The top Republican on the Senate Ag Committee says Agriculture Secretary Tom Vilsack’s commitment to spend $1.4 billion for trade promotion assistance from the Commodity Credit Corporation should make a “big difference” for U.S. farmers.
“We're in a situation now for the last few years where we're actually importing more than we're exporting,” Sen. John Boozman, R-Ark., said in the latest edition of Agri-Pulse Newsmakers.
USDA recently notified the House and Senate Appropriations committees that Vilsack plans to use his CCC authority to fund the $1.4 billion for trade promotion as well as $1.1 billion for international food aid.
“I think it will make a big difference. Trade is the lifeblood of agriculture,” Boozman said of the CCC plan. He said he would seek more funding for trade promotion aid if it’s needed.
USDA estimates that U.S. ag exports slipped to $177.5 billion in fiscal 2023, compared to $196.5 billion in imports, and the department is projecting a similar deficit for FY24. There are a number of factors behind the slump in exports, including strong domestic demand for soybean oil.
Boozman and other Republicans have been critical of Vilsack’s use of the CCC, but the senator said tapping the account for trade promotion was appropriate.
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The CCC is a $30 billion revolving account that the secretary can use to aid U.S. farmers. The Government Accountability Office issued a legal decision this week that Ag Secretary Vilsack was well within his power to use the CCC to fund the department’s $3.1 billion Partnerships for Climate-Smart Commodities initiative.
Also on the show this week was Laura Wood Peterson with LWP Consulting, who spoke on CCC funding and the GAO’s statement on Vilsack’s authority with the funds.
“That was a very clear signal on the use of the CCC…,” said Peterson. “It's becoming more and more important for the Secretary to be able to respond to all kinds of challenges that come up.”
Robbie Minnich with the National Cotton Council joined Peterson on the panel this week.
The full conversations with Boozman, Peterson and Minnich can be viewed on Agri-Pulse.com.
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