Key Takeaways
- •Senators and witnesses advocated for expanding domestic markets for biofuels, cotton, and specialty crops to mitigate financial losses caused by high input costs and international trade volatility.
- •Zippy Duvall (President, American Farm Bureau Federation) testified that farmers require structural market improvements, including modernized labor programs and permanent E15 access, to move beyond emergency aid.
- •Sen. Boozman (R-AR) and Nathan Reed (Chairman, National Cotton Council) discussed the decline of domestic textile processing, with Reed advocating for tax credits to incentivize American cotton use.
- •Members found bipartisan consensus on year-round E15, but Sen. Klobuchar (D-MN) and Sen. Slotkin (D-MI) raised concerns regarding SNAP funding shifts and the long-term impact of trade tariffs.
- •The committee will next examine regulatory and tax obstacles with processors and retailers to develop a bipartisan Farm Bill that strengthens domestic supply chains and agricultural resilience.
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Hearing Analysis
Overview
The Senate Committee on Agriculture, Nutrition, and Forestry held a hearing on March 10, 2026, to examine strategies for increasing the domestic consumption of United States-grown agricultural products. Chairman John Boozman (R-AR) opened the hearing by highlighting the "great financial stress" facing American farmers, noting that high input costs, high interest rates, and low commodity prices have made row crop production currently unprofitable. He specifically cited a rise in Chapter 12 farm bankruptcies in Arkansas. The hearing aimed to explore how the U.S. can build more robust domestic markets to insulate producers from the "whims of foreign governments," particularly citing trade headwinds from the People's Republic of China and competition from the Federative Republic of Brazil.
Key Testimony
Witnesses provided testimony on a variety of sectors. Zippy Duvall, President of the American Farm Bureau Federation, emphasized that while export markets are vital, domestic demand must be expanded through biofuels and federal purchasing. He noted that the conflict involving the Islamic Republic of Iran is expected to cause fuel and fertilizer costs to soar. Matt Perdue, President of the North Dakota Farmers Union, argued that corporate consolidation in ag-input markets is compressing farmer margins and called for stronger antitrust enforcement. Nathan Reed, Chairman of the National Cotton Council, testified on the decline of the U.S. cotton industry, noting that Brazil has surpassed the U.S. as the leading global cotton exporter. Jed Bower, President of the National Corn Growers Association, focused on the potential for corn-based ethanol in sustainable aviation fuel (SAF) and marine fuels. Cathy Burns, CEO of the International Fresh Produce Association, advocated for increasing specialty crop consumption through federal nutrition programs. Scott Metzger, President of the American Soybean Association, highlighted the growth of soy-based bioproducts, including a PFAS-free firefighting foam.
Policy Proposals
Several specific policy proposals were discussed. A primary focus was the Buying American Cotton Act (BACA) of 2026, which would provide a transferable tax credit for businesses using American-grown cotton. Witnesses and senators also expressed strong bipartisan support for making E15 (15% ethanol blend) available year-round and permanent. Senator Joni Ernst (R-IA) discussed her Ethanol for America Act, which would deem existing fuel equipment compatible with E15 to avoid costly infrastructure upgrades. There was also significant discussion regarding the 45Z Clean Fuels Production Credit, with witnesses urging the United States Department of the Treasury to finalize guidance so the soy and corn biofuel value chains can utilize the credit.
Overview
The hearing addressed significant industry and sector impacts. The textile industry was highlighted as a sector in need of revitalization through BACA to reverse the loss of domestic cotton gins and mills. The biofuels sector was identified as a critical driver for corn and soybean demand, with the potential to expand into the plastics market. The specialty crops sector sought increased funding for the WIC fruit and vegetable benefit and the modernization of United States Department of Agriculture (USDA) procurement to prioritize nutritional value over the lowest cost.
Policy Proposals
The discussion involved several key organizations. The USDA was frequently referenced regarding the administration of the Farmer Bridge Assistance Program and the cancellation of the Local Food Purchasing Assistance (LFPA) program. The Environmental Protection Agency (EPA) was urged to finalize Renewable Volume Obligations (RVOs) for 2026 and 2027 to provide certainty for the biofuels market. The American Farm Bureau Federation and the National Farmers Union both advocated for a modernized five-year Farm Bill to provide a stronger safety net. The International Fresh Produce Association (IFPA) pushed for the inclusion of more fresh produce in the National School Lunch Program. The National Cotton Council and the American Soybean Association (ASA) emphasized the importance of their respective checkoff programs in developing new domestic uses for commodities. Lloyd's of London was mentioned by Zippy Duvall in the context of the Iran conflict, noting that the company had cut off insurance for ships in the Strait of Hormuz, further complicating the delivery of agricultural inputs.
Partisan dynamics were largely collaborative regarding the need for a new Farm Bill and the expansion of biofuels. However, Ranking Member Amy Klobuchar (D-MN) and Senator Tina Smith (D-MN) expressed frustration over proposed cuts to the Supplemental Nutrition Assistance Program (SNAP) and the lack of bipartisanship in the House version of the Farm Bill. Senator Elissa Slotkin (D-MI) questioned the "do-loop" of trade tariffs followed by multi-billion dollar taxpayer bailouts, arguing that farmers prefer market access over government aid.
Notable exchanges included Senator Tommy Tuberville (R-AL) asking witnesses for a "one wish" solution to the agricultural crisis, which elicited calls for labor reform, open markets, and reduced regulation. Senator John Hoeven (R-ND) discussed the need for additional disaster assistance to bridge the gap until new Farm Bill provisions take effect in October.
Overview
The hearing concluded with a consensus on the urgency of passing a bipartisan Farm Bill. Chairman Boozman indicated that the committee would continue to explore domestic market development, with future discussions planned involving processors, manufacturers, and retailers. Witnesses urged the Treasury and EPA to meet upcoming deadlines for tax credit guidance and fuel standards to ensure market stability for the 2026 planting season.
Transcript
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.
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