Key Comments from USDA Nominee Sonny Perdue

Trade policy | New farm bill | Budget cuts | Leading USDA | Immigration

Sonny Perdue, President Donald Trump’s nominee to lead USDA, commented on key budget, farm and trade policy issues during his 2.5 hour confirmation hearing before the Senate Agriculture Committee. The committee will meet at a later date to vote on Perdue’s nomination during a business meeting.

Senate Ag Chairman Pat Roberts (R-Kan.) opened the hearing saying American growers and producers face tough economic times after multiple years of declining prices, and “need a strong market for their goods.” Roberts noted that, “During this critical time the importance of trade for our agriculture industry cannot be overstated.’ He added that USDA, which would be cut by 21 percent under President Donald Trump’s proposed budget, “needs a voice, an advocate at the highest level of government,’' especially in rolling back “costly and hard to understand” regulations. Trump has also called for changing trade deals such as NAFTA with Canada and Mexico.

On running USDA, the former Republican governor of Georgia said in his opening testimony he understands that running a department with nearly 100,000 workers and multiple missions would be challenging. “This is a big job with enormous responsibility, not just a position,” said Perdue. He promised “open, honest and efficient communication” with the committee on policy issues and as the panel works on a 2018 Farm Bill.

Regarding budget issues for USDA, Perdue said he had “no input into the budget,” adding that he could not have been involved in the process because he ha not been confirmed. He said he viewed the budget proposal much like he considered a revenue estimate he did not like during his time as the GOP governor of Georgia: “I didn’t like it, but we manage to it... “These are important programs,” he added. “I recognize that.”

Regarding his role as leader of USDA, Perdue said, “You want a secretary to be a strong and tenacious advocate... If I’m confirmed, I want to get under the boards ... and work for agriculture producers and consumers.”

As for Trump and rural voters, Perdue said, “I think the president understands that many of his votes came from many of the rural areas” that lawmakers have mentioned.

Perdue said he will begin working on immigration issues “post haste” if confirmed. He said that he would advocate for changes to the H-2A visa program for temporary agricultural workers. Some farm-state lawmakers pointed to US dairy operations as an area of focus. Dairy farmers currently cannot use the H-2A program because their workforce is year-round.

On trade policy matters, Roberts said there appears to be “too many cooks in the kitchen’’ on trade under the Trump administration. The Commerce Department, the White House’s newly created economic trade council and the US Trade Representative are expected to play a role in trade policy. Perdue said he would stress agriculture’s reliance on export sales to the administration and would work with the USTR office and the Commerce Department on trade generally. Perdue said he plans to be “intimately involved” in trade deal negotiations and would, if confirmed, work alongside the USTR to be sure the agriculture community’s interests are represented in any future talks.

Perdue said he would work “tirelessly” to promote US agriculture products in foreign markets and that he has already been in touch with Robert Lighthizer, Trump’s pick for USTR, on the subject. He told the committee that during that meeting, Lighthizer told him 80 percent of what he has heard so far about trade has involved agriculture. “If confirmed, my first stop’s going to be Mr. Lighthizer’s office door.”

The USDA nominee said the US should not start blocking imports of Brazilian beef over food safety concerns raised by allegations of meatpacking companies in the South American nation bribing government inspectors to overlook unsanitary practices. Perdue warned that banning imports could result in retaliation from Brazil and other countries. “We already know we’ve had some highly pathogenic avian influenza, and some countries have responded” by blocking US poultry imports, Perdue said. “So while that’s localized, I don’t want to punish another country in that way.”

Perdue did call for thorough US inspections of Brazilian beef entering the country. USDA’s Food Safety and Inspection Service said Wednesday that it will “indefinitely maintain” its policy of 100 percent re-inspection and pathogen testing for all meat imports from Brazil. The policy was instituted on March 18.

Regarding trade with Cuba, Perdue urged lawmakers to ease restrictions on financing imports in Cuba to open up trade with them. “I think we would love to have Cuba as a customer,” Perdue said. “It’s the ability to pay and the ability to finance there as much as anything.” Current US law exempts agriculture from the embargo but requires sales be made with cash in advance. Several lawmakers want to change the law to allow credit sales of farm goods as a step toward lifting the embargo. “I think they would love to have our products and they are certainly an appropriate customer for the rice Louisiana grows and Arkansas grows ... if you all could see fit to look into the financial situation,” Perdue said.

Regarding farm policy, Perdue said he is committed to looking at more risk-management tools for dairy producers ahead of the 2018 Farm Bill, if he’s confirmed to lead USDA. Sen. Debbie Stabenow (D-Mich.) asked Perdue about a letter she sent to USDA on Wednesday urging Perdue and USDA to work with the dairy industry to develop additional crop insurance policies. The letter, which was sent along with the American Farm Bureau Federation, National Milk Producers Federation and National Farmers Union, said the main hurdle to offering more policies is a $20-million cap for the livestock sector. While USDA has historically interpreted “livestock” to include both animals and products derived from animals, like milk, Stabenow and the three farm groups want USDA to change course and determine that milk is an agricultural commodity that is eligible for a separate coverage category and cap. Perdue told Stabenow that her suggestion “intrigued” him. He acknowledged that the 2014 Farm bill “didn’t meet the expectations for dairy farmers.” Perdue said he is “absolutely committed to look for a way to give immediate and temporary relief ahead of the 2018 Farm Bill,” adding that any response would have to be “mindful” of budgetary constraints.