Hearings to examine increasing domestic consumption of United States-grown agricultural products.
Meeting•Senate Agriculture, Nutrition, and Forestry•Mar 10, 2026 · 3:00 PM
Summary
Senate Agriculture, Nutrition, and Forestry held a meeting on Mar 10, 2026 at 3:00 PM in Dirksen Senate Office Building, Room 106.
Record
The meeting has its transcript on the record.
Transcript
The transcript runs to 2,404 lines and 133,198 characters, as the Government Publishing Office printed it.
1[Senate Hearing 119-328]2[From the U.S. Government Publishing Office]34 S. Hrg. 119-32856 INCREASING DOMESTIC CONSUMPTION OF7 U.S.-GROWN AGRICULTURAL PRODUCTS8=======================================================================910 HEARING1112 BEFORE THE1314 COMMITTEE ON AGRICULTURE,15 NUTRITION, AND FORESTRY1617 UNITED STATES SENATE1819 ONE HUNDRED NINETEENTH CONGRESS2021 SECOND SESSION2223 __________2425 March 10, 20262627 __________2829 Printed for the use of the30 Committee on Agriculture, Nutrition, and Forestry3132[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]3334 Available on http://www.govinfo.gov/3536 __________3738 U.S. GOVERNMENT PUBLISHING OFFICE3963-068 PDF WASHINGTON : 202640=======================================================================4142 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 Tuesday, March 10, 20266869 Page7071Hearing:7273Increasing Domestic Consumption of U.S.-Grown Agricultural74 Products....................................................... 17576 ----------7778 STATEMENTS PRESENTED BY SENATORS7980Boozman, Hon. John, U.S. Senator from the State of Arkansas...... 181Klobuchar, Hon. Amy, U.S. Senator from the State of Minnesota.... 28283 WITNESS8485Duvall, Zippy, President, American Farm Bureau Federation, Greene86 County, Georgia................................................ 687Perdue, Matt, President, North Dakota Farmers Union, Ray, North88 Dakota......................................................... 789Reed, Nathan, Chairman, National Cotton Council, Marianna,90 Arkansas....................................................... 991Bower, Jed, President, National Corn Growers Association,92 Washington Court House, Ohio................................... 1093Burns, Cathy, CEO, International Fresh Produce Association,94 Washington, DC................................................. 1195Metzger, Scott, President, American Soybean Association,96 Williamsport, Ohio............................................. 1397 ----------9899 APPENDIX100101Prepared Statements:102 Duvall, Zippy................................................ 42103 Perdue, Matt................................................. 63104 Reed, Nathan................................................. 74105 Bower, Jed................................................... 79106 Burns, Cathy................................................. 86107 Metzger, Scott............................................... 91108109Document(s) Submitted for the Record:110Hyde-Smith, Hon. Cindy:111 Buying American Cotton Act Coalition Letter.................. 106112Fetterman, Hon. John:113 Bill S. 3068 to require original equipment manufacturers to114 make available certain documentation, parts, software, and115 tools with respect to farm equipment,and for other purposes 111116 Brief of Civil Action No. 25-11816-IT........................ 126117 USDA Letter to Secretary Rollins............................. 148118119Question and Answer:120Duvall, Zippy:121 Written response to questions from Hon. Raphael Warnock...... 166122 Written response to questions from Hon. Adam Schiff.......... 167123Perdue, Matt:124 Written response to questions from Hon. John Fetterman....... 169125 Written response to questions from Hon. Adam Schiff.......... 170126Reed, Nathan:127 Written response to questions from Hon. Raphael Warnock...... 172128 Written response to questions from Hon. Adam Schiff.......... 172129Bower, Jed:130 Written response to questions from Hon. Adam Schiff.......... 174131Burns, Cathy:132 Written response to questions from Hon. Raphael Warnock...... 176133 Written response to questions from Hon. John Fetterman....... 176134 Written response to questions from Hon. Adam Schiff.......... 177135Metzger, Scott:136 Written response to questions from Hon. Adam Schiff.......... 184137138 INCREASING DOMESTIC CONSUMPTION OF U.S.-GROWN AGRICULTURAL PRODUCTS139140 ----------141142 TUESDAY, MARCH 10, 2026143144 U.S. Senate145 Committee on Agriculture, Nutrition, and Forestry146 Washington, DC.147 The Committee met, pursuant to notice, at 3:02 p.m., in148Room 106, Dirksen Senate Office Building, Hon. John Boozman,149Chairman of the Committee, presiding.150 Present: Senators Boozman [presiding], Hoeven, Ernst, Hyde-151Smith, Marshall, Tuberville, Grassley, Fischer, Klobuchar,152Bennet, Smith, Durbin, Booker, Lujan, Warnock, Fetterman, and153Slotkin.154 Also present: Senator Husted.155156 STATEMENT OF HON. BOOZMAN, U.S. SENATOR FROM THE STATE OF157 ARKANSAS, CHAIRMAN, U.S. COMMITTEE ON AGRICULTURE, NUTRITION,158 AND FORESTRY159160 Chairman Boozman. Good afternoon, and it is my privilege to161call the meeting to order. I thank my colleagues for joining us162today.163 I also want to thank our witnesses for being here. Many of164you farm, and we all know that it is an important time of the165year for you to be on the farm as you prepare to plant your166next crop. Today's hearing comes at a time of great financial167stress for America's farmers. If you are putting something in168the ground, you are probably losing money. It does not matter169what you are planting or where you are planting it; no row crop170is currently profitable.171 In my home State of Arkansas, the last three years have172been absolutely punishing, and again, that goes across the173board with our row crops and all of agriculture, except for174cattle. Arkansas now holds the unfortunate distinction of175leading the Nation in Chapter 12 farm bankruptcies, a sobering176statistic. I remain committed with my colleague, Senator Hoeven177from North Dakota, and literally everyone on the Committee, to178pursue additional financial assistance for our farmers to179lengthen and widen the Farmer Bridge Assistance Program that180President Trump announced in December, which is so, so very181important.182 The recent history of high input costs, high labor costs,183and high interest rates, coupled with lower prices and184significant trade headwinds for certain commodities, should185give us all good reason to think about what the future of186agriculture in the United States should look like. It is clear187that China is not a dependable trading partner and that Brazil188is doing everything that it can do to take over the189agricultural markets that, traditionally, have been dominated190by the United States. I commend the Administration for pursuing191new markets and holding our trading partners accountable.192Agricultural trade must remain a high priority, one of the193highest priorities for the United States. Expanding market194access and developing new trading partners is crucial to the195success of American producers and our rural communities.196However, our recent experiences made me think about how we can197build more robust domestic markets that will not subject our198producers to the whims of foreign governments. This hearing is199intended to begin that conversation.200 My hope for today is that we start exploring new domestic201opportunities for our farmers. What are the impediments202limiting domestic consumption? What incentives would be203helpful? Are there legal, regulatory, or procedural obstacles204at the federal, state, or local level that need to be205addressed? Is the Tax Code structured in a way to make206American-grown commodities more attractive? Do we have the207necessary processing infrastructure? In the coming weeks and208months, the Committee will continue to explore this topic. I209intend on discussing this topic with processors, manufacturers,210and retailers as well. Domestic market development will remain211a priority of this Committee as long as I am Chairman.212 Again, I want to thank my colleagues and our witnesses for213being here today, and now I recognize my friend and colleague,214Senator Klobuchar.215216 STATEMENT OF HON. KLOBUCHAR, U.S. SENATOR FROM THE STATE OF217 MINNESOTA218219 Senator Klobuchar. Well, thank you so much, Mr. Chairman,220and thank you for holding this important hearing this221afternoon.222 Whether a farmer grows corn and soybeans, or blueberries223and apples, our farmers need domestic marketing opportunities224to stimulate growth throughout our country. They need it now225more than ever, as you pointed out, Mr. Chairman. A few ideas I226would toss out there. One is E15, making that permanent and227year-round. There is bipartisan support for this, and I want to228thank Senator Fischer and Duckworth, and so many others who229have worked on this issue for we need to get it done. A230bipartisan farm bill seems to me a vehicle where we can get it231done, but there may be others as well.232 We can also expand domestic opportunities by investing in233local markets by purchasing fresh produce and meat from small-234and mid-sized farmers, we can support local supply chains and235families. I was frustrated to see the administration cancel the236popular Local Food Purchasing Assistance Program last year, and237I hope that we can reinstate this investment. We can also238invest in organic agriculture, expand support for rural239businesses, and invest in research to develop new revenue240streams for farmers. I have long supported bipartisan efforts241to grow new domestic production of sustainable aviation fuel,242bio-based products, and industrial hemp. There is a lot more we243can do on hemp, that is a subject for another day, but this is244a growing market that we should be looking at and not going245backward on. These opportunities provide farmers with246innovative sources of revenue amidst a difficult farm economy.247It is no secret that we are exploring these domestic marketing248opportunities. We would be anyway, but the chaos caused by our249tariff and trade policy is causing many, many issues.250 I appreciate my colleagues on both sides of the aisle who251have joined me in pushing back on the tariffs. The impacts of252the tariffs, record-high input costs, and the need to invest in253domestic markets are top of mind for Minnesota farmers. I254recently held two roundtables, one in Southern Minnesota, one255in Breckenridge in Western Minnesota, where I heard directly256about the uncertainty facing our farmers and ranchers, and that257is the hardest thing for so many of them. A tariff changes, it258goes up, it goes down. They do not know what to plant, they do259not know what to invest in, and then, in the end, it gets260harder and harder.261 The best thing we can do, in addition to having less of262these tariffs and have them much more targeted, using a chisel263or a hammer instead of a sledgehammer, would be good, and the264second thing would be a bipartisan five-year farm bill that265meets the moment. Farmers need reliable access to credit,266modernized conservation programs, and new uses for their267products. These ideas could be included in a bipartisan farm268bill. At the same time our farmers and ranchers are struggling,269we also have families struggling. Paychecks are stretched270because of rising grocery and health care costs, and now, gas271costs, just as our anti-hunger programs face the steepest cuts272in a generation. We must do something here, and I did not like273the way these state shifts went on SNAP. I understand that our274colleagues would engage in some cuts to SNAP this last summer,275and I am hoping we can get to a better place.276 I think it is really important for people to know that,277because of the way this was structured, with the highest error278rate states getting off scot-free, 10 of them, and the lowest279error rate states, of course, not having to pay, there is a280whole bunch of us in the middle, as in the entire Midwest. They281are going to see enormous cost shifts to our states and in some282states, counties. That is why the bipartisan National Governors283Association--I am not talking about the Democratic Governors284Association--the National Governors Association have come out285with a proposal to delay these cost shifts. The National286Conference of State Legislatures and other state and local287officials, we should give the states the time to get their288error rates down, and we should delay these cost shifts, and we289certainly should not be benefiting high error rate states over290ones that have lower error rates.291 I hope as we look at a farm bill, and I know there is work292being done over in the House, that we include some corrections293to what happened last summer. Thank you, Mr. Chairman, and I294look forward to today's discussion.295 Chairman Boozman. Thank you. Today, we are joined by our296colleague from Ohio, Senator John Husted, who will introduce297two of our witnesses. I did not realize that Ohio was taking298over the meeting.299 [Laughter.]300 Chairman Boozman. You are well represented. Thank you for301being here, and I know you are like everybody else is,302incredibly busy, but thanks for taking time to come over.303 Senator Husted. Thank you, Mr. Chairman, to you and the304Ranking Member, and the Committee Members, thanks for allowing305me to introduce two Ohioans today.306 First, I would like to introduce Scott Metzger, the307president of the American Soybean Association in Ohio. I would308just like to say that we grow products that feed and fuel309America, and so I am proud to introduce Scott today to provide310insight on how we can increase domestic consumption of these311homegrown products. Mr. Metzger is a sixth-generation farmer312from Williamsport, Ohio, where he grows soybeans, corn, and313wheat. He is also a member of the Ohio Farm Bureau, Ohio Corn &314Wheat Growers Association. Mr. Metzger is the--Mr. Metzger's315leadership is in guiding one of the largest farm organizations316in the country is a testament to Ohio's agricultural impact on317our great farm economy. I want to thank you for joining us318today, Mr. Metzger, and we are looking forward to hearing your319testimony.320 Then, second, I want to introduce Mr. Jed Bower. Jed is--he321raises corn and soybeans with his wife, Emily, and their322children, Ethan and Emma, on the fifth-generation farm in323Washington Courthouse, Ohio. In addition to advancing corn324growers' interests at the national level as the president of325the National Corn Growers Association, Mr. Bower previously326served as the president of the Ohio Corn & Wheat Growers327Association, and continues to serve as an active member of328NCGA's farm-led leadership Committees. Ohio's farmers drive329economic growth and ensure our state remains a leader in330agriculture, and Mr. Bower's leadership with the National Corn331Growers Association underscores the role Ohio farmers play in332in shaping the agricultural landscape across our country, and I333appreciate Mr. Bower coming to testify today and to the334Committee Members.335 I can tell you, both of these gentlemen are highly336respected in our state, and farmers across our state and across337the country rely on them for their role in these organizations,338and thank you for allowing them to appear before the Committee339today.340 Chairman Boozman. Thank you, John, and again, thank you for341taking the time to come over.342 I am pleased to introduce Mr. Zippy Duvall. Mr. Duvall is a343third-generation farmer from Georgia, where he and his son344raise beef cattle, broiler chickens, and grow hay. A true345advocate for farmers and ranchers nationwide, Mr. Duvall has346led the American Farm Bureau Federation as president since3472016. Mr. Duvall has a personal understanding of how several348factors before this Committee may impact the future of American349agriculture, and I look forward to hearing his testimony.350Welcome back to the Committee, and you have been here several351times, and we really do appreciate your leadership.352 Next, Senator Hoeven is going to introduce Mr. Perdue.353 Senator Hoeven. Thank you, Mr. Chairman, and thanks to both354you and the Ranking Member for calling this hearing today. It355is my pleasure to introduce Matt Perdue, who is the president356of the Farmers Union in North Dakota. We have an incredibly357strong farmers union organization in North Dakota, more than35870,000 members, and Matt is the youngest person to ever be359elected president of that great group. We know both Farmers360Union, and, of course, because Zippy is here, Farm Bureau. Both361are just powerhouse organizations for our farmers and ranchers,362and so important, particularly at these times where our guys363are facing a hard go of it. Your advocacy is just incredibly364important.365 Matt, in addition to leading North Dakota Farmers Union, is366a farmer