The secretary talks about porn and ownership. Land ownership. Called a meeting to order of the agriculture committee. Welcome everyone this afternoon. Your leadership is important and essential Rural Communities strong. I share the concerns of my colleagues doctor years of record income, you show farming team is to be one of the riskiest businesses there is. This makes sense it is abundantly clear, its time to get together on a bipartisan farm bill that supports our farm bill and helps Rural Communities. Farmville is always possible. Your willingness to work with us to find creative important needs. Together we have made significant progress. In october which are leadership, senator boseman and i 2. 3 billion working with you from commodity credit appropriation that will double funding for the trade promotion programs for the next five years and grandpa american grown food a growing crisis hunger around the world. Secure 350 million in additional funding support the rights in the industry application process. It fully funded all of the programs in the tenure baseline funding. We together the farmville full. All of these actions joke we Work Together. To report our efforts to meet the needs of farmers. I should tell you this is no accomplishment because i remember the first farmville in 2014 with the leadership in the senate required us to cut 20 billion and that was extremely difficult so its nice to be in a situation can add some resources. We need to use all the tools in our toolbox and draft new ones to improve safety net for farmers. The foundation of the 18 has the ability to regional producers with timely targeted assistance. Some disasters we need additional help. Unfortunately Emergency Assistance delayed and inconsistent. Some give 75 or more are covered and in other years it can be as little as 25 still uncertain if anything will be available for the 23 disasters. An opportunity to have more certainty and reliability. American family, workers in Rural Communities, that is the foundation of the Network American families who need just a little bit of help to make ends meet usually just for a while. Bipartisan evaluation has been redirected in the 2018 farmville after the years of the program resulting in just an additional dollar 40 a day. Any benefits to about 6 a day to put food on the table but this was enough to let 1 million children will not have the support they need to be unhappy a healthy and productive members of the community. As a bipartisan achievement. In the last congress made conservation, moral development and energy to address the Climate Crisis hitting farmers bottom line every day. Its not been put to work on farms and fields across america. As i said, is where Bipartisan Solutions that help farmers for me, family said in Rural Communities. We can invest in rural healthcare which i know will care about deeply. Americans benefited from the Biden Administration investment in rural healthcare. Usda was the first agency, i want to thank you for this, first agency to get highspeed Internet Funding through the bipartisan Infrastructure Investment and jobs act. To build on the improvements made to grow connections between local farmers, local businesses and families so your Leadership Partnership essential to find Creative Solutions for a bipartisan path of bipartisan farmville done. We appreciate you being there today. I want to turn to my partner and Ranking Member senator boseman. Thank you for calling todays important hearing. February 15 during an agriculture reporting usda keep accountants, usda prices for most crop this year and he remained elevated. A week earlier ta forecast 27. 1 and 43. 1 in inflation over the last year. When you consider since 202280 billing dollars this will be the largest farm income of all kind. We welcome you back to the community and as we continue to work to reauthorize the bill youre interested in your perspective and the challenges in the economy. In hundreds of farmers and their very concerned. Most importantly of all, the declining Commodity Prices and comes that would make the next five years the most challenging and their lives. All sectors of agriculture of all areas of the country lower incomes some pointing to a 20 here average in the former colonies health and we should talk about a 20 year average because current interest expenses are nearly double. The 20 year average, farm income above the 20 year average not accompanied reinforcing these margins under which farmers operate. For some 20 year average income is for some but not for other workers. When talking to producers from across the country sharing concerns thinker land and other assets as collateral to hundreds of thousands of dollars of crop in the ground. It was less than 3 . In the family operations put so much emphasis on concerned about this as well. Traveling to arkansas care about Rural Communities and ranch families off scales must be economically viable and how it works. In the administration worries in farm country and there are more uncertainty farmers. I do believe in the next farmville and have the opportunity to make things right in Rural Communities but it takes a commitment for support together. No in the history of this committee is said passing the farmville is but something the committee with the help of previous administrations comes to accomplish time and time again i do not believe the farmville should be different. A partner to accomplish these goals. Thank you. I am pleased to officially welcome secretary tom phil suck. Hes no stranger to the Senate Agriculture committee. The Iowa State Senate iowa. Secretary bill suck the porn programs we are assessing today for rural america. Provide for the record. Appreciate the opportunity to be here today and appreciate the opportunity afforded to me. Recently i came across a relatively wellknown house divided itself cannot stand. Utilize it to address the state of agriculture and rural america. In the history of the United States on the one hand. The other hand he just indicated we are returning to historical norms in terms of the farm income. Lower Commodity Prices, a result of crop and a strong u. S. Economy and u. S. Dollar. A weaker chinese economy all of which impacted our ability. Its interesting the farm income is not equitably divided among all farmers and 70 of farmers represent 150,000 firms, about a third owned by investors receiving 85 of the income over the last five years which meant 92 or 1. 