Key Issues Addressed by Vilsack at House Ag Appropriations Subcommittee Hearing

House Ag Appropriations Subcommittee hearing on USDA’s FY 2025 budget requests. The Subcommittee heard from USDA Secretary Tom Vilsack regarding USDA’s fiscal year (FY) 2025 budget request, totaling $25.1 billion, representing a $2.2 billion increase from the previous year.

WIC: Highlighting the significant increase in funding for the Women, Infants, and Children (WIC) nutrition program, Subcommittee Chairman Andy Harris (R-Md.) emphasized the program's bipartisan support and its importance in providing nutritious support to mothers, infants, and children. However, he raised concerns about the accuracy of USDA's projections regarding WIC participation and food costs, particularly considering recent claims about decreased inflation and food prices. Harris questioned the necessity of the proposed funding increase for WIC, citing declining participation rates and conflicting data on food costs. He wants to understand the rationale behind the Biden administration's budget requests.

Rep. Rosa DeLauro (D-Ct.) told Vilsack that she was “intrigued by the new proposal to backstop WIC funding so we do not face nutrition assistance cliffhanger like we just went through.”

Rep. Dan Newhouse (R-Wash.) raised the issue of shrinkflation, citing an example of reduced milk carton size impacting compliance with WIC rules. He asked whether the WIC food package provided flexibility to cover smaller containers. Vilsack indicated that there may be flexibility in certain circumstances and offered to look into the specific issue raised by Newhouse.
CCC: Harris expressed apprehension about the potential misuse of Commodity Credit Corporation (CCC) funds to advance political agendas not authorized by Congress. Harris said he is concerned that the CCC “continues to be treated like a slush fund to advance political priorities not directed by Congress.” He also noted that he has read Vilsack’s comments in news articles over the past few weeks “suggesting that you can use CCC funds to help farm safety net programs outside of the regular farm bill process,” adding he is “perplexed as to how USDA would be able to do this, as establishing reference prices and farm programs is done by Congress, the Legislative branch, not the Executive branch.” He said he hoped his colleagues at the House and Senate Ag Committees can complete a farm bill this year, “but if not, that does not give USDA the green light to start raiding the CCC to de facto set up new programs not authorized by Congress.”

Vilsack told Harris he wants “to make sure that you and I have a meeting of our minds on the utilization of CCC as it relates to the farm bill. I never suggested nor did I ever say that we would be using the CCC outside the scope of farm bill discussions and negotiations. What I did say was, in order for us to have a farm bill, it's going to be necessary for members of the Ag Committee to be creative how they can use the resources within the CCC at their instruction and direction to be able to provide the relief and assistance they're looking for to bolster our safety net. That's what I said, that's what I meant, and I just want to make sure the record is clear about that.”
SNAP: Harris stressed the importance of adhering to legislative directives and urged honest discussions on federal subsidies for “unhealthy food in the SNAP program.” He detailed that over the past 20 years, “multiple cities and states have asked USDA for the ability to restrict SNAP purchases of sugary drinks, but each time those requests have been denied. As we work through the FY '25 process, it's important that we look for ways to best return SNAP, the largest food assistance program in America, back to its original purpose of advancing the nutrition needs of participants, not providing empty calories, which in fact could be potentially harmful to long-term health.”

Harris noted that he is a strong supporter of establishing a SNAP pilot program that restricts unhealthy food or beverages from being purchased with SNAP benefits. He said he was disappointed the FY 2024 Appropriations bill did not include funding to implement a small voluntary pilot program to see how it might help with health outcomes and prevent chronic disease. He asked Vilsack if USDA has the authority to approve a demonstration project, which would be similar to a pilot, that allows states to restrict certain foods or beverages. Vilsack said, “We'd have the authority to work collaboratively with the state, assuming that the process contained proper evaluation. One of the big problems, Mr. Chairman, has been the lack of evaluation in what has been presented to us by states and cities in terms of the programs that they want to adopt. There's a tendency to think this is a relatively simple process… But we would have the authority to do it. But we'd want to make sure, if we did it, that there would be a strong evaluation component to it.”

