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tv   Hearing on Agriculture Economy - Part 2  CSPAN  February 17, 2025 6:38pm-8:02pm EST

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are you done? ok, good. thank you all for being here. this has been excellent. here. >> let's take a second and get our second panel up. >> can we say thank you >> can we say thank you again? all of you are invited to our convention next year in anaheim the celebrate a new farm that's going to pass. [inaudible] >> bless your heart.
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[inaudible chatter] >> ok, let's rock and roll. orders are the chairman will say, the committee will now reconvene. i'm going to start with an introduction and then i'm going to call on senator tuberville for an introduction, then senator moran. by that time senator boseman
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likely will be back. we have a quorum call going on right now. i think we have established the quorum so hopefully that is covered. then we do have another vote. actually we have the vice president coming, who is probably here by now, regarding budget reconciliation and some other things. there's a lot going on right now, it's a little chaotic. that doesn't take away from how much we really appreciate all of you being here. your expertise is vitally important. the commodity groups you represent are critically important, not just to our farmers and ranchers but our ability to make good farm policy here. policy. thank you for taking the time and making the effort to be here. i'm going to start out with introducing josh gaggle the chairman of american soybean he actually farms near calum,
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fairly famous because it is the hometown of angie dickinson, but maybe now it is more famous as the hometown of josh gackel. i think you should farm in the nearby town of gackle, north dakota. he grows soybeans but also corn, wheat, barley. for eight years he led the north carolina soybean growers association and did an outstanding job. he is doing an outstanding job as chairman of the american soybean association. i had him at a field hearing near fargo, north dakota. senator boseman came out for it as well as the ranking member, senator klobuchar, and also senator king smith who is on this committee as well. josh testified and did a great job. i appreciate you being here and all your work on behalf of your fellow farmers. i would like to turn to senator
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tuberville. sen. tuberville:. thank you, assistant chairman, i guess you would call it. soybeans in north dakota. >> cass county is the number one county for soybeans in terms of volume in the country. sen. tuberville: i have never been invited up there. >> you are invited right now. sen. tuberville: today i am proud to introduce mr. garrett moore from chancellor, alabama, a proud fourth-generation farmer in the alabama wire grass region , the southeastern part of the state. he is also a proud veteran of the u.s. marine corps, having served as an infantry man for four years, some of that overseas in japan near the dmz of south korea. after completing his military service, garrett wanted to return to his roots and farm in
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l.a. deal that's lower alabama. he currently farms nearly 1500 acres of peanuts, cotton, corn, and cattle with his father across southeast alabama. garrett is chairman of the coffee county young farmers association, alabama farmer of the year recipient, and part of the southern peanut farmers leadership academy. i am grateful for the hard work garrett has done to produce food and fiber for alabama and advocate for our young farmers, and also being an auburn tiger fan. garrett, thanks for being here today. >> thank you. senator moran from the great state of texas. sen. moran: kansas. >> they are both great states, but one is better than the other. sen. moran: good morning, and i think the chairman for allowing me the opportunity to introduce a kansan who appears with all of
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you on this panel. amy france is a native of leota, kansas, population 4175. make me think of he haw, salute my hometown. you all are too young to remember heehaw. the county that leota is in his wichita, population 252,000. my point is amy lives in a very rural part of kansas. she didn't grow up on a farm, but she found a love for this industry called agriculture after meeting her husband clint. together they operate the french family farms near scott city, growing sorghum, corn, and wheat , and raising cattle with their children and grandchildren. priming alongside her family, five children and two grandchildren. her family has been a priority for amy, and she has been instilling kansas values and her
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children and an understanding of what it means to be good stewards of their land. they share the produce that they grow on their farm with their community, and amy has stated how she has focused on being a better farmer, not just a bigger farmer. amy has long been a leader in agriculture with her roles on the local farm bureau board and the young farmers and ranchers committee of kansas farm bureau. she's also the first woman elected to the national sorghum producers board of directors. she's a leading voice for our nation's sorghum producers and that culminated in her appointment as the chairwoman of the national sorghum producers just this last august. she also worked at the first national bank in scott city, the area big town, population 3931. she worked there for a decade, giving her a background in kansas community baking -- banking and how that relates to agricultural family lending and
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how we strengthen family farms. with this market uncertainty, high production cost, the drought we have had in our state , amy's consistent advocacy for disaster relief and crop loss assistance has made her a key voice in the fight for a better agriculture economy. mr. chairman, thank you for conducting this hearing and amy, thank you for fighting for our nation to vs sorghum farmers. >> thank you, senator moran from the great state of kansas. sen. moran: thank you, mr. chairman of south dakota. >> we go back and forth as to who is the number one wheat producing state, kansas or north dakota, on a regular basis. we work together a lot. let me acknowledge all of our witnesses here today. and i do want to thank you for being here. on this panel we have mr. nathan reed, who is on the board of directors for the national cotton council, from marianna,
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arkansas. mr. kenneth hartman jr., president of the national corn growers association. good to visit with you yesterday in my office. thank you for being here. his farm is near waterloo, illinois. mr. keeff felty, thank you for being here. president, national association of wheat growers, from altus, oklahoma. not north dakota or kansas. we have been bragging about our wheat. are you close to the kansas border? >> snow, southwest oklahoma. sen. hoeven: mr. chris engelstad, president of the national barley growers association, from fertile, minnesota. i certainly know where that is. ms. amy france, chair of the national sorghum producers, scott city, kansas. of course josh gackle, who i introduced a minute ago. mr. garrett moore, member of the
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u.s. peanut federation from chancellor, alabama. mr. tim deal, vice president of the american sugar beet growers association from doran, minnesota. and that leads us to mrs. jennifer james, board of directors, usa rice, newport, arkansas. i know how excited our chairman is to introduce both you and mr. reed. i see he has book ended this, which does not surprise me a bit because he knows how to cover all the bases. with that, i will turn back to our chairman, senator boseman. -- boozman. chair boozman: thank you, very much for your help. sen. hoeven: i did mention that inadvertently when i introduced senator moran, i said the great state of texas inadvertently.