himself and a lifelong farmer. Grew up on the farm and367now is farming with his family. They farm in Northwest North368Dakota, where I am from, Northwest North Dakota. We love that369part of our country and our state. On his farm, they raise370durum wheat, canola, lentils, soybeans. You know, he reflects371what we need to get more of is younger farmers into farming,372and so, that is why it is so important that you and the Ranking373Member are having this hearing today, because it is about374markets.375 Our guys want markets here at home, around the world, and376anything and everything we can do to help them is critically377important. Again, that is why it is so important that our378commodity groups, certainly led by Farmers Union, Farm Bureau,379are so important because we have this network--this incredible380network of family businesses, family farms, and ranches. If we381take it for granted, we take it for granted at our peril, and382we need to be with them, and I know that is what this hearing383today is all about. Thank you.384 Chairman Boozman. Next, Senator Klobuchar is going to385introduce our next witness, Mrs. Burns.386 Senator Klobuchar. Thank you very much. I do not know if387Mrs. Burns is the youngest person ever to head up her388organization, but I do thank her for coming today. She is the389chief executive officer of the International Fresh Produce390Association. She serves the entire fresh produce and floral391supply chain, including farmers, consumers, processors, and392retailers. She has over 30 years of industry experience,393including her time as the Produce Marketing Association--at the394Produce Marketing Association and serving as a leader in the395grocery retail sector.396 Thank you for being here, Cathy, and thank you for your397work in support of specialty crops, which has been so--a398growing part of our ag profile in our country, and really399appreciate it. Thanks.400 Chairman Boozman. I do not know if she is the youngest, but401she is one of the most effective in twisting our arms.402 [Laughter.]403 Chairman Boozman. I would now like to introduce Mr. Nathan404Reed, a great Arkansan hailing from Marianna, Arkansas, located405in the heart of the Mississippi Delta region. Nathan and his406wife, Kristen, and their four wonderful children, grow cotton,407rice, corn, and soybeans. Nathan currently serves as the408chairman of the National Cotton Council. Back in Arkansas, he409serves as the executive director--executive officer with the410Arkansas Ag Council and serves on the Arkansas Plant Board. I411look forward to hearing his testimony as he represents farm412families across the cotton industry. Welcome back to the413Committee, Nathan.414 Again, thank all of you all for being here. You can go415ahead and come up. Okay, so we are ready to roll. Mr. Duvall,416you are recognized for your opening statement.417418STATEMENT OF MR. ZIPPY DUVALL, PRESIDENT, AMERICAN FARM BUREAU419 FEDERATION, GREEN COUNTY, GEORGIA420421 Mr. Duvall. Thank you, Mr. Chairman, and Ranking Member422Klobuchar, and the Members of the Ag Senate Agriculture423Committee. I want to thank you all for the opportunity to424testify on this important topic. My name is Zippy Duvall, and I425am a third-generation farmer from Georgia. My family and I426raise beef cattle, poultry, and hay, and I am honored to serve427as president of American Farm Bureau Federation, representing428more than five million member families who grow every crop429produced in the United States. Our members are the economic430backbone of rural America, but they continue to face historical431headwinds in farm economy.432 When adjusted for inflation, USDA projects that farm income433this year will be down nearly $50 billion below the levels of434just a few years ago. One of our young farmers from Oklahoma435pointed out to me recently that his prices have failed to the436lowest level in his lifetime, while input costs have continued437to increase faster than ever. The conflict in Iran is expected438to make cost of fuel and fertilizer soar even farther. Congress439and the President have delivered critical support, and we are440grateful for that support and investment in our risk management441tools, trade promotion, conservation and addressing animal442diseases, bridge payments provide a lifetime--lifeline to443farmers to help farmers make it to this planting season, but444farmers do not want to rely on government aid, and aid should445not be needed year in and year out. That is not a normal446volatility. It is structure imbalance, and that is why this447hearing is so important today.448 We must strengthen domestic demand for American449agricultural products, and we must support increased production450of critical ag supplies and restore domestic processing. We451must ensure our safety nets are strong and expand fair access452to markets abroad. More than 20 percent of our total453agricultural products are exported in a typical year. When that454export engine slows, farm-level prices drop quickly. Export455markets must be strengthened through fair and enforceable trade456agreements. Global competitors have expanded their acreage,457they have improved their yields, and they are investing heavily458in their ports and rail system. That competitiveness is not459going to go away. We must be competitive in the export market,460but we also need to expand our domestic demand and processing461capacities to truly be resilient.462 There are many ways to drive domestic demand. Biofuels463represents a clear example. Ethanol production now accounts for464about 40 percent of the total U.S. corn usage. Renewable diesel465and biodiesel markets continue to transform oilseed demand.466This shift has driven expansion in soybean crushing capacity,467creating jobs and strengthening our local communities.468Sustainable aviation fuel represents another opportunity.469Another aspect of domestic demand is federal purchasing.470Federal agencies purchase almost $7 billion of U.S.-grown food471in agricultural products last year.472 Buy America policies are both patriotic and powerful, but473oversight and enforcement can be strengthened. For example, the474National School Lunch Program provides nearly five billion475meals annually, and they are supposed to be domestically476sourced, but the rules allow for significant share of foreign477products. Enabling schools and food banks to be sourced478directly from U.S. farmers is another demand booster,479especially in fruit and vegetable growers. Incentives can also480help. The Buy America Cotton Act of 2026 is a good example of481legislation that builds demand through a tax credit for482businesses using American-grown cotton. A key pillar of strong483farm economy is an adequate work farm workforce. The current484labor shortage is unacceptable and unnecessary. We need485modernized ag labor programs and improved guest worker486programs. Otherwise, farm production and food processing will487continue to move agricultural outside our borders.488 American agriculture remains one of the most innovative and489productive sectors in the world. We must ensure that markets,490infrastructure, and policy evolves alongside that productivity.491I look forward to working with this Committee to ensure that492America's farmers and ranchers can continue to supply food,493fiber, and fuel to families across our great country and494beyond.495 Thank you for the opportunity to testify for you today.496 [The prepared statement of Mr. Duvall can be found on pages49742-62 in the appendix.]498 Chairman Boozman. Thank you. Mr. Perdue.499500 STATEMENT OF MR. MATT PERDUE, PRESIDENT, NORTH DAKOTA FARMERS501 UNION, RAY, NORTH DAKOTA502503 Mr. Perdue. Chairman Boozman, Ranking Member Klobuchar,504Members of the Committee, thank you for the opportunity to505testify today. My name is Matt Perdue. I farm with my family506near Ray, North Dakota, where we raise durum, spring wheat,507canola, lentils, and soybeans, and I am honored to serve as508president of North Dakota Farmers Union and on the board of509directors of National Farmers Union.510 Family farmers are facing significant economic headwinds.511Our input costs are high, commodity prices are low, and our512markets are extremely volatile. Farmers and ranchers are also513shouldering record-high debt loads, higher than the 1980s,514further deepening the crisis for many. In the last year, trade515disputes and now the war in Iran have compounded these economic516challenges. Geopolitical tensions have created pressure on both517sides of the farm income equation, driving up input costs and518depressing commodity prices. Farmers Union has been critical of519the Administration's trade strategy, but we must also confront520the reality that U.S. agriculture is facing increased521competition in international markets. Strong domestic markets522are critical to the long-term profitability of family farms and523ranches, and we can grow those domestic opportunities by524bolstering renewable fuels markets, expanding local and525regional supply chains, and strengthening competition in ag526input markets and the markets that we sell into.527 Renewable fuels play a vital role in farm income and rural528economies. A strong domestic biofuels industry provides529consistent homegrown demand for agricultural commodities,530offering greater price stability, and that stability is badly531needed right now. We appreciate the work of Senators Fischer532and Klobuchar and many others on this Committee to secure533permanent year-round E15. As you well know, farmers are534frustrated by the repeated delays in advancing permanent year-535round E15 through the legislative process. We need that demand536boost, and we need it now. It is time to get it done.537 We are also encouraged by the Administration's proposed538increase in biomass-based diesel volumes under the renewable539fuels standard. We strongly support those increased volumes and540will continue to urge EPA to finalize its proposal and provide541certainty for farmers and renewable fuels producers, and long-542term, we look forward to working with this Committee to grow543biofuels markets. Further, we strongly support efforts to544advance higher blends of ethanol, including E30, we support54545Z, the Clean Fuel Production Credit and its timely546implementation, and we are excited to help grow demand through547sustainable aviation fuel.548 While expanding renewable fuels markets will boost549commodity prices, we can also create more opportunities beyond550traditional commodity channels. Local and regional supply551chains help farmers and ranchers expand and build markets and552strengthen profit margins. Programs like the Local Food553Purchase Assistance and Local Food for Schools program554supported that development. While we were disappointed that555USDA terminated funding for those programs last year, we556appreciate the inclusion of both in the House farm bill. As557this Committee takes up the farm bill, we encourage you to558authorize LFPA and LFS and to build upon the House proposal by559providing both programs mandatory funding.560 We also strongly support efforts to bolster local and561regional livestock processing. In recent years, a combination562of federal and state programs have meaningfully expanded market563opportunities for North Dakota ranchers. Those investments are564having a real impact for real families. For example, the Bruner565family from Drake, North Dakota has built Dakota Angus Beef, a566brand that now has statewide recognition. Through Dakota Angus567Beef, the Bruners are selling their own beef directly to568consumers and to restaurants, and capturing a larger share of569the consumer food dollar. Their story is a great example of how570targeted support can help hardworking producers create new571opportunities for themselves, their families, and their572neighbors.573 Finally, we must recognize that most of the markets we buy574from and sell to are heavily consolidated. That consolidation575limits options for farmers and ranchers, and it compresses our576margins. We appreciate the Administration's recently announced577investigations into farm inputs in the major meat packers, but578investigations will not help farmers and ranchers unless they579are followed by real enforcement. We urge Congress and the580Administration to work together to provide meaningful antitrust581relief and remedies for farmers and ranchers.582 Family farmers are experiencing real economic pain. We need583real solutions. We look forward to working with this Committee584to expand domestic opportunities, create new ones, and to585ensure that all our markets are fair and competitive. Thank you586for the opportunity to testify today. I look forward to587answering your questions.588 [The prepared statement of Mr. Perdue can be found on pages58963-73 in the appendix.]590 Chairman Boozman. Thank you very much. Mr. Reed.591592 STATEMENT OF MR. NATHAN REED, CHAIRMAN, NATIONAL COTTON593 COUNCIL, MARIANNA, ARKANSAS594595 Mr. Reed. Good afternoon. I am Nathan Reed from Marianna,596Arkansas. I farm with my wife, Kristen, and our four children597in the Mississippi River Delta, where we raise cotton, rice,598corn, and soybeans. We are grateful for the work of this599Committee over the last year to mitigate the economic600conditions facing cotton producers. Congress, the USDA, and the601White House have stepped up to the plate by providing602additional support to production agriculture. However, the603financial situation of U.S. cotton growers continues to604deteriorate, with market prices still well below the cost of605production. This is on top of deep losses producers suffered in6062023, 2024, and 2025. We are encouraged by Chairman Boozman and607Senator Hoeven's efforts to provide additional economic608assistance for 2025 losses. We look forward to working with you609and the leadership in the House and Senate to achieve this610result.611 Unfortunately for domestic producers, Brazil has surpassed612the U.S. as the leading global exporter of cotton and is613projected to produce almost 19 million bales, up from 6 million614bales a decade ago, and far surpassing current U.S. production615of 14 million bales. Over the last 20 years, cotton has seen no616consistent demand growth. To make matters worse, during the617same period, man-made fiber consumption has more than doubled,618with much of that being Chinese polyester priced at 42 cents619per pound. While ad hoc assistance and farm bill provisions620have helped substantially, the U.S. cotton industry cannot621survive without stronger demand.622 We are grateful for the leadership of Senator Cindy Hyde-623Smith, who last year introduced the Buying American Cotton Act,624or BACA. In January, a House companion bill was introduced by625Representatives Greg Murphy and Terri Sewell. BACA has strong626bipartisan support that extends far beyond the Cotton Belt, as627evidenced by House co-sponsors from New York, New Jersey, Ohio,628and Maine. In addition, BACA has very broad industry support,629as highlighted in a letter signed by 80 entities, including630cotton organizations, textile mills, brands, and retailers from631all over the country. Under BACA, products sold containing--632products containing U.S. cotton sold in this country would633qualify for a transferable tax credit that scales with the634level of U.S. cotton content or domestic cotton processing.635Higher credit values apply to qualifying items produced636entirely in the United States or in countries with which we637have a free trade agreement.638 U.S. consumers represent the world's largest retail market639for textile and apparel products, purchasing the equivalent of64040 million bales of fiber. Yet, we estimate that only 10641percent of that total, or 4 million bales, is U.S. cotton. The642other 90 percent of American consumer purchases are supporting643international cotton and synthetic fiber producers. BACA will644correct this imbalance by increasing demand for U.S. cotton,645thus positioning U.S. cotton to compete more effectively.646Ultimately, BACA will enhance cotton prices for American647producers, reducing cost and reliance on farm bill support648programs. It will encourage additional cotton production and649increase domestic economic activity. We estimate that each650dollar at the farm gate generates $20 throughout the broader651economy. This legislation is critical not only for cotton652producers, but also the rural communities that depend on653healthy and profitable family farming operations.654 In closing, I commend this Committee for conducting this655hearing on building domestic demand for our agricultural656products. Most importantly, we urge Congress to pass the Buying657American Cotton Act this year. Thank you for the opportunity to658testify, and I am pleased to respond to any questions.659 [The prepared statement of Mr. Reed can be found on pages66074-78 in the appendix.]661 Chairman Boozman. Thank you. Mr. Bower.662663 