Harris said he was glad to hear that USDA has the authority to approve a pilot program, but told Vilsack that “since your first appointment as Secretary of Ag, the obesity rates among U.S. adults have increased by almost 9%, from 33.8% in 2007, 2008, to 42% of Americans in 2017, 2018. About half of all Americans now have one or more preventable chronic disease, most of them diet related or linked to diet in some cases. So, given this rise in obesity rates, is there any evidence that the SNAP-Ed and the Healthy Incentive programs have been effective in having reduced obesity among SNAP participants?” Vilsack said there is research to indicate that “the availability of SNAP does result in healthier choices being made by SNAP families.”

Harris also said that along similar lines is the Summer EBT program for children is now permanent. “States operating the Summer EBT run the SNAP model. So again, allowing access to sugary beverages, salty snacks, the whole deal, but interestingly, Indian tribal organizations operate the WIC model. So as I understand it, families receiving Summer EBT under the WIC model are purchasing WIC approved foods, which we both I think recognize are generally much more nutritious foods than the wide variety of foods available under SNAP. Do you think that recipients could benefit if states operate a WIC model under the Summer EBT program like tribal organizations do to ensure that we're providing kids with healthy food during the summer? Just like USDA does for instance, during the school year and the national school lunch and school breakfast programs? Vilsack responded: “I think it's more complicated than that.” Vilsack added: “There's a fairness and a consistency issue. If indeed the goal here is for taxpayer dollars to be directly linked to more nutritious decisions, are you going to make that same decision for a farmer emergency relief? A farmer gets emergency check from the government, cashes it, goes to the grocery store. Are you going to restrict him from — why not? Fundamentally, that's the issue. It's absolutely the issue.” Harris countered: “Mr. Secretary, the difference is we're not buying food for the middle-class people. We're buying food…” Vilsack interrupted saying, “But you are, absolutely you are if you get any federal assistance.”

Farm income: Ranking Subcommittee member Sanford Bishop (D-Ga.) noted that in 2022 when net cash farm income reached a record high at over $200 billion, 13% of commercial farms, 50% of intermediate farms and 63% of resident farms had negative farm income. He that Vilsack’s prepared remarks mentioned several programs that help grow markets for American farmers that receive mandatory funding. Bishop asked: “How can we on the Appropriations Committee support and grow the farm economy on the discretionary side of the budget?” Vilsack quickly answered, “Continued support for local and regional food systems. The reason being that when farmers are operating under the normal food system, they get roughly anywhere from $0.15 to $0.20 of the food dollar. When they sell locally directly to their consumer, they get anywhere from $0.50 to $0.75 of the food dollar. So, to the degree to which you can continue to support local and regional food systems and the programs that are already in USDA, supporting our processing initiative, for example. Continuing to support renewable energy production. Why? Because it's an opportunity for a new commodity, a new stream of income for producers.” Vilsack added are the transitioning to more renewable sources of energy. “Farmers have the ability to provide excess energy and therefore additional income. And finally, making sure that we continue to support the conversion of agricultural waste into a wide variety of bio-based products, everything from sustainable aviation fuel to bioplastics and everything in between.”
Aid to cotton and peanut growers: Rep. Bishop said that he is hearing from a lot of peanut and cotton growers from the southeast as well as agribusiness owners and bankers, that farmers are struggling financially. “Much of it is due to the dramatic increase in farm input costs, high interest rates, weak exports. And as you know, the financial situation on the farm impacts many aspects of the rural community. With the farm bill not yet in place for the 2024 crop year, would you support a one-time payment to peanut and cotton producers to help them until we can get the farm bill in place for the '25 crop year?” Vilsack said he would work with Bishop’s staff to see what might be possible. “I would say that we are continuing to get resources out under the emergency relief program. There are also additional programs and additional opportunities for additional assistance for your producers, in addition to or in lieu of a single payment,” Vilsack added. Bishop then noted that an aid payment was done “previously for rice producers, I think for the 2022 crop, through an appropriations bill.” Vilsack acknowledged that occurred but noted “we had to give up something in order to be able to finance the $250 million that went to rice producers. I'm not sure what you're willing to give up or what members of this Committee are willing to give up or what I'm willing to give up.”
Aid to California dairy producers: Rep. David Valadao (R-Calif.) raised concerns about the lack of assistance provided to California's dairy industry following flooding events in the Central Valley. He compared the swift action taken by USDA under then Secretary Sonny Perdue to aid Puerto Rico's dairy industry after hurricanes in 2017 with the absence of similar support for California's producers. Valadao emphasized the significant impact of the flooding on California's dairy industry and questioned why dairy was excluded from assistance programs despite being the largest dairy-producing state in the U.S. He highlighted the challenges faced by farmers due to flooding and the need for assistance in feed losses, livestock relocation, and shelter provisions.