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i was thinking about my white from texas. -- my wife from texas. i think he is still upset about it so maybe you can give him some special dispensation. chair boozman: being from arkansas, i understand why he would be upset. let me introduce and add a little extra to our arkansas folks. nathan reed, a great arkansan, from marianna in the heart of the mississippi delta region. his wife kristen and four wonderful children grow cotton, rice, corn, and soybeans. nathan currently serves on the board of directors for the national cotton council. back in arkansas he serves as executive officer with the arkansas ag council and serves on the arkansas plant board. which is a thankless job. over the years i have had the pleasure of getting to know nathan and listen to his experience, the challenges he faces, he and his family.
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you will find him to be resourceful, resilient, and a wealth of knowledge when it comes to farming. i look forward to hearing his testimony as he represents farm families across the cotton industry. thank you for making the trip. jennifer james, we are very honored to have her. jennifer is a fourth-generation farmer from newport, and saw, where she and her husband, father, and son grow rice, corn, and soybeans on their century farm. has an active member of usa rice, she serves on the farmers board of directors. the foreign policy task force and a number of other committees within the organization. jennifer's many accolades are testament to her impressiveness as a farmer. she has been recognized as the 2017 field to market farmer of the year in the 2019 usa rice
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farmer of the year, the first ever woman elected to serve on the rice board of directors. and 20 23-24 outstanding alumni of the university of arkansas college of agriculture and food life sciences. she also lends her expertise to the epa agency or rural communities federal advisory committee. we look forward to your testimony. i think all of you for being here. honest the things i thought was really important, senator klobuchar and i thought was very important, was trying to establish the fact that the situation that the farm community is in right now. that's really why we wanted to get you here. we look forward to you telling us what's going on on the farm, the challenges you face, so we
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can continue to figure out working together. the nice thing about agriculture , it's not about democrats and republicans. it's about trying to figure out a path forward with some of the challenges you all are going to be talking about, and some of those expressed by our two previous witnesses. let's start with you, nathan. mr. reed: thank you. i want to thank the committee for the opportunity to testify and share our stories. i am nathan reed from marianna, arkansas. my wife kristen and i farm 9200 acres of cotton, corn, soybeans, and rice. i am blessed to farm and the arkansas delta. we produce high-quality cotton with yields that surpass, many years, the cotton belt. despite technological improvements, it's impossible to yield our way out of the current economic crisis. i have grave concerns about what the future holds.
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for me and for other farm families across the country. i know producers that have spent their entire lives farming but may not be able to secure operating loans this year. my equity is depleting every year. my children love growing up on the farm, and one day i would love nothing more than for them to join me in this business, just as i was able to join my father. unfortunately, considering the current economic climate it's hard to imagine such a possibility. our industry understands we must look inward to address the current challenges. there are some problems that congressional leaders may not be able to solve. he must work with the companies to get production costs more in line with global competitors. we must also find innovative ways to increase demand for u.s. cotton. we are grateful to congress for providing economic and disaster
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assistance for producers this december. but we must recognize that even timely delivery of economic relief may not be enough to present farms from failing. producers need the multi-your certainty that only a new farm bill can provide. we must ensure any new legislation can take effect in the 2025 crop year. i commend chairman boozman for offering a farm bill framework that addresses many of the national cotton council's top priorities by advocating for significant increase in the poc reference price and improved access to individual and areawide crop insurance products. we hope the next farm bill will also modernize usda's marketing assistance loans for pima cotton, and provide increased support for the u.s. textile industry. i would like to thank chairman
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boozman for recommending increases to commodity title payment limits. a higher poc reference price would likely do more than any other single farm bill reform to reassure farm lenders. cotton costs in production today are roughly 25% higher than support levels are in the 2018 farm bill. the bankers i speak with don't want to rely on last-minute temporary aid from congress. instead we all want long-term solutions. in closing, my wife, four children, and i live and work in the arkansas delta, where agriculture is the lifeblood of the local economy. any of us who are parents know the obligation we have to protect and provide for our family. if congress does not act quickly to provide an adequate safety net, i will be forced to answer a few very difficult questions. am i putting my families faith are at risk by continuing the
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mission of farming? -- the tradition of farming will one happens to my local community about the backbone of agriculture? what happens to our country if we lose the ability to produce the food and fiber we need? that's not an exaggeration. it's questions that i and many other producers are asking. thank you for the opportunity to testify and i would be pleased to respond to any questions. chair boozman: thank you, mr. hartman. mr. hartman: thank you. i am a fifth-generation farmer from waterloo, illinois, where my family and i, including one of my daughters, operates a grain farm. i am serving as president of the corn growers association. i would like to focus on the need for strengthening the farm bill, action congress can take this year to support corn growers.
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the united states is a corn producing superpower, growing about one third up the corn in the world. despite record-setting productivity, the value of corn production has dropped substantially, but costs have not. the average price farmers receive in the market has declined 40% from 2022 to now. the average cost to produce corn has only declined by 6%. a major component of the cost to produce corn is fertilizer, representing about one third of the operating cost. all prices have declined from 2020 peak. but costs remain relatively high. on average the american corn farmer is facing losses of over $160 per acre of corn for crop year 2025. following losses over $100 per acre in 2023 and 2024. sustained high input cost and dropping commodity prices leaves american farmers in a vulnerable
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position. corn growers appreciate those who work hard to include agriculture permission -- provision in the relief act. we are working to ensure the timely notice of economic disaster programs. once the aid is received, it would be appreciated by growers, particularly those who have faced steep financial strains from the recent years of crop and revenue losses. as we look ahead, further action is needed to improve the farm bill safety net programs and market outlook. corn growers are disappointed that the solution for nationwide year-round e15 was not included. it would come at no cost to the federal government and would boost the corn economy. we appreciate champions on capitol hill, including senators fisher, klobuchar, a ernst who continue to lead on this important issue. as a grassroots association, we
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have worked to prioritize policy recommendations for a farm bill. priorities include protecting federal crop insurance, strengthening a producer safety net, bolstering u.s. international market and filament efforts, supporting voluntary conservation programs, and championing initiatives important to rural america. many of these priorities are reflected in a framework that was released last year. a new farm -- a new farm bill with improved safety net programs is overdue. congress can strengthen existing usda programs through strategic investments and enhancements. we would like to see this process move forward in a bipartisan manner, for a farm bill can be signed into law as soon as possible. ncga released a report where we identified six key targets for enhancing the competitiveness of corn. these include developing new foreign markets, expanding consumer access to higher blends of ethanol, fueling innovations
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a new -- in new research, insuring sensible regulations, and extending federal tax provisions. this is a roadmap to establish an environment in which farmers can be innovative, productive, and profitable. we look forward to working with you to confront the current issues impacting business, families, rural communities. thank you for your support of the american farmer. chair boozman: chairman, ranking member klobuchar and distinguish members of the senate agriculture committee, thank you for the opportunity to testify and provide a we producer perspective on the agricultural economy. i'm a farmer from altus, oklahoma where my family and i farm wheat, cotton, and pastureland. in addition to being a fourth-generation farmer, currently serve as the president of the national association of wheat growers.
