[Senate Hearing 117-608]
[From the U.S. Government Publishing Office]
S. Hrg. 117-608
2023 FARM BILL: PERSPECTIVES
FROM THE NATURAL STATE
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HEARING
BEOFRE THE
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
__________
June 17, 2022
__________
Printed for the use of the
Committee on Agriculture, Nutrition, and Forestry
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available on http://www.govinfo.gov/
__________
U.S. GOVERNMENT PUBLISHING OFFICE
51-389 PDF WASHINGTON : 2024
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COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
DEBBIE STABENOW, Michigan, Chairwoman
PATRICK J. LEAHY, Vermont JOHN BOOZMAN, Arkansas
SHERROD BROWN, Ohio MITCH McCONNELL, Kentucky
AMY KLOBUCHAR, Minnesota JOHN HOEVEN, North Dakota
MICHAEL F. BENNET, Colorado JONI ERNST, Iowa
KIRSTEN E. GILLIBRAND, New York CINDY HYDE-SMITH, Mississippi
TINA SMITH, Minnesota ROGER MARSHALL, Kansas
RICHARD J. DURBIN, Illinois TOMMY TUBERVILLE, Alabama
CORY BOOKER, New Jersey CHARLES GRASSLEY, Iowa
BEN RAY LUJAN, New Mexico JOHN THUNE, South Dakota
RAPHAEL WARNOCK, Georgia DEB FISCHER, Nebraska
MIKE BRAUN, Indiana
Joseph A. Shultz, Majority Staff Director
Jessica L. Williams, Chief Clerk
Fitzhugh Elder IV, Minority Staff Director
C O N T E N T S
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Friday, June 17, 2022
Page
Hearing:
2023 Farm Bill: Perspectives from the Natural State.............. 1
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STATEMENTS PRESENTED BY SENATORS
Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan... 3
Boozman, Hon. John, U.S. Senator from the State of Arkansas...... 4
WITNESSES
Welcome Panel
Latour, Mickey, Ph.D., Dean, College of Agriculture, Arkansas
State University, Jonesboro, AR................................ 1
Hillman, Rich, President, Arkansas Farm Bureau, Little Rock, AR.. 2
Panel I
Reed, Nathan, Chairman, American Cotton Producers, Marianna, AR.. 8
Doyle, Brad, President, American Soybean Association, Weiner, AR. 9
Doramus, Anne Marie, Commissioner, Arkansas Game and Fish
Commission, Little Rock, AR.................................... 10
McAlpine, John, President, Kingwood Forestry Services, Inc.,
Monticello, AR................................................. 11
Morgan, Mark, Farmer, Peach Pickin' Paradise and Morgan Farms,
Clarksville, AR................................................ 13
James, Jennifer, Chair, USA Rice Sustainability Committee,
Newport, AR.................................................... 14
Panel II
Cole, Greg, Chief Executive Officer, AgHeritage Farm Credit
Services, Little Rock, AR...................................... 22
Bowles, L. Elizabeth, Chief Executive Officer, Aristotle Unified
Communications, LLC, Little Rock, AR........................... 24
Hasten, Buddy, President and Chief Executive Officer, Arkansas
Electric Cooperative Corporation, Little Rock, AR.............. 25
Sanders, Rhonda, Chief Executive Officer, Arkansas Foodbank,
Little Rock, AR................................................ 26
Sternberg, Dennis, Chief Executive Officer, Arkansas Rural Water
Association, Lonoke, AR........................................ 27
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APPENDIX
Prepared Statements:
Hillman, Rich................................................ 38
Reed, Nathan................................................. 40
Doyle, Brad.................................................. 46
Doramus, Anne Marie.......................................... 58
McAlpine, John............................................... 62
Morgan, Mark................................................. 68
James, Jennifer.............................................. 70
Cole, Greg................................................... 82
Bowles, L. Elizabeth......................................... 87
Hasten, Buddy................................................ 98
Sanders, Rhonda.............................................. 103
Sternberg, Dennis............................................ 108
Document(s) Submitted for the Record:
Boozman, Hon. John:
Arkansas Advocates for Children and Families, prepared
statement for the Record................................... 114
Arkansas Farmers Union, prepared statement for the Record.... 118
Cypress Tree Environmental Consulting, LLC, prepared
statement for the Record................................... 120
George Dunkin, prepared statement for the Record............. 130
Arkansas Hunger Relief Alliance, prepared statement for the
Record..................................................... 132
Mazon, A Jewish Response to Hunger, prepared statement for
the Record................................................. 134
National Aquaculture Association, prepared statement for the
Record..................................................... 137
Whole Farm Revenue Protection Program, prepared statement for
the Record................................................. 138
Arkansas Wildlife Federation, prepared statement for the
Record..................................................... 139
National Young Farmers Coalition, prepared statement for the
Record..................................................... 147
2023 FARM BILL: PERSPECTIVES FROM THE NATURAL STATE
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FRIDAY, JUNE 17, 2022
U.S. Senate,
Committee on Agriculture, Nutrition, and Forestry,
Washington, DC.
The Committee met, pursuant to notice, at 10:10 a.m., in
Riceland Hall, Fowler Center, Arkansas State University,
Jonesboro, Arkansas, Hon. Debbie Stabenow, Chairwoman of the
Committee, presiding.
Present: Senators Stabenow and Boozman.
Chairwoman Stabenow. Good morning. I call this hearing of
the U.S. Senate Committee on Agriculture, Nutrition, and
Forestry to order, and I would like to recognize my Ranking
Member and partner on the Agriculture Committee, Senator
Boozman from the great State of Arkansas, to introduce our
Welcome Panel.
Senator Boozman. Thank you, Madam Chair. Before we begin
the hearing, I would like to invite some fellow Arkansans to
provide welcoming remarks. To start, I welcome the Dean of the
Arkansas State University College of Agriculture, Dr. Mickey
Latour, and again, thanks so much to Arkansas State for doing a
tremendous job in hosting us and going above and beyond the
call of duty.
Dr. Latour.
STATEMENT OF MICKEY LATOUR, Ph.D., DEAN, COLLEGE OF
AGRICULTURE, ARKANSAS STATE UNIVERSITY, JONESBORO, ARKANSAS
Dr. Latour. Thank you, Senator Boozman. Good morning. I am
Mickey Latour. I am the Dean of the College of Agriculture, and
I am honored to be asked to make a few remarks this morning for
this well-timed and special event. Speaking of well-timed,
during this same week in 1836, Arkansas became the 25th State,
and so it is fitting that we would actually have this
particular week to talk about this.
History tells us that many States and territories began
with a predominance of agriculture, and that is true to a large
degree out of necessity. Arkansas has remained a strong
advocate of agriculture, and even after 186 years, agriculture
remains the No. 1 industry in Arkansas, adding about $20
billion to the State economy. The Natural State's diverse
landscape, climate lends itself to a variety and diversity of
opportunities in agriculture.
Our university started as an agriculture school in 1909 and
today is a very comprehensive university and still anchored in
agriculture roots. As we prepare for the future, we accelerate
opportunities for our students through meaningful
collaborations and partnerships with the Judd Hill Foundation,
where we are going to create a new state-of-the-art facility
that will emerge in early 2023 for our students, faculty,
community members to explore research and entrepreneurial
opportunities. We have close linkages with the University of
Arkansas Division of Agriculture, the Arkansas Biosciences
Institute, and the USDA ARS water research facility. In
collaboration with these partners, we stand strong and believe
that we can help solve many of the challenges that are coming.
In closing, I would like to recognize certainly our
Senators that are here today, our U.S. ASU Trustees, Paul
Rowton, Jerry Morgan, Steve Eddington, State Senator Dan
Sullivan, and Secretary of Agriculture Wes Ward. Thank you so
much.
Senator Boozman. Well, thank you so much, Dr. Latour. Under
your leadership, Arkansas State University College of
Agriculture has done many great things not only for the State
of Arkansas, but the whole of American agriculture.
Next, I welcome Mr. Rich Hillman, who serves as the
President of the Arkansas Farm Bureau.
STATEMENT OF RICH HILLMAN, PRESIDENT, ARKANSAS FARM BUREAU,
LITTLE ROCK, ARKANSAS
Mr. Hillman. Madam Chairwoman Stabenow, Ranking Member
Boozman, we thank you so much for the opportunity to visit with
you and, more importantly, to welcome you to the great State of
Arkansas. I am Rich Hillman. I am proudly a sixth-generation
farmer from Carlisle. My family has been raising rice on the
Grand Prairie for decades, and I am very fortunate to be
involved in many organizations that serve farmers and ranchers,
including serving as Arkansas Farm Bureau President.
Agriculture is the largest industry in our State, and that
says something when you consider some of the titans that we
have in the retail and business world that also call Arkansas
home. Our agriculture is very diverse, including row crops,
livestock and poultry, specialty crops, aquaculture, and a very
significant timber industry.
You will be hearing from the best of the best today, really
what is Arkansas's greatest asset, and that is the men and
women who farm and ranch here in Arkansas. I cannot underscore
enough their talent, intelligence, and quite honestly, the most
important tool needed today, that is their resilience.
Before I yield to others, I would like to convey to you the
importance of our next Farm Bill. As we are hopefully exiting a
worldwide pandemic, we have to be very cognizant about what
happened to our food chain, what we all encountered and worried
about when we saw the empty shelves in the grocery stores. We
learned that our food chain that has served us well for decades
was not as strong as it needed to be. We learned a few weak
links that were pulled apart, thankfully, for just a short
time. Because of those issues and good old American ingenuity,
we have even a more efficient, sustainable food chain now than
ever before.
The American farmer and rancher were, are, and will be a
part of that solution. We stayed our course, constantly
challenged but always steadfast in doing our job. Our farmers
and ranchers are the best in the world, period. We can compete
with anyone on the face of the Earth, but what we cannot
compete against is other governments that for various reasons
would like to dictate the world food supply.
Because of that, a variety of other issues, it makes our
next Farm Bill one of the most important pieces of legislation
in our country. Thank you for being the leaders who are
undertaking this meaningful task, a daunting task sometimes.
The men and women here today will tell our story better
than anyone I know. We all do our jobs across this State to
feed hungry people, with great pride and diligence. At the end
of the day, all of us that do that realize our jobs are most
important known to mankind.
Thank you again for traveling to the Natural State to
listen to us. Thank you more for the leadership to our farmers
and ranchers and to our great country. Thank you.
STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR FROM THE STATE
OF MICHIGAN, CHAIRWOMAN, U.S. COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
Chairwoman Stabenow. Well, thank you so much, President
Hillman. You are right; American farmers and ranchers are the
best in the world. There is no question about it, and that is
why I am proud to join with Senator Boozman in leading our
Committee efforts.
Dr. Latour, thank you. Dean of the great College of
Agriculture, thank you for welcoming us as well.
Thank you to all of our witnesses for joining us and taking
the time today and good morning again. I really am delighted to
join Senator Boozman here in Arkansas as we begin the process
to write the next Farm Bill.
Thank you to our host, Arkansas State University. Go, Red
Wolves.
I cannot leave out Senator Boozman's beloved Razorbacks. We
got to do both here, just like in Michigan. I went to Michigan
State. We also have a little place called the University of
Michigan. I represent the whole State. I have to make sure I
always mention both.
I want to thank you for this warm, actually very warm,
welcome today. It is a pleasure to have Senator Boozman as my
partner on the Senate Agriculture, Nutrition, and Forestry
Committee, and it really is a privilege to lead the Committee
with him and to work hard to deliver for our farmers and
families, rural communities here in Arkansas, as well as
Michigan, as well as the entire country.
We are working hard to put bipartisanship and civility at
the center of everything we do. That may not mean we agree on
everything, but we do agree on more than we do not. Growing
that common ground really is the key to getting a Farm Bill
that provides farmers and ranchers the certainty they need,
that keeps food on the table and invests in our small towns.
That is how the most recent Farm Bill passed with the strongest
bipartisan support ever, and that is what Senator Boozman and I
are building here today.
