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S. HRG. 113–558 

2014 FARM BILL: 

IMPLEMENTATION AND NEXT STEPS 

HEARING 

BEFORE THE

COMMITTEE ON AGRICULTURE, 

NUTRITION AND FORESTRY 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

MAY 7, 2014 

Printed for the use of the 

Committee on Agriculture, Nutrition and Forestry 

( 

Available via the World Wide Web: http://www.fdsys.gov/ 

COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY 

DEBBIE STABENOW, Michigan, Chairwoman 

PATRICK J. LEAHY, Vermont 

TOM HARKIN, Iowa 

SHERROD BROWN, OHIO 

AMY KLOBUCHAR, MINNESOTA 

MICHAEL BENNET, COLORADO 

KIRSTEN GILLIBRAND, NEW YORK 

JOE DONNELLY, INDIANA 

HEIDI HEITKAMP, NORTH DAKOTA 

ROBERT P. CASEY, Jr., PENNSYLVANIA 

JOHN WALSH, MONTANA 

THAD COCHRAN, Mississippi 

MITCH MCCONNELL, Kentucky 

PAT ROBERTS, Kansas 

SAXBY CHAMBLISS, Georgia 

JOHN BOOZMAN, Arkansas 

JOHN HOEVEN, North Dakota 

MIKE JOHANNS, Nebraska 

CHARLES E. GRASSLEY, Iowa 

JOHN THUNE, South Dakota 

CHRISTOPHER J. ADAMO, Majority Staff Director 

JONATHAN J. CORDONE, Majority Chief Counsel 

JESSICA L. WILLIAMS, Chief Clerk 

THOMAS ALLEN HAWKS, Minority Staff Director 

ANNE C. HAZLETT, Minority Chief Counsel and Senior Advisor 

(II) 

(III) 

C O N T E N T S 

Page 

HEARING(S): 

2014 Farm Bill: Implementation and Next Steps ................................................. 1 

Wednesday, May 7, 2014 

STATEMENTS PRESENTED BY SENATORS 

Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan, Chairwoman, Committee on Agriculture, Nutrition and Forestry ............................ 1 

Cochran, Hon. Thad, U.S. Senator from the State of Mississippi ....................... 5 

Witness 

Vilsack, Hon. Tom, Secretary, United States Department of Agriculture, 

Washington, DC ................................................................................................... 3 

APPENDIX 

PREPARED STATEMENTS: 

Casey, Hon. Robert, Jr. .................................................................................... 44 

Cochran, Hon. Thad ......................................................................................... 45 

Vilsack, Hon. Tom ............................................................................................ 46 

DOCUMENT(S) SUBMITTED FOR THE RECORD: 

Bennet, Hon. Michael: 

‘‘Colorado River Basin as Critical Conservation Area’’, Colorado River 

District ........................................................................................................... 60 

Republican River Water Conservation District Water Activity Enterprise, 

prepared statement ....................................................................................... 61 

QUESTION AND ANSWER: 

Vilsack, Hon. Tom: 

Written response to questions from Hon. Debbie Stabenow ......................... 64 

Written response to questions from Hon. Pat Roberts .................................. 114 

Written response to questions from Hon. Sherrod Brown ............................ 89 

Written response to questions from Hon. Robert P. Casey, Jr. .................... 97 

Written response to questions from Hon. Thad Cochran .............................. 101 

Written response to questions from Hon. Joe Donnelly ................................ 92 

Written response to questions from Hon. Kirsten Gillibrand ....................... 91 

Written response to questions from Hon. Tom Harkin ................................. 87 

Written response to questions from Hon. Heidi Heitkamp ........................... 93 

Written response to questions from Hon. Mitch McConnell ......................... 114 

(1) 

2014 FARM BILL: 

IMPLEMENTATION AND NEXT STEPS 

Wednesday, May 7, 2014 

UNITED STATES SENATE, 

COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY, 

Washington, DC 

The Committee met, pursuant to notice, at 9:12 a.m., room 328A, 

Russell Senate Office Building, Hon. Debbie Stabenow, Chairwoman of the Committee, presiding. 

Present or submitting a statement: Senators Stabenow, Leahy, 

Harkin, Klobuchar, Bennet, Gillibrand, Donnelly, Heitkamp, Casey, 

Walsh, Cochran, Roberts, Chambliss, Hoeven, Johanns, Grassley, 

and Thune. 

STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR 

FROM THE STATE OF MICHIGAN, CHAIRWOMAN, COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY 

Chairwoman STABENOW. Well, good morning. I will call to order 

the Senate Committee on Agriculture, Nutrition and Forestry; and 

welcome, Secretary Vilsack. We thank you very much for being a 

compelling advocate for passage of the Farm Bill and we also greatly appreciate your excellent staff providing critical technical assistance throughout the entire process, and your personal help in developing a Dairy Title as we came to an end to be able to put this 

all together, having a title that was both politically workable and, 

most importantly from a policy perspective, workable for our farmers. Thank you very much. 

I continue to be very, very proud of this Committee and the fact 

that at a time when it is tough to get things done, everybody on 

both sides of the aisle really came together to do what needed to 

be done; and we will see a stronger rural economy and economy in 

general as a result of it. 

Over the last three years, this Committee worked to put together 

a Farm Bill that reforms agricultural programs, cuts spending, and 

supports the 16 million people whose jobs rely on the strength of 

American agriculture. In many senses, the Farm Bill is a bit of a 

misnomer as we all know because this bill affects every American 

in many different ways. 

This is a bill that takes critical steps toward changing the paradigm of farm and food policy. We worked hard to make sure the 

Farm Bill represents the diversity of American agriculture from 

row crops, to specialty crops, to livestock, to organics, to local food 

systems. 

2 

We passed a very strong permanent livestock disaster assistance 

Program that, unfortunately, had to be used almost immediately 

after passage. We eliminated direct payments in favor of strengthening risk management tools and expanding opportunities for crop 

insurance, the number one request of farmers across America. 

We increased support for several organic programs which is one 

of the fastest-growing segments in American agriculture. We once 

again provided a strong Specialty Crop Title supporting nursery 

and a floriculture as well as fruits, vegetables, nuts, and other 

products you find in the produce aisle in the supermarket. 

I am particularly proud of the Conservation Title and the new 

Regional Conservation Program which will bring together publicprivate funds to better assist farmers conserve our land and resources. I am also very excited about the new Foundations for Food 

and Agricultural Research that we created which will combine public-private dollars to make sure we have the funding streams necessary to continue to solve problems and to create opportunities to 

do research and do new innovation. 

This new Foundation is really about the future, and I look forward, Mr. Secretary, to be working with you as the distinguished 

board members are appointed and the foundation begins its work. 

This Farm Bill is also a rural development bill that will help small 

communities build safe drinking water systems, access affordable 

broadband internet service, and it also encourages World leaders to 

work together on a regional economic level for regional economic 

strategies which will not only make the most of federal dollars but 

also help small towns attract business investments and jobs. 

I am also very excited about the opportunities we have created 

through the Energy Title that will support job creation and in the 

growing sector of bio-based manufacturing as well as the next generation of bio-fuels to continue building America’s energy independence. 

I am proud of our Nutrition Title, which expands food access for 

families in need and provides incentives and education related to 

health food choices in both urban and rural communities. 

Food assistance is a critical lifeline for families in need giving 

them temporary help to put food on the table, and I am very 

pleased to see the most recent Congressional Budget Office estimates say that SNAP spending is continuing to decline the right 

way, now saving an additional $24 billion more than previously estimated. I have always said the best way to reduce nutrition health 

spending is by improving the economy and helping people get good 

paying jobs, and that is what is happening. 

I am very proud this Committee and our colleagues in the House 

worked together to give our farmers and ranchers the support they 

need to continue producing the safest, most abundant, most affordable food supply in the world. 

Our farmers are truly feeding the world which is why the Farm 

Bill expands export opportunities for producers and, in fact, creates 

the first ever Undersecretary of Agriculture for Trade; and I am 

looking forward, Mr. Secretary, to make sure that this new position 

is structured in a way to be an advocate for your department and 

U.S. producers. 

3 

It has been a long road, a long road to get here to this implementation hearing; and I want to say thank you to everyone on our 

Committee, thank you to Mr. Secretary. Thank you to my Ranking 

Member who I know will be joining us shortly and you will hear 

from the senior senator from Mississippi when he arrives. 

But I think at this point, we will proceed, Mr. Secretary, with 

your testimony and then we will hear from Senator Cochran as 

well. It is always a pleasure to have you with us and again, thank 

you for not only your leadership in helping us get to this point but 

frankly we put a lot on your plate, and we appreciate that you and 

your team has stepped up and are working very hard to implement 

the Farm Bill. 

Secretary Vilsack. 

STATEMENT OF THE HON. TOM VILSACK, SECRETARY, UNITED 

STATES DEPARTMENT OF AGRICULTURE, WASHINGTON, DC 

Secretary VILSACK. Thank you very much, Madam Chair, and I 

simply want to echo the comments of many people around the 

country thanking you for your leadership and Senator Cochran for 

his leadership and this Committee leadership in getting a progressive, transformative, and positive Farm Bill passed. It sent, I think, 

a message of hope throughout the countryside and obviously would 

not have happened without the great work of this Committee and 

without your leadership. 

I want to thank you personally for the work that you did. It was 

not an easy lift. It did require bipartisan support, and I think it 

represents the best of the kind of work that can occur in this democracy. Thank you. 

It seems as if I need to give you an update on where we are relative to implementation of this Farm Bill; and I can tell you in the 

first 90 days, I am confident that we have made progress in every 

title of the Farm Bill. 

We focused initially on putting the disaster assistance programs 

in place. Over 33,000 applications have been received. $16 million 

has already been distributed to producers who have suffered disasters after October 1, 2011. We would anticipate and expect that 

those disaster assistance payments will continue for the course of 

the next several months for sure. 

In conservation, we just set up the Conservation Easement Program that you established as part of the reforms of conservation. 

I see Senator Cochran is here, Madam Chair. If you want, I 

would be happy to stop and allow the Ranking Member the opportunity to make his comments. 

Senator COCHRAN. I would rather that you continue. 

Secretary VILSACK. All right. 

Chairwoman STABENOW. We will let you continue and then we 

will turn to Senator Cochran at that point. 

Secretary VILSACK. Yes. You mentioned trade. One of the great 

things about getting the Farm Bill done was that we were able to 

resume our trade promotion programs. We are on track for yet another record year of agricultural trade. It will be the fifth record 

in the last six years. 

The Nutrition Title, as you indicated, is a strong one. We are excited about the pilot employment and training opportunities to help 

4 

put people that are on SNAP or looking for work to work. We have 

received a lot of interest from a number of states who are willing 

to participate in those pilots and we look forward to getting those 

started this fall. 

In the credit area, we have reduced the interest rate on the Joint 

Direct Farm Ownership Loan, cutting it in half which will make 

that much more feasible. In rural development, the water resources 

that you provided to deal with the backlog of water projects has 

been distributed. We are reducing that backlog. 

We are announcing our Business and Industry Loan Program, 

the set aside for local and regional food opportunities and food hubs 

is being set up. 

You mentioned the Foundation which we are all so excited about. 

We received over 275 nominations for the 15-person board. It is in 

the process of being incorporated, and we anticipate and expect the 

first board meeting of the ex officio board members will take place 

in July with the passage of bylaws, and hopefully we will be able 

to begin the process of getting the matching resources that are required for the Foundation to continue its work. 

In the Forestry Title, we have had 36 states contact us to take 

advantage of the streamlined NEPA process in terms of areas that 

have been stricken by disease and pests. We are anxious to get that 

program up and going. 

The Energy Title, we just announced the notice of funds availability, $70 million. We are working on the additional roles in 

terms of the bio-product manufacturing opportunities which will 

take place this summer and next year. 

In horticulture, the specialty crop block grant has been advised. 

The farmer and rancher promotion and local food promotion programs are being advised of the availability of funds this week. We 

have initiated the organic research initiative as instructed. 

In crop insurance, the whole farm policy pilot will be potentially 

available this summer. For the benefit of Senator Cochran in particular, the catfish MOU has been signed with the FDA, and we 

anticipate and expect that the catfish rule will go to OMB by the 

end of this month. 

We have plenty on our plate. The regional conservation partnership program, we look forward to making announcements about the 

critical conservation areas. At the tail end of this month, the Foundation work will continue and we will be focusing on getting the 

educational materials out for the ARC and PLC program so that 

producers will have a number of months to be able to evaluate the 

appropriateness of either one of those programs for their operation. 

The Supplemental Crop Insurance Option and the STAX program should be operational, we believe, by the end of this year. 

The dairy program will be set up and functional by September, 

and we are looking forward to instituting the food insecurity pilots 

that I know are of interest to you, Madam Chair, sometime this 

fall. 

We are focused on this. We understand the importance of it, and 

we look forward to answering the questions of the Committee. 

Thank you. 

[The prepared statement of Secretary Vilsack can be found on 

page 46 in the appendix.] 

5 

Chairwoman STABENOW. Thank you very much. It is easy to see 

that you are moving on all fronts, and we greatly appreciate that. 

My Ranking Member and partner, Senator Cochran. 