STATEMENT OF MR. JED BOWER, PRESIDENT, NATIONAL CORN GROWERS664 ASSOCIATION, WASHINGTON COURT HOUSE, OHIO665666 Mr. Bower. Thank you. Chairman Boozman, Ranking Member667Klobuchar, Members of the Senate Committee on Agriculture,668Nutrition, and Forestry, thank you for your invitation to669testify today. Again, my name is Jed Bower. I am a fifth-670generation farmer from Washington Courthouse, Ohio. I grow corn671and soybeans with my wife, Emily, and my children, Ethan and672Emma. I currently serve as the president for National Corn673Growers Association. Founded in 1957, NCGA represents more than67436,000 dues-paying corn growers in 48 states, and the interests675of more than 500,000 farmers who contribute through their corn676checkoff programs in their states. It is an honor to testify677before the Committee today. This hearing on domestic demand678expansion could not come at a more critical time for our679industry.680 In 2026, we celebrate America's 250th year, and in those681250 years, corn has been foundational to the American success682story. Unfortunately, the legacy that generations of corn683growers have built is in jeopardy. Today, corn farmers are684facing many challenges, and the ability of the next generation685to take over the farm is in question for too many families686right now, including my own. With the next 250 years in mind,687NCGA is doubling down on a demand agenda to diversify near- and688long-term market opportunities for corn and corn products.689While my written testimony covers a broader range of topics690that are important to growers' profitability, such as trade and691risk management, because today's hearing is focused on domestic692demand, I will concentrate on two key domestic demand693priorities: expanding markets for ethanol and scaling the694utilization of bio-based products.695 Since its inception, the ethanol industry has strengthened696rural economies, created jobs, and driven farmer profitability.697Today, over a third of each year's crop is turned into fuel. We698believe there is room for growth in on-road, marine, and699aviation fuels. First, year-round access to E15 is critical.700Farmers have waited far too long for this simple deregulatory701bill to be passed. Aside from the economic boost it would702provide to farmers, year-round E15 would lead to significant703savings for American consumers, strengthen U.S. energy704dominance at a time when geopolitics are complicating markets705and supply chains, and I want to thank Chairman Boozman and706Ranking Member Klobuchar for their public support of year-round707E15.708 Second, the renewable fuel standard remains the cornerstone709of biofuels policy. Strong, predictable renewable volume710obligations are essential. They give farmers, ethanol711producers, and fuel retailers the confidence to invest and712grow. We appreciate the EPA's current approach and look forward713to seeing the finalized 2026-2027 RVOs as soon as possible.714 Beyond maintaining current markets, we must look toward the715future and new opportunities for biofuels to help decarbonize716the transportation sector. One of the most promising is717sustainable aviation fuel. Corn-based ethanol can play a major718role as a feedstock for producing SAF. The 45Z tax credit,719which Congress wisely extended in the One Big Beautiful Bill720Act, is poised to help stimulate the expansion in the rising721industry.722 Corn growers are also actively exploring ethanol and marine723fuel. This has potential to be a four billion gallon market724within the next five years. This market symbolizes an725unprecedented opportunity for American corn farmers. Bio-based726products represent an important growing economic opportunity727for farmers when corn and ethanol are used as feedstocks. They728also present a more environmentally sustainable alternative for729ingredients in many products that Americans use in their730everyday lives, such as fibers and polymers. Capturing just 10731percent of the global plastics market with bio-based732alternatives could generate a demand for an additional 15733billion bushels of corn.734 NCGA is working with industry partners to develop735legislation to establish a federal tax incentive that would736encourage the conversion of U.S.-grown agricultural feedstocks737into renewable chemicals and materials. This investment and738production credit would diversify demand for agricultural739products, strengthen domestic biomanufacturing, and stimulate740rural economies. We encourage Congress to invest in these741tools.742 In closing, I thank the Chairman, the Ranking Member, and743the Members of the Committee once again for today's focus on744expanding domestic demand markets for U.S. agricultural745products. This objective is imperative to our future. I implore746all Members of Congress to work with us to advance real747solutions like the ones that were discussed here today. Please748fight with us to secure the next 250 years of farming.749 [The prepared statement of Mr. Bower can be found on pages75079-85 in the appendix.]751 Chairman Boozman. Thank you very much. Mrs. Burns.752753STATEMENT OF MRS. CATHY BURNS, CEO, INTERNATIONAL FRESH PRODUCE754 ASSOCIATION, WASHINGTON, DC755756 Mrs. Burns. Chairman Boozman, Ranking Member Klobuchar--757thank you for the introduction--and Members of the Committee,758thank you for the opportunity to testify on behalf of the759International Fresh Produce Association. I am proud to760represent the thousands of U.S. fruit and vegetable producers761who feed American families, strengthen rural communities,762support more than two million jobs, and contribute more than763$335 billion to the national economy.764 IFPA is guided by a simple yet powerful goal: to grow a765healthier world by increasing Americans access to and766consumption of fresh fruits and vegetables grown here in the767United States. The science is clear. Eating more fruits and768vegetables is one of the most effective ways to improve health,769prevent chronic disease, and reduce health care costs. This is770reflected in the Dietary Guidelines for Americans and aligns771with the priorities of the Make America Healthy Again movement,772yet 90 percent--90 percent--of Americans still fall short of773recommended intake levels.774 Increasing consumption is not just a nutrition issue; it is775an economic issue and an economic opportunity. When we776strengthen produce consumption, we strengthen domestic markets777for American farmers. To meet this opportunity, we need778systematic solutions--systemic solutions to make it easier for779everyone to choose fruits and vegetables, everything from780strengthening federal nutrition programs to ensuring the781industry has access to federal investment to enhance our782competitiveness, our resiliency, and efficiency.783 The good news is that Congress has powerful tools at its784disposal, particularly through federal nutrition programs. We785need Congress to continue to fully fund the WIC Fruit and786Vegetable Benefit and expand online redemption, strengthen787produce incentives in SNAP, ensure school meals include a wide788variety of fresh produce, expand the Fresh Fruit and Vegetable789Program to reach more elementary schools, and modernize USDA in790procurement so it reflects nutritional value, not just the791lowest cost, and includes more U.S.-grown produce options.792Embedding produce prescription as a standard benefit across the793federal health programs will improve the health of nearly 150794million Americans. Ensuring HSA and FSAs can be used to795purchase fruits and vegetables is another commonsense step.796 While these actions will help drive consumption, Congress797must also support a competitive and resilient supply chain.798From the moment it is harvested, fresh produce must move fast,799and growers today face rising input costs, labor shortages,800regulatory pressure, and increasing natural disasters. Over the801past two decades, the United States has lost more than 230,000802farms, a stark reminder of the economic pressures facing803producers. Policies that support farm profitability and804encourage new investment in specialty crops are essential.805 Strategic investments in research, technical assistance,806risk management, and conservation programs help growers remain807competitive across all production systems, conventional,808organic, and regenerative. A coordinated national approach to809produce packaging is also critical, one that avoids conflicting810state rules and balances sustainability goals with food safety,811shelf life, and affordability. Finally, consumer confidence812depends on a strong modern food safety system. This includes813continued investment in FDA's Human Foods Program, including814traceability, implementation and reliable funding for and815consistency across state food safety programs. These are all816essential to protect consumers and support growers.817 Despite the challenges they face, America's fruit and818vegetable producers are ready to meet the growing demand, but819we cannot do it alone. We need your leadership. Congress has a820vital role to play in ensuring every American has access to821fresh fruits and vegetables, while creating economic822opportunity for farmers across this country. On behalf of the823International Fresh Produce Association and U.S. Growers we824represent, thank you for your leadership and for your825partnership, and I look forward to your questions.826 [The prepared statement of Mrs. Burns can be found on pages82786-90 in the appendix.]828 Chairman Boozman. Thank you. Mr. Metzger.829830 STATEMENT OF MR. SCOTT METZGER, PRESIDENT, AMERICAN SOYBEAN831 ASSOCIATION, WILLIAMSPORT, OHIO832833 Mr. Metzger. Thank you, Chairman Boozman, and Ranking834Member Klobuchar, and Members of the Senate Agriculture835Committee. It is an honor to join you here today to testify on836behalf of the American Soybean Association regarding domestic837market expansion opportunity for U.S. Ag. My name is Scott838Metzger, and I am a sixth-generation grain farmer from Ohio. I839also serve as ASA president, which represents U.S. soybean840farmers across 30 soy-producing states.841 The U.S. soybean industry has a profound positive impact on842the economy, with the entire soy value chain generating an843economic impact of $124 billion in 2025. However, the trade844uncertainty plaguing our industry this marketing year845highlights how important strong domestic markets are for U.S.846soy. While the soybean industry continues to diversify export847markets, embracing federal policies that can promote and expand848domestic markets is more critical than ever. U.S. soybean849farmers play an essential role in feeding and fueling the world850while also supporting over 1,000 soy bioproducts, from biofuels851to food uses to new opportunities for soybean meal and the852development of soy-based bioproducts.853 ASA sees immense domestic market potential for our crop.854The domestic biomass-based diesel, or BBD, industry was855developed with the support of the soybean farmers in the 1990s.856Biodiesel, renewable diesel, and sustainable aviation fuel857support American energy dominance while using U.S.-grown soy858oil feedstocks. Through federal policy, the U.S. consumed over859five billion gallons of BBD in 2024, which created over $42860billion in economic impact. Now the industry is on the brink of861additional expansion. While the BBD industry increased by 65862percent from 2021 through 2024, the percentage of soy oil used863in BBD production decreased as imports of used cooking oil and864tallow surged from China, Brazil, other overseas destinations.865 ASA thanks Congress for its improvements to the 45Z tax866credit. The changes eliminated the penalty on ag-based867biofuels, effectively doubling the credit value for soy-based868BBD. Further, Congress prohibited fuel and feedstocks imported869from overseas from benefiting from the tax credit. Now,870Treasury must finalize the guidance that the soy biofuel value871chain can actually utilize the tax credit. The EPA renewable872volumes obligation for 2026 and 2027 must also be finalized873swiftly to promote biofuel industry expansion. The June 2025874draft EPA rule was the most positive proposal ASA has ever875seen. Finalization of the 45Z tax credit and RVO rule will876provide increased certainty for domestic BBD markets and drive877investments to increase production, in turn, increasing878consumption of U.S. soy.879 Soy is also a critical component in the U.S. food systems.880In addition to food products, soy oil serves as an affordable,881heart-healthy ingredient for home cooking and packaged foods.882The Federal Government must ensure that the regulations and883policies continue to follow sound science. At the state level,884food labeling proposals continue to emerge. ASA urges Congress885to ensure food affordability remains top of mind, especially as886labeling patchworks will increase consumer costs by 12 percent887nationwide.888 As soybean processing increases to meet domestic oil889demand, soy meal offers additional market opportunities beyond890animal and aquaculture feed. Soy meal is used as a base891ingredient in SoyFoam, a PFAS-free firefighting foam.892Firefighting foams are one of the most common, continuous PFAS893polluters in the country, and SoyFoam offers a biodegradable894American-grown alternative. ASA urges Congress to help expedite895federal approvals of this product. Widespread use of SoyFoam896will ensure firefighters, like my son, Dalton, will no longer897have to worry about regular PFAS exposure while on the job.898 Soy oil-based products also offer immense domestic market899growth potential, from tires, to infrastructure products, to900golf balls, and artificial turf. The scalable potential of901these products is limitless. Like biodiesel, most soy902bioproducts can be traced back to the investments made by the903soy checkoff. As a proud investor in our checkoff, support is904critical to ensure research and development into new domestic905market opportunities can continue. As we work to maintain and906grow domestic markets for U.S. soy, Congress must continue to907focus on biofuels, edible oil meal bioproducts. I also urge for908our soy checkoff, which is a critical tool to U.S. soybean909farmers to use to build markets today.910 Thank you for this opportunity. ASA appreciates the911Committee's focus on this critical issue to improve the farm912economy, and I look forward to your questions.913 [The prepared statement of Mr. Metzger can be found on914pages 91-104 in the appendix.]915 Chairman Boozman. Thank you very much. Mr. Reed, there has916been a dramatic decline in cotton processing capacity with the917number of cotton gins, once over 2,000 in 1980, now standing918just under 450, so that 85 percent of U.S. cotton production a919day is exported. Can you talk further about the underlying920reasons for the trend, you know, with the processing ability921and opportunities? Is it out of reason to think that we could922actually have textile plants again in the United States? I923mean, it seems like every--you know, we all know communities924that there was, you know, some sort of a gin factory, or this925or that there, that just simply all disappeared.926 Mr. Reed. Well, on the cotton gin side, there has been a927reduction in cotton acres, which, unfortunately, has closed928many gins. There has been some consolidation of gins and some929larger gins built, but it has followed the trend of reduced930cotton acres. As far as textile mills, they have had a very931tough time. It started when China entered the World Trade932Organization. We started losing textile mills, and then more933recently, the mass importation of cheap synthetic chemical934fibers from other countries flooding our market, our textile935market in America.936 Fortunately, we got the de minimis provision reversed and937that has helped some, but we feel that the way to reverse this938trend is through BACA, the whole cotton industry, textile,939providing more consumption of American cotton will absolutely940reverse the trend of the loss of cotton processing facilities941because once they are gone, it is very difficult to get that942back.943 Chairman Boozman. Very good. Mr. Duvall, in your testimony944you talked about the importance of reliable labor. I was glad945to see the Department of Labor issue an interim final rule on946the effective adverse wage rate and support efforts to codify947the rule. What else can Congress or the Administration be doing948to modernize ag labor programs?949 Mr. Duvall. Well, we need to continue to work together to950bring a farm labor bill to surface and get it on the951President's desk so that we can have a reliable source of labor952for agriculture. The programs that we work within now is only953seasonable. There is year-round workers needed in much of954agriculture today all across America, and we need to continue955to work on that. We are very appreciative