It was a real pleasure to have him at our first hearing at
Michigan State University, my alma mater, in April, and it was
great to showcase Michigan agriculture and our broad diversity
of crops, as well as the strength of our rural communities,
just like the town I grew up in, in northern Michigan.
Most importantly, to listen to what is working and not
working in the Farm Bill, that is what this is about. I am
looking forward to learning more about what makes Arkansas
special here today, and I know there is a lot. I want to hear
more about what rice and cotton farmers are seeing on the
ground and hear about your work to support small towns and
rural communities, and I am hoping for some Arkansas catfish
for lunch also.
I had the honor to meet many of our witnesses over
breakfast this morning. You might not think so, but there is a
lot of similarities between Michigan and Arkansas. We have
about the same number of farms. Our farm economies are roughly
the same size. Our States are both leaders in innovative mass
timber construction, which Senator Boozman and I both are
working on together. Our farmers are passionate about
conserving habitat for ducks and other wildlife because both of
our States have booming outdoor recreational economies.
As we think about the 2023 Farm Bill, we know it means a
strong safety net for farmers and families, incentives for
farmers to do conservation in more ways that work for their
farms, healthy local and regional food systems that provide
markets for what farmers grow, support for research, and trade
opportunities and investments in our quality of life in the
rural communities so many of us call home.
I look forward to hearing ideas from our witnesses today on
how we can be more effective. We want to hear what is working,
what is not working, in particular, how we can help you tackle
the challenges you face.
Again, thank you to my friend and Ranking Member for his
gracious welcome to Arkansas and for his partnership as we work
together to get the best 2023 Farm Bill possible for our
country.
I now turn to Senator Boozman.
STATEMENT OF HON. JOHN BOOZMAN, U.S. SENATOR FROM THE STATE OF
ARKANSAS, U.S. COMMITTEE ON AGRICULTURE, NUTRITION, AND
FORESTRY
Senator Boozman. Thank you, Madam Chair. I am so pleased to
be in Jonesboro, and thanks again for doing the tremendous job
of hosting us, also, with my friend, Senator Stabenow, the
Chairwoman of the Senate Agriculture Committee. It is so good
to have her in Arkansas as we discuss the next Farm Bill. This
is the second hearing in a series our Committee will hold to
help inform our decisions and identify the issues we will
consider as we write the new Farm Bill. The answers need to
come from the ground-up.
Earlier this year, the Chairwoman kicked off the Senate's
2023 Farm Bill hearings in East Lansing, Michigan, on the
campus of Michigan State University. I greatly appreciate all
the effort the Chairwoman, her staff, and the university put
into holding a very good hearing that helped me learn more
about the issues farmers and rural communities in Michigan
face. It is interesting; they face the same problems that you
face, and so I think that is the great--one of the great
strengths of having these hearings.
Today's hearing will share the story of agriculture in
Arkansas and the importance of the Farm Bill to my state. Of
course we will talk about commodities, safety nets, and
managing risk, but the Farm Bill is about more. It is about
rural communities and families. It is about wildlife habitat
and conserving natural resources. It is about supporting
research at our universities. It is about helping those in
need. Those are only a few things of the many things the Farm
Bill will impact. The list goes on and on and on.
Chairwoman Stabenow is now a veteran of the Farm Bill
process, and I look forward to working with her as we craft
bipartisan legislation that meets the needs of farmers,
ranchers, forest landowners, rural communities, and the other
beneficiaries and participants in USDA's programs in Arkansas,
Michigan, and throughout the country.
Everyone in this room recognizes that we are in an
unprecedented time: the pandemic, the war in Europe, historic
and widespread inflation, and now serious concerns about a
recession. It just feels different.
As we consider the next Farm Bill, we must ask if the
policies and programs currently in place are the policies and
programs that we need for the world that we find ourselves in.
Are we empowering, encouraging, and incentivizing our farmers
to be more productive and more efficient. To be more resilient?
Are we making the right investments in our rural infrastructure
to keep the economic benefit of those productivity and
efficiency gains in our rural communities? Are investments in
agriculture research focused on answering the right questions?
Is there a role for the Farm Bill to help address weak points
in our supply chains and our labor markets?
I believe that we have an opportunity in this Farm Bill to
put in place the tools necessary to strengthen American
agriculture for any situation we face in the future. If we do
that, our farmers will continue to do what they have always
done, provide the most abundant, lowest-cost, and safest food
supply in the world. I know that Arkansas farmers are ready to
meet the challenge.
This morning, we are fortunate to have 11 Arkansans before
us, who are leaders in agriculture, forestry, rural
development, conservation, and nutrition. These sectors
underpin the economies of our rural communities and are a major
component of Arkansas's economy.
We have 42,000 family farmers and ranchers operating on 14
million acres, with gross receipts from the sales of crops and
livestock equal to $9.7 billion. The economic output of food
and agriculture in the State is $92 billion, which supports
nearly 500,000 jobs and $23 billion in wages.
Arkansas is our country's top producer of rice, something I
am certain Chairwoman Stabenow has repeatedly heard from me and
from you, many of you. We are also a major producer of cotton,
poultry, and timber. Soybeans are our most widely planted crop,
and we are seeing growth in peanut acreage due in no small part
to a state-of-the-art peanut shelling plant here in Jonesboro.
Even with all this success, 53 of Arkansas's 75 counties
lost population in the last census, something that is far too
common in rural counties throughout the United States. We all
lose when rural America loses. To stem this loss, we must
ensure our farm families and rural residents have access to
affordable electricity, high-speed internet, and safe drinking
water. Those forms of infrastructure are essential services,
and with proper investment, rural communities can measurably
increase their quality of life.
I think any of our witnesses would tell you that being
involved in agriculture is a daily blend of challenges and
opportunities. I think they would also tell you that they
wouldn't want to do anything else, and for that, we are all
indebted.
Again, I would like to thank Chairwoman Stabenow for
joining me in Jonesboro this morning. I look forward to hearing
from our witnesses and thank each and every one of them for
taking time from their busy lives to share their story with us
today.
Now, before I yield back and we actually get to the
business, we have a tradition at the Ag Committee where we
present the visiting Senator with a commemorative gift. When I
was at the Michigan State campus, Senator Stabenow gifted me
with a beautiful Spartan green tie.
Chairwoman Stabenow. Which he wore.
Senator Boozman. Which I wore. Once.
Chairwoman Stabenow. I will not ask you where it is now.
Senator Boozman. Today, I am happy to present Senator
Stabenow with a gift, a very special gift and unique to the
State of Arkansas, and here it is.
Chairwoman Stabenow. Well, thank you.
Senator Boozman. Open it up. Open it up for us.
Chairwoman Stabenow. I have got to open it up.
Senator Boozman. This is a personalized duck call from
Rich-N-Tone, handcrafted in Stuttgart.
Chairwoman Stabenow. I love it. I love it. That is
beautiful.
Senator Boozman. It really is.
Chairwoman Stabenow. We do have duck hunting in Michigan.
Senator Boozman. Very, very nice. Earlier, Wes Ward gave
her an Arkansas Traveler, and I told her when I come to her
office I want to see it in a prominent place, or at least have
it where she could take it down--take down another picture and
stick it up.
Chairwoman Stabenow. That is right.
Senator Boozman. We want to see this in a prominent place
also. Maybe we will get you back out here for a duck hunt and
actually get you to use it.
Chairwoman Stabenow. Yes, exactly.
Senator Boozman. With that, I yield back, Madam Chair.
Chairwoman Stabenow. Well, thank you so much, Senator
Boozman. This is really terrific. All right.
Now we want to officially welcome our witnesses, and I am
actually going to turn it back over to Senator Boozman to make
the introductions before we hear from them.
Senator Boozman. Our first witness today is Mr. Nathan
Reed. He and his wife, Kristin, raise cotton, rice, corn, and
soybeans in Marianna. Nathan is a proud graduate of the
University of Arkansas Dale Bumpers School of Agriculture, Food
and Life Sciences, with a degree in Agricultural Business, and
the University of Arkansas School of Law. Reed is also involved
in the National Cotton Council as a Producer Director and
current Chairman of the American Cotton Producers, as well as a
member of the Agricultural Council of Arkansas Board of
Directors and the Lee County Farm Bureau. Just into all kinds
of stuff. Nathan and his wife, Kristin, are proud parents to
four children.
I have known Nathan for many, many years and thank you so
much for taking part in the hearing today.
Mr. Brad Doyle is President of the American Soybean
Association. He is a farmer from Poinsett County, Arkansas,
currently serves as President, as I just said, of the American
Soybean Association and President of the Poinsett County Farm
Bureau. Brad is passionate about trade, scientific crop
research, and plant breeding. Along with family members, he
operates Eagle Seed. Eagle Seed specializes in developing
soybeans, rice, wheat, cereal rye, food plots, and cover crops.
The Doyle family has been recognized as American Soybean
Association ``Conservation Champions,'' and in 2020 they
received a Conservation Demonstration Grant from the Walton
Family Foundation to develop seed blends to alleviate runoff to
the Mississippi River Basin. The Doyles' experience in agronomy
helps farmers find research-based seed combination for specific
regions of the United States.
Thank you so much, Brad, for being with us and
participating.
Mrs. Anne Marie Doramus is a Commissioner at the Arkansas
Game and Fish Commission. She is from Little Rock and was
appointed to the Arkansas Game and Fish Commission by Asa
Hutchinson in 2019. She is the first woman appointed to a full
term on the Commission in the State's history.
In addition to being a successful businesswoman, she is
also a lifelong friend and advocate of the outdoors. She is
also a graduate of the University of Arkansas and is Vice
President of Special Products and Sales for Arkansas Bolt
Company, a fastener distributor and OEM supplier based in
Little Rock. Anne Marie serves on the Board of Directors for
the Arkansas State Fair and Livestock Show and served on the
Arkansas Game and Fish Foundation. She is a founding member of
the Arkansas Outdoor Society, a group for young adults who are
passionate about conservation and outdoors in Arkansas, and
directly supports the mission of the Arkansas Game and Fish
Foundation and Commission.
Thank you very much also for being here today.
Mr. John McAlpine, who is a second-generation forester and
grew up working in Arkansas forests, John joined the Kingwood
staff right after graduating from the University of Arkansas at
Monticello with a degree in Forestry and is now the President
of Kingwood Forestry. John is a registered forester in Arkansas
and Mississippi and a State-certified general appraiser in
Arkansas, Louisiana, Texas, and Missouri. John is an active
member of the Arkansas Forestry Association, Association of
Consulting Foresters, the Society of American Foresters, and
the Arkansas Association of Conservation Districts, and serves
as the Vice Chairman of the Arkansas Forestry Commission.
Thank you very much, John, for being with us today.
Mr. Mark Morgan, owner of the first Discovery Farm in
Arkansas, Peach Pickin' Paradise. In addition to peaches and
nectarines, Mark also raises cattle and turkeys in Johnson
County, Arkansas. The Morgans were previously recognized as
Arkansas Farm Family of the Year, and Mark was previously named
Arkansas Farmer of the Year at the Sunbelt Agriculture Expo.
Mark received a Bachelor's of Science degree in Agricultural
Business and a Master's of Science degree in Animal Science
from the University of Arkansas.
Mark and his wife have three children, and I hear that they
enjoy watching the Razorbacks and Arkansas State.
I look forward to your testimony today, Mark, very, very
much.
Mrs. Jennifer James, it is our pleasure to welcome her as
we wrap up. A fourth-generation rice farmer from Newport,
Arkansas, she, along with her father, husband, and son, grow
rice, corn, and soybeans on their Century Farm. Jennifer served
as Chairman of the USA Rice Sustainability Committee since its
inception in 2009. Additionally, she currently serves as Vice
Chairman of the Arkansas Rice Farmers Board of Directors.
In 2019, Jennifer was the first woman ever elected to the
Board of Directors of Riceland Foods, the largest miller and
marketer of rice in the United States. She has also been
recognized by Field to Market as the Farmer of the Year as well
as Rice Farming Magazine's Rice Farmer of the Year. Jennifer
graduated from the University of Arkansas with a Bachelor's of
Science in Agricultural Business and was recognized as the John
W. White Outstanding Student in the College of Agriculture.
Thank you, Jennifer, again for being here, and we
appreciate all of you all taking the time to be with us to talk
about this very important subject.
