcare, the hospitals, you know, some of the ventures for1263rural businesses, and then also, you know, for our farmers.1264Those programs, how are you going to, you know, use and1265expand--and for our livestock guys, for example, for creating1266more opportunities with small processing and that kind of plans1267for options, talk to me about what you can do there because1268that is a powerful range of tools that you have for all those1269uses.1270 Mr. Smith. Let me take a breath here, Senator, and focus on1271which question I want to answer first.1272 Senator Hoeven. Yes, exactly. Joni has been bragging you up1273now, so we have to get----1274 [Laughter.]1275 Mr. Smith. Let me talk, first of all, on your comments on1276healthcare and the success you have had in North Dakota. The--1277that is great to hear that critical-access hospitals are having1278a great deal of success and acceptance among their residents,1279and I would guess part of that is the personalized care.1280 Senator Hoeven. Yes.1281 Mr. Smith. They are not waiting in line for days or weeks1282or months. I know that--we had a close relative that was having1283some health issues, heart issues, and she could not get an1284appointment to get in and see a doctor for evaluation for two1285months in the city, and yet she clearly had some issues. At1286least at that critical care facility, you had somebody to look1287at her, number one, evaluate, and then, if need be, receive1288technical assistance from a larger facility, maybe a long ways1289away, but at least you are getting some--that patient is1290getting care right away. It does not have to be a huge1291facility. It does not have to be a $100 million facility to do1292that.1293 I think what you are landing on is maybe a model that maybe1294we could take to other areas of the country. I know I had a1295long conversation with Senator Marshall in Kansas that had much1296the same type of model, and that is something that I think1297Rural Development should be fluent in, be able to discuss, and1298be able to encourage to the different state directors.1299 Senator Hoeven. That model works.1300 Mr. Smith. Yes.1301 Senator Hoeven. You could have a real impact out there.1302 Mr. Smith. Well, sharing best practices is something that1303we encouraged all the time on my position on the board with the1304Farm Credit Administration. That would be exactly what we would1305be looking at.1306 As far as businesses, any business that supports the rural1307economy, obviously, we have got to be involved in. I mentioned1308earlier livestock, and how we have seen just a real explosion1309of branded farm- or ranch-to-consumer products in the next 101310years. You cannot turn on the television without seeing a nice1311model of cattle, maybe in North Dakota, and then a nice steak1312sitting there----1313 Senator Hoeven. Probably in Arkansas.1314 [Laughter.]1315 Senator Hoeven. Don't you think? Probably in Arkansas.1316 [Laughter.]1317 Mr. Smith. I am sure Chairman Boozman would agree with1318that.1319 Senator Hoeven. No, we have them in North Dakota too.1320 Mr. Smith. Part of that is you cannot go to our huge1321packing plants and get the kind of service you need for that1322specialized consumer care, and that is where--and I think we1323have had a great--a good success, maybe just a start, but a1324good success in Rural Development in supporting those1325livestock--that livestock industry and those endeavors. Again,1326it is value-added----1327 Senator Hoeven. Right on.1328 Mr. Smith [continuing]. because those producers, I am1329hoping--and I think get a good premium for their hard work, but1330it takes marketing and specialized plants to be able to turn1331out that product.1332 Senator Hoeven. Mr. Chairman, I really appreciate the1333answers, and I think it is exciting opportunities that you can1334be part of out there, and I think you nailed it in how you1335talked about it.1336 Mr. Smith. Thank you, Senator. Thank you for the questions.1337 Chairman Boozman. Thank you again, Mr. Smith, for appearing1338before the Committee. I think from the questions you could tell1339that there is a lot of interest in this particular position,1340how important it is for rural America, and for our Nation.1341 I also want to thank Members for their participation today1342in this important hearing, and, as always, our staffs do a1343tremendous job in making it happen. The record will remain open1344for two business days.1345 Today's hearing is adjourned.1346 [Whereupon, at 4:11 p.m., the Committee was adjourned.]13471348=======================================================================13491350 A P P E N D I X13511352 November 5, 202513531354=======================================================================13551356 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]13571358=======================================================================13591360 QUESTIONS AND ANSWERS13611362 November 5, 202513631364=======================================================================13651366 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]13671368 [all]