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a federation of 20 state wheat grower associations, today's hearing is important as a committee works to reauthorize the farm bill and address the challenges facing the agricultural economy. as i enter my 40th year in farming, that agriculture economy is facing a severe downturn, the likes of which we haven't seen since the early 1980's. we greatly appreciate the hard work and leadership the committee members played in getting economic and disaster assistance signed into law this past december. that assistance is much-needed across all of agriculture. however, long-term improvements to the farm safety net must be included as the committee in congress work to reauthorize the farm bill this year. in september, most organizations at this table were in washington, d.c., furthers -- first ever meeting where we highlighted the financial
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pressure building across american agriculture and urged congress to pass a robust farm bill that strengthens the farm safety net. the challenges facing our culture -- agriculture today differ from when the 2018 farm bill was enacted. while the farm safety network, it must be enhanced to reflect today's realities. increased input cost, high interest rates, and commodity prices have created significant challenges for farmers and role america. in december, the usda reported farm sector income is forecasted to fall in 2024. when looking at the commodity level changes in farm income, we growers experience of 43% decrease in net cash farm income from 2020 32 2024. that marks the lowest level in the last 15 years. these conditions underscore the need for a strong, robust and meaningful farm bill that provides long-term certainty as
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we proceed into the 119th congress. crop insurance is the cornerstone of the farm safety net. i use crop insurance on my operation to cover natural disasters. last year one week before harvest, our operation so a devastating hailstorm that destroyed wheat that was otherwise in excellent condition. crop insurance is a vital component that ensures the viability of my operation and is the first line of defense against natural disasters. we must work to make crop insurance more affordable as it plays a vital role in sustaining rural. additionally, the pmc reference price for wheat has remained unchanged and the following far short of the cost of production since its introduction. since a 2018 farm bill, crop inputs have increased by about 30% on average. when a past president testified on this topic in 2023, he stated , wheat farmers across the country are currently
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experiencing high prices. but at an extreme risk. since then, wheat prices have dropped 37%. in 2025, the usda forecast cost of production to remain elevated at $386 per acre, which means we growers are projected to lose $96 per acre. i request the committee make a meaningful investment in the farm safety net and increase the reference price for wheat. wheat growers in the united states pride themselves in growing a safe, abundant and sustainable crop that we consume here at home and export globally. thank you for the opportunity to testify today and i look forward to your questions and working with you. >> thank you, chris. >> thank you for hearing us today. i'm the president of the national barda gross association. i'm a fifth-generation farmer in northwest minnesota. affirmance i parents and my wife
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mattie and we have a one-year-old daughter cameron. needless to say family has a lot at stake with the u.s. agriculture economy. i represent the perspectives of producers and all the barley growing regions which is predominately the northern plains including minnesota, north dakota, montana, idaho and washington as well as wyoming and colorado. on behalf of the barda growers i want to thank you for your attention and the actions aimed at improving the growers ability to get financing to plant their crops in 2025. these actions are very much needed and very much appreciated. as you are aware i'm sure will be reflected in meeting the statements here today, u.s. farm income has declined for the second consecutive year and projections beyond are not favorable. 22.6 percent decline in net farm income from 2022 to 2024. the trends in outlook for barley
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are concerning. farmers have had to hold barley for as long as year or 18 months before the buyers can even take delivery. in 24, barley production was down nationally 19% while production in on tanner was down 68% -- in montana was down 60%. projections moving forward and not good either as recent publication projects prices will be below the five-year average from 2019-2023. production cost has increased as barley in particular has increased 23%. production costs have leveled off some but has not come back to where it is cost-effective. marella tilde young farmer and addressing the challenges has been an ongoing problem. in times like these when it's difficult to just be cash
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positive for the year, new and young farmers cannot build equity or gain access to capital to improve their operations. we are losing crop diversity, and crop rotation options. as barley production declines, we're losing infrastructure which will make it more difficult for production to return even if market conditions improve in the future. it's vital that farm safety and risk management programs be maintained and strengthened. our top priorities include handsome and smoother crop insurance as reflected in the former act introduced in 2024 and improvements to the farm bill programs including close -- we hope new farm bill can be enacted this year and we want to take the opportunity to share perspectives on the potential for district -- disruptions or markets due to tariffs and trade disputes. were proud and appreciative that to mastic beer producers will use american grown barley almost
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exclusively. barley growers and consumers benefit, mexican beer producers produce -- purchase u.s. barley and they are exported back to this country for u.s. consumers. we benefit from a smooth and carefree flow of goods and we urge fair and beneficial trade between the u.s. and mexico. thank you for the opportunity to testify today and for your continued support for american farmers. i hope you can join us this evening, we have a reception call the barley bruce and boots reception and will have a wide selection of beers made with a bunch of u.s. barley. thank you. >> very good, thank you. >> thank you, chairman bozeman and ranking member klobuchar for the opportunity to testify today. i name is amy france and i farm alongside my husband and our
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oldest son. we raise grain sorghum, corn and wheat and black angus cattle in the best state of kansas. i serve as the chair of national sorghum producers and i'm honored to represent many family farms here today. my 12 years in rural banking industry in first-hand experience with a very real financial challenges of farming in the current environment have allowed me to develop an in-depth understanding of the importance of economic stability for farmers. the current problem is quite easy to sum up. we are facing weaker crop prices, high cost of production and a stubborn weather pattern that has been brutal. this has made me even more appreciative of the work that this committee so carefully does. and we need to finally get a stronger farm safety net in place. many row crop farmers have been operating under a bleak economic landscape and projections for the coming years have not improved. in normal years, farming is a high-stakes model with in margins.