STATEMENT OF HON. THAD COCHRAN, U.S. SENATOR FROM 

THE STATE OF MISSISSIPPI 

Senator COCHRAN. Madam Chairman, I thank you for convening 

this hearing and providing the leadership that you do to this Committee. 

Mr. Secretary, welcome. We appreciate your service at the Department of Agriculture and particularly appreciate your comments 

and your efforts to find ways in which the Federal Government can 

provide assistance to those who lost property and flocks of birds in 

Mississippi due to the devastating tornadoes that really caused an 

awful lot of damage in our State. Right now we are still in the 

cleanup, straightening up and assessing the damages mode. 

But with the assistance of your department, we will make good 

progress I am sure in trying to get these people restored so that 

they can continue to provide important foodstuffs and economic 

benefits throughout not only our State but the entire country. 

Could you give us some indication about what your reaction to 

the situation is in Mississippi as a result of these disasters and 

whether or not provisions in the Farm Bill are sufficient to give 

you the authorities you need to be helpful to our State and the producers? 

Chairwoman STABENOW. I think, Mr. Secretary, it would be appropriate if you wanted to respond to that. 

Secretary VILSACK. Okay. Senator, we have set up the disaster 

assistance programs. The Livestock Indemnity Program is really 

designed to provide assistance and help to those who have lost livestock as a result of disasters. I certainly encourage the producers 

to make sure that they have adequate records, and we will be 

happy to work with them to process applications as quickly as possible. 

We already have in place the programs. The resources are there, 

and folks are anxious to help. We also will use our resources at 

USDA to provide for appropriate disposal. That is also an issue in 

a disaster situation. 

Our folks at APHIS will be willing to work with producers in 

Mississippi to make sure that all the rules and regulations relative 

to disposal are followed as well. 

We will be more than happy to help. If there are specific issues 

that your staff wants to contact our staff about, we would be more 

than happy to help you in any way we can. 

Senator COCHRAN. Thank you very much for permitting that 

question. 

Chairwoman STABENOW. Absolutely. Thank you. We will proceed 

with questions. We are going to do a seven-minute round of questions; and if there is interest from the Committee, we will do additional rounds to make sure everyone’s questions are answered, 

given the time that it is allowable. 

Mr. Secretary, first let me ask a little bit more about the regional 

conservation partnership program and I have to come, at this 

point, say that we have great confidence in the moving forward and 

6 

implementation of this since you stole the main person from our 

Committee who wrote this, Tina May. We are sorry to lose Tina 

from the Committee staff as well as Karla Thieman. I do not know 

if I see her here but Tina, the confidence knowing that she is part 

of overseeing this I think is something that we cannot underestimate. 

We are happy to have the person that was helping to really lead 

this as the architect with you. But this is probably one of the most 

understated new policies in the 2014 Farm Bill. It has the potential 

to transform the face and the future of agricultural stewardship. 

When we look at the innovative possibilities in the Great Lakes 

or Chesapeake Bay or certainly we could name many things around 

the country, it is really about partnerships and leveraging publicprivate sector partnerships in creating new models. 

Given that this is a new program and the notion of both regions 

and partnerships is new to a lot of groups, what type of outreach 

and education is NRCS and USDA doing to ensure that participants are informed and are able to submit competitive applications, 

because this really only works if people are coming together on the 

ground and the planning and submitting the kind of applications 

that we certainly hope we see. 

Secretary VILSACK. Well, Madam Chair, first of all, I think I 

need to correct the record. I think you stole Tina May from us before we stole her back. 

[Laughter.] 

Secretary VILSACK. We are happy to have her back. 

We understand and appreciate the transformative opportunity 

that this regional conservation partnership program presents. We 

have done a series of listening sessions which we will continue to 

do to make sure that folks are fully aware of this opportunity. 

In the past, what we have done is we have got a program and 

we give people very little time to actually put projects and proposals together. This time we are going to reverse that process. We 

expect and anticipate sort of laying out the critical conservation 

areas that are critical to this partnership effort by the end of this 

month; and then we want to give folks several months to basically 

put proposals and projects together for consideration; and so, we 

are going to give people plenty of time to do what they need to do 

to get this done right. 

We also want to get it done in time for it to take advantage of 

an opportunity that we are trying to create at USDA and through 

the rural council to encourage more capital investment in rural 

America. 

You can rest assured there is going to be plenty of outreach and 

plenty of opportunity for people to be very creative, and we are 

going to try to get sort of the framework of this program out as 

quickly as we can so people can respond. 

Chairwoman STABENOW. Great. Another priority in the Farm Bill 

that I mentioned was in the Energy Title focusing on bio-based 

manufacturing. We all talk about how biofuels are very important 

to energy independence and jobs. But we have added to the USDA’s 

toolkit the ability to support more broadly the bio-based economy. 

For example, we authorized renewable chemical production and 

bio-based manufacturing as eligible projects under the program. I 

7 

am wondering how you intend to coordinate all of this from the 

new opportunities that we authorized in the Energy Title to financing options that are in rural development to the support that we 

have through the research programs. 

How do you see that coming together? 

Secretary VILSACK. Well, first of all, we are going to make sure 

that the opportunities for bio-chemicals are available as quickly as 

possible. We think our current rules and structure will allow 

grants and loans to be made relative to bio-chemical processing. 

In terms of other manufacturing processing in terms of our bioproducts, it may take a slight change to the rule and that may take 

a little bit of time for us to get through the regulatory process. We 

are essentially in business in terms of the bio-chemicals. 

We have made a concerted effort to integrate this effort with our 

research folks focusing in part on bio-processing and setting that 

up as a priority in terms of the National Institute of Food and Agriculture. 

Everybody I think in the building understands and appreciates 

how important this is to the survival of rural America in terms of 

creating jobs and creating additional income opportunities. 

We are very much focused on this. Our crop insurance folks are 

also working on trying to develop new crop insurance products for 

energy products. It is essentially a coordinated and integrated effort, and I think you will see progress in this year. 

Chairwoman STABENOW. Right. I think this is really important 

in terms of, as you said, jobs and the economy. 

Then finally from me in this round, we would like you to speak 

about conservation compliance because, as you know, we included 

a landmark agreement fostered by agriculture and conservation 

groups to link conservation compliance to our crop insurance program and both helping us to protect farmland and the insurance 

program for the future. 

Can you give the Committee an outline of where you are in the 

process of that, the expected time line? Can you discuss what, if 

anything, farmers should or should not be doing to prepare for the 

implementation of conservation compliance? 

Secretary VILSACK. Well, first of all, it is important to note that 

this is in a sense effective the day the President signed the Farm 

Bill; and so, farmers are under this obligation and responsibility if 

they want to continue to receive the government subsidy for crop 

insurance as of February 7 I believe of this year. 

We expect and anticipate to have sometime this summer the 

basic structure of conservation compliance and then folks will have, 

those who are not currently compliant because most producers are. 

In order to get disaster assistance, in order to get some of the other 

benefits under the 2008 Farm Bill, you had this responsibility anyway so that does not change. 

We expect and anticipate the roughly 6000 producers who may 

be impacted by this will have until the mid-part of next year to be 

able to produce their compliance plans, to make sure that it is certified, to ensure that they do not lose the benefits of the government subsidy and crop insurance. 

8 

If they fail to do that, then crop insurance, obviously they will 

still be able to buy crop insurance but it will not be with a government subsidy. But it is effective as of February 2014. 

The advice is it will probably be not a good idea for you to be 

breaking up land that has not been broken up for a while. It is a 

good idea for you to get your conservation plan together if you are 

one of those 6000 producers that has not had it before. 

Chairwoman STABENOW. Thank you very much. Senator Roberts, 

you are next. 

Senator COCHRAN. I yield. 

Senator ROBERTS. Madam Chairwoman and Ranking Member 

Cochran, thank you for holding this hearing today. 

Madam Chairperson, I know that you are very proud of receiving 

the 2013 perseverance of the year award with all of the commodity 

groups and farm organizations and broadcasters that are here. 

They voted. I just do not know where we are going to put the statue but we will figure that out. 

Chairwoman STABENOW. Okay. 

Senator ROBERTS. Anyway, thank you. 

Secretary Vilsack, I am glad you are here and I appreciate your 

update on the department’s implementation of the Farm Bill. It 

has been about two years since you were last in front of the Ag 

Committee. I think you look younger. But at any rate welcome 

back. 

Since that time, I know everybody is concerned about the dates 

when the Farm Bill implementation will take place. We were talking about that earlier, sometime in the fall with the new programs. 

I hope more toward October when Kansas State plays Iowa State 

as opposed to Thanksgiving. 

But the Kansans that I visit with—I am about 103 counties done 

of 105—they are really concerned about the various agencies regulatory efforts or what I call over regulation, and I share their concerns, and I would hope now with the Farm Bill signed into law 

that at least, and I know you are extremely busy, but if the department could focus on delivering farm and food programs, not new 

regulations, I think that would be the number one issue that I 

have heard out in farm country. 

Madam Chairperson, I think at an appropriate time, and I know 

time is our most valuable commodity here, but the full Committee 

should have the opportunity to have a more in-depth discussion 

and review of the new USDA climate change hubs, more especially 

with the President’s announcement as of yesterday. 

The department’s role in the recently proposed waters of the 

United States regulation and last but not least, the listing of the 

lesser prairie chicken as a threatened and endangered species that 

farmers believe in 35 counties of my state that are also threatening 

them. 

But we are here to discuss the Farm Bill. So to that task, the 

recent wheat quality tour in Kansas has forecasted the lowest crop 

in the State since 1996. 

Crop insurance will once again be critical to our producers suffering from a hard freeze and the ongoing drought. Again, I appreciate all the efforts and the staunch support from our Chairperson 

with regard to crop insurance. 

9 

The RMA is a very data-driven process to offer new crop insurance products as the right figures are necessary to ensure proper 

ratings and to protect the integrity of the overall program. 

Wheat, corn, soy, and other commodity growers across Kansas 

are worried that their county crops, their county and crops may not 

have quick access to the supplemental coverage option of the new 

SCO or other new products due to a lack of data. 

My question is: Does the RMA currently have enough yield and 

production history information to get the SCO off the ground and 

available to all producers quickly and, if not, how is the coordination effort with the Farm Service Agency and the National Agriculture Statistics Service going? 

Secretary VILSACK. Senator, we believe we will have the supplemental crop insurance option available this fall. One of the challenges with wheat producers is that we probably will not have it 

available before wheat producers are in a position to determine 

whether ARC or PLC is most beneficial to their operation. 

We will give the wheat producers additional time to sort of 

rethink their crop insurance decision because if they choose the 

ARC program, then they will not qualify for the supplemental crop 

insurance option. 

If they start off by saying yes, we want SCO, then they decide 

ARC is better for them than PLC, we will allow them the opportunity without penalty to reverse that SCO decision. 

Senator ROBERTS. I appreciate that very much. 

Recently, the department and the U.S. Fish and Wildlife Service 

released predictability agreements for the lesser prairie chicken 

habitat that is enrolled in working lands and the conservation reserve program. 

I know those agreements are necessary and they are appreciated 

but they have not ended the farmers’ and ranchers’ fear that future 

decisions could have the Federal Government driving land out of 

agriculture production. It is a very real concern among farmers and 

ranchers. I would change that from concern and frustration and 

possibly even fear. 

How would you respond to farmers and ranchers in western Kansas right now that are concerned about being forced to idle agricultural land for a bird that we cannot find? 

Secretary VILSACK. Senator, I think that we would suggest to 

your producers to work with their local NRCS conservation specialist to put together a conservation plan, because if they are able 

to do that with the cost share assistance that we provided at 

USDA, we can provide them 30 years of regulatory certainty that 

the rules will not change and that they will be deemed in compliance regardless of what the determination is relative to the lesser 

prairie chicken. 

We have been working on this with seven different endangered 

species. The sage grouse was the first one that we started with. I 

would strongly encourage them to look at the voluntary conservation opportunities, the cost share opportunities that NRCS presents; and if they are able to do that and we are able to certify that 

they have complied with our structure, we are now working to get 

them 30 years of regulatory certainty which I think is a good way 

to approach the lesser prairie chicken. 

10 

Senator ROBERTS. Well, I appreciate your response, and I am 

going to be in touch with you as this goes along. We have a May 

12 announcement and we are just going to have to see how this is 

working, and I appreciate that. 

I do not have any further questions now. I yield back. 

Thank you, Mr. Secretary. 

Chairwoman STABENOW. Thank you very much. 

Senator Klobuchar. 

Senator KLOBUCHAR. Mr. Secretary, thank you for your good 

work and your help in passing the Farm Bill. I think we all know 

it was not an easy task and I thank the Chairwoman and our 

Ranking Member and everyone that was involved in. But you were 

always there with a steady hand, ideas when we were having some 

sticking points; and we really appreciate that. 

First of all, I want to ask something that is on the mind of a lot 

of our farmers in Minnesota, and that is transportation rail costs. 

With the increased use of rail for oil and the increased use of rail 

nationwide and the picking up of the economy, we have had some 

major issues not only about rail safety which we talked about but 

also about the costs, the scheduling of rail shipments, the cost of 

that last leg with captive customers. 

I actually got a provision in the Farm Bill for a joint study with 

USDA and the Department of Transportation to examine rural 

transportation issues including captive shipping issues. 