of the work that the956Administration has done, the Department of Labor has done to957try to help some of the regulations, but if you look across958America, when I go across America and talk to farmers, it is959the number one issue they are facing. That is a long-term960issue.961 Of course, the economy right now is the biggest issue that962faces them, but labor is the biggest limiting factor that we963have in agriculture today. It prevents having young people come964back to our industry because they have to expand their family965farms, and they need additional labor to do that, and we are966not able to do that. Then it is over-regulated and cost too967much. Larger farms have a tendency to be able to adapt to the968program because larger farms may have--possibly could have H.R.969department and attorneys working for them, while small- or970medium-sized farms, it is almost impossible for them to adapt971to the systems that we have. We need to look at this, and it972can be fixed. It is unnecessary that we are short of labor.973There are people in this world that want to do our work, and we974need to find a way to let them come here and help us do it.975 Chairman Boozman. Mrs. Burns, you mentioned that one of the976answers to increasing specialty crops is the various USDA977programs that are out there. We have problems with them in the978sense that sometimes the bureaucracy, sometimes this or that.979Do you have any specific ways that we could make those programs980better, easier for farmers to use?981 Mrs. Burns. Yes, I mean, I think anytime you can make the982process simpler and easier for our growers, it is definitely a983win. Some of these programs that are in place have an984opportunity to scale, so the construct already exists.985Obviously, some of them need funding, but I will tell you,986fully funding the WIC Fruit and Vegetable Benefit is our crown987jewel. It really does make a difference in those young988families. If you think about school meals, our schools are the989largest restaurant in the country, and so we need to ensure990that we are providing the variety of fruits and vegetables for991our kids because we need to start those habits at a very young992age. Again, streamlining processes, always, but some of the993recommendations that we put forward do not cost a lot of other994bureaucracy. It is just a matter of opening up the policies995like ensuring HSA and FSAs are used to purchase fruits and996vegetables.997 Chairman Boozman. That is good. I visited with the school998lunch professionals today and they were mimicking exactly the999same things you said, so it was great. Senator Klobuchar.1000 Senator Klobuchar. Thank you, Mr. Chair. I have long led1001bipartisan efforts along with so many of my colleagues to make1002E15 available year-round. I appreciate so many of you bringing1003it up. It is an obvious solution to what we are facing now,1004which is some higher gas prices which we were not facing a few1005months ago. It seems to me like the moment to seize, to show1006that we have a diversified fuel supply, and it is already,1007what, 10 percent of our fuel. I just think this would be the1008smartest thing to at least send a message to those soybean and1009corn farmers that this is a market that we want to fill, and1010this is the time to do it.1011 A new economic analysis from the University of Missouri1012shows that E15 is currently saving drivers about 25 cents per1013gallon. Mr. Bower, with the cost of production being so far1014above the current price of corn, what would the availability of1015year-round E15 and higher blends of ethanol mean for corn1016growers across the country?1017 Mr. Bower. Well, Ranking Member Klobuchar, thank you for1018the question. You know, absolutely tremendous. As we look at1019potentially our 4th year of losses in a row, and trying to--at1020least in my personal farm, trying to figure out how I am going1021to pay for my inputs that are so drastically out of line. You1022know, as we look at what E15 could potentially do for growers,1023for every one percent we increase that blend wall. As we go1024from 10, to 11, to 12, and on up, for every one percent, that1025is 490 million bushels of grind, you know. For farmers it1026varies depending on the market, but we are looking at maybe 351027cents a bushel. Some numbers are lower than that, but any1028relief right now is tremendous for growers.1029 Senator Klobuchar. I do not even--I think of it as fuel we1030need right now. If we put you in such perilous position, if the1031government policies do that with tariffs and the like, that you1032are not able to keep producing, then we are going to be really1033screwed because you do not--those are not your words--because1034with the way gas prices are going right now, I think it is a1035real problem. This is a great moment to do that. Mr. Metzger,1036how does a strong renewable fuel standard provide stability for1037soybean market? Be quick in the answer because I have a few1038more.1039 Mr. Metzger. Thank you, Ranking Member Klobuchar. Biofuel1040production is one of our largest domestic products markets for1041U.S. soy, with significant growth potential through higher1042annual blending targets and safeguards against the flood of1043imported feedstocks. A strong RFS will help the American1044soybean farmer. You know, we are in kind of the same role here1045as corn. With it, we are, you know, looking to have more1046access--become more economically viable with our products.1047 Senator Klobuchar. Thanks. Mrs. Burns, of the $12 billion1048in economic assistance announced by USDA, as you know, only1049certain specialty crops will be available for a billion in1050assistance. Do you believe that the economic assistance is1051adequate, and are you in favor of advancing a farm bill?1052 Mrs. Burns. Absolutely not adequate. We need at least $51053billion. In fact, GT said last week that we need $10 billion.1054We need--we will take $5 billion, $10 billion. We are a third1055of the crop sales, yet we are not getting a third of the1056economic assistance, so yes.1057 Senator Klobuchar. Thank you. Mr. Perdue, how can farm bill1058conservation programs and the conservation programs created1059using CCC funding help create new markets?1060 Mr. Perdue. Senator Klobuchar, I appreciate the question.1061You know, I think the reality is that consumers are often1062willing to reward farmers for adopting certain practices,1063producing a commodity in a specific way. Farm bill conservation1064programs are, you know, a key opportunity, a key support that1065we can provide producers to transition that production system,1066whether it is an incremental transition or a wholesale1067transition. We get caught up on words a lot: ``sustainable,''1068``regenerative,'' ``climate-smart,'' ``carbon neutral.'' Does1069not really matter to me. It matters that a consumer puts value1070in it, and farm bill conservation programs help us meet that.1071 Senator Klobuchar. Very good. I was just at our National1072Pheasants Forever Convention in Minnesota and there was of1073course a lot of interest in this for reasons outside of even1074farmers.1075 Last, Mr. Duvall, could you talk about investments we have1076talked about--year-round E15, and aviation fuel, which we have1077all these opportunities to move into, and conservation, and1078fruits and vegetables--but could you talk about how investments1079in ag research directly benefit farmers on the ground,1080especially right now when you are seeing the ability of1081technology to help us to get to that next level?1082 Mr. Duvall. Number one, that is why it is so important for1083us to get a new farm bill, modernized farm bill passed. All the1084research that goes into agriculture helps us stay on the1085cutting edge. We see other countries where their agricultural1086communities are growing, and they are adapting to the things1087that we have adapted to many years ago, and that research keeps1088us on the cutting edge and gives the consumer out there what1089they really want. It is vitally important for us to have1090additional monies for research. It helps us do the things that1091the people of this country want us to do, from conserving our1092natural resources to creating new products and new crop1093protection tools that we can use in the future.1094 Senator Klobuchar. Thank you.1095 Chairman Boozman. Senator Hoeven.1096 Senator Hoeven. Thank you, Mr. Chair. In the One Big1097Beautiful Bill, we included updates to ARC/PLC and also to crop1098insurance--very important--and our Chairman led that effort,1099and big-time effort, that is going to help our farmers and1100ranchers. It really kicks in in October because that is the end1101of the marketing year, so we are still working to get our guys1102from where we are now to October range. Senator Boozman and I1103have introduced a bill that would provide additional disaster1104assistance, about $15 billion. If possible, we would also like1105to include E15 in there, year-round as well. Starting with you,1106Mr. Duvall, what is your thoughts?1107 Mr. Duvall. Well, first off, I want to thank you, and the1108Chairman, and the whole Committee of what they are doing to1109push that forward. We do need that additional money. The monies1110that has come across now has got our farmers to planting1111season, but there is not enough there to bridge us over until1112those new Title I programs come into effect. It is vitally1113important that we not only get a new farm bill, modernized farm1114bill, and finish it out, but it is also vitally important that1115we have more bridge payments and a real focus on specialty1116crops, too. We have to have that to get our farmers and1117ranchers through.1118 Senator Hoeven. Mr. Perdue, same question.1119 Mr. Perdue. Senator Hoeven, I appreciate your work on this1120issue, and absolutely, it is going to be critical in the months1121ahead that we provide additional financial support. There is1122not enough money out there in farm country right now, that is a1123challenge. One of the things, you know, in North Dakota we tend1124to have higher basis or a wider basis than other parts of the1125country, something that was not reflected in the Farmer Bridge1126Assistance. Essentially, that means that we get underpaid1127compared to the losses that our neighbors in other states'1128experience, and I think that is an important issue as we move1129forward.1130 Senator Hoeven. Mrs. Burns, specialty crops are an1131important part of the legislation we put forward. What is your1132feeling? Same question.1133 Mrs. Burns. Yes. I appreciate, Senator, you calling this1134out. As Zippy mentioned, this is a very, very important topic1135for our growers. It needs to be addressed through the farm bill1136as well, and we need--as you know, specialty crops do not1137really have a crop insurance program that is affordable or1138effective. The Specialty Crop Farm Bill Alliance put together a1139recommendation to do just that, and we are proposing1140significant reforms to the current programs. We have high value1141products that have a high impact on Americans health. We need1142this.1143 Senator Hoeven. Right. We very much want to thank Secretary1144Rollins for the Farm Bridge Assistance. That has really been1145important and much appreciated, but also, you know, we need to1146finish that bridge assistance, which is what we are trying to1147do here to get to the provisions that we did include in ARC/PLC1148and crop insurance.1149 The other question, and again, the focus here is how we1150increase domestic markets. You know, both the Chairman, and I,1151and others have talked on a continuous basis to USTR. We have1152got--you know, we not only have international agreements to1153export, but we have got to get the sales--the actual hard sales1154as fast as we can, and I know they are very much focused on1155that. I guess the issue today is what more we can do1156domestically? In our state, we have made a huge push on value-1157added ag. I guess I will come back to you, Mr. Perdue. Are1158there some other things you think we can and should do in that1159realm?1160 Mr. Perdue. Senator Hoeven, I think--you know, I think one1161of the biggest things to point out with the North Dakota story1162is we have made big strides on ethanol, we have made big1163strides on soybean crush, but we also have pea flour1164processing, and craft molting, and a lot of diversity like1165wheat flour milling----1166 Senator Hoeven. Awesome.1167 Mr. Perdue [continuing]. that is driving a lot of1168opportunities for producers. Now, we are still in tough1169economic times. It has not totally changed the tide, but the1170more we can create diverse opportunities for producers, I think1171the better off everybody is. I think it bolsters our resilience1172on the farm in North Dakota and across the country.1173 Senator Hoeven. Yes, and to foot stomp that we now grow 401174different major crops and a lot of it is because we do have the1175ability to do processing. Mr. Perdue, what can we do on the1176input side on the fertilizer and those kinds of things to1177help--those input costs have gone up so much. What are the top-1178of-mind things we can do there? Yes, Mr. Duvall. I am sorry.1179 Mr. Duvall. Thank you, sir. Well, one thing we need to look1180at the tariffs that are being put on and make sure that we1181exempt all inputs that come in from out of country and crop1182protection tools that we utilize. That would help drastically1183to make sure that all that and retain those exemptions for1184them. Of course, we need to look for ways to increase the1185production of those ag supplies that we need here in this1186country, and I know that would take a big investment. I know it1187can take a long time. If you look at our dependence on the rest1188of the world for these inputs, it really is important for us to1189do that because we surely do not want to be taken to of our1190knees when it comes to our food supply. It is a national1191security issue.1192 Senator Hoeven. I am really glad--I am really glad you1193ended there because I think working both with USDA and1194Department of Energy, we can do more there to, you know, use1195the energy we produce to provide our inputs. That is a double1196win: security on energy and security on food, so I really think1197that is important. Thank you. Thank you, Mr. Chair.1198 Chairman Boozman. Senator Smith.1199 Senator Smith. Well, thank you, Mr. Chair and Ranking1200Member. I really appreciate this hearing and hearing the1201testimony of all of you. As we think about what it is going to1202take to boost domestic demand for American-grown food, and1203fuel, and fiber, I want to just first say thank you all so much1204for your strong support for biofuels, year-round E15, and the1205opportunities around sustainable aviation fuel and marine1206fuels, and it is really exciting to think about what we can do1207with bio-based products. I know there are Minnesota companies1208that are working on this, and there is a huge opportunity1209there.1210 I am struck by how our innovation and value-add has always1211been our competitive advantage in this country, and that has1212been fueled by a big public-private partnership. You have got1213private industry, you have got academic institutions, you have1214got the Federal Government, you know, land grants, extension,1215all doing the kind of research that it takes. I just hope,1216colleagues, that as we think about the role of the Federal1217Government, as we think about a farm bill, that we are paying1218attention to the support that we need to provide to research1219because I think it is just crucially important.1220 I also just want to put a note on the impact of labor1221shortages that quite a few of you have been talking about and1222what that means for farm country. I cannot let this moment pass1223without observing that in my home State of Minnesota, the1224Administration's immigration policies has had a devastating1225impact on farm labor and food processing labor. As farmers, as1226we think about getting ready to go into the field and the work1227that we have ahead of us this spring, there are a lot of people1228that are just not there anymore, not because they were here1229illegally, but because it is too risky for them, even with1230their legal status, to be here in Minnesota to do the work. I1231just think we all need to think really hard about what impact1232these immigration policies are having on our domestic food1233production.1234 I want to go to something, and Mr. Perdue, that you were1235talking about that I think is really interesting and very1236relevant to this conversation. We have got rising input costs,1237we have got the impacts of tariffs, the impact of the war, the1238Iran war, on pushing these costs even higher. It is no secret,1239right, that one of the biggest factors that we have here is the1240lack of options that farmers face because of