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right now are bleeding resources and capital and we simply could not survive without assistance from congress. sorghum is an important staple crop grown in harsher environments due to its efficiency and resilience. unfortunate, drought has gripped 71% of the sorghum acres and -- and 23 into any four and these are also among the hottest on record. while sorghum is tough and water efficient, it is not whether immune. many firms have experienced diminished production. on top of all of this, since 2019, cost of production for sorghum has increased by an average of 8% year-over-year. in 2024, sorghum farmers lost roughly 170 dollars per acre, resulting in a loss of 1.5 billion dollars in net farm income. from a farmer's perspective, 2025 appears to be just as graham, if not more so. disaster and economic assistance have been a lifeline, bridging
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short-term gaps for farmers, many of whom would not have otherwise been able to continue farming and we thank you for that. however, we need to move beyond short-term ad hoc relief. farmers desperately need the improved, long-term stability only a multiyear farm bill provides with predictability and certainty for producers and lenders alike. plc reference crisis are our highest priority and they need to be raised to account for because starting in 2025 and beyond. additionally recognize the critical role our programs play. the proposed improvements in the program introduced in the 2024 at committee mark provide meaningful improvements with a higher base reference price and expanded coverage, updating and strengthening the title i program for farm families is absolutely essential and i look forward to working with this committee torts that critical goal. all title i is critical to provide assistance with market returns -- when market returns are below the cost of production
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, crop insurance is the cornerstone of tailored, in season risk management for our farmers. in his fee supports higher coverage and cost assistance for sel and we support senator hoeven spill to help close deductibles by incentivizing higher levels of coverage. with that, i do need to mention two things for consideration. first, ratings must be reviewed to ensure we are not driving planting based on insurance, second, along the same lines, and sp recommends establishing a floor price election for sorghum at no less than -- i thank you very much for this time and appreciate all the work you have put into this day in and day out and look forward to getting a farm bill in 2025. >> thank you very much. >> good morning, chairman bozeman, ranking member klobuchar, senator hoeven and distinguish embers of the senate
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agriculture committee. it's an honor to join you today to testify on behalf of the american soybean association regarding producers perspectives on the egg culture economy. i'm a soybean farmer from north dakota and i have the privilege of serving as chairman of the american soybean association this year. we represent u.s. soybean of -- farmers across the main soybean producing states. there are many unknowns ahead, commodity prices are down nearly 50% from highs experienced three years ago and farmers still face elevated prices for land, seed, fertilizer, pesticides and other inputs. we threats and challenges are market-driven but congress has significant opportunities to impact either positive or negative, farmers concerns. my for written testimony offer six policy recognitions for the committee to consider but i will briefly cover the major issues our industry faces today. soybeans are country's largest export commodity and farmers are deeply concerned about growing threats to soy markets both at
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home and abroad. just this week the administration announced tariffs, now delayed for 30 days, that it ultimately been put into place to cause an unnecessary trade order -- war with canada, mexico, and china. there are still impacts from the last trade war in 2018. retaliatory action from additional actions taken by the u.s. threaten foreign market access even further. south america soybean producers are primed to meet any international demand insulting from new trade disruptions in u.s. exports could be permanently replaced. when threats arise and are export markets, yes producers look to domestic markets to cushion the blow. however uncertainty surrounds federal policy acting domestic markets for soybean oil both for food use and biofuel production. their unfounded claims about supposed detrimental health impacts of soybean and other seed oils.
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the false narrative raise questions about u.s. soybeans and removal of the edible oils market would cause an immediate and significant decline in soybean oil prices. domestic bio food production offers opportunities for growth and policies in the clean production credit or supported and shaped to enhance the role that u.s. agriculture plays in fueling america. when the biofuel industry was poised for an exciting moment of expansion, lower than expected volume allegations done a growth, triggered a decline in price and lead to closings in the midwest. further delay guidance on the 45 c tax credit paired with a calculation system that currently affords higher credit prices do not agriculture feedstocks added additional downward pressure on soybean oil prices. i levels of nonagricultural feedstock imports and displaced domestic soybean oil and biofuels, an issue we will
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continue to face without needed policy changes. access to pesticides remains a threat to u.s. farmers asking garmin protection agency continues reviewing uses and new approvals. epa's pesticide program faces major challenges and very few products have been approved over the past several years. in addition, proposed restrictions threaten to take away volatiles that growers have used responsibly in their operation for years. pesticide prices are elevated and it could increase even more were tariffs than any resultant trade disruption. finally a new farm bill is long overdue. as outlined in my written testimony the economic situation facing farmers is dire. 2018 farm bill did not meet the needs of soybean farmers during the trade war. they say appreciates the work this committee has done laying the groundwork for new farm bill we recognize the political intricacies involved in completing a bill this year. however, for farmers, they need is great and the time is now and i strongly carson community to work in a bipartisan manner as
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quickly as possible to move a new farm bill forward, one that meets the needs of farmers, ranchers, and consumers. in conclusion, yes soybean farmers continue to face threats and certainty but congress can help shape policies and bolster soy and all agriculture. passing a comprehensive farm bill and supporting programs that encourage growth and blocking harmful policies that restrict market access at home and abroad will result in uneven footing -- economic footing for all of rural america. thank you for the opportunity to testify today and provide soybean industry perspective on the farm economy. we look forward to working with you to shape policy in the 119 congress and i look forward to any questions. thank you. >> chairman, ranking member and members of the committee. thank you for the opportunity to appear before you today to provide the peanut producers respect on the agriculture economy.
