VIDEO: Fischer Presses Ag Secretary on Cattle Market Reform, Corn Exports to Mexico

Press Release

At a hearing of the Senate Agriculture Committee today, U.S. Senator Deb Fischer (R-Neb.) pressed Secretary of Agriculture Tom Vilsack on issues of great importance to Nebraska agriculture.

During her questions, Fischer brought up her Cattle Price Discovery and Transparency Act and the need for price discovery and transparency in the cattle market. Senator Fischer discussed the legislation with Secretary Vilsack in March. The Senate Ag Committee held a hearing on Fischer's bill last month.

Additionally, Secretary Vilsack committed to Senator Fischer that he would work with our trading partners in Mexico to provide certainty and market access for Nebraska corn producers.

A full transcript of Senator Fischer's exchange with Secretary Vilsack.

Senator Fischer: Secretary Vilsack, Senator Grassley, Tester, and I had the opportunity to visit with you in March about the Cattle Price Discovery and Transparency Act. I've appreciated the more than 40 hours of technical assistance that you and your staff at USDA have provided on that legislation. This bipartisan legislation is cosponsored by half of the members of this committee.

Our legislation is focused on two main policies: price discovery and transparency in the market. Do you agree that a robust and competitive negotiated market is essential to ensuring price discovery takes place in the cattle market?

Secretary Vilsack: Yes.

Senator Fischer: Some folks have expressed concern about this, so briefly can you reassure us, that when implementing the bill USDA would conduct a notice and comment rulemaking and a cost-benefit analysis when setting the regional minimums, as explicitly required by the legislation?

Secretary Vilsack: We will follow whatever Congress directs us to do.

Senator Fischer: At our legislative hearing exactly one month ago, USDA officials testified that our bill would make the cattle markets more competitive, transparent, and fair. Do you agree with that statement?

Secretary Vilsack: I do and I think it's important as well for us to increase capacity to have more competition as well. I think there's a combination of both legislation and increasing capacity.

Senator Fischer: Thank you. International trade is a critical for my state's economy. We exported $7.1 billion in agricultural products in 2020. I have heard continuously from Nebraska's ag producers who are frustrated about the lack of a trade agenda from the administration. We have seen no push from the administration to work with Congress on Trade Promotion Authority. We have seen no push for the administration to pursue new agreements that provide market access. That is true just this week with the announced Indo-Pacific Economic Framework. We have seen no push to name a qualified nominee to be USTR's Chief Ag Negotiator.

With that said, I would like to ask about a specific trade issue impacting Nebraska corn growers. I have concern over Mexico's policy on ag biotechnology, which is set to ban biotech corn for human consumption as soon as January 2024. This policy is out of step with their commitments under USMCA. It will restrict Nebraskans' access to innovative agricultural tools and increase costs for consumers on both sides of the border -- something we don't need with current out of control inflation. Mexico is the top export destination for Nebraska's corn. We're a top producer of white corn -- used in corn chips, tortillas and other food products. Planning decisions will begin soon for the 2023 corn crop that will be exported in 2024, meaning Nebraska farmers need certainty from this important trading partner right now.

Secretary Vilsack, how is the administration working with Mexico to ensure continued market access, in particular for white corn used in food products? Is the administration prepared to use all relevant bilateral and multilateral policy mechanisms at its disposal, including dispute resolution, if Mexico does not make any progress in fulfilling its commitments under USMCA?

Secretary Vilsack: I recently had a conversation directly with the President of Mexico directly about this issue of corn, and I'm confident that exports of corn that your farmers and farmers across the country are relying on are going to continue. We'll continue to work with our trading partner. The fact is we've finally got potatoes across the border after 15 years. I think we are going to focus on developing a strong, confident relationship with the Mexicans and I'm confident that's going to result in us continuing to have very, very strong exports with Mexico.

Senator Fischer: Thank you, and I hope you will be able to use the tools at your disposal with current trade agreements in order to be stern and resolute with Mexican on this white corn issue.

Secretary Vilsack: We haven't had a reluctance to do that with our Canadian friends on dairy.

Senator Fischer: Thank you. I appreciate that.

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