Can you prioritize this study, especially given that we are continuing to see more and more use of rail, so we can get a sense of 

what we could do policy wise? 

Secretary VILSACK. I had an opportunity to meet with Chief 

Economist Joe Glauber about the transportation study. He assured 

me that this is something that his team is working on and it is of 

value, and we believe that it ought to be expanded beyond the effort under the 2008 Farm Bill to include not just rail but also 

issues relative to our waterways. We think there is a tremendous—— 

Senator KLOBUCHAR. At the locks and dams. 

Secretary VILSACK. Yes. 

There is tremendous opportunity there for us to study this. We 

are working with the Department of Transportation to try to identify the resources that would pay for this study. DOT is a little 

strapped right now so we are going to continue to work with them. 

We have also had an opportunity to visit with the folks at Burlington Northern to express the same concerns that I am sure you 

have expressed emphatically to them, received assurances from 

them that they have a plan to invest $5 billion this year in additional rail, in additional locomotives, and in additional staff. 

We will obviously keep an eye and hold them to that commitment and promise. That will help alleviate the concern. It is unfortunate that this was not done before but better late than never. 

Senator KLOBUCHAR. Okay. If you could just check back with 

your people on the time line for the study, I would appreciate it. 

Second, one of the provisions I worked on was for young farmers 

and ranchers. The average age of a farmer in Minnesota is now 56 

years old, and what we did here was reduced the cost of insurance 

11 

by 10 percent for young farmers and ranchers in the first five 

years. 

What is going on with the work to implement that provision? 

Secretary VILSACK. That is going to be implemented before the 

end of this year. In addition, we will be working with the FSA offices to ensure that the credit opportunities I had mentioned, the 

reduction of the interest rate which is of some assistance. 

We also have recently announced the availability of the beginning farmer-rancher resources to help third parties assist beginning farmers and ranchers putting together plans. We are working 

very closely with veterans groups as well to create this opportunity. 

There are a number of steps that we have taken to assist beginning farmers. There are conservation benefits that they now have, 

advanced payments of conservation benefits. All of that is in the 

works. 

Senator KLOBUCHAR. Okay. I am going to put a few questions on 

the record about the importance that we have talked about many 

times about the renewable fuel standard, the PEDV outbreak. I 

that is something the USDA has been working on. and then some 

questions on EPA regulations. 

But I did want to turn to forestry for a minute. My State, like 

the State of Michigan, has a strong forest products industry, and 

I am pleased that it is now clear that forest products are eligible 

to fully participate in the bio-based programs. 

How is USDA moving to implement the changes needed to ensure that forest products can participate in these programs and 

what is the time frame? 

Secretary VILSACK. We have instructed folks to get this established this year. We anticipate it gets done this year. In addition, 

we have also announced a recent competition to take a look at a 

new opportunity in forestry with cross laminated timber. 

It is a building material that is being used in other parts of the 

world to build multi-story buildings. We think there is a tremendous opportunity for particularly diseased wood that we see in the 

western part of the United States to be used to create this new industry, and we are hopeful that this contest will spur additional 

forest product opportunities. 

We are focused on basically putting it in the BioPreferred Program this year but also looking at additional ways to grow new industries. 

Senator KLOBUCHAR. Okay. Very good. The Farm Bill, as you 

know, included a significant compromise between Ag organizations 

and wildlife organizations that extends conservation protections to 

the crop insurance program. 

The Farm Bill also includes a sodsaver provision that I worked 

on with Senator Thune to protect native prairie in certain states. 

I understand that implementing the conservation compliance rules 

is very complicated and that there are some questions about how 

they will impact. 

I think these both provisions, I know Senator Chambliss worked 

on one of these very important. What are you doing to get the information out to producers about the conservation compliance and 

sodsaver provisions, and how are you working to make sure the 

rules are enforced consistently? 

12 

Secretary VILSACK. We have had a series of listening sessions 

and meetings with interest groups in Washington, DC, and around 

the country to review with them certain conditions and provisions 

of the Farm Bill. 

I think we are emphasizing the importance of understanding 

that these responsibilities begin the day and the minute the President signed the bill, and I think there is a general understanding. 

We will continue to work as well with conservation groups to make 

sure that this message is amplified and reinforced. 

Senator KLOBUCHAR. All right. Then last, I do not think I need 

to tell you. I know you know what a hard time diary producers 

have had over the last few years with the high feed prices, the 

volatile export market. 

The new dairy program will help producers manage some of the 

risk by protecting against wild swings in a producers margin. 

One issue I have heard from dairy producers in my State about 

is the need to ensure that there is a gap between when a producer 

purchases margin insurance and when the insurance goes into effect to prevent producers from trying to game the system. 

What is the USDA doing to ensure that the margin insurance 

rules reward farmers for taking prudent risk management steps? 

Secretary VILSACK. Senator, I will have to get you specific information about that specific question. I can tell you that we are very 

focused on getting this program up and running in September as 

instructed by the Congress and that we obviously got the MILC 

program in place in the meantime. But I will get you a specific answer to the question. 

Senator KLOBUCHAR. Okay. I appreciate it. 

Secretary VILSACK. I am sure these folks are focused on this. I 

am just focused on making sure the program is up and running in 

September. 

Senator KLOBUCHAR. Right. I appreciate that and thank you for 

your good work on it. 

Chairwoman STABENOW. Thank you very much. 

I understand Senator Grassley was next but he had to step out 

to meet with a group and I know, Senator Harkin, you need to 

leave and had asked everyone if you might have the opportunity. 

So, without objection I understand that has been agreed to. 

Senator Harkin, we know that you have to be at another meeting 

as well so please proceed. 

Senator HARKIN. Thank you, Madam Chairwoman and Ranking 

Member Cochran. It has been a great pleasure to work with you 

for all of these years and thank you for your hard work together 

to get this Farm Bill through. 

I thank the indulgence of the Committee. 

I have known Secretary Vilsack now for probably, oh, gosh, almost 30 years when he first became mayor of Mount Pleasant and 

then as a State Senator and then as governor and now has Secretary of Agriculture; and I have been a great fan and admirer of 

his through all these years. 

I think if there is one thing that I would characterize your service as through all these years is one of being responsible, responsible and results oriented. Mr. Secretary, Tom, if I can call you that 

as an old friend, everything I have watched you do from that time 

13 

when you had that tragedy in Mount Pleasant and you took over 

as mayor to your service in the State Senate, as governor, and now 

has Secretary of Agriculture that the one thing that has always impressed me is that everything you do whether it was legislatively 

or in the executive branch either federal or state executive, you always had an understanding that everything we do, no matter how 

we talked about it, no matter how small we get into the weeds on 

it, it affects people. The end result all we do affects people and affects families. You have never lost sight of that. I just want to 

thank you for that. 

I appreciate your great service to our State, your service to our 

Nation and as Secretary of Agriculture, and if I just might add just 

a personal interest of mine, I thank you for all you have done for 

conservation and the conservation programs in America. 

I have some questions on that. I do not have time. I have to chair 

a health hearing now in another room but thank you for that and 

also your great leadership on rural energy and the and the wheat 

program, all of those things we are doing out there to help farmers 

make sure they get the kind of energy that they need and to 

produce that we need in America. 

Madam Chairwoman, I just thank you for that and thank you, 

Mr. Secretary, for that. Your great leadership on nutrition programs that you have done has just been outstanding, and I just 

want to thank you for that and thank you for your leadership, your 

friendship through all these years. 

Madam Chairwoman, thank you for recognizing me. I am sorry. 

I have to go chair another hearing. Thank you. 

Chairwoman STABENOW. We certainly understand that. 

Secretary VILSACK. Madam Chair, before the Senator leaves. 

Chairwoman STABENOW. Yes. 

Secretary VILSACK. Senator, I appreciate those kind words but I 

think everyone in the State of Iowa and everyone in this country 

owes you an extraordinary debt of gratitude. If you want to talk 

about conservation, you cannot talk about conservation and not 

talk about Tom Harkin in the same sentence. 

You have been a leader, the CSP program that you helped to 

craft is leading the effort along with the EQIP program so that now 

we have a record number of acres enrolled in conservation, and it 

is working and it would not have but for your leadership, and no 

one cares more deeply about folks who work and are struggling 

than you do. 

I really appreciate those kind words. 

Senator HARKIN. Thank you, sir. 

Chairwoman STABENOW. I would just say amen to that, Senator 

Harkin. 

Senator Chambliss, you are up next. 

Senator CHAMBLISS. Thank you very much, Madam Chair. 

Secretary Vilsack, welcome back. I want to commend you and 

your staff over at USDA for committing to implement this Farm 

Bill in a very quick manner and a very professional manner. 

I truly believe we passed a good, solid bill that will work for the 

people of this Nation. It is a bill that reforms critical farm programs, strengthens the Nation’s food security, protects the liveliVerDate Nov 24 2008 17:32 Feb 23, 2015 Jkt 000000 PO 00000 Frm 00017 Fmt 6633 Sfmt 6633 C:\USERS\MW42035\DESKTOP\DOCS\93029.TXT MICAH
14 

hood of our farmers and ranchers, and preserves our efforts to remain good stewards of the environment. 

I would urge that USDA continue to implement the policies as 

we intended in the bill and where you have doubts that you will 

come back and ask us for guidance if there is any question about 

as I know you will. 

I want to ask you very quickly about the Brazil cotton case. In 

an effort to provide every opportunity to resolve that long-standing 

WTO case, cotton is not eligible for the new PLC and the ARC programs. 

The calculation of the cotton loan rates has been modified. The 

department has broad authority to make administrative changes to 

the GSM export guarantee program, all of which you are familiar 

with. 

Has the Administration had an opportunity to consult with Brazilian officials since the enactment of the farm law, and assuming 

you have, what has been the reaction of Brazil to the implementation of these provisions? 

Secretary VILSACK. Senator, I think no one wants Brazil to take 

the next step in this process to convene the Committee to take a 

look at what next steps could occur as a result of the adverse decision that we suffered. 

We have been negotiating and discussing with the Brazilians an 

effort to resolve this. I think that there has been headway in terms 

of the GSM program. We are doing an effort to try to educate the 

Brazilians on the precise nature of the steps that we are taking in 

this Farm Bill. It is very complex. It is very difficult. 

We are in the education process to make sure that they understand that the Congress made a good-faith effort to respond to the 

concerns that were expressed in the WTO case. Those conversations are ongoing, and it is my sincere hope and belief that we will 

continue to work with the Brazilians until we get to a resolution, 

and we are hopeful that gets done soon. 

Senator CHAMBLISS. Obviously, all of us are hopeful that a resolution to this will be forth coming in the short term. Assuming 

Brazil takes a drastic step to ask for a review panel, I am assuming that the department is well-prepared to defend the cotton industry on this. 

Secretary VILSACK. We are and we will. 

Senator CHAMBLISS. Let me ask you for just a minute about 

TEFAP. Obviously, we have seen a decrease in TEFAP of about 24 

percent over the last several years and we have put some very positive provisions in the Farm Bill relative to additional funding for 

TEFAP. 

America’s farmers are deeply committed to helping their local 

communities and obviously serving those in need and particularly 

through the food banks. 

In Georgia, for example, farmers have donated more than two 

million pounds of produce and many more are in place to donate 

additional loads of produce. 

I know that food waste is an issue that USDA is focusing on, and 

I would just like to ask you about grants and other programs that 

can help food banks capture more nutritious produce and get it to 

the people that need it. 

15 

Secretary VILSACK. Senator, we are working on that. You know, 

we have over 2000 people’s gardens that we have helped generate 

at USDA facilities, donating over 3 million pounds of produce to 

food banks across the country. We are working on trying to create 

additional applications that could be used by those who are delivering fruits and vegetables, say, to a restaurant for whatever reason, if it does not meet the standard of the restaurant, we would 

like them to have an application that they can click on to see where 

the nearest food bank would be that would be willing to accept that 

produce that was not grade A for the restaurant but it was perfectly fine for other uses. 

That is part of our food waste effort. We are lining up partners 

in the private sector. We have over 200 that have already agreed 

to work with us on reducing food waste on portion sizes, on reusing 

food, and on recycling food. 

There is a major focus on this. 

Senator CHAMBLISS. Great. Well, again, thanks very much for 

your quick implementation of the Farm Bill. It is not going to be 

easy. They never are easy, but I will say that I have seen more activity out of the FSA offices at the local level over the past three 

or four months than I had seen in a long time, and they have really 

done a good job of working with commodity groups to bring our 

farmers together to explain the Farm Bill in advance of sign-up 

deadlines, and that is the type of professional implementation that 

we needed, and it looks like it happen. 

Thanks to you and your staff. 

Secretary VILSACK. It may be because we put a Georgian in 

charge of it the oversight. 

Senator CHAMBLISS. I did not want to get to that, Mr. Secretary, 

but obviously she is doing one hell of a job and I am glad. 

Secretary VILSACK. No doubt about it. 

Senator CHAMBLISS. I am glad that you have her there with you. 

Thanks to both of you. 

Chairwoman STABENOW. I thought that is where you were headed, Senator Chambliss, and I could not agree more. 

Senator Bennet. 

