Hearings to examine increasing domestic consumption of United States-grown agricultural products.

Good afternoon and it's my privilege to call the meeting to order. I thank my colleagues for joining us today. I also want to thank our witnesses for being here. Many of you farm and we all know that it's important time of the year for you to be on the farm as you prepare to plant your next crop. Today's hearing comes at a time of great financial stress for America's farmers. If you're putting something in the ground, you're probably losing money. It doesn't matter what you're planting or where you're planting it. No row crop is currently profitable. In my home state of Arkansas, the last three years have been absolutely punishing and again, that goes across the board with our row crops and all of agriculture except for cattle. Arkansas now holds the unfortunate distinction of leading the nation in Chapter 12 farm bankruptcies, a sobering statistic. I remain committed with my colleague Senator Hoeven from North Dakota and every literally every one on the committee to pursue additional financial assistance for our farmers to lengthen and widen the farmer bridge assistance program that President Trump announced in December, which is so, so very important. The recent history of high input cost, high labor cost and high interest rates coupled with lower prices and significant trade headwinds for certain commodities should give us all good reason to think about what the future of agriculture in the United States should look like. It's clear that China is not a dependable trading partner and that Brazil is doing everything that it can do to take over the agriculture markets that traditionally have been dominated by the United States. I commend the administration for pursuing new markets and holding our trading partners accountable. Agricultural trade must remain a high priority, one of the highest priorities for the United States. Expanding market access and developing new trading partners is crucial to the success of American producers and our rural communities. However, our recent experiences have made me think about how we can build more robust domestic markets that will not subject our producers to the whims of foreign governments. This hearing is intended to begin that conversation. My hope for today is that we start exploring new domestic opportunities for our farmers. What are the impediments limiting domestic consumption? What incentives would be helpful? Are there legal, regulatory or procedural obstacles at the federal, state or local level that need to be addressed? Is the tax code structured in a way to make American grown commodities more attractive? Do we have the necessary processing infrastructure? In the coming weeks and months, the committee will continue to explore this topic. I intend on discussing this topic with processors, manufacturers and retailers as well. Domestic market development will remain a priority of this committee as long as I'm chairman. Again, I want to thank my colleagues and our witnesses for being here today and now recognized my friend and colleague Senator Klobuchar.

Well, thank you so much, Mr. Chairman and thank you for holding this important hearing this afternoon. Whether a farmer grows corn and soybeans or blueberries and apples, our farmers need domestic marketing opportunities to stimulate growth throughout our country. They need it now more than ever as you pointed out, Mr. Chairman. Few ideas I'd toss out there. One is E15, making that permanent and year round. There is bipartisan support for this and I want to thank Senator Fischer and Duckworth and so many others who have worked on this issue. We need to get it done. Bipartisan farm bill seems to me a vehicle where we can get it done, but there may be others as well. We can also expand domestic opportunities by investing in local markets, by purchasing fresh produce and meat from small and mid-sized farmers. We can support local supply chains and families. I was frustrated to see the administration cancel the popular local food purchasing assistance program last year and I hope that we can reinstate this investment. We can also invest in organic agriculture, expand support for rural businesses and invest in research to develop new revenue streams for farmers. I've long supported bipartisan efforts to grow new domestic production of sustainable aviation fuel, bio-based products and industrial hemp. There's a lot more we can do on hemp, that's a subject for another day, but this is a growing market that we should be looking at and not going backwards on. These opportunities provide farmers with innovative sources of revenue amidst a difficult farm economy. It's no secret that we are exploring these domestic marketing opportunities. We would be anyway, but the chaos caused by our tariff and trade policy is causing many, many issues. I appreciate my colleagues on both sides of the aisle who have joined me in pushing back on the tariffs. The impacts of the tariffs, record high input costs and the need to invest in domestic markets are top of mind for Minnesota farmers. I recently held two roundtables, one in Southern Minnesota, one in Breckenridge in Western Minnesota, where I heard directly about the uncertainty facing our farmers and ranchers and that is the hardest thing for so many of them. A tariff changes, it goes up, it goes down, they don't know what to plant, they don't know what to invest in and then in the end, it gets harder and harder. So the best thing we can do in addition to having less of these tariffs and have them much more targeted, using a chisel or a hammer instead of a sledgehammer would be good and the second thing would be a bipartisan five year farm bill that meets the moment. Farmers need reliable access to credit, modernized conservation programs and new uses for their products. These ideas could be included in a bipartisan farm bill. And at the same time the farm our farmers and ranchers are struggling, we also have families struggling. Paychecks are stretched because of rising grocery and healthcare costs and now gas costs. Just as our anti-hunger programs face the steepest cuts in a generation, we must do something here and I did not like the way these state shifts went on SNAP. I understand that our colleagues would engage in some cuts to SNAP this last summer and I'm hoping we can get to a better place. I think it's really important for people to know that because of the way this was structured with the highest error rate states getting off scot-free, 10 of them and the lowest error rate states of course not having to pay, there's a whole bunch of us in the middle as in the entire Midwest that are going to see enormous cost shifts to our states and in some states counties. That is why the bipartisan National Governors Association, I'm not talking about the Democratic Governors Association, the National Governance Association has come out with a proposal to delay these cost shifts, the National Conference of State Legislatures and other state and local officials. We should give the states the time to get their error rates down and we should delay these cost shifts and we certainly shouldn't be benefiting high error rate states over ones that have low error rates. So I hope as we look at a farm bill and I know there's work being done over in the House that we include some corrections to what happened last summer. So thank you, Mr. Chairman and I look forward to today's discussion.

Thank you. Today we are joined by our colleague from Ohio, Senator Jon Husted, who will introduce two of our witnesses. I didn't realize that Ohio was taking over the meeting. [Laughter.] You're well represented. Thank you for being here and I know you're like everybody else is incredibly busy, but thanks for taking time to come over.

Thank you, Mr. Chairman and to you and the ranking member and the committee members, thanks for allowing me to introduce two Ohioans today. First, I would like to introduce Scott Metzger, the president of the American Soybean Association in Ohio. I would just like to say that we grow products that feed and fuel America and so I'm proud to introduce Scott today to provide insight on how we can increase domestic consumption of these homegrown products. Mr. Metzger is a sixth generation farmer from Williamsport, Ohio, where he grows soybeans, corn and wheat. He is also a member of the Ohio Farm Bureau, Ohio Corn and Wheat Growers Association. Mr. Metzger's leadership in guiding one of the largest farm organizations in the country is a testament to Ohio's agricultural impact on our great farm economy and I want to thank you for joining us today, Mr. Metzger and we're looking forward to hearing your testimony. And then secondly, I want to introduce Mr. Jed Bower. Jed raises corn and soybeans with his wife Emily and their children Ethan and Emma on the fifth generation farm in Washington Court House, Ohio. In addition to advancing corn growers' interests at the national level as the president of the National Corn Growers Association, Mr. Bower previously served as the president of the Ohio Corn and Wheat Growers Association and continues to serve as an active member of NCGA's farm-led leadership committee. Ohio's farmers drive economic growth and ensure our state remains a leader in agriculture and Mr. Bower's leadership with the National Corn Growers Association underscores the role Ohio farmers play in shaping the agricultural landscape across our country and I appreciate Mr. Bower coming to testify today and to the committee members, I can tell you both of these gentlemen are highly respected in our state and farmers across our state and across the country rely on them for their role in these organizations and thank you for allowing them to appear before the committee today.

Thank you, Jon and again, thank you for taking the time to come over. I'm pleased to introduce Mr. Zippy Duvall. Mr. Duvall is a third generation farmer from Georgia, where he and his son raise beef cattle, broiler chickens and grow hay. A true advocate for farmers and ranchers nationwide, Mr. Duvall has led the American Farm Bureau Federation as president since 2016. Mr. Duvall has a personal understanding of how several factors before this committee may impact the future of American agriculture and I look forward to hearing his testimony. Welcome back to the committee and you've been here several times and we really do appreciate your leadership. Next, Senator Hoeven is going to introduce Mr. Perdue.

Thank you, Mr. Chairman and thanks to both you and the ranking member for calling this hearing today. It's my pleasure to introduce Matt Perdue, who is the president of the Farmers Union in North Dakota. We have incredibly strong Farmers Union organization in North Dakota, more than 70,000 members and Matt is the youngest person to ever be elected president of that great group and we know both Farmers Union and of course because Zippy's here, Farm Bureau, both are just powerhouse organizations for our farmers and ranchers and so important, particularly at these times where our guys are facing a hard go of it. Your advocacy is just incredibly important. Matt in addition to leading the North Dakota Farmers Union is a farmer himself and lifelong farmer, grew up on a farm and now is farming with his family. They farm in Northwest North Dakota, where I'm from Northwest North Dakota, so we love that part of our country and our state. On his farm they raise durum, wheat, canola, lentils, soybeans and you know, he reflects what we need to get more of is younger farmers into farming. And so that's why it's so important that you and the ranking member are having this hearing today because it is about markets. Our guys want markets here at home, around the world and anything and everything we can do to help them is critically important and again, that's why it's so important that our commodity groups, certainly led by Farmers Union, Farm Bureau are so important because we have this network, this incredible network of family businesses, family farms and ranches and if we take it for granted, we take it for granted at our peril and we need to be with them and I know that's what this hearing today is all about. So thank you.

Next, Senator Klobuchar can introduce our next witness, Ms. Burns.

Thank you very much. I don't know if Mrs. Burns is the youngest person ever to head up her organization, but I do thank her for coming today. She is the Chief Executive Officer of the International Fresh Produce Association. She serves the entire fresh produce and floral supply chain, including farmers, consumers, processors, and retailers. She has over 30 years of industry experience, including her time at the Produce Marketing Association and serving as a leader in the grocery retail sector. Thank you for being here, Cathy, and thank you for your work in support of specialty crops, which has been a growing part of our ag profile in our country and really appreciate it. Thanks.

So I don't know if she's the youngest, but she's one of the most effective in twisting our arms. [Laughter.] I would now like to introduce Mr. Nathan Reed, a great Arkansan hailing from Marianna, Arkansas, located in the heart of the Mississippi Delta region. Nathan and his wife, Kristen, and their four wonderful children grow cotton, rice, corn, and soybeans. Nathan currently serves as the chairman of the National Cotton Council. Back in Arkansas, he serves as the executive officer with the Arkansas Ag Council and serves on the Arkansas Plant Board. I look forward to hearing his testimony as he represents farm families across the cotton industry. Welcome back to the committee, Nathan. Okay, so we're ready to roll. Mr. Duvall, you are recognized for your opening statement.