I yield back.
Chairwoman Stabenow. Thank you and welcome again. We will
ask each of you to give your oral testimony. Any followup you
would like to give us in writing, we would certainly welcome.
Mr. Reed.
STATEMENT OF NATHAN REED, CHAIRMAN, AMERICAN COTTON PRODUCERS,
MARIANNA, ARKANSAS
Mr. Reed. I am Nathan Reed, a cotton, corn, soybean, and
rice producer in Marianna, Arkansas. I testify today on behalf
of the National Cotton Council.
While cotton prices are stronger than in recent years,
higher input prices and severe supply chain issues have
resulted in significant increases in production costs. On my
farm since last year, diesel and fertilizer have more than
doubled with additional increases in crop protectants and seed
cost. Supply chain and logistical challenges have wreaked havoc
on our ability to get necessary inputs and equipment parts
while creating major disruptions in delivering cotton to our
customers.
An effective safety net for producers must consist of two
key components: first, a commodity policy that provides either
price or revenue protection for prolonged periods of low prices
and depressed market conditions; second, a strong and fully
accessible suite of crop insurance products that producers can
purchase and tailor to their risk management needs.
A non-recourse marketing loan program for upland cotton
remains a cornerstone of farm policy for our industry
regardless of market conditions. The marketing loan is
necessary for multiple industry segments to effectively market
cotton and provide cash-flow for producers.
A strong conservation title, including robust funding for
working lands programs is beneficial to the environment and is
an important tool for producers across the United States. It is
vital that the U.S. be able to continue to produce more food
and fiber while protecting the environment needed for that
production.
U.S. Cotton Trust Protocol is the industry's sustainability
program and is a testament to the industry's commitment to the
environment. Through the Trust Protocol, growers document
continued improvement in reducing greenhouse gas emissions as
well as land, water, and energy use. Many of the
environmentally friendly production practices implemented
through effective working lands programs are reflected in the
data collected in the Trust Protocol.
In closing, I encourage the Committee to write a Farm Bill
that provides long-term stability for the future. There will be
price declines from where we are today. Current input costs,
when paired with reduced commodity prices, are not sustainable.
Recent disasters have been more extreme than the essential
assistance commodity programs and crop insurance products can
provide. Recent trade disputes have caused disarray in our
export markets. More resources are needed. We ask the Committee
to work with the leadership in both parties to provide long-
term solutions to these challenges.
We look forward to working with the Committee and everyone
involved to develop and pass a new Farm Bill that will not only
address the needs of all segments of the U.S. cotton industry
but of all commodities. Thank you, and I would be pleased to
respond to any questions.
[The prepared statement of Mr. Reed can be found on page 40
in the appendix.]
Chairwoman Stabenow. Well, thank you so much.
Next, we will hear from Mr. Doyle.
STATEMENT OF BRAD DOYLE, PRESIDENT, AMERICAN SOYBEAN
ASSOCIATION, WEINER, ARKANSAS
Mr. Doyle. Good morning, Chairwoman Stabenow and Ranking
Member Boozman. Thank you for bringing the Committee to
Arkansas and for allowing me to offer my testimony.
I am Brad Doyle, and I am a soybean farmer from Weiner,
Arkansas. I am here today representing the American Soybean
Association (ASA) in my current role as President. Nationally,
as well as in both Arkansas and Michigan, soybeans represented
the crop with the highest or second highest acreage in 2021.
Soybeans are produced in nearly every State represented by
members of this Committee.
In preparation for the next Farm Bill, ASA started the
process of gathering feedback from farmers last year. Through
listening sessions, a Farm Bill survey, and written feedback,
soybean farmers contributed to the development and recent
release of ASA's Farm Bill priorities. These priorities are
included in my written statement.
These priorities include, among others: improving the farm
safety net for soybeans, such as increasing the soybean
reference price for calculating Agriculture Risk Coverage (ARC)
and Price Loss Coverage (PLC) and providing the option to
update base acres; protecting crop insurance, which is the most
effective risk management tool that soybean farmers have and
lenders value; enhancing accessibility of conservation programs
and maintaining the voluntary incentive-based approach that
farmers appreciate; growing investments in the promotion of
U.S. commodities globally, including Market Access Program
(MAP) and Foreign Market Development Cooperator Program (FMD)
as we continuously seek new markets; and building opportunities
for biofuels and bio-based products, both of which hold great
market potential for our versatile crop.
It is important to note that improving, protecting,
enhancing, growing, and building all require additional
resources. As you prepare to write the next Farm Bill, we
respectfully request that you seek additional funding resources
from the Budget Committee to enable these and the priorities of
others to be possible.
Throughout the remainder of 2022 and into early 2023, ASA
will continue to gather feedback from soybean growers about our
priorities and will continue to refine them. We look forward to
working with you throughout the Farm Bill reauthorization to
craft meaningful and comprehensive farm policy.
Thank you both for your commitment to agriculture and rural
America, and thank you again for this opportunity to share
testimony on Farm Bill perspectives from Arkansas.
I would just like to add I am a two-time graduate of
Arkansas State University College of Ag.
[The prepared statement of Mr. Doyle can be found on page
46 in the appendix.]
Chairwoman Stabenow. Oh, all right. All right. You are
home. That is great.
Commissioner Doramus, welcome.
STATEMENT OF ANNE MARIE DORAMUS, COMMISSIONER, ARKANSAS GAME
AND FISH COMMISSION, LITTLE ROCK, ARKANSAS
Mrs. Doramus. Good morning, Chairwoman Stabenow, Ranking
Member Boozman, members of the Committee. Thank you for the
opportunity to testify on behalf of the State of Arkansas and
to express the importance of the Farm Bill to conservation here
and across the country.
Arkansas's position as an agriculture and recreation leader
gives us a unique perspective about the Farm Bill and its
implications to Arkansas citizens. Outdoors-related recreation
has an annual $9.7 billion economic impact. Waterfowl hunting
alone generates well over $200 million a year and supports
thousands of jobs.
The State of Arkansas has a long history of collaborative
conservation partnerships. Arkansas Game and Fish Commission
(AGFC), Natural Resources Conservation Service (NRCS), Farm
Service Agency (FSA), and many partners have worked proactively
with producers Statewide to conserve and restore the Natural
State from the Ozarks to the Delta. In short, conservation
issues are quality of life issues in Arkansas.
Arkansas is a diverse State, with strong agricultural
industry. The majority of Arkansas is privately owned. The Farm
Bill's conservation programs represent the single largest
investment in private land conservation. Its most critical
function is to support our State's thriving agricultural
communities. However, there are substantial benefits to fish
and wildlife habitat. My written testimony provides details on
the Farm Bill's conservation programs in Arkansas, and I would
like to provide you three examples of recent successes in the
Natural State.
First, let us talk about wetland reserve easements.
Arkansas is a national leader in Wetland Reserve Easements
(WRE), with more than 270,000 acres enrolled in the program.
This is important to recharge aquifers, clean and filter
surface water, build wildlife habitat in critical core areas,
and finally, provide recreational land for people who love
wildlife. We believe increased funding for WRE and management
of WRE projects, especially in water bird focal areas, are
needed in the 2023 Farm Bill.
Next is the Voluntary Public Access program. For Arkansas,
we have a new, innovative working lands project that allows
producers to provide food and water for water birds and
waterfowl on rice fields. We call this program WRICE. Water
birds are a continental resource, and waterfowl need winter
water in Arkansas just as much as they need grasslands in their
nesting grounds up north. The public and our users are desiring
more access to hunting and outdoor activities. For the 2023
Farm Bill, we request increased funding for VPA as well as
extending the grant awards to five years to allow for program
continuity.
And finally, the Regional Conservation Partnership Program
(RCPP), championed by you, Chairwoman Stabenow, in the 2014
Farm Bill. In Arkansas, we are delivering a new open forest
RCPP in south Arkansas and north Louisiana. This program will
reduce the threat of wildfires, and it will improve habitat for
ground nesting birds by opening up overly dense forest using
thinning and prescribed fire.
In closing, I want to thank you for the opportunity to
testify. It is great to see bipartisan support for
conservation. AGFC stands ready to continue working with you
and our partners to achieve a strong conservation title in the
Farm Bill, which is essential to the economic prosperity and
resiliency of our Nation's landowners, producers, and rural
communities and serves as a backbone to conserve our Nation's
valuable soils, forest, wetlands, grasslands, and wildlife
resources.
[The prepared statement of Mrs. Doramus can be found on
page 58 in the appendix.]
Chairwoman Stabenow. Well, thank you so much. I believe
that Arkansas has five RCPP partnerships right now. Is that
right? Which is wonderful.
Mr. John McAlpine, welcome.
STATEMENT OF JOHN McALPINE, PRESIDENT, KINGWOOD FORESTRY
SERVICES, INC., MONTICELLO, ARKANSAS
Mr. McAlpine. Thank you and welcome to Arkansas, the
Natural State. I am John McAlpine. I am an Arkansas native. I
am a second-generation forester, so I have grown up in the
woods and doing forestry work my entire life.
I do run a consulting firm in southeast Arkansas, where we
help approximately 400 landowners, forest landowners, manage
their property on day-to-day operations and pass it down one
generation to the next. Through our work, we have also found
that local-led voluntary conservation has proven to be one of
the most effective forms of getting conservation on the ground.
Arkansas is home to almost 19 million acres of forestland,
of which is 56 percent of our State's area. Eighty-three
percent of that forestland is owned by private individuals.
Seventy-eight percent of our timber volume is on that private
part of the ownership. Arkansas ranks 10th in wood production
and ranks 3rd by percentage of the most dependent GDP for our
forest products. Repeating our State Forester, Joe Fox, he has
also indicated healthy markets are healthy forest. If we cannot
manage our forest and harvest products in the forest, we are
not able to manage those.
Today, we are growing in excess of 24 million tons a year
of excess inventory. Part of this is going to lead to overstock
stands that can continue to have forest health issues. Some of
the benefits from a healthy forest are clean air, clean water,
as well as the forest products we use every day, wildlife
habitat, energy, carbon sequestration.
On the carbon end part of the climate change, forestry has
a great story to tell. Trees are one of the best factories we
have to remove carbon from the atmosphere and store it in
finished products that can be stored for many years. Some of
these products may be Cross-Laminated Timber for mass building,
other structures, other products we use every day. While the
forest products we have harvested have stored carbon, we have a
new crop taking more carbon out of the atmosphere.
Programs such as Environmental Quality Incentives Program
(EQIP), Conservation Stewardship Program (CSP), RCPP, the Joint
Chiefs assist landowners in managing their forest and
accomplishing their goals. Under the 2018 Farm Bill, 41 percent
of EQIP and 24 percent of CSP forestry and wildlife
applications were funded, but there is significant need for
additional funding to help these. Many landowners have not
applied since they have not gotten funding in the past, and
forest landowners are much different than other producers.
Timber is being harvested throughout the entire year, so there
are needs that may not fit within the timelines of applications
and funding under the Farm Bill. There are opportunities to
improve this timeline.
Arkansas's forestland stakeholders have an excellent
history of working collaboratively and voluntarily to manage
our State's forest.
Thank you very much for the opportunity to testify.
[The prepared statement of Mr. McAlpine can be found on
page 62 in the appendix.]
Chairwoman Stabenow. Well, thank you very much. I am
listening to you, thinking there is so much similarity between
the interests of Michigan and Arkansas in this area, for sure.
Mr. Mark Morgan, welcome.
STATEMENT OF MARK MORGAN, FARMER, PEACH PICKIN' PARADISE AND
MORGAN FARMS, CLARKSVILLE, ARKANSAS
Mr. Morgan. Chairwoman Stabenow, Ranking Member Boozman, I
appreciate you giving me the opportunity to talk a little bit
about specialty crops today. I farm peaches with my dad, fifth
generation, hopefully raising the sixth generation on our farm.