Senator BENNET. Thank you, Madam Chair, and I would like to 

thank you and the Ranking Member and the Secretary, all of you, 

for your leadership in this incredibly dysfunctional town. It is wonderful to be on this Committee and to legislate in the way the 

American people expect to legislate, Democrats and Republicans 

working together, in passing not a 10-minute bill or a two-month 

bill or keeping the lights on in this land of flickering lights that 

actually passing a five-year Farm Bill. 

We are very grateful in Colorado for your leadership and for your 

leadership, Mr. Secretary, too. 

One of the, as you know because we have talked about it a lot, 

of vital interest to us was the Conservation Title in the Farm Bill; 

and you and the Chair talked a little bit about the regional conservation partnerships program. That is very important to us. 

The Colorado River District is looking for USDA to designate the 

Colorado River basin as a critical conservation area under the 

RCPP. The Republican River District wants the Ogallala aquifer 

designated. 

16 

I would like, Madam Chair, to enter their letters of support into 

the record if that is okay with you. 

Chairwoman STABENOW. Without objection. 

[The documents follow:] 

Senator BENNET. I am out of time but I think I have only gone 

for one minute. 

[Laughter.] 

Chairwoman STABENOW. Actually, I think we need to reboot the 

time line. I think you started with some of Senator Chambliss’s 

time. We will boot up another. 

Senator BENNET. One minute, quality not quantity. 

Chairwoman STABENOW. Yes. 

Senator BENNET. But I would like to enter their letters of support into the record, Madam Chair. 

I hope you will, Mr. Secretary, give them strong consideration 

both to meet the programs criteria. They are water-stressed regions 

of the country facing regulatory challenges; and as you know, Colorado really is the headwaters State in this country with the headwaters for 19 other states that are downstream of us. 

I do not know whether you would like to say anything else about 

the RCPP program what you are looking for. You said you were 

having listening sessions. Has anything come out of that yet? 

Secretary VILSACK. Well, Senator, I think we are going to try to 

designate these areas by the end of this month. Then we want to 

give folks the opportunity to put their projects together. 

There are three tranches of resources. $100 million that came 

with the Farm Bill, seven percent of the EQIP money and seven 

percent of CSP acres. We estimate that is roughly $200 million give 

or take and that money is going to be divided based on some competitive efforts nationally, 40 percent of it a national competition, 

25 percent of it within states. 

Colorado will have an opportunity to determine within the State 

resource where money goes, and then 35 percent will go into these 

critical care areas, and that will also be a competitive circumstance. 

The key here is to try to leverage these resources, and the key 

is also to look at this from a larger conservation landscape-scale, 

size effort. We started this several years ago. We think this, as the 

Chairwoman indicated, could transform the way in which we think 

about conservation and the effectiveness of conservation. 

We are excited about this, and we are looking for as many partners as we possibly can find. We also want to incorporate this in 

an effort that we will be doing this summer to encourage others 

who may not be aware of what is going on in rural America to be 

willing to invest more capital and create more credit opportunities, 

and conservation will be part of what we will focus on in that effort 

this summer. 

Senator BENNET. Well, we are excited about it too, and we would 

love to be one of your partners so let us know. 

Actually, another question along those lines with respect to partnerships. The application of the Endangered Species Act has become a top of mind issue for a lot of people in Colorado. Let me 

say for the record that I am a strong supporter of the ESA. It is 

a statute that has protected a lot of wildlife and a lot of habitat 

17 

that makes the West such a special place to live, and we have appreciate it be NRCS’s efforts to facilitate habitat conservation for 

the greater sage grouse. 

Can you talk about the agency’s ongoing work in this area in 

light of the certainty that is brought about by the five-year farm 

bill? I wonder in particular whether NRCS would consider investing additional resources into the Gunnison sage grouse, a species 

whose habitat lies mostly in Colorado. It is arguably in at least as 

tough shape or rougher shape than the greater. 

Secretary VILSACK. Senator, we started this effort focusing on 

seven species throughout the United States, trying to create geographic diversity in terms of this effort. 

The theory is that if we are asking folks to take steps to protect 

these endangered species that they have to have some degree of 

certainty that once they take the steps the rules are not going to 

change; and once they invest money, the rules are not going to 

change. 

Our theory is that if we can put together a conservation plan 

that we know will help increase and protect the habitat, that we 

would work with the Department of the Interior and obtain from 

them a commitment that if landowners follow certain procedures, 

they would get up to 30 years of regulatory certainty. 

We would be more than happy to take a look at specific species, 

but our goal right now is to try to focus on the seven which includes the sage grouse, which includes the lesser prairie chicken, 

and a number of other species. 

Senator BENNET. Well, I would love to work with you on that. My 

concern is that the local counties have done a tremendous amount 

of work. This is not a case where you have got people of ill will. 

You have actually got people that are really trying to do the right 

thing. 

My concern is that if we see a listing, all of those efforts have 

been for naught, and people are going to feel like the folks in D.C. 

once again are not paying any attention to what is going on at 

ground level. 

The cooperation is enormously important. 

Secretary VILSACK. Well, I am more than happy to have Chief 

Weller get in touch with your staff and we can set up an opportunity to have a conversation about that. 

Senator BENNET. Great. Good. 

Finally, another provision in the 2014 Farm Bill allows for expedited treatment of our national forest suffering from insect or disease epidemics. We have talked about this before. It is a huge problem as a warming climate and persistent drought has allowed the 

bark beetle and now the spruce beetle to kill millions of acres of 

national forests. I want to thank you because very early on in the 

first Administration you actually came out to see this for yourself. 

I enjoyed partnering with Senator Thune to shape the provision 

that gives the agency knew flexibility to treat these forests while 

still respecting environmental laws and community involvement. 

As you now suggested on which acreage to treat from 36 governors, including Colorado, Governor Hickenlooper, could you talk 

about the next steps for the Forest Service and can you discuss 

18 

how you will ensure the treatments are properly targeted so we do 

not trigger litigation objections from local communities? 

Secretary VILSACK. These areas in terms of the expedited NEPA 

process are limited to 3000 acres in size. We have received from the 

governors their recommendations. The Forest Chief Tidwell will be 

able to amplify or expand those recommendations with his own recommendations. 

The key here I think is to have the resources to be able to do 

the treatment necessary, and that gets back to this whole issue of 

how we pay for forest fires that have become more intense and 

longer and much more expensive. 

The reality is not long ago, roughly 15, 17 percent of our budget 

was on fire suppression. Today it is 40 percent and that creates uncertainty. This is why we have proposed and suggested a different 

way of funding fire suppression that would provide greater certainty in our forest budget which would allow us to make commitments, specific commitments, that we could guarantee and follow 

through with on the stewardship responsibilities. 

We are prepared to work with governors. We are prepared to 

move forward on these designated areas, but it will be much more 

difficult if we do not get a handle on how we pay for fire suppression. If we continue to do what we have been doing, treating it differently than other natural disasters, we are going to continue to 

squeeze the rest of the Forest Service budget, and the progress will 

be much slower than you would like. 

But if we could get a new system that is not about spending necessarily more money but spending it a little bit differently, creating 

greater certainty within that Forest Service budget, I think you 

would see accelerated efforts in these areas. 

Senator BENNET. Thank you, Mr. Secretary. 

Thank you, Madam Chair. 

Chairwoman STABENOW. Thank you very much. 

Now in the nature again as being the bipartisan Committee that 

we are, we are making a slight change. I thank my Republican colleagues for allowing Senator Leahy, who I know has to chair a 

Committee, to move ahead and then we will go back since Senator 

Grassley was here before and then Senator Hoeven. We will have 

two Republican colleagues and then we will go back to Senator 

Donnelly and get ourselves back going on track. 

But one of the wonderful things about the Committee is having 

a number of Committee chairs on the Committee, but that means 

that we need to be flexible. 

Senator Leahy, one of our distinguished former chairs. 

Senator LEAHY. Thank you, Madam Chairwoman. I thank Governor Hoeven and I thank Senator Grassley too for their courtesy. 

I want to echo also what Senator Bennet said as praise of you, 

Madam Chairwoman, that you kept us all together in getting this 

Farm Bill out. You had several former Chairman, former Chairs, 

former Ranking Members. I look around the room’s gallery on the 

wall of several of us. 

We came in here under your guidance. You said let us do legislation. Let’s not do talking points. Let’s do legislation. 

Secretary Vilsack, I have to compliment you on that because you 

and your staff worked so hard. We talked to each other in the eveVerDate Nov 24 2008 17:32 Feb 23, 2015 Jkt 000000 PO 00000 Frm 00022 Fmt 6633 Sfmt 6633 C:\USERS\MW42035\DESKTOP\DOCS\93029.TXT MICAH
19 

nings and weekends. Adrienne Wojciechowski here on my staff. We 

sent photographs of her to her husband so he could remember what 

she looked like because she was practically living down here. 

But everybody worked together and I think what a thrill it was 

when you and I and the Chairwoman went out for the signing of 

this bill in Michigan, and it is important to me. 

I obviously had an interest in the mid-sized dairy farms which 

are important in my State of Vermont. How the department interprets the premium rates for coverage in the new dairy margin protection program for a farm for the first four million pounds of milk, 

is going to have a major impact on the rule about midsize dairy 

farms. These midsize dairy farms often support multi-generations 

of farm families. 

I think it is critical that we encourage these farms to choose 

higher coverage levels in order to combat the erosion in the middle. 

This is something the census of agriculture referred to. 

There is going to be a steep learning curve because you go from 

a monumental shift from the milk MILC program where a farm is 

either in or out. Now, it is no longer a yes or no decision. They 

must have strategic thinking, consideration of farm’s aversion to 

risk, margin coverage levels, coverage protection, all of the things 

you were aware of. 

A lot of these small and midsize farms just do not have the expertise within them to determine all of that themselves. Are you 

going to be able to have adequate resources directed to help these 

dairy farmers as they transition to this new margin protection program? I say this knowing you have had huge cuts in your own 

budget. 

Secretary VILSACK. Fortunately, Senator, you and the Committee 

and the Congress had the foresight to put together resources for 

education and for modeling; and those resources, we plan on announcing the distribution of those resources sometime this month; 

and when we do, that will begin the process of engaging our universities and other constituent groups to give them the tools and 

the invitation to be able to help us amplify and educate and provide the modeling that folks will be able to use to determine what 

is best for their operations. 

I am confident that getting this money out the door quickly is the 

best remedy to the concerns that you have which is making sure 

that people have adequate time and adequate information to make 

these important decisions. 

Senator LEAHY. One of my top conservation priorities in this was 

the Regional Equity provisions. I want to make sure that the conservation programs benefit all states as required by the 2002, 2008, 

and the 2014 Farm Bill. 

But we have seen in a lot of years when regional equity states 

did not receive the minimum funding allocations even when there 

was a proven demand and need. 

We have this with Vermont’s Lake Champlain, a new EPA 

TMDL for phosphorus, a lot of complex things that they need. Lake 

Champlain is the largest body of fresh water in this country outside of the Great Lakes. 

Are you going to be able to assure that regional equity states 

have greater certainty about the minimum conservation funds they 

20 

are going to get so that all states can benefit from these important 

conservation programs? 

Secretary VILSACK. Senator, you might be surprised to know that 

you are not the first Vermonter that has talked to me about this. 

Your governor called me I think before the ink was dry on the bill. 

Senator LEAHY. I had a feeling he might. 

Secretary VILSACK. Yes, he did, and spoke at great length. We 

obviously understand the responsibility that this is the United 

States Department of Agriculture which represents all 50 states 

and we have to be very conscious of making sure that the resources 

are distributed appropriately and equitably. That ought to be a 

goal, and it is a goal, and we will do our best to comply with the 

directive. 

Senator LEAHY. Then lastly the REAP Zones, the Rural Economic 

Area Partnership Programs, these are extremely important. We 

have what we call the Northeast Kingdom of Vermont. It is a very 

rural area. 

In the past, many people, leaders in our State, have said how 

beautiful it is but have not really worked hard to do much for it. 

Now, we are doing a lot. The REAP Zone has helped. 

It has helped fire departments. It has helped people buy their 

first homes. It has helped businesses open doors, and I just wanted 

to encourage continuation of that. I spent a lot of time up there. 

I go through there. My wife was born in that part. My mother was 

born in that part of Vermont. 

To see the huge return on investment that you made in the 

REAP Zones up there, the taxpayer is going to get their money 

back in greater jobs and investment and all but the effect on the 

people and encouragement. Please keep an eye out for the REAP 

Zone. 

Secretary VILSACK. Well, both the zone in Vermont and the zone 

in North Dakota were extended in this Farm Bill to 2018. Candidly, I think the REAP Zones and its focus on regional economic 

development helped to spur our efforts at looking at how this could 

be done regionally in other parts of the country successfully. 

Senator LEAHY. Thank you my much. Madam Chair, I thank you. 

I thank my colleagues. I should also add to the knowledge that we 

have former Chairs of this Committee, we even have a former Secretary of Agriculture on the Committee. 

Chairwoman STABENOW. That is right. 

Senator LEAHY. I wish all Committees were this easy to put together complex legislations. 

Chairwoman STABENOW. Well, thank you so much, Senator 

Leahy, for your essential leadership as we were able to get this 

done. 

Senator Grassley. 