Thank you, Mr. Chairman and Ranking Member Klobuchar and the members of the Senate Agriculture Committee. I want to thank you all for the opportunity to testify on this important topic. My name is Zippy Duvall, and I am a third-generation farmer from Georgia. My family and I raise beef cattle, poultry, and hay. And I'm honored to serve as president of American Farm Bureau Federation, representing more than five million member families who grow every crop produced in the United States. Our members are the economic backbone of rural America, but they continue to face historical headwinds in farm economy. When adjusted for inflation, USDA projects that farm income this year will be down nearly $50 billion below the levels of just a few years ago. One of our young farmers from Oklahoma pointed out to me recently that his prices have fallen to the lowest level in his lifetime while input costs have continued to increase faster than ever. The conflict in Iran is expected to make cost of fuel and fertilizer soar even further. Congress and the President have delivered critical support, and we're grateful for that support and investment in our risk management tools, trade promotion, conservation, and addressing animal diseases. Bridge payments provide a lifeline to farmers to help farmers make it to this planting season. But farmers do not want to rely on government aid, and aid should not be needed year in and year out. That's not a normal volatility. It's structural imbalance. And that's why this hearing is so important today. We must strengthen domestic demand for American agricultural products, and we must support increased production of critical ag supplies and restore domestic processing. We must ensure our safety nets are strong and expand fair access to markets abroad. More than 20 percent of our total agricultural products are exported in a typical year. When that export engine slows, farm-level prices drop quickly. Export markets must be strengthened through fair and enforceable trade agreements. Global competitors have expanded their acreage. They've improved their yields and they're investing heavily in their ports and rail system. That competitiveness is not going to go away. We must be competitive in the export market, but we also need to expand our domestic demand and processing capacities to truly be resilient. There are many ways to drive domestic demand. Biofuels represents a clear example. Ethanol production now accounts for about 40 percent of the total U.S. corn usage. Renewable diesel and biodiesel markets continue to transform oilseed demand. This shift has driven expansion in soybean crushing capacity, creating jobs and strengthening our local communities. Sustainable aviation fuel represents another opportunity. Another aspect of domestic demand is federal purchasing. Federal agencies purchased almost $7 billion of U.S.-grown food and agricultural products last year. Buy America policies are both patriotic and powerful, but oversight and enforcement can be strengthened. For example, the National School Lunch Program provides nearly five billion meals annually, and they are supposed to be domestically sourced, but the rules allow for a significant share of foreign products. Enabling schools and food banks to be sourced directly from U.S. farmers is another demand booster, especially in fruit and vegetable growers. Incentives can also help. The Buy America Cotton Act of 2026 is a good example of legislation that builds demand through a tax credit for businesses using American-grown cotton. A key pillar of strong farm economy is an adequate farm workforce. The current labor shortage is unacceptable and unnecessary. We need modernized ag labor programs and improved guest worker programs. Otherwise, farm production and food processing will continue to move outside our borders. American agriculture remains one of the most innovative and productive sectors in the world. We must ensure that markets, infrastructure, and policy evolves alongside that productivity. I look forward to working with this committee to ensure that America's farmers and ranchers can continue to supply food, fiber, and fuel to families across our great country and beyond. Thank you for the opportunity to testify before you today.

Thank you, Mr. Perdue.

Chairman Boozman, Ranking Member Klobuchar, and members of the committee. Thank you for the opportunity to testify today. My name is Matt Perdue. I farm with my family near Ray, North Dakota, where we raise durum, spring wheat, canola, lentils, and soybeans. And I'm honored to serve as president of North Dakota Farmers Union and on the board of directors of National Farmers Union. Family farmers are facing significant economic headwinds. Our input costs are high, commodity prices are low, and our markets are extremely volatile. Farmers and ranchers are also shouldering record-high debt loads, higher than the 1980s, further deepening the crisis for many. In the last year, trade disputes and now the war in Iran have compounded these economic challenges. Geopolitical tensions have created pressure on both sides of the farm income equation, driving up input costs and depressing commodity prices. Farmers Union has been critical of the administration's trade strategy. But we must also confront the reality that U.S. agriculture is facing increased competition in international markets. Strong domestic markets are critical to the long-term profitability of family farms and ranches. And we can grow those domestic opportunities by bolstering renewable fuels markets, expanding local and regional supply chains, and strengthening competition in ag input markets and the markets that we sell into. Renewable fuels play a vital role in farm income and rural economies. A strong domestic biofuels industry provides consistent homegrown demand for agricultural commodities, offering greater price stability. And that stability is badly needed right now. We appreciate the work of Senators Fischer and Klobuchar and many others on this committee to secure permanent year-round E15. As you well know, farmers are frustrated by the repeated delays in advancing permanent year-round E15 through the legislative process. We need that demand boost, and we need it now. It's time to get it done. We are also encouraged by the administration's proposed increase in biomass-based diesel volumes under the Renewable Fuel Standard. We strongly support those increased volumes and will continue to urge EPA to finalize its proposal and provide certainty for farmers and renewable fuels producers. And long-term, we look forward to working with this committee to grow biofuels markets further. We strongly support efforts to advance higher blends of ethanol, including E30. We support 45Z, the Clean Fuels Production Credit and its timely implementation. And we're excited to help grow demand through sustainable aviation fuel. While expanding renewable fuels markets will boost commodity prices, we can also create more opportunities beyond traditional commodity channels. Local and regional supply chains help farmers and ranchers expand and build markets and strengthen profit margins. Programs like the Local Food Purchase Assistance and Local Food for Schools programs supported that development. While we were disappointed that USDA terminated funding for those programs last year, we appreciate the inclusion of both in the House Farm Bill. As this committee takes up the Farm Bill, we encourage you to authorize LFPA and LFS and to build upon the House proposal by providing both programs mandatory funding. In recent years, a combination of federal and state programs have meaningfully expanded market opportunities for North Dakota ranchers. Those investments are having a real impact for real families. For example, the Bruner family from Drake, North Dakota, has built Dakota Angus Beef, a brand that now has statewide recognition. And through Dakota Angus Beef, the Bruners are selling their own beef directly to consumers and to restaurants, capturing a larger share of the consumer food dollar. Their story is a great example of how targeted support can help hardworking producers create new opportunities for themselves, their families, and their neighbors. And finally, we must recognize that most of the markets we buy from and sell to are heavily consolidated. That consolidation limits options for farmers and ranchers, and it compresses our margins. We appreciate the administration's recently announced investigations into farm inputs and the major meatpackers, but investigations will not help farmers and ranchers unless they are followed by real enforcement. We urge Congress and the administration to work together to provide meaningful antitrust relief and remedies for farmers and ranchers. Family farmers are experiencing real economic pain. We need real solutions. We look forward to working with this committee to expand domestic opportunities, create new ones, and to ensure that all our markets are fair and competitive. Thank you for the opportunity to testify today. I look forward to answering your questions.

Thank you very much. Mr. Reed.

Good afternoon. I am Nathan Reed from Marianna, Arkansas. I farm with my wife, Kristen, and our four children in the Mississippi River Delta, where we raise cotton, rice, corn, and soybeans. We are grateful for the work of this committee over the last year to mitigate the economic conditions facing cotton producers. Congress, the USDA, and the White House have stepped up to the plate by providing additional support to production agriculture. However, the financial situation of U.S. cotton growers continues to deteriorate, with market prices still well below the cost of production. This is on top of deep losses producers suffered in 2023, 2024, and 2025. We are encouraged by Chairman Boozman and Senator Hoeven's efforts to provide additional economic assistance for 2025 losses. We look forward to working with you and the leadership in the House and Senate to achieve this result. Unfortunately for domestic producers, Brazil has surpassed the U.S. as the leading global exporter of cotton and is projected to produce almost 19 million bales, up from six million bales a decade ago, and far surpassing current U.S. production of 14 million bales. Over the last 20 years, cotton has seen no consistent demand growth. To make matters worse, during the same period, man-made fiber consumption has more than doubled, with much of that being Chinese polyester priced at 42 cents per pound. While ad hoc assistance and farm bill provisions have helped substantially, the U.S. cotton industry cannot survive without stronger demand. We are grateful for the leadership of Senator Cindy Hyde-Smith, who last year introduced the Buying American Cotton Act, or BACA. In January, a House companion bill was introduced by Representatives Greg Murphy and Terri Sewell. BACA has strong bipartisan support that extends far beyond the Cotton Belt, as evidenced by House cosponsors from New York, New Jersey, Ohio, and Maine. In addition, BACA has very broad industry support, as highlighted in a letter signed by 80 entities, including cotton organizations, textile mills, brands, and retailers from all over the country. Under BACA, products containing U.S. cotton sold in this country would qualify for a transferable tax credit that scales with the level of U.S. cotton content or domestic cotton processing. Higher credit values apply to qualifying items produced entirely in the United States or in countries with which we have a free trade agreement. U.S. consumers represent the world's largest retail market for textile and apparel products, purchasing the equivalent of 40 million bales of fiber. Yet, we estimate that only 10 percent of that total, or four million bales, is U.S. cotton. The other 90 percent of American consumer purchases are supporting international cotton and synthetic fiber producers. BACA will correct this imbalance by increasing demand for U.S. cotton, thus positioning U.S. cotton to compete more effectively. Ultimately, BACA will enhance cotton prices for American producers, reducing cost and reliance on farm bill support programs. It will encourage additional cotton production and increase domestic economic activity. We estimate that each dollar at the farm gate generates $20 throughout the broader economy. This legislation is critical not only for cotton producers, but also the rural communities that depend on healthy and profitable family farming operations. In closing, I commend this committee for conducting this hearing on building domestic demand for our agricultural products. Most importantly, we urge Congress to pass the Buying American Cotton Act this year. Thank you for the opportunity to testify, and I am pleased to respond to any questions.

Thank you. Mr. Bower.

Thank you. Chairman Boozman, Ranking Member Klobuchar, members of the Senate Committee on Agriculture, Nutrition, and Forestry, thank you for your invitation to testify today. Again, my name is Jed Bower. I'm a fifth-generation farmer from Washington Court House, Ohio. I grow corn and soybeans with my wife, Emily, and my children, Ethan and Emma. I currently serve as the president for National Corn Growers Association. Founded in 1957, NCGA represents more than 36,000 dues-paying corn growers in 48 states, and interest of more than 500,000 farmers who contribute through their corn checkoff programs in their states. It is an honor to testify before the committee today. In this hearing on domestic demand expansion could not come at a more critical time for our industry. 2026 is America's 250th year, and in those 250 years, corn has been foundational to the American success story. Unfortunately, the legacy that generations of corn growers have built is in jeopardy. Today, corn farmers are facing many challenges, and the ability of the next generation to take over the farm is in question for too many families right now, including my own. With the next 250 years in mind, NCGA is doubling down on a demand agenda to diversify near and long-term market opportunities for corn and corn products. While my written testimony covers a broader range of topics that are important to growers' profitability, such as trade and risk management, because today's hearing is focused on domestic demand, I will concentrate on two key domestic demand priorities: expanding markets for ethanol and scaling the utilization of bio-based products. Since its inception, the ethanol industry has strengthened rural economies, created jobs, and driven farmer profitability. Today, over a third of each year's crop is turned into fuel. We believe there is room for growth in on-road, marine, and aviation fuels. First, year-round access to E15 is critical. Farmers have waited far too long for this simple, deregulatory bill to be passed. Aside from the economic boost it would provide to farmers, year-round E15 would lead to significant savings for American consumers, strengthen U.S. energy dominance at a time when geopolitics are complicating markets and supply chains. And I want to thank Chairman Boozman and Ranking Member Klobuchar for their public support of year-round E15. Second, the Renewable Fuel Standard remains the cornerstone of biofuels policy. Strong, predictable, renewable volume obligations are essential. They give farmers, ethanol producers, and fuel retailers the confidence to invest and grow. We appreciate the EPA's current approach and look forward to seeing the finalized 2026-2027 RVOs as soon as possible. Beyond maintaining current markets, we must look toward the future and new opportunities for biofuels to help decarbonize the transportation sector. One of the most promising is sustainable aviation fuel. Corn-based ethanol can play a major role as a feedstock for producing SAF. The 45Z tax credit, which Congress wisely extended in the One Big Beautiful Bill Act, is poised to help stimulate the expansion in the rising industry. Corn growers are also actively exploring ethanol in marine fuel. This has potential to be a four billion gallon market within the next five years. This market symbolizes an unprecedented opportunity for American corn farmers. Bio-based products represent an important growing economic opportunity for farmers when corn and ethanol are used as feedstocks. They also present a more environmentally sustainable alternative for ingredients in many products that Americans use in their everyday lives, such as fibers and polymers. Capturing just 10 percent of the global plastics market with bio-based alternatives could generate a demand for an additional 15 billion bushels of corn. NCGA is working with industry partners to develop legislation to establish a federal tax incentive that would encourage the conversion of U.S.-grown agricultural feedstocks into renewable chemicals and materials. This investment in production credit would diversify demand for agricultural products, strengthen domestic bio-manufacturing, and stimulate rural economies. We encourage Congress to invest in these tools. In closing, I thank the chairman, the ranking member, and the members of the committee once again for today's focus on expanding domestic demand markets for U.S. agricultural products. This objective is imperative to our future. I implore all members of Congress to work with us to advance real solutions like the ones that are discussed here today. Please fight with us to secure the next 250 years of farming. Thank you.