Whenever I got my master's in 2010, I missed the farm, and I
wanted to come back. Growing peaches is very important to our
family.
There has been a lot of change in 12 years, you know,
several things that you have to be able to adapt to, and you
know, that is part of farming. Peaches are important not only
to us but our local community. Even through the schools, Farm
to School Program, things like that, we really focus on local
markets.
Some of the most important things that we have struggled
with, and me personally, especially crop producers, is crop
insurance, specifically through RMA. Our premiums are so high
for our losses, and even the ability if we have to buy up the
premiums, they just do not cash-flow. It does not make sense.
Our crop--you know, we are so labor-heavy in January,
February, and March. That is when we are pruning. Our two
biggest problems are in April if we have a freeze damage or
hail damage. Last year, April 20th, we had a freeze. This year,
May 15th, Easter Sunday, we had hail. It changes all the time.
We do not ask for much, but better risk protection packages
through crop insurance is something we would really like to
see.
That usually brings us to the Noninsured Crop Disaster
Assistance Program (NAP). You know, they say, well, you are a
specialty crop guy. You know, why don't you utilize NAP?
NAP just does not really make sense for much of us. It does
not pencil out. In some cases, you can even lose money. You go
to meetings with peach growers, even the tomato guys in south
Arkansas, we are not using NAP because it is not applicable for
our State. You know, advancements in risk management is
something we would really like to see in specialty crops.
Sustainability is huge for all the farmers through
conservation programs that they have mentioned. You know, they
mentioned input costs. We deal with all that stuff, too, but
the biggest sustainability issue that we have in specialty
crops is being able to take--you know, not having the risk
management tools. When you have two or three bad years in a
row, you are done. We just want something a little bit more
reliable.
I love growing peaches. It is one of--you know, it is what
I came back to do, and I love my job. I just want, you know,
myself as well as others to keep that going. That way, that
opportunity is there down the road.
We would just like to see better risk management tools in
the 2023 Farm Bill. Thank you.
[The prepared statement of Mr. Morgan can be found on page
68 in the appendix.]
Chairwoman Stabenow. Thank you very much.
Jennifer James, welcome.
STATEMENT OF JENNIFER JAMES, CHAIR, USA RICE SUSTAINABILITY
COMMITTEE, NEWPORT, ARKANSAS
Mrs. James. Good morning, Chairwoman Stabenow and Ranking
Member Boozman. Thank you for coming to Arkansas. We are proud
to be here and have the opportunity to present this testimony
on behalf of USA Rice for the 2023 Farm Bill.
Jennifer James. I am a fourth-generation rice farmer from
Newport. I farm with my husband, my father, and now my son,
which makes me very proud. We also raise soybeans and corn and
provide many acres of over-winter habitat for migratory
waterfowl each year.
Title I, specifically the Price Loss Coverage Program
(PLC), is really our true safety net, and it is critically
important because it levels the playing field for rice that is
highly subsidized by our global competitors. U.S. farm families
cannot compete in such a distorted world market without U.S.
farm policy, and PLC helps to ensure that more of the world's
rice is produced right here in the United States.
Unfortunately, PLC is no longer adequate. Reference prices
do not provide the level of assistance needed for an effective
safety net for rice producers. Current PLC reference prices for
rice were established based on the 2012 cost of production. USA
Rice is looking into ways the reference prices could be indexed
to the input costs to provide more relevant protection. Payment
limitations also need to be adjusted to reflect the growing
size and risk of our family farms.
Setting aside for a moment our 1923 Farm Bill priorities,
there is a very real and present crisis in the U.S. rice
industry. Currently, rice has been disproportionately affected
by steep increases in input costs, and we have not seen a
corresponding increase in the price of rice. USA Rice has sent
two letters to Secretary Vilsack, asking for financial
assistance for rice farmers.
Our current estimate is that rice acres will fall to 2.2
million acres this year. That is a 27 percent decline from our
average historical acres of 3 million. With acres declining so
fast, one must question how and for how long the unique
infrastructure needed to handle and process rice can survive.
Senator Boozman, we have no greater champion for rice than
you, and I thank you for your support. We think standing by our
Nation's critical rice industry is a worthy investment, and we
hope you and the rest of the Committee will stand with us. In
the wake of the pandemic and now with global food shortages
said to be imminent, Americans are realizing that food security
as a national security issue is not just a clever slogan; it is
a reality. We cannot afford to lose our domestic rice industry.
Farm Bill conservation programs are important to the U.S.
rice industry, and its voluntary incentive-based models need to
be retained. Congress should prioritize working lands instead
of set-aside programs, especially during times of potential
food shortages.
The rice industry has had great success with its
stewardship partnership with Ducks Unlimited and numerous
partners using the Regional Conservation Partnership Program.
Congress should examine how the programs can provide additional
flexibility and reduce administrative barriers.
The Market Access Program and the Foreign Market
Development Program have helped the U.S. rice industry and have
a proven track record of success in more than 30 overseas
markets. Congress should double the funding for these vital
programs.
USA Rice has been intentional over the past several years
to improve crop insurance for rice producers. While crop
insurance in no way replaces Title I or II, it is a critical
part of the safety net.
Thank you for your time and framing up and listening to our
discussion here in Arkansas and for my ability to be here
today.
[The prepared statement of Mrs. James can be found on page
70 in the appendix.]
Chairwoman Stabenow. Well, thank you so much. Thank you to
each of you.
I will now proceed to questions and then turn to Senator
Boozman to do the same thing.
Mr. Morgan, I want to start with you. We have a lot of
specialty crops in Michigan, as you know, including peaches and
cherries and blueberries and a whole range of things. I spend a
lot of time focusing on specialty crop issues, and one of those
has been crop insurance.
NAP has not worked for Michigan. When we got wiped out a
number of years ago after a freeze, it did not work, and so I
understand what you are saying. We have begun that process. We
have now said crop insurance can be there for specialty crops.
I wonder if you would talk more about how we improve crop
insurance from your standpoint or other risk management tools
for specialty crops here in Arkansas.
Mr. Morgan. A lot of the specialty crops--you know, I mean,
if you have a lender, they require you to have coverage. You
know, one of the problems I face is we are a pick-your-own. We
have folks that come out. You know, my tree--and this is just
an example. I cannot have a 20-foot tree because we have people
coming out. We cannot have ladders out there. That is a lawsuit
nightmare. My bushels per acre is significantly lower.
Specialty crops are very diverse. It is very difficult,
even a peach grower to a peach grower. We do not all fit in the
same box. You know, more options for different types of
operations is something that I really think would help because
even within, like you say, the peach crop, the diversity is
substantial.
Chairwoman Stabenow. I look forward to working with you and
Senator Boozman on that because specialty crops are all very
different and that is one of the challenges from a crop
insurance standpoint, but we need to make improvements.
Mrs. James, you highlight the value of conservation
programs in your testimony and the tremendous demand for EQIP
and CSP and RCPP, all great acronyms for great conservation
programs, and I wonder if you could describe how we can help
better meet the demand you describe. Talk a little bit more
about that.
Mrs. James. Well, as I am sure you are very aware, we are
at about a 3:1 application to approval with just EQIP, I
believe, alone. There is great demand. There is great demand in
the rice industry, and we have fortunately been able to utilize
those programs to move the needle in sustainability, water
quality, water quantity, soil health issues and things like
that. You know, as those programs need to be--continue to be
funded. For us in the rice industry, it is the most important
for us to stay in business, and economic sustainability today
is of utmost importance for our producers.
Chairwoman Stabenow. Thank you.
Mr. Doyle, I wanted to ask, we have got a lot of soybeans
in Michigan as well and do a lot of really exciting things
around bio-based products, as you know, a whole range of things
that are exciting. I wanted to ask you about the USDA's
announcement that it will invest $1 billion in supporting
Climate-Smart commodities and environmental service markets
that can be benefit commodity producers. What opportunities
exist for soybean farmers to take advantage of these markets
and adopt what we dub as Climate-Smart agricultural practices?
Mr. Doyle. Thank you, Madam Chairwoman. Yes, it is very
exciting. As you will see today visiting the Judd Hill farm, it
is quite different than what you are used to up north. You will
not see much of last year's crop residue. Our environment here
is a lot warmer and speeds up the process of breaking down
organic matter. Cover crops have been a challenge here.
We have got some really, really great forward-thinking
farmers that make it work. It does not work for everybody, but
I know cover crops and no-till farming are the norm in the
Midwestern States. Here we have our own unique challenges.
I believe there are several hundred proposals into the
Climate-Smart program. I have been a part of several. United
Soybean Board is one of those who have applied. We are very
excited to see what comes out of that.
As mentioned here before, we have got farmers who believe
in conservation because we invest in our soils and we want them
to remain on the farm. We all primarily drain into the
Mississippi River Basin, and that is money flowing away from
the farm. There are many practices you will see, such as flash
board risers, our roads are more elevated, things you will
probably not normally see in Michigan, and I am excited for you
to personally see those practices.
We have got some of the best farmers in the world, I
believe, and the practices that will be presented through
Climate-Smart will be able to meet those challenges.
Chairwoman Stabenow. Great. Thank you very much.
Commissioner Doramus, talking about conservation programs
for ducks and other wildlife in your testimony, we certainly--
again, very common interests between Arkansas and Michigan. Can
you give us an example of how these programs benefit both
farmers and wildlife at the same time and as well as conserving
the land, benefiting our farmers economically? You spoke a
little bit about it, but I think this is such an important
point. I wonder if you might just expand on that.
Mrs. Doramus. I could not agree more. That is a very
important point, and how it correlates with each other is for
the farmers--first off, I want to say that I do have a
background, yes, in conservation, but my family also has a row
crop operation in south Arkansas, so I see a little bit of
both.
These programs are very innovative in areas of production
where it is not conducive to farming, that would be better
suited to wildlife. Why not work together on these issues to
provide more habitat for wildlife? In the end, it benefits the
quality of life in Arkansas and increased participation in the
outdoors, whether it be hunting, birdwatching, habitat for
water birds, et cetera. It really goes hand in hand as far as
conservation goes.
Honestly, we would like to see in the future, as I
mentioned, more WRE participation and more funding to that,
especially more boots on the ground, because there is a lot of
producers out there who are wanting to get on these programs
and getting them on would be very vital and beneficial to the
State of Arkansas and our resources.
Chairwoman Stabenow. Great. Thank you.
Mr. McAlpine, you stated in your testimony that foresters
need clear and transparent guidance and protocols before they
can participate in carbon markets. We hear that a lot, and I
agree. What tools can Congress provide to the Farm Bill--and
Senator Boozman and I are working on how do we create that
support and clarity, you know, and support USDA to support you
to do that. What tools could we do through the Farm Bill to
alleviate some of the ambiguity and ensure that forest owners
and land managers benefit from carbon market incentives?
Mr. McAlpine. Thank you. The carbon markets. You know, it
is important from my perspective to be able to be very clear
and transparent to both the ones producing the carbon credits
as well as the ones buying the carbon credits. Some of the
things that are already in place are some of the forest
certifications that many of the landowners already have to
prove those lands are being managed sustainably.
You know, many of--the Farm Bill can support the
reforestation and continued, you know, management of those
properties in a healthy way, such as some of the prescribed
burning, thinning, other types of things to manage those
forests, to keep them in a productive part.
One of the important things also with the carbon markets is
to have working forests, not forests that are just set aside.
Forests that are set aside will take less carbon out of the
atmosphere than forests that are actively growing and healthy.
Chairwoman Stabenow. Great. Thank you so much.
Mr. Reed, talk a little bit more--because the severe
weather is wreaking such havoc because of what is happening in
the climate crisis and carbon pollution and so on, I want to
talk a little bit more about this. You highlighted the
potential $350 million economic benefit to cotton farmers that
could result from the USDA Climate-Smart Partnership Grants,
and I wonder if you could describe a little bit the role of
cotton farmers and the U.S. Cotton Trust Protocol that you
talked about, which I am so interested in, in mitigating the
effects of the climate crisis as well as providing economic
benefits for our farmers.
