[Senate Hearing 111-230]
[From the U.S. Government Publishing Office]
S. Hrg. 111-230
NOMINATION OF GOV. THOMAS J. VILSACK,
OF IOWA, TO BE SECRETARY OF
AGRICULTURE
=======================================================================
HEARING
before the
COMMITTEE ON AGRICULTURE,
NUTRITION, AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
__________
JANUARY 14, 2009
__________
Printed for the use of the
Committee on Agriculture, Nutrition, and Forestry
Available via the World Wide Web: http://www.agriculture.senate.gov
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COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
TOM HARKIN, Iowa, Chairman
PATRICK J. LEAHY, Vermont SAXBY CHAMBLISS, Georgia
KENT CONRAD, North Dakota RICHARD G. LUGAR, Indiana
MAX BAUCUS, Montana THAD COCHRAN, Mississippi
BLANCHE L. LINCOLN, Arkansas MITCH McCONNELL, Kentucky
DEBBIE A. STABENOW, Michigan PAT ROBERTS, Kansas
E. BENJAMIN NELSON, Nebraska MIKE JOHANNS, Nebraska
SHERROD BROWN, Ohio CHARLES E. GRASSLEY, Iowa
ROBERT P. CASEY, Jr., Pennsylvania JOHN THUNE, South Dakota
AMY KLOBUCHAR, Minnesota
KIRSTEN GILLIBRAND, New York
MICHAEL BENNET, Colorado
Mark Halverson, Majority Staff Director
Jessica L. Williams, Chief Clerk
Martha Scott Poindexter, Minority Staff Director
Vernie Hubert, Minority Chief Counsel
(ii)
C O N T E N T S
----------
Page
Hearing(s):
Nomination of Gov. Thomas J. Vilsack, of Iowa, to be Secretary of
Agriculture.................................................... 1
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Wednesday, January 14, 2009
STATEMENTS PRESENTED BY SENATORS
Harkin, Hon. Tom, a U.S. Senator from the State of Iowa,
Chairman, Committee on Agriculture, Nutrition and Forestry..... 1
Chambliss, Hon. Saxby, a U.S. Senator from the State of Georgia.. 3
Grassley, Hon. Charles E., a U.S. Senator from the State of Iowa. 6
Panel I
Vilsack, Thomas J., of Iowa, to be Secretary, U.S. Department of
Agriculture.................................................... 7
----------
APPENDIX
Prepared Statements:
Vilsack, Thomas J............................................ 46
Document(s) Submitted for the Record:
Committee questionnaire and Office of Government Ethics
Executive Branch Personnel Public Financial Disclosure
Report filed by Thomas J. Vilsack.......................... 50
Various organizations, letters of support and endorsement of
Gov. Thomas J. Vilsack to be Secretary of Agriculture......72-120
Question and Answer:
Harkin, Hon. Tom:
Written questions to Gov. Thomas J. Vilsack.................. 122
Baucus, Hon. Max:
Written questions to Gov. Thomas J. Vilsack.................. 128
Casey, Hon. Robert P., Jr.:
Written questions to Gov. Thomas J. Vilsack.................. 131
Chambliss, Hon. Saxby:
Written questions to Gov. Thomas J. Vilsack.................. 134
Crapo, Hon. Mike:
Written questions to Gov. Thomas J. Vilsack.................. 144
Klobuchar, Hon. Amy:
Written questions to Gov. Thomas J. Vilsack.................. 149
Leahy, Hon. Patrick J.:
Written questions to Gov. Thomas J. Vilsack.................. 150
Lincoln, Hon. Blanche L.:
Written questions to Gov. Thomas J. Vilsack.................. 159
Roberts, Hon. Pat:
Written questions to Gov. Thomas J. Vilsack.................. 165
Stabenow, Hon. Debbie A.:
Written questions to Gov. Thomas J. Vilsack.................. 168
Thune, Hon. John:
Written questions to Gov. Thomas J. Vilsack.................. 178
NOMINATION OF THOMAS J. VILSACK,
OF IOWA, TO BE SECRETARY OF
AGRICULTURE
----------
Wednesday, January 14, 2009
U.S. Senate,
Committee on Agriculture, Nutrition, and Forestry,
Washington, DC
The Committee met, pursuant to notice, at 10:02 a.m., in
room SD-G50, Dirksen Senate Office Building, Hon. Tom Harkin,
Chairman of the Committee, presiding.
Present: Senators Harkin, Leahy, Lincoln, Nelson, Casey,
Klobuchar, Chambliss, Lugar, Grassley, Roberts, Thune, and
Cochran.
STATEMENT OF HON. TOM HARKIN, U.S. SENATOR FROM THE STATE OF
IOWA, CHAIRMAN, COMMITTEE ON AGRICULTURE, NUTRITION, AND
FORESTRY
Chairman Harkin. The Senate Committee on Agriculture,
Nutrition, and Forestry will come to order.
Well, this morning, it is a distinct honor of mine to hold
this hearing of this Committee to consider the nomination of
Thomas J. Vilsack, former Governor of Iowa, to become Secretary
of Agriculture. I want to welcome you to the Committee,
Governor Vilsack, along with your wife, Christie, our former
First Lady, and a good number of Iowans and others who are here
to support you and wish you well.
The Secretary of Agriculture is a job with far-reaching
responsibilities and influence. Although it is often
overlooked, all Americans, and many millions more around the
world, lead better lives each day because of the capable
efforts of the people who make up the Department of
Agriculture.
Nothing is more basic to human sustenance than a safe and
affordable and plentiful supply of nutritious food. Our Nation
is blessed to have the people, the resources, and the
technology to form a system stretching from family farms to
family dining tables that allows most of us to take food pretty
much for granted. This level of food security has been possible
for only a very small slice of human history and is still out
of reach for far too many of the world's inhabitants--some
right here in our own country. The Secretary of Agriculture has
a fundamental responsibility to foster a dependable and
sustainable food and agriculture system and to provide
nutrition assistance to millions of Americans in need.
We also rely on farms and ranches and forests for the
fiber, timber, and, increasingly, renewable forms of energy
that are key elements of our economy and way of life. Rural
America contributes greatly to our Nation's wealth, not only by
supplying food and other resources, but also through a highly
productive and dedicated workforce.
Yet too often, the citizens of small towns and rural
communities do not share in the wealth that they help to
generate. And so another crucial role of the Secretary of
Agriculture is as a champion of rural communities--dedicated to
helping them succeed economically and obtain the necessary
elements for a better way of life.
The new Secretary of Agriculture faces stiff challenges--
many of them, of course, made harder by the economic downturn--
and yet there are solid reasons to hope and work for positive
change.
The rural economy and rural businesses are suffering,
including in agriculture, where producers are once again in a
cost-price squeeze, compounded by tighter credit. Yet our basic
assets in agriculture and rural America are the envy of most of
the world.
Job losses and economic hardship will drive the need for
nutrition assistance to record levels across America--rural and
urban--and will strain USDA and State agencies to deliver this
critically important help to families. The new farm bill
strengthened this assistance as will, hopefully, the economic
recovery legislation.
At the same time, in the child nutrition assistance
programs that we are due to reauthorize this year, we have a
tremendous opportunity to help reform America's health system,
save lives, and control health care costs. If we make sure that
foods and beverages that kids consume in schools are more
nutritious and healthier and properly balanced, we will prevent
diseases and medical conditions that impair and cut short
lives--and cost a lot of money to treat. We will need the
leadership and help of the Secretary of Agriculture and USDA in
writing this legislation.
We have a huge challenge to conserve natural resources in
the face of a growing world population and demand for
commodities and raw materials. Farms and forests will be pushed
for ever greater output. Doing so sustainably will require a
much greater commitment to conservation practices on land that
is in production through the Conservation Stewardship Program
and similar initiatives.
In renewable energy and other areas, we can and we must
create and develop new opportunities in rural America, for
example, for beginning farmers and in small and startup
businesses. Producing livestock and poultry is vital to rural
economies, and it is essential that markets in this industry
are competitive and fair. The demand for locally grown and
organic foods continues to grow--the fastest growing part of
our food chain--providing new and expanding opportunities,
again, in rural communities.
USDA's food safety and inspection system needs
strengthening, yet the progress that has been made shows that
the system can be improved.
With the number of hungry people in the world now reaching
nearly 1 billion, we must instill hope by investing more in
food and agriculture research and helping developing countries
improve agricultural productivity so they will be better able
to feed themselves.
And among the most intractable challenges facing the new
Secretary of Agriculture is the intolerable and inexcusable
state of civil rights in USDA's agricultural programs and for
USDA employees. It is essential that we find ways to work
together to turn this situation around once and for all.
So it is now my privilege to introduce--taking off my
Chairman's hat, just now as a member of the Committee and as an
Iowan--along with my colleague from Iowa, Senator Grassley, our
Governor Tom Vilsack, President-elect Obama's nominee for
Secretary of Agriculture. I can tell you from my long history
with Tom Vilsack, he knows production agriculture and what is
needed to promote profitability and a better future, including
for beginning farmers and ranchers. He gained a lot of
experience the hard way--representing farmers in wrenching
financial situations as a county seat lawyer during the farm
crisis of the 1980's, which was the first time we ever met.
As the mayor of Mount Pleasant and as a State senator, he
gained valuable experience and insights into the problems and
needs and opportunities in our small rural communities.
As a Governor, Tom Vilsack built a strong record in
promoting renewable energy, rural economic opportunity, and
conservation. He knows how to bring change that will help to
strengthen and rebuild the farm and rural economy on a sound
foundation. He has a proven record of working with all sides to
seek the right resolution to environmental issues.
He is solidly committed to better nutrition and providing
food assistance to those who need it. He created the Iowa Food
Policy Council to address the range of interlinked food and
agriculture issues.
Tom Vilsack's experience, his abilities, his dedication,
and his relish for hard work will serve him well, and our
Nation very well, as Secretary of Agriculture. And it will also
serve him very well that he has as his wife and companion
Christie Vilsack, our former First Lady, a teacher who made a
great name for herself all over Iowa by promoting reading
especially for young children, and our libraries and books in
the State of Iowa, she just did a tremendous job in the State
of Iowa.
So, again, Governor, we welcome you to the Committee. We
look forward to your testimony.
I will turn to our Ranking Member Senator Chambliss and
then to Senator Grassley for the purpose of introduction.
Senator Chambliss.
STATEMENT OF HON. SAXBY CHAMBLISS, U.S. SENATOR FROM THE STATE
OF GEORGIA
Senator Chambliss. Thank you, Mr. Chairman.
First of all, let me just say that I look forward to
another productive and cooperative year with you, and
congratulations again on being Chairman of this Committee, and
you have been a great partner. We had some difficult tasks last
year, but with your leadership we were successful in getting a
farm bill passed, and I congratulate you once again on that
also, and I look forward to this year.
Chairman Harkin. Thank you.
Senator Chambliss. And, certainly, Mr. Chairman, I am glad
to attend this important hearing this morning to consider the
nomination of Governor Tom Vilsack for the position of
Secretary of Agriculture. With all the recent turmoil affecting
every segment of our economy, I understand that the President-
elect would like to have his Cabinet in place as soon as
possible. I look forward to reporting the nomination out of
Committee and quickly approving the nomination on the Senate
floor. A swift confirmation will ensure that the Department of
Agriculture has the necessary leadership to fulfill its mission
on behalf of the American people.
Governor Vilsack, I congratulate you on your nomination,
welcome you and your wife, Christie, to the Senate Agriculture
Committee, and I am very pleased, Christie, to hear that you
are a former teacher. My wife also taught school for 30 years
in the public school systems in our State, so it is a special
talent you have, and we certainly again welcome you to the
Committee.
I hope your visit today will be short yet productive. I am
certain that today is a proud day for you, your family, and the
entire State of Iowa. I would note that upon your confirmation,
Iowa agriculture is certainly going to be well represented in
both branches of Government. Along with Senator Harkin's
chairmanship of the Senate Agriculture Committee and Senator
Grassley's leadership on the Finance Committee as well as
serving in the Minority on this Committee, it is difficult to
imagine a scenario where corn, soybeans, and livestock will not
be ably represented.
As we discussed in our meeting in my office in the last few
days, I know that you are eager to broaden your portfolio to
represent our Southern commodities as well--commodities such as
poultry, cotton, and peanuts--and that you desire to represent
the entire U.S. agriculture sector and certainly not just one
section of the country.
As every member of the Senate Committee on Agriculture well
knows, the position of Secretary is critically important not
only to America's agriculture producers but to every U.S.
citizen that consumes the products that our farmers produce.
From overseeing the major commodity and conservative programs
to administering the food and nutrition programs, the Secretary
of Agriculture touches almost every sector of our society.
Our most basic strength as a Nation resides in our ability
to produce a safe, abundant, and affordable food supply. We are
blessed that we can share this bounty not only with our
citizens but with all the world as well.
As with all sectors of the economy, American agriculture is
experiencing very difficult times. Even though our farmers and
ranchers earlier generally enjoyed higher prices, these were
coupled with rising input costs. Unfortunately, many of them,
particularly cotton producers, never experienced the high
prices. They encountered the double misfortune of low prices
and high input costs. In today's uncertain economic climate,
USDA must closely monitor our production sector and ensure that
any legislative priorities treat all areas of the country
fairly so that they may, therefore, enjoy broad congressional
support.
As you know, the U.S. Congress overwhelmingly approved the
2008 farm bill. Two Presidential vetoes had to be overridden to
enact this law, and such broad support of farm policy is
unprecedented in the Senate's long history. Although the
current administration began the implementation of the 2008
farm bill, now it will be your responsibility to complete the
job.