Thank you very much. Mrs. Burns.

Chairman Boozman, Ranking Member Klobuchar, thank you for the introduction, and members of the committee. Thank you for the opportunity to testify on behalf of the International Fresh Produce Association. I'm proud to represent the thousands of U.S. fruit and vegetable producers who feed American families, strengthen rural communities, support more than two million jobs, and contribute more than 335 billion to the national economy. IFPA is guided by a simple yet powerful goal: to grow a healthier world by increasing Americans' access to and consumption of fresh fruits and vegetables grown here in the United States. The science is clear: eating more fruits and vegetables is one of the most effective ways to improve health, prevent chronic disease, and reduce healthcare costs. This is reflected in the dietary guidelines for Americans and aligns with the priorities of the Make America Healthy Again movement. Yet 90 percent, 90 percent of Americans still fall short of recommended intake levels. Increasing consumption is not just a nutrition issue, it is an economic issue and an economic opportunity. When we strengthen produce consumption, we strengthen domestic markets for American farmers. To meet this opportunity, we need systematic solutions, systemic solutions to make it easier for everyone to choose fruits and vegetables. Everything from strengthening federal nutrition programs to ensuring the industry has access to federal investment to enhance our competitiveness, our resiliency, and efficiency. The good news is that Congress has powerful tools at its disposal, particularly through federal nutrition programs. We need Congress to continue to fully fund the WIC fruit and vegetable benefit and expand online redemption, strengthen produce incentives in SNAP, ensure school meals include a wide variety of fresh produce, expand the fresh fruit and vegetable program to reach more elementary schools, and modernize USDA procurement so it reflects nutritional value, not just the lowest cost, and includes more U.S.-grown produce options. Embedding produce prescription as a standard benefit across the federal health programs will improve the health of nearly 150 million Americans. Ensuring HSAs and FSAs can be used to purchase fruits and vegetables is another common sense step. While these actions will help drive consumption, Congress must also support a competitive and resilient supply chain. From the moment it's harvested, fresh produce must move fast, and growers today face rising input costs, labor shortages, regulatory pressure, and increasing natural disasters. Over the past two decades, the United States has lost more than 230,000 farms, a stark reminder of the economic pressures facing producers. Policies that support farm profitability and encourage new investment in specialty crops are essential. Strategic investments in research, technical assistance, risk management, and conservation programs help growers remain competitive across all production systems: conventional, organic, and regenerative. A coordinated national approach to produce packaging is also critical, one that avoids conflicting state rules and balances sustainability goals with food safety, shelf life, and affordability. Finally, consumer confidence depends on a strong, modern food safety system. This includes continued investment in FDA's human foods program, including traceability implementation and reliable funding for and consistency across state food safety programs. These are all essential to protect consumers and support growers. Despite the challenges they face, America's fruit and vegetable producers are ready to meet the growing demand, but we cannot do it alone. We need your leadership. Congress has a vital role to play in ensuring every American has access to fresh fruits and vegetables while creating economic opportunity for farmers across this country. On behalf of the International Fresh Produce Association and U.S. growers we represent, thank you for your leadership and for your partnership, and I look forward to your questions.

Thank you, Mr. Metzger. Thank you, Mr. Metzger.

Thank you, Chairman Boozman and Ranking Member Klobuchar and members of the Senate Agriculture Committee. It is an honor to join you here today to testify on behalf of the American Soybean Association regarding domestic market expansion opportunity for U.S. ag. My name is Scott Metzger and I'm a sixth-generation grain farmer from Ohio. I also serve as ASA president, which represents U.S. soybean farmers across 30 soy-producing states. The U.S. soybean industry has a profound positive impact on the economy, with the entire soy value chain generating an economic impact of 124 billion in 2025. However, the trade uncertainty plaguing our industry this marketing year highlights how important strong domestic markets are for U.S. soy. While the soybean industry continues to diversify export markets, embracing federal policies that can promote and expand domestic markets is more critical than ever. U.S. soybean farmers play an essential role in feeding and fueling the world while also supporting over 1,000 soy bio-products. From biofuels to food uses to new opportunities for soybean meal and the development of soy-based bio-products, ASA sees immense domestic market potential for our crop. The domestic biomass-based diesel, or BBD, industry was developed with the support of the soybean farmers in the 1990s. Biodiesel, renewable diesel, and sustainable aviation fuel support American energy dominance while using U.S.-grown soy oil feedstocks. Through federal policy, the U.S. consumed over five billion gallons of BBD in 2024, which created over 42 billion in economic impact. Now the industry is on the brink of additional expansion. While the BBD industry increased by 65 percent from 2021 through 2024, the percentage of soy oil used in BBD production decreased as imports of used cooking oil and tallow surged from China, Brazil, and other overseas destinations. ASA thanks Congress for its improvements to the 45Z tax credit. The changes eliminated the penalty on ag-based biofuels, effectively doubling the credit value for soy-based BBD. Further, Congress prohibited fuel and feedstocks imported from overseas from benefiting from the tax credit. Now, Treasury must finalize the guidance that the soy biofuel value chain can actually utilize the tax credit. The EPA renewable volumes obligation for 2026 and 2027 must also be finalized swiftly to promote biofuel industry expansion. The June 2025 draft EPA rule was the most positive proposal ASA has ever seen. Finalization of the 45Z tax credit and RVO rule will provide increased certainty for domestic BBD markets and drive investments to increase production, in turn increasing consumption of U.S. soy. Soy is also a critical component in the U.S. food systems. In addition to food products, soy oil serves as an affordable, heart-healthy ingredient for home cooking and packaged foods. The federal government must ensure that the regulations and policies continue to follow sound science. As state-level food labeling proposals continue to emerge, ASA urges Congress to ensure food affordability remains top of mind, especially as labeling patchworks will increase consumer costs by 12 percent nationwide. As soybean processing increases to meet domestic oil demand, soy meal offers additional market opportunities beyond animal and aquaculture feed. Soy meal is used as a base ingredient in soy foam, a PFAS-free firefighting foam. Firefighting foams are one of the most common continuous PFAS pollutants in the country, and soy foam offers a biodegradable, American-grown alternative. ASA urges Congress to help expedite federal approvals of this product. Widespread use of soy foam will ensure firefighters, like my son Dalton, will no longer have to worry about regular PFAS exposure while on the job. Soy oil-based products also offer immense domestic market growth potential. From tires to infrastructure products to golf balls and artificial turf, the scalable potential of these products is limitless. Like biodiesel, most soy bio-products can be traced back to the investments made by the soy checkoff. As a proud investor in our checkoff, support is critical to ensure research and development into new domestic market opportunities can continue. As we work to maintain and grow domestic markets for U.S. soy, Congress must continue to focus on biofuels, edible oil, meal, bio-products. I also urge for our soy checkoff, which is a critical tool to U.S. soybean farmers to use to build markets today. Thank you for this opportunity. ASA appreciates the committee's focus on this critical issue to improve the farm economy, and I look forward to your questions.

Thank you very much. Mr. Reed, there's been a dramatic decline in cotton processing capacity with the number of cotton gins, once over 2,000 in 1980, now standing at just under 450, so that 85 percent of U.S. cotton production today is exported. Can you talk further about the underlying reasons for the trend with the processing ability and opportunities? Is it out of reason to think that we could actually have textile plants again in the United States? It seems like every community, we all know communities that there was some sort of a gene factory or this or that there that have just simply all disappeared.

Well, on the cotton gin side, there's been a reduction in cotton acres, which unfortunately has closed many gins. There's been some consolidation of gins and some larger gins built, but it's followed the trend of reduced cotton acres. As far as textile mills, they've had a very tough time. It started when China entered the WTO, we started losing textile mills. In the more recently, the mass importation of cheap synthetic chemical fibers from other countries flooding our market, our textile market in America. And fortunately, we got the de minimis provision reversed, and that has helped some, but we feel that the way to reverse this trend is through BACA to the whole cotton industry, textile, providing more consumption of American cotton will absolutely reverse the trend of the loss of cotton processing facilities because once they are gone, it's very difficult to get that back.

Very good. Mr. Duvall, in your testimony, you talked about the importance of reliable labor. I was glad to see the Department of Labor issue an interim final rule on the effective adverse wage rate and support efforts to codify the rule. What else can Congress or the administration be doing to modernize ag labor programs?

Well, we need to continue to work together to bring a farm labor bill to surface and get it on the president's desk so that we can have a reliable source of labor for agriculture. The programs that we work within now is only seasonal. There's a year-round workers needed in much of agriculture today all across America, and we need to continue to work on that. We are very appreciative of the work that the administration has done, the Department of Labor has done to try to help some of the regulation. But if you look across America, when I go across America and talk to farmers, it's the number one issue they're facing that's long-term issue. Of course, economy right now is the biggest issue that faces them, but labor is the biggest limiting factor that we have in agriculture today. It prevents having young people come back to our industry because they have to expand their family farms and they need additional labor to do that, and we're not able to do that. And then it's over-regulated and costs too much. Larger farms have a tendency to be able to adapt to the program because larger farms may have possibly could have a HR department and attorneys working for them, where smaller- or medium-sized farms, it's almost impossible for them to adapt to the systems that we have. So we need to look at this, and it can be fixed. It's unnecessary that we are short of labor. There are people in this world that want to do our work, and we need to find a way to let them come here and help us do it.

Ms. Burns, you mentioned that one of the answers to increasing specialty crops is the various USDA programs that are out there, but we have problems with them in the sense that sometimes the bureaucracy, sometimes this or that. Do you have any specific ways that we could make those programs better, easier for farmers to use?

Yeah, I mean, I think anytime you can make the process simpler and easier for our growers, it's definitely a win. Some of these programs that are in place have an opportunity to scale, so the construct already exists. Obviously, some of them need funding, but I will tell you, fully funding the WIC fruit and vegetable benefit is our crown jewel. It really does make a difference in those young families. If you think about school meals, our schools are the largest restaurant in the country. And so we need to ensure that we are providing the variety of fruits and vegetables for our kids because we need to start those habits at a very young age. So again, streamlining processes always, but some of the recommendations that we put forward don't cost a lot of other bureaucracy. It's just a matter of opening up the policies, like ensuring HSA and FSAs are used to purchase fruits and vegetables.

