Some people spend first anniversaries looking at all the paper products they’ve received on their paper anniversary.
Secretary of Agriculture Sonny Perdue spent the first anniversary of his swearing into office April 24 in front of the Senate Agriculture Committee at a hearing on “The State of Rural America.”
While he received universal praise for his tenure so far on some issues, other issues—such as declines in net farm income and trade controversies within the Trump administration—have landed squarely in Perdue’s lap, particularly on the trade issue and more specifically on multi-lateral trade agreements such as the North American Free Trade Agreement.
In his opening statement, committee Chairman Pat Roberts, R-KS, told Perdue that while he was pleased the secretary had been visiting many states and U.S. Department of Agriculture field operations throughout the year, he wanted the secretary to be a stronger advocate for agriculture to the administration.
“Every trade agreement I’ve ever been associated with is over criticized and oversold,” Roberts said, “but since 1994, when NAFTA went into force, the value of U.S. agricultural exports to Canada has increased by 265 percent, and to Mexico by 289 percent. It makes sense to take a look at agreements like NAFTA to make sure they are functioning, as they should be over two decades later.
“It also makes sense to work to hold trading partners like China accountable to their WTO commitments. But trade actions like those we have seen on steel, aluminum, washing machines and solar panels also put the U.S. at risk of retaliatory measures that harm jobs, not only to agriculture, but across all sectors.”
Doing some harm
Roberts told Perdue that history has shown that agriculture often bears the brunt of that harm.
“I hope that the United States and China can work aggressively to resolve these issues before we enter a full blown trade war,” Roberts said. “Our producers need a trade policy that looks forward. We must protect and develop our existing markets. And, we need new markets to sell what we grow. It is absolutely critical that the administration support our effort with trade policies that grow and strengthen markets all around the world.”
Committee Ranking Member Debbie Stabenow, D-MI, added, “Unfortunately, the struggles with low commodity prices have been compounded by uncertainty around trade. And, I share Chairman Roberts’ concerns on this. I believe we need tough trade enforcement when countries like China break the rules—we must do everything we can to ensure there are no unintended consequences for our farmers.
“The impact of retaliatory tariffs would be felt by farmers directly and indirectly. It doesn’t just impact Washington State when the state can no longer ship apples to China, it makes it harder for Michigan farmers to market their apples at a price that keeps them in business.”
Stabenow also went after Perdue over Trump’s decision to double down on proposed budget cuts that she said would hurt agriculture and rural families.
“Mr. Secretary, at your confirmation hearing, you vowed to be a strong and tenacious advocate for rural America in this administration. Maybe we need to get you a megaphone, because not everyone in the administration seems to be getting the message that we need to do more to improve the quality of life in rural America—not less.”
Congress recently voted to spend $600 million to expand high-speed internet, and added over $1 billion for rural water infrastructure improvements. The bill also made a long-sought correction to the U.S. Forest Service budget to assist in fighting wildfires.
“On top of that, Congress worked on a bipartisan basis to give the USDA important resources to fill vacant positions at the Department, which will improve customer service. I urge you to use all of these tools to ensure our farmers and communities are getting the service I know you are committed to provide,” Stabenow said.
Stabenow said she appreciates Perdue’s advocacy within the administration, but she noted that the White House had proposed budget cuts Congress rejected and said, “maybe we need to get you a megaphone because not everyone in the administration seems to be getting the message that we need to do more to improve the quality of life in rural America—not less.”
Later in the hearing, the secretary’s cousin, Sen. David Perdue, R-GA, said the secretary didn’t need a megaphone.
More than a rough patch
Perdue, for his part, kept his remarks brief, saying that agriculture has more than “hit a rough patch. It seems like the whole farm,” acknowledging the combination of poor commodity prices and trade disruptions.
On questioning from Roberts, Perdue said he hoped to see a successful conclusion of negotiations on a revised NAFTA shortly. He also acknowledged the administration’s effort to fight intellectual property theft by the Chinese government has led to retribution via retaliatory tariffs on agricultural commodities and Roberts’ comments that trade is better than aid for farmers.
While not mentioning tweets and other off-the-cuff comments made by Trump on trade per se, Roberts told Perdue that in negotiations any sort of remarks are market sensitive. Roberts told Perdue of a recent incident when Trump announced tariffs on Chinese solar panels and washing machines while China retaliated with tariffs on sorghum.
“We had the Kansas Sorghum Producers in my office the day that happened,” Roberts said. “In that day, with that particular market, a farmer indicated to me he had just lost 80 cents on the dollar.
“That’s the kind of thing that has real consequences. I think you could even say that in some cases, we’re using farmers, ranchers, growers as a pawn with regards to get from here to there on a trade agreement.”
Trump’s style “unique”
Perdue admitted Trump has a “unique negotiating style. We’ll all acknowledge that. In some ways, he’s been successful.”
Perdue continued, “farmers have a right to be legitimately concerned, but the president looked me straight in the eye and said ‘Sonny, I know that farmers are worried about what we’re doing, but you tell them that I’m not going to let them be the casualties in this trade dispute.”
Other comments to Perdue centered not only on trade, but also on ethanol issues. Sen. John Thune, R-SD, said “I’d just like to go on the record in opposition to ad hoc price loss payments to producers who suffer economic loss from trade sanctions, tariffs and loss of export markets due to our trade policies. Farmers and ranchers need and want their income from the marketplace, not market loss assistance payments from the federal government. And so, I hope that we are working aggressively to open up more trading opportunities for American agriculture for our farmers and ranchers.”
Sen. Amy Klobuchar, D-MN, questioned Perdue about his views on the Renewable Fuel Standard and small refinery waivers. Klobuchar, along with Sen. Chuck Grassley, R-IA, recently led a bipartisan group of 13 senators urging Environmental Protection Agency Administrator Scott Pruitt to cease issuing so-called “hardship” waivers exempting obligated parties from the RFS.
“The Renewable Fuel Standard is incredibly important to farmers and rural communities in Minnesota. Recent reports indicate that dozens of small refinery waivers have been granted to large refining companies, effectively reducing the 15 billion gallon target for the Renewable Volume Obligations. Sen. Grassley and I have expressed our deep concerns about these actions,” Klobuchar said. “What used to be a small number of waivers has now grown to an unprecedented number, a concerning trend that threatens to undermine the RFS.”
Perdue said he believes the waivers have led to a reduction in the use of corn ethanol, but reminded the senators that his influence is limited to talking to Trump and Pruitt.
Roberts got in the last question for Perdue, asking if he’d commit to support efforts to have USDA run the National Bio and Agro-defense Facility under construction in Manhattan, Kansas, rather than the U.S. Department of Homeland Security.
Perdue said USDA should run NBAF in consultation with DHS.
“My vision is that the core competency of USDA’s Agricultural Research Service on an ongoing basis is more suited to operating NBAF, from research and development of new vaccines to containment of some of the worst diseases known to man,” Perdue said.
Larry Dreiling can be reached at 785-628-1117 or [email protected].
