Key Takeaways
- •Luke Lindberg (Under Secretary for Trade and Foreign Agricultural Affairs, USDA) announced the agricultural trade deficit is forecast to drop to $29 billion, a $14.7 billion improvement from 2025.
- •Lindberg testified that USDA secured 18 trade frameworks to restore reciprocity, including ethanol commitments from Guatemala and the UK and expanded meat access in Vietnam and Thailand.
- •Rep. Harris (R, MD-1) pressed Lindberg on implementing "Buy American" requirements for the $100 billion SNAP program to further reduce the agricultural trade deficit and support domestic producers.
- •Rep. Harris (R, MD-1) praised "America First" trade policies, while Rep. Bishop (D, GA-2) and Rep. Wasserman Schultz (D, FL-25) criticized the administration's tariffs and the "unlawful" gutting of USAID.
- •USDA will issue new funding opportunities for Food for Peace next month as the administration prepares for the July joint review of the USMCA trade agreement.
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Hearing Analysis
Overview
The House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies held an oversight hearing on March 4, 2026, to review the operations of the U.S. Department of Agriculture (USDA) Trade and Foreign Agricultural Affairs mission area. The hearing focused on the Foreign Agricultural Service (FAS) and its efforts to reduce the national agricultural trade deficit, which had reached nearly $50 billion during the previous administration. A primary topic of discussion was the recent interagency agreement transferring the administration of the Food for Peace program from the United States Agency for International Development (USAID) to the USDA. Chairman Andy Harris (R, MD-1) opened the hearing by praising the USDA’s shift toward an "America First" trade policy, highlighting the launch of the America First Trade Promotion Program and the modernization of the Export Credit Guarantee Program (GSM-102).
Key Testimony
Under Secretary Luke Lindberg (Under Secretary for Trade and Foreign Agricultural Affairs, USDA) testified that the administration is successfully reversing the trade deficit, forecasting a reduction to $29 billion for the current fiscal year. Lindberg outlined a three-pillar strategy: securing better trade deals, strengthening buyer-seller relationships, and holding international partners accountable. He cited several recent successes, including a 50-million-gallon ethanol commitment from Guatemala, an $8 billion agricultural purchase framework with Japan, and tariff eliminations in Thailand. Lindberg also introduced "Trump missions"—officially known as Trade Reciprocity for U.S. Manufacture and Producer missions—which are rapid-response trade missions designed to place American producers directly into markets where new reciprocal agreements have been secured.
Partisan Dynamics
The transfer of the Food for Peace program from USAID to USDA sparked significant partisan debate. Chairman Harris and Under Secretary Lindberg argued that the USDA is better equipped to handle commodity procurement and that the move ensures 100% of the aid consists of American-grown products shipped on American-flagged vessels. Lindberg noted a recent $452 million agreement with the World Food Programme (WFP) to purchase 211,000 metric tons of U.S. commodities. Conversely, Ranking Member Sanford Bishop (D, GA-2) and Rep. Debbie Wasserman Schultz (D, FL-25) expressed outrage over the "destruction" of USAID, citing a 21% loss of staff and the loss of decades of humanitarian expertise. They questioned whether the USDA’s 150 foreign service officers could effectively manage global famine and war-related aid compared to the thousands of personnel previously employed by USAID.
Industry Impact
Industry-specific impacts were a major focus for subcommittee members. Rep. Ashley Hinson (R, IA-2) and Rep. Marcy Kaptur (D, OH-9) emphasized the importance of biofuels, with Lindberg confirming that the administration is aggressively promoting U.S. ethanol in markets like the United Kingdom, Vietnam, and Indonesia. Rep. Scott Franklin (R, FL-18) and Rep. Wasserman Schultz highlighted the struggles of Florida’s specialty crop industry, particularly citrus and tomatoes, which face intense competition from Mexican imports. Rep. Franklin urged the use of the upcoming United States-Mexico-Canada Agreement (USMCA) joint review in July to implement seasonal tariff-rate quotas to protect domestic growers from "dumping." Rep. Marie Perez (D, WA-3) raised similar concerns regarding Canadian timber and the disadvantage U.S. cranberry producers face in European markets compared to their Canadian counterparts.