That's good. I visited with the school lunch professionals today, and they were mimicking exactly the same things you said, so it's great. Senator Klobuchar.

Thank you, Mr. Chair. I have long led bipartisan efforts along with so many of my colleagues to make E15 available year-round. I appreciate so many of you bringing it up. It's an obvious solution to what we are facing now, which is some higher gas prices, which we weren't facing a few months ago. It seems to me like the moment to seize to show that we have a diversified fuel supply, and it's already, what, 10 percent of our fuel, and I just think this would be the smartest thing to at least send a message to those soybean and corn farmers that this is a market that we want to fill. And this is the time to do it. So new economic analysis from the University of Missouri shows that E15 is currently saving drivers about 25 cents per gallon. Mr. Bower, with the cost of production being so far above the current price of corn, what would the availability of year-round E15 and higher blends of ethanol mean for corn growers across the country?

Ranking Member Klobuchar, thank you for the question. You know, absolutely tremendous. As we look at potentially our fourth year of losses in a row and trying to, trying to at least on my personal farm, trying to figure out how I'm going to pay for my inputs that are so drastically out of line. You know, as we look at what E15 could potentially do for growers, for every one percent we increase that blend wall, so if we as we go from 10 to 11 to 12 and on up, for every one percent that's 490 million bushels of grind. You know, so for farmers, it varies depending on the market, but we're looking at maybe 35 cents a bushel. Some numbers are lower than that, but any relief right now is tremendous for growers.

And I don't even, I think of it as fuel we need right now. And so if we put you in such perilous position if the government policies do that with tariffs and the like, that you're not able to keep producing, then we're going to be really screwed because, those aren't your words, because with the way gas prices are going right now, I think it's a real problem. This is a great moment to do that. Mr. Metzger, how does a strong renewable fuel standard provide stability for soybean markets? So be quick in the answer because I have a few more.

Thank you, Ranking Member Klobuchar. Biofuel production is one of our largest domestic products markets for U.S. soy, with significant growth potential through higher annual blending targets and safeguards against the flood of imported feedstocks. A strong RFS will help help the American soybean farmer. You know, we're in this kind of same role here as corn with that we're, you know, looking to have more access or become more economically viable with our products.

Thanks. Ms. Burns, of the $12 billion in economic assistance announced by USDA, as you know, only certain specialty crops will be available for a billion in assistance. Do you believe that the economic assistance is adequate, and are you in favor of advancing a farm bill?

Absolutely not adequate. We need at least $5 billion. In fact, GT said last week that we need $10 billion. We need, we'll take $5 billion, $10 billion. We are a third of the crop sales, yet we are not getting a third of the economic assistance. So yes.

Thank you. Mr. Perdue, how can farm bill conservation programs and the conservation programs created using CCC funding help create new markets?

Senator Klobuchar, I appreciate the question. You know, I think the reality is that consumers are often willing to to reward farmers for adopting certain practices, producing a commodity in a specific way. And farm bill conservation programs are, you know, a key opportunity, a key support that we can provide producers to transition that production system, whether it's an incremental transition or a wholesale transition. We get caught up on words a lot: sustainable, regenerative, climate-smart, carbon-neutral. Doesn't really matter to me. It matters that a consumer puts value in it, and farm bill conservation programs help us meet that.

Very good. I was just at our National Pheasants Forever convention in Minnesota, and there was, of course, a lot of interest in this for reasons outside of even farmers. Last, Mr. Duvall, could you talk about investments? We've talked about year-round E15 and aviation fuel, which we have all these opportunities to move into, and conservation and fruits and vegetables. But could you talk about how investments in ag research directly benefit farmers on the ground, especially right now when you're seeing the the ability of technology to help us to get to that next level?

So number one, that's why it's so important for us to get a a new farm bill, modernized farm bill passed. All the research that goes into agriculture helps us stay on the cutting edge. We see other countries where their agricultural communities are growing and they're adapting to the things that we've adapted to many years ago, and that research keeps us on the cutting edge and gives the consumer out there what they really want. So it is vitally important for us to have additional moneys for research. It helps us do the things that the people of this country want us to do, from conserving our natural resources to creating new products and new new crop protection tools that we can use in the future.

Thank you.

Senator Hoeven.

Thank you, Mr. Chair. In the one big beautiful bill, we included updates to ARC-PLC and also to crop insurance. Very important, and our chairman led that effort, and big-time effort that is going to help our farmers and ranchers, but it really kicks in in October because that's at the end of the marketing year. So we're still working to get our guys from where we are now to October range. Senator Boozman and I have introduced a bill that would provide additional disaster assistance, about $15 billion. If possible, we'd also like to include E15 in there year-round as well. Starting with you, Mr. Duvall, what what's your thoughts?

Well, first off, I want to thank you and the chairman and and the whole committee of what they're doing to push that forward. We do need that additional money. The moneys that's come across now has got our farmers to planting season, but there's not enough there to bridge us over until those new Title I programs come into effect. So it is vitally important that we not only get a new farm bill, modernized farm bill and finish it out, but it's also vitally important that we have more bridge payments and a real focus on on on specialty crops too. So it we have to have that to get our farmers and ranchers through.

Mr. Perdue, same question.

Senator Hoeven, appreciate your work on on this issue, and absolutely it's it's going to be critical in the months ahead that we provide additional financial support. There's not enough money out there in farm country right now. That's that's a challenge. And one of the things, you know, North Dakota, we tend to have higher basis or a wider wider basis than we other parts of the country. That's something that wasn't reflected in the farmer bridge assistance, and essentially that means that we get underpaid compared to the losses that our neighbors in other states experienced. And I think that's an important issue as we move forward.

Ms. Burns, specialty crops are an important part of the legislation we put forward. What's your feeling, same question?

Yeah, I appreciate, Senator, you calling this out. As Zippy mentioned, this is a very, very important topic for our growers. It needs to be addressed through the farm bill as well, and we need, as you know, specialty crops don't really have a crop insurance program that's affordable or effective. So the Specialty Crop Farm Bill Alliance put together a recommendation to do just that, and we are ex we're proposing significant reforms to the current programs. We have high-value products that have a high impact on Americans' health. We need this.

Right. And we and we very much want to thank Secretary Rollins for the farm bridge assistance. That's really been important and much appreciated, but also, you know, we need to finish that bridge assistance, which is what we're trying to do here to get to the provisions that we did include in ARC-PLC and crop insurance. The other question, and again, the focus here is how we increase domestic markets. You know, both the chairman and I and others have talked on a continuous basis to USTR. We've got to, you know, not only have international agreements to to export, but we've got to get the sales, the actual hard sales as fast as we can. And I know they're very much focused on that. I guess the issue today is what more we can do domestically. In our state, we've made a huge push on value-added ag. I guess I'll come back to you, Mr. Perdue. Are there some other things you think we can and should do in that realm?

Senator Hoeven, I think, you know, I think one of the biggest things to point out with North Dakota story is we've made big strides on ethanol, we've made big strides on soybean crush, but we also have pea flour processing and craft malting and a lot of diversity, wheat flour milling. That's driving a lot of opportunities for producers. Now, we're still in tough economic times. It hasn't totally changed the tide, but the more we can create diverse opportunities for producers, I think the better off everybody is. I think it bolsters our resilience on the farm in North Dakota and across the country.

And to foot-stop that, we now grow 40 different major crops, and a lot of it is because we do have the ability to do processing. Mr. Perdue, what can we do on the input side, on the fertilizer and those kind of things to help? Those input costs have gone up so much. What what are the top-of-mind things we can do there? Mr., yeah, Duvall, I'm sorry.

Thank you, sir. Well, one thing, we need to look at the tariffs that are being put on and make sure that we exempt all inputs that come in from other country and crop protection tools that we utilize. That would help drastically to make sure that all that in retain those exemptions for them. And and of course, we need to look for ways to increase the production of those ag supplies that we need here in this country. And I know that take a big investment, I know it could take a long time, but if you look at our dependence on the rest of the world for these inputs, it really is important for us to do that because we surely don't want to be taken to our knees in when it comes to our food supply. It is a national security issue, and we have to do that.

I'm really glad I'm really glad you ended there because I think working both with USDA and Department of Energy, we can do more there to, you know, use the energy we produce to provide our inputs, and that's a double win: security on energy and security on food. So really think that's important. Thank you. Thank you, Mr. Chair.

Senator Smith.

Well, thank you, Mr. Chair and Ranking Member. I really appreciate this hearing and hearing the testimony of all of you. And as we think about what it's going to take to boost domestic demand for American-grown food and fuel and fiber, I want to just first say thank you all so much for your strong support for biofuels, year-round E15, and the opportunities around sustainable aviation fuel and marine fuels. And it's really exciting to think about what we can do with bio-based products. I know there are Minnesota companies that are working on this, and there's a huge opportunity there. I'm struck by how our innovation and value-add has always been our competitive advantage in this country. And that has been fueled by a big public-private partnership. You've got private industry, you've got academic institutions, you've got the federal government, you know, land grants, extension, all doing the kind of research that it takes. And I just hope, colleagues, that as we think about the role of the federal government as we think about a farm bill, that we are paying attention to the support that we need to provide to research because I I think it's just crucially important. I also just want to put a note on the impact of labor shortages that quite a few of you have been talking about and what that means for farm country. And I I can't let this moment pass without observing that in my home state of Minnesota, the administration's immigration policies has had a devastating impact on farm labor and food processing labor. And as farmers as we as we think about, you know, getting ready to go into the field and the work that we have ahead of us this spring, there are a lot of people that are just not there anymore. Not because they were here illegally, but because it is too risky for them, even with their legal status, to be here in Minnesota to do the work. So I just think we all need to think really hard about what impact these immigration policies are having on our domestic food production. But I want to go to something Mr. Perdue that you were talking about that I think is really interesting and very relevant to this conversation. We've got rising input costs, we've got the impacts of tariffs, the impact of the war, the Iran war on pushing these costs even higher. And it's no secret right that one of the biggest factors that we have here is the lack of options that farmers face because of corporate consolidation. And this is an issue both on the supply side, you know like where are you going to get your inputs, what companies control those inputs, and it's also a big issue on the demand side. If you are producing beef or corn or pork, the few numbers of who you can sell to. And Minnesota farmers will often say to me basically I feel more and more like I'm just a contractor to a big company, that my business is not even my own anymore. So this is an issue that many folks on both sides of the aisle have worked on in this committee. Could you just speak a little bit more to this and what impact you see this consolidation has on the overall competitiveness as we want to build bigger domestic markets for American-grown food in this country?

Senator Smith, appreciate the question. Senator Smith, appreciate the question. When you look at the reality of the markets again that we buy from and sell to, most of them are controlled by three, four companies control 80, 85 percent of those markets. And one of the things that I consistently hear from neighbors, friends, fellow farmers and ranchers across the state of North Dakota is input costs are just through the roof. Right. And you know we need to figure out some way to provide relief but you know now we have additional geopolitical tensions, right, the Strait of Hormuz and some of the challenges there driving another increase in already high fertilizer costs. That fertilizer costs on an acre of wheat is about 40 percent of your production cost. And that's going up 30 percent now. I mean that you can't make it work, you can't make it pencil out and we have to look at market structures and the ways in which they create challenges for market participants.