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my name is garrett moore, i'm a four and veteran from chancery, alabama where i operate and own moore family farm. i witness my family's many struggles on the farm for the last 15 -- 29 years and have heard stories that have impacted generations of my family. we have seen supply chain disruptions, labor sources and the peanut industry is already experiencing difficult variables such as low prices as a result of trade issues, reduce market china and nontariff trade barriers in the european union. the e.u. is one of our premium markets. since a 2018 farm bill we've seen a substantial increase in inflation, when comparing peanut farmers in 2021 to 2024 cost of production, the total cross -- total cost increase -- providing an effective safety net for
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rowers. reference fries -- american leave act brought significant reassurance to peanut growers by including the economic and disaster assistance provision and impact from natural disasters in the past year. many growers were facing a low probability of attaining a loan for their next crop year. these loans will assist growers in obtaining financing for the 2025 crop. the patent industry is grateful to the member's of congress at work to assure economic assistance was passed before the end of last year. unfortunately there will still be a deficit remaining for peanut farmers. with the return of -300 kuini five dollars per acre, the former still going to have a negative net return of $249 per acre after the economic assistance. our farm alone, many of our expenses have almost doubled since 2018. we are signal signs of relief in the cost production area.
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for example we need significant fertilizer to sustain the nutrient level in the soil and protect the land for future crops. the increase in fertilizer cost has called for tough management decisions. this truly conveys on we need a new farm bill. peanut growers and buying points all support the buying program as included in the farm belt with a reference price increase. the rising cost production requires a reference price increase if the program is going to remain relevant and valuable as a form safety net. additionally, the u.s. peanut federation supports a voluntary basis that includes growers with and without peanut-based acres. it excluded many young farmers.
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i'm proud to be an american peanut rower and i'm thankful for the opportunity contribute to our nations -- foods abroad. i hope to continue my family's farm to a fit generation which cannot be done without an increase core in our industry. as a young farmer, i want to be part of the future of agriculture. thank you for allowing me to testify today. >> sen. klobuchar: i know you already heard from one panel member and i want to thank chris so much for his work with the national barley association and we are so proud of our barley in minnesota and am looking forward to asking you a question. coming up, team deal who senator smith already engine, for generation farmer and he serves on the american sugar beet growers association board and serves as the vice president. i will also note that there farm
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is fifth-generation, and not to compete with mr. larue, but there farm was homesteaded in 1879. so with that, i turn it over to mr. deal. thank you. >> good afternoon, chairman and ranking member and the rest of the committee members. thank you for the opportunity to testify today on behalf of the american sugar lines. i want to express my appreciation to the chairman and ranking member klobuchar. we recognize the hard work that has gone into it -- this process but it is critical that we finish the job this year to provide farmers with the certainty we need. my wife kathy and i grow sugar beets on her family farm with our son josh and his wife beth in minnesota. among fourth generation farmer and i'm fortunate to be
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transitioning our farm to the fifth-generation. in addition to farming, i'm honored to serve as vice president of the american sugar beet growers association and chairman of the board of a farmers cooperative. sugar production is a cornerstone of our rural economy. eight members of this committee represent sugar producing states in two represent sugarcane refining states. you know how vital this industry is to our communities. the u.s. sugar industry supports over 151,000 american jobs across two dozen states and contributes more than $23 billion annually to the u.s. economy. americans benefit from a safe, high-quality and reliable supply of sugar, grown, processed and refined right here at home. our industry has built a strong, resilient supply chain anchored in 90 strategically located distribution facilities across the country. we take great pride in what we have built and great pride in
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producing a record crop this year, but pride, senators, doesn't pay the bills. this hearing is timely because many farmers across the country, including sugar producers, are struggling under tough economic conditions. what we need most is a new five-year farm bill to provide certainty for production decisions and financial management of our farms. the farm bill represents a critical safety net for farm families, male employees and processors across the country. sugar prices have fallen or than 10% over the past year and for years, tight margins have made it harder and harder to stay afloat. our stories even more complex because our costs don't stop at the farm gate. as farmer owned cooperatives we must also cover the expenses that are processed in our facilities. we are operating under an outdated farm bill that hasn't kept pace.
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consider the marketing home rate for sugar beets has only increased 4.3% in 40 years while the rate for raw sugar has increased 1.75 percent in that same amount of time. during that time, 78 cane and grain facilities have closed. without meaningful improvements, many growers will struggle to secure financing and to continue operating. we strongly support the hass agriculture committee passed bill and the proposals that would increase long rates to reflect the actual production costs, modernize the beach sugar marketing to improve efficiently and meet growing demand, direct usda to reallocate wto minimum tariff rate from the shortfall earlier, and direct our main
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sugar beet producers. these are commonsense updates it will provide stability and strength in the u.s. sugar policy for sugar beet production qualities around the country. on behalf of more than 11,000 sugar beet and sugarcane farmers along with refineries, we are just committee to act sweetly to fastest -- pass a strong five-year farm bill that strengthens you a sugar policy and supports all of u.s. agriculture. we stand ready and eager to work with you to get this done. i look forward to your questions. >> very good, thank you. jennifer? >> good evening, thank you for the opportunity to testify. jennifer james, before generation rice farmer from newport, arkansas. while i consider myself a rice farmer first, our family farm is diversified. i farm with my father and husband and recently our son has
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retired. words cannot express the absolute joy of having your child share your desire and passion for farming and his dream of continuing our family legacy into the fifth-generation. we primarily grow rice, soybeans and corn. i'm proud to serve the agate industry as member of usa rise and other various roles. today's hearing is extremely important for rice farmers. we have been facing a prolonged and perfect economic storm. we did not enjoy the run up and process experience by many other crops in 2020 and 2021, but we shared fully in the enormous increases in cost production. unfortunately the price loss coverage program, the chief safety net for rice is out of date for our producers. according to the agricultural and food policy center, this resulted in an $880,000 loss in net farm cash income per rice
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farm, from 21 to 2022 along with two thirds of rice farmers predicted to have negative margins for 2022. anklet, congress provided wright -- found a relief or rice farmers in 20 conditions have persisted for rice farmers and of spread to producers of nearly all crops, leaving congress to provide much-needed aid for between 24. thank you for delaying what would have otherwise been a full-fledged farm financial crisis for many without your action. i know this committee appreciates that there are still farmers out there who even with this relief will no longer be farming because the conditions are that bad. there are many other operations that will simply be bridged into the next crop. rice farmers must have an adequate poc reference price. one that reflects the realities of the financial pressures that we face. i know you're working to pass a new farm bill and i would encourage you to ensure we
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improve farm safety net is effective for the 2025 crop year. congress must act to stabilize this fragile situation to protect our food supply short of domestic -- sure of domestic production and ultimately secure our national security through food security. as i worked on our budgets for this year, rice is projected to lose 340 five dollars per acre in my area. soybeans are projected to lose over $250 and corn over $280. nothing in my area penciled out, this is not economically stable. last year i completed my 30th full-time crop and it was a most difficult year financially that i have endured so far. this year, i'm even more worried about what is to come. just last week we had one of the hardest business decision conversations my family has had.