Senator GRASSLEY. If I could stand up, I would like to call my 

Committee members to attention to something that I tried to accomplish in the last Farm Bill, and the Chairwoman was very helpful but we did not succeed in the end even though the House 

passed this, the Senate passed, or the House passed it and the Senate passed it the same way. 

21 

The Conference Committee changed it so it makes it pretty impossible for the Secretary of Agriculture to do what I originally 

wanted it to accomplish to do. 

But this is an example of a general, the legal structure of a farming operation organizes the general partnership in Louisiana. The 

general partnership was highlighted in a Government Accountability Office report from last fall. 

There are 17 different owners of 22 LLCs that make up his general partnership. Sixteen of the 17 owners claim eligibility for farm 

subsidies based upon active personal management only, according 

to the GAO report. 

According to the last available records that we could find, these 

managers lived in seven different cities. The chart you give will say 

nine different cities. That has got to be corrected. It is seven different cities across three different states. 

I said that the Chairwoman tried to help us very much to preserve this in conference. You remember you reported to me that 

you were told, well, you really do not understand agriculture very 

well. 

It is pretty simple to understand the abuse of the farm program 

with an operation like this for 16 out of 17 people able to collect 

farm subsidies as the result of this. 

As I indicated to both the Secretary before and just now, it is difficult for him to write rules but he was given that responsibility. 

I wanted to ask him some questions along this line. 

This is Section 1604 of the Farm Bill which requires the Secretary to promote, promulgate a rule to better define, quote, ‘‘a significant contribution of active personal management,’’ end of quote. 

Congress previously approved, as I indicated, a much simpler fix 

by eliminating this to just one additional person. Of course, you can 

see with manipulation of the farm program like this you can see 

that it is pretty difficult for young people to get started farming 

when you have got abuse of the farm program like that. 

Mr. Secretary, I think the first question, I am just going to make 

a statement, unless you disagree with it. I think this entity that 

is organized here is just one example that we have from the report 

to maximize management efficiency is really some things that is organized to maximize farm subsidies. 

That is my opinion. Maybe I better ask you if that is too much 

for you to accept. 

Secretary VILSACK. Senator, I think people have been very, very 

creative with the law. 

Senator GRASSLEY. Okay. Then this is a question I would like to 

have you answer. I think it is simple. 

The GAO report cited farm service agency officials who essentially said the definition, quote-unquote, of actively engaged was so 

broad that—and I am talking about previous to this Farm Bill— 

was so broad that they could not enforce it even if they wanted to. 

Is that something you could agree as something that we heard 

testimony from some of your people, I mean, before you were even 

there? 

Secretary VILSACK. Yes, I have no doubt that there was some 

confusion about precisely what this definition is and is not. 

22 

Senator GRASSLEY. So then another question. Since the current 

definition of actively engaged stems from rulemaking, the U.S. Department of Agriculture had authority, even prior to this bill, I 

mean, our new law, to make changes to the definition before this 

Farm Bill was signed into law. 

That is not an accusation against you. That could be an accusation against any of the previous Secretaries of Agriculture. Would 

you say that is right? 

Secretary VILSACK. I think that is correct, Senator. 

Senator GRASSLEY. Okay. 

Secretary VILSACK. I think there was an opportunity to define it, 

and efforts were made. Not an easy task. 

Senator GRASSLEY. Okay. Then a follow-up. Does this new Section 1604 limit any of the existing authority—you heard my 

premise. You have a difficult job. I understand that. 

Does Section 1604 limit any of the existing authority you had, 

meaning prior to the legislation, had to change the definition of actively engaged before the Farm Bill passed? I hope the answer is 

no. 

Secretary VILSACK. Well, I am not sure about that, Senator. 

Senator GRASSLEY. Okay. 

Secretary VILSACK. The way I understand it the modification and 

the restriction that was then placed by virtue of the 2014 Farm Bill 

really, really narrows the capacity of the Secretary in this particular space. As I understand it, you essentially said, in essence, 

if it is a family farm, with a very broad definition of family farm, 

you cannot be focusing on actively engaged within the context of 

a family farm. 

Senator GRASSLEY. You are right. I agree with that. 

Secretary VILSACK. That creates a very, very narrow lane in 

which the Secretary can act. I have asked our team to educate me 

fully on all of the examples that people have raised about the concerns, because at the end of the day it is not really about credibility, it is not just about all that you mentioned, it is about the 

credibility of the farm programs to the 99 percent of America that 

does not farm. I think it is important. 

It is also recognizing that farming is different. Farmers in Iowa, 

the way they farm is a little bit different than the way they farm 

in Mississippi and probably different than the way they farm in 

Michigan. 

You have to understand and appreciate that. But you also have 

to take a look at ways in which people have been quite creative and 

ask yourself is this consistent with what the purpose of these programs are and I think the purpose is to reduce the risk of farming 

so people can stay in the business when mother nature does not cooperate. 

Senator GRASSLEY. I think basically I agree with you but let us 

go down that narrow lane then that you are talking about. 

Since it does not say anything about your existing authority that 

you had prior to this legislation, you can still fix this problem for 

all farms consistent with the single extra manager approach that 

Congress approved. 

Secretary VILSACK. I am not sure about that, Senator. I would 

be happy to look at that. 

23 

Senator GRASSLEY. Could you look at that? 

Secretary VILSACK. Sure. I would be happy to look at it. 

Senator GRASSLEY. Communicate with me. 

Secretary VILSACK. Sure. 

Senator GRASSLEY. Okay. Then my last question. The Government Accountability Office report also outlined that the FSA was 

not doing its compliance reviews in a timely manner. Has the Farm 

Service Agency taken any steps to fix that problem at the state 

level? 

Secretary VILSACK. Well, I think we are trying to adjust to the 

fact that the workforce has been reduced by 20 percent because of 

budget reductions, and we are trying to create a little better structure to our Farm Service Agency offices that would enable them to 

do all the work that they need to do. 

I can assure you that we are going to take compliance and the 

integrity of these programs very seriously. 

Senator GRASSLEY. Let me explain or just supplement what I 

said. We seemed like we had a lot of examples in the GAO report 

where at the local level there were a lot of decisions made that certain farming operations were not being actively engaged say, and 

later on an appeal at the state or the national level, except in one 

or two instances, they were overridden. 

Secretary VILSACK. I think our goal is to provide enough certainty and clarity that we do not have a whole series of appeals, 

that everybody knows what the rules are. 

Chairwoman STABENOW. I would ask you to wrap up, Senator 

Grassley. 

Senator GRASSLEY. I have no more. You bet. This will be the 

wrap up then. 

Going back to what you said you would look at and discuss with 

me, it is in that narrow area of things that are not defined as family farmers. 

Secretary VILSACK. Yes. 

Senator GRASSLEY. Okay. Thank you. 

Chairwoman STABENOW. Mr. Secretary, I just want to associate 

myself with Senator Grassley and I believe we have given you authority to address abuses and am confident that you will be able 

to proceed to do that. 

Secretary VILSACK. Some authority, Madam Chair. 

Chairwoman STABENOW. Well, we are looking forward to you 

using the authority you have. Thank you very much. 

Senator GRASSLEY. Very much as you can. 

Chairwoman STABENOW. Yes. 

Senator Hoeven. 

Senator HOEVEN. Thank you Madam Chairman. 

Secretary Vilsack, Governor Vilsack, good to be with you and 

working with you in your capacity as Ag Secretary. Thanks for 

your work on the Farm Bill. 

I also want to thank the Chairman and the Ranking Member 

again for their work on the Farm Bill, and I also want to thank 

you for your rapid implementation of the Livestock Indemnity Program, very important in the western part of our State and in South 

Dakota; and I have to say you really did jump on that and it is 

much appreciated. 

24 

I think this is a good Farm Bill. The implementation is going to 

take a lot of work to do as well. I know your people are working 

on it very diligently. I think it also would be quite useful for you 

to hear from farmers and ranchers on the ground. You have been 

out to our State before, and I would like to extend an invitation for 

you to come out, and I hope during implementation that you would 

be willing to do that, to come out and visit with some of our farmers and ranchers in our part of the country and get their input as 

you engage in the implementation. 

Secretary VILSACK. Senator, fortunately, they do not let me guarantee my schedule but I will do everything I can to make sure I 

am available to folks. 

Senator HOEVEN. Good. Well, if you would work with us, we will 

see if that is a possibility, and I think it would be useful for you. 

We have a very diversified Ag base both on the farming and ranching side, and I think that would help. 

Secretary VILSACK. Not as diversified as Michigan, but, yes, I 

know it is diverse. 

[Laughter.] 

Chairwoman STABENOW. That is true. I am so pleased, Mr. Secretary, that you remembered that. 

Senator HOEVEN. I would be willing to kind of debate that one 

anytime. 

[Laughter.] 

Senator HOEVEN. What I do want to talk about for a minute 

though is the wetlands mitigation bank that we included in the 

Farm Bill to help our farmers deal with their conservation compliance costs. 

That is one of the issues I think you can hear from our producers 

on, but just your thoughts now is you work to make sure that as 

you implement conservation compliance that you are doing it in a 

way that is farmer friendly and does not impose undue burdens or 

costs on our producers. 

Secretary VILSACK. Well, in terms of the mitigation bank, it is 

our intention to get this up and going by early 2015. We understand and appreciate especially in your neck of the woods that 

there have been a lot of issues that needed attention. We are doing 

our best to try to play catch-up on some of the things that may 

have gotten a little bit out of hand in terms of wetlands. 

I know that the approval process and the certification process, it 

created a huge backlog, and we have tried to address that. We have 

cut it in half. We have got a new initiative to put more people on 

the ground to help. 

We are going to do everything we can to make sure that we are 

farmer friendly and to try to get these determinations made as 

quickly as we can. 

Senator HOEVEN. That would be much appreciated. This is an 

area where the Chairman and I actually disagreed in terms of the 

tying crop insurance and conservation compliance together. 

Of course, that is why we included language on acre for acre 

mitigation, and also this wetlands mitigation makes it very important that as you move forward with implementation of this Farm 

Bill that you are talking to our farmers about how that is done to 

25 

provide them with the certainty that they need so that, like I say, 

it does not create undue costs and burdens for them. 

Secretary VILSACK. Well, NRCS is working to figure out ways to 

best communicate the option that producers have, and we will continue to do everything we can to make sure they have the information they need to make the right decision for their operation. 

Senator HOEVEN. Along that line, I want to go to a new regulation that the EPA has put out, Waters of the U.S. This is one that 

I am absolutely opposed to, that our farmers and ranchers are terribly concerned about not only because of the potential complexity 

and difficulty it creates for them but also the potential legal liability. 

Now, I think it was in front of our Energy Committee or maybe 

one of the Appropriations Committees. Gina McCarthy, Administrator of the EPA, came and testified in front of us and indicated 

that she was going to work with you I think and also with the 

Corps of Engineers on that implementation. 

This concept of significant nexus I do not agree with and I think 

is absolutely going down the wrong road. What assurances can you 

give me that this is not a good big-time problem for our farmers 

and our ranchers? 

Secretary VILSACK. Well, I think it is important to note that the 

Waters of the U.S. essentially says very clearly normal farming 

practices are not going to be impacted and affected. 

The Administrator has assured that this is not designed to provide more regulations in terms of ditches, and what we did was 

that we suggested the need for greater certainty and clarity which 

is why they have identified 56 conservation practices that will not 

require notification or permitting. 

That list can be expanded over time through an MOU that we 

have entered into and will enter into with EPA and the Corps. As 

situations arise, as folks confront challenges, I would fully expect 

that list is going to continue to grow and that list basically does 

provide farmers and ranchers a great deal more certainty than 

they had before because they can now be assured that if whatever 

they are doing is on that list, they do not have to notify anybody, 

they do not have to ask permission. They can proceed forward. 

We will continue to work with folks. I think the key here, Senator, really is for people to really understand what this covers and 

what it does not cover, and they are making an effort to try to 

make sure people understand, normal farming practices not impacted. Additional regulation of ditches, not the case. Conservation 

practices, 56 do not require notification. No notice, no permit. 

We will continue to work with you. If there are certain circumstances and situations where your farmers are proposing certain things and saying, well, what about this, get them to us and 

we will try to help say what the answer is for each individual situation. We are working with them. 

Senator HOEVEN. In asking EPA some of the same questions 

from the perspective of the farmer, if you have got a farmer and 

rancher who is engaging in his operations under this significant 

nexus, it appears to me they are at risk downstream to any group 

based on what occurs in the, quote, navigable bodies of water. 

26 

That is why we are adamantly opposed to this, and I think if you 

talk to farmers and ranchers you will understand that they are 

very concerned because EPA is not telling them that they are protected from liability downstream in the navigable bodies based on 

whatever farming or ranching activities that they may be undertaking. This is a big problem for our producers. 

Secretary VILSACK. Well, Senator, we are visiting with producers 

on a regular basis and they are expressing concerns; and as these 

concerns are expressed, we are working with our colleagues at EPA 

to make sure they fully understand and appreciate. 

This is, as you know, not the final. There is an opportunity I 

think for additional education and comments, and I think EPA is 

taking that into consideration, and I think they are hearing the 

concerns, and I would not be surprised if they are not addressing 

and trying to respond to those concerns. 

Senator HOEVEN. Well, and this is why I think it is very important that some of our farmers and ranchers have a chance to visit 

with you on this and other important issues. 