Organizations & Entities
Partisan dynamics were sharply defined by differing views on trade protectionism. Chairman Harris proposed a "Buy American" requirement for the $100 billion Supplemental Nutrition Assistance Program (SNAP), suggesting that mandating domestic sourcing for federal nutrition programs could further eliminate the trade deficit. Rep. Lauren Underwood (D, IL-14) and Ranking Member Rosa DeLauro (D, CT-3) countered that the administration’s "erratic" tariffs have led to retaliatory measures from China, hurting Illinois soybean farmers and driving up domestic food prices for consumers. Rep. Underwood also criticized the administration’s support for industrial farming chemicals like glyphosate, citing health concerns from the International Agency for Research on Cancer (IARC).
Key Testimony
Several organizations were central to the testimony. The USDA and its Foreign Agricultural Service (FAS) were the primary subjects, tasked with implementing the new trade pillars and the Food for Peace program. USAID was discussed in the context of its diminished role and the transfer of its humanitarian functions. The Office of the United States Trade Representative (USTR) was identified as a critical partner in negotiating the USMCA and enforcing reciprocity. The World Food Programme (WFP) was mentioned as the primary delivery mechanism for the USDA’s initial Food for Peace awards. The Codex Alimentarius Commission (Codex) and the Food and Agriculture Organization of the United Nations (FAO) were referenced regarding the establishment of international science-based food safety standards. Industry groups like the U.S. Grains Council and the Bioproducts Council were noted for their collaboration on biofuel exports.
Policy Proposals
Regarding next steps, Under Secretary Lindberg committed to providing the subcommittee with detailed readouts of recent trade agreements and staffing plans for the Food for Peace program. The USDA plans to issue a new Notice of Funding Opportunity (NOFO) for competitive Food for Peace awards in the coming month. Additionally, the administration is preparing for the USMCA joint review in July 2026, where issues regarding Canadian dairy access and Mexican specialty crop imports are expected to be prioritized.
Transcript
Good morning. The Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies will come to order. I want to welcome everyone to this oversight hearing with USDA's Foreign Agricultural Service. We're pleased to be joined by the Under Secretary for Trade and Foreign Agricultural Affairs, Luke Lindberg. Mr. Lindberg, welcome to the subcommittee. I look forward to hearing about your priorities for the coming year and the work that USDA is doing to promote trade and open new markets for U.S. commodities. With nearly 100 overseas offices covering more than 180 countries, the Foreign Agricultural Service acts as the voice for American agriculture on the world stage. You provide the on-ground support to U.S. agricultural interests, identify and open new markets for American products, help negotiate trade deals, analyze market conditions, cut through red tape to reduce barriers to exports, and navigate international standards on behalf of our farmers. In a time when our nation's producers are still suffering from the misguided policies of the last administration, facing high record input costs and unprecedented pressures from labor shortages, severe weather, pests, and disease, what you do is more important than ever. Your agency's work is a critical and often overlooked piece of America's farm economy. As you and Secretary Rollins seek to reduce the nearly $50 billion Biden-era agricultural trade deficit, I applaud your work in setting an America First trade policy and working aggressively to expand market access and enhance the global competitiveness of American products. Already, you've launched the America First Trade Promotion Program, expanded financing options under the Export Credit Guarantee Program, and negotiated historic trade deals. And you were only confirmed six months ago. As the subcommittee that champions American agriculture and our nation's farmers, I think we're all looking forward to hearing what comes next. In addition to trade opportunities, I'd like an update on the interagency agreement moving administration of the Food for Peace program to USDA. As the experts in commodity procurement and given USDA's successful implementation of the Food for Progress and the McGovern-Dole Food for Education programs, it makes sense that Food for Peace should also be implemented by USDA. It's been just over two months since the agreement between USDA and the State Department was signed and already you have announced your plan to spend $452 million to purchase 211,000 metric tons of American-grown commodities, which will be shipped abroad on American-flagged vessels to feed those in need overseas. I was pleased to see this critical step taken so quickly, and I hope you plan to move expeditiously to get the remainder of the FY 25 balances and the entirety of the $1.2 billion this subcommittee provided for FY 26 out the door very soon. Mr. Lindberg, as you work to advance America First trade policy on the world stage, I hope this subcommittee can and will be a valuable and active partner. Again, I appreciate you being with us and look forward to today's discussion. I'll now turn to my colleague, Ranking Member Bishop, for his opening remarks.
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