Mr. Reed. Absolutely. We in the cotton industry, similar to
rice, our product is more direct-to-consumer. It is people look
for cotton, and we are very of that. We are starting to see
that consumers are demanding. They want to know where their
products come from, and they want to make sure it is
sustainably sourced. As an industry, to get out in front of
that, we created this U.S. Cotton Trust Protocol because we
know that we are conservationists, that farmers are, at heart.
We know we are doing what is best for the land to pass down to
our children. It is generational, just like any other--
everybody here at this table.
Through the U.S. Cotton Trust Protocol, it is a way for us
as the cotton industry to show the world that American cotton
is the most sustainably sourced cotton on Earth. If you want
sustainably sourced product, if you are a retailer or a
consumer, buy American cotton.
With this cotton--or, with this $350 million, the cotton
solutions--or, the climate solutions, that will provide funding
through the--provide funding through the Trust Protocol to
maybe provide some incentives for farmers to do more. The way
the Trust Protocol works is you get on a website and show the
conservation practices you are doing and it recommends some
more, but there is some additional funding there to help
jumpstart and maybe provide more cover crops or provide some
ability to reduce erosion in places.
Also, through that, we would like to partner with some
Historically Black Colleges and to recruit minority producers
for Protocol membership and compensation through the adoption
of Climate-Smart agricultural practices.
Chairwoman Stabenow. Great. Well, thank you so much. Thank
you to each of you.
I am going to turn now to Senator Boozman for his
questions.
Senator Boozman. Thank you, Madam Chair.
Nathan, Brad, Jennifer, each of you operate diversified
operations. You have all touched on the need for improvements
to the farm safety net while also expressing the importance of
its continuation. Can each of you take a moment to highlight
the risk you are facing this year and how you are managing that
risk and then, very importantly, what concerns that you have as
we go into the next season?
Mr. Doyle. Thank you, Senator Boozman, for the question.
Going into this year, we had a lot of excitement coming off of
last year's crop. Prices have risen, and we were looking and
feeling pretty good about what we were going to plant. Then
here came the input prices right behind, and crop prices did
not double, but input prices do and did, and most all input
prices.
If we look at profit margin on the farm, family operations,
they invest a lot of money, collateral each year, basically put
the farm up each year to go one more year at a time. We look to
those programs, ARC and PLC, crop insurance for soybean. Ninety
percent of soybeans use crop insurance, so it is very, very
vital to our family livelihood to have that accessibility.
I believe it is about money. We need more money in the
program. We do not need to trade money around. If there is an
ask, it is an ask to go back to the budget committee and ask
for more support there. The reference price for soybeans needs
to be looked at. It is just not feasible to use the current
level. Even in a year where China--we had the trade war and
that was not triggered, it just shows you that is proof that
things need to be changed.
That would be--we are going to manage our risk as farmers,
save our inputs where we can, be more efficient, absolutely,
but we do rely heavily on those safety net programs.
Senator Boozman. Very good.
Mr. Reed. That is--obviously, as a farmer, I still consider
myself a young farmer, maybe not as much anymore, but we
still--I mean, pretty much my whole livelihood is on the line
every year. I mean, one--as capital-intensive as farming has
become, one bad season could about wipe us out without some
other form of intervention, and so, obviously, we worry about
commodity prices declining while input prices are high.
Another concern is--and I do not know the way around this,
but all farm programs are based off revenue and the price of
the crop. There is not really any mechanisms there when you get
in a--even though we do have high prices, our input prices are
a lot of times higher than what our commodity prices. You know,
that is a very big concern.
You know, just with maybe a looming recession in the cotton
industry, apparel, you know, apparel and home furnishing go
down, so the demand for cotton may go down.
That is the big--I guess what my concerns are is not having
any kind of safety net on the input side. Prices could still
stay high on the commodity, and we could still--if these inputs
continue to rise--I mean, I spent--and I am not a large farmer.
I think I spent $200,000 yesterday on diesel, getting ready to
start irrigation on a small family farm. It is just--you know,
when all our prices have doubled, that is huge risk.
Senator Boozman. Jennifer?
Mrs. James. Well, the end of your question was about next
season, and today, I am worried about this season very, very
drastically, as I stated in my brief testimony. Rice farmers in
the U.S. have not seen in the increase in the price of rice as
the other commodities are enjoying.
We are in a critical situation with the reduction in acres.
That means less hundredweights to go through our dryers, to go
through our mills, to put on the shelf, to remain viable in the
marketplace, to maintain market share in our markets in the
world.
Some of the economic analysis is showing that we are going
to have a drop in net farming income of about $880,000 per farm
in 1922. Ten of the fifteen--the AFPC representative rice farms
are going to show a loss. It is a very serious situation, and I
know that any assistance that might come in 1922 will not make
us whole, but it might make us start looking at 1923.
Senator Boozman. Very good.
Mark, in your testimony, you mentioned the challenges
facing adequate labor for your operation. Can you describe some
of the workarounds? How are you able to handle the challenges?
Mr. Morgan. Oh, that could take a while. You know, we have
always prided ourselves on our farm of paying really good
wages. When you talk about labor, it is not really just the
labor; it is skilled labor. It seems like that is what we
cannot find anymore. If you know, an employee can weld or was a
good pruner and could pick adequately, you know, that is
something that we were always willing to compensate. The basis
I mean, the basic fact is in the last three, four years that
worker is no longer available. That generation is gone.
I have got H-2A paperwork sitting on my desk for--you know,
I always said we would avoid it. What kept me from, you know,
kind of going through that program is we need a workable
program that is more turnkey, that is more, you know, readily
available, that whenever it is time to do the work, to do the
work.
We are scraping by right now the best we can. Again, it is
just the lack of skilled labor, it seems, that we are having
trouble with.
Senator Boozman. Very good. Thank you.
John, will you share your recommendations of what you think
is needed, or perhaps not needed in some cases, from the
Federal Government as it relates to supporting healthy working
forests and the rural communities that rely on the multitude of
benefits that those resources provide? That is so, so very
important. What programs or policies do you think are working
well for you, and what improvements would you like to see
Congress consider as we work on the next Farm Bill?
Mr. McAlpine. Some of the things would be to just be able
to have an extension to markets for these landowners. Without
being in the markets, you know, they may not continue to manage
their forestry, even own their forest, convert them to other
uses.
You know, some of the other things that really do put some
of these forests at risk, a big issue is invasive species and
the continued work on invasive species, and that is one of the
places where the Farm Bill can really help effect work on the
invasive species. We are seeing more and more invasive species
from the emerald ash borer, the Chinese tallow tree, feral
hogs. You know, there is a gamut of those, and it seems like
they just spread invasive species at an exponential rate
anymore.
Senator Boozman. Very good.
Anne Marie, we mentioned the RCPP project, the fact that we
are participating. What advice would you have for us to help
improve the program and better ensure that the program is
successfully leveraging limited Federal dollars?
Mrs. Doramus. Well, first, we are very grateful to have
this RCPP project between south Arkansas and north Louisiana.
Partnerships is key.
One thing that we would ask is, I guess, more flexibility
and localized control because south Arkansas is different than
doing a project in north Arkansas. For instance, we had an RCPP
project on the Buffalo River up there. The topography and
landscape is completely different than it is in south Arkansas.
Really, in short, flexibility is really what we desire in that
program.
Senator Boozman. Very good.
Nathan, you mentioned that cotton is produced across 17
States, many of which are experiencing severe drought. Can you
describe how this difficult reality should be weighed as
Congress reviews the Farm Bill's various risk management
options?
Mr. Reed. Well, cotton is a very diverse crop. It needs
heat, but it can grow from extremely dry conditions to
extremely wet conditions. It is very diversified amongst the
growing regions in the way that we produce the crop.
Here in Arkansas--when you get into the dryland production
in west Texas, crop insurance is a very big aspect of it. Here
in Arkansas, we have spent our land being improved. Most of the
cotton grown in Arkansas is grown on improved cropland. We have
spent money improving our land, putting irrigation in, and so
we grow a very high input crop.
The issue is after we spend all that money doing that we
really cannot afford a high priced insurance product on top of
it. We are generally always going to make a crop, but again,
with high input prices, we may still lose money. The current--
and for Arkansas cotton producers, I would say the current
insurance products offered generally are not taken advantage of
that well because it is very hard to take out insurance if you
know you will never collect.
I mean, I do take out crop insurance, but in 20 years of
farming I have never collected on yield on the back end. We do
use it for the prevent plant aspect of it because we do have--
we are in the low area that can flood in the spring and if we
cannot get the crop in, so that is the main reason it is taken
out. Really, shallow loss is our main risk.
We do have the STAX program we are very thankful for, but
something expanded on that, whereas STAX is on a county level
rather than an actual farm level.
Too, maybe being able to add cotton base in this next Farm
Bill. I have been farming 20 years, and I have never been able
we are very thankful that cotton got put in the last Farm Bill,
but we did not get an opportunity to update our base acres. For
Arkansas--I mean, I am only 20 percent based on my acres. If we
could have that opportunity, that would help to be able to have
the base of the crop we are growing and mitigate some risk
there.
Senator Boozman. Very good.
Thank you, Madam Chair.
Chairwoman Stabenow. Well, thank you so much and thank you
to each of our witnesses on our first panel. We will take a
brief pause so that our second panel can join us, but thank you
so much for being with us.
Chairwoman Stabenow. The Committee will reconvene and
welcome our second panel of witnesses, and I will turn to
Senator Boozman to make introductions.
Senator Boozman. Thank you, Madam Chair. Our first witness
for today's second panel is Mr. Greg Cole, the CEO of
AgHeritage Farm Credit Services. Greg joined the Farm Credit
system more than 38 years ago as a student intern with what was
then known as the Farm Credit Bank of St. Louis. During his
tenure, Greg served in various roles and was named President
and Chief Executive Officer of AgHeritage Farm Credit Services
in 2008 after serving as the Chief Operating Officer for
AgHeritage.
Thank you very much, Greg, for being here today.
Next up is Elizabeth Bowles. Elizabeth is the CEO of
Aristotle Unified Communications, a broadband internet service
provider headquartered in Little Rock, Arkansas. In addition to
her role as CEO of Aristotle, Elizabeth has served two terms as
Chair of the FCC's Broadband Deployment Advisory Committee and
is a past President of the Wireless Internet Service Providers
Association.
Thank you, Elizabeth, very much for being here.
Next is Mr. Buddy Hasten. After growing up in Iowa, Buddy
enlisted in the United States Navy in 1986 as a submarine
reactor operator and was selected for the Navy's Nuclear
Enlisted Commissioning Program. People who serve on submarines
are special people.
After a 20-year career in the Navy, Buddy returned to Iowa,
where he served as the Regional Director of Generation for
Iowa-based power plants at Alliant Energy. In 2011, Buddy
joined Associated Electric Cooperative in Springfield,
Missouri, where he served as Vice President of Engineering and
Construction until coming Arkansas in 2019, where he has since
served as the President and CEO of Arkansas Electric Co-op.
Thank you, Mr. Hasten, very much for joining us today.
Next is Rhonda Sanders. She is the CEO of the Arkansas
Foodbank and has served in that role for nearly 10 years. Under
her leadership, the Arkansas Foodbank distributed 38 million
pounds of food in 2021, which provided approximately 31 million
meals. Rhonda is an active leader in the Feeding America
Network and currently serves as a co-chair for their Contact
Task Force after serving as past Chair for the Policy
Engagement and Advocacy Committee.
She was also awarded the Feeding America Dick Goebel Public
Service Award in 2019. She has a long history of serving her
community at the Arkansas Home Visiting Network, Arkansas
Hunger Relief Alliance, and Arkansas voluntary organizations
active in disasters.
We have been lucky to have her leadership in Arkansas and
want to congratulate her on her retirement at the end of the
year. I say, congratulations, it is a good thing, but it is
very, very sad. Thank you, Rhonda.