Thank you. 

Chairwoman STABENOW. Thank you very much. 

Senator Walsh. 

Senator WALSH. Thank you, Madam Chairwoman. 

Mr. Secretary, thank you for coming and thank you for your service. 

The Farm Bill is Montana’s Jobs Bill. The programs in the bill 

support jobs across the State, both on and off the farm. From risk 

management tools for farmers and ranchers to investment in rural 

economies to conserving our outdoor heritage, the Farm Bill is a 

one-stop shop for supporting rural America. It took too long to pass 

a new Farm Bill but thanks to support across the country and the 

leadership on this Committee, we have a chance to rebuild public 

trust by making sure it is quickly and fairly implemented. 

I commend your efforts in moving quickly to roll out the livestock 

disaster programs. Montana ranchers need that support from past 

losses from drought and blizzards. 

I am also happy to see the roll out of the Voluntary Public Access 

Program. This program holds incredible promise to continue opening up access to prime fish and wildlife habitat in Montana for 

hunting and fishing, building on Montana’s success with block 

management, and it will help sportsmen and land owners alike to 

continue to grow our 2.5 billion outdoor industry. 

But for the new Farm Bill programs in particular, it will take 

dedication and resources to get these right. I am deeply concerned 

that the cuts and office closures in the budget proposal will make 

it more difficult to get these programs out quickly and educate 

farmers. 

I sent a letter to your office on this very issue recently and I am 

still waiting on a response. We cannot shut the door on farmers 

and ranchers. They are the backbone of our rural economy, and 

closing even more offices would have a devastating impact in Montana where each office already covers many more acres than other 

states. 

Related to that, USDA is not utilizing the community-based 

grassroots organization of the FSA. FSA folks on the ground across 

27 

Montana are unable to start answering questions about the new 

programs from producers in their counties. I know they do not have 

the answers yet, but it is important that they feel free to talk to 

farmers about the new programs. This will help identify local problems and solutions before it is too late. 

On a more personal note, I was happy to see the provision that 

created the Military Veteran Agricultural Liaison. I know it can be 

hard adjusting to civilian life after active duty, and this position 

will allow USDA to have a central resource for veterans seeking opportunity in agriculture, creating jobs across Montana and across 

the country. I encourage you to act quickly to fill this position. 

Now, there are a few Montana priorities I would like to discuss. 

My first question, Mr. Secretary, is that the Farm Bill provides the 

opportunity to update payment yields which will be used in calculating a payment under PLC. 

This update for those who choose it will allow productive Montana farmers who enroll in the PLC to have a program that better 

aligns with their good farming practices. 

The bill also allows a voluntary base reallocation. Planning patterns have shifted quite a bit in parts of Montana. Some farmers 

want their base acres updated to reflect that transition. As you 

know, farm policies change over time, and it is common to use 

pieces of previous programs such as base acres and program yields; 

and for that reason, it is critical that the opportunity to update 

yields and reallocate base be offered to all farmers regardless of 

which program they choose. It is also important that FSA start the 

process as quickly as possible. 

My question is. Will all farmers be provided these opportunities 

and what steps have been taken to implement these two provisions? 

Secretary VILSACK. It is our hope that by the fall folks will be 

able to make appropriate adjustments to their acres and production. Our goal, Senator, is to try to get information out to folks so 

that they can begin the process of evaluating precisely how these 

programs would operate. 

That is why it is important for us to focus on getting the education money and the modeling money out which we are going to 

try to do this month. So, they will have that opportunity and they 

will also have, I think, adequate time to be able to evaluate the impact of these programs. 

I will tell you that we will continue to work with our local folks 

at the FSA offices. I am happy to visit with you about the issue 

of FSA offices because I am not sure that we have done a good 

enough job of explaining to you that this is not really about cuts, 

it is about restructuring the way FSA works so it can be better at 

its work, better at its job. 

Senator WALSH. Okay. The Ag land easement program administered by the NRCS has potential in Montana to serve our working 

lands. Montana land trust used the previous easement program to 

conserve 111,000 acres of our most productive land. 

Unfortunately, the usefulness of the easement program has been 

threatened by moving the decision-making from Montana to Washington. This has made it harder to get waivers for requirements 

that do not make sense on the ground in Montana. 

28 

The result is that thousands of acres in Montana could be locked 

out all due to restrictions that do not advance the goals of the program on those particular properties. 

Also the success of the new easement program depends on Montana’s NRCS staff’s ability to accommodate Montana’s agriculture 

practices. State offices should have the flexibility to waive regulations that reduce the Ag viability of the land while bringing no conservation benefits. 

How much flexibility will be given to state conservationists in the 

new Ag land easement program? 

Secretary VILSACK. It is my understanding that they are, that we 

look upon them as the principal decision-makers. One of the things 

that we attempted to do was, rather than being prescriptive in 

terms of how much money could be used for easements and how 

much money could be for wetland restoration, that we are giving 

state conservationists the ability to sort of gauge what their need 

is in individual states and then they can essentially appropriate 

and allocate the resources according to the needs. 

It is not going to be siloed. It is not going to be dictated to them. 

They are going to have some flexibility to be able to say, for our 

state more easements are important; for other states, more wetland 

restoration would be important. 

Senator WALSH. Okay. Thank you. 

Finally, the bark beetle infestation in the West has killed trees 

on millions of acres of forest land in Montana and across the West. 

Beatle kill hurts our rural economy by increasing risk of wildfire, 

reducing marketable saw logs, and discouraging tourism. Addressing the issue up front will save money in the long run. 

Governors across the country are awaiting your decision about 

the proposed designations for priority landscapes for treatment 

under the Farm Bill. In this critical period of planning ahead of 

seasonal vegetation management, are you confident the Forest 

Service can get work completed on the ground this year, using the 

insect and disease language in the Farm Bill? 

Secretary VILSACK. Well, I am confident that our Forest Service 

will do everything they possibly can to do the work that is necessary, Senator. 

I would say that the long-term capacity for us to do the job that 

you want us to do and that we want to do is dependent on us getting a different way of funding fire suppression. The fire suppression budget eats up a substantial amount of the Forest Service 

budget and creates the need for us to take money from restoration 

and rehabilitation resources to be able to fight fire suppression. 

It is replaced the following year but the problem is there is never 

any certainty about those resources. I think it’s extraordinarily important that the Congress addressed this, create a new and better 

way of fighting the fires and funding the firefighting which gives 

you greater certainty in the restoration and rehabilitation portion 

of the Forest Service budget. 

If you had that, if we had that, we would see accelerated activity 

in this area. We totally agree with you there needs to be a tension. 

Senator WALSH. All right. Thank you, Mr. Secretary. 

Madam Chairwoman, thank you. 

Chairwoman STABENOW. Thank you very much. 

29 

Senator Thune. 

Senator THUNE. Thank you, Madam Chairwoman. 

Mr. Secretary, thank you for being here and I want to take this 

opportunity to thank you too for prioritizing livestock disaster program implementation and for beginning to take those applications 

on April 15 of this year, and I also want to thank you for sending 

Undersecretary Scuse to South Dakota a couple of different times 

since the October blizzard that we had out there. 

There were several hundred livestock producers in South Dakota 

who lost tens of thousands of head of livestock during that blizzard 

and the Livestock Indemnity Program is really their only lifeline 

to sustain their operations. 

I am wondering if you can provide an update with how many LIP 

and LFP Livestock Forage Program applications you have received 

in South Dakota and the status of payments that have been issued 

for these programs. 

Secretary VILSACK. Senator, roughly twenty-five hundred applications between the two programs have been submitted from South 

Dakota. I can get you the specific dollar amount that has been distributed. It has been $16 million nationally. That number is probably dated. I get a report every Friday nationally in terms of all 

four of the disaster programs. I can tell you 33,000 applications nationwide. 

Primarily in the forage program is where a lot of the payments 

have been made. A handful of payments have been made but we 

are processing them as quickly as we can. 

In South Dakota, 2260 livestock forage applications and 535 LIP 

applications. It does not tell me how much money has been spent 

but we will get those numbers to you. 

Senator THUNE. Thank you. I want to ask a question too about 

the Commodity Title included in the Farm Bill because it is significantly different from and much more complicated than the direct 

payments that title replaces. 

The new Commodity Title includes ARC with this calendar year 

or farm level option. PLC within SCO option. There are one time 

choices that will last the duration of the Farm Bill or through the 

2018 crop year. 

With commodity crop margins expected to continue to be much 

tighter over the next few years, adequately educating farm program participants is going to be extremely critical. 

My primary interest in the issue is to ensure that USDA recognizes and supports the need to select a lead institution that will 

ensure programs of interest to producers in the Midwest and the 

northern plains including county and farm-level ARC as well as the 

PLC options are fairly represented in development of a web-based 

decision tools that are going to be available to producers. 

Since there are regional differences and differences in crop production methodologies and marketing, would you agree that if 

USDA would utilize multiple universities that are geographically 

diverse, more superior web-based decision aids would be developed? 

Secretary VILSACK. Yes, I think there is a recognition, Senator, 

that we have to be very careful about these selections for the very 

reason that you have addressed. If the modeling is skewed to one 

30 

commodity or another, you will end up maybe making the wrong 

decision in some parts of the country. 

We are going to do everything we possibly can to make sure that 

these resources are distributed to folks who are capable of establishing models that will be of most help and that will reflect the 

diversity of American agriculture. 

That is the goal. I cannot tell you today whether it is one or multiple but I can tell you that the goal for certain is making sure that 

there is no regional bias one way or the other, and I think that is 

important. 

I think folks are going to need information to be able to make. 

This is a very important decision. It is not a decision that they can 

reverse year-to-year. It is a once, this is it for five years. 

We want to make sure we give them adequate information. We 

want to give them time to be able to evaluate. We want to give correct information. That is the focus, and that is why we are trying 

to get these resources out by the end of this month. 

Senator THUNE. Great. Well, if you could, I think it would be 

really helpful to have one or more mid-western universities involved in that process if you could do that. 

Could you give us an update on CRP and implementation, general time line for sign up for general and continuous CRP? 

Secretary VILSACK. We expect and anticipate that the continuous 

sign-up will resume sometime this spring. I have not yet made a 

specific decision relative to the general sign-up. 

There are some complexities. We have changed the program a bit 

and I want to make sure that, as we look at these changes, that 

we do the very best we can to maintain this program but the continuous program will be resumed very, very shortly. 

We expect and anticipate continued interest in the continuous 

program, and I think the fact that we are going to see constrained 

acreage in CRP really forces us to be very focused on how we use 

these acres most effectively, and the continuous program gives us 

that flexibility to really focus on habitat or on pollinators or whatever it might be and on highly erodible lands. 

Producers are going to be given the right potentially to make a 

decision to opt out. 

Senator THUNE. Right. 

Secretary VILSACK. That is what I sort of want to be able to 

evaluate in terms of its impact on the general sign-up and how that 

opt-out procedure will work. We are in the process of finishing that. 

I think very shortly we will be making an announcement on where 

CRP is, but in my own mind I am not quite there yet. 

Senator THUNE. I just want to point out one thing. This is something that has to do with midterm management practices which I 

think needs to be addressed when that new CRP regulation is 

drafted. 

I have heard from far too many producers in South Dakota who 

have been told that the only midterm management practice approved for them is to either burn the permanent vegetative cover 

or to cut and bale it and then burn the bales. 

It seems to me that a much more reasonable alternative would 

be for all CRP practices that are subject to midterm management 

to allow the cover to be harvested, donate it to a third-party with 

31 

either a minimal reduction in the payment or no reduction at all, 

and discontinuing payment for midterm management practices. 

Everyone wins if this occurs, and the CRP contract holder, the 

taxpayer, and you get no reduction in wildlife or habitat benefits. 

I am wondering if you might consider making a change in CRP 

midterm management. 

Secretary VILSACK. Well, I think we recognize, we have heard the 

same concerns that you have and I think we recognize the need for 

more flexibility and the utilization of common sense. 

In fact, we just sent a bulletin out to our field offices in the last 

week or so on this issue. I think you will see more flexibility. I 

think you will see more common sense on this. I think we learned 

a lot during the drought in terms of the need for flexibility. 

I would expect you will be more satisfied than you have been. 

Senator THUNE. Good. That would be great. I mean, this is something that consistently is raised by producers is they look at this, 

this program and the way that it gets managed and it just makes 

no sense, particularly when you look at all the loss of cover. In our 

State wildlife habitat is a very important issue as well. 

Secretary VILSACK. I think that one of the things that I have 

learned in this process is that we really do need to be sensitive to 

how we make decisions about CRP because they are subject to 

being questioned in litigation which basically slows the whole process down. 

So, to the extent that we can be collaborative, to the extent that 

we can reach out to folks who have an interest and a stake in this 

and learn from them and attempt to be somewhat flexible and 

somewhat understanding of the various interests at stake here, I 

think we could do a better job of avoiding confusion, a better job 

of providing flexibility and perhaps reduce the amount of litigation 

involved. 

Senator THUNE. Good. It would be great if you could reduce litigation. I hear what you are saying and I understand that is something that you have got to prioritize but people look at burning 

bales or burning vegetative cover, they are just going why are we 

doing this. 

Thank you, Madam Chairwoman. 