It is our hope to continue the important business of
working with the Department to implement the law. Again, as we
discussed in our meetings, sometimes the Department needs
assistance in that regard in order to fully understand
congressional intent to preserve the delicate balances of the
2008 farm bill. The fact that the President-elect nominated you
speaks to your high level of qualification to implement such an
important piece of legislation.
I know that you bring to Washington a great deal of
experience as Secretary of Agriculture. You served two terms as
the Governor of Iowa, where, according to a 2005 Iowa State
University study, farm and farm-related employment make up 20
percent of the workforce of your State. Much like my home State
of Georgia, agriculture is the backbone of Iowa's economy.
Whether it was encouraging energy security through the
advancement of renewable biofuels or ensuring that we remain
leaders in agricultural science and technology by advancing
biotechnology issues, you served your State admirably as
Governor and will no doubt bring those same qualities to USDA.
In addition to implementing the farm bill, the Secretary
must represent the interest of American agriculture in the
negotiation of free trade agreements, work tirelessly to
further open markets to our agricultural products, support
international economic development through the provision of
food aid, lead land conservation efforts, and expand job
opportunities for our citizens in rural America. As the founder
and former Chair of the Governors Biotechnology Partnership,
you have a unique perspective and I hope will invest a
significant amount of your time to resolve our biotechnology
issues with our trading partners.
As you are aware, many of these issues have persisted in
spite of scientific vindication and favorable decisions in the
World Trade Organization. I am optimistic that you are the
right man to take on these challenges.
Governor, I look forward to working with you, and I urge my
colleagues to favorably report your nomination out of Committee
and approve it on the Senate floor as soon as possible.
Thank you, Mr. Chairman.
Chairman Harkin. Thank you very much, Senator Chambliss,
and let me repay your kind remarks by again welcoming you back
to the Committee as Ranking Member--well, I did not mean it
that way. I meant, welcome you back, in your capacity as
Ranking Member. Of course, I prefer to be Chairman rather than
Ranking Member. But we have had a great----
Senator Chambliss. Do you want to swap or what, Tom?
[Laughter.]
Chairman Harkin. We have had a great partnership, and I
look forward to that continuing, especially with the
reauthorization of the child nutrition bill and all the other
matters you mentioned. So it has been great working with you,
and I look forward to another productive couple of years here.
Thank you very much, Saxby.
Now I will yield to my friend, my colleague from Iowa,
Senator Grassley, for an introduction.
STATEMENT OF HON. CHARLES E. GRASSLEY, U.S. SENATOR FROM THE
STATE OF IOWA
Senator Grassley. Good morning, everybody, and thank you,
Mr. Chairman and Senator Chambliss. A very special welcome to
Governor Vilsack and his wife, Christie, to the Senate
Agriculture Committee. They are a great political team. Mrs.
Vilsack is a policy person in her own right, so it is a very
strong team coming to town to do the work of advancing our
country.
I am so pleased to see that one of the President-elect's
Cabinet nominations is an Iowan, and I want to personally
congratulate you, as I have a couple times privately, for your
nomination and welcome you to Washington.
I think the Committee is very fortunate to have someone
appointed to be Secretary of Agriculture as Governor Vilsack
is. He has been around agriculture in the family farm, as mayor
of a small town, as a State senator, and as Governor of Iowa,
and all of this is going to be a tremendous benefit to
agriculture generally, but particularly to the institution of
the family farm.
When Governor Vilsack was elected mayor of Mount Pleasant,
he inherited a rural community that was suffering the effects
of the farm credit crisis of the 1980's. He witnessed firsthand
how the farm crisis became not just a farm crisis, but a rural
crisis. This experience will be extremely beneficial as he
assumes the role of Secretary during a time of price
volatility, exceedingly increasing input costs, and
undetermined amounts of risk. I also look forward to your swift
and speedy confirmation.
Many of us in the Senate have worked hard in years to pass
legislation to help restore competition in livestock markets
and to make sure that marketing and production contracts that
farmers sign with packers and livestock integrators are, in
fact, fair contracts. We made some real progress in this regard
by including important changes in the Farm Bill to the Packers
and Stockyards Act to protect farmers from abusive contract
terms.
For a long time on this issue, I have worked with my
colleagues Senator Feingold, Senator Harkin, and others to make
sure that livestock and poultry farmers cannot be forced to
sign away their rights through mandatory arbitration clauses in
their contracts. In the 2008 farm bill, we finally included a
provision to require that farmers be given a clear choice up
front in their contract about whether or not they want to use
arbitration to resolve disputes.
I would also note that the 2008 farm bill requires the U.S.
Department of Agriculture to do a rulemaking to define the
Packers and Stockyards Act prohibition against ``undue and
unreasonable preferences'' in which meat packers, swine
contractors, and poultry dealers favor larger-volume producers
over smaller-volume producers. I want to advance this important
rulemaking as quickly as possible as it represents one of the
most important immediate steps that can be taken to restore a
fair and more competitive marketplace.
I have also been a strong supporter of crop insurance. Iowa
leads the Nation with the most crop insurance companies
headquartered in our State and a very high participation and
purchase of revenue policies. Crop insurance is a vital risk
management tool, and it has helped Iowa farmers recover from
devastating floods last year and is helping farmers cover
losses from steep declines in commodity prices. Revenue claims
are still being worked on in Iowa for last year, but I look
forward to working with the new Secretary to strengthen and
improve this vital risk management tool for our farmers.
I will make just a quick comment about an issue that I have
worked on for years, and you already know my interest in this,
Governor. Payment limits are going to continue to be at the top
of my agricultural agenda, although the farm bill has been
signed now for a 5-year period of time. So I want to offer an
open door to my office in the future to discuss this issue, and
I am glad to hear anything you have to say about it.
As Governor, renewable homegrown energy was at the
forefront during your tenure as Governor. I am excited to work
with you and the Department to further promote alternative
fuels and focus on the commercial viability of advanced
biofuels, the next generation. With contributions to green jobs
and a cleaner environment, renewable energy will help decrease
our dependence on foreign oil and keep that money here in the
United States.
Finally, as you know well, U.S. agriculture is dependent
upon access to foreign markets. I hope to work with you during
this Congress to pass implementing legislation bills for our
pending trade agreements that will help level the playing field
for U.S. farm exports.
Once again, congratulations to you, Governor, and to Mrs.
Vilsack.
Thank you.
Chairman Harkin. Thank you very much, Senator Grassley.
Governor Vilsack, I have two things I have to do, first of
all to administer an oath that we have to have from all
nominees. Please stand and raise your right hand. Do you swear
or affirm that the testimony you are about to provide is the
truth, the whole truth, and nothing but the truth, so help you
God?
Mr. Vilsack. I do.
Chairman Harkin. Thank you very much. And, second,
Governor, do you agree that, if confirmed, you will appear
before any duly constituted Committee of Congress if asked to
appear?
Mr. Vilsack. Absolutely.
Chairman Harkin. Thank you very much. Well, Governor
Vilsack, again, welcome. I just couldn't be more proud than to
sit here this morning and to see you there and to contemplate
your being the next Secretary of Agriculture. I have admired
your work for so many years in Iowa, as I said, going back to
the 1980's and your leadership as Governor. I don't think
President-elect Obama could have picked a better person for
this position.
So welcome and, again, your testimony will be made a part
of the record in its entirety, and you may proceed as you so
desire.
STATEMENT OF THOMAS J. VILSACK, OF IOWA, TO BE SECRETARY, U.S.
DEPARTMENT OF AGRICULTURE
Mr. Vilsack. Thank you very much, Mr. Chairman,
Senator Chambliss, and members of the Committee on
Agriculture, Nutrition, and Forestry for the opportunity and
privilege to appear before you today. I particularly want to
thank my fellow Iowans--Chairman Tom Harkin and Senator
Grassley--for their kind introduction and, Senator Chambliss,
for your kind remarks as well. I have long admired your work
and service to our State and to our country, and I appreciate
your kind words today.
I also want to take this opportunity to acknowledge and to
introduce to the Committee and to proudly thank my best friend
and life partner, Christie Vilsack, who joins me today as she
has during every step of my public life: as the mayor of Mount
Pleasant, as a State senator, and as the Governor of the great
State.
Chairman Harkin. Would you stand up, Christie?
[Applause.]
Mr. Vilsack. Mr. Chairman, members of the Committee, it is
a great honor and privilege to be nominated by President-elect
Barack Obama to lead the Department of Agriculture at this
crucial time. The last Iowan asked to serve as Secretary of
Agriculture was Henry Wallace. He served with extraordinary
distinction during a period of historic challenge. And I am
very mindful of the high standard he set, the reforms he
initiated, and the deep compassion he had for those who work
our lands.
Today, our country and the Department of Agriculture again
face historic challenges. Farmers and ranchers experience
volatile markets while credit tightens. Small towns and rural
communities across the country continue to lose people and jobs
while critical infrastructure crumbles. These towns and
communities find it extremely difficult and increasingly
difficult to keep pace with the ever changing national and
global economy. Recent economic woes caused a dramatic increase
in the number of Americans needing the food assistance programs
under USDA jurisdiction. The Nation looks to our rural areas
for a sustainable source of food and energy at the same time
the world looks to America for leadership in combating global
climate change.
The health care crisis aligns squarely with the need to
promote more nutrition in our diets. All of this is happening
while the world population continues to grow at a rate that may
in our lifetime challenge our capacity to grow and raise enough
food. And if this weren't enough, a national treasure--our
forests--are under attack by uncontrollable wildfires and
invasive species.
All of these serious challenges require a compelling new
vision for the Department with the attention, dedication, and
leadership to make it happen. The President-elect has called
upon each of us to meet these challenges. If confirmed, I
pledge to work with all the energy I have to do my part to make
sure the Department of Agriculture does its part:
To do its part in administering a robust farm safety net
and create real and meaningful opportunities for farmers and
ranchers to succeed;
To guarantee that the communities where those farmers and
ranchers live can grow and prosper;
To help families that struggle to make ends meet each and
every day to put food on their table;
To place America at the forefront of efforts to
aggressively address energy independence and global climate
change;
To enhance the safety of our food supply and reduce the
incidence of foodborne illnesses;
To work with those who seek programs and practices that
lead to more nutritious food produced in a sustainable way;
And to preserve and protect our national resources--our
land, our water, and our forests.
I am under no illusion about the difficulty we face, but I
recognize the commitment that Congress has made with the
passage of the 2008 farm bill. USDA's job is to implement that
far-ranging piece of legislation promptly and consistent with
congressional intent. If confirmed, I commit to work
immediately to implement the 600 provisions and 15 titles of
the farm bill, including prompt implementation of the
Conservation Stewardship Program and the Disaster Payment
Program, and to leverage the financial commitment of the farm
bill and of the stimulus bill, if one is passed, with other
public sector and private resources to realize the full promise
of rural America.
None of this will be possible without 21st century
technology. We need to provide Congress with a workable and
realistic plan to implement the technology changes necessary to
bring this Department into the 21st century. If confirmed, I
look forward to working with you to do just that.
I will also take steps to enhance the role of the farm
sector and rural communities in solving the great environmental
and energy-related challenges our country faces. Toward that
end, I will work with you to expand opportunities for farmers,
ranchers, and rural communities to promote renewable energy
technologies like biofuels, wind, solar, and geothermal, and to
deliver the environmental benefits like clean air, clean water,
and fish and wildlife habitat.
One final comment, with the time you have provided to me
today. The Department of Agriculture was founded by President
Lincoln as ``The People's Department.'' The time has come for
this Department to be the Department of and for and by all the
people, by working hard to resolve the outstanding civil rights
claims in program and employment practices. We need to close
this chapter, and we need to begin looking forward. If
confirmed, my message will be clear: Discrimination in any form
will not be tolerated in this Department.
I want to close by finishing where I began--by expressing
my gratitude to the Chairman, the Ranking Member, and the
Committee for the chance to speak here today; to President-
elect Obama for the confidence he has placed in me to do this
job; to my family--Christie, Jess, Kate, and Doug--for their
love and support; and to the people of my home State for the
privilege they afforded me to serve them.
Thank you, Mr. Chairman.
[The prepared statement of Mr. Vilsack can be found on page
46 in the appendix.]
Chairman Harkin. Thank you very much, Governor, for your
statement.
In the interest of time, we will go ahead and start,
Governor, but we may have to interrupt any minute now to go
over and vote. And we will see if we can just roll it, maybe. I
do not know. We will have 5-minute question rounds for all the
members of the Committee. Maybe we will not even have to recess
for the vote; we will just change off back and forth here.
The vote just started right now, so if anybody wants to go
vote and then come back, then some of us will go after you come
back.
Mr. Vilsack. Mr. Chairman, I was hoping that the Committee
would just simply leave----
Chairman Harkin. Governor, again, my congratulations. I
will just start off with a couple of questions.
Senator Roberts. I love you. We will be back.
[Laughter.]
Chairman Harkin. Vote right, now.
I want to start off on health care reform. Now, you might
think, well, what has that got to do with the Secretary of
Agriculture? One of the big priorities of President Obama's
first year is health care reform and getting meaningful health
care reform through Congress.
We have a big role to play in that, this Committee and you,
the Secretary of Agriculture, in reauthorizing our child
nutrition programs--which we are scheduled to do this year.
That is the only thing, really, that we have to do this year,
is reauthorize the child nutrition programs. That is the School
Lunch, the School Breakfast, and the Women, Infants, and
Children Supplemental Nutrition Program.
We had a hearing on child nutrition last month to kick it
off. We covered how important USDA's child nutrition programs
are to the ongoing debate about major health care reform in
this country. I have been saying for a long time that our
health care system needs to be reoriented toward prevention and
wellness, and that is where USDA, through its child nutrition
programs, can play an important role as we work to reform our
health care system.