Vilsack clarified that any actions taken by USDA must adhere to guidelines set forth in the CCC charter and cannot exceed discretionary authority. Valadao argued that previous secretaries had provided assistance without challenge and questioned why similar discretion was not exercised in this case. Vilsack explained that while USDA uses the CCC to assist farmers, it operates within the boundaries of the charter to ensure compliance. He cited examples of CCC funds being utilized for various agricultural programs but reiterated the need to follow established guidelines.

Valadao expressed dissatisfaction with USDA's response, citing concerns about declining commodity prices and the lack of evidence of assistance provided to farmers. He urged for precedent-based assistance for California's dairy industry and criticized USDA for not addressing the specific needs of dairy farmers affected by the flooding.
Biofuel programs; GREET model; SAF: Rep. Ashley Hinson (R-Iowa) addressed Vilsack regarding the impacts of biofuels on the economy and the importance of supporting American farmers. Hinson expressed concerns about the revisions to the GREET model and its potential effects on Iowa farmers. She sought an update on the status of the revision and emphasized the need to ensure that scientists are driving the review process.

Hinson told Vilsack: “As a fellow Iowan, you know the impacts of the biofuels industry on our economy, the importance of supporting American farmers as they're growing crops that feed and fuel the world and the administration's revisions to the GREET model which will affect, of course, the value that Iowa farmers are able to receive for their products is absolutely critical for industry and for long-term. And it's really important that Iowa farmers are recognized not only for their conservation practices, but I certainly appreciate your work to advocate for our farmers as this model is being revised. So, I'm wondering… if you can provide an update for us on the status of that revision for GREET and thoughts to ensure that scientists are driving that review of GREET?"

Vilsack said “there are two tax credits that are involved here at 40B and 45Z. Critically, we want to make sure the signals are properly sent on 40B, so first and foremost was getting an acknowledgment and appreciation for the use of the GREET model, which we've been able to accomplish. And now is making sure that the Treasury Department and others are fully aware of what steps farmers do in fact take to be more sustainable in the production of corn, soybeans as a feedstock for sustainable aviation fuel. I'm confident that there's a recognition that no till cover crops, energy efficient fertilizer are the kinds of things that ought to be included as factors to calculate whether or not a particular sustainable aviation fuel meets the threshold of more than 50% improvement. So, I'm confident we're going to send the right signal. And then I think there is an opportunity for a much broader conversation on 45Z, to see whether or not there are other aspects of climate smart agriculture or sustainable agriculture that ought to be considered. I think the right signal is going to be sent. I think there's a recognition that farmers are going to play an integral role in the development of this fuel.”

Hinson also raised concerns about the availability of crop protection tools and potential confusion caused by conflicting state labels for pesticides. She emphasized the need for clarity and consistency in pesticide labeling to prevent confusion among users and products. Vilsack acknowledged the issue and highlighted the challenges posed by inconsistency and lack of clarity. He expressed openness to potential solutions but noted the challenges posed by legal interpretations.