Chairwoman STABENOW. Thank you very much. Before turning to 

Senator Casey, I just want to underscore, Mr. Secretary, one thing 

that Senator Thune was talking about on education outreach. Actually, it was our intent in writing the language more broadly that 

we would not have just one institution or one region doing this but 

that we would have multiple institutions throughout the region. 

Senator THUNE. Even if it is Michigan State. 

Chairwoman STABENOW. That would be good, that would be a 

great place to start, but we certainly do not want to see all of it 

going to one institution. I know you understand that. 

Senator Casey. 

Senator CASEY. Madam Chair, thank you. 

Mr. Secretary, thank you for being here this morning. I am sorry 

I had to run in and out. We are doing some juggling this morning. 

But before I get to questions, I wanted to try to maybe explore 

three issues. Dairy, an issue you and I have talked about over 

many years and I have always been grateful for your help and for 

32 

your understanding and the knowledge, of course. Dairy, 

microloans, and maybe healthy food financing initiative. 

But let me say first, I am grateful for your leadership at this department at a very tough time in our Nation’s history. It is a very 

difficult time to be running any substantial agency with all of the 

rancor and partisanship in this place but also with the sometimes 

limited funding that is available to do the things that we hope to 

do, and we are grateful for your public service all these years in 

a tough job. 

I am remembering. I do not know if you remember this, but I 

think it was maybe August of 2012 or September of 2012. We were 

together at a meeting. You were writing down all of the various 

programs that were directly impacting Pennsylvania with dollar 

amounts. 

I do not think I saved that but I should carry that card around 

because we need to remind folks about what is working and what 

is positive and constructive. I am remembering that as an indication of good progress. 

On dairy, we have had, in all the discussions that you and I have 

had about Pennsylvania, you have roots in our State. You know it 

well. We are second only to Wisconsin in terms of the number of 

dairy farms, and a lot of that story as you have heard me talk to 

you about and as you understand has been a difficult and a sad 

story. 

Families, one-or two-or sometimes three-generation family when 

they get to the current or the next generation, people in their 20s 

or 30s or 40s turning to their parents and saying I cannot do this 

or their parents saying to them you probably cannot do this. 

It has been a difficult story but we have got a little bit of good 

news to report in more recent time frames. Milk production in 

Pennsylvania is up nearly half a percent from a year ago; and with 

milk quality, reproduction, and herd management benchmarks improving, dairy exports are at an all-time high. 

Some good news there. The first question I had for you was on 

the dairy margin protection program. Talk a little bit about the implementation of that. 

Secretary VILSACK. Senator, we are on track to get this implemented by the September deadline that you all established in the 

bill. We obviously have work to do and that is part of why we are 

trying to get the education materials out and the web-based tools 

out so folks can make appropriate decisions. 

I certainly sympathize with the concern that you expressed about 

the small and midsize operators. It is not just about the dairy margin program. It is also about creating additional market opportunities which is why we have been focusing on local and regional food 

opportunities because often times you have the midsize producer 

competing against a very, very large producer who has, by the nature of their facility, greater efficiency, greater ability to provide 

quality and quantity. 

What we are trying to do is create alternative market opportunities where those small to midsize operators are not competing 

against the big guy in a commodity-based market but are directly 

relating to a consumer and a customer that they personally engage 

in. 

33 

Our hope is that it creates more opportunities for folks in the 

middle to stay in business but it is no question it is tough. We are 

going to get this program up and going in September. Hopefully, 

that will provide some help and assistance as well. 

Senator CASEY. That is great, and I am glad you mentioned those 

smaller dairy farms and the margin protection program as it relates to them. 

I wanted to ask you about microloans. We know that the Farm 

Bill established cooperative lending pilot projects to aid in the administration of microloans. I just wanted to get your sense. 

I guess this is section 5106 implementing those cooperative lending microloans programs. Can you talk about the implementation 

of that section of the bill? 

Secretary VILSACK. Let me just check. My focus frankly, Senator, 

has been on getting us in a place where we can increase the loan 

amount on the microloans from 35,000 to 50,000, and we expect 

and anticipate to be able to do that sometime this fall. 

We are still evaluating the pilots to try to figure out precisely 

how that could happen and in what circumstance. But with your 

question, we will go back and take a closer look at that issue. 

Senator CASEY. I am grateful. What I have tried to do over several years now is to try to create some opportunities where committees can have the benefit of those microloans where it is not only 

targeted but it is also in the context of incentivizing the growth in 

local markets, kind of home-grown food, and using microloans to 

stimulate that kind of activity. 

Finally before we wrap up, the Healthy Food Financing Initiative, another positive story to tell. We are seeing in Pennsylvania 

that the program right now is supporting renovation and expansion 

of existing stores in our State—I am sure this is true in other 

states as well—so they can provide healthy foods that communities 

want. Something like 88 stores and 5000 jobs. 

There is a $30 million investment of State dollars that has resulted in projects totaling $190 million. A great synergy between 

what the State was doing and what now the USDA is doing to help 

with that. 

I know part of that implementation is not just USDA but it is 

also HHS and Treasury. Anything you wanted to tell us that or any 

kind of an update? 

Secretary VILSACK. The fiscal year 2015 budget that we proposed 

includes money for the implementation of that healthy financing 

initiative at USDA. It is authorized but resources have not been 

appropriated so it would require an appropriation in 2015. 

Senator CASEY. Okay. 

Secretary VILSACK. We have been working with the Health and 

Human Services folks and with the Treasury Department in the 

use of credits in their grant program to try to encourage more focus 

on food deserts and food areas where there is a need for full-scale 

grocery stores or smaller operations that provide greater selection 

than a convenience store. 

Our focus I think at USDA has been primarily, initially in this 

space is to create new market opportunities for those small to 

midsized producers. 

34 

We have been working on expanding farmers’ markets, working 

on food hubs which will allow for an aggregation of locally and regionally produced food. 

Today we are announcing the farmers’ market promotion resources and the local food promotion resources that will be available under this Farm Bill, roughly $30 million. That is going to be 

potentially of some help and assistance as well. 

Senator CASEY. Thank you very much. Thank you for your service. 

Secretary VILSACK. My staff just provided me a note that there 

is a listening session on this issue on the 30th of this month in case 

your staff is interested. 

Chairwoman STABENOW. Thank you. Very exciting. The Healthy 

Food Financing Initiative was a very, very important issue. Thank 

you, Senator Casey, for raising that as well. 

Senator Johanns, we were talking before you arrived about having a former Secretary of Agriculture on the Committee. We will 

certainly miss you as you leave us at the end of the year, but we 

were glad as always to have your voice. 

Senator Johanns. 

Senator JOHANNS. Well, thank you very much. I have to say I 

think this is the best Committee in the United States Senate. In 

your leadership both the Ranking Member and Chair could not be 

better. So, I thank you. I will miss you. 

Mr. Secretary, it is good to have you here and I am going to give 

you a compliment. Every time we have asked you to show up and 

explain your budget or explain something that was going on, you 

have done it, and I want to tell you how much we appreciate that 

because it helps us do our job, and it makes the USDA more accountable which in the end we both agree is a good thing. 

I applaud you and your team at USDA for recognizing the important role that we play in on these Committees. I thank you for 

that. 

Secretary VILSACK. Thank you. 

Senator JOHANNS. Let me, if I might, focus on a very specific provision of the Farm Bill. I offered an amendment to establish an Undersecretary for Trade in Foreign Agriculture Affairs. 

Almost immediately then Senator Max Baucus spoke up and embraced the idea, and so it became bipartisan from the moment I offered it. It got substantial support here. It got substantial support 

in the United States Senate and became a part of them Bill. 

Part of the provision there provides that by August 6 you will report to us on the implementation of that. I just was curious, want 

to know, where are you at in terms of the discussions about that? 

Where are you at in terms of thinking about reorganization plans 

and how that is going to fit in and do you believe you will meet 

that August deadline? 

Secretary VILSACK. Senator, this is a lot more complex than I initially recognized. I can tell you that we had a meeting in my office 

where folks began to explain the various subparts of USDA that 

have some either direct or indirect connection to trade as you well 

know from your previous experience. 

There are obviously equities and passions and concerns that people have expressed. So, we are in the process of evaluating all of 

35 

those equities and making sure that we do a good job of identifying 

every aspect of USDA that may have involvement in this decision 

so that the report that we provide you is as complete as it can be. 

I do not want a situation where we report to you and then someone says, well, what about APHIS’ role in trade and why did you 

not include that and if you are going to include how do you include 

it. 

I want you to know that we are talking about this, and I recognize the need for a thorough and comprehensive review of it. We 

will do everything we can to meet the August 6 deadline. 

I do not know whether we will meet that or not to be candid. We 

will not meet it if, in order to meet it, I am going to sacrifice the 

quality of what I give you, but we will do everything we possibly 

can to get there by August 6th. 

There is a lot going on at USDA as you well know. We have had 

reduced workforce. We are continuing to stress budget constraints. 

So, we will do our best and we are taking this seriously and we 

are looking at it and we will do the best we can to give you as good 

a report as we can. 

I will tell you this. I do recognize the importance of trade generally to agriculture. I mean, we have had five or six good years 

in trade and that has certainly helped to stabilize farm prices 

across the board. We want to continue that and we also recognize 

how complex this issue is. 

Senator JOHANNS. Let me offer a thought because I think you are 

enormously diplomatic. I can only imagine sitting in your office—— 

Secretary VILSACK. You do not have to imagine it. You were 

there. 

[Laughter.] 

Senator JOHANNS. —and the people coming in and the various 

turfs and I can just feel the pressure of that weighing down on you 

because we have said to you we want to hear from you by August 

6. 

Thirty farm groups supported this. This had substantial support. 

Let me use this opportunity just to say to USDA this is really important. This is one you cannot outlast me because there are other 

advocates who want this to happen. 

There are 30 farm groups that want it to happen, and it just 

makes sense. You know, I look back at my time at USDA and so 

much of what I did was trade related. I would have given anything 

to have this position in place, and I get the complexities, I do, and 

I get the turf, I get the battles that are going on. 

Secretary VILSACK. If I can just say one other thing, Senator. It 

is further complex because our deputy, Darci Vetter, who has been 

so heavily engaged in trade discussions is now being proposed to 

move over to USTR. 

It is timely but there are a lot of moving parts here and I do not 

want to suggest to you that my answer should indicate to you that 

I do not think it is important or that I do not think it is something 

that we should do. I just want to make sure we do it right. 

Senator JOHANNS. Yes, we want it done right and we want it 

done. So, that is two things they need to do. It is very straightforward. 

36 

Let me, if I might, turn to trade. I have been offered the opportunity many times, as all of us have on this Committee, to talk 

about TPP, TTIP; and I have offered the opinion that I do not see 

a pathway to success with either one of those without trade promotion authority. 

I just do not think a trading partner is going to negotiate and 

give back and forth when they know that 535 people, after the 

agreement is reached, can hit it, amended it or whatever. 

I would like your comments on that. The President mentioned it 

in his State of the Union address. How important is it for us here 

in Congress to support the President on this one, and I do support 

him and I will help him in any way to get this, but how important 

is it to get those trade agreements done? 

Secretary VILSACK. Well, there is enormous opportunity for expanded agricultural trade with these two trade agreements. There 

are hundreds of millions of new customers that we could appeal to 

and that we would basically win a significant percentage of because 

of the quality and quantity and the price that we can provide. 

Having said that, I do not think we should underestimate the difficulty of these negotiations whether you had TPA or not, whether 

you had trade promotion or not, they are still going to be extraordinarily difficult because there is resistance on the part of some of 

our trading partners to open up their markets as open as our markets have been. 

I think there are two ways to approach trade promotion authority. You pass it and then you get the agreements or you get a decent agreement, a good agreement, you go to Congress and say, 

look, you got this opportunity. Trade promotion authority would 

fast track this. A great opportunity. Let us take advantage of it. 

I think either way you could get to where you need to be. But 

I do not want to underestimate the difficulties of these negotiations 

under any scenario. The Japanese are very difficult. I think there 

is a pathway to potential progress there but there is a lot of work 

left. 

Senator JOHANNS. Thanks. Thanks, Madam Chair. 

Chairwoman STABENOW. Thank you very much. 

Senator Gillibrand. 

Senator GILLIBRAND. Thank you, Madam Chairwoman. Thank 

you, Ranking Member. I so enjoy the work that we do on this Committee and I am grateful that you brought our Ag Secretary here 

to begin to discuss the Farm Bill. 

Mr. Secretary, it has been an honor and privilege to work with 

you. I think you have done an extraordinary job in meeting the 

needs of farmers all across America, and I want to thank you for 

your service. 

I would like to talk a little bit today about dairy if that is all 

right. In the 2014 Farm Bill, we required a number of changes that 

will impact dairy farmers across the country. 

Now, in New York, we have lost a lot of cows. We lost about 

65,000 cows between 2002 and 2012 and nationally dairy farmers 

have lost about $20 billion in debt equity between just 2007 and 

2009. 

37 

2009 was a horrible year for dairy pricing. The average dairy 

farm in New York State are small dairies. They are 150 cows and 

they typically have received MILC for free. 

Now we have a new program and my question is. How will the 

USDA conduct outreach to the smaller farmers to help them at enroll them in the new margin insurance program to ensure that they 

are still covered in the event of another bad year like 2009 and how 

will your USDA field offices help farmers decide what level of coverage to purchase? 