That being said, I am curious just again to get your
thoughts. Senator Daschle will be leading the new
administration's effort out of the White House on health care
reform. As I mentioned to him and to President-elect Obama on
more than one occasion, they also really have to look to the
Secretary of Agriculture, and this Committee, regarding how we
reform and revamp our child nutrition programs.
What role do you see for yourself in that? How can we
strengthen the ability of our child nutrition programs to
promote healthy diets and prevent chronic disease? That is kind
of an open-ended question. I just want your basic thoughts on
looking ahead this year to reauthorization of the child
nutrition programs.
Mr. Vilsack. Well, Senator, first of all, let me start off
by thanking you and the Committee and the Congress for the work
that you did in the farm bill to ensure that fruits and
vegetables are now going to be more readily available and for
the first time mentioned in the farm bill in a meaningful and
significant way. I think that was an important beginning first
step in the process.
I have met with Senator Daschle and talked to him
specifically about this issue, indicating my desire to partner
with him and recognizing that if we are going to address the
health care crisis is a meaningful and comprehensive way,
wellness and prevention have to be at the core. And, clearly,
at the core of wellness and prevention is nutritional eating.
We have a great opportunity to make a very significant
statement on that issue with the reauthorization of these
nutrition programs that impact, in effect, over 30 million
Americans.
We can work with our schools to ensure that fresh fruits
and vegetables are available. We can certainly begin the
process of expanding what has already started in this country
with local producers, establishing produce opportunities for
local consumers. One of the challenges will be to ensure that
people, A, know that this is available and, B, make sure that
there are distribution systems in place to provide the quantity
and the quality that will make this successful.
I am committed to this. I think the USDA does have a role,
an advisory role, a partnership with this Committee and
Congress, and if confirmed, I look forward to working with you
and the members of the Committee, offering our thoughts and
suggestions, and I can absolutely guarantee you that we will be
very aggressive in this area.
Chairman Harkin. Well, I appreciate that. I would just
again add, from my own viewpoint, that too many schools have
vending machines stocked with unhealthy options. Too many
lunchrooms have a la carte lines offering foods with too little
nutrition, but loaded with too much sugar, fat, and sodium. It
is unacceptable and it undercuts our Federal investment in
school meals.
I am heartened to have a President-elect who, while he was
here in the Senate, introduced legislation to require USDA to
set nutrition standards for competitive foods that are
consistent with the recommendations of the Institute of
Medicine. So I am looking forward to working with you and with
the new President in that area.
I want to ask you, Governor, about the Conservation
Stewardship Program, included in the 2008 Farm Bill, that will
enroll 12.769 million additional acres each year. We have to
get that program on track--you mentioned it in your opening
statement--so that producers can have an opportunity to enroll
in this fiscal year.
Do you know of any reason why the program could not be
available to allow producers to enroll soon, this crop year,
and certainly before the fiscal year ends in September?
Mr. Vilsack. Well, Senator, I want to be as responsive as I
can, but I also want to be candid with you. I need to have an
opportunity to get into the Department, if confirmed, to
basically find out what the barriers or the problems or the
concerns have been in terms of implementation. My promise to
you is to do this as promptly and properly as possible.
I recognize that this is not only an opportunity to expand
income opportunities for producers, but it is also great for
the environment, and for water quality, in particular; and it
also provides jobs, rural jobs. A lot of people sometimes
forget that when you involve yourself in these conservation
programs, somebody ultimately has to move the dirt or do work
on the farm. That is rural contracting opportunities.
So this is a job creator, it is great for the environment,
and it is an income opportunity for marginal land. I am very
supportive of this. We will do everything we possibly can. I
don't want to make a firm commitment on time because I am just
not sure about that. But I can tell you that it is going to be
as promptly and properly done as possible.
Chairman Harkin. Well, I appreciate that. I also want you
to know that we are working on the economic recovery package,
because as you said, that promotes jobs, puts people to work in
rural areas.
Mr. Vilsack. Absolutely.
Chairman Harkin. Senator Thune, I am going to have to go to
vote pretty soon, but go ahead, Senator Thune.
Senator Thune. Thank you, Mr. Chairman. I will try and hold
things down until you get back, but thank you for scheduling a
timely hearing. Governor Vilsack, thank you for your
willingness to serve America's farmers and ranchers and
foresters as the next Secretary of Agriculture, and
congratulations to you and welcome to the Committee. We look
forward to working with you.
Your nomination comes on the heels of a very historic
period in American agriculture, which has primarily been fueled
by the production of renewable energy and increased demand for
America's agriculture products. And there were two historic
pieces of legislation that were enacted in the last Congress,
one being the new farm bill, the other an energy bill, which
required a historic 36 billion gallons of renewable fuel by the
year 2022. And there are a lot of challenges when it comes to
implementing those pieces of legislation that we are current
faced with.
The renewable fuel industry is really struggling. We have
got a lot of plants, as you are aware of in your State, as well
as in mine, that have declared bankruptcy or furloughed
production. Those plants that are operating are very likely
operating in the red. After some good years in agriculture, now
we have got a time when we are faced with a lot of uncertainty.
Land, fuel, and seed costs continue to go up. Commodity prices
are down sharply. The global recession is likely to mean
weakening demand for corn, soybeans, wheat, and beef this year,
and most analysts are predicting a drop in net farm income for
the year 2009.
So you come into the job at a time when it is going to be
really important that we craft policies that will keep rural
America strong and keep America's energy supply secure. In that
vein, I would like to just ask a couple of questions, if I
might, with regard to the renewable energy industry. I
discussed with you in a previous meeting my concern about what
we refer to as the ``blend wall,'' and that is the wall that we
run into with E10 that is going to make it very difficult, I
think, for our ethanol producers to be profitable, to operate
in the black. That is a point where the supply of ethanol is
going to exceed the demand. And I think part of that is a
function of the fact that we only allow 10-percent blends.
I am very interested, as are many of my colleagues--I think
the Chairman as well--in seeing us move to 15 to 20 percent
blends, as well as to develop the infrastructure that is
necessary to keep the ethanol industry strong in this country.
So I guess I am curious as to what your thoughts are with
regard to E15, E20, and, if confirmed, will you work with the
Department of Energy and the EPA to approve higher blends of
ethanol in the near future?
Mr. Vilsack. Senator, thank you for asking that question,
and, first of all, thank you for giving us an opportunity to
reflect on the difficulties and challenges that the farmers in
our area of the country and, for that matter, all areas of the
country face. I think sometimes people don't appreciate and
understand how difficult it is to put a crop in, that you have
no control over input costs, you have no control over the
weather, you have little control over what the markets will pay
for your product. And so it becomes very, very difficult. That
is why it is very, very important for us to look for ways to
expand income opportunities for those who farm and those who
ranch.
One of those opportunities that was presented recently is
the whole biofuels opportunity. That has raised some serious
issues and some challenges, as you and I discussed in your
office, about whether or not there is a linkage between our
efforts to use some of our crops for fuel and rising food
costs. And I think that we have to take an opportunity to
address that, to educate people about the fact that there are
many, many reasons why food prices have gone up that are not
necessarily related to biofuels.
Having said that, to meet the demand, whether it is the
existing law or whether it is additional blend requirements, to
meet the law will be a challenge unless we do a better job of
accelerating research and development on a variety of second
and third generation feedstocks for biofuels. There are issues
involving the nature of those feedstocks, the processing
opportunities that they present, and challenges, the
transportation issues that are involved, the capacity to store,
storage issues that are involved. All of those have to be
looked at, and I think in a very accelerated way. We have to
begin the process of trying to answer some of those challenges.
I think USDA has a very, very important role to play in
making sure that we indeed provide the research and the focus
and the direction to meet whatever the requirements are.
I will also say that I look forward to working with Lisa
Jackson at EPA. We have had a conversation about this, and I
think she recognizes the important role that EPA plays
generally in agriculture. And we talked and discussed about the
fact that there will be someone with agricultural background in
the EPA, so we can have a good dialog and communication. So I
look forward to working with her, I look forward to working
with you, if I am confirmed, to really doing it right in terms
of second and third generation biofuels.
Senator Thune. [Presiding.] Among the many steps that can
be taken is the increasing of the blends, and I know there are
a number of issues that you will have to look at, and this
whole debate about food versus fuel, which I think has been
exaggerated by those who are opposed to increased biofuels
production in this country. But, frankly, moving toward next-
generation biofuels, cellulosic ethanol, is going to be really
important in terms of responding to those concerns and a public
that I think wants to see both objectives achieved, and that
is, increasing use of renewables but also keeping food costs at
a reasonable level.
That being said, as we move toward these other types of
biomass that we can use in production of biofuels, there are
some concerns that we have about EPA considering international
indirect land use changes and how they do greenhouse gas
analysis under the renewable fuel standard. And I guess the
question would be: How should EPA measure or model such
emissions and ensure that those land use changes directly
related to U.S. production of ethanol are considered during the
analysis? And do you agree that those types of analysis ought
to be based upon the most verifiable and sound data available?
What I am getting at, I know it is kind of a big-picture
type question, but we are very concerned about some of the
metrics that might be used to determine whether or not ethanol
and greenhouse gas emissions, life-cycle greenhouse gas
emissions, how they are impacted by crop production patterns as
we continue to grow the use of renewable energy.
Mr. Vilsack. Senator, I think that is one of the reasons
why EPA-designee Jackson came into my office to talk about the
need to have someone in her Department that would be able to
relate and be aware of and appreciate those challenges. I must
say that I have a lot to learn in this job, and you have
touched on an area that I have a great deal to learn, and I
hope that you will permit me the time, if confirmed, to learn
more about this.
Let me generally say there are many issues in agriculture
that involve this issue of data and sound science, and I think
it is important and necessary for us to indicate as a general
philosophy that what we should be doing and what we should be
looking at is making decisions based on sound data and sound
science; that we ought to be very comfortable with the data and
very comfortable with the science. It seems to me that is the
only way to make a good decision.
It goes back to the comments that I made in my opening
statement about technology. One of the concerns I have about
USDA's capacity to give you information or to allow you to do a
proper oversight responsibility that you have is that it may be
difficult for us to accumulate data, to obtain data, with 1980-
ish software. And so one of my focuses, if confirmed, will be
to try to get the technology to a point where we bring it into
the 21st century, we give you information and data that you can
rely on and that you can make--and that we can rely on to make
decisions and that we can use to hold people accountable for
the work that they do.
I recognize that there have been many plans and discussions
about technology, and the Department obviously has a
responsibility of providing you with a plan that is realistic,
that is priced properly, that is a timeline for implementation
that is reasonable. And if confirmed, I intend to make sure
that happens.
Senator Thune. Thank you, Governor. We look forward to
working with you, and I now will go vote and hand it over to
the Senator from Indiana. Thank you very much, sir.
Mr. Vilsack. Thank you, Senator.
Senator Lugar. [Presiding.] Governor, I appreciated very
much your opening statement and specifically that you talked
about communities where farmers and ranchers live. This is more
of a conversation than a question, but one of the remarkable
things about the building of the corn ethanol plants in my
State--and I am certain that was true in yours--was that it
literally revived a number of counties that had severe losses
of population over the course of time, a severe loss of tax
base for their schools, chambers of commerce becoming moribund,
and there appeared really to be no reason, despite attempts by
the State government from time to time, to reinvigorate
counties by inducing manufacturing plants or those involved in
high-tech or what have you to come to those communities. As a
matter of fact, those groups that invested in our State came
largely to the Indianapolis area or the Chicago-Louisville-
Cincinnati areas that bordered our State.
Suddenly a transformation occurred in a fairly short period
of time, and it was not just simply the really small amount of
revenue relatively that came in the plants but, rather, a hope
that somehow, because of biofuels and the additional uses of
agricultural products, something new could occur.
I know you have looked at this from the standpoint of your
entire State, as I have tried to. This is extremely important
to my State, and I am very hopeful that trend will continue.
The dilemmas are obvious for anybody involved in that business
presently, and that is the enormous change in the price of
corn. Going in 1 year from $4 to $8, coming all the way back
down to $3 is breathtaking in terms of not only of the ethanol
plants, but corn farmers such as myself and Senator Grassley.
We follow these things intensely and compare notes, really, on
our marketing of corn.
So as I go to meetings with people now involved with seeds,
with fertilizer, quite apart from corn farmers or soybean
farmers or those who are feeding livestock, to say the least it
is unnerving. As some farm writers have pointed out, these
meetings have many more farmers coming to them this year
wanting to know what is going to happen, and that is always a
question in agriculture.
I suppose the question I have of you is: How can the
Department sustain this hope? We have had mandates of gallons
of ethanol that must come. We have hopes that there will be a
higher percentage of ethanol beyond the 10-percent mix, and
that will be a very important factor presently. Soy diesel
plays a small part, and now the cellulosic ethanol situation of
the first plants that appear to be able to use some stock from
the fields without knowing the transportation problems, the
logistic support, quite apart from the whole marketing effort,
which has been jimmied at the filling station where oil
companies frequently have rejected the agricultural product
rather than it having side by side.
I am just wondering, as you have surveyed the scene, what
kind of force leadership can you bring not only to the
Agriculture Department but to the administration, to the
Cabinet, to the attention of President-elect Obama--who I know
shares many of these thoughts from his experiences in Illinois,
but at the same time is going to need some vigorous proponents
such as yourself who are able to be marketers for agriculture
in the broadest sense. And biofuels is certainly on the horizon
of something that remains very big for all of us in
agriculture.