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his farming really worth it? what scares me as i know that we are only one farm family -- families of thousands who are having these conversations. i pray the situation turns around and if it doesn't it congress has the courage to step in. we need assurance for not only the current generation of farmers but for the next. my son gave up baseball when he was in the ninth grade because he didn't want to miss spring planting season. farming is all he has ever wanted to do and i want to see to it that he is able to follow his dream. unless things change drastically that a relevant safety net, farm families will have no choice but to ask for more ad hoc assistance. we cannot continue to head to the field and plant a crop and know that we will lose hundreds of dollars per acre. frankly, it is scary know you see is red ink. farmers, local businesses and our entire communities are at risk. if rural towns see population
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decreasing, our schools and hospitals may not have enough people to sustain them. we have all heard the same, hope is not a strategy. today i urge you to deliver a new farm bill so we no longer have to hope, but rather we know that we can continue to farm and enjoy what we do, provide food for our fellow man. thank you for your time. >> thank you very much. and again, the testimonies being so thoughtful, so compelling, i had the opportunity to sit through, i guess it's an opportunity, to sit through many, many hours of testimony in the last several years on this committee and it's really interesting, i don't think of ever heard a more uniform testimony and across-the-board, you just demonstrate how difficult it is in rural america right now, doing what you do.
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first of all, i want to thank you because a lot has been mentioned about the aid that you're able to get at the end of last congress, that's this committee working very hard in a bipartisan way to get that done, and that's great, but we couldn't have got it done without your organization stepping in and really applying the pressure that we needed for congress to understand how difficult it was. so give yourselves a pat on the back. think it also really illustrates what agriculture can do when it stands together. jennifer, you mentioned it being so tough, and yet you had a good yield. so that complicates things even more. tell us, if we had in play as you make these tough decisions about continuing to farm, what you're going to do and plan in the future, all those kind of things, tell us what impact it
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would have if you had to place a good, solid five year farm bill that you could count on that actually did provide help? >> i thank the senator with the updated reference prices, as many of my peers here on the panel, i think it would give farmers confidence, i think we give our lenders confidence that there was actually a floor out there to plan for and work toward, it's definitely just a risk management tool and for those of us in rice, like you mentioned, we did have a good yields and even so, that was not enough to help us bridge the financial gap. so that five year contract, as we look to it, is very important to us and as i stated, i would hope that it could be in effect
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for the 2025 crop year with those updated prices. sen. boozmon: jennifer has mentioned the plc, tell me, would any of you share your thoughts on the role the crop insurance has played in recent years as the price rises? what should congress be considering when it comes to crop insurance as far as trying to make it good? mr. hartman. >> definitely come obviously when you're putting out a corn crop you have a lot of expenses when it comes to fertilizer, so we definitely need to support higher levels of crop insurance. i myself take that 75%-80%, but we need to get to higher level so we can support it because it because there's a lot more risk when it comes to the cost of putting a crop out. sen. boozman: anybody else? >> i would add to that that
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representing cotton, even though it's a southern cop, it's a very diverse area. you get on the coast and there's a big risk of hurricanes and weather damage. west texas, a huge risk of drought. where we are in the delta, we have irrigation. our risk is shallow harvest. either an updated sco program are the ability for kotten to take out bosak temper to spate in the plc program. we are always going to make the yield, our biggest risk is the shallow walls. >> crop insurance is the front line of defense. it's a most reactive, is the most efficient, and we all have a stake in our product and we know where we need to be for our region, making that more affordable would have a better
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adoption rate and it would also help support in the times of true need due to natural disasters and i would mention that senator hoeven did put out the farmer act and it really does address a lot of our concerns. sen. boozman: senator klobuchar. sen. klobuchar: thank you very much, i will eat off with our minnesotans here, with you mr. ingle said. could you talk about what several members have mention, young farmers and ranchers and all the challenges that they have. could you talk about how strengthening the crop insurance program could better serve our farmers and ranchers and especially beginning and limited resource ones. >> it is definitely a keeper upon it as a younger form, if you don't have that, a lot of lenders all be able to get you operating loans for the year. that is a big thing for all the
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guys, i want all the guys or formers my age, it's a key component to have that. >> very good, thank you. when it comes to sugar, you highlighted that some of the draft last year how the senate, a lot of draft circulating around, but there were some proposals that would make updates to the sugar program, can you talk about how these proposals will facilitate the long-term stability of domestic sugar production and help to ensure sufficient supplies for your customers? >> yes, i can do that. within our sugar policy, our loan rate is our safety net. that's all we have, we don't have arc, we don't have plc. we also don't have a revenue guarantee in our policy. those are the main things.
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we are an importer of sugar and we are importing 25% of the sugar the americans use here. so we need to make sure that we are viable at ensure that we don't have to import even more. we need to keep a viable sugar industry here in the united states. >> very good, i agree. it was great meeting with you the other day, and could you talk about -- i mentioned in my opening that the studies for the soy and with corn when it comes to any potential retaliatory tariffs. could you talk about what the impacts could be, even with hanging out there, and so much uncertainty when it comes to soy? >> thank you, senator klobuchar
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and you did mention in your opening remarks, looking back on the 2018 trademark, so we just use history as a guide and expect that something similar could happen again. probably the biggest concern with that this year even with that hanging out there, sunday night if you are watching the markets when they open before president trump analyses 30 gate -- 30 day delay with mexico and canada but for farmers, for me as a farmer in north dakota is not just what might be imposed by canada or mexico but a 25% tariff on canada excludes 87% of the potash that we use as farmers in the u.s. comes from canada. so there is a cost right there. >> actually i used those numbers on a national call the other day but i put that in there just
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because of the extraordinary numbers of what it cost for an acre of corn, and that's for an acre of soybeans. i think it's just important to remember as the community considers a farm bill and other types of assistance for farmers at the margin for error in 2025 is much different than 2018. in our pocketbooks and inner cash flow and are working capital on our farms, we probably had a little more room there in 2018 coming out of some good years but this year the margin is not there, the risk is even greater. so caution is urged by all. sen. klobuchar: you noted in your testimony that experience shows the lost market can be easily recaptured. do you want to expand on that a little bit? >> obviously the concern is when we look at south america, they
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keep increasing their acreage on corn and soybean production. every year that increases and we do have countries on tariffs when they basically are going to just keep basically buying corn from brazil or argentina, which is a problem for us once that starts. the other thing we have going is we have a good transportation system that does need to be improved. they are improving their transportation system every year and that will help them as far as economics. they are advancing every year on us and we have to stay head of that. >> the 90 day policy new obligations and disbursements of food aid funding has sown confusion and is threatening to disrupt the delivery and distribution of u.s. commodities like wheat, rice, sorghum, for those in need.