Next, we have, last but certainly not least, Mr. Dennis
Sternberg. Dennis is the CEO of Arkansas Rural Water
Association, where he is starting his 43rd year in the water
and wastewater business. Dennis started his career working in
the city of Bull Shoals, Arkansas, as Wastewater
Superintendent. After serving as Wastewater Superintendent,
Dennis then held positions at the National Rural Water
Association before joining the Arkansas Rural Water Association
in 1989, where he has been ever since. In 2009, the United
States Department of Agriculture and National Rural Water
Association recognized Dennis for his leadership in emergency
response preparation.
Dennis, thank you so much, also, for being with us today.
Mr. Sternberg. Thank you, Senator.
Chairwoman Stabenow. Wonderful. Well, thank you very much,
and we will start with Mr. Cole.
STATEMENT OF GREG COLE, CHIEF EXECUTIVE OFFICER, AGHERITAGE
FARM CREDIT SERVICES, LITTLE ROCK, ARKANSAS
Mr. Cole. Madam Chairwoman Stabenow, welcome to Arkansas
and Arkansas State, and we thank you for your leadership and
your continued support of the Farm Credit system. I also want
to thank you and Ranking Member Boozman for calling this
hearing.
I am Greg Cole, President and CEO of AgHeritage Farm Credit
Services headquartered in Little Rock, Arkansas. AgHeritage
Farm Credit Services, Farm Credit of Western Arkansas, and Farm
Credit Midsouth comprise the Farm Credit Association of
Arkansas. We are a cooperative. We are owned by farmers and
ranchers we serve. We provide financing, crop insurance,
related services to more than 22,000 farmers, ranchers,
agribusinesses, and rural homeowners here in the Natural State.
At the end of last year, Farm Credit Associations had $4.8
billion in loans, 38 service locations throughout the State,
and over 280 employees.
Arkansas farmers are realizing high crop prices along with
other farm products. However, these higher prices are being
offset by high inflation that is significantly increasing crop
production cost. Arkansas farmers are being hit by higher fuel
costs, increasing interest rates, increasing labor costs, and
reduced government payments. Supply chain disruptions are
making it difficult for farmers to get certain equipment parts
and inputs that are required to produce crops and livestock and
operate farms in general.
The Farm Credit Associations of Arkansas are very well
capitalizing and in very good position to serve agriculture
through this volatile time. We remain committed to working with
our borrower-owners through all economic cycles.
We have a deep commitment for young, beginning, and small
farmers. We offer special interest rate programs, reduced
underwriting standards for young and beginning small farmers.
We host a Future Legacy Young and Beginning Farmers Conference
here in Arkansas, which creates opportunity for young farmers
to network with peers in the State and gain great insights into
agriculture and financial topics.
Supporting people of color in agriculture and rural
communities is an integral part of the Farm Credit system
mission. We have launched a pilot program at a high school here
in Arkansas to educate minority youths on opportunities and
careers in agriculture. We have outreach program for Hmong and
Marshallese farmers, and we are committed to recruiting at
universities with diverse populations.
Farm Credit has supporting innovation agriculture for over
100 years, including Climate-Smart practices. As the Committee
considered Climate-Smart policy going forward, we urge you to
craft solutions that are incentive-based, voluntary, and market
based to reflect sound science.
From a lending perspective, financing options must be based
upon capacity. Lenders are not the appropriate avenue to
determine the efficacy of specific farming practices or
penalize or reward producers for certain farming practices.
We hope the Committee will consider increasing the loan
limits of FSA loan programs, especially in light of inflation
and construction costs in poultry facilities that we finance a
lot here in Arkansas.
Crop insurance and Title I commodity programs are vital to
Arkansas farmers. The programs provide a solid safety net, and
we urge you to do no harm in changing those programs as you
formulate the 2023 Farm Bill.
Thank you again for the opportunity to testify, and I look
forward to your questions.
[The prepared statement of Mr. Cole can be found on page 82
in the appendix.]
Chairwoman Stabenow. Well, thank you very much.
Ms. Bowles, welcome.
STATEMENT OF L. ELIZABETH BOWLES, CHIEF EXECUTIVE OFFICER,
ARISTOTLE UNIFIED COMMUNICATIONS, LLC, LITTLE ROCK, ARKANSAS
Ms. Bowles. Thank you. Good morning, Chairwoman Stabenow
and Ranking Member Boozman. I appreciate the opportunity to
appear before the Committee today.
My company, Aristotle, is a broadband internet service
provider headquartered in Little Rock, Arkansas. We deploy a
combination of fiber to the home and fiber/fixed wireless
hybrid networks predominantly in rural areas of Arkansas and
the Mississippi Delta. Our mission is to ensure that all
Americans have equal access to broadband regardless of where
they choose to live.
In my capacity as Chair of the Broadband Deployment
Advisory Committee, I was very focused on the policies and
issues that affect broadband in rural America, and I was
dedicated to making sure that the recommendations help rural
America move forward in broadband connectivity.
Over the last four years, Aristotle has applied for and
received more than $100 million in Federal funds to bring
broadband to parts of five States. The majority of that funding
is for rural, poverty-persistent counties in the Arkansas and
Mississippi Delta. Aristotle's current network brings reliable,
high-speed broadband internet of speeds 100/20, 100 Mbps down/
20 Mbps up, to over 77,000 rural Arkansas households that
previously had no access to broadband.
The United States has made a lot of progress in getting
broadband in rural America, but many rural Americans still lack
access to broadband service. The bipartisan Infrastructure and
Jobs Act makes available once-in-a-generation $65 billion for
broadband, and a lot of that money is going to go into rural
America. That program has initiated a fiber first, fiber only
strategy, which means that the program will probably run out of
money before every rural American is served. This is a concern
that I have and something that the Farm Bill does not need to
follow down that path.
The Farm Bill is not a one-shot program. It can continue to
fund rural broadband long after the BEAD funds are spent, and
for this reason the legislative priority of the Farm Bill needs
to be to ensure that every rural American has access to speeds
of at least 100 Mbps down/20 Mbps up before we start funding
gigabit broadband to certain rural homes which will necessarily
leave other rural homes behind. These businesses, farms, and
rural homes are dependent on the digital economy.
In Arkansas, Aristotle used CARES Act funding to deploy
100/20 hybrid network in less than a year to nine counties in
the Arkansas Delta. The cost per passing was $400 a household.
A fiber-only deployment could not have met this timeline, much
less the per-household cost. For example, fiber-to-the-home
grants awarded in Arkansas under the ARPA program, which has a
100/100 symmetrical requirement, averaged over $6,000 a
passing, and some of those grants awarded $14,000 per home.
Fiber is very expensive, and it takes a lot longer to
deploy than other technologies. Rural communities do not have
the luxury to wait years for broadband connectivity, and if the
focus of the Farm Bill broadband programs is to ensure that
every rural farm and resident has access to broadband, then it
is critical that the broadband programs in the Farm Bill remain
technology-neutral.
Thank you again for the opportunity to speak to you today,
and I look forward to answering your questions.
[The prepared statement of Ms. Bowles can be found on page
87 in the appendix.]
Chairwoman Stabenow. Thank you very much.
Mr. Hasten, welcome.
STATEMENT OF BUDDY HASTEN, PRESIDENT AND CHIEF EXECUTIVE
OFFICER, ARKANSAS ELECTRIC COOPERATIVE CORPORATION, LITTLE
ROCK, ARKANSAS
Mr. Hasten. Good morning. Good morning, Chairwoman
Stabenow, Ranking Member Boozman. On behalf of the electric co-
ops of Arkansas, I thank you for the opportunity to testify
today.
My name is Buddy Hasten, and I grew up as a simple kid on a
farm in Iowa, who had no idea the Farm Bill was so complex or
so important. Currently, I reside here in Arkansas and proudly
serve as the President and Chief Executive Officer of the
Arkansas Electric Cooperative Corporation. I hope you will
spend some time on my written testimony, where I cover a lot of
different topics, but this morning I want to focus in on the
two most critical issues for us: maintaining reliable and
affordable electricity and supporting the communities we serve
by deploying rural broadband.
We are very concerned about the recent retirement and
amount of planned future retirement of baseload electric
generation resources. These are being replaced primarily by
intermittent generation, like wind and solar. The electric
cooperatives of Arkansas are committed to deploying more clean
energy. However, we believe the ongoing energy transition is
moving at a pace that ignores current technological and market
realities.
This Committee should be concerned because when the
reliability of the electric grid fails in rural America it
almost always results in financial catastrophe and loss of
human life. One defense against this bad outcome is to ensure
that RUS can continue to make loans for all different types of
generation technologies, both traditional baseload and
renewables.
Although outside this Committee's jurisdiction, I would
also strongly advocate for leveling the playing field when it
comes to access to Federal incentives for clean energy
investments. Due to cooperatives' not-for-profit structure, we
are unable to fully utilize tax credits for clean energy. If
cooperatives had comparable incentives and could receive the
full value of the tax credits through a direct payment, we
could more effectively pursue emerging clean energy
development.
Affordable electric rates in Arkansas are threatened by
inclement weather, supply chain disruptions, and high energy
prices. One policy that would greatly help electric
cooperatives keep rates affordable would be the opportunity to
refinance rural utility services' debt. I want to give a
special thank you to Ranking Member Boozman, who has sponsored
a bill that would allow co-ops to do just that. This bill would
yield over $100 million in future savings for our member-owners
in Arkansas. Those savings will result in lower electric rates
and better infrastructure in rural communities.
Last, the Farm Bill is important to us because it contains
many different types of rural economic development tools.
Electric cooperatives are often partnered with USDA in
deploying those tools. Deploying broadband in underserved parts
of our State remains a very high priority for us and the
communities we serve. Both RUS electric program loans, as well
as ReConnect, are critical in that effort. As Congress begins
to think about the next Farm Bill, ensuring that these programs
are flexible and streamlined will allow electric cooperatives
to deploy fiber resources as quickly and efficiently as
possible.
Thank you again as you consider the upcoming Farm Bill, and
we look forward to working together on our shared goal to
improve life in rural America.
[The prepared statement of Mr. Hasten can be found on page
98 in the appendix.]
Chairwoman Stabenow. Thank you so much.
Mrs. Sanders, thank you for all of your wonderful service
to your people in Arkansas.
STATEMENT OF RHONDA SANDERS, CHIEF EXECUTIVE OFFICER, ARKANSAS
FOODBANK, LITTLE ROCK, ARKANSAS
Mrs. Sanders. Chairwoman Stabenow, Ranking Member Boozman,
and fellow panel members and guests, I am Rhonda Sanders, CEO
of the Arkansas Foodbank, and I am honored to be here today to
speak on the impact of the Farm Bill on our neighbors facing
hunger in rural communities.
Arkansas Foodbank serves 33 counties in Arkansas and
partners with five other leading American foodbanks in the
State to create a comprehensive hunger relief system. Our
service area covers over 24,000 square miles of which 17,000
are considered rural. The Farm Bill is important to us in the
hunger relief system, and it played a major part in helping
Arkansas meet the needs during the pandemic.
We learned many things during the pandemic that can help
shape the next Farm Bill. During the pandemic, we proved the
value of partnerships between public and private entities. USDA
programs like TEFAP, CSFP, Farm to Family, and SNAP provided
needed income for farmers, grocery stores, and producers while
also providing food for thousands of hungry Arkansans. We
became flexible with distribution as well as requirements of
programs. Everyone pivoted together to ensure organizations and
people facing hunger had much needed resources.
The difficulties of serving rural communities has always
been evident but were even more so during the pandemic. Rural
areas, on average, have fewer resources and less infrastructure
to help meet the higher than average needs of people facing
hunger. This has always placed a burden on foodbanks, but
during the pandemic, we developed new partners, strategies, and
networks to help meet the needed goals, things like expanded
rural deliveries and increased mobile distributions that are
now a regular way of working.
We are now facing new enemies, though, inflation and supply
chain disruptions. These enemies disproportionately affect
rural communities. The people we serve lack the resources to
travel further and to pay more. There are already limited
grocery stores, but now they lack product. The foodbanks in the
State stand in a gap. We struggle daily to meet the need due to
the high cost of food and transportation plus dealing with food
shortages.
I am going to share a part of Willie's story. Willie comes
the last Tuesday of every month to the food distribution at the
Arkansas Foodbank's Delta Branch. This is a TEFAP distribution.