Mr. Vilsack. Well, Senator, first of all, I would say that
I am not familiar with your farming operation, but if I were
you, I would be listening to Chuck Grassley. He does pretty
well for himself.
[Laughter.]
Senator Lugar. Mercy.
Mr. Vilsack. You ask a very critical question about really
the future of rural America, and let me begin by saying that
there is no simple, easy answer or a quick answer to the
question you have asked.
First and foremost, it is important and necessary for the
USDA to continue to look for ways to expand income
opportunities for farmers, and the biofuel area is one, but not
necessarily the only area, that can provide hope. The
Conservation Stewardship Program provides hope, and also
renewable energy. Wind in my State has been quite successful in
increasing income opportunities and also creating new
manufacturing jobs in smaller communities.
So, first and foremost, a combination of aggressive,
focused effort, particularly in the rural development area of
the USDA, can help create these opportunities or create the
impetus, partnerships, leveraging private resources, public
resources, working with State economic development groups. I
know these programs quite well, and I am going to encourage, if
I am confirmed, that we really look for opportunities to reach
out to these economic development folks and figure out ways in
which we can help them put the package together.
Second, I think it is important that we maintain the
infrastructure that exists today. You mentioned the challenges
today that ethanol producers face and ethanol production
facilities face. The margins are very, very small, and,
frankly, you are going to have to be a very efficient manager
over the course of the next several years to do well.
We can help with our research and development component by
figuring out ways in which the processing of ethanol can be
more efficiently done in a less energy-intensive way, in
getting more out of whatever feedstock we used. That is a
research opportunity. Likewise, we can begin to really focus
our research on the second and third-generation feedstocks and
all the issues that you mentioned--the transportation issues,
the storage issues.
We can work with States to promote best practices in the
marketing of ethanol. One of the things that we did in Iowa was
to offer a tax credit to the distributor of the ethanol
product, suggesting that when they reached a certain volume of
sales, they would qualify for an income tax credit. That is an
innovative and creative way. It resulted in competitive pricing
for ethanol. Consumers then responded to that competitive
price, and the ethanol industry grew.
I think it is also important and necessary for us to
recognize that it is not just corn and not just the Midwest
that needs to benefit. As Senator Chambliss suggested, we have
a very diverse agriculture in the country, and we need to look
for ways in which we can bring all regions of the country, from
our forests to other farm products, to figure out ways in which
we can create second and third-generation biofuels, and even
waste product, looking for ways in which we can replicate what
nature does, where there really isn't such a thing as waste in
nature. Everything has a purpose.
So there are exciting possibilities, and I think it is
important for the Secretary of Agriculture to be a champion for
those opportunities. This is an extraordinary Department. It
has extraordinary reach, and it is an opportunity to educate
people about what USDA does for them every single day.
So I would say research and development, the rural
development programs, making sure that the infrastructure is
maintained, and creating new and innovative ways to market the
product are some of the ideas that I think USDA, if I am
confirmed, will try to put into effect.
Senator Lugar. I know my time has expired, but I just want
to make a quick comment before yielding. That is, I note in the
USDA reports of the last couple of days that people are
dismayed that there is more corn left over from last year than
anticipated, more soybeans. The futures markets have not
crashed but, nevertheless, the price changes in the last 2 days
have been tremendously significant.
Now, this is in the face of a hungry world, and obviously
the trade system is so bollixed up that even though we are able
to produce, we are not able to get this food to people around
the world who need it. And I read that the Chinese are paying
their soybean farmers very high prices to relieve a political
problem, buying our soybeans at a much lower price, thus
providing some exports to us. It is a strange mix, and I
encourage you to take a look at how we get through the World
Trade Organization proposition, because this really ties up
American agriculture that wants to be productive and with a lot
of produce out there right now.
Mr. Vilsack. If I might, with your permission, Senator, I
would certainly agree with that and also suggest that it is an
opportunity for America to put a slightly different face on its
image worldwide by the use of our capacities, our technologies,
our knowledge, and our food products to basically put it--you
know, to challenge the world as the President-elect has
challenged us. He wants us to end child hunger in this country
by 2015. That is a challenge we should take seriously. There is
no reason why we shouldn't challenge the rest of the world to
work with us to do the same globally.
Senator Lugar. Thank you.
Thank you, Mr. Chairman.
Chairman Harkin. [Presiding.] Thank you, Senator Lugar, and
now I turn to Senator Chambliss.
Senator Chambliss. Thank you, Mr. Chairman.
Governor, my colleague on the House side, and actually my
Congressman who represents the 2nd District of Georgia, stopped
by a little earlier after my opening comments just to ask me to
convey to you his strong support of your candidacy. Even though
the House doesn't get to go through the confirmation process,
he wanted to make sure that you understood that he is a strong
supporter of your nomination.
Governor, as a Member of the Senate, I have been very
concerned that the administration has liberally interpreted
language in the farm bill and at times has gone beyond the law
as written and disregarded the accompanying report language.
For example, the final rule for the Direct and
Countercyclical Program and Average Crop Revenue Election
Program published December 29, 2008, makes a change to farm
bill commodity programs that was never intended by us when we
drafted the farm bill and passed it. The following is a quote
from the supplementary information contained in the rule: ``In
addition to changes required by the 2008 farm bill, this rule
provides that for the 2009 and subsequent crop years, crop
acreage bases will be determined with respect to land owned by
Federal agencies.''
The language itself expresses that this termination of base
acres is not a statutory requirement. Governor, last year,
Congress had to act to suspend language regarding the 10-base-
acre provision for 2008 because USDA ignored report language
that accompanied the farm bill. This additional requirement
takes us even further from the congressional intent.
Now, simply for the record, Governor, will you pledge to
adhere to congressional intent in implementing the 2008 farm
bill and, if there is a question, that you will consult with
members of this Committee?
Mr. Vilsack. Senator, that is a very fair question, and I
would say that it is my responsibility to do what is necessary
to promptly and properly implement the farm bill that you all
passed. I know you worked on it for 2 years. It is an
extraordinary piece of legislation. I know that it is important
to Members of Congress that whatever compromises and decisions
that were made to reflect the diversity of agriculture that are
reflected in that bill be carried out. And I think it is
important that what we do is consistent with congressional
intent, and I would certainly want to work with you and other
members of the Committee and the Congress to make sure that we
are following what your intent is.
I am not going to tell you today that there might not be a
disagreement from time to time, but I will you this: that if
there is, I will be available to respond; and if there is a
mistake or a problem, we will rectify it as quickly as we can.
Senator Chambliss. We did have a disagreement with the
current administration over this 10-acre-base issue, as I
alluded to earlier. Can we get your commitment to revisit that
issue?
Mr. Vilsack. You know, Senator, I think it is a fair
statement to say that when I get into office, if I am
confirmed, I have a lot to learn and a lot to review. And it is
my intent to become fully familiar with all the decisions that
have been made to make sure that as I go forward, the decisions
are carried out properly.
If there is a problem, I am happy to work with you to work
through that problem. I honestly, as I testify here today,
don't know as much as I need to know or certainly don't know as
much as you know about this issue, and I am at a little
disadvantage. But I will work with you. I commit to doing that.
Senator Chambliss. That is fair enough.
Again, just for the record, you and I have talked about
this issue, the fact that American agriculture is truly
American agriculture. And while the Midwest is often talked
about as the breadbasket of America, we have an awful lot of
production agriculture all over the country, whether it is in
the West or the Northeast or the Southeast. And you have told
me you are going to make sure that all segments of agriculture
are represented in the Department, and I appreciate that and I
appreciate your confirmation of that fact today.
Thank you very much, and, Mr. Chairman, I have got some
other questions, but for the sake of time, I am going to submit
them for the record and ask that the Governor respond to those
in writing.
[The questions of Hon. Saxby Chambliss can be found on page
134 in the appendix.]
Chairman Harkin. Thank you very much. It is the intention
of the Chair to allow second rounds of questions. I know some
Senators are at other hearings, other nomination hearings, and
they told me that they would be coming in perhaps later.
It has been the order of business of this Committee that
the Chair would recognize Senators in order of their appearance
here, other than the Ranking Member, of course, and that would
mean that Senator Grassley would be next. But, Senator
Grassley, Senator Casey has something he said he has to do, and
I wondered if you would mind yielding to him before that.
Senator Grassley would yield to Senator Casey for this
round.
Senator Casey. Mr. Chairman, thank you very much, and I
want to thank Senator Grassley. I have to preside this morning.
That is one of our duties here in the Senate. We cannot wait
for that freshman class to take over more of those hours.
[Laughter.]
But, Mr. Chairman, I want to commend you for your
leadership of this Committee in the 2 years that I have been in
the Senate and congratulate you on another tenure as Chairman
coming up and the work you do with the Ranking Member. We
appreciate that. We are grateful.
I do want to commend especially Governor Vilsack for taking
on this responsibility of putting yourself forward again for
public service. It has already been a remarkable career of
service, as mayor, as State senator, as Governor, and now as
the nominee for the Department of Agriculture, to run that
Department, at, I would say, a difficult time in our Nation's
history--tight budgets, economic crisis, the challenge of
helping our farm families and helping our farm economy. And we
are grateful that you are willing to do that at a difficult
time. I will not support your nomination because you have roots
from Pennsylvania, but it doesn't hurt.
[Laughter.]
Senator Casey. I should make a decision based upon other
factors. But I am especially grateful that your family is here,
your wife, Christie, and your family, and that you brought Doug
Campbell along with you, a Pittsburgher, who we are very proud
of, a good man. And I am also grateful that you have spent all
these years rooting for the Pittsburgh Pirates, even when
things have not gone well.
[Laughter.]
Senator Casey. We figure that your geographic proximity now
will help them win in the years ahead.
I wanted to, in the limited time that we have, raise two
issues--one which we probably will not be able to delve too
deeply into, which is child nutrition. There is a lot to talk
about there. But I did want to raise, first of all, the dairy
issue, which for me I tend to be a broken record because it has
got to be part of my middle name because of the challenge that
dairy farmers and families face across the country, but in
particular in Pennsylvania.
As you well know, Governor, dairy prices have fallen by
some 50 percent in just a few weeks. The latest projections are
that dairy farmers in Pennsylvania will lose $65,000 this year,
each one, on their milk due to unexpected and extremely low
prices. As you know from your roots in our State and from your
knowledge of Pennsylvania and the country, for our State
agriculture is our large industry, and the dairy segment of
that is the largest segment.
You know the issue with powdered milk, the reporting error
that cost $50 million for losses. We know that there is a
problem in the Department that was responsible for that. And I
would ask you on that, but also in a broader way, if you would
work with me and work with others to try to provide
reimbursement for dairy farmers, and also to take a look at the
statutory authority and the discretion you would have to
directly help dairy farmers. And I just wanted to get your
perspective on that.
Mr. Vilsack. Senator, you have alluded to a very serious
issue as it relates to one segment of agriculture, and it is
certainly not limited necessarily to Pennsylvania. As you well
know, there have been some very tragic circumstances in
California with dairy farmers who have been so stressed that
they have taken their own lives. This is something that is
reminiscent of what we certainly saw in the Midwest in the farm
crisis of the 1980's. And it is a serious consequence, and I
think it is important for us to look for ways in which, through
the USDA and the Federal Government, we can assist in relieving
some of this stress at this important time.
The problem is that when you get into these stressful
circumstances, then some people decide to liquidate. That then
creates a glut, and that further depresses prices. So we need
to figure out ways and strategies in which we can create some
sort of glidepath that basically provides stability in this
industry. And I am, if confirmed, certainly willing to work
with you and other members of this Committee, who I know value
this very much, to help figure out strategies and ways in which
we can create that kind of stability that is required.
I think it is also important--if I can just take your
question one step further, I think it is also important to
recognize the important role, again, that rural development
plays in providing opportunities that supplement and support
farm income. In my State in particular, I know that there are
an awful lot of folks who work off the farm as well as on the
farm. And as we strengthen rural communities, as we invest in
infrastructure, as we create healthier communities, we create
more job opportunities that in turn provide opportunities for
family members or even farmers themselves. That is not
necessarily true of dairy because it is a 24/7 job. But the
concept of a spouse or a child being able to work off the farm
can help supplement that income, and that is an important role
that USDA could play.
As to the specific question you ask about reimbursement, as
I testify here today, I am not as familiar with that issue as I
perhaps should be, and I don't want to make a commitment that I
can't keep. I hope you appreciate that. But I will, obviously,
by virtue of your question, if confirmed, get up to speed on
this quite quickly and be glad to visit with you about it.
Senator Casey. Thank you so much, and I know I am close to
being out of time, but I wanted to raise quickly--and, Mr.
Chairman, I will submit questions for the record as well, which
will amplify what I will ask you about on the issue of child
nutrition. But I know that, among other things this Committee
has done well, we have spent a lot of time and put a lot of
resources into nutrition generally. And I want to thank the
Chairman for that, and others.
President-elect Obama has made a commitment to ending
childhood hunger by 2015, a worthy goal and one that we should
all be committed to. Is there anything you can tell us about
changes with regard to policy in the Department of Agriculture
that you would want to make a priority? Or is there anything
that you have begun to focus on in that area?
Mr. Vilsack. Senator, I met with Senator Daschle just a
couple of days ago in an effort to send the message to him as
he, if confirmed, assumes the enormous responsibility of taking
on our health care crisis, my recognition and understanding as
a Governor how important wellness and prevention is to the
ultimate success of health care debate. The President-elect
challenges us, as you indicated, to end child hunger by 2015.