corporate1241consolidation.1242 This is an issue both on the supply side, you know, like,1243where are you going to get your inputs, what companies control1244those inputs, and it is also a big issue on the demand side if1245you are producing beef, or corn, or pork, the few numbers of,1246you know, who you can sell to. Minnesota farmers will often say1247to me, basically, ``I feel more and more like I am just a1248contractor to a big company, that my business is not even my1249own anymore.'' This is an issue that many folks on both sides1250of the aisle have worked on in this Committee. Could you just1251speak a little bit more to this, and what impact do you see1252this consolidation has on the overall competitiveness as we1253want to build bigger domestic markets for American-grown food1254in this country?1255 Mr. Perdue. Senator Smith, appreciate the question. When1256you look at the reality of the markets, again, that we buy from1257and sell to, most of them are controlled by--three or four1258companies control 80, 85 percent of those markets. One of the1259things that I consistently hear from neighbors, friends, fellow1260farmers, and ranchers across the State of North Dakota is input1261costs are just through the roof.1262 Senator Smith. Right.1263 Mr. Perdue. You know, we need to figure out some way to1264provide relief. You know, now we have additional geopolitical1265tensions, right, the Strait of Hormuz and some of the1266challenges there, driving another increase in already high1267fertilizer costs. That fertilizer cost on an acre of wheat is1268about 40 percent of your production cost, and that is going up126930 percent now. I mean, that is--you cannot make it work. You1270cannot make it pencil out. We have to look at market structures1271and the ways in which they create challenges for market1272participants.1273 Senator Smith. Right. There are--I would just add, I mean,1274there are a lot of good ideas on, again, as I said, on both1275sides of the aisle. I have legislation with many of my1276colleagues to get at this consolidation issue and the direct1277impact it is having on the ability of producers to make a1278profit. You know, you said there is just not enough money in1279farm country, and I would argue that there is a lot of money in1280farm country. It is just that it is going to fewer and fewer1281institutions and organizations, and that is the problem that we1282have to get after. Thank you, Mr. Chair.1283 Chairman Boozman. Thank you. Senator Ernst.1284 Senator Ernst. Thank you, Chair Boozman, and Ranking Member1285Klobuchar, and thanks for all of our witnesses for being here1286as well.1287 I have been traveling across Iowa, and I meet with farmers1288all the time, and I hear one very clear message, and many of1289you have stated it already: markets, not aid, okay? I hear it1290all the time. Since coming to Congress in 2014, I have been1291fighting to grow our domestic markets and increase consumption1292of American-grown commodities. Today, farmers in Iowa, whether1293you are traveling near my family farm in Southwest Iowa, all1294the way over to the other side of the state in Eastern Iowa and1295across the country, because I am hearing it from you, all of1296these farmers are being squeezed by the high input costs and1297low commodity prices.1298 You know, Congress has a real opportunity right now to1299respond by expanding our domestic markets, putting more money1300into the pockets of our producers and rural communities, and a1301new five-year farm bill would be an exceptional place to start.1302I do applaud Chairman Thompson for moving a bipartisan package1303in the House last week, and I am hopeful that we can make the1304same progress here in the Senate very soon, but the farm bill1305is not the only avenue to do this. We should be looking at1306every opportunity to increase demand here at home.1307 We are going to stay on some of the themes you have heard1308already. The recent spike in oil prices following activity in1309the Middle East really reminds us how vital energy security is.1310Energy security is national security, food security is national1311security, and how higher blends of ethanol can help keep gas1312prices affordable here at home, so producers and consumers1313alike deserve long-term stability. Mr. Bower, how does E151314strengthen our Nation's fuel supply and support strong grain1315prices for farmers?1316 Mr. Bower. Well, thank you, Senator. You know, to reiterate1317on what you just said, you know, the conflict going on right1318now, this is a prime example and a prime time to bring that1319strength in domestic production up, so we are less reliant on1320all the foreign countries. It is so much better. We grow the1321product here, we can produce it here, we can burn it here. It1322is a perfect opportunity for the American farmer and the1323American people, and I think we are in a prime position to move1324that forward. We are so close. We have been close many times,1325and it is so relieving to see so much support in this room for1326that.1327 Tremendous for us as growers, too, I mean, at a time when1328input prices are just completely out of sight, and we are1329worried, losing sleep every day on how we can possibly raise1330another crop next year, and we need this market boost. As we1331try to market last year's crop and try to figure out how to pay1332for the inputs this year. Prime time for this to happen, and we1333need the support for the consumers. It has been mentioned, you1334know, if we can lower the price 25 cents a gallon, I mean,1335everybody in America gets a break on this, and it is--I am just1336so thrilled to hear all of you talk positively about it.1337 Senator Ernst. Yes. Thank you. Mr. Duvall, do you have any1338thoughts there as well?1339 Mr. Duvall. Yes, ma'am. It is vitally important. E15 is a1340no brainer. It is a win-win-win. It is a win for consumers, win1341for the farmer, and it is a win for you to make sure that you1342can do that for the consumer and for the farmer at the same1343time, so, and there is no better time to do that, especially1344with the threatening of some of the fuel and oil going up1345because of the war.1346 Senator Ernst. Yes, absolutely. Thank you so much. I will1347also add we need to make sure that the infrastructure1348requirements do not stand in the way of offering E15 to those1349who want that cheaper fuel source. I am leading a bill, it is1350Ethanol for America Act, to deem existing fuel equipment as1351compatible with ethanol blends up to 15 percent. It is a really1352simple fix, and it would avoid costly infrastructure upgrades1353and build on the $4 billion to $6 billion dollars in savings1354from securing permanent year-round E15. President Trump has1355already asked Congress to deliver a bill to his desk, and it is1356really well beyond time to act. I would love to talk a little1357bit more about 45Z as well.1358 We have got the clean fuel production credit hanging out1359there. I would like to see more work done on cover crops and1360other initiatives that our farmers have as well. I think that1361has been lacking. I will be sending a letter soon reiterating1362this point, but Treasury, and the Department of Energy, and the1363Department of Ag, they really have to work together to ensure1364that the final rule that they put together truly does put our1365farmers first. Thank you all for being here, and with that, Mr.1366Chair, I yield back.1367 Chairman Boozman. Thank you. Senator Slotkin.1368 Senator Slotkin. Thank you, Chairman, and I want to welcome1369you all here and associate myself actually, with a lot of1370things that Senator Ernst just said. You guys have been going1371through a lot. We owe you a farm bill. That is our job, and we1372have always had a great tradition here. My former--the woman I1373replaced, Senator Stabenow, that was a big deal to her, and so1374it is a big deal to Michigan, and I want to also put down, it1375seems like very bipartisan E15 year-round. Can we just do it? I1376thought we were getting close. I thought there was a moment.1377Let us just do it. It is so good and good for the consumers,1378good for our farmers. It is a good deal.1379 I think the thing I want to talk about, you know, we are1380talking about expanding American markets, which is very1381important, but just review the bidding on sort of where we are1382here. You know, the--I am going to do this as neutrally as I1383can, and I want you all to correct me because I am not trying1384to be political. I am just trying to review the facts for the1385farmers, particularly specialty crop farmers. I come from1386Michigan, and we are the most diverse crop state in the country1387with access to water.1388 The President in his first term, put on a bunch of tariffs,1389our farmers started feeling it immediately, and then he spent1390$23 billion in bailouts. I have heard over and over again, just1391like Senator Ernst, we do not want bailouts. We want access.1392You know, we do not want this money to be paid when we are1393suffering. We want access to markets. Second term, comes in,1394and the Secretary of Agriculture was here, and I said, like,1395can we not rinse and repeat from the first time, where we are1396having to again bail out farmers? We have put a bunch of1397different tariffs on. It is hard to know on a given day, but1398right now, so far, the spending package--the bailout package1399for farmers is $12 billion, and we are just 14 months in.1400 It feels like taxpayers are kind of in this do-loop where a1401bunch of tariffs are put on. We all want our farmers to1402succeed, and in order to keep them afloat, we have to bail them1403out with taxpayer dollars, and it seems, in my mind, at least,1404unnecessary. In that package, and Mrs. Burns, this is for you,1405we have had a real lack of clarity on what this aid means for1406specialty crop farmers. One billion out of the $12 was put1407aside for us. You just said in your opening statement it needs1408to be way more than that, but we do not even know, like, how1409they are going to be calculating that aid, how to get at that1410aid, when it is going to come out? Can you hum a few bars on1411what this is doing to our specialty crop farmers, because I am1412hearing it constantly?1413 Mrs. Burns. Yes, it is not doing enough, and if I think1414about that $1 billion, we also have to share with others, so it1415is not just for specialty crop. As I mentioned earlier, our1416expectation is that we get no less than $5 billion. We would1417love to have $10 billion, but at the end of the day, we also1418need and want open markets. I think the critical thing is that1419it is the mechanism and the construct of how that money gets1420distributed. That is where we need a process and some real1421support. It should not be on acreage, and it should not be on1422product-by-product commodity. It should be on crop sales,1423revenues, receipts, however you want to say it, and that is1424critical. I mean, our growers are hurting just as much as my1425colleagues here, and we do not have the mechanism and construct1426to get that money out to our growers, and that could be the1427biggest help that could happen right now for our growers.1428 Senator Slotkin. Thank you for that.1429 Mrs. Burns. You are welcome.1430 Senator Slotkin. Mr. Duvall, I wanted to get your sense.1431You know, we were talking--the senator was talking about Iran,1432and sort of right before, farmers are starting to think about1433planting. You know, more shocks to the price of fuel, more1434shocks, importantly, to the price of fertilizer. I do not think1435the average American understands the role of, like, the Strait1436of Hormuz way in the Persian Gulf to their farmer that lives1437down the corner. Can you walk through the official Farm Bureau1438position on this? You guys have been writing letters. Can you1439walk us through where you are on this?1440 Mr. Duvall. Yes, ma'am, and thank you for the question, and1441it is timely to talk about what we need to be doing. We need1442for our government to use the Navy to make sure that those1443ships can freely come through and work with our partner1444countries that make sure that they come through there. Also,1445the financial and insurance direction. You know, when the1446Strait was shut down, the insurance company, Lloyd's of1447London----1448 Senator Slotkin. Yes----1449 Mr. Duvall [continuing]. cut off insurance.1450 Senator Slotkin [continuing]. they refused to insure.1451 Mr. Duvall [continuing]. they parked the boats. We need to1452use every opportunity that we have in our country to make sure1453that we solve that problem. Once we get it here, we need to1454make sure that we waiver the Jones Act. The President has often1455done that in difficult times like this. We also need to make1456sure that ports, and rail, and everything that is going to1457bring it from the port here in America, and get it to the1458farmer real quickly, tear down any barriers that might be in1459that area. I get--I think last but not least, but the1460countervailing duties that are charged needs to be go off so it1461makes it easier to get them here and make it more affordable1462for our farmers. It is a serious time. My phone has rang off1463the hook since last week when the Strait was shut down, and we1464need to do it. We need to do it now.1465 Senator Slotkin. Thank you. Appreciate that. Yield back.1466 Chairman Boozman. Senator Tuberville.1467 Senator Tuberville. Thank you, Mr. Chairman. Thanks for1468being here today. My State of Alabama, we are leaking oil bad.1469We had lost 150,000 farms and 25,000 farmers nationwide just a1470few years ago. You all know that. Mr. Duvall, I am going to1471give all of you the answer to this one wish to correct this1472God-awful mess. What do we do?1473 Mr. Duvall. I do not know that there is just one wish that1474can solve this problem. We need open markets, we need a labor1475force, and we need to tear down regulation to take down those1476barriers that gets in the way of us actually being able to make1477a living on the farm.1478 Senator Tuberville. Thank you. Scott.1479 Mr. Metzger. Yes, thank you, and that there is not a one-1480answer-fits-all on this, but----1481 Senator Tuberville. Give a good shot at it.1482 Mr. Metzger. Give a good shot at it?1483 Senator Tuberville. Yes.1484 Mr. Metzger. Well, let us get some new markets opened up,1485continue with the trades that we have had, and then on domestic1486markets, you know, getting those ramped up, 45Z, we get the RVO1487numbers out and finalized, get some domestic use done. That is1488going to help.1489 Senator Tuberville. Mrs. Burns.1490 Mrs. Burns. Since Zippy said labor and open markets, I will1491do a third one. I think the Federal Government can take action1492to incentivize healthy eating, and to incentivize and provide1493better access to domestic-grown products, specialty crops1494products here in the U.S., and we can do that by driving1495consumption. Huge opportunity for us in the U.S., and Americans1496will be healthier.1497 Senator Tuberville. Thank you.1498 Mr. Bower. Senator, short-term, it is--that is a challenge1499for new markets, I think we all know. E15 is poised to be right1500there, but another one I need to bring up is we need to1501continue support for the renewal of USMCA. I think that is1502critical to row crop farmers. There are a number--Mexico is our1503number one exporter of corn. Canada is our number one export1504market of ethanol. Truly critical for growers in the short-term1505while we build out these domestic markets.1506 Mr. Reed. Thank you, Senator. Speaking for the cotton1507market or for the cotton production, as a cotton farmer, we1508need to be able to leverage the power of the American consumer1509through the Buy American Cotton Act and get that passed. Thank1510you.1511 Senator Tuberville. Thank you,1512 Mr. Perdue. Senator, I would say that the single biggest1513impact would be growing our renewable fuels markets. That is1514going to improve prices for corn and for soybeans. It is going1515to produce prices for--or improve prices for wheat. We also1516need to make sure that we have strong and competitive fair1517markets for farmers to buy inputs from and sell their1518commodities to.1519 Senator Tuberville. Thank you very much. Mr. Reed you are1520talking about the Buy American Cotton Act, which I am1521sponsoring with my cohort, Cindy Hyde-Smith here. I hear that1522this would totally revamp the cotton market because if we do1523not do something, we are going to lose it all. In Alabama, we1524are losing $400 an acre before we even plant it. I mean, it is1525ridiculous. Why would we get in the cotton business? We have to1526do something. Could you explain what this act would do?1527 Mr. Reed. Well, the American cotton farmer, we can produce1528the highest quality, most environmentally friendly, best crop,1529best cotton in the world. We cannot produce it