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in previous testimony or organizations noted the importance of international food assistance, and it's obvious for starving people around the world but also mean something in the u.s.. what will this disruption in food mean for u.s. shippers, meals and processors and farmers who participate in food aid programs? >> yes ma'am. we've always been focused on food aid reform and programs that give out cash or buy from our foreign competitors because direct harm to american farmers. however, the food aid programs that do buy american commodities are critically important and we want to make sure those continue to function. unfortunately, we have seen a temporary pause on programs like food for progress that is stopping more than 200,000 metric tons of wheat valued at over $65 million to our producers from being purchased
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from this country. we look forward to working with the committee and president trump's administration to keep these purchases from american farmers moving and supporting the role. >> as a kansan i'm very proud of what we believe the late senator dole thought of when he started to do his work on this and to help the less fortunate and i would just echo sorghum is certainly for the crops, the u.s. grown crops to be shared, a lot of our sorghum for that goes to africa and so we certainly look forward to being up to continue that conversation but stressed that we encourage u.s. crops, commodities and sorghum to be delivered to these countries, not the cash. sen. klobuchar: thank you.
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quick senator moran, who we are very pleased to have on our committee. sen. klobuchar: i think i see him down there, he is so are away area >> thank you for that entree because i was thinking i spent 14 years on the house agriculture committee and was on three farm bill conferences and it's now been 15 years since i was on an act committee, so with your approval, i have 14, 15 years of questions this morning for our panelists. sen. boozman: the most active aggie in the senate not being on the committee, so we are glad that you finally joined us. >> i should make it clear that the senate rules prohibit me from serving on this committee because when i came from the house senator roberts was here in senator marshall after that. it took a waiver to get here and i just happen to be in a position they sure to get the waiver and i'm really excited and pleased to see all of you.
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amy, you're testifying as i walked in the door from voting. remind me the policy differences between sorghum and other crops that negatively affect planting decisions when it comes time to plant. >> i do want to say we are happy to have you here, senator moran. because sorghum is so resilient, we are the resource conserving crop, often times when it looks as though nothing else can be grown, sorghum gets thrown in the mix. because sorghum can produce, as i said, it is resilient, it is not whether immune, but often times we get punished for that because we can't tolerate such harsh climate. so i would say that would be the number one concern and it is hard to balance that because we are very proud of the resilience and what sorghum does for rotation, and yet often times we are punished for the great things that we can do and can
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produce a crop regardless. >> thank you, mr. reed, i was always proud that kansas for a long time was the fastest growing cotton state in the country. it shares the drought resistance that is desperately needed in our state. what is it, what unique factors to other commodities do you face to make sure that kansas and other places can continue to be cotton producing? >> kotten is a very resilient crop, similar to sorghum. you can put high inputs into it and yield more even certain parts of drought areas, it it will still produce a crop. you have done very well in kansas in out producing her high input areas and throughout the areas, where very proud of kansas farmers. cotton is unique versus corn and soybeans in that we don't have the underlying domestic
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consumption of biofuels and cotton is exported, a large portion of it. i guess right now, we feel like a scott producers we're kind of playing against a stacked deck. we are subject to a lot of times america consumes 25 million bales of cotton we produce 12-14, but we feel like were getting thrown to the or market where competition doesn't, and this is true across all commodities but a lot of times our competition pays less per day we paper our two employees. we are shipping the same equipment that we are using in their able to use it as a substantial reduction cost with no emissions equipment. so we are being asked to compete on the world market by being held to standards, we are proud of that. said it we can produce the highest quality environment
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friendly crop with worker protection safety standards in the world but it's been difficult for us to compete against the world on price. >> thank you, is suggest to meet one of the things i'm hopeful to be an active participant in the drafting of the farm bill discussion and one of the things i think as a kansan i would bring to the table is the importance of dealing with drought, and by that i mean crop insurance factors, features, multiple year disasters are something that crop insurance has never been able to provide adequate indemnity and it also means in my view conservation practices that can assist in regard to the consequences of drought and research that helps us get the crops that are most capable of resisting and producing during a drought season. anybody on the panel have any thoughts about drought and the farm bill? just tell me i've said it correctly i'm happy to move on. no, you don't need to.
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>> i would say everything you said just a moment ago says sorghum. we are very proud that we are the resource conserving crop and we are thrilled that that is been recognized. it just gives us the opportunity to speak to what farmers have done for years, continue to be conservationists and the proof is the fact that we have many generation farmers here. if we didn't do the job we did well, we wouldn't have many generation farmers here today, so everything you said, proud to say sorghum fits that. resource conserving, drought tolerant, as you know, senator, living on top of the ogallala aquifer that is quickly declining, water's top priority for us and we continue to grow a good crop, weather permitting, even in those tough conditions. >> i feel it would be a terrible consideration if i didn't talk about wheat, coming from kansas.