That also intersects in the same place that the health care
discussion intersects, which is nutrition. And in order for
nutrition to be advanced, it is going to be important for us to
continue to promote fresh fruits and vegetables as part of our
children's diets and, for that matter, as part of all of our
diets. That means that we need to look for ways in which we can
support those who provide those products and also support those
who provide them so that they can be locally purchased--locally
grown and locally purchased.
I think there are tremendous opportunities for us to re-
engage all of us in this effort. You know, my hope would be
that with the President-elect's leadership, we would not just
simply grow fruits and vegetables in rural communities, but
that we grow them everywhere, and that we make a serious effort
to market good eating habits as a way of helping your country,
if you will. I want to be part of that, if confirmed.
I think it is also important, as you reauthorize the child
nutrition programs, there is obviously a critical component
that USDA can play in providing advice and direction and a
framework that you might consider as to how those programs
could help move toward the President-elect's goal of ending
hunger.
And there is also, obviously, during these tough economic
times, assistance to food banks. If there are surplus products,
then we need to figure out ways in which we can get those
surplus products to food banks to people who actually need the
food.
You know, if you take a step back and you take a look, even
with the difficulties we face today, this is a powerful, rich
country. And none of us should be satisfied that there are
children going to bed hungry. They are the future of this
country, and if they are hungry, they will have more difficulty
learning. They will most likely get sick or sicker, which
creates additional problems. So this is something that needs to
be aggressively addressed.
Senator Casey. Thank you very much. I look forward to
working with you.
Chairman Harkin. Thank you, Senator Casey.
Senator Grassley?
Senator Grassley. Governor, once you are confirmed, I would
like to have you take a look at a letter that I sent to the
Department NRCS early in December. It deals with something I
know you know well about--the situation in Iowa. You have been
a champion for conservation in Iowa, and you know about the
flooding situation that we had. Iowa has some serious needs for
emergency watershed dollars that are there. I would like to
have you look into this and find out why more of our EWP money
has not been allocated to the States yet.
Mr. Vilsack. Senator, I will certainly--if confirmed, that
will be a question that I will be happy to ask and see if I can
get an answer for you.
Senator Grassley. OK. Thank you.
Mr. Vilsack. And I hope, if confirmed, that I do as good a
job as you have done in your career of responding to letters
and constituent concerns.
Senator Grassley. Well, thank you very much. I appreciate
that. And thank you for the good words about me. Thank you.
No. 2, throughout numerous administrations, the U.S.
Department of Agriculture has struggled with civil rights
issues. I think you spoke to this in your opening statement, so
that is a pretty strong statement you made. You have
acknowledged it as a challenge and will be working from day one
to resolve outstanding backlogs and claims. So I would like to
get--it might tell us where you are coming from if you could
tell us while Governor--and I don't remember from the times you
were Governor this specific issue, but were you ever challenged
at the State government level with civil rights complaints? And
how were they ultimately settled and what role as a leader you
might have had in that?
Mr. Vilsack. Senator, toward the tail end of my second
term, issues were raised concerning allegations or concerns in
employment practices in the hiring of minorities in State
government. We commissioned with the NAACP a study to determine
precisely what the cause or causes of these problems were. That
report was issued just as I was leaving office, and I know that
Governor Culver made a commitment to follow through on the
recommendations and changes in employment practices.
What I learned from that experience and what I would share
with this Committee is that discrimination comes in a variety
of forms, and most often when we think of discrimination, we
think of it in the form of very obvious discrimination. But
what is also, I think, the case is that there is sort of
implied discrimination, inherent discrimination in terms of how
people ask questions and how they interpret answers when they
are interviewing individuals for jobs. And I think we have to
be sensitive to that.
So from that experience, I am quite sensitive to the
employment practices issue within USDA, and one of the things I
hope to be able to do, if confirmed, is to send a very clear
message that we have to be very sensitive to all of these
issues and that we have to do a better job than we have done in
the employment area of making sure that opportunities are open
for everyone and that there is not some kind of implied bias or
prejudice that we may not even be aware of. We have to be very
aware of this, very sensitive to it.
I think it is also important for us to set very clear
expectations in all of the programming of USDA, that it is to
be made available to everyone, that everyone should have an
equal opportunity of participation. We want everybody to
succeed. We all benefit when that happens. And I think there
are technology issues; I think there is the need for clear
directives. I think you recognized all of this in creating the
outreach program in the farm bill. I am looking forward to
working with folks to create, if confirmed, an outreach and
advocacy program that makes sure that people understand what
the programs are, make sure that they understand precisely what
they have to do to be able to qualify to apply. And we need to
take a look at the application process. Is there some hidden
message in the way in which we make people apply for these
programs?
I can remember distinctly as Governor coming into office,
in the child health care program, and I asked to see the
application for the children's health insurance program, which
we call ``Hawkeye'' in our State. I was surprised to see it was
14 pages long. So I started filling it out. I have got a law
degree, I am not the sharpest pencil in the box, but I quit
about page 3. I thought, My gosh, I don't know the answers to
all these questions.
So, I mean, I think there is a lot that needs to be done to
send the message and to get the results that you all have
expected us to get for quite some time that you have not been
satisfied with, and you have every reason not to be satisfied.
And then there are the lawsuits. I mean, there are a
multitude of lawsuits, and having had some experience in class
action litigation, I mean, there is work to be done to get
these matters resolved and to have justice realized. And that
ought to be--the USDA ought to be about that. And if confirmed,
I am going to do everything I possibly can to make sure that
message is clear.
Senator Grassley. Mr. Chairman, could I please ask one more
question? And I will not come back for a second round then.
Thank you.
You probably know that I spend a lot of time is what is
called oversight here, and some of our information from
oversight comes from people that I honestly believe come to us
in the Congress when they have no other place to turn and
haven't been heard elsewhere. We call them ``whistleblowers.''
Sometimes that is used as a denigrating term. I don't use it
that way. I value candid, unfiltered information that Congress
gets about executive branch activities. Many whistleblowers
often come forward and face retaliation by agencies they work
for, and that retaliation may be as straightforward as being
terminated, and it could be cloaked as reassignment or shifting
of duties to kind of drive people crazy in their job. Either
way, this retaliation is exactly why Congress passed the
Whistleblower Protection Act of 1989 and countless other laws
containing such protections.
I would like to have--I know the word ``commitment'' is
probably difficult for you to deal with because you don't know
what you face, but could you give me sort of where you are
coming from that there will not be retaliation against
Department of Agriculture whistleblowers and instead work with
them to address concerns that they raise; where you might be
coming from in ensuring that every whistleblower is treated
fairly, and that those who retaliate against whistleblowers are
held accountable?
Mr. Vilsack. Senator, first of all, let me say that my hope
would be that we never have to have a whistleblower. My hope
would be that, if confirmed, we would run a Department where
employees who felt that they were not being treated fairly had
some avenue within the Department for resolution and that we
were fair and reasonable in trying to resolve difficulties.
If for whatever reason we fail in that effort, despite the
effort, there obviously needs to be a way in which you can do
your constitutionally required job of making sure that I am
doing my constitutionally required job. And I don't have a
problem with that, and I don't think we are going to tolerate
punishment or making it more difficult for people who tell the
truth. I don't think that is a very good signal to send about a
Government.
We will make mistakes, and I am here to tell you today
while I am concerned about making commitments, I can make this
commitment: We will make mistakes. But I hope that we learn
from them, and I hope that we are large enough to acknowledge
them.
Senator Grassley. I will end with one sentence, and it
comes from your use of the word ``truth,'' people expressing
the truth. The grandfather--I call him the ``grandfather of
whistleblowers,'' Ernie Fitzgerald, a Pentagon whistleblower.
He says, ``The only thing whistleblowers are guilty of is
committing truth.''
Thank you, Mr. Chairman.
Chairman Harkin. Thank you. Thank you, Senator Grassley.
Again, the list I have in order of appearance, next would
be Senator Leahy, then Senator Roberts, Senator Lincoln,
Senator Klobuchar, Senator Cochran, in that order.
Senator Leahy.
Senator Leahy. Thank you, Mr. Chairman. I want to thank you
and Ranking Member Chambliss for holding this.
Governor, it is great to see you. It is always great to see
you. And, Mrs. Vilsack, I am delighted about what you have done
on reading. My sister, Mary, runs an adult basic education
program in Vermont, and teaching people to read, especially at
an early age, is so important. I compliment you on that, and I
hope while you are in Washington you have a chance to do even
more of that.
You notice I say ``when you are in Washington,'' because I
fully expect you to be confirmed, Governor. I was pleased when
the President-elect announced that he was going to nominate
you. I think it is great. Of course, as you know, here we have
people with all kinds of parochial interests, but we also have
a general interest in the whole country in agriculture. And you
and I had a very good chat in my office, and I know dairy has
been mentioned. That is of significance in our State, but
organic is, too. I wrote the first Organic Production Act back
in 1990 when people thought it might be just a niche thing.
And, fortunately, my friend from Iowa here supported me on it,
as did others, both Republicans and Democrats, Senator Lugar
and others. It is now a $20 billion industry.
I am worried that in USDA the Department has not kept up
with probably the most rapid growing part of agriculture, and I
hope I have your commitment that you would make sure the
Department pays attention to the Organic Standards Act and
tries to promote organic farming.
Mr. Vilsack. Senator, I haven't shared this with everyone,
but I started out in my county seat law practice doing income
tax returns for farmers, and I can tell you, this time of year
brings back memories of folks bringing on grocery sacks full of
papers and receipts and calendars that numbers were written on,
dumping it on the desk and saying, ``Here is my income tax
information. I hope you do not charge me more than $25 for my
tax return.''
[Laughter.]
Senator Leahy. Sounds like Vermont farmers. Go ahead.
Mr. Vilsack. That may be universal, I suspect.
I learned how difficult farming is and how difficult it is
to make a living. And those of us who are consumers, we
sometimes forget that, and we sometimes fail to appreciate
that.
That led me to the conclusion that it was necessary in
policy to try to promote as many income opportunities as
possible for farm families, to give them a diverse menu of
options. And certainly you have mentioned the fact that organic
farming is a rapidly growing part of agriculture and a rapidly
growing part of people's diet and nutrition decisions. And we
need to recognize that, we need to support it, and we need to
celebrate it.
Senator Leahy. And, Governor, I think the thing that will
keep it working is if the standards are kept strict; otherwise,
the market, especially with a lot of people who are paying, in
effect, premium prices for organic food, they will say why do
it if there is no difference.
I think it is essential that the Department of Agriculture
be able to say these are the standards, they are being
implemented, but they are also being enforced.
Mr. Vilsack. Senator, I would agree with you. It is part of
the responsibility, if we are going to put our seal, if you
will, or our certificate on something and certify to you as a
consumer that it is what it is, it is important that it means
something.
Senator Leahy. My other question will be put in the record,
but there is one I wanted to ask while I still have time. We
have a broadband and loan guarantee program, rural development
has. It has not been fully utilized. I know in Vermont we have
a $100 million fiber-to-home project that could go into effect
immediately if they had the loan guarantees as the Upper Valley
of Vermont. It would create jobs, but it enables even more
jobs.
It cannot be like the old days before rural
electrification. I told you I still remember my grandparents
telling me in Vermont when they first turned a light switch on.
Now you wouldn't think of any part of the country without
electricity. But we can't have parts of the country without
broadband. We can create a lot of jobs in my State of Vermont,
you can in Iowa and elsewhere in rural areas if you have
broadband.
So I would hope that you will work with your rural
development department and say you have got the authority for
that program, let's get it out into rural areas where they do
not have broadband.
Mr. Vilsack. Senator, one of the things I am proudest of in
terms of what I did as Governor in terms of rural issues was to
aggressively promote broadband access, high-speed access. It is
a job creator immediately, obviously, as people install
whatever mechanism you ultimately decide to provide the access
in. Then it is also a job creator afterwards because it creates
opportunities for small businesses in the rural communities to
have access not just to a local market, but to a global market.
And that is the power of it. That is the beauty of it.
You know, people often don't realize how significant rural
communities can be in relationship to urban centers. We deal
with traffic congestion. We deal with population increases in
urban centers. One of the ways we can address that is by
creating vibrant rural communities where people feel
comfortable living and have all the amenities to take some of
the pressure off urban centers.
So this is a very, very important issue for your State, but
it is a very important issue for the country, and it is
important for us not to put broadband necessarily where there
is already broadband. That is fine. It brings the prices down.
But it does not address the issue that you have addressed,
which is that there are some parts of the country that do not
have it and should have it.
Senator Leahy. Well, thank you, Governor. I suspect you and
I will be working a lot together during the time that you are
Secretary.
Thank you very much, Mr. Chairman. Senator Chambliss, thank
you.
Chairman Harkin. Thank you, Senator Leahy.
Senator Roberts.
Senator Roberts. Well, Governor, thank you for being here
today and thank you for meeting with me previously to discuss
the future of the Department of Agriculture and agriculture
program policy.
Mr. Chairman, I don't know if there has been a coup or if
Harry Reid has informed you, but apparently I have the gavel. I
have the gavel, sir, and----
[Laughter.]
Senator Leahy. The Sergeant-at-Arms wondered who stole
that.
Senator Roberts. Well, it was just here. It magically
appeared, and I didn't know whether Senator Chambliss had
anything to do with that or not. But I am going to make sure
that you have it, sir. I have ridden point, and I have ridden
drag. Point is better with that gavel, but that is beside the
point.
Chairman Harkin. Well, I just thought you were so speedy.
You are always so speedy. And since you chaired the House
Committee, I figured you would be back here before everybody
else, and so we just sent it down for you to take charge,
because you are so fast on everything.
Senator Roberts. We were walking a slow pace with a fast
schedule.