cheaper.1530Unfortunately, between other countries, without as much1531regulatory environment and synthetics, we have been able to1532not--we have been unable to compete on a world market. Our1533domestic textile industry has been decimated, not only as a1534cotton farmer, but our whole industry, the domestic textile1535industry; the farm, or the gins, and cottonseed crushing1536facilities.1537 There is so much that goes into cotton production just1538beyond the cotton farmer. A lot of these small rural1539communities depend on all that. When you lose the cotton1540industry, you do not just lose the farmers, you lose the whole1541industry in America. We feel that the Buy American Cotton Act1542will reverse that trend and provide--allow us to use the power1543of the American consumer that consumes 40 million bales of1544textiles a year. It will allow us to bring that market back1545because there is rewards in there for domestic produced thread1546and fibre. There is a bigger tax credit, but it will allow us1547to--until our American mill industry comes back, further export1548cotton and then American cotton comes back in in garments that1549may have been produced overseas and brands and retailers get a1550tax credit. It will increase demand for American cotton.1551 Senator Tuberville. Thank you. Good explanation. Thank you,1552Mr. Chairman.1553 Chairman Boozman. Thank you. Senator Lujan.1554 Senator Lujan. Thank you very much. Thank you, Mr.1555Chairman, for calling this hearing and for our witnesses for1556being here. Taking time away from home, that is not always easy1557when you have other responsibilities, and that does not just1558include the farm, that includes the family. Thank you all for1559taking a moment.1560 Mr. Chairman, before I jump into questions, you know, I1561just wanted to reflect on something here. We all fought for1562seats on this Committee because we care about farms, we care1563about our ranchers, we care about people, we care about access1564to food. I was a little saddened by the markup that came out of1565the House of Representatives on the farm bill because it is not1566bipartisan. It did not take into account all of the programs1567that have been devastated that are hurting folks across the1568country.1569 I certainly hope, Mr. Chairman, that in the Senate, that we1570can show our House colleagues that we know how to count1571because, you know, growing up on that little farm, my1572grandparents, they taught me when I would go get those eggs1573that sometimes there were not eggs, and not to count them1574before they hatch also if we wanted some new chickens, and1575basic arithmetic around here seems to evade everybody. I do not1576understand. If we are going to talk about getting a strong1577bipartisan bill here that is going to help all of our farmers1578and our ranchers, and make sure we have food for people that1579are hungry, and that we are going to do something real here,1580that we find a way to do it, Mr. Chairman.1581 I just certainly hope that everyone hears that loud and1582clear. For me, if we cannot address the food problem that was1583created in some of these pieces of legislation of devastating1584access to food for hungry people, that should not be a starter1585for us because cutting these food programs and access to them,1586that hurts all the farmers across the country as well. Keeping1587grocery store shelves empty, that is not good for anybody. A1588big percentage of that dollar that is spent, I think, is 201589cents, when it comes to buying food in those grocery stores.1590That little bit amount, that is what goes to farmers and1591ranchers. Then, for all of our folks who are not here, that can1592of food, I mean, hell, they are already struggling because the1593cost of the tin that it takes to make the damn can, they cannot1594afford to do it anymore. Oddly enough, the tariffs, they do not1595hit--the can that has food in it that comes into America, just1596the empty can. I am just beside myself as I try to figure out1597all these crazy rules.1598 I am certainly hopeful that we will get there. We are1599seeing now additional kickers when it comes to the cost of1600fertilizer, the war in Iran. I did not realize that we got so1601much fertilizer input from that Strait, and I am now realizing1602how much that is hurting our farmers and ranchers back home as1603well. I just hope that we look at this farm labor shortage,1604there is a bunch of USDA staff that have been fired. A bunch of1605farmers and ranchers back in New Mexico tell me that it is1606great to get a farm bill, but if there is nobody at USDA to1607implement all these programs that we create and fund, they do1608not get any help. I certainly hope that when we talk about1609these programs that we have the USDA professional staff in1610place at the local level, at the federal level, to make sure1611that these programs actually get to families back home.1612 Now, in my remaining time, Mr. Perdue, I would like to1613begin by discussing the challenges facing specialty crop1614producers as well, and I hope we get a lot more attention in1615these spaces. We have gathered here today to talk about1616increasing domestic consumption of U.S.-grown agricultural1617products. In March 2025, USDA announced that the cancellation1618of two local food procurement programs that did just that:1619created a pipeline from local farmers to schools to food banks.1620The cuts at the LFPA and LFS made by USDA total about $9001621million. Now, farmers and ranchers back home told me that these1622cancellations had negative impacts on their operations. Can you1623speak to the uncertainty these cancellations had on fruit and1624vegetable growers, especially folks who had made purchasing and1625planting decisions based on these grants?1626 Mr. Perdue. Senator, appreciate the question, and certainly1627there were benefits to the LFPA program or from the LFPA1628program to North Dakota. There was $400,000-some in products1629purchased from North Dakota farmers, ranchers, processors that1630were then used to support hungry people through our Great1631Plains Food Bank. That is an important demand boost. We are a1632very rural state. If you want to have a base of demand for1633those small-scale direct marketing-type operations, you need1634some of that institutional demand, and pulling that away1635certainly had significant negative impacts for many of those1636producers.1637 Senator Lujan. I appreciate that. Mr. Chairman, as my time1638expires, I certainly hope we keep an eye on some of these as1639well because these are good for farmers and ranchers. Look, for1640folks that are saying why are all these senators sitting up1641there, they do not know a damn thing about our farms, look, my1642hands are cut up from cleaning a ditch this weekend as well.1643The Senate has made my hands a little softer, so all the1644calluses I had when I was a kid, they have kind of gone away. I1645made a joke this weekend that, you know, one of the things that1646prepared me to serve in this body is when my dad used to make1647me clean the shit out of the sheep barn as well, but, look, I1648took a shovel to a ditch this weekend. These things go back1649hundreds of years in New Mexico. It is how we get water going.1650I think that a few of us need to take more shovels to the dirt1651and understand what you guys are going through every day, so1652that we can fight for these programs that make a difference and1653make sure that we get to you as well.1654 Thanks for having me today, Mr. Chairman. I look forward to1655rolling up my sleeves, working with my colleagues. Mr.1656Grassley, let us make sure that we get more places to cut up1657that meat and get it served on the plate, brother. I look1658forward to working with all of you to get the work done.1659Thanks, everyone.1660 Chairman Boozman. Thank you. Senator Grassley.1661 Senator Grassley. I am sorry I missed all your testimony,1662but listening to your answers to questions of my fellow1663colleagues and what my staff said--who heard all the testimony,1664I think all of you said things that I would agree with. I want1665to thank you for your great representation of American1666agriculture, and thank you for coming and testifying. I think I1667am going to submit my questions for answers in writing, and1668give you some of my frustrations, and for the benefit of Iowa1669farmers and for the benefit of my colleagues here, some of the1670frustrations I have. I am going to start with a lot of things1671that have already been talked about here by my colleagues, but1672E15 and the importance of biofuels and Iowa being the number1673one producer of biofuels, with about 50,000 jobs implied with1674it, and a tremendous market for our corn.1675 One of the frustrations I have is dealing with these1676refineries in the RINS and things like that that are holding up1677getting E15 by legislation because the frustration comes from1678the fact that for the last year or two years of Trump 1 and now1679Trump 2, and then the four years of Biden in between, we had1680E15 by Presidential waiver and still have it by Presidential1681waiver, and not any of those six or seven years did I hear one1682peep out of refineries. Somehow, you are going to make it law,1683and I think somebody figures I can get my hands in the cookie1684jar and benefit from it because I know that some of these mid-1685sized refineries are billion-dollar businesses, and I am not1686hearing from any small refinery that is not making some money.1687What is the big deal? It is holding it all up, and we are not1688going to get that $14 billion that the economist for the Corn1689Growers Association says we are going to get if we cannot have1690E15 nationwide year-round, if we do not get it by law because1691you are never going to get the retailers to invest in the pumps1692that it takes unless they know it is permanent law. I just do1693not understand it, but we got to get it done.1694 Now, there is some good talk that we are getting close, but1695we were there in February until some refineries wanted to get1696their hand in the cookie jar, and then we do not get it in an1697appropriation bill. Then they tell me, well, there is a good1698chance it can pass the House of Representatives as a separate1699bill if they get this final agreement, but you are never going1700to get through the U.S. Senate as a separate bill. It has got1701to be put someplace, and that could be a five-year farm bill,1702it could be money for the Iran war when we supplement our1703Defense expenditures, it could be this housing bill that is on1704the floor right now, but there is no reason that we cannot get1705it done.1706 This is all going on at the same time that we got people in1707the Congress and maybe even in the Administration talking about1708we are going to give a handout to the farmers of a certain1709number of billion dollars in addition to the $12 that has1710always been there. How many times have we heard farmers in Iowa1711say, we do not want our money from the Federal Treasury, we1712want it from the marketplace, and that is what it is going to1713take? I heard my colleague from Iowa talk about 45Z. We have1714some regulations for 45Z, but it has not covered agriculture,1715and the only thing I want the Administration to keep in mind1716when it comes to regulations for farmers to qualify for 45B, do1717not make it as egregious as they did in 40B. Be a little more1718realistic when you require farmers to benefit from their1719cutdown on carbon.1720 My last thing deals with tariffs. I do not understand. If1721we are losing a dollar on corn, we are losing $2 on soybeans.1722If we can get the cost of production down a little bit, there1723is no reason we should have tariffs on phosphate coming out of1724Morocco when one company in the United States has 80 percent of1725the market. There is no reason we should have tariffs on1726anhydrous ammonia coming out of Trinidad when two companies1727dominate the market in the United States, and there is no1728reason we should have any tariffs on potash. You have heard me.1729My opinion. Thank you very much, Mr. Chairman.1730 Chairman Boozman. Thank you, Senator Grassley. Thank you.1731Senator Durbin.1732 Senator Durbin. Mr. Chairman, Senator Grassley, and I may1733disagree on college basketball teams, but we agree on1734everything else that he had to say.1735 Senator Grassley. Amen.1736 Senator Durbin. I have to tell you, you and I go back in1737this E15 debate to the days of gasohol. It goes back to gasohol1738a few years ago. I am with you all the way on what you had to1739say on both accounts. I listened--I had a hearing I had to be1740Ranking Member on, but I listened to your testimony, and there1741are three things that came out to me.1742 Mr. Duvall, you talked about farm labor. Going to put in a1743word that you do not hear too often, ``immigration,'' and we1744have to be honest about immigration. I have got farmers--dairy1745farmers, people who own orchards and the like tell me they just1746cannot get anybody to do it, help them, and they are going to1747give it up. They do their best, and they cannot, and those that1748had loyal employees that came in from Mexico, for example,1749bring their family every year. Good family relationship between1750the owners of the farm and the workers. They are scared to1751death to come to the United States right now. You know that for1752a fact, and I do, too. It applies not just to farming, but it1753applies to processing as well, and that is the reality. We got1754to get serious about immigration. When we did a bipartisan1755immigration bill, comprehensive bill, with John McCain, I was1756on that group of eight senators, we had a farm program. It was1757damn good. If we had it today, we would be much better off.1758 The second issue that I want to raise, and it applies to1759virtually everybody, is tariffs. I hear when a door closes when1760I meet with farm groups, and they know nobody can hear them,1761how frustrated they are with tariffs. Farmers have long1762memories. They can remember when Richard Nixon messed it up1763with Japan and put Brazil on the map for soybeans. Mr. Metzger,1764you know that story, and I think by and large, this tariff1765thing, now that the Supreme Court has given it the boot, I hope1766it does not come back. It is not helping. The third area is1767what the war in the Mediterranean is going to do to input1768costs. It has got to be bad when you consider what goes through1769the Strait of Hormuz. You got three things, three policy1770decisions by this Administration that are really putting us in1771a real challenging situation.1772 Mrs. Burns, I would like to ask you a question if I can,1773and I do not mean to pick on you, but one of the hottest--I1774have been around Senate for a while. One of the hottest debates1775I can ever remember in the Democratic Caucus was over the issue1776of GMOs. It went on for days, and people were madder than hell1777on both sides before it was over. We got a new debate coming1778up, and, you know, from Secretary Kennedy and others what it1779is. It is about processed food and what it means. Is it1780dangerous? Is it nutritious? What is it? Tell me, if your1781industry, specialty crops, is thinking ahead about a proactive1782position when it comes to alternatives to processed food, do1783you see some opportunity there?1784 Mrs. Burns. Yes. You are not picking on me. You are giving1785me an opportunity to address the question. I--we have such an1786opportunity here in the U.S. to increase domestic production by1787increasing domestic consumption. As I said earlier, only 1 in178810 Americans are eating the right amount of fruits and1789vegetables. That means 90 percent of Americans are not eating1790the right amount of fruits and vegetables. Just an increase of179110 percent would be $33.5 billion. If we got the American1792population to eat the amount of fruits and vegetables that we1793are eating in protein, 50 percent, based on the Dietary1794Guidelines, it would be an extra $134 billion.1795 Senator Durbin. Do you see this whole debate about1796processed foods as an opportunity then?1797 Mrs. Burns. I see an opportunity to drive incentives to1798purchase our products. If you think about SNAP, you know, if1799we--there are programs within SNAP that drive incentives for1800Americans to buy more fruits and vegetables in the SNAP1801program, so health is having a moment. You said it yourself,1802right? Health is having a moment right now. As a specialty crop1803industry, we must take advantage of that.1804 Senator Durbin. I go into a high school in Chicago, brand-1805new school, beautiful school. As we are leaving, I say, let us1806walk through the cafeteria. The principal says, we are in a1807hurry. I want to see what you are serving for lunch. I will1808tell you what they were serving for lunch. Corn dogs, pizza,1809tater tots. How about that for a meal? I think we can do a lot1810better, and I think we need to be proactive in that area. I am1811glad--I am so happy to hear that you are not taking a defensive1812position on this, but a proactive position, and I invite the1813others at the table to see it the same way. There is going to1814be a national debate about nutrition. Let us do our darndest to1815make sure it is balanced. Thank you, Mr. Chairman.1816 Chairman Boozman. Senator Hyde-Smith, who has been waiting1817patiently.1818 Senator Hyde-Smith. Thank you, Mr. Chairman, very much, and1819thank you to all of you for your willingness to come and1820testify. You have done very well, and I certainly appreciate1821your efforts because I know you could be doing a lot of other1822things, but we are certainly glad you are here.1823 We are talking about at this hearing ways to increase1824domestic consumption of U.S.