Hinson indicated her office's intent to follow up with specific concerns regarding the processing of paperwork for programs like REAP (Rural Energy for America Program). She emphasized the importance of timely processing to ensure effective utilization of such programs.
H-2A program: Rep. John Moolenaar (R-Mich.) expressed concerns about the challenges faced by small farms, particularly regarding the rising labor costs under the H-2A program. He highlighted the strain that this places on farmers in his district, many of whom are facing financial hardships and potential closure due to unsustainable wage rate increases. Moolenaar proposed the Supporting Farm Operations Act to pause these increases for two years and provide relief to struggling farmers. However, Vilsack emphasized the need for broader systemic reforms, suggesting that freezing wage increases alone may only delay inevitable problems. The discussion became contentious as Moolenaar pressed Vilsack on his actions to support American farmers and address the Department of Labor's role in imposing escalating labor costs. Vilsack defended the use of data-driven decisions but faced criticism from Moolenaar, who argued that the current approach threatens the viability of American farms. Despite the heated exchange, Vilsack reiterated his commitment to advocating for farmers and farm workers, emphasizing the importance of finding solutions that benefit both parties. However, Moolenaar remained skeptical and urged Vilsack to take more decisive action to address the challenges faced by American farmers.
Farm loss and land conversion: Rep. Newhouse expressed concerns about the challenges faced by rural communities and family farms, particularly in light of the rate at which farms are disappearing. He highlighted the adverse wage rate as one of the significant costs burdening farmers and emphasized the need for action to rein in labor costs. Vilsack acknowledged the long-standing issue of farm loss and land conversion. Vilsack detailed that “since 1981, the U.S. has lost 544,000 farms. That is the same number of farms that exist today in North Dakota, South Dakota, Minnesota, Wisconsin, Illinois, Iowa, Nebraska, Colorado, Missouri, and Oklahoma. We've lost 151 million acres of land that was in farming that's no longer in farming. That's the land mass of Florida, Georgia, South Carolina, North Carolina, Maryland, and most of Virginia. So, this is not a new issue.” Vilsack attributed this trend to a system focused on productivity rather than income sources, leading to income concentration among a small percentage of farms. Vilsack stressed the importance of creating additional revenue streams for farmers to improve their financial stability. Vilsack urged Congress to pass immigration reform, specifically the Farm Workforce Modernization Act, to address labor challenges in agriculture. He emphasized the need for bipartisan cooperation and criticized political obstacles hindering the passage of crucial legislation. Newhouse affirmed efforts to advance the Farm Workforce Modernization Act in both the House and Senate, acknowledging the difficulties in navigating the legislative process.

Threats from China: Rep. Hinson expressed concerns about the safety of the U.S. food supply in the face of potential threats from adversaries like the Chinese Communist Party (CCP). She highlighted the need for better coordination and updated procedures to monitor foreign agricultural land purchases, referencing a recent report from the Government Accountability Office (GAO). Vilsack acknowledged the progress made in implementing GAO recommendations, including improved coordination with the Committee on Foreign Investment in the United States (CFIUS) and efforts to update the Agriculture Foreign Investment Disclosure Act (AFIDA) handbook. He emphasized the challenges posed by the decentralized nature of real estate transactions across the country and the need for ongoing improvements.

Hinson also raised concerns about the heavy reliance on China for critical agricultural inputs such as vitamins B6 and C. Vilsack underscored the importance of reducing reliance on foreign adversaries for key inputs like fertilizer, while acknowledging the delicate balance required in maintaining trade relationships with countries like China, which are significant customers for American agricultural products.

In response to questions about preventing supply chain bottlenecks and incentivizing domestic production, Vilsack suggested leveraging tools like the tax code, rural development programs, and business incentives to encourage investment in domestic production facilities and enhance the business environment for new ventures.

Their discussion highlighted the complex interplay between national security concerns, trade relationships, and domestic production capabilities in ensuring the safety and resilience of the U.S. food supply chain.
Summer EBT program: Rep. Representative Debbie Wasserman Schultz (D-Fla.) expressed concern over Florida Governor Ron DeSantis and other governors' decisions to opt out of the Summer Electronic Benefit Transfer (EBT) Program, which provides additional food assistance to families with children during the summer months. Vilsack discussed the importance of the Summer EBT Program in addressing food insecurity, noting that it benefits around 20 million children and their families across 37 states, territories, and tribes. He highlighted the significant economic impact of the program, estimating that Florida alone could see nearly $1 billion in economic activity. Vilsack emphasized the positive effects of improved nutrition on children's health and academic performance. Regarding the administrative match required for states participating in the program, Vilsack explained that it varies but is not prohibitively expensive for any state, including Florida. He underscored the affordability of the match compared to the benefits provided to families.