Willie arrives around 1 in the morning to get ready for the
8:30 in the morning TEFAP distribution. He drives 45 miles
round trip to get to that food each and every month.
He said, ``I love everything I get, the beans, the rice,
and vegetables'' because Willie and his wife are raising two of
their grandchildren. They save a little bit of money every
month to buy the needed things for their grandchildren. He
shared that 1 month they had a really large gas bill and it
took all of their funds to cover it. He said, ``If not for the
Foodbank, we would not have had groceries that month.''
The Farm Bill helps to address the needs of our neighbors
like Willie. It is the foundational program in our fight
against hunger while also being an economic driver in rural
communities. Modernizing the determination of SNAP benefit
levels is a major improvement. Increasing access to foods to
purchase with commodity funds, continuing to streamline
requirements for TEFAP and CSFP, and increasing funding for
TEFAP food storage and delivery are additional changes that
will help the foodbanks feed neighbors in need.
In conclusion, there is not a silver bullet that will solve
the issues of hunger in rural communities. However, supporting
legislation that will support successful business endeavors
while also providing food for immediate needs and long-term
interventions is clearly a win-win. The Farm Bill has a long
history of being that type of legislation as well as being
adaptable for meeting the current needs of our State and
nation. Thank you for continuing to improve and champion this
vital piece of policy.
[The prepared statement of Mrs. Sanders can be found on
page 103 in the appendix.]
Chairwoman Stabenow. Thank you very much.
Last but not least, Mr. Sternberg.
STATEMENT OF DENNIS STERNBERG, CHIEF EXECUTIVE OFFICER,
ARKANSAS RURAL WATER ASSOCIATION, LONOKE, ARKANSAS
Mr. Sternberg. Thank you, Chairwoman Stabenow and Ranking
Member Boozman, for this opportunity to testify today. My name
is Dennis Sternberg, and I speak to you today on behalf of the
Arkansas Rural Water Association, which is one of a nonprofit
federation of State rural water associations that operate in
all 50 States.
Madam Chair, it is an honor to testify before you in this
Committee today on the important topic of the 2023 Farm Bill.
Senator Boozman, thank you for always supporting rural
Arkansas and rural America.
Rural America faces unique challenges that small, rural
communities face every day, and the program such as the USDA
Rural Development Program is the only Federal agency created by
Congress to specifically serve rural Arkansas and rural
America. I would like to highlight briefly two USDA Rural
Development programs that directly assist all rural America and
a third that needs to be included.
Circuit Rider. One of the most successful approaches for
overcoming the challenge in rural America has been the Circuit
Rider concept created by this Committee, which provides
experienced hands-on experts to help rural water systems meet
Federal and State requirements and protect the government's
investment through USDA. It provides a pool of expertise that
is otherwise unaffordable for the small and rural system and is
a vital resource to ensure our safe water supply. Last year,
Circuit Rider directly helped to protect the health and safety
of 24,780,000 people, 41 percent of rural America.
Wastewater technical assistance. Wastewater technicians are
core to ensure small and rural communities can provide
affordable and safe sanitation services. The initiative
provides on-the-ground technical assistance directly to
communities for wastewater treatment facilities. Assistance
includes design, upgrade recommendations, daily operation,
maintenance advice, assisting with permit renewals, and helping
the systems meet compliance requirements on the State and
Federal regulations.
Several years ago, this service was disrupted in Arkansas
and a few other States when the Agency shifted funding for a
new initiative. We recommend to the Committee to provide
priority within the water and wastewater technical assistance
grant account to sustain this essential service and consider a
multiyear, competitive, cooperative agreement for stability and
planning purposes.
Third, Circuit Rider Emergency Disaster Assistance for
small and rural communities. ARWA and other State rural water
associations have been providing onsite, direct disaster
recovery and prevention during that time of need to utilities
through the USDA Circuit Rider program for decades. I take
pride that ARWA is one of the leaders in this effort. We
currently provide hands-on training to other State rural water
associations at our facility located in Lonoke, Arkansas.
Current statutory and administrative burdens limit the
effective and timely response of these services. In numerous
cases, State associations, like ARWA, were forced to absorb the
financial costs incurred to provide recovery and response
activities. NRWA requests the consideration and permanent
authorization to enhance this critical emergency service.
I thank you for my time and appreciate you.
[The prepared statement of Mr. Sternberg can be found on
page 108 in the appendix.]
Chairwoman Stabenow. Well, thank you so much. Listening to
all of you, it is such a reminder that the Farm Bill is much
more than the critical support for our farmers. What you are
talking about is quality of life in rural communities all over
the country and essentials to making that happen, and this is
very much a part of what we call the Farm Bill. Certainly Farm
Credit is essential as well in so, so many areas.
Mr. Sternberg, let me start with you. You talked about the
fact that without special assistance for rural communities
oftentimes the larger communities, because they have got the
administrative or financial resources, are able to compete more
successfully for funds. I am glad you mentioned the efforts
that we put in place and appreciate all that you are doing,
your organization is doing, on that to make sure we are talking
about rural communities, small towns getting what they need.
You also mentioned the need for targeted rural water
programs for low-income rural communities. I am wondering, what
are some of the challenges your organization is seeing in these
low-income communities in Arkansas, and how can the Farm Bill
programs begin to address those challenges?
Mr. Sternberg. Well, thank you for the question. Throughout
Arkansas, the majority of Arkansas is rural, as many States
across this Nation. One of the things that we heard commented
earlier this morning is 33 out of the 75 counties, I believe,
have a declining population. It is more important that USDA
focuses on those counties and those small communities that are
needing to be funded by USDA through grants and loans.
I think one of the problems USDA is having in Arkansas, and
I would suspect across the Nation, is for the last several
years since COVID especially the Rural Development offices
overall pulled back, and rightfully so, not been out traveling
or talking to their clients.
And there has been a turnover within USDA staff, seasoned
people retiring. A lot of the staff is not being replaced. The
past State Director, Marshall, I cannot think of this name
right now, but anyway, it was one of the concerns he had. He
said, I cannot keep staff, and when a position becomes vacant,
they are not allowing me to rehire.
They need to promote what USDA does because it is the best
thing for rural systems, and we need to keep this. Getting that
message out--I think a marketing tool through the Department of
Ag with USDA Rural Development needs to be focused on because I
see a great need.
The other problem we have got is when you are having the
infrastructure money being given to the States for water and
wastewater and other broadband and other things, you know, it
is a lot easier to go through the State to get funding than it
is through the Federal Government/USDA, just the hoops you have
to jump through. Engineers are the ones that are going to
advise that system where to go.
Chairwoman Stabenow. Thank you.
Mrs. Sanders, in your testimony, you talked about how the
Arkansas Foodbank efforts complement the work of the Federal
nutrition programs. Can you tell us more about how these
Federal programs and food programs helped the Arkansas Foodbank
respond to the increased need for food assistance during the
pandemic?
Mrs. Sanders. Absolutely. TEFAP commodities is truly a
lifeline within rural communities. The expansion of the funding
for that and the purchases that were made and that were
provided were just enormous in helping us meet the need. In the
last year and a half, we have distributed 13 million pounds
worth of commodities, CSFP, and half of that, over half of that
went into rural communities. You can just see very easily the
effect that it has.
Additionally, the Farm to Food box, the CFAP program, was
very helpful. It was a new adventure for us. There were good
things out of it, and there were challenges with it, but that
alone provided eight million pounds of food in 2020 and 2021,
when there was just such an extreme need.
So us being able to utilize that food, utilize our 300
agencies--and actually out of our 300 agencies, over 90 of them
are TEFAP-eligible agencies. They have met all of those
requirements. To be able to partner with us, our local
communities, building their capacity, and then the financial
support for food from the Farm Bill truly makes a great
partnership, and it provides us with so much assistance that we
really--we must have it.
Chairwoman Stabenow. Thank you so much.
Mr. Hasten, in your testimony, you mentioned the unique
challenges that electric co-ops face in financing innovative
technologies and particularly compared to your for-profit
counterparts. What are some of the examples of the new and
cleaner technologies your electric co-ops would like to adopt
if they have adequate incentives, and how could RUS assist
cooperatives in adopting these new technologies?
Mr. Hasten. Thank you. We serve 74, 75 counties here in
Arkansas, but we really only serve one-third of the population.
I think that puts co-ops at kind of a natural disadvantage on
the cost of electricity.
As you are talking about moving toward cleaner electric
sources, really, here in Arkansas the technology of choice
would probably be solar. Wind is not a really good resource
here, and that is really kind of the game in town.
The way the tax credits work is if you put it in, right now
it is at 26 percent, but if you are a co-op you cannot get that
full value, so you have to go out and find some third party. A
lot of people that--I think you said earlier: If you make a
product, that is good. If you push papers, what are you really
doing? There is a lot of people that push papers, that siphon
value off of that, and so therefore, a co-op putting in solar
is at a disadvantage compared to a for profit company because
they cannot get the same advantage. That would be the same
thing, too, if you were to try to do storage.
There is a lot of solar and storage going in as we try to
supplement our diverse portfolio with these types of resources,
and so one place would be a direct pay system where co-ops
would have a very--it would be an equal playing field for us to
be able to use those technologies. Otherwise, our members pay
more for the same thing.
Chairwoman Stabenow. Great. All right. I understand
completely.
Mr. Cole, let me ask you, I was really pleased to hear you
talk about the Young and Beginning Farmers Conference. It
really sounds terrific, the AgHeritage conference that you had
earlier this year. I know that these types of initiatives are
really important for us, and that is one of the reasons in the
Farm Bill we have the Farming Opportunities Training and
Outreach Program, to reach out to new farmers and beginning
farmers. We have included veteran farmers in that as well,
which is very important.
Could you talk a little bit more about the conference and
how access to credit contributes to the success of these
farmers?
Mr. Cole. Yes. Thanks for the question and a very good one.
You know, obviously, we are very focused on our young and
beginning farmers. As we know, that is the lifeblood of the
organization, being a cooperative over 100 years.
We here in Arkansas, the three associations, co-op
together, and we have a conference every other year in Little
Rock. We bring in very good speakers and then to basically talk
about a variety of topics.
One of the main focuses, as you know, as agriculture
continues to evolve and the business model shifts, you know, it
is more intellectual-centric versus labor centric, like it was
over 100 years ago. We always say in the ag lending space,
those that generate--or, those that obtain the intellectual
capital will generate the financial capital. There is a lot of
education pieces to understand what the young and beginning
farmers are getting into, basically the job description if you
will, to give them a variety of resources on production,
finance, you know, legal, all these kinds of things there, and
we bring those to that.
Also, we are very big on peer groups. They get to come here
and through the whole State--they are from each area of the
State here, from poultry to crop to livestock to the timber and
everything, and they can also develop a peer group and continue
to build that relationship and to bounce things off. As you
know, in development, mentorship, information, everything.
The focus of the system is to be able to facilitate
knowledge and information because in our world it is this: If
we help young farmers make good decisions, guess what? We just
make good loans, and we have a future together. That is a major
focus on it, on the system as well as here in Arkansas, and it
will continue to be for the system. Again, it is the lifeblood
of the system.
Chairwoman Stabenow. Great. Thank you.
Ms. Bowles, you mentioned in your testimony the importance
of collaboration between the Federal Communications Commission,
the Department of Agriculture----
Ms. Bowles. Yes.
Chairwoman Stabenow.--the National Telecommunications and
Information Administration, if we are going to really have
rural high-speed internet like we need it everywhere.
During your time at the Advisory Committee at the FCC, what
did you see as the strengths of the USDA's broadband program,
and where should the agencies continue to improve?
Ms. Bowles. The USDA's strength--the USDA actually has
several strengths in their broadband program. One is the focus
specifically on rural communities and what rural communities
need.
Another strength is their mapping because they actually
would take people on the ground. They did not--the FCC maps,
which we know, are currently sort of sketchy because they are
based a lot on what providers say coverage is and they are
usually a year to 18 months behind. What USDA would do is they
would put boots on the ground and actually map coverage, and so
they have sort of an agency expertise around mapping that they
utilize to ensure that broadband was going to those that were
the most needed.