-grown agriculture products and the1825Buying American Cotton Act, which I introduced last year, would1826achieve exactly that. I ask for unanimous consent, Mr.1827Chairman, to enter into the record a letter sent today to the1828Senate from industry stakeholders, textile mills, major brands,1829and retailers, and farm bureaus from across the country, many1830represented on this Committee, companies like Target, America1831Trench, Gap, Dignity Apparel, all support this initiative.1832 Chairman Boozman. Without objection.1833 [The letters can be found on pages 106-110 in the1834appendix.]1835 Senator Hyde-Smith. Thank you. Congress must deliver on two1836things to save American agriculture before it is too late,1837before we have to rely on foreign adversaries such as China to1838feed and clothe us. It is imperative that we, one, provide an1839additional round of short-term support to supplement the1840Farmers Bridge Assistance Program until the achievements of the1841One Big Beautiful Bill Act become available, which is going to1842be later in October. Two, invest in a long-term, demand-1843building initiatives, such as Buying American Cotton Act, which1844will reduce our reliance on ad hoc assistance and farm bill1845safety net programs in the future. This will help keep American1846farmers and ranchers in operation while saving tax payer1847dollars down the road.1848 Not long ago, a colleague from a state that does not grow1849cotton asked me, ``Why should we support the cotton industry?1850It is too small for us to care about and we do not grow it in1851my state. Last year, the U.S. grew more than 95 million acres1852of corn, 83 million acres of soybeans, but less than 10 million1853acres of cotton. Synthetic fibers are on the rise anyway.''1854Well, here is why we should care about the U.S. cotton industry1855and passing this Buying American Cotton Act. While cotton1856planted acreage is small compared to other major row crops, its1857economic output and associate jobs dwarfs other major row crops1858on a per-acre basis.1859 Just do the math. The supply chain is far more intricate1860than other major row crops. That means jobs, money. More jobs1861and more money. U.S. producers now have to export, as it has1862been mentioned before, more than 85 percent of the cotton they1863grow. We can use it right here. Just think about it. Most1864products Americans use today are made of synthetic fibers or1865foreign-grown cotton from Brazil and China. In Mississippi we1866grow a lot of corn, soybeans, rice, sweets, sorghum, peanuts,1867and cotton. Some see year-round E15 as a long-term fix for Ag.1868Some point to the clean fuel tax credit. The list goes on, but1869if we pick winners and losers among commodities, we have1870already lost.1871 We in Washington need to adopt a comprehensive strategy for1872domestic consumptions that lifts all of American agricultural1873products. That is how all growers benefit, and it is the only1874fix worth having. Today, I am here to emphasize that complex1875problems are rarely solved with one simple solution and that1876the Buying American Cotton Act should be part of the overall1877solution that we are seeking.1878 This question is for Chairman Reed and President Duvall.1879How would the Buying American Cotton Act support producers and1880the entire cotton supply chain, and what will happen if1881Congress fails to strengthen the domestic cotton market?1882 Mr. Reed. First, representing the cotton industry, I would1883very much like to thank you for co-sponsoring this bill. As you1884know, cotton has been in a big decline. Your State of1885Mississippi. I am from Arkansas. As you know, in that region of1886the country, we have much higher production costs. We depend on1887crops that are higher-gross crops, higher-value crops, and1888cotton is one of those. In addition to that, we have the whole1889infrastructure that surrounds it, as we discussed, but we are1890in a dire situation in cotton due to cheap domestic--or cheap1891polyester and cheap foreign cotton. This is a way for us to1892leverage the American consumer to help support our industry,1893and there will be some cost offsets because the price of cotton1894goes up, PLC payments go down to farmers. It is a win-win1895across the board and also supports the industry, the whole1896industry, all the way through the supply chain.1897 Mr. Duvall. Thank you, Senator. Wore my cotton tie today. I1898do not grow cotton, but I know how hard they are struggling out1899there for that. Your bill will incentivize companies to use1900American-grown cotton, which is a good thing for our cotton1901farmers. They need a market here in our country. When NAFTA was1902passed and all our textile mills left and went overseas, that1903is where our cotton had to go to, and now we need that1904production to come back to this country so that we can give1905them.1906 The key thing is not only will it help farmers. It is going1907to help rural communities. We have lost 1,700 cotton gins since19081980. Seventeen hundred. That infrastructure will never be1909replaced again. Never be replaced again, and all the jobs that1910went with it and all the communities that depended on that1911infrastructure just went away, and we have seen it all over the1912Southeast and Southern part of our country. That bill will be a1913tremendous help, not only to farmers--cotton farmers, but it1914will be a big help for our rural communities in those areas of1915our country.1916 Senator Hyde-Smith. Yes, because we want corn growers to1917grow corn, but we want cotton growers to grow cotton. I think,1918Mr. Bower, you mentioned that in a podcast this past week. I1919had a question on that, but I am out of time, but thank you1920again for your willingness.1921 Chairman Boozman. Thank you. Senator Warnock.1922 Senator Warnock. Thank you, Brother Chair. Look, I am all1923for helping our farmers sell their crops across the country,1924and coming from the State of Georgia, I certainly support any1925efforts to strengthen and bolster the hands of our cotton1926growers. We are talking about increasing American markets1927today, in part, because international markets have been1928decimated by the President's tariffs. We need our growers to be1929able to sell here in the United States, certainly, but we also1930need them to be able to sell globally. The President's1931tariffs--taxes, which is what it is, taxes--have increased the1932cost of everything farmers need, like fertilizer, fuel, and1933equipment, and it is eroding the very slim margins that they1934already had left. It is a tough business. I spend a lot of time1935with our farmers all across the state, and I admire people who1936are just really committed to that work. Farmers, for me, are an1937answer to a basic prayer that we Christians pray all the time,1938``Give us this day our daily bread,'' and the margins are thin.1939There is so much that you cannot control. The President's1940tariff taxes have made a tough business even tougher.1941 Mr. Duvall, it is good to see you again. Always good to see1942you, and thank you again for your leadership, first over the1943Georgia Farm Bureaus, and now, the American Farm Bureau. Now1944that we are approaching a year into the tariffs, what is the1945latest that you are hearing from farmers about the effects on1946their business since last April?1947 Mr. Duvall. Well, it has been--it has been very difficult1948for our farmers because it has raised the cost of inputs. Some1949have been exempted, not all, but the loss of markets--we lost1950some markets in the first trade war that we never recouped.1951Now, we are very appreciative of the work the Administration1952has done in opening up some of that market, but it--we have not1953gotten back to the place that we were in the first trade war.1954We had promises of frameworks of trade treaties all over the1955world. I understand eight of them have been closed. We are very1956appreciative of that, but until we see ships leaving the dock1957with our products in it going to a destination, our farmers are1958not going to find any relief.1959 When it comes to fruits and vegetables, and you want to1960talk about USMCA and we are coming up on a review, it is so1961important for us to renew that, but it is so important for us1962to have something like a rapid response technique to be able to1963deal with the flooding or dumping of products from other1964countries. You know, we--our fruits and vegetable guys are1965devastated because when they go into production, these other1966countries will dump product in there and just destroy the1967market, and it takes it below the cost of production for our1968specialty crops.1969 The other play thing is we need to emphasize the importance1970of our Federal Government, when they purchase foods, that they1971purchase American-grown food, and we have to protect those1972markets so that we give farmers certainty that they can stay in1973business, produce fruits and vegetables. You realize that our1974school system, 94 percent of the fruits that are served in our1975school system come from out of country--94 percent--53 percent1976of the vegetables. Why? Because we probably cannot--we do not1977have the producers producing it because there is no certainty1978there. They do not have any risk management tools, and there is1979no protection from dumping from other countries, and those1980things need to be solved before we can get the certainty out1981there and bring young people and farmers back into the business1982of producing specialty crops.1983 Senator Warnock. Well, absolutely, and, you know, as the1984Ranking Member on Trade for the Finance Committee, I will be1985taking a close look at USMCA. On the other hand, you know, I1986think it would help if we could get a farm bill----1987 Mr. Duvall. Yes.1988 Senator Warnock [continuing]. a bipartisan farm bill,1989passed through this Congress. I was glad to see that the USDA1990admitted that farmers have been hurt by the President's1991tariffs. It is one thing to have a theory of the case. The1992President clearly had a theory of the case. He has had it about199330 years. I am not sure that he is responding to facts on the1994ground, but now that we are beginning to hear from farmers,1995they have admitted as much by providing a bridge payment1996program, but I was--and I would point out that farmers, while1997they appreciate the bridge payment program, what I am hearing1998from farmers all the time, and Senator Grassley said the same1999thing, we want trade, not aid, but here we are.2000 I was disappointed to see that only $1 million of the $122001million was dedicated for specialty crop farmers. As a former2002president of the Georgia Farm Bureau, you know as well as2003anyone how important specialty crops are, like blueberries,2004peaches, and peppers. What is your view on how much of the2005funding is going to specialty crop farmers based on your2006understanding of their specific market conditions? I know I am2007running out of time, Mr. Chair.2008 Mr. Duvall. One million does not even come close to2009covering the losses that we had in specialty crop. Like in2010other programs that are there to protect producers, specialty2011crops do not have those risk management tools, and they do not2012get the attention that they need because in this country, the2013consumer is wanting more and more of those fruits and2014vegetables. To compound that problem is the lack of labor. It2015is a lot more labor intense. We do not have the labor to2016actually get out in the field, pick it, harvest it, and get it2017to the stores.2018 Senator Warnock. Across-the-board tariffs putting pressure2019on farmers, an immigration policy that is so unforgiving that2020you are struggling with labor, and now we are facing USMCA. All2021of these make for a difficult mix for our farmers. I think we2022need to sit with the farmers, hear what they are saying, and2023then we have a chance of getting the policy right. Thank you so2024very much for your work, and thanks to all of the witnesses.2025 Chairman Boozman. Thank you. Senator Fischer.2026 Senator Fischer. Thank you, Mr. Chairman, and thank you to2027our witnesses for being here today.2028 It is no secret that we are facing challenging times right2029now with the farm economy all across this country, so I2030appreciate this hearing and the need to reinforce how we can2031grow demand. While it has been touched on already, it is really2032important for me to underscore the importance of biofuels as a2033key demand driver for the Nebraska crops. Not only do biofuels2034drive demand for our crops, but they play a crucial role in our2035energy security. There are several ways before us that Congress2036and the Administration can and should take action, and they2037should take it immediately, that I would like to touch on.2038 Mr. Bower, through a patchwork of regulatory actions, we2039have had year-round E15 now since 2019, but that patchwork of2040emergency fuel waivers does not provide certainty. How does2041Congress passing a year-round E15, which I have had a bill for2042that for 10 years, how does that translate into greater corn2043demand?2044 Mr. Bower. Well, Senator, thank you for being such a2045champion on this issue. Your leadership has given us all hope.2046As I have mentioned before, you know, this is just truly at a2047point that was pivotal for the American corn farmers. You know,2048E15 would provide certainty to the retailers, which in turn2049builds the infrastructure out to lower the cost for consumers,2050and then in turn bring that back to the corn farmer in a time2051when we are so desperately in need of some relief. I cannot2052emphasize how much it would mean just to my operation and to2053all my friends and colleagues across the country. We are all in2054a tough time, and it is not only the growers, but the consumers2055as well, saving them at the pump. We have to have that2056certainty for that infrastructure to go in and for people to2057have the ability to find that at every station.2058 Senator Fischer. I appreciate you talking about consumers2059because this is a way that we can save consumers money every2060time they fill up at the pump, so thank you for mentioning2061that. Mr. Metzger, the RFS Set 2 rule is currently pending at2062OMB for soybeans. Can you discuss what strong RVOs will signal2063to the market?2064 Mr. Metzger. Yes, thank you, Senator. With the strong RVOs2065that are in the Office of Budget and Management, it is going to2066be critical. We get up into that 5.61-billion-gallon area, with2067it--and that is going to be a lot of bushels that is used up2068domestically here, and it will help crush and oil together to2069get to get bushels used up and help drive some of this domestic2070demand that we are needing. The soybean farmers are in the same2071boat. You know, this last year we were about $109-an-acre loss.2072We are also the lowest on the FBA payment. It is--you know,2073things like this are going to be critical for American soybean2074farmers to be able to become more economically viable in the2075future.2076 Senator Fischer. When our corn and soybean farmers are2077successful, our rural communities are strong and the heartland2078of this country is strong. Rural America has value, and2079sometimes that is hard to explain to some of my colleagues, but2080it is so important that we continue to find that dignity in2081hard work, to find that value in strong communities and strong2082families. Thank you both.2083 Mr. Duvall, welcome. Good to see you. As I mentioned, E152084is a significant byproduct of corn, and it has helped add value2085and utilize more out of reach bushel of corn--of each bushel of2086corn. With Nebraska being the beef state, beef byproducts are2087also essential in driving domestic and international demand.2088From hides to specialty cuts, the industry has significantly2089increased its efficiency in using those cattle carcasses. We2090also have seen interest from some producers, whether in the2091cattle, dairy, or hog industries, of