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we compete with other states to not produce the most weight, senator hoeven and i seem to have competition on a number of things i want to talk about acres planted wheat, first of all, to highlight drought, our kansas wheat production this year was the lowest production of wheat in kansas since 1961. that has a significant consequence to our economy and i wanted to hear from you what policy specific to weight returned the number of acres increased, the number of acres that would be planted. price i assume was a significant component of planting decisions, but how can the farm bill help wheat in particular have a rebound in kansas and elsewhere? >> as you mentioned, price is definitely the main driver and in areas where there are other alternative crops in good
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condition, wheat unfortunately does oftentimes he replaced in the crop system. i do know that there is a lot of rotation that wheat is very beneficial in, especially up in northwest kansas, and looking towards that to enhance the overall operation and profitability of the farm has definitely -- is something that we are working on. >> we were on a mission with rma to get the information necessary to reach a conclusion that wheat can be a cropping rotation plant. my 15 years went fast. >> i asked ken mccauley for what question i should ask corn and he has given me a question, so at least want you to know that
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i'm thinking of corn. i ran out of time to ask the question. >> thank you, mr. chairman. president trump has proposed tariffs on our largest, three largest trading partners, china, mexico, and canada, which of all promised to enact retaliatory measures. we know from recent history that our farmers will be on the front lines of any economic consequences from these retaliatory measures from a trade war. we know this because it isn't the first time president trump started a trade war that harmed georgia farmers. we've all seen this movie before. in 2018, trump imposed tariffs on china and they retaliated. street, you are on the national kotten council, georgia is a
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bigcotton state and cotton has always been a big export. what affect does the -- of these retaliatory and -- tariffs have on cotton? >> they affected the cotton industry negatively. we were thankful that his administration did work to provide the mft payments that kind of offset some of that pain. i guess some positives where it kind of rearranged way that cotton is consumed across the world, so we did open up new markets. sen. warnock: did you gain or lose market share? >> we lost market share in china but gained in other parts of the world. sen. warnock: what was the net result? >> we did come up with the phase one trade agreement that hopefully maybe we can get back if china was continuing to
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purchase, it really hasn't been stuck to. sen. warnock: so usda study estimates that american cotton farmers lost 37% of their exports to china. you rightly point out that this was answered by subsidies, and i think i'm right in suggesting that farmers would rather have trade aid. and yet we are seeing this will be played out again as president trump proposes the same field policies at a time when american farmers are already contending with slim margins. i'm glad that canada and mexico tariffs have been delayed, and i hope they never go into effect because the farmers i'm talking to are in georgia, worried about this kind of uncertainty. there's a lot of republicans and
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democrats who disagree on a whole range of things, but i think everyone here would agree that congress is overdue on delivering a new farm bill. the chair and i and other members of this committee talk about the need to get a farm bill. many farm bill programs need to be updated, including programs to support george's peanut and cotton farmers. street and mr. moore, you're here on behalf of the nations cotton, and peanut producers respectively, why don't i begin with mr. moore. can you talk about updates, the peanut farmers are looking for in the next farm bill in the same thing with cotton? >> one of the things we're looking for is in updated reference price. we need more efficient safety
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net for us to be more profitable and have more of a safety net to secure us in bad years. also the chance to build base acres. i was not farming in the time when there was a chance to build base acres. i'm a young farmer and new into the industry and i would like to have the chance to build the base acres which would also help us tremendously. sen. warnock: would you like to see an increase in reference prices? >> the most important thing short term, obviously long-term we would like to open up markets and not have to depend on the farm bill to stay in business, but in the short term, yes, updated plc reference price would be the most important. sen. warnock: i agree with that, with input costs remaining high, now the threat of potential tariffs and retaliatory trade war, we need to ensure that the next farm bill adequately increases reference prices and allows more farmers to participate in these commodity support programs. i will continue to fight for
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that and for southern commodities like peanuts and cotton and farm bill negotiations, but if we are serious about getting a bipartisan farm bill done, we need to remember that it takes a broad bipartisan coalition to get that done, one that both supports the farmer and the family safety net. i resist this false dichotomy that we've got to either be present for farmers or show up for folks who need security, who need basic food security. and so i'm hopeful that we will move forward in getting a farm bill dine, and that -- done, and that we would recognize that unserious proposals to cut critical nutrition programs to pay for tax cuts for the super wealthy will not make passing a farm bill easier, it will make it more difficult, right at a time that our farmers are going
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into yet another planting season with so much uncertainty. and so i look forward with -- to working with members of this committee. the chairman and i have have many conversations with how we can put forward a bipartisan farm bill. thank you. >> senator klobuchar, do you have any other questions or comments? sen. klobuchar: on looking forward to talking to you afterward and i want to thank all of you for being here. this couldn't be more critical time and i am very positive about the working relationship that sinner bozeman and i have. i hope you notice we have a lot of -- senator bozeman and i have. especially with some of our new members, we are ready to work with all of you and i thank you for appearing before us today. sen. boozman: thank you, it has been eight long day and you have been here a long time. we do appreciate you so much for your participation and really
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outstanding testimony. i want to thank my staff and senator klobuchar's staff is always for their hard work in making these things happen, is not easy. with that, today's hearing is adjourned. sen. klobuchar: thank you. [captions copyright national cable satellite corp. 2025] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org]
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>> coming uponht, a panel of u.s.awmakers discuss national security policy and bipartisanship with politico at the munich security conference. that is follow by armed
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services committee chairenor roger wicker discussing his support for ukraine and the reass why he ran for another term inffice. then, we go to capitol hill where nemeers of congress talk about their early lives, prio careers, families and whatro their interests in running for office. after that, congressional researcher discuss the narrow republanajority in the house and the relationship between the new congress and the trump mistration. all this and more tonight on c-span. ♪ >> c-span's washington journal, our live forum inviting you to discuss the latest issues and government, politics and public policy. from washington and across the country. coming up tuesday morning, the president of the alliance for american manufacturing explains trump administration train and
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tariff policies and how they might impact the manufacturing sector. then, the mideast program senior fellow at the center for strategic and international studies talks about the latest in the fragile cease-fire between israel and hamas, and trump administration gaza plans. and national political reporter taylor popielarz discusses white house news of the day. join the conversation live at 7:00 eastern tuesday morning on c-span, c-span now, our free mobile video app, or online at c-span.org. c-an, democracy unfiltered. we are funded by these television companies and more, including charter communications. >> charter is proud to be recognized as one of the best internet providers and we are just getting started. building 100,000 miles of new infrastructure to reach those who need it the most. >>

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