Right. And there are I would just add there's I mean there are a lot of good ideas on again as I said on both sides of the aisle. I have legislation with many of my colleagues to get at this consolidation issue and the direct impact it's having on the ability of producers to make a profit. And you know you said there's just not enough money in farm country and I would argue that there is a lot of money in farm country, it's just that it's going to fewer and fewer institutions and organizations and that's the problem that we have to get after. Thank you, Mr. Chair.

Thank you, Senator Ernst.

Thank you, Chair Boozman and Ranking Member Klobuchar and thanks for all of our witnesses for being here as well. I've been traveling across Iowa and I meet with farmers all the time and I hear one very clear message and many of you have stated it already: markets, not aid. Okay, I hear it all the time. Since coming to Congress in 2014, I've been fighting to grow our domestic markets and increase consumption of American-grown commodities. And today farmers in Iowa, whether you're traveling near my family farm in Southwest Iowa all the way over to the other side of the state in Eastern Iowa and across the country because I'm hearing it from you, all of these farmers are being squeezed by the high input costs and low commodity prices. So Congress has a real opportunity right now to respond by expanding our domestic markets, putting more money into the pockets of our producers and rural communities. And a new five-year farm bill would be an exceptional place to start and I do applaud Chairman Thompson for moving a bipartisan package in the House last week and I'm hopeful that we can make the same progress here in the Senate very soon. But the farm bill isn't the only avenue to do this. We should be looking at every opportunity to increase demand here at home. So we're going to stay on some of the themes you've heard already. The recent spike in oil prices following activity in the Middle East really reminds us how vital energy security is. Energy security is national security. Food security is national security. And how higher blends of ethanol can help keep gas prices affordable here at home. So producers and consumers alike deserve long-term stability. So Mr. Bower, how does E15 strengthen our nation's fuel supply and support strong grain prices for farmers?

Well, thank you Senator. You know to reiterate on what you just said, you know the conflict going on right now this is a prime example and a prime time to bring that strength and domestic production up so we're less reliant on all the foreign countries. It's so much better we grow a product here, we can produce it here, we can burn it here. It's a perfect opportunity for the American farmer and the American people. And I think we're in a prime position to move that forward. We're so close, we've been close many times and it's so relieving to see so much support in this room for that. Tremendous for us as growers too. I mean at a time when input prices are just completely out of sight and we're worried losing sleep every day on how we can possibly raise another crop next year and we need this market boost as we try to market last year's crop and try to figure out how to pay for the inputs this year. Prime time for this to happen and we need the support for the consumers. It's been mentioned you know if we can lower the price 25 cents a gallon, I mean everybody in America gets a break on this and it's I'm just so thrilled to hear all of you talk positively about it.

Yeah, thank you. Mr. Duvall, do you have any thoughts there as well?

Yes ma'am. It's vitally important. E15 is a no-brainer. It's a win-win-win. It's a win for consumer, it's a win for the farmer and it's a win for for you to make sure that you can do that for the consumer and for the farmer at the same time. So and there's no better time to do that especially with the threatening of some of the fuel and oil going up because of the war.

Yeah, absolutely. Thank you so much. I'll also add we need to make sure that the infrastructure requirements don't stand in the way of offering E15 to those who want that cheaper fuel source. And I am leading a bill, it's Ethanol for America Act to deem existing fuel equipment as compatible with ethanol blends up to 15 percent and it's a really simple fix and it would avoid costly infrastructure upgrades and build on the $4 to $6 billion in savings from securing permanent year-round E15. So President Trump has already asked Congress to deliver a bill to his desk and it's really well beyond time to act. I'd love to talk a little bit more about 45Z as well. We've got the clean fuel production credit hanging out there. I would like to see more work done on cover crops and other initiatives that our farmers have as well. I think that has been lacking. So I will be sending a letter soon reiterating this point and but Treasury and the Department of Energy and the Department of Ag they really have to work together to ensure that the final rule that they put together truly does put our farmers first. So thank you all for being here and with that Mr. Chair I yield back.

Thank you, Senator Slotkin.

Thank you, Chairman. And I want to welcome you all here and associate myself actually with a lot of things that Senator Ernst just said. You guys have been going through a lot. We owe you a farm bill. That's our job and we've always had a great tradition here, my former the woman I replaced Senator Stabenow and that was a big deal to her and so it's a big deal to Michigan. And I want to also put down it seems like very bipartisan E15 year-round. Can we just do it? I thought we were getting close. I thought there was a moment. Let's just do it, it's so good and good for the consumers, good for our farmers, it's good deal. I think the thing I want to talk about, you know we're talking about expanding American markets which is very important but just review the bidding on sort of where we are here. You know the I'm going to do this as neutrally as I can and I want you all to correct me because I'm not trying to be political, I'm just trying to review the facts for the farmers particularly specialty crop farmers. I come from Michigan and we are the most diverse crop state in the country with access to water. The president in his first term put on a bunch of tariffs. Our farmers started feeling it immediately and then he spent $23 billion in bailouts. And I have heard over and over again just like Senator Ernst: we don't want bailouts, we want access. We don't you know we don't want you know this money to be paid when we're suffering, we want access to markets. Second term comes in and the Secretary of Agriculture was here and I said like can we not rinse and repeat from the first time where we're having to again bailout farmers. We've put a bunch of different tariffs on, it's hard to know on a given day but right now so far the spending package the bailout package for farmers is $12 billion and we're just 14 months in. And so it feels like taxpayers are kind of in this do-loop where a bunch of tariffs are put on, we all want our farmers to succeed and in order to keep them afloat we have to bailout them with taxpayer dollars and it seems in my mind at least unnecessary. But in that package and Ms. Burns this is for you, we've had a real lack of clarity on what this aid means for specialty crop farmers. $1 billion out of the 12 was put aside for us. You just said in your opening statement it needs to be way more than that but we don't even know like how they're going to be calculating that aid, how to get at that aid, when it's going to come out. Can you hum a few bars on on what this is doing to our specialty crop farmers because I'm hearing it constantly.

Yeah, it's not doing enough. And if I think about that $1 billion we also have to share with others. So it's not just for specialty crops. So as I mentioned earlier, our expectation is that we get no less than $5 billion. We'd love to have $10 billion. But at the end of the day, we also need and want open markets. I think the critical thing is that the it's the mechanism and the construct of how that money gets distributed. That's where we need a process and some real support. It shouldn't be on acreage and it shouldn't be on product-by-product commodity. It should be on crop sales, revenues, receipts, however you want to say it. And that's critical. Our growers are hurting just as much as my colleagues here, and we don't have the mechanism and construct to get that money out to our growers, and that could be the biggest help that could happen right now for our growers.

Thank you for that.

You're welcome.

Mr. Duvall, I wanted to get your your sense, you know, we were talking the Senator was talking about Iran and sort of right before farmers are starting to think about planting, you know, more shocks to the price of fuel, more shocks importantly to the price of fertilizer. I don't think the average American understands the role of like the Strait of Hormuz way in the Persian Gulf to their farmer that lives down the corner. Can you walk through the official Farm Bureau position on this? You guys have been writing letters. Can you walk us through where you are on this?

Yes, ma'am, and I thank you for the question, and it is a timely to talk about what we need to be doing. We need for our government to use the Navy to make sure that those ships can freely come through and work with our partner countries to make sure that they come through there. Also the financial and insurance direction, you know, when when the strait was shut down, the insurance company, Lloyd's of London, cut off insurance.

They refused it.

They parked the boats and said we're not going to so we need to use every opportunity that we have in our country to make sure that we solve that problem. Once we get it here, we need to make sure that we waive the Jones Act. The President has often done that in difficult times like this. And we also need to make sure that ports and rail and everything that's going to bring it from the port here in America and get it to the farmer real quickly, tear down any barriers that might be in that area. And I think last but not least, but the the countervailing duties that are charged needs to be go off so it'd make it easier to get them here and make it more more affordable for our farmers. It is a serious time. My phone is ringing off the hook since last week when when the strait was shut down, and we need to do it, and we need to do it now.

Thank you. Appreciate that. Yield back. Thank you. Appreciate that. Yield back.

Senator Tuberville.

Thank you, Mr. Chairman. Thanks for being here today. My state Alabama, we're leaking oil bad. We had lost 150,000 farms and 25,000 farmers nationwide just a few years ago. You all know that. Mr. Duvall, I'm going to give all of you to answer this. One wish to correct this god-awful mess, what do we do?

I don't know that there's just one wish that can solve this problem, but we need open markets, we need a labor force, and we need to tear down regulation to to take down those barriers that gets in a way of us actually being able to make a living on the farm.

Thank you. Scott.

Yeah, thank you, and that yeah, there's there's not a one answer fits all on this, but...

Give you a good shot at it.

Give you a good shot at it. Well, let's we get some get some new markets opened up, continue continue with the trades that we've had. And then on domestic markets, you know, getting those ramped up, 45Z, we get get the RVO numbers out and finalized, get some domestic use done, that's that's going to help.

Ms. Burns.

Since Zippy said labor and and open markets, I'll I'll do a third one. And I think the federal government can take action to incentivize healthy eating and to incentivize and provide better access to domestic grown products, specialty crop products here in the U.S., and we can do that by driving consumption. Huge opportunity for us in the U.S. And Americans will be healthier.

Thank you.

Senator, short-term, it's that's a challenge for new markets, I think we all know. E15 is poised to be right there. But another one I need to bring up is we need to continue support for the renewal of USMCA. I think that is critical to row crop farmers. Mexico's our number one exporter of corn, Canada's our number one export market of ethanol, truly critical for growers in the short-term while we build out these domestic markets.

Thank you.

Thank you, Senator. Speaking for the cotton market or for the cotton production as a cotton farmer, we need to be able to leverage the power of the American consumer through the Buy American Cotton Act and get that passed. So, thank you.

Senator, I'd say the single biggest impact would be growing our renewable fuels markets. That's going to improve prices for corn and for soybeans. It's going to produce prices for or improve prices for wheat. We also need to make sure that we have strong and competitive fair markets for farmers to buy inputs from and sell their commodities to.

Thank you very much. Mr. Reed just talked about the Buy American Cotton Act, which I'm sponsor with my cohort Cindy Hyde-Smith here. I hear that this would totally revamp the cotton market. Because if we don't do something, we're going to lose it all. In Alabama, we're losing $400 an acre before even plant it. I mean, it's ridiculous. Why would we get in the cotton business? We we have to do something. Could you explain what this act would do?

Well, the American cotton farmer, we can produce the highest quality, most environmentally friendly, best crop, best cotton in the world. We can't produce it cheaper. And unfortunately, between other countries without as much regulatory environment and synthetics, we have been able to uncompete not compete we have been unable to compete on a world market. Our domestic textile industry has been decimated. Not only as a cotton farmer, but our whole industry, domestic textile industry, the farms or the gins and cottonseed crushing facilities. There's so much that goes into cotton production just beyond the cotton farmer. A lot of these small rural communities depend on all that. So when you lose the cotton industry, you don't just lose the farmers, you lose the whole industry in America. And we feel that the Buy American Cotton Act will reverse that trend and provide allow us to use the power of the American consumer that consumes 40 million bales of textiles a year. It will allow us to to bring that market back and to because there's rewards in there for domestic produced thread and fiber. There's a bigger tax credit. But it'll allow us to until our American mill industry comes back further, export cotton and then American cotton comes back in in garments that may have been produced overseas and they and brands and retailers get a tax credit. So it will increase demand for American cotton.