Secretary VILSACK. Well, the first step in the process is to get the 

educational materials and the decision-making materials which is 

why you all have had the foresight to provide up to $6 million to 

be able to do that. Those resources are going to go out the door 

very, very soon. 

That will allow us to engage our university partners in getting 

information out and in an appropriate way. It will also equip interest groups that have an interest in all of this to be able to begin 

the process of educating their members or constituents, their customers. 

Our FSA offices obviously will have information and will be in 

a position to be able to respond. Our goal here is to provide producers, whether it is dairy or any other producer, sufficient and 

adequate information and the time to make appropriate decisions. 

I think getting the educational resources out the door by the end 

of this month is clearly important to accomplish both of those. 

Senator GILLIBRAND. Do you think the margin protection program will be ready for September 1? 

Secretary VILSACK. Yes. 

Senator GILLIBRAND. That is great. Do you think FSA has all the 

stuff they need to do for what they need to do? 

Secretary VILSACK. Not today but they will. 

Senator GILLIBRAND. By then. Okay. 

Also related, the new Farm Bill stipulates that you cannot have 

both livestock gross margin and a margin protection program at 

the same time but a lot of our farmers have been using LGM since 

the good risk pool. 

The problem is that farmers purchase contracts at various increments in time but usually for a period that covers several months. 

So, these are farmers who are beginning to purchase contracts that 

are going to the fall. These farmers want the opportunity to evaluate MPP when the rules come out and decide if it is right for them 

but do not want to give up their LGM. 

The question is. How will the Secretary work to provide clarity 

on LGM dairy transition given that the new margin protection 

rules are still pending? 

Secretary VILSACK. Senator, I want to give you a correct answer 

on that so if you will let me get back to you. 

Senator GILLIBRAND. Okay. 

Secretary VILSACK. Because, as I sit here, I do not know the precise answer to that. I do know while that program is important, it 

is so inadequately funded it takes hardly anything in to get the resources used up. 

Senator GILLIBRAND. Okay. Maybe just give that to the package 

of the FSA folks as you are training them for September 1, just 

38 

that one piece, make sure they can advise the farmers accurately 

what to do. 

Secretary VILSACK. Good point. 

Senator GILLIBRAND. Second topic I would like to bring up is the 

healthy food financing initiative. This was really important for me 

because a lot of our communities do not have access to affordable 

fruits and vegetables and whole foods. 

I was really excited that we authorized it. It provides loan and 

grant financing to attract grocery stores and other fresh food retailers to underserved areas, urban, suburban, rural. 

You would be surprised, in New York State, we are one of the 

bountiful states but we have food deserts in the north country. We 

have food deserts in the Bronx. 

It does not matter if you are a big city or highly rural or mountainous, just access to healthy foods is sometimes very difficult. So, 

the question is. Can you assure us that the healthy food financing 

initiative will be administered in such a way that can get to all of 

these communities and recognize that even though it seems crazy 

that a state that is so bountiful like New York still has food 

deserts? 

Are they going to be able to implement that in a way that 

reaches all the communities that need it? 

Secretary VILSACK. We will be able to satisfy that we will pay attention to wherever the deserts are regardless of what state they 

may be located in. 

It is important, however, that we are able to receive an appropriations in the fiscal year 2015 budget to fund this program. It 

was authorized but not funded in the Farm Bill. So, we need and 

we have asked for millions of dollars in this fiscal year 2015 budget. If we get those resources, we will make sure that we do. 

Senator GILLIBRAND. Madam Chair, will you work with me to 

make sure we fund that because it is really vital for our State? 

Chairwoman STABENOW. Absolutely. I will just add that I have 

talked to Secretary of the Treasury because new markets tax credits had also been used for this and I have encouraged them to continue to identify new markets tax credits. 

Secretary VILSACK. HHS has had grant programs in the past 

that they have also used. We are collaborating with them even 

though we have not had a specific tool. There are ways in which 

we can use some of our rural development resources that are not 

quite as attractive as a grant but we are using them. 

Senator GILLIBRAND. To incentivize folks to invest, yes. That is 

helpful. 

Related, I have been working with the community development 

financial incentives program to really good affect. For example, 

with the support of an HFFI grant, we had teenagers in Brooklyn, 

the Cypress Hills neighborhood. 

We were able to start a youth-run urban farm stand, and these 

farm stands are great because these intercity youth who do not 

know anything about farming get a chance to learn where their 

food is grown, how it is grown. They tried vegetables they have 

never had before. They learn about small businesses. They learn 

how to manage a business operation. 

39 

They are extremely effective. So, the question is. How do you see 

HFFI complementing other programs like the farmers’ market promotion program or value-added producer grants? 

Secretary VILSACK. Well, it is all part of an effort to try to reconnect people with their food supply and have a greater appreciation 

for producers everywhere. 

It is all part of an effort to try to create additional market opportunities, whether it is urban, suburban, or rural. The reason why 

these become important is the shrinking middle of agriculture that 

I have deep concerns about. 

The folks at the top of agriculture are doing pretty well and they 

will continue to do well because they are extraordinary, they are 

efficient, they are productive, they have amazing export market opportunities. 

The folks who are small—they are doing okay because they have 

off farm income. It is the folks in the middle that have small-sized, 

middle-sized operations where farming is their principal employment and they are just having a hard time competing in a commodity market. 

Our goal is to try to create diverse market opportunities for 

them. So, all of this, it is an overall package to revitalize the rural 

economy. Production agriculture and exports, local and regional 

food systems, conservation, ecosystem markets and outdoor integration, and the bio-economy are the four cornerstones that you all 

have put in place in this Farm Bill to revitalize and rebuild a rural 

economy that will help some of these small and midsized operators. 

Senator GILLIBRAND. Thank you, Mr. Secretary. 

I just want to end with I also look forward to working with you 

on some food safety initiatives which are not in the Farm Bill but 

are not necessarily getting the attention from USDA that they need 

and a particularly different bacteria that affect poultry, making 

sure we focus on Campylobacter and other types of bacteria that 

we need to protract for our food supply. 

Secretary VILSACK. We are very focused on that. We are the first 

Administration to propose performance standards on 

Campylobacter. It is a tough word to say. 

Senator GILLIBRAND. I would love to work with you on that and 

also, when we processed meats, ground beef, there is so much work 

to be done. It is not a Farm Bill issue but I really want to move 

the ball on that issue. 

Secretary VILSACK. Okay. 

Senator GILLIBRAND. Thank you, Mr. Secretary. 

Thank you, Madam Chairwoman. 

Chairwoman STABENOW. Thank you very much. I know as we 

wrap up, Senator Cochran had another question. I have just a couple of comments and then I will turn to Senator Cochran. 

Mr. Secretary, on crop insurance I would be remiss if I did not 

indicate that when we look at all of the ways in which we have expanded the supplemental coverage option and new opportunities 

for the young farmers and so on, I want to make sure that specialty 

crop coverage which is so critical does not get lost or put at the bottom there. 

40 

It is very, very important that we create those opportunities for 

farmers that have not traditionally had direct payments or asked 

for any kind of direct subsidies. 

I know that Senator Gillibrand cares about this as well that we 

make sure those dollars are there and that crop insurance plans 

are getting out the door. 

Then finally, and I will follow-up with questions for the record 

but I am very excited about our Food Insecurity Nutrition Incentive Program. We had a very successful program called Double Up 

Bucks in Michigan. 

There have been programs in other places. I hope you will be 

looking to these successes in our country as you put together the 

best practices for the incentive programs. 

I am looking very much forward to working with you on these 

new opportunities for people who are using food assistance programs have the opportunity for healthy food purchases through 

farmers markets and so on. Very, very important. 

So Senator Cochran. 

Senator COCHRAN. Madam Chairman, thank you. 

Mr. Secretary, as you are aware, cotton producers are 

transitioning to a safety net known as the Stacked Income Protection Plan. It is based on crop insurance. 

Because this plan will not be available to producers before the 

2015 crop year, the Farm Bill provides transition assistance for upland cotton producers using their 2013 cotton base acres. 

When do you expect the department to hold sign-ups for cotton 

transition assistance? 

Secretary VILSACK. This summer, Senator, with payments this 

fall. 

Senator COCHRAN. Any specific dates in there? Summer is a big 

season in Mississippi. 

Secretary VILSACK. Senator, I do not have a specific date but we 

will do our best to get you specific information, but obviously we 

understand the importance of these transition payments and we 

want to make sure we get them out. 

Senator COCHRAN. The timeliness is important because of our observations about the weather. 

Mr. Secretary, conservation programs underwent significant 

changes during consideration of the Farm Bill. Programs such as 

the Wildlife Habitat Incentive Program and the Wetlands Reserve 

Program are maintained but consolidated into programs with similar functions and purposes. 

It has come to my attention that the Natural Resources Conservation Service has incurred a significant backlog in restoration 

costs from prior-year enrollments of the Wetlands Reserve Program. 

How will the department address this specific situation as it implements a new consolidated easement program, and what impacts 

do you expect from merging the Wildlife Habitat Incentive Program 

into the Environmental Quality Incentives Program? How do you 

envision USDA implementing the funding allocation for wildlife 

practices? 

41 

Secretary VILSACK. Senator, that is a number of questions that 

I want to make sure that we get you a full and detailed answer 

to. Let me give you sort of a 50,000-foot answer. 

We did recently announce the easement program and the wetlands restoration effort, and I think one of the things that will do 

in terms of processing is it is going to equip the state folks with 

a little bit more flexibility and power to make decisions which 

should make it easier and less time-consuming than in the past. 

They can now evaluate what they think their needs are relative 

to easements and wetland restoration and be able to allocate resources accordingly. So, that should shorten the amount of time it 

takes to get decisions made and resources to producers. 

In terms of the overall relationship of various programs, I think 

it is important to point out that this Farm Bill is historic in terms 

of conservation. 

For the first time I believe in the history of Farm Bills, the 

amount of money allocated to conservation programs generally currently exceeds the amount that will likely be spent on some of the 

safety net programs. That is a change. 

I think what we are now seeing is conservation in essence being 

part of that safety net, and I think it is important that we be as 

thoughtful and as strategic with these conservation dollars as we 

possibly can, and I like the balance you all struck in this bill with 

the regional partnerships that gives us leverage opportunity. With 

the remaining EQIP resources and the CSP resources we can individualize. 

We can focus on efforts as we have with endangered species to 

provide greater certainty and use tools in conservation to encourage sister agencies to provide regulatory certainty. We can use conservation resources to create new opportunities for private sector 

investment in conservation. 

We are going to see over time the ability to quantify, measure, 

and verify conservation results which will allow regulated industries that need those environmental results to be able to obtain 

them not by building great infrastructure, but by investing in private land conservation which creates a whole new vista of income 

opportunities. 

Utilizing the resources of conservation is all about soil, water, 

and air but it is also about how we leverage, how we multiply the 

economic impact of conservation so that it becomes a tool of rebuilding a rural economy. 

That is the instruction and direction I had given to our NRCS 

folks is to be creative about this and I think the tools that you all 

have given us, I think it is a great day for conservation, I really 

do. 

Senator COCHRAN. Madam Chair, I appreciate very much the 

candor and the full explanation the Secretary has given us on these 

subjects. I admire and praise you for your initiatives in the environmental area and conservation. These topics are very important 

to many of our states, mine included. So thank you. 

We look forward to working with you to help ensure that funding 

is available to do these things that we had hoped the Farm Bill authorized. 

Thank you. 

42 

Chairwoman STABENOW. Well, thank you, Senator Cochran. I 

know how important conservation is and what a key role you have 

played in this. 

Mr. Secretary, thank you very much. You can tell from the attendance this morning and the questions our top priority is implementation of the Farm Bill. We spent way too long getting to this 

point and are very, very pleased with the work you are doing. We 

know you have all hands on deck as you are moving forward and 

we commit to work with you as well. 

Getting this implemented in it’s entirety is the top priority for 

me and for all of our Committee doing this the right way under the 

legislative intent of the Farm Bill obviously is something we are 

committed to and we know you are as well. 

Secretary VILSACK. Madam Chair, if I could just thank you for 

the opportunity today to report. We will continue obviously to do 

that but you mentioned the Food Insecurity Pilot Program which 

is of importance to you. 

Our food and nutrition consumer services will be working with 

the National Institute of Food and Agriculture that is in the business of providing grants, to work collaboratively. 

We expect the initial solicitation to be in the fall. We fully understand and appreciate those who have had experience in this area 

before need to be drawn on. 

But we also want them to maybe bring on some new participants 

in this area so that this effort can grow. We are excited about the 

opportunity. We are going to try to use these resources that you 

provided creatively. 

Chairwoman STABENOW. That is terrific, and I know there is interest in partnering or mentoring between those who have done 

this before and those who want to do it. There is really some opportunity I think to be creative in this space. I appreciate your doing 

that. 

Secretary VILSACK. Absolutely. 

Chairwoman STABENOW. For the Committee members, any additional questions for the record should be submitted to the Committee clerk five business days from today. That is by five p.m. on 

Wednesday, May 14. 

Without any further questions, the meeting is adjourned. 

[Whereupon, at 11:24 a.m., the Committee was adjourned.] 

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