Shifting the discussion to the citrus industry in Florida, Wasserman Schultz raised concerns about citrus greening and its impact on citrus production in the state. Vilsack acknowledged the progress made through programs like the Citrus Health Response Program in developing therapies to combat citrus greening but emphasized the need to reduce the costs associated with these treatments to make them more accessible to producers.
Drought in Louisiana: Rep. Julia Letlow (R-La.) addressed Vilsack regarding the severe drought that has impacted farmers and ranchers in her state. She highlighted the significant damage caused by the drought to Louisiana's agriculture sector, particularly mentioning the crawfish industry, which is a vital component of the local economy.

Letlow expressed concern that despite the disaster declaration triggering certain assistance programs like the Livestock Forage Program, there are still shortcomings in providing adequate safety nets for crops and livestock affected by adverse weather conditions. She specifically mentioned the lack of support for the crawfish industry, which has suffered greatly due to the drought.

Letlow urged Vilsack to consider drought as adverse weather for farm-raised fish and to provide relief to crawfish farmers who are struggling to survive. She referenced language included in the final fiscal year 2024 appropriations bill directing USDA to take action in this regard.

In response, Vilsack expressed willingness to work with Letlow and her team to determine if USDA has the discretion to provide assistance to the crawfish industry in light of the drought. He emphasized the importance of ensuring that all legal requirements are met before committing to any action. Vilsack assured Letlow that there is no intention to delay the process and pledged to provide a response as soon as possible.

Letlow shared testimonials from her constituents, highlighting the inadequate relief provided by the 2022 Emergency Relief Program (ERP) compared to the losses incurred. Vilsack responded by explaining that while nearly 2,000 farmers in Louisiana received more assistance under the revised program, limited resources allocated by Congress led to reduced coverage compared to previous years. He emphasized the need for additional funding to adequately address losses. Letlow expressed skepticism regarding the fairness and equity of the relief distribution, particularly for small to medium-sized family farms. She questioned the decision-making process behind allocating assistance and suggested that more equitable solutions should be explored.

Vilsack defended the program's administration, suggesting that some losses might have been covered by crop insurance, thereby reducing the need for additional assistance. He reiterated the importance of providing adequate resources to support farmers facing financial challenges.

Letlow further emphasized the need for USDA to focus on providing agricultural support and improving the timeliness of program administration. She requested a comprehensive plan from the department to address these issues. Vilsack expressed willingness to support farmers and enhance income opportunities but seemed unsure about the specific timeliness problems mentioned by Letlow, who expressed dissatisfaction with the responses provided by Vilsack regarding the allocation of relief and the need for a comprehensive plan to address timeliness issues.
Climate change mitigation: Rep. Lauren Underwood (D-Mass.) asked Vilsack about the impact of budget cuts on agricultural programs, particularly those related to climate change mitigation and support for tribal communities. Underwood began by highlighting the role of farmers in combatting the climate crisis, emphasizing the importance of programs like the Conservation Stewardship Program (CSP) in incentivizing climate-friendly agricultural practices. She expressed concern over the House Republicans' decision to include a $30 million rescission from the Natural Resources Conservation Service (NRCS) budget, which could hinder the effectiveness of CSP bundles and USDA's ability to assist farmers. Underwood stressed the need for outreach efforts to increase farmers' awareness of and participation in conservation programs. She commended USDA's ongoing outreach initiatives but urged for additional resources to expand these efforts further.

Vilsack reiterated the importance of fully staffing the NRCS to provide technical assistance to farmers interested in adopting climate-smart agricultural practices. He emphasized the complexity of available conservation options and the role of NRCS staff in guiding farmers through the decision-making process.