Thank you. Good explanation. Thank you, Mr. Chairman.

Thank you. Senator Lujan.

Thank you very much. Thank you, Mr. Chairman, for calling this hearing and for our witnesses for being here, taking a time away from home. I know it's not always easy when you have other responsibilities and that doesn't just include the farm, that that includes the family. So thank you all for taking a moment. Mr. Chairman, before I jump into questions, you know, I I just wanted to reflect on something here. We all fought for seats on this committee because we care about farms, we care about our ranchers, we care about people, we care about access to food. And I was a little saddened by the markup that came out of the House of Representatives on the farm bill because it's not bipartisan. It didn't take into account all of the programs that have been devastated that are hurting folks across the country. I certainly hope, Mr. Chairman, that in the Senate that we can show our House colleagues that we know how to count. Because, you know, growing up on that little farm, my grandparents, they they taught me when I'd go get those eggs that sometimes there weren't eggs and not to count them before they hatch also if we wanted some new chickens. And basic arithmetic around here seems to have evaded everybody. I don't understand if we're going to talk about getting a strong bipartisan bill here that's going to help all of our farmers and our ranchers and make sure we have food for people that are hungry and that we're going to do something real here, that we find a way to do it, Mr. Chairman. And so I just certainly hope that that everyone hears that loud and clear. And for me, if we can't address the food problem that was created in some of these pieces of legislation of devastating access to food for hungry people, that shouldn't be a starter for us. Because cutting these food programs and access to them, that hurts all the farmers across the country as well. Keeping grocery store shelves empty, that's not good for anybody. A big percentage of that dollar that's spent, I think it's 20 cents when it comes to buying food in those grocery stores, that little bit amount, that's what goes to farmers and ranchers. And then for all of our folks who aren't here that can food, I mean, hell, they're already struggling because the cost of the tin that it takes to make the damn can, they can't afford to do it anymore. And oddly enough, the tariffs, they don't hit the can that has food in it that comes into America, just the empty can. I'm just beside myself as I try to figure out all these these crazy rules. So I'm certainly hopeful that we'll get there. We're seeing now additional kickers when it comes to the cost of fertilizer, the war in Iran. I didn't realize that we got so much fertilizer input from that strait, and I am now realizing how much that's hurting our farmers and ranchers back home as well. And so I just hope that we look at this. Farm labor shortage, there's a bunch of USDA staff that have been fired. A bunch of farmers and ranchers back in New Mexico tell me that it's great to get a farm bill, but if there's nobody at USDA to implement all these programs that we create and fund, they don't get any help. So I certainly hope that when we talk about these programs that we have the USDA professional staff in place at the local level, at the federal level, to make sure that these programs actually get to families back home. Now, in my remaining time, Mr. Perdue, I'd like to begin by discussing the challenges facing specialty crop producers as well, and I hope we get a lot more attention in these spaces. We've gathered here today to talk about increasing domestic consumption of U.S.-grown agricultural products, and in March of 2025, USDA announced that the cancellation of two local food procurement programs that did just that, created a pipeline from local farmers to schools to food banks. The cuts at the LFPA and LFS made by USDA total about $900 million. Now, farmers and ranchers back home told me that these cancellations had negative impacts on their operations. Can you speak to the uncertainty these cancellations had on fruit and vegetable growers, especially folks who had made purchasing and planting decisions based on these grounds?

Senator, appreciate the the question and certainly there were benefits to the LFPA program or from the LFPA program to North Dakota. There was $400-some thousand in products purchased from North Dakota farmers, ranchers, processors that were then used to support hungry people through our Great Plains Food Bank. That's an important demand boost. We're a very rural state. If you want to have a base of demand for those small-scale direct marketing type operations, you need some of that institutional demand, and pulling that away certainly had significant negative impacts for many of those producers.

I appreciate that. Mr. Chairman, as my time expires, I certainly hope we keep an eye on some of these as well because these are good for farmers and ranchers. And look, for folks that are saying why why are all these Senators sitting up there, they don't know a damn thing about our farms. Look, my hands are cut up from cleaning a ditch this weekend as well. So the Senate's made my hands a little softer. So all the calluses I had when I was a kid, they've kind of gone away. I made a joke this weekend that, you know, one of the things that prepared me to serve in this body is when my dad used to make me clean the shit out of the sheep barn as well. But look, I took a shovel to a ditch this weekend in a acequia. These things go back hundreds of years in New Mexico, it's how we get water going. I think that a few of us need to take more shovels to the dirt and understand what you guys are going through every day so that we can fight for these programs that make a difference and make sure that we get to you as well. So thanks for having me today, Mr. Chairman. I look forward to rolling up my sleeves, working with my colleagues. Mr. Grassley, let's make sure that we get more places to cut up that meat and get it served on the plate, brother. So I look forward to working with all of you to get the work done. Thanks everyone.

Thank you, Senator Grassley.

I'm sorry I missed all your testimony, but listening to your answers to the questions of my fellow colleagues and what my staff said who heard all the testimony, I think all of you said things that I would agree with, so I want to thank you for your great representation of American agriculture and thank you for coming and testifying. I think I'm going to submit my questions for answers in writing and give you some of my frustrations and for the benefit of Iowa farmers and for the benefit of my colleagues here, some of the frustrations I have. And I'm going to start with a lot of things that have already been talked about here by my colleagues, but E15 and the importance of biofuels and Iowa being the number one producer of biofuels with about 50,000 jobs implied with it and a tremendous market for our corn. One of the frustrations I have is dealing with this refineries and the RINs and things like that that are holding up getting E15 by legislation because the frustration comes from the fact that for the last year or two years of Trump one and now Trump two and then the four years of Biden in between, we had E15 by presidential waiver and still have it by presidential waiver. And not any of those six or seven years did I hear one peep out of refineries. But somehow you're going to make it law and I think somebody figures I can get my hands in the cookie jar and benefit from it because I know that some of these mid-sized refineries are billion-dollar businesses and I'm not hearing from any small refinery that's not making some money. So what's the big deal? But it's holding it all up and we're not going to get that $14 billion that the economist for the Corn Growers Association says we're going to get if we can have E15 nationwide year-round if we don't get it by law because you're never going to get the retailers to invest in the pumps that it takes unless they know it's permanent law. And I just don't understand it, but we got to get it done. Now there's some good talk that we're getting close, but we were we were there in February until some refineries wanted to get their hand in the cookie jar and then we don't get it in an appropriation bill. So then they tell me, well, there's a good chance it can pass the House of Representatives as a separate bill if they get this final agreement, but you're never going to get it through the United States Senate as a separate bill. It's got to be put someplace and that could be a five-year farm bill, it could be money for the Iraq or Iran war when we supplement our defense expenditures, it could be this housing bill that's on the floor right now. But there's no reason that we can't get it done because and and this is all going on at the same time that we got people in the Congress and maybe even in the administration talking about we're going to give a handout to the farmers of a certain number of billion dollars in addition to the 12 that's always been there. And how many times have we heard farmers in Iowa say we don't want our money from the Federal Treasury, we want it from the marketplace? And and that's what it's going to take. I heard my colleague from Iowa talk about 45Z. We have some regulations for 45Z, but it hasn't covered agriculture and the only thing I want the administration to keep in mind when it comes to regulations for farmers to qualify for 45Z, don't make it as egregious as they did in 40B. Be a little more realistic when you require farmers to to benefit from their cut down in carbon. My last thing deals with tariffs. I don't understand if we're losing a dollar on corn, we're losing $2 on soybeans, if we can get the cost of production down a little bit, there's no reason we should have tariffs on phosphate coming out of Morocco when one company in the United States has 80 percent of the market. There's no reason we should have tariffs on anhydrous ammonia coming out of Trinidad when two companies dominate the market in the United States and there's no reason we should have any tariffs on potash. So you've heard me my opinion. Thank you very much, Mr. Chairman.

[Laughter.]

Thank you, Senator Grassley. Thank you. Senator Durbin.

Mr. Chairman, Senator Grassley and I may disagree on college basketball teams, but we agree on everything else that he had to say. Amen. And I have to tell you, you and I go back in this E15 debate to the days of gasohol. It goes back a few gasohol a few years ago. So I'm with you all the way on what you had to say on both those counts. I listened, I had a hearing I had to be ranking member on, but I listened to your testimony and there are three things that came out to me. Mr. Duvall, you talked about farm labor. I'm going to put in a word that you don't hear too often, immigration, and we have to be honest about immigration. I've got farmers, dairy farmers, people who own orchards and the like tell me they just can't get anybody to do it help them and they're going to give it up. They they do their best and they can't. And those that had loyal employees that came in from Mexico, for example, bring their families every year, good family relationship between the owners of the farm and the workers, they're scared to death to come to the United States right now. You know that for a fact and I do too. And it applies not just to farming, but it applies to processing as well. And that's the reality. We got to get serious about immigration when we did a bipartisan immigration bill, comprehensive bill with John McCain, I was on that group of eight senators, we had a farm program that was damn good. And if we had it today, we'd be much better off. The second issue that I want to raise and it applies to virtually everybody is tariffs. I I hear when a door closes when I meet with farm groups and they know nobody can hear them how frustrated they are with tariffs. Farmers have long memories. They can remember when Richard Nixon messed it up with Japan and put Brazil on the map for soybeans. Mr. Metzger, you know that story. And I think by and large this tariff thing, now that the Supreme Court has given it the boot, I hope it doesn't come back. It's not helping. And the third area is what the war in the Mediterranean is going to do to input cost. It's got to be bad. I mean, when you consider what goes through the Straits of Hormuz. So you got three things, three policy decisions by this administration that are really putting us in a real challenging situation. Mrs. Burns, I'd like to ask you a question if I can and I don't mean to pick on you, but one of the hottest I've been around Senate for a while, one of the hottest debates I can ever remember in the Democratic caucus was over the issue of GMOs. It went on for days and people were madder than hell on both sides before it was over. We got a new debate coming up and you know from Secretary Kennedy and others what it is. It's about processed food and what it means. Is it dangerous? Is it nutritious? What is it? Tell me if your industry, specialty crops, is thinking ahead about a proactive position when it comes to alternatives to processed food. Do you see some opportunity there?

Yeah, you're not picking on me, you're giving me an opportunity to address the question. So I we have such an opportunity here in the US to increase domestic production by increasing domestic consumption. As I said earlier, only one in 10 Americans are eating the right amount of fruits and vegetables. That means 90 percent of Americans are not eating the right amount of fruits and vegetables. Just an increase of 10 percent would be $33.5 billion. If we got the American population to eat the amount of fruits and vegetables that we're eating in protein, 50 percent based on the dietary guidelines, it would be an extra $134 billion.

Do you see this this whole debate about processed foods as an opportunity then?

I see an opportunity to drive incentives to purchase our products. So if you think about SNAP, you know, if we there are programs within SNAP that drive incentives for Americans to buy more fruits and vegetables in the SNAP program. So health is having a moment. You said it yourself, right? Health is having a moment right now. As a specialty crop industry, we must take advantage of that.