7 million families had to share 15 of the income. At the same time from income families was significantly higher than the Family Income across the United States. 88 of families productive farm and a majority of the income utilized by most families is generated. A firm story here in the 1970s established farmers to produce and farmers responded. At the same time we saw a consolidation of farmland and farm loss. In progress prospectively lost by 44000970 farms 1981. This was for longterm impact on Rural Communities and we have seen over the course of time reduced job growth, high unemployment. However, recently weve seen an upturn in the rural economy. Now have returned to pandemic levels, poverty rate is down for the first time in quite some time persistent poverty is down. The five counties categorized as silly poor that. Those are counties in past had a poverty rate of over 20 for over decades. See that the client in the poverty category. We okay farmland . Will be okay with the notion is expressed in the past . Or is the alternative . An alternative for relevant the farmer working two jobs creating opportunities the firm itself creates multiple sources of revenue so the farmer doesnt have to work fulltime job the farm. Provide opportunities and what they love to do. The questions from the committee. Thank you very much and for the committee will do a round of minutes in the little time provoked thank you for working with senator boseman and i hope programs. The number two and whats important to us the metaphor for many years and you talk about money to build markets. On the trade side, we are focusing on the trade market because we already bent and invest Marketing Resources into significant amount so starting with japan moving down the list of Market Opportunities trying to increase present and promotion and people in those alternative markets and allows diversified away over her lungs in china in particular so that is beginning and will continue for several years and allocate resources to enhance and encourage opportunity. We created a special opportunity for experts enabling education and how producers may be able to take better advantage for these opportunities to work with usaid 50 that corrects for the resources are needed and when most needed and will work with them to get the resources and commodities to countries as quickly as possible we might thank you. Also potential for the funding revoked by your congress or the targeted limit for certain crops, are you willing to work with us possibility of offering longer Term Contracts targeted regions . Absolutely, the key is encourage diversification so we are not overland, he saw what happened with the trade workers years ago these cops dont have everything, working on Crop Insurance and make sure thats continuously effective but they have special challenges and i would ask you work to ensure any application process there is streamlined and workable. Happy to do that directly no selling and servicing a firm Revenue Program and other policies for small operations can vary significantly, its been a real challenge. Three assurance agreement includes lex ability for the board to adjust reimbursements for delivery, it varies significantly. Using this flexibility seems like it can allow opening up and avoiding other appropriations and farmville issues, can you have rna look into this and put this on the tic board . We would be happy to work with you on that issue especially since our project offered in the last couple of years, 12 policies 50 modifications. Obviously in some cases they may have increased. Thank you. Last week usda announced the 2023 Conservation Fund out the door, congratulations. Eleven of the top 15 practices across all among the practices being support. Can you talk about these practices, how farmers are using the money and what it meant for traditional funded programs that are popular . Getting conservation on the ground for all purposes and areas in the data that 49 of the top 50 practices saw an increase in funding traditional farmville so im wondering if you could speak about the. There was a Record Number in the contract entered as a result of 45000 and believe, 45 and 48000. Having said that, there were significantly greater numbers of people applying for the resources which is why we are excited to meet this need. Equip had 250 million available there were 8000 applications for total of 405 billion. The program helped craft previous farmville received 250 million of ira money and the request is to billing and eight times the amount so it is incredible popular opportunity for us to utilize all practices we know from science will make a difference in terms of increased productivity and better Water Quality and better use of resources and inputs which is really the purpose of this and we are excited about the opportunity because of the resources and we are streamlining the process to make it easier for people to apply for multiple programs at once so all that is taking place. On a different topic, how does spending on the Program Interact the spending on nutrition programs . Usda evaluated after 50 years of operation, to