Governor, first of all, thank you. Because everybody in
agriculture mentions exports, and I do want to thank you from
the standpoint of Kansas for allowing us the exports of your
best basketball players to Kansas University and to Kansas
State. I really appreciate that.
Mr. Vilsack. Senator, this is not getting off to a good
start.
[Laughter.]
Senator Roberts. You are going to find that the Department
is a marvelous place, and it is full of outstanding staff, full
of folks who have dedicated their careers to providing rural
America with options and opportunities. Ag policy today, as we
discussed and as you have stated in your commentary, covers a
swath of programs that are often subject to intense and
sometimes unwarranted criticism. You have quite a challenge
ahead of you, but I am sure that you are up to it.
I can remember one of the press conferences where the
President-elect said we have to control spending in relation to
the stimulus bill. And they said, ``Well, where would you
cut?'' That, of course, is the first question in the debate.
``Where would you specifically cut?'' And he said, ``Well,
there are always ag subsidies.'' I think that is just sort of a
given, you know, for anybody that is not familiar with
production agriculture.
So we not only need a Secretary, we need a spokesman, we
need a champion, and we need an educator. You responded to that
in our personal meeting, and I hope you will continue to do
that.
We do face historic challenges. We have a saying in cattle
country that when the weather is rough, the trail boss is only
as good as the cowhands that ride with him. And I think you
will find that with this Committee. We are probably one of the
least partisan committees in that either we have to hang
together or hang separately. And that is about the way it is.
There is a lot of criticism of agriculture recently, much
of it coming from folks who either do not understand or do not
appreciate what I call production agriculture. And this gets
into a definition that you find in the press a lot today and in
commentary today extolling the virtues of the ``small family
farmer.''
Now, I am going to be a little sarcastic here, but with all
due respect to small production agriculture and what we have
been talking about, more especially the produce that the
farmers bring into the county seat and you can touch and feel
and look in the eye your own farmer and you can see the
produce, I think that is fine. But that small family farmer is
about 5-foot-2--I am looking to see if Mr. Leahy is still
here--from Vermont, and he is a retired airline pilot. He sits
on his porch on the glider reading Gentleman's Quarterly. He
used to read the Wall Street Journal but that got, pretty grim.
Then his wife works as a stockbroker, downtown. And he has 40
acres, and he has a pond, and he has an orchard, and he grows
organic apples. Sometimes there is a little more protein in
those apples than, people bargain for, but he is very happy to
have that.
Then we have something called a production agriculture
farmer. Now, that person is an Iowan. He has 2,000 acres and he
farms with his Dad. Two brothers have gone because they can't
really sustain that on the farm. His counterpart in Kansas, in
my part of the country, has 10,000 acres, and his tractor costs
about $350,000. I mean, it is amazing in terms of the cost. But
these folks are the folks that produce the food and fiber for
America and a troubled and hungry world. And I hope that given
all of our support for organic agriculture and for specialty
crops and all of that, which I am totally for, that we do not
ignore the person who really produces the food and fiber for
this country. And I hope you are a champion in that regard.
There are some that want to change the mission of the USDA.
Some think that the Department should be called the department
of food or nutrition or hunger or, really, I think what they
want is a department of anything but agriculture. And I just
don't think, again, that we should lose sight of the fact that
our farmers and ranchers do produce the food and fiber that now
we desperately need worldwide.
Our commodity programs are often criticized and seldom
praised by those who have neither worked in a field nor whose
livelihood depends on the weather. But for those that do, these
programs are indeed necessary. I think others have said that.
We must be fiscally responsible and frugal if we are going to
compete in the global marketplace. And these programs only
represent a mere one-quarter of 1 percent of Federal spending.
I think hopefully that you and your Assistant Secretary
nominees understand and appreciate what our producers go
through. I know you do. They must recognize that American
farmers and ranchers do actually produce the safest, most
abundant and affordable food supply in the world. Speech over.
Can you assure me, when you and President-elect Obama are
considering nominees for your ag posse, that you will make this
a top concern and that you will whisper these not so--well,
they are not sweet nothings, they are sweet somethings--in the
ear of the President-elect?
Mr. Vilsack. Senator, again, hearkening back to my days of
practicing law in the 1980's during the farm crisis, I had an
opportunity to represent a lot of those production agriculture
farmers you just referred to. These are good people. These are
hard-working people. These are folks who have a value system
that is not just important to them; I would argue it is
important to us, to this country. It is about family. It is
about faith. It is about community. It is about hard work. And
it is about getting up every morning recognizing that what you
do doesn't just impact your family and doesn't just feed your
family, but it feeds a lot of families. Agriculture is a very
complicated business and a very sophisticated business, and
that sometimes is not recognized.
So, first and foremost, let me tell you that I do
understand and appreciate the role that anyone in Government
has to educate citizens about what we do in Government and who
we work for. Let me also say that I do appreciate the diversity
of agriculture, not just the geographic diversity but the
diversity of kinds of agriculture, and that it is the job of
the USDA to be responsive and representative of all of that
diversity and to be supportive of that diversity. And that is
what I expect the folks who will be working with me to
understand and appreciate and do every day.
Senator Roberts. I appreciate your comments, and that was a
very eloquent statement. Just one more question, Mr. Chairman.
I want to talk about crop insurance just a minute and how
vital it is to our producers, and I think that Senator Grassley
stated this. I stated this to you when you visited with me, and
I know the distinguished Chairman knows this. There are more
crop insurance companies in Iowa than in any other State, and
they really provide vital assistance to producers when they are
going through tough times, whether it be falling crop prices,
weather or whatever, and our Kansas producers experience the
same thing.
The folks on the front line of this program, a lot of hard-
working agents on the ground, not only explain to producers
what coverage is needed on their operations, but also make sure
that loss claims are processed quickly.
Now, Governor, we are sitting here in Dirksen G50, and this
is the scene of the great Ag Conference Committee that produced
the 2008 farm bill. It was a little unusual. The Chairman and I
were a little startled to see that we had 61 members of that Ag
Conference, where we usually have about 20. I made the comment
when the person allegedly in charge in the House made four
speeches and said four times he didn't know why he was there. I
also made the comment that it looked like the bar scene from
``Star Wars,'' but that may be a little drastic. But there were
a lot of people there that weren't involved in production
agriculture. I have no problem with the programs that they
want. But they actually acted like Lizzie Borden, and after
they gave us one whack, why, they gave us about 41 others. And
we paid for other programs to the tune of $6 billion, including
salmon recovery in California, and I didn't like that. And I
think if these programs are justified, we should fund them, but
not at the expense of crop insurance.
Unfortunately, that is what we did. That is what we had to
do under PAYGO. I am not blaming anybody on this Committee. I
am certainly not blaming the Chairman because he knows the
value of crop insurance. But we had a lot of other people in
the room, and all of a sudden crop insurance became a bank.
I would sure like your assurance that will not continue
because that is a very vital and needed program.
Thank you.
Mr. Vilsack. Senator, I would be a bit remiss if I tried to
guarantee or commit the actions of any Member of Congress. I
can't do that. But what I can do is this: I can recognize and
state the necessity of having a crop insurance program as a
risk management tool among many risk management tools that have
been incorporated in all of the activities of this Committee.
It is important to have the Crop Insurance Program. It is
important to do what you all want us to do, which is to
implement the Disaster Payment Program in concert with the Crop
Insurance Program, and it is important to do it in a way that
is beneficial to producers and fair to taxpayers. And I am
committed to doing that if I am confirmed.
Senator Roberts. Thank you.
Thank you, Mr. Chairman.
Chairman Harkin. Senator Lincoln.
Senator Lincoln. Thank you, Mr. Chairman, and thank you,
Senator Chambliss, for again bringing our Ag Committee
together. And welcome, Governor. Congratulations to you for
your nomination to fill the Ag Secretary position in the new
Obama administration. We are excited to have you here and are
looking forward to being able to work with you.
As you touched upon in your opening statement, Governor, it
is a critical time for our country. We face an economic crisis
of historic proportions and ramifications which, I think, will
very likely challenge USDA on almost all of its fronts.
On hunger, the number of food-insecure households will
continue to increase, as it has in the past few months. We have
seen it in Arkansas, and I am sure my colleagues have seen it
in their States. I certainly look forward to working with you,
Governor, should you be confirmed, on the child nutrition and
the WIC reauthorization, which is so critically important to
States like mine, and many others.
In agriculture, in the past year producers have seen the
bottom fall out of the commodity markets. They have been hit by
natural disasters in my State and in other States--your State
as well--and have experienced record-high costs of production.
And to add to their difficulties, the rules of the 2008
farm bill have not yet been finalized, and as Senator Chambliss
mentioned, some of what is being proposed is completely out of
the ball park, quite frankly, from what our intent was when we
met in that ``Star Wars'' barroom to come up with that farm
bill.
It was a very, I think, compromising situation where we all
were willing to compromise to come up with a good package that
reflected the entire country. Many of us gave in areas, but we
were fortunate that our colleagues understood that we had needs
in our own specific areas.
So it was a very delicate compromise in terms of what we
came up with in that farm bill. But to have the administration,
the current administration come up with rules that have nothing
to do with what our intent was is extremely frustrating, but it
is also going to be enormously complicating the producers that
are already out there trying to figure out what they are going
to do with this crop year.
So we hope that you will work with us that and understand,
again, the way that we come together to both recognize and
respect one another's diversities and understand the importance
of what we did in that compromise and hopefully work with us to
see that it is implemented in a fair and just way.
You are well aware our food security, conservation of our
natural resources, rural economic vitality, and increasingly
our energy independence are all tied to the success of
America's agriculture and these hard-working farm families
across all of our States. And I really do look forward to
working with you to ensure that we continue to promote policy
that effectively supports the diversity of agriculture we have
in there.
As Senator Roberts mentioned, we are looking for a
champion. We are looking for someone who is going to really
recognize the hard work, the dedication, the pride that exists
in all of our farm families, not just a few of them in a few
States that do something maybe a way that is familiar to you,
but to all of our farm families.
I come from one. I come from a seventh-generation Arkansas
farm family, and I can certainly express the unbelievable pride
that our family has had through the years of being able to not
only be productive but to also have tremendous respect for the
environment and respect for their Government and what their
Government at USDA asks of them in terms of reporting
requirements and meeting regulations, like the Clean Air Act or
the Clean Water Act--a good sense of pride of knowing that
Government is going to work with them to really do what we all
can do the best that we can do.
So we look forward to working with you, and I think, what
we all want to do is help ensure that the blessings of American
agriculture are here for future generations and that there is
something we can share with the rest of the world. And we are
looking to you for that championship at USDA.
Just a couple of questions. There is no other country in
the world that does have such an affordable, safe, and abundant
supply of food. One key reason is that the food is produced in
all corners of our Nation and there is great diversity among
those crops. Another reason is our country's proven farm policy
and the ability for all facets of agriculture to come together
and really rally behind a cohesive farm bill, as we have talked
about. Whether it is wheat farmers in Kansas or rice and cotton
farmers in Arkansas, sugar growers in Minnesota, cotton and
peanut growers in Georgia, or corn farmers in your own home
State, we all have to work closely to ensure America's security
of food and also maintain our trade surplus, which really the
only surplus we have in trade right now is in agriculture.
Maybe you might speak just a few moments about how you are
going to work with and represent all of the growers across the
country, especially those crops that you might be less familiar
with.
Mr. Vilsack. Senator, let me first of all start by just
making a comment in response to your comments generally.
You mentioned the food assistance efforts, and I would
just, as you well know, point out what a stimulating impact
they can have not just on providing food to families but also
encouraging the economy to grow and expand. There have been
studies that suggest for every dollar that you spend in food
assistance, you actually generate $7 in the economy, and that
is something to keep in mind as you deal with the challenges of
a tough economy.
My job, as you have so well stated, is to represent
virtually every aspect of agriculture in all parts of the
country, and so let me say that I think that there are a lot of
parallels and a lot of similarities. Regardless of where you
farm or ranch, it is always a difficult struggle because so
much of what you do, you have no control over.
As I mentioned before, you don't have control over input
costs; you don't have control over the weather; you don't have
control over an invasive species that may come in without any
fault of yours. You have no control over somebody doing
something in one field that contaminates or creates
difficulties for you in another field. So you have very little
control, so it is very difficult.
Recognizing that there is a similarity in agriculture,
regardless of whether it is in Arkansas or Iowa or Georgia or
Wyoming or wherever it might be, I think is important to
convey, and I intend to convey that. I appreciate how difficult
it is. I appreciate how important it is.
I think it is also true that whether you are a cotton
farmer in Georgia or you are a rice farmer in Arkansas, you
ought to have multiple opportunities that the USDA supports so
that you can make a living for your family. So that means
aggressively promoting the Conservation Stewardship Program as
it would be utilized in the best way in your State, which may
be different than it might be in Iowa.
It means aggressively promoting export opportunities and
using all of the tools in our Foreign Agricultural Service to
promote American products to make sure that we are getting a
fair deal on the world markets and to address any concerns that
our trading partners may have about our quality or quantity.
It means using research and development to create and find
alternative uses for products that we currently grow, opening
up additional markets, or figuring out ways in which we can
produce it for less or more efficiently. Also, the opportunity
is absolutely countrywide for a discussion about climate change
and the role and impact that agriculture generally will play in
climate change. How can we reduce the carbon footprint of
agriculture? What research and development can we provide,
regardless what kind of farming you have? Versus how can we
utilize our farm fields and our forests as carbon sinks, as
depositories for carbon, as creative ways to reduce our carbon
footprint nationally and globally? And then how do we use our
technology, our knowledge, our food to put a different face of
America to the rest of the world?
I mean, there are multiple opportunities here, and USDA has
to do it all.