I go into a high school in Chicago, brand new school, beautiful school. As we're leaving, I said let's walk through the cafeteria. The principal says we're in a hurry. I want to see what you're serving for lunch. I'll tell you what they were serving for lunch: corn dogs, pizza, tater tots. How about that for a meal? I think we can do a lot better. And I think we need to be proactive in that area. So I'm glad I'm so happy to hear that you're not taking a defensive position on this, but a proactive position. And I invite the others at the table to see it the same way. There's going to be a national debate about nutrition. Let's do our darnedest to make sure it's balanced. Thank you, Mr. Chairman.

Senator Hyde-Smith, who's been waiting patiently.

Thank you, Mr. Chairman, very much and thank you to all of you for your willingness to come and testify. You've done very well and I certainly appreciate your efforts because I know you could be doing a lot of other things, but we're certainly glad you're here. I we're talking about this hearing to discuss ways to increase domestic consumption of US-grown agriculture products and the Buying American Cotton Act, which I introduced last year, would achieve exactly that. And I ask for unanimous consent, Mr. Chairman, to enter into the record a letter sent today to the Senate from industry stakeholders, textile mills, major brands and retailers, and farm bureaus from across the country, many represented on this committee. Companies like Target, American Trench, Gap, Dignity Apparel, all support this initiative.

Without objection.

Thank you. Congress must deliver on two things to save American agriculture before it's too late, before we have to rely on foreign adversaries such as China to feed and clothe us. And it is imperative that we, one, provide an additional round of short-term support to supplement the Farmers Bridge Assistance Program until the achievements of the one big beautiful bill act become available, which is going to be later in October. Two, invest in a long-term demand-building initiatives such as Buying American Cotton Act, which will reduce our reliance on ad hoc assistance and farm bill safety net programs in the future. This will help keep American farmers and ranchers in operation while saving taxpayer dollars down the road. Not long ago, a colleague from a state that doesn't grow cotton asked me, why should we support the cotton industry? It's too small for us to care about and we don't grow it in my state. Last year, the US grew more than 95 million acres of corn, 83 million acres of soybeans, but less than 10 million acres of cotton. Synthetic fibers are on the rise in a way. Well, here's why we should care about the US cotton industry and passing this Buying American Cotton Act. While cotton planted acreage is small compared to other major row crops, its economic output and associate associate jobs dwarfs other major row crops on a per-acre basis. Just do the math. The supply chain is far more intricate than other major row crops. That means jobs, money, more jobs and more money. US producers now have to export, as it's been mentioned before, more than 85 percent of the cotton they grow and we can use it right here. Just think about it. Most products Americans use today are made of synthetic fibers or foreign-grown cotton from Brazil and China. In Mississippi, we grow a lot of corn, soybeans, rice, sweet sorghum, peanuts, and cotton. Some see year-round E15 as the long-term fix for ag. Some point to the clean fuel tax credit. The list goes on. But if we pick winners and losers among commodities, we've already lost. We in Washington need to adopt a comprehensive strategy for domestic consumptions that lifts all of American agricultural products. That is how all growers benefit and it is the only fix worth having. Today I am here to emphasize that complex problems are rarely rarely solved with one simple solution and that Buying American Cotton Act should be part of the overall solutions that we are seeking. This question is for Chairman Reed and President Duvall. How would the Buying American Cotton Act support producers and the entire cotton supply chain and what will happen if Congress fails to strengthen the domestic cotton market?

Well first, representing the cotton industry I would very much like to thank you for co-sponsoring this bill. As you know cotton has been in a big decline, your state of Mississippi, I'm from Arkansas as you know in in that region of the country we have much higher production costs so we we depend on crops that are higher gross crops, higher value crops and cotton is one of those. In addition to that we have the whole infrastructure that surrounds it as as we discussed. But we are in a dire situation in cotton due to cheap cheap cheap domestic or cheap polyester and cheap foreign cotton. This is a way for us to leverage the American consumer to help support our industry. And there will be some cost offsets because the price of cotton goes up, PLC payments go down to farmers. So it's a win win across the board and also supports the industry the whole industry all the way through the supply chain. Well, first...

Thank you Senator. Wore my cotton tie today. I don't grow cotton but I know how hard they're struggling out there for that. Your your bill will incentivize companies to use American grown cotton which is a good thing for our cotton farmers. They need a market here in our country. When NAFTA was passed and all our textile mills left and went overseas, that's where our cotton had to go to and now we need need that production to become back to this country so that we can give them. But the key thing is not only will it help farmers, it's going to help rural communities. We've lost 1,700 cotton gins since 1980. 1,700. That infrastructure will never be replaced again. Never be replaced again. And all the jobs that went with it and and all the communities that depended on that infrastructure just went away. And we've seen it all over the Southeast and Southern part of our country. So that bill would be a tremendous help not only to farmers, cotton farmers, but it'll be a big help for our rural communities in those areas of our country.

Yeah because we want corn growers to grow corn but we want cotton growers to grow cotton. And I think Mr. Bower you mentioned that in a podcast this past week. I had a question on that but I'm out of time but thank you again for your willingness.

Thank you. Senator Warnock.

Thank you brother Chair. Look, I'm I'm all for helping our farmers sell their crops across the country and coming from the state of Georgia I I certainly support any any efforts to strengthen and bolster the hands of our cotton growers. But we're talking about increasing American markets today in part because international markets have been decimated by the President's tariffs. We need our growers to be able to sell here in the United States certainly. But we also need them to be able to sell globally and the President's tariffs taxes, which is what it is. Taxes have increased the cost of everything farmers need like fertilizer, fuel, and equipment and it's eroding the very slim margins that they already had left. It's a tough business I spend a lot of time with our farmers all across the state and I admire people who are just really committed to that work. Farmers for me are an answer to a basic prayer that we Christians pray all the time, give us this day our daily bread. And the margins are thin there's so much that you can't control. The President's tariff taxes have made a tough business even tougher. Mr. Duvall it's good to see you again always good to see you and thank you again for your leadership first over the Georgia Farm Bureaus and and now the American Farm Bureau. Now that we're approaching a year into the tariffs, what's the latest that you're hearing from farmers about the effects on their business since last April?

Well it's been it's been very difficult for our farmers because it has raised the cost of inputs. Some have been exempted, not all. But the loss of markets, we lost some markets in the first trade war that we never recouped. Now we're very appreciative of the work the administration has done in opening up some of that market but it we've never we haven't got back to to the place that we were in the first trade war. So we've had promises of frameworks of trade treaties all over the all over the world. I understand eight of them have been closed so we're very appreciative of that. But until we see ships leaving the dock with our products in it going to a destination, our farmers are not going to find any relief. And when it comes to fruits and vegetables, you know and you want to talk about USMCA and we're coming up on a review of it, it's so important for us to renew that. But it's so important for us to have something like a rapid response technique to be able to to deal with the flooding or dumping of products from other countries. You know our fruits and vegetable guys are devastated because when they go into production these other countries will dump product in there and just destroy the market and it takes it below the the cost of production for for our specialty crops. The other thing is we need to emphasize the importance of our federal government when they purchase foods that they purchase American grown food. And we have to protect those markets so that we give farmers certainty that they can stay in business produce fruits and vegetables. You realize that our school system 94 percent of the fruits that served in our school system come from out of country. 94 percent. 53 percent of the vegetables. Why? Because we probably can't we don't have the producers producing it because there's no certainty there. They don't have any risk management tools they and there's no protection from dumping from other countries and those things need to be solved before we can get the certainty out there and bring young people and farmers back into the business of producing specialty crops.

Well absolutely and you know as the ranking member on trade for the Finance Committee I'll be taking a close look at USMCA. On the other hand you know I think it would help if we could get a farm bill, a bipartisan farm bill passed through this Congress. I was glad to see that the USDA it it admitted that farmers have been hurt by the President's tariffs. It's one thing to have a theory of the case, the President clearly had a theory of the case he's had it about 30 years. I'm not sure that he's responding to facts on the ground. But now that we're beginning to hear from farmers they've they've admitted as much by providing a bridge payment program. But I was and I would point out that farmers while they appreciate the bridge payment program what I'm hearing from farmers all the time and and Senator Grassley said the same thing, we want trade not aid. But here we are, I was disappointed to see that only $1 million of the $12 million was dedicated for specialty crop farmers. As a former president of the Georgia Farm Bureau you know as well as anyone how important specialty crops are like blueberries, peaches, and peppers. What's your view on how much of the funding is going to specialty crop farmers based on your understanding of their specific market conditions? I know I'm running out of time Mr. Chair.

$1 million doesn't even come close to covering the losses that we had in specialty crop. And like in other programs that are there to protect a producers specialty crops do not have those risk management tools and they don't get the attention that they need because in this country the consumer is wanting more and more of those fruits and vegetables. And to compound that problem is the lack of labor. It's a lot more labor intense and we don't have the labor to actually get out in the field pick it, harvest it, and get it to the stores.

So across the board tariffs putting pressure on farmers and immigration policy that is so unforgiving that you're struggling with labor and now we're facing USMCA. All of these make for a difficult mix for our farmers. I think we need to listen to the farmers here what they're saying and then we have a chance of getting the policy right. Thank you so very much for your work and thanks to all of the witnesses.

Thank you. Senator Fischer.

Thank you Mr. Chairman and thank you to to our witnesses for being here today. It is no secret that we're facing challenging times right now with the farm economy all across this country. So I appreciate this hearing and the need to reinforce how we can grow demand. While it's been touched on already, it is really important for me to under to underscore the importance of biofuels as a key demand driver for the Nebraska crops. Not only do biofuels drive demand for our crops but they play a crucial role in our energy security. There are several ways before us that Congress and the administration can and should take action and they should take it immediately that I'd like to touch on. Mr. Bower, through a patchwork of regulatory actions we have had year round E15 now since 2019 but that patchwork of emergency fuel waivers does not provide certainty. How does Congress passing a year round E15, which I've had a bill for that for 10 years, how does that translate into greater corn demand?

Well Senator thank you for being such a champion on this issue. Your leadership has has given us all hope. So as as I've mentioned before you know this is just truly at a point that was pivotal for the American corn farmers. You know E15 would provide certainty to the retailers which in turn builds the infrastructure out to lower the cost for consumers and then in turn bring that back to the corn farmer in a time when we're so desperately in need of some relief. I can't emphasize how much it would mean just to my operation and and to all my friends and colleagues across the country. We're we're all in a tough time and it's not only the growers but the consumers as well saving them at the pump but we have to have that certainty for that infrastructure to go in and for people to to have the ability to find that at every station.

I appreciate you talking about consumers because this this is a way that we can save consumers money every time they fill up at the pump. So thank you for mentioning that. Mr. Metzger, the RFS set two rule is currently pending at OMB for soybeans. Can you discuss what strong RVOs will signal to the market?

Yes thank you Senator. With with the strong RVOs that are that are in the Office of Budget Management is going to be critical. We get up into that 5.61 billion gallon area with a and that that's going to be a lot of bushels that's used up domestically here and it'll help help with crush and oil together to get to get bushels used up and help help drive some of this domestic demand that we're needing. The soybean farmers are in are in the same boat you know this this last year we were about $109 an acre loss. We were also the lowest on on the on the FBA payment. So it's you know things like this are going to be critical for American soybean farmers to be able to to become more economically viable in the future.