I think that to some extent USDA had taken the position
that they wanted to cover everybody before they improve some
people, and with the broadband goal post moving as much as it
does, that created sort of the sense of constantly catching up
within the USDA program because the FCC is moving the goal
post.
I think we have pretty much settled. I think NTIA has it
right. You know, 25/3, if you do not have that, you are
unserved. It is 25 Mbps down/3 Mbps up you are unserved. 100
Mbps down/20 Mbps up, if you do not have that, you are
underserved. Those definitions, I think, could be used in the
whole-of-government approach.
And from the mapping perspective, I think USDA can be
encouraged to consult with the FCC. They are currently--FCC is
currently putting together a broadband mapping fabric that is
supposed to be the definitive map. For that truly to be
definitive, then NTIA and USDA and the FCC need to take this
whole-of-government approach. It is really important in
broadband that we have a single map that everyone can go to and
say, yes, this is the map.
And that will not work unless USDA is consulting with the
FCC and saying, listen, this is what I know is going on in
rural America because that is not the FCC's focus. The way they
do their mapping is a little bit different from USDA. I think
USDA has a huge role to play with the FCC, particularly in
mapping, to get them to ensure that that map is truly accurate.
Chairwoman Stabenow. Great. Thank you. I agree.
Senator Boozman, I will turn it to you.
Senator Boozman. Thank you, Madam Chair.
Rhonda, the Farm Bill authorizes several commodity
distribution programs, like The Emergency Food Assistance
Program and the Commodity Supplemental Food Program. What has
been your experience with the programs? Do you have
recommendations on how we can improve them?
I would also note that about a third of your pantries use
the USDA programs, and I am impressed that you are able to
distribute across so many rural counties. Are there unique
challenges to the rural communities participating in the
programs, and if so, how could we update the programs to better
reach those areas?
I know that you have just got a lot going on with inflation
and this and that. It has got to be very difficult.
Mrs. Sanders. Thanks for that question. Yes, sir.
Obviously, the Foodbank has worked with the USDA programs for
years and has been a distributor of TEFAP product, a
commodities, as well as CSFP, and as I mentioned, the Farm to
Family food boxes recently. It is clearly 20 percent to 30
percent of our inventory and distribution in a normal year.
In the pandemic, in the height of the pandemic, USDA
product became 60 to 70 percent what we had to distribute. We
worked closely with it.
The challenges that are facing rural Arkansas and any rural
community is the capacity and the infrastructure that is there.
There are very steep requirements to be a TEFAP commodity
distribution point. Looking toward the ways that some of those
can be streamlined, can be made easier, there could even be
additional capacity dollars when you are serving high rural
communities because there are times that we have to just kind
of take it over and travel thousands of square miles during our
year to make sure that that food gets there.
That is probably the No. 1 challenge that we have with
operating the USDA programs within our service area. It is
having those distribution points. I would love to suggest those
dollars be considered as some extra things for rural
communities within it.
Obviously, the ability to get food right now is at the top
of my personal list, and I want to encourage that we continue
to maintain and increase the dollars that are there to purchase
food because it is a lifeline, it is high quality, highly
nutritious food, and it is much needed.
Senator Boozman. Very good. Thank you so much, and we do
appreciate all of your hard work.
Mrs. Sanders. Thank you.
Senator Boozman. Buddy, you noted in your testimony RUS has
been an important partner to our Arkansas electric co-ops over
the decades. As we continue to exercise oversight of USDA while
beginning discussions about what the next Farm Bill should look
like, can you talk a little bit more about which programs under
USDA Rural Development you believe are the most effective and
which programs need improvement?
Mr. Hasten. Absolutely. I think RUS has been very
effective. It has been a really great program for rural co-ops
all across America. It is used widely. As I said in my oral
comments, I think the fear that it may be unavailable for those
funds for a wide diversity of generation sources for us is a
fear we have, so that is why we would advocate to keep that
program open.
You know, we focus on reliability and affordability, and we
are not-for-profit. We really do try to keep energy affordable.
That program is really good.
As far as rural broadband, the ReConnect program, I think
that program is really good in the sources of funding and I
think the focus on trying to get broadband to rural America. I
would say that program probably is one that could be looked at.
It really, I think, was set up more for a telco business
structure, not an electric cooperative business structure. It
is really hard for co-ops to use it, I think.
Senator Boozman, I think there has been two co-ops in
Arkansas that applied and were denied. You know, it requires a
brand new environmental review for existing infrastructure. A
lot of times we are just putting fiber up on existing
infrastructure we have to get it to the rural members. A
requirement that you have to use--you cannot use more than 50
percent contractors. There are just certain rules in that
program that are hard for a small rural co-op.
We have got people, I think, in Arkansas co-ops ready to do
projects, but they are really just waiting on the programs and
in some cases being denied the programs.
I think the reality is rural America needs broadband
sooner, not later. I think that would be a program I would
really advocate taking a hard look at and seeing if it could be
readjusted a bit and streamlined so that some of these types of
rural co-ops could use the program and get that money flowing
the way it is intended to flow.
Then I would say the RESP program, great program. It is
used, and we really appreciate the funding that goes into that
program.
Senator Boozman. Very good. Thank you.
Dennis, RUS has been an important partner also to rural
water for many years. Looking at the Farm Bill, what
recommendations do you have, wearing a different hat, regarding
programs under USDA Rural Development? What specific RD
programs do you believe are most effective, and again, which
ones do we need to work on?
Mr. Sternberg. Well, as far as Arkansas Rural Water
Association, the loan and grant program to the water systems is
essential. The utilities need that, and that has always been
there, and I thank the Ag Committee for doing that.
With our programs, the technical assistance side provided
to water and wastewater systems every day across the State and
across the Nation, continued support of that and making--
potentially, like the wastewater program I mentioned in my
verbal statements or testimony, extend it out to a five-year
like the Circuit Rider is, the contract. That would be
essential to help for stability.
One of the things we are finding--and I heard earlier
today--is just hiring good people. It is getting harder and
harder. You know, especially in the environment right now, when
we pay mileage to--we do not furnish vehicles to all of our
staff. We do to part of them. You are paying a mileage rate,
and the fuel costs are going way out of sight, and we are
limited on what we can pay based on the Federal Government. I
did convince my board yesterday in a full board meeting to
subsidize that mileage rate to help the employees. Those types
of programs.
Emergency response is crucial to Arkansas Rural Water, and
I am very proud of what we have done over the years. I served
four years as the Chairman of the National Rural Water
Association's Emergency Response Committee. We have been to
Florida, Louisiana, going in and assisting, not taking all our
resources. We have big mobile generators, trucks, trailers. We
have a vac truck, sewer cameras. We take whatever is needed and
personnel down to these States. It has been effective because
they need help immediately.
I mean, it is something that somehow or another we need to
look at it real close in the Farm Bill and see how we could
tweak that to get something in there to help.
Senator Boozman. Very good.
Mr. Sternberg. Thank you.
Senator Boozman. Thank you.
Greg, in your testimony, you talked about the importance of
crop insurance. Can you tell us about the role it plays during
the underwriting process and how it impacts the type and size
of loan a producer might qualify for?
Mr. Cole. Yes, obviously, crop insurance is a key risk
management tool and especially in the U.S., and we really work
that in the system. You know, I think when you go and mentioned
earlier in regions some of it is more varied than others. You
know, in the Midwest, it is absolutely critical. You know, when
we make loans in production, you know, the risk is they do not
get the yield or they do not get the price. A revenue-type
product is a good, lower safety net in that. It is very
critical.
Now here in the Midsouth, as you know, because the biggest
risk is obviously production, we have irrigation. It is a
little bit flip-flop and a little bit about those title--you
know, the Title I. You know, the PLC payments are really
vitally important here. That is in combination with a crop
insurance.
So, yes, it is very important because a farmer needs a
safety net, the ag lender, because basically the crop insurance
basically is used as collateral to repay the loans there
because it covers those if you have a revenue structure there.
We really support--I think the crop insurance program has
worked categorically. It does work admittedly better in the
Midwest than it does here, and that has been identified, but it
is still important, especially for replant and things like
that. When you couple crop insurance in with really the
profit--the PLC payments here, you have got a real good, solid
foundation to cover replant risk there as well as, you know,
market adjustments.
That adds to the other risk that--you know, the other big
investment, obviously, and that is when we finance a lot of the
irrigation systems because, again, that is a big risk
mitigator.
Senator Boozman. Very good.
Elizabeth, in the latest round of funding for the ReConnect
broadband program, USDA made several changes to the
requirements from earlier rounds that are likely to favor one
technology solution over another and allow for potential awards
to go to areas that already have high-speed broadband. As we
look to the next Farm Bill, what improvements can be made to
USDA broadband programs to ensure that we are serving all rural
communities with high-speed broadband while also being good
stewards of taxpayer dollars and avoiding overbuilding?
Ms. Bowles. One of the things that is floating around now
sort of at the national level is that we need to have this
fiber-proof network--this future-proof network which is going
to be predominantly fiber, and that is coming from NTIA and
other agencies that have singular money that they are putting
in.
Yes, the middle mile is very important, and fiber is
oftentimes the best solution for that. When we are talking
about rural America and you are talking about these extremely
sparsely populated areas, fiber may be prohibitively expensive.
As I said in my testimony, you will run out of money before you
serve everybody. It is very important for the last mile
programs like ReConnect that we not mandate a technology like
fiber or, for that matter, a fiber proxy like 100 Mbps up/100
Mbps down, which can only be done fiber.
It is important that we maintain this technology neutrality
because there are a lot of technologies that can deliver 100/
20. If the ultimate goal is gigabit everywhere, the Farm Bill
has the opportunity to reach that over a pathway of time
because you have every five years you renew. The Farm Bill can
adjust for technology.
I have a beef with future-proof anyway because nothing in
the internet is future-proof. I mean, in the 90's, we thought
DSL was going to be the end of it. A lot of rural America has
DSL, and they cannot upload their, you know, data at the end of
the day.
We do not know that fiber is future-proof, and we do not
know that other technologies are not going to emerge. I think
it is very important that the Farm Bill not fall into that trap
and that the ReConnect program, in particular, maintain
technology neutrality and focus on can they get 100/20 because
really that is it, if they can get 100 Mbps down/20 Mbps up,
with the understanding that we are on a pathway to better
speeds, we are on a pathway to different technologies.
The only other thing I will say toward that is if we were
very serious about this and talking about, you know, food
security being a national security issue and talking about
resiliency and disaster recovery, we would be deploying both
fiber in the ground and fixed wireless in the air because one
is down, the other one is up. I think there is no answer of
which one of those technologies should be going first except
that we have an economic incentive to make sure that more
people get served, but I think we actually need both of those
things.
Senator Boozman. Thank you.
Thank you, Madam Chair.
Chairwoman Stabenow. Well, thank you very much. Thank you
to all of you. This has been terrific, to be able to hear your
insights and suggestions, and we certainly will put them to
good use.
At this point, let me thank--as we conclude the hearing,
let me thank again my good friend, Senator Boozman, for the
opportunity to be here with you today, and also our dedicated
staff. I know that we both agree that the folks that do the
hard work, not only on the hearings but every single day, are
people that we are very grateful to for their expertise and,
frankly, their dedication to all of these issues.
There is no question that our farmers and ranchers can meet
the moment if given the right tools and the right conditions,
and that is really what we strive to do through the Farm Bill
is to create those opportunities.
We want to thank all of the witnesses. We want to thank
everybody who has come to be a part of this and listen today.
We need you to stay engaged and stay at the table to help us
move this process forward. The voices that come to the table,
the more we can have a big, broad coalition of food and
agriculture and rural communities working together the better
success we will have at getting this done. Again, I want to
thank you for the chance to be here with all of you today.
The record will be open for five business days for any
members that wish to submit questions or statements, and at
this moment the hearing is adjourned.
[Whereupon, at 12:28 p.m., the Committee was adjourned.]
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A P P E N D I X
June 17, 2022
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