Senator Lincoln. Well, we are looking forward to working
with you. Just on two of those that you have mentioned, I do
have quick questions.
You mentioned crop insurance. It is a very valuable tool
for many farmers around the country, including in your home
State of Iowa. In the 2008 farm bill, when we did have those
compromises in the conferences we met, we added a new standing
disaster program that complements the Federal Crop Insurance
Program. Unfortunately, crop insurance and now this new SURE
Disaster Program do not meet the risk needs that we have of
rice farmers in Arkansas and in other States. Our capital
expenditures are a tremendous risk that our farmers put out up
front. The hurricanes this past year that affected crops as far
north as Arkansas evidenced the shortcomings of these programs
as they related to rise crops and rice growers.
But I do believe, Governor, that an aggressive effort by
the new administration to use some of their existing
authorities in the development of effective and affordable crop
insurance products for rice would address this hole in the
system, helping us move away from costly and unbudgeted, ad hoc
disaster programs that nobody wants to have to go through.
I hope that you will commit to working with me and others
in the Congress that represent rice-growing States, and
certainly our rice growers across this country, to actively
pursue this goal. If crop insurance is the way that people feel
it necessary to go, let us make sure that it works for
everybody. And I think you have the authority or you will have
the authority at USDA to be able to work with us to make that
happen. So I hope that we will have your commitment on that.
The next thing is trade. When the Doha Round negotiations
began, there was a general agreement among farmers and ranchers
that a new agreement could offer greater market access for
American farm goods, even though it was understood that we
might have to make some concessions in the area of our domestic
support. But, unfortunately, since negotiations began,
ambitions for any meaningful market access have almost
completely dropped off--dropped off deeply. I mean gone. And in
my judgment, unsustainable cuts to domestic programs and
domestic support are still on the table.
I would like to know if you are going to work with Congress
to ensure that any new WTO agreement is a net plus for all of
U.S. agriculture and that we do not start out in the red for
American agriculture in any agreements or discussions that we
have. And I want to thank you for answer to Senator Casey on
children's hunger, ending child hunger. As one of the co-chairs
and founders of the Senate Hunger Caucus, it is incredibly
important. But those two are important to me as well.
Mr. Vilsack. Senator, let me just comment briefly on your
comments. Agriculture is important to trade and trade is
important to agriculture. I think you start with that basic
premise.
I think you also recognize, or at least I certainly know
you do, and I certainly recognize, after having attended the
WTO hearings and meetings in Seattle in 1999 and watching
people talk about agreements on computers and manufactured
goods with relative ease, and then having complete barriers
whenever discussions of agriculture entered the conversation.
And it impressed upon me how much culture there is in
agriculture and how significant that is, since 170-plus
countries actually grow or produce something, and it is central
to who they are. And it is central to who we are in this
country. We are no different than any of the developing
countries that have concerns.
I think it is important for USDA to be aggressively engaged
in all of these conversations and discussions to protect the
interests of American farmers to make sure that they are not
bargained away without knowing the full ramifications of what
is being discussed. I have a lot of confidence in the U.S.
Trade Representative designee, Ron Kirk, to understand that.
But I think it is incumbent upon us to be there as a partner
with him and others who are engaged in these discussions. I
think it is an important role. I see it as an important role.
And I look forward to working with you on that and on other
issues.
In terms of crop insurance, let me just say that, first of
all, as I said earlier, it is an important risk management tool
that you recognize, and what we need to do is we want to make
sure that how we use this tool is good for producers.
Senator Lincoln. All producers.
Mr. Vilsack. All producers, and is good for the taxpayers.
And that is sometimes a delicate balance, but we need to find
it. And as you say, the benefit of finding it is that it can
significantly reduce the ad hoc disaster payments that often
occur when weather conditions result in the loss of a crop and
can devastate a family and a community.
Senator Lincoln. Thank you.
Thank you, Mr. Chairman.
Chairman Harkin. Thank you very much.
Senator Klobuchar.
Senator Klobuchar. Thank you very much, Mr. Chairman. Thank
you, Governor. As your neighbor to the north, I welcome you and
have been able to see firsthand from not too far away your
successful tenure as Governor. And I am sure we will be calling
you ``Secretary'' soon. I try to avoid any Iowa jokes.
Mr. Vilsack. Thank you.
Senator Klobuchar. Minnesota is big on Iowa jokes. But I
just couldn't avoid the one about what is the best thing that
comes from Iowa? Interstate 35W.
[Laughter.]
Senator Klobuchar. But then I would amend that to include
Senator Harkin and you, of course.
You know, Minnesota shares a lot, of course, with your home
State, and we have worked very well with Senator Harkin and
Senator Grassley on the many agriculture issues. We are fifth
in the country for the largest agriculture producing State. We
have more than 79,000 farms in Minnesota, so the Department of
Agriculture's actions are of tremendous importance to the
people of our State, for everything from conservation to
commodities to high-speed Internet access to rural water loans.
So I am very glad that you have been nominated for this
position because of your knowledge of how complex the issues
are facing rural America.
I know that Senator Thune talked to you about the ethanol
blend issue. It is something I have been working on with him
and a few others. I think it is very important that we keep
this infant industry going. I think that there will be a
transition in the industry to cellulosic ethanol, and I am very
interested in that as well. But I think it is very important
that we make sure that we do not pull the rug out from under
what is so promising of the biofuels industry.
One of my questions is along that line in that the 2008
farm bill included a provision called the Biomass Crop
Transition Assistance Program. It offered a system of
incentives for farmers who want to be pioneers in the next
generation of biofuels and are willing to take the risk of
growing energy crops. I want to know if you are on board with
that idea and how quickly you think it can be implemented. I
suppose you will want to wait until you get in there, but we
are very anxious to get that started in our State.
Mr. Vilsack. Well, first of all, Senator, I am smart enough
to know that I shouldn't respond with any Minnesota jokes.
Senator Klobuchar. No, no. I would like you to do that.
[Laughter.]
Senator Klobuchar. That would add some levity. I would like
that, Governor. I can bring that home.
Mr. Vilsack. I will leave that up to the Chairman who has
power. I don't have any.
In terms of the biomass and bio-crop/biofuel issue, let me
say that the farm bill contains a wide variety of programs that
are designed to incent and develop and create and support new
ways to produce biofuels, support for existing ways to produce
biofuels, new ways to market biofuels. All of that is
important, and all of it has to be focused and directed.
This is an industry that is in some difficulty. Margins are
quite small, even for the best producers. It is an industry
where the smaller production facilities are really challenged,
and some consolidation has taken place and may very well
continue to take place. But it is important to continue to
maintain the infrastructure because if you are going to
transition at some point in time to cellulosic ethanol, you
have to have the capacity to produce it. And you don't want
that hundreds of millions of dollars, billions of dollars that
has already been invested not to be fully utilized.
And so there are many missions for USDA as it relates to
biofuels, but I can tell you that it is my desire, if
confirmed, to make sure that we are very disciplined, we are
very focused, and we are very aggressive in promoting all of
the programs, because they are all important. You can produce
all the biofuel in the world, but if you don't have a market
for it, it is not going to work. You can have a great market,
but if you can't produce it, it won't work. You can have a
market and produce it, but if you can't transport it or you
can't get it to where it is going to be utilized, it won't
work.
So you need a comprehensive approach utilizing all of the
programs and, if confirmed, I am committed to working on that.
Senator Klobuchar. Very good. We also have been doing some
ground-breaking work at the University of Minnesota on food
safety, and time and time again, our university is the one that
figures out if there is a problem, including this latest
salmonella in peanut butter at the University of Minnesota.
What are your thoughts on the food safety issue? And do you
have some plans of how you think we need to reform our system?
Despite what we know, that there are many, many safe foods and
safe processes in our country, but clearly, there have been
some issues lately, and I wondered what your thoughts were on
that.
Mr. Vilsack. You know, one of the most important jobs of
the United States Department of Agriculture is to work in
partnership and cooperation with other Federal agencies to
ensure that Americans do indeed have not just an ample supply
of food but that it is indeed safe. As science continues to
expand our knowledge about pathogens and other challenges to
the safety and security of our food supply, we need to make
sure that whatever our system is for ensuring the safety of the
food supply is consistent with the science.
And so what I perceive as a need for us to modernize our
inspection and surveillance systems so it is focused on
prevention and mitigation--prevention in terms of finding out
precisely what causes these difficulties and preventing it to
begin with; and mitigation, being able to quickly determine
there is a problem and contain it.
You mentioned the peanut butter issue. It is interesting
that this peanut butter was sold in just a small handful of
States.
Senator Klobuchar. Exactly.
Mr. Vilsack. But somehow 25, 23, 24 States are now
involved. So it poses the need for serious attention to
mitigation. So my hope is that, A, we can establish a 21st
century system using the best available science; and, B, that
we can do a better job of coordination and cooperation with
other Federal agencies that are involved in this so that we
have as seamless a system and as efficient a system as
possible.
Senator Klobuchar. Thank you. A few unique Minnesota
issues. The sugar policy, of course, we have 30,000 jobs in the
Red River Valley between our State and North Dakota, and we
have seen that as a success; it is zero on the Federal budget.
And hopefully you will be supportive of that as we go forward
in the implementation of that policy.
The second thing is the Forest Service part of your job. I
am not sure if anyone asked about that, but in Minnesota, as
you know, we have a lot of trees, logging. My grandfather was
not just an iron ore miner. He was also a logger. And I have
heard from people in northern Minnesota, both loggers as well
as environmentalists, of the concern about the budget for the
U.S. Forest Service. We have seen the part of the budget
Chairman Harkin devoted to firefighting because of the
increased fires we have seen across the country, some in part,
I think, due to climate change--and I going to the EPA
confirmation hearing right after this. The part of the budget
devoted to fire fighting has gone from 20 to 50 percent, taking
away critical resources for things like forest management that
could be used to help manage the forests.
Any thoughts on this?
Mr. Vilsack. Senator, first of all, the Forest Service is
an important and integral part of this Department, and it has a
multitude of issues and a multitude of missions. It not only
provides timber, as you have alluded to, but it is a great
source of recreation and opportunity for people. It is a
national treasure. It is also a reservoir. A lot of people
don't realize that our forests basically provide and assist in
providing water, clean water to 60 million Americans. It can
and should and ought to be an integral part of whatever climate
change policies we adopt. So very important.
I would say in response to your question a couple of
things.
First, I think it is important for us to have a very
strategic plan as to how we are going to approach the
management of our forests so that we can do as good a job as we
possibly can preventing these enormous fires that have consumed
so much of the budget, as you have alluded to.
Second, I look forward, if I am confirmed, to working with
this Committee and with the Congress and with the
administration to see if there are ways in which we can do a
better job of protecting the management budget of the Forest
Service so that it can do what it is supposed to do, which is
to manage the forests, which in turn will reduce the risk of
the fires that we end up paying millions and millions of
dollars for.
Senator Klobuchar. Exactly.
Mr. Vilsack. And, finally, my hope is that we can work in
partnership with local communities and to reach out to local
communities to develop a better relationship so that we know
what they are planning and doing and they know what we are
planning and doing and so that there isn't inconsistencies or
difficulties or we create situations that raise the risks
substantially of expensive fires.
So it is a very important aspect of the Department and one
that I am absolutely committed to working on. It is very, very
important.
Senator Klobuchar. Well, thank you. And, again, Iowa jokes
aside, I want to tell you how happy I am that you were
nominated. I think I called and told you I actually had a bad
dream about this, that we had an Agriculture Secretary
nominated, Chairman, and I had never heard of their name. And I
woke up in terror that we were not going to have a good
nominee. And we certainly got a very good nominee in you,
Governor, and I look forward to working with you. And I truly
believe having--I visit all 87 counties in our State every
year, and it takes me to a lot of rural parts of our State--
that there is just so--there are challenges, but there is so
much opportunity and optimism out there, particularly about the
new President's plan with energy. And I talked about biofuels
today, but you know that extends to wind and solar and all
kinds of things, and that the real action, if we can get the
goods to market and the transportation system right, there is
going to be a lot of action in our rural areas. And I look
forward to you helping to lead that effort.
Thank you.
Mr. Vilsack. Thank you, Senator.
Chairman Harkin. Thank you very much, Senator Klobuchar.
I just might say to my friend from Minnesota that I have
often wondered about why Minnesotans always say that the best
thing that comes out of Iowa is Interstate 35. Well, it finally
dawned on me why they say that. It is because it is the main
avenue of escape.
[Laughter.]
Chairman Harkin. For so many Minnesotans during the winter
when they want to come to Iowa for a little warm weather. And
we are happy to oblige.
Senator Klobuchar. You mean just because it was 25 below
last night, Mr. Chairman, that they want to go a little south?
Chairman Harkin. That is right.
Mr. Vilsack. Senator, now you know why I asked Senator
Harkin to respond to that.
Senator Klobuchar. Well, yes, and he does have the gavel,
so I will now end. Thank you.
Chairman Harkin. I thank you.
Senator Cochran, thank you. You have been very, very
patient, and I appreciate that very much.
I say to my friend Governor Vilsack, I know you deal with
all of the various people here and the experts here and in the
House. I have five former Chairmen of this Committee or the
House Agriculture Committee who have all the expertise here
that I am very cognizant of, and they have a great wealth of
expertise and knowledge on agriculture, and none more so than
Senator Cochran from Mississippi.
Senator Cochran. Well, Mr. Chairman, thank you for your
kind words, and we all appreciate that we have only one
Chairman at a time.
[Laughter.]
Senator Cochran. And we respect that, and we respect your
leadership that you have shown as Chairman of this Committee.