And when our corn and corn and soybean farmers are successful our rural communities are strong and the heartland of this country is strong. Rural America has value and and sometimes that's that's hard to explain to to some of my colleagues. But it is so important that we continue to find that dignity in hard work, to find that value in strong communities and strong families. So thank you both. Mr. Duvall, welcome, good to see you. As I mentioned, E15 is a significant byproduct of corn and it's helped add value and utilize more out of each bushel of corn. With Nebraska being the beef state, beef byproducts are also essential in driving domestic and international demand. From hides to specialty cuts, the industry has significantly increased its efficiency in using those cattle carcasses. We also have seen interest from some producers, whether in the cattle, dairy, or hog industries of turning animal wastes into potential streams of revenue. So Mr. Duvall, how do we continue to bolster the development of new byproducts for the livestock industry and what opportunities do you see for maximizing potential revenue streams from all livestock production?

Well thank you ma'am and thank you. Well thank you, ma'am, and thank you for the opportunity in your question, which is not a real simple one to answer, of course, because most of that market for those byproducts is overseas and that means good trade treaties and making sure that we can move those products out of here and giving individual farmers access to that. One of the big problems is to have those byproducts that a farmer can use, farmer doesn't have any place to take their animals on a small scale. The big four packers dominate it and there's very difficult to find local processing plants for smaller amounts of cattle that could be or any livestock to go through. So to help small processing plants to be able to be developed with low interest loans or some kind of grants so that they can sustain themselves in these communities would be big. I'm in the beef business myself and I would love to take a certain percentage of my cattle straight to the consumer, but there's nowhere within 400 miles of me to be able to process it and get it done, so it's not practical to do that. We need more small processors around so that farmers can utilize straight to the consumer and also take some of those byproducts and expand on that. But research and development dollars and investment in that infrastructure to be able to handle that would be a necessity.

I agree with you. You know, as the beef state, we have cow-calf production, we have backgrounders, we have large and small feedlots and we have three of the four big packers in the state, but we're also seeing growth of smaller packing plants in Nebraska and I agree that that's a direction we need to go and one way we can address that I think at the federal level is looking at the regulatory environment that affects all of agriculture, but sometimes is a really large hindrance when you're looking at putting up those smaller packing plants that can help smaller communities and still be able to thrive in a marketplace with the big four. So thank you.

Yeah, the regulatory requirements and the cost that goes with that and the lack of technology that we're allowed to use in those smaller plants and whether or not they could afford it. So it's just like any other technology or innovation that comes down the pipe. Bigger producers can afford that where smaller and middle-sized producers can't afford it and it's putting pressure on them and pushing them out of business, whether it be a processor or a small family farm. And we have to bridge that gap to make it affordable so that they can use those innovation and technology in the future to preserve that small family farm that the American people are in love with.

I've got some bills on that with precision agriculture to be able to have our small farmers take advantage of all that really cool technology out there that will help them be more profitable and it's also good for their economy but the environment as well. So thank you, sir. Thank you, Mr. Chairman, for allowing me to go.

No, thank you. Senator Marshall.

Thank you, Mr. Chairman, and welcome to all of our guests, our witnesses. We do appreciate you being here. Mr. Duvall, if I told you I have an export market that we could double overnight, that we typically export about two billion bushels of corn, maybe 2.3, but we have a new market that would add an additional 2.5 billion bushels of corn consumption, would you be excited about that?

I would be real excited and celebrate with you.

Yeah. And of course we've got that in our backyard. By going to year-round E15, it would be the equivalent of doubling our exports. And the beauty of that is we don't have to depend upon the ups and downs of having to deal with another country and maybe a different administration, all these types of things. So this would how big of a win would this be, Mr. Duvall?

It would be tremendous.

Yeah. Mr. Bower, anything to add, how important year-round E15 is and is there anything that's a bigger priority right now for agriculture that could really change net income today?

You know, when you talk about all the bushels, Senator, and the amount of acres corn happened to cover this past year, I mean, a lot of farmers are looking for a way to make a profit and they're hoping this is the light at the end of the tunnel. I think we've seen a lot of acres transition just for the hope that we're going to get E15 and we might bring some profitability back. So that is our number one priority and we truly hope that it gets over the line here soon.

Yeah. And then if I told you that I have another export market that would consume even more corn than year-round E15 and I talked about 45Z. What would be the go ahead again, Mr. Bower, what would be the impact of 45Z potential market?

Again, Senator, absolutely tremendous. The American corn farmer's the best in the world at raising corn. You give us a goal, we'll raise the corn and we'll produce the corn. We just need the markets.

So this was the number one ask I had for President Trump and his team going into the election is to proceed with 45Z. And it's here. We even got undenatured alcohol in there so that we can export it as well. Mr. Duvall, are you all happy with the President's rules for the 45Z?

Currently we are. Of course we could always modify them a little bit and I don't want to get into the weeds of that, but yes.

Okay. Looking through, Mr. Duvall, your own your graphs here, it's very enlightening that we saw a record decline in net farm income in 23 and 24. Net drop in farm income in 23 and 24. And then when we talk about input costs, and I think that's probably the number one challenge right now is input costs. Input costs stayed stable in 2016, 17, 18, 19, 20. 2021 is when we saw it looks like just a record increase in input costs and they continued upward. But they haven't come down. People tell me input costs come down when the commodity prices come down. And I'll open it up to anybody. Why did the input costs go up so much and then what are the solutions?

Senator, I guess I'll start. The input cost went up because they could. Nobody told them they couldn't. As farmers, we're left out in the weather, in the cold, and there's been a lot of consolidation in that realm and with a lot of things happening around the world, our ability to source fertilizer and inputs has really declined and we're left stuck with what we got, unfortunately.

When you say no one told them they couldn't, what you're really referring to is a concentration of industry. When we speak of input costs, really what we're talking about are chemicals and fertilizers. They would be the big chunk of input costs. Certainly diesel fuel is in there as well, but until nine days ago, diesel fuels were coming down. And even interest is a huge expense for farmers. Average Kansas farmer a million dollar operation loan, interest rates went from two to nine percent overnight. So it's good that that's coming down as well. Mr. Duvall, anything to add on input cost, why and what else what can we do to help impact these?

Well we know the events around the world with the war in Ukraine and now the war in Iran is not helping things at all and it's been challenging. Of course we've encouraged the people that are providing those inputs to be more transparent so that we could more understand on the farm why those increases have come so high. The other increase you haven't even mentioned is the increase of machinery. I mean if you just I don't grow cotton, but I know you can't touch a cotton picker for less than a million dollars and it does one thing, it picks cotton for about a month. And it does one thing and it has probably doubled in price in the last five or six years. So there's really no explanation other than what's happening around the world and I think there needs to be more transparency so that we can understand why these inflated prices are there.

Okay. Mr. Chairman, I think I'll just leave it there. Thank you.

Thank you very much. I just got a couple more things. Matt, Mr. Perdue, tell me, I had a situation this has been probably five or six years ago where I was at a meeting and they were talking about sweet potatoes. Actually I was meeting with a guy, this was a guy that farmed all kinds of stuff and just a guy that knew how to make it work, like you all at the top of your fields. But he I told him I said I'm going to go to a meeting about sweet potatoes, again, not a lot grown in Arkansas. And he was intrigued by that, so he said, well, I'm going to come with you. So he get, you know, get in the car and go over there. He looked at the presentation, researched it, and then wound up planting a bunch of sweet potatoes and made a bunch of money out of it, you know. I don't know what they're doing now or whatever, but at that time, you know, again, savvy guy. Are we doing a good job informing our producers, our farmers about the alternatives? You know, again, we're in a situation now where this isn't the first year it's been bad. What's making this year so bad is it's the third year of being bad. And I see John Newton out in the audience, our great economist. He's going to tell us that next year doesn't look a whole lot better, okay? So it really makes it difficult, you know, these years doubling up. Are we doing a good job of telling the agriculture community to, you know, to start looking for ways to look into different crops, not necessarily not doing their own crops, you know, or what they're used to, but in addition?

Senator Boozman, appreciate the question and there's always room to improve research and extension and making sure that producers understand the opportunities available to diversify their operations. Where I think there really needs to be a focus is creating those market opportunities. You know, on our farm, we raised malt barley for many years. And we don't do that anymore because there's not local contracts. And I think that's a good reminder to us all to drink more beer. But I think it also demonstrates that, you know, you need to have that local market outlet. On the other hand, you see in southwestern North Dakota, there was hardly any corn raised for grain there 15, 20 years ago. There's an ethanol plant now. A lot of people are have a lot of success raising corn for grain and selling it to an ethanol plant. The market opportunity is what people need and we need to make sure that we're providing more diverse market opportunities for producers.

So let me ask you, Mr. Metzger. So let me ask you, Mr. Metzger, in regard to that, you know, as we have, you know, some things coming on the line with opportunity, are we worried about people changing their planning decisions and then you're in a situation where everybody's growing and then you have increased, you've got increased supply and then that lessens your cost?

Yeah. Does that make sense? Yeah, thank you, Chairman. Yeah, that's always an issue dependent on, you know, how rotations go every year. You know, there the in the we get in these tighter economic times like this, a lot of times there will be more soybeans planted, an increase in soybeans and a little bit decrease in corn acres. And that would be a concern, but that's where, you know, we get some of these some domestic demand use up with it. Get the get the RVOs out and that'll help that'll help those increased acres that we have if, you know, if the if the higher yields come to fruition with it.

Very good. Cathy, you got any words of wisdom as we leave?

Yes, I'm so excited that they grew sweet potatoes. Those are our people. So that means the demand for sweet potatoes must have been increasing. Right now, specialty crops are grown in all 50 states. And the easiest way for us to look at expanding domestic production is by expanding domestic consumption and also opening markets. So absolutely, our growers will grow anything, they will increase their acreage if the markets are there and the demand is here domestically. And at the end of the day, it will improve the health of all Americans.

How many how many specialty crop producers have we lost in the last 20 years?

Well, total farms over the last two decades is about 230,000.

It's like 80 percent, isn't it?

Yeah, I mean, it's, you know, and it's a significant amount. So because of the high input costs, because of the labor challenges, I mean, that's the biggest challenge is if you think about if we could just get 50 percent of Americans eating the recommended amounts of fruits and vegetables, imagine the labor it's going to take to harvest harvest that.

Well, my concern is, again, you know, we can look at specialty crops. This stuff, like I say, didn't start this year, you know, it started a long time ago, this slide. But there's such a great example of what can happen in the sense of losing so much. My concern is that that's going to spread, you know, across the commodity sector also. We need to beef up specialty crops, we need to protect what we have in the commodity sector. And that's really going to take all of us working together. So we appreciate you today was very helpful. I can't tell you how busy it is around here. It is busy right now. There's lots going on, but we had all kinds of members come and participate, so you can be very proud of that. That says a lot for you all that they actually wanted to hear what you had to say. So again, we appreciate it. And the way you can help us, and I speak for myself and Senator Klobuchar, is just let us know let us know what you're thinking. You're not a bashful bunch at all, we don't have to worry about that. But we really do appreciate all that you do and helping us get through a very, very difficult time. So thank you very much. With that, the I got to do my where's my stuff? Okay. The record will remain open for five business days. Today's hearing is now adjourned.