Underwood also raised concerns about the underfunding of the USDA's Office of Tribal Relations. She questioned how the office plans to sustain its work with limited resources and highlighted the potential negative impact on tribal communities if funding remains insufficient. In response, Vilsack acknowledged the challenges posed by budget constraints and assured that USDA would prioritize efforts to support tribal communities despite funding limitations.
Shrimp industry; foreign animal diseases: Rep. Jerry Carl (R-Ala.) discussed with Vilsack the challenges faced by the domestic shrimp industry and the need for support in mitigating risks related to foreign animal diseases. Carl noted concerns about the influx of foreign shrimp in the U.S. market, which has adversely affected domestic shrimp producers in his area. He acknowledged the importance of Section 32 purchases in providing relief to the domestic shrimp industry but emphasized the need for further support, such as adding domestic shrimp to the USDA food available list, particularly for programs like the National School Lunch Program. In response, Vilsack explained that USDA considers market demand, supply availability, and cost implications when exploring the addition of new items to the food available list. He encouraged stakeholders like Carl to provide evidence of demand from school districts or regions, which would trigger a review of the potential market and supply.

Shifting the focus to animal disease prevention, Carl expressed concerns about the risks posed by foreign animal diseases such as foot-and-mouth disease and questioned USDA's strategy for addressing these challenges. Vilsack outlined the USDA's process for ensuring that importing countries meet or exceed U.S. standards for animal health and safety. However, he acknowledged that budget constraints might affect USDA's ability to fully support state cooperation agreements for animal disease prevention.
Food as medicine; ag trade with Cuba; urban ag: California: Rep. Barbara Lee (D-Calif.) discussed several topics with Vilsack, including food as medicine, agricultural trade with Cuba, and support for urban agriculture. Lee began by highlighting her efforts to scale up the Food as Medicine initiative, which integrates food-based interventions into healthcare to address food and nutrition insecurity. She inquired about USDA's role in improving the initiative and coordinating with the Department of Health and Human Services (HHS). Vilsack responded by discussing various USDA programs supporting food as medicine, such as the GusNIP program, which funds prescription medicine programs encouraging fruit and vegetable purchasing. He also mentioned initiatives promoting regenerative agriculture and organic transition, along with grants for market development and farm-to-school programs.

Lee then shifted the discussion to agricultural trade with Cuba, expressing interest in expanding opportunities for American agricultural products in the Cuban market. Vilsack acknowledged the challenges posed by current legislation requiring upfront cash payments for U.S. exports to Cuba but noted the potential for increased trade if barriers could be addressed.

Finally, Lee raised concerns about funding cuts to urban agriculture programs and the challenges faced by constituents in accessing resources for urban farming. Vilsack acknowledged the funding cuts and highlighted USDA's urban agriculture offices and regional food business center concept as potential avenues for support.
FSA offices in Florida: Rep Scott Franklin (R-Fla.) expressed concerns to Secretary of Agriculture Thomas Vilsack regarding the effectiveness of the Farm Service Agency (FSA) offices in his district. Franklin raised issues regarding the lack of response to his inquiries and the difficulty in obtaining information from the FSA. Franklin described his efforts to address the disconnect between Vilsack's previous testimony about FSA effectiveness and the feedback he received from constituents. Despite sending letters and making inquiries over several months, Franklin received limited responses and faced obstacles in obtaining information from both USDA and state officials. In particular, Franklin highlighted the issue of producers being required to submit duplicative eligibility forms without receiving receipts for service, as mandated by Congress. He expressed frustration with the lack of compliance with this requirement and questioned the validity of metrics used to assess FSA performance.

In response, Vilsack acknowledged the shortcomings in communication and committed to improving the agency's responsiveness to inquiries. He also expressed willingness to address specific issues within the FSA offices in Franklin's district and to provide survey results regarding employee morale.

Franklin further raised concerns about employee retention within USDA, citing anecdotal evidence of employees leaving due to perceived lack of support and bureaucratic obstacles. Vilsack countered by citing improvements in employee morale since the previous administration but agreed to share survey results with Franklin.