Mr. Chairman, I am pleased that President-elect Obama has
nominated a person with experience in Government and an
understanding of the United States agriculture industry to be
Secretary of Agriculture. Governor Vilsack comes from a State
very similar to my home State of Mississippi where much of the
State is rural and agriculture is the economic base of many
local communities.
The Governor referred in his testimony to his commitment to
a robust farm safety net and to create real and meaningful
opportunities for farmers and ranchers to succeed. I applaud
and appreciate this strong statement.
During Governor Vilsack's term as Governor, he demonstrated
leadership and an understanding that research and advances in
technology are critical for both America's farmers to remain
competitive and to enable them to continue to supply food and
fiber to other countries throughout the world.
The Department of Agriculture also has an important role in
providing assistance and support for our rural communities. Of
particular concern in my State is the high rates of obesity and
diabetes, as well as economic disparities in these areas. The
2008 farm bill included a program to help address these issues,
specifically in the Mississippi Delta. I hope this
administration will support increased funding for these
challenges.
Congress will soon begin work on the reauthorization of the
Child Nutrition Act. The agencies which administer the programs
help educate individuals about the importance of nutrition and
good health practices. The long-term effect will be to help
create a new generation of healthy Americans and a significant
reduction in health care costs.
I understand the nominee has also been a strong supporter
of biofuels and renewable fuels. I hope Congress and the Obama
administration will work together to provide the investments
needed to lower the costs of new fuel technologies.
Again, Mr. Chairman, I congratulate Governor Vilsack on his
nomination. I have a couple of questions that occurred to me,
and I thought I would ask him.
In the Mississippi Delta, our farm area there, we have a
lot of fragile lands, many heavily forested. Once upon a time
it was all huge forests, and the Mississippi River Delta was
the place where there were abundant wildlife and fish
resources. Over time, a lot of pressure has been put on that
area of the country because of intensive farming practices over
the years. We have gotten now to the areas of conservation
incentives, trying to help restore the right balance between
our agriculture interests and the importance of food production
and fiber production in that area and in our conservation of
fragile lands and forests, which are so important also.
I am wondering whether you have any ideas about changes or
reforms in this area. What is your attitude generally about how
we strike this proper balance? And does the Department of
Agriculture plan under your leadership to participate actively
in these debates?
Mr. Vilsack. Senator, the conservation programs that you
have alluded to I think are extremely important for multiple
reasons. You mentioned the importance of preserving the natural
resources, and clearly that is a function of those programs. I
think it is also a job creator in rural communities because the
conservation programs have to be implemented in some way, and
oftentimes that involved contractors moving dirt or taking
steps to create buffer strips in the like in my neck of the
woods, and probably in yours as well. So there are rural jobs
that are connected directly to these conservation efforts.
There is also a return of wildlife which creates a whole
host of tourism opportunities, hunting and fishing
opportunities, which are also extremely important. And if the
conservation is done properly, it does improve in many areas
water quality.
So there are multiple reasons why it has been important to
see the evolution of conservation over the last 25 years in
farm bills that have been introduced, and I think with the
Conservation Stewardship Program, I think this Committee with
the Chairman's leadership has sent a very strong message that
this is going to be a fundamental component of agriculture and
needs to be recognized as such and needs to be treated almost
as if it were a commodity, as an income opportunity for farmers
and ranchers.
I think there is also a tremendous opportunity as we begin
the conversation of climate change and what the national policy
will be in climate change, within NRCS in particular, to focus
their efforts on mitigation and adaptation strategies and to
combine that with research and development to try to figure out
precisely what are the best ways to preserve the quality of our
soil and water and at the same time increase the productivity
of farmland.
I think there are tremendous opportunities to do this and
at the same time create carbon sinks, opportunities for offsets
as you set up whatever system you are going to set up to deal
with climate change. Another income opportunity, another income
source. That is the key here, is to continue to create a series
of options for farmers and ranchers, and I am committed to
that. I have seen it happen in my State, and I have seen the
success of it, and I have seen the vitality it has brought back
to communities.
And then as part and parcel of that, it is important to
also not fail to pay attention to the communities in which
these folks live and making sure that the infrastructure is
there to support them. You can have great conservation, you can
have great farmland; but if you don't have communities that
have schools and health care facilities and off-farm job
opportunities, it makes it much more difficult to keep people
on the farm. And then you see further consolidation of farm
ownership and more difficulties for beginning farmers to get
started in this business. And I am concerned about that,
especially with the aging nature of some of our farm families.
So there are lots of issues there.
Senator Cochran. As you have prepared for your confirmation
hearing, have you come up with any suggestions for changes in
the farm bill that we recently passed, any improvements that
need to be made that will be a part of your agenda as the new
Secretary of Agriculture?
Mr. Vilsack. Senator, I was counseled on more than one
occasion by folks to simply indicate the necessity of
implementing the farm program that you all passed consistent
with your intent.
[Laughter.]
Senator Cochran. Well, some people are already preparing to
suggest changes, but we worked real hard on that, and I think
the chairman indicated what an effort it was to put together
that bill. It seemed like the conference went on for weeks. It
was probably days, but one of the longest, drawn-out debates
and discussions of issues facing agriculture and rural America
that I had ever seen in my years here in the Congress.
But the work product I think has many good things in it,
and I hope that you will consult with the Committee, informally
or in formal hearings, whenever you think we need to make
changes. We should not be reluctant to consider and discuss
those areas if we find that we have made a mistake. I don't
think we should be hesitant to try to deal with it and make
improvements where improvements can be made.
But there are some, who will use that as an opportunity to
take out, after whipping boys--some may call it that--things
that are criticized by some. Subsidies generally for
agriculture have a bad connotation in the minds of many, but
for others they are the only reason that we remain productive
and competitive in the world economy, by participating in
agriculture practices and in production agriculture.
Mr. Vilsack. Yes, I think it is incumbent upon USDA to
state the importance and to recognize the importance of that
farm safety net. I think it is also important from the
reputation of the Department to make sure that people who
deserve to get payments and deserve to get support are getting
that support, and that folks who don't deserve to get it aren't
getting it. I think that sometimes undercuts the reputation of
the Department and the reputation of the programs. And that is
why I think it is important for us to have the right kind of
technology that will allow us to give you the data and the
information and the input and for us to learn from that data
whether or not programs are working or not, whether or not
there need to be changes or modifications.
It is difficult for me, obviously, not having been in the
office, to be specific about this, but if you are going to set
performance measures, you have to have the capacity to get the
information that allows you to determine whether a program is
working. And you all want that, and you deserve it and the
taxpayers deserve it. But it is difficult to do when you have
got 1980's technology.
So that is part of responding to your call, is to make sure
that we have the right kind of technology that gives you the
information you need to make those decisions, and that we in
turn can make recommendations to you about modifications or
amendments if there need to be.
Senator Cochran. When I was a candidate for Congress in
1972, I remember one of my advisers said, ``You need to be
able, at your news conference announcing your candidacy, to
talk about the Rural Development Act,'' and he recommended that
I come out very strongly for full funding of the Rural
Development Act. And I didn't know what the Rural Development
Act was. I was practicing law and did not have close touch with
all the issues and legislation that was being passed by
Congress.
But, anyway, I took that advice and also became familiar
with the Rural Development Act, and we are today still deriving
benefits from that Rural Development Act that was passed back
in that era. And I hope that if you aren't already familiar
with many of the programs and priorities that are identified
for rural America in that act, you will become familiar like I
did when I was first exposed to responsibilities at the Federal
level. But you have a big job, and we are looking forward to
working with you and supporting your efforts to strengthen
rural America and help keep our farm economy healthy.
Mr. Vilsack. Thank you, Senator.
Senator Cochran. Thank you, Mr. Chairman.
Chairman Harkin. I would say to my friend from Mississippi,
with all of the bailout money--that is a subsidy to all these
big-city banks and Wall Street. I don't want the Wall Street
Journal and the New York Times preaching to me anymore about
the modest assistance that we provide to our farmers in
America. I thank the Senator from Mississippi.
Senator Cochran. Very good.
Chairman Harkin. Well, two other things here. A number of
Senators could not be here. Senator Baucus could not be here
because he has had a conflict with another Committee meeting.
He will submit questions in writing.
[The questions of Hon. Max Baucus can be found on page 128
in the appendix.]
Chairman Harkin. Senator Brown was unable to attend also
because his mother is very ill, and Senator Stabenow is out
with an illness and she could not be here either.
Staff for Committee members have been informed that written
questions are due by 4 p.m. this afternoon, so staff who are
here, please make sure if your members have any written
questions, they have to be in by 4 o'clock.
The record will stay open for statements and other
materials for the record for 5 business days. The Committee has
received a number of letters and statements in support of the
nomination of Governor Vilsack, and without objection, they
will be made a part of the record.
[The following information can be found on page 72 through
120 in the appendix.]
Chairman Harkin. In closing, Governor, two topics. I want
to cover, I was really delighted to hear one answer you just
gave to Senator Cochran in which you talked about conservation
commodities. I have a note here that in June of 2001, Governor
Vilsack was the Chair of the National Governors Association's
Committee on Natural Resources.
The Committee issued a publication, they published a
publication called ``Private Lands and Public Benefits.'' Among
the recommendations resulting from the Committee's conference
was that Government-supported working lands conservation
programs should demonstrate that they produce valuable and
measurable ``environmental goods or conservation commodities.''
So you go back a long way on that approach, and I am delighted
to hear that you are still thinking that way. That bodes well
for agricultural producers and for conservation.
Lastly, I will point out a program that has not gotten much
publicity. It was included in the 2002 farm bill as Section
9002. I put it in. And it is in permanent law so it doesn't
expire with farm bills. It says very simply, ``Every Federal
department and agency shall``--not ``may'' but ``shall``--
``give a preference to bio-based products in procurement as
long as the products are reasonably equivalent in price,
performance, and availability.''
Well, that requirement has been in the law since 2002. We
have only had one sort of a--what would you call it? A fair or
trade show at the Department of Defense a few years ago. We had
all the different vendors come in that had products that were
bio-based that the Department of Defense could purchase. The
Deputy Secretary of Defense was there, plus the Secretary of
Agriculture.
My point is that I am hopeful, Governor, that when you take
your position, you will remind all your fellow Secretaries--
Transportation, Interior, Defense, Commerce, all of them--that
bio-based procurement preference applies to them, too. It
doesn't just apply to the Department of Agriculture. It applies
to every Federal department and agency. They shall give a
procurement preference to bio-based products.''
I intend to use this Committee and this chairmanship to
call before this Committee some of your fellow Secretaries to
ask them how they are implementing it. I think it would be safe
to say that, with your exception, I doubt if any of them even
know about this requirement--well, Secretary Gates knows about
it because I have asked him about it. But the new ones coming
in, I don't know. And they should be apprised of this law, and
I hope that I can count on you to get your staff to inform all
departments and agencies. And when you meet around that cabinet
table down at the White House, you might remind them that the
law says that they shall give a preference to bio-based
products, and they ought to be ginning up their departments to
figure out how they can do so.
At the Department of Interior, for example, all the
national parks that they oversee, they could be buying bio-
based hydraulic fluids, greases, oils, and items like that that
are biodegradable. I mentioned the Department of
Transportation. There are others.
I hope to work with you on this bio-based requirement and
to really finally bring this provision of the law into use by
these various departments.
Did you have anything else, Senator Cochran, that you
wanted to ask?
Senator Cochran. I think we have pretty well covered
everything we need to discuss. Thank you.
Chairman Harkin. Well, thank you very much.
Governor Vilsack, if you have anything to close on, I would
be more than happy to recognize you for that purpose.
Mr. Vilsack. Mr. Chairman, just simply to thank you and the
members of the Committee for the opportunity to be here today.
If confirmed, I will certainly make sure that my fellow
Secretaries and administrators are aware of the bio-based
purchase preference program that you have talked about. I would
ask that you give me a couple of months to let them know about
this before you call them up here, in fairness.
[Laughter.]
Chairman Harkin. Done.
Mr. Vilsack. Let me just simply conclude with just a
personal statement. I care deeply about the people who live in
rural communities. I have represented them in courts of law. I
have served them in a variety of capacities. And what I have
found is that they genuinely believe in the promise of this
country. They are extraordinarily proud of the contribution
they make. In our part of the world, they recognize the role
that they play in not just feeding Americans but people all
over the world. And they care deeply about the land and the
water and the resources.
If confirmed, I hope that I am a Secretary that continues
to advocate on their behalf and to continue the work that I
started 30-some years ago as a small-town lawyer. That is how I
began my professional career, and to a certain extent, in a
strange way, this is a continuation of that advocacy role. I
take it very seriously, and I would appreciate the opportunity
to have this privilege, and I appreciate your kindness in
letting me be here and the President-elect's confidence in
allowing me to be here today.
Chairman Harkin. Well, Governor, thank you for that very
profound ending statement. I cannot think of anything more to
add than my best wishes, my congratulations, and we look
forward to a speedy confirmation. I am sure that it will take
place next Tuesday. I will be obviously polling the members of
the Committee, but I sense that we will likely be unanimous. I
congratulate you for that and again wish you well, and I look
forward to working with you in the coming months and years to
advance all of the causes and values that you just spoke about
in working for people who live in rural America. So God bless
you. Thank you very much for being here. Christie, wonderful to
see you here.
If there is nothing else to come before the Committee, the
Committee will stand adjourned subject to the call of the
Chair.
[Whereupon, at 12:28 p.m., the Committee was adjourned.]
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A P P E N D I X
January 14, 2009
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DOCUMENTS SUBMITTED FOR THE RECORD
January 14, 2009
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QUESTIONS AND ANSWERS
January 14, 2009
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