that process or the outcome affect spending on commodity programs or Crop Insurance . You said weekly. [laughter] thank you for being here, the reality is these firm economies down 80 billing 2022 ive had the opportunity as we all have in the last year end a half and the need for better Risk Management including reference prices making sure Crop Insurance is available. Right now its up for 30. Last week there were about 4 so the situation now is more difficult so you commented on the challenge with the priorities in the farmville and is a solution youve offered to address the firm safety net. Can you tell us about guidance youve received from the office of general castle for others that describes how the ccc could be used to provide more resources and increase revenue . Actually what i said was not what you indicated. I said id be happy to work with congress to find a creative way to utilize resources in the ccc to address concerns you will have relative to reference prices. As i did when you requested assistance which are more than happy to do my happiest down, our team is happy to sit down and explore or create ways we could use the ccc on the part of folks to think with the farmville is the only think we should be focused on, its a budget, a farmville, the ira and ccc and all those work collaboratively together to address the issues that divide in terms of the farmville today. Even though your testimony fails to make sure this program, it is important topic for the farmville reauthorization. Reevaluation and increase cost by 20 billion in 2022, does usda determine the cost of 2021 across all nutrition programs . The Food Assistance program and others whose costs are based on the cop . Im not sure weve made that calculation and i would be more than happy to ask doctor look at it. Having said that, i think we did was justified and appropriate because the whole thing is to provide to families based on reality of what they live in. But we have not done we did do a couple of years ago was asked question, how much does it cost the Grocery Store and for people buying . But assuming but what impact are they buying . From their we calculated an increase for families an opportunity to avoid serious consequences especially lift off. More than happy to look at this and happy to take into consideration and want us to consider at the end of the day there are many ways in which we can look at this program. We are seeing your people use it today so expectation is the cost will come down a little bit. The gao made eight recommendations for the re evaluations. Usda permits only four of those regulations and it begins before and the recommendations made we have made a concerted effort for in a timely way. You will find cooperative much more than previous administrations. What do you think youll get it . I dont have a specific timeline today but ill be happy to get it. Im sure its it will be before we have to reevaluate. So you could reevaluate is that what youre saying . No, we will take actions requested prior to reevaluation of the food plant because it focused on making sure who work collaboratively on recommendations as we do with oig. In may of last year the plan for the 2026 reevaluation, my understanding is usda as Additional Data on food prices and guidelines for americans, to have insight on how the information will impact the taxpayers . Will begin the process for the reevaluation. Obviously we dont know because we dont have the information but i think it is appropriate to ask the information, we have to deal with whats happening in the marketplace in terms of actual cost and a better understanding of what family skus and need. I can go into great detail in terms of assumptions about families struggling financially but they were not wind up to the reality. The amount of time preparing food from scratch, other items purchased not aligned with everyday American Life is important to have information to make an informed decision. Im concerned that a lot of us are concerned about californias prop 12 and state laws on animal housing at a time when producers and prices will break even. Preventing chaos in the marketplace and other similar initiatives, can you describe what you perceive congress does not choose to invest prop 12 . You got 50 states essentially could make decisions based on their own individual value system and their own agricultural economy. With literally travis of the beginning and we get states basically the ability to make decisions on the reality of the scale and this is why we have a constitution. I understand why californians want to regulate what happens in their state in terms of their own producers little think the Supreme Court decided that producers had choice to participate in the california market are not understood the market with 12 in one state, there is not a choice between doing business in california and not in california. You essentially will drive, it will be driven by the which will make it difficult so somebody asked to provide some degree of consistency and 30. Otherwise youre inviting 50 different states to do 50 different iterations of this and almost certainly the chaos, they need certainty. Q, manager. Thank you, senator boseman. Thank you very much. I dont have a complaint, we have the best usda people in vermont, we are so grateful so i will accuse you of hiring good people. I hope you dont take that the wrong way. She came up after a disaster and i want to say, its been very responsive and heartening to vermont but theres such a response from the department to thank you for the. A couple of questions, 12 of the food dollar. Less than 15 cents but if you take the cost up, its about seven. Thats unbelievable. In my appreciate the emphasis for comes and there is a way to do that and get the input costs down the i