Warning to USDA communications office: Harris told Vilsack he hoped USDA “does not choose to use its communications office to launch partisan attacks on the work product of this committee. Let me remind you the Executive branch exists to carry out the Legislative branch directives, not the opposite.”
Other topics from Rep. Harris: Harris made several comments and raised concerns about various issues related to agricultural programs and policies. Some issues he raised to Vilsack:

— Ingenuity in policy definitions: Harris praised the ingenuity shown by USDA in defining what is allowed under the Commodity Credit Corporation (CCC) and the secretary's pandemic discretion but questioned why similar ingenuity couldn't be applied to other matters.

— Department of Labor standards: He highlighted the importance of the Department of Labor representing laborers and expressed agreement with the previous Ag secretary's stance on labor standards, particularly regarding the agricultural industry.

— Impact of regulations on poultry industry: Harris expressed concerns about regulations issued by USDA impacting the poultry industry, particularly on the Eastern Shore of Maryland, and warned that such regulations could drive the industry offshore, leading to adverse consequences for small farms.

— Summer EBT Program: He again criticized the Summer Electronic Benefit Transfer (EBT) program, expressing reservations about its nutritional requirements and suggested that the program may allow for the purchase of unhealthy items like soda.

— Discrepancies in government programs: Harris highlighted a discrepancy between the Department of Defense (DOD) and USDA regarding the use of wild-caught catfish in USDA-approved programs, indicating the need to resolve such discrepancies within the government.

— Cost of inflation in WIC program: He questioned the projected inflation rate for food items in the Women, Infants, and Children (WIC) program and requested modeling data from the USDA to understand the impact of inflation on the program's costs.

— WIC participation rates: Harris pointed out inconsistencies in WIC participation rates, indicating that the increase in participation was only around 1% over the previous year, contrary to expectations of a larger increase.

In response to Harris's inquiries, Vilsack agreed to provide the requested modeling data and additional information regarding the WIC program.

Bishop discussed two key agricultural programs with Vilsack:

— NRCS Equity Conservation Cooperative Agreements program: Bishop expressed strong support for this program, which provides grants to expand conservation assistance to new, low-income, marginalized demographic, or veteran farmers. He commended Vilsack for allocating $70 million in 2023 and encouraged continued funding for 2024 and 2025. Vilsack highlighted the program's achievements, including reaching 75,000 individuals through cooperators, conducting 1,165 events, providing technical assistance to 9,000 individuals, and hosting over 700 workshops.

— Access to crop insurance for small farmers: Bishop raised concerns about small farmers' difficulties in accessing crop insurance, noting that insurance companies may be unwilling to work with them. He acknowledged USDA's efforts to improve access through policies like Whole Farm Revenue Protection, Microloan Policy, and changes to the NAP Program. Bishop inquired about USDA oversight to ensure insurance companies fulfill their requirement to offer policies to all customers. Vilsack stated that USDA constantly advises providers of their responsibility to offer all policies and service all customers as a condition of doing business.

Concern over USDA-CAS bird flu research collaboration China: Rep. Ben Cline (R-Va.) raised concerns about the collaboration between USDA and the Chinese Academy of Sciences (CAS) on bird flu research, particularly considering the Wuhan Institute of Virology's connection to the CAS and its controversial gain-of-function research.

Cline expressed alarm over USDA's collaboration with CAS on risky bird flu evolution lab experiments. He highlighted CAS's ties to the Chinese government, including its connections to military and espionage programs. Cline questioned whether sensitive data from bird flu experiments conducted in high containment USDA labs was being shared with CAS and how USDA ensures that such data isn't misused by the Chinese government, potentially for bioweapons development.

Vilsack responded that to his knowledge, there is no sharing of sensitive data with CAS and emphasized that all research conducted by USDA remains within the agency. He expressed confidence in the security measures in place to prevent unauthorized access to data.

Cline pressed Vilsack on why USDA continues to collaborate with CAS despite concerns about its research practices and possible violations of grant terms and gain-of-function policies. Vilsack defended the collaboration, stating that each party conducts separate research, and emphasized the importance of addressing the bird flu outbreak to protect the poultry industry.