turning animal waste into2092potential streams of revenue. Mr. Duvall, how do we continue to2093bolster the development of new byproducts for the livestock2094industry, and what opportunities do you see for maximizing2095potential revenue streams from all livestock production?2096 Mr. Duvall. Well, thank you, ma'am. Thank you for the2097opportunity and your question, which is not a real simple one2098to answer, of course, because most of that market for those2099byproducts is overseas, and that means good trade treaties and2100making sure that we can move those products out of here, and2101giving individual farmers access to that. One of the big2102problems is, you know, to have those byproducts that a farmer2103can use. A farmer does not have any place to take their animals2104on a small scale. The big four packers dominate it, and it is2105very difficult to find local processing plants for smaller2106amounts of cattle that could be--or any livestock to go2107through. To help small processing plants to be able to be2108developed with low-interest loans or some kind of grants so2109that they can sustain themselves in these communities would be2110big.2111 I am in the beef business myself, and I would love to take2112a certain percentage of my cattle straight to the consumer, but2113there is nowhere within 400 miles of me to be able to process2114it and get it done, so it is not practical to do that. We need2115more small processors around so that farmers can utilize2116straight to the consumer, and also take some of those2117byproducts and expand on it, but research and development2118dollars and investment in that infrastructure to be able to2119handle that would be a necessity.2120 Senator Fischer. I agree with you. As the beef state, we2121have cow-calf production, we have backgrounders, we have large2122and small feedlots, and we have three of the four big packers2123in the state. We are also seeing growth of smaller packing2124plants in Nebraska, and I agree that that is a direction we2125need to go, and one way we can address that, I think, at the2126federal level, is looking at the regulatory environment that2127affects all of agriculture. That sometimes is a really large2128hindrance when you are looking at putting up those smaller2129packing plants that can help smaller communities and still be2130able to thrive in a marketplace with the big four. Thank you.2131 Mr. Duvall. The regulatory requirements and the cost that2132goes with that, and the lack of technology that we are allowed2133to use in those smaller plants and whether or not they could2134afford it. It is just like any other technology or innovation2135that comes down the pipe. Bigger producers can afford that,2136where smaller- and middle-sized producers cannot afford it, and2137it is putting pressure on them and pushing them out of2138business, whether it be a processor or a small family farm. We2139have to bridge that gap to make it affordable so that they can2140use those innovation and technology in the future to preserve2141that small family farm that American people are in love with.2142 Senator Fischer. I have got some bills on that with2143precision agriculture to be able to have our small farmers take2144advantage of all that really cool technology out there that2145will help them be more profitable, and it is also good for2146their economy, but the environment as well. Thank you, sir.2147Thank you, Mr. Chairman, for allowing me to continue over my2148time.2149 Chairman Boozman. No, thank you. Senator Marshall.2150 Senator Marshall. Thank you, Mr. Chairman, and welcome to2151all of our guests, our witnesses. We do appreciate you being2152here.2153 Mr. Duvall, if I told you I have export market that we2154could double overnight, that we typically export about 22155billion bushels of corn, maybe 2.3, but we have a new market2156that would add an additional 2.5 billion bushels of corn2157consumption, would you be excited about that?2158 Mr. Duvall. I would be real excited and celebrate with you.2159 Senator Marshall. Yes, and of course, we have got that in2160our backyard. By going to year-round E15, it would be the2161equivalent of doubling our exports, and the beauty of that is2162we do not have to depend upon the ups and downs of having to2163deal with another country and maybe a different administration,2164all these types of things. This would--this would--how big of a2165win would this be, Mr. Duvall?2166 Mr. Duvall. It would be tremendous.2167 Senator Marshall. Yes. Mr. Bower, is there anything to add2168how important year-round E15 is? Is there anything that is a2169bigger priority right now for agriculture that could really2170change net income today?2171 Mr. Bower. You know, when you talk about all the bushels,2172Senator, and the amount of acres corn happened to cover this2173past year, I mean, a lot of farmers are looking for a way to2174make a profit, and they are hoping this is the light at the end2175of the tunnel. I think we have seen a lot of acres transition2176just for the hope that we are going to get E15 and we might2177bring some profitability back. That is--that is our number one2178priority, and we truly hope that it gets over the line here2179soon.2180 Senator Marshall. Yes. Then, if I told you that I have2181another export market that would consume even more corn than2182year-round E15, and I talked about 45Z, what would be the go2183ahead? Again, Mr. Bower, what would be the impact of 45Z2184potential market?2185 Mr. Bower. Again, Senator, absolutely tremendous. You know,2186the American corn farmer is the best in the world at raising2187corn. You give us a--give us a goal, we will raise the corn,2188and we will produce the corn. We just need the markets.2189 Senator Marshall. This is the number one ask I had for2190President Trump and his team going into the election is to2191proceed with 45Z, and it is here. We even got undenatured2192alcohol in there so that we can export it as well. Mr. Duvall,2193are you all happy with the President's rules for the 45Z?2194 Mr. Duvall. Currently, we are. Of course, we could always2195modify them a little bit, and I do not want to get into the2196weeds of that, but yes.2197 Senator Marshall. Okay. Looking through, Mr. Duvall, your2198own--your graphs here, it is very enlightening that we saw a2199record decline in net farm income in 2023 and 2024, net drop in2200farm income in 2023 and 2024. Then, we talk about input costs,2201and I think that is probably the number one challenge right now2202is input costs. Input costs stayed stable in 2016, 2017, 2018,22032019, 2020. In 2021 we saw, it looks like, just a record2204increase in input costs, and they continued upward, but they2205have not come down. People tell me usually input costs come2206down when the commodity prices come down, and, you know, I will2207open it up to anybody. Why did the input costs go up so much,2208and then what are the solutions?2209 Mr. Bower. Senator, I guess I will start. The input costs2210went up because they could. Nobody told them they could not. As2211farmers, you know, we are left out in the weather, in the cold,2212and there has been a lot of consolidation in that realm. With a2213lot of the things happening around the world, our ability to2214source fertilizer and inputs has really declined, and we are2215left stuck with what we got.2216 Senator Marshall. When you say no one told them they could2217not, what you are really referring to is a concentration of2218industry.2219 Mr. Bower. Yes, Senator.2220 Senator Marshall. When we speak of--speak of input costs,2221really what we are talking about are chemicals and fertilizers.2222They would be the big chunk of input costs. You know, certainly2223diesel fuel is in there as well. Until nine days ago, diesel2224fuels were coming down----2225 Mr. Bower. It really was, yes.2226 Senator Marshall [continuing]. and even interest is a huge2227expense for farmers.2228 Mr. Bower. Right now.2229 Senator Marshall. The average Kansas farmer, a million-2230dollar operation, loan interest rates went from two to nine2231percent overnight, so it is good that that is coming down as2232well. Mr. Duvall, anything to add on input costs? You know,2233why, and what can we do to help impact these?2234 Mr. Duvall. We know the events around the world with the2235war in Ukraine and now the war in Iran is not helping things at2236all, and it has been challenging. Of course, we have encouraged2237the people that are providing those inputs to be more2238transparent so that we could more understand on the farm why2239those increases have come so high. The other increase you have2240not even mentioned is increase of machinery.2241 Senator Marshall. Yes.2242 Mr. Duvall. I mean, if you just--I do not grow cotton, but2243I know you cannot touch a cotton picker for less than $12244million, and it does one thing: it picks cotton for about a2245month.2246 Senator Marshall. Yes.2247 Mr. Duvall. It does one thing, and, you know--and it has--2248and it has probably doubled in price in the last five or six2249years. There is really no explanation other than what is2250happening around the world, and I think there needs to be more2251transparency so that we can understand why these inflated2252prices are there.2253 Senator Marshall. Okay. Mr. Chairman, I think I will just2254leave it there. Thank you.2255 Chairman Boozman. Thank you very much. I just got a couple2256more things. Matt--Mr. Perdue--tell me--you know, I had a2257situation--this has been probably five or six years ago--where2258I was at a meeting and they were talking about sweet potatoes,2259and actually, I was meeting with a guy. This was a guy that2260farmed all kinds of stuff and just a guy that knew how to make2261it work. You know, he is like, you-all, at the top of your2262fields. He--I told him, I said, I am going to go to a meeting2263about sweet potatoes. You know, there--again, not a lot grown2264in Arkansas, and he was intrigued by that. He said, well, I am2265going to come with you, so he would, you know, get in the car2266and go over there. He looked at the presentation, researched2267it, and then wound up planting a bunch of sweet potatoes and2268made a bunch of money out of it. I do not know what they are2269doing now or whatever, but at that time, again, savvy guy.2270 Are we doing a good job in informing our producers, our2271farmers about the alternatives? You know, again, we are in a2272situation now where this is not--this is not the first year it2273has been bad. What is making this year so bad is it is the2274third year of being bad, and I see John Newton out in the2275audience, our great economist. He is going to tell us that next2276year does not look a whole lot better, okay. It really makes it2277difficult and, you know, these years doubling up. Are we doing2278a good job of telling the agriculture community to, you know,2279to start looking for ways to look into different crops, not2280necessarily not doing their own crops, you know, or what they2281are used to, but in addition?2282 Mr. Perdue. Senator Boozman, I appreciate the question, and2283there is always room to improve research and extension, and2284making sure that producers understand the opportunities2285available to diversify their operations. Where I think there2286really needs to be a focus is creating those market2287opportunities. You know, on our farm, we raised malt barley for2288many years, and we do not do that anymore because there is not2289local contracts. I think that is a good reminder to us all to2290drink more beer, but I think it also demonstrates that, you2291know, you need to have that local market outlet.2292 On the other hand, you see in Southwestern North Dakota,2293there was hardly any corn raised for grain there 15, 20 years2294ago. There is an ethanol plant now. A lot of people have a lot2295of success raising corn for grain and selling it to an ethanol2296plant. The market opportunity is what people need, and we need2297to make sure that we are providing more diverse market2298opportunities for producers.2299 Chairman Boozman. Let me ask you, Mr. Metzger, in regard to2300that. You know, as we have, you know, some things coming on the2301line with opportunity, are we worried about people changing2302their planning decisions, and then you are in a situation where2303everybody is growing, and then you have increased--you have got2304increased supply and then that lessens your cost?2305 Mr. Metzger. Yes. Thank----2306 Chairman Boozman. Does that make sense?2307 Mr. Metzger. Yes. Thank you, Chairman. Yes, that is--yes,2308that is always an issue depending on, you know, how rotations2309go every year. You know, the--in the--we get in these tighter2310economic times like this, a lot of times there will be more2311soybeans planted, an increase in soybeans and a little bit2312decrease in corn acres. That would be a concern, but that is2313where, you know, we get some of these--some domestic demand use2314up with it, get the--get the RVOs out, and that will help--that2315will help those increased acres that we have, you know, if2316the--if the higher yields come to fruition with it.2317 Chairman Boozman. Very good. Cathy, you got any words of2318wisdom as we leave?2319 Mrs. Burns. Yes. I am so excited that they grew sweet2320potatoes. Those are our people.2321 Chairman Boozman. No, that is good.2322 Mrs. Burns. That means the demand for sweet potatoes must2323have been increasing.2324 Chairman Boozman. Yes, yes.2325 Mrs. Burns. Right now, specialty crops are grown in all 502326states, and the easiest way for us to look at expanding2327domestic production is by expanding domestic consumption and2328also opening markets. Absolutely, our growers will grow2329anything. They will increase their acreage if the markets are2330there and the demand is here domestically, and at the end of2331the day, it will improve the health of all Americans.2332 Chairman Boozman. How many specialty crop producers have we2333lost in the last 20 years?2334 Mrs. Burns. Well, total farms over the last two decades is2335about 230,000.2336 Chairman Boozman. It is about 80--it is like 80 percent,2337isn't it?2338 Mrs. Burns. Yes, I mean, it is--you know, and it is a2339significant amount, so----2340 Chairman Boozman. Yes, yes.2341 Mrs. Burns [continuing]. because of the high input costs,2342because of the labor challenges. I mean, that is the biggest2343challenge is if you think about--if we could just get 502344percent of Americans eating the recommended amounts of fruits2345and vegetables, imagine the labor----2346 Chairman Boozman. Right.2347 Mrs. Burns [continuing]. it is going to take to harvest2348that.2349 Chairman Boozman. Well, my concern is, again, you know, we2350can look at specialty crops. This stuff, like I say, did not2351start this year. You know, it started a long time ago, this2352slide, but they are such a great example of what can happen in2353the sense of losing so much. My concern is that is going to2354spread, you know, across the commodity sector also. We need to2355beef up specialty crops. We need to protect what we have in the2356commodity sector, and that is really going to take all of us2357working together.2358 We appreciate you. Today was very helpful. I cannot tell2359you how busy it is around here. It is busy right now. There is2360lots going on, but we had all kinds of Members come and2361participate, so you can be very proud of that. That says a lot2362for you all, that they actually wanted to hear what you had to2363say. Again, we appreciate it, and the way you can help us, and2364I speak for myself and Senator Klobuchar, just let us know--let2365us know what you are thinking. You are not a bashful bunch at2366all, we do not have to worry about that, but we really do2367appreciate all that you do and helping us get through a very,2368very difficult time. Thank you very much.2369 With that, the--I got to do my--where is my stuff? Okay.2370The record will remain open for five business days.2371 Chairman Boozman. Today's hearing is now adjourned.2372 [Whereupon, at 5:19 p.m., the Committee was adjourned.]23732374=======================================================================23752376 A P P E N D I X23772378 March 10, 202623792380=======================================================================23812382[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]23832384=======================================================================23852386 DOCUMENTS SUBMITTED FOR THE RECORD23872388 March 10, 202623892390=======================================================================23912392[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]23932394=======================================================================23952396 QUESTIONS AND ANSWERS23972398 March 10, 202623992400=======================================================================24012402[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]24032404 [all]