Cline urged Vilsack to terminate USDA's involvement with CAS and other stakeholders in risky virus research. However, Vilsack stated that there was nothing to terminate and defended the professionalism of USDA scientists.

Cline expressed concern that the collaboration could compromise national security, but Vilsack disagreed, asserting that USDA's collaboration did not pose a risk to national security.
Other issues raised by Rep. Kaptur: She raised concerns about forestry in the Great Lakes region due to climate change. She sought assistance in identifying suitable tree species and requested information on a central dashboard for USDA programs. Additionally, Kaptur inquired about the disbursement of funds for the Senior Farmers Market Nutrition Program and sought guidance on connecting local producers to IRA tax credits and energy benefits. She also expressed concerns about phosphorus leaching into the Great Lakes and requested assistance in addressing this issue.
Half-pint milk cartons: Rep Valadao discussed with Vilsack the ongoing supply chain issues with half-pint milk cartons. Despite assurances from Pactiv Evergreen, the issues persist, impacting schools and hospitals in the San Joaquin Valley. Vilsack acknowledged awareness of the problem and highlighted efforts to provide alternative distribution systems for milk.

Additionally, Valadao inquired about the Farm and Food Worker Relief Grant program, expressing concern over allegations of improper distribution of relief payments by certain nonprofit organizations, including the United Farm Workers Foundation. Vilsack assured ongoing oversight and potential reimbursement of funds if inappropriate activity is confirmed. He also indicated that entities found in violation of program rules may face restrictions on future participation.
Hunger and poverty in Central Valley California; Black farmer concerns: Rep. Lee addressed Vilsack regarding the prevalence of hunger and poverty in the Central Valley, despite being a highly productive agricultural area. She expressed concern about the factors contributing to food insecurity, particularly for residents who moved to the region seeking a better life. Vilsack suggested that income levels and access to support programs could be contributing factors and emphasized the need to ensure that available programs reach those in need.

Lee also raised the issue of equity for Black farmers in California, noting historical challenges in accessing USDA programs and loans. Vilsack outlined various efforts by USDA to address equity issues, including the establishment of Equity Commissions, action plans, loan servicing opportunities, and financial assistance programs for those who have experienced discrimination. Additionally, he mentioned cooperative agreements with organizations to provide guidance and support to minority communities accessing USDA programs. Lee requested further information on these initiatives, particularly regarding access to the California Farm Bureau and cooperative agreements.

Meanwhile, Rep. Underwood from Illinois addressed Vilsack concerning the decline in Black farms and the challenges they face in accessing USDA resources. Underwood highlighted data showing a significant decline in the number of Black farmers and disparities in loan approval rates between Black and White farmers. Underwood questioned the steps USDA, particularly through the Office of Civil Rights, is taking to ensure equitable access to resources and support for Black farmers. Vilsack emphasized the department's commitment to addressing equity issues through recommendations from the Equity Commission, equity action plans, and working with cooperative groups.

Underwood expressed concern over the disparities in loan approval rates and stressed the importance of data analysis to rectify the situation. Vilsack requested clarification on the data and indicated willingness to follow up and share additional information for further analysis. He acknowledged the complexity of the issue but assured that USDA is addressing it.

Underwood concluded by expressing her office's concern over the public reports of disparities and offered to engage in conversations to address the problem further. Vilsack reiterated USDA's acknowledgment of the issue and commitment to dealing with it, while also acknowledging its complexity.
Relocation of grizzly bears into the North Cascades: Rep. Newhouse raised concerns about the proposed relocation of grizzly bears into the North Cascades, citing potential risks to agriculture, livestock, and public safety. He questioned whether USDA had been consulted by the National Park Service and U.S. Fish and Wildlife during the environmental impact statement process and whether plans were in place to address crop loss and livestock depredation.

Vilsack emphasized USDA's close relationship with the Department of the Interior and its agencies, suggesting that while the USDA provides input and guidance, decisions ultimately lie with the respective departments. Regarding the grizzly bear relocation, Vilsack noted the potential for USDA programs like EQIP to mitigate agricultural impacts.

Key Issues Addressed by Vilsack at House Ag Appropriations Subcommittee Hearing

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