USDA Steps Up to Help American Agriculture
May 30, 2022 This past March, I and approximately 6,000 other agricultural representatives had the opportunity to gather in person once again at the 2022 Commodity Classic. Held in New Orleans, LA, there was plenty of new products to see, evening events to attend, and, most importantly, the chance to finally see long-time industry friends “in the flesh.”
One of those in attendance was acting Secretary of Agriculture Tom Vilsack. Although he has been serving in this role since mid-2020, COVID restrictions have kept him from making many in-person speeches since then. Indeed, he alluded to this fact in his opening remarks.
“This is one of the first opportunities I’ve had as Secretary to talk to a very large group,” said Vilsack. He then went on to talk about the importance of the American farmer to our nation’s food security and noted all the struggles, particularly financially, that have dogged this same group since 2020.
“Recent supply chain disruptions from the global pandemic to [Russian President Vladimir] Putin’s unprovoked war against Ukraine have shown just how important it is to invest in this crucial link in the agricultural supply chain here at home,” he said. “Fertilizer prices have more than doubled since last year due to many factors including Putin’s price hike, a limited supply of the relevant minerals and high energy costs, high global demand and agricultural commodity prices, reliance on fertilizer imports, and lack of competition in the fertilizer industry.”
To help alleviate this, and set the stage for future domestic fertilizer production, Vilsack announced that USDA will make available $250 million through a new grant program this summer to support independent, innovative, and sustainable American fertilizer production to supply American farmers. “The planned investment is one example of many Biden-Harris Administration initiatives to bring production and jobs back to the United States, promote competition, and support American goods and services,” said Vilsack. “As the President said [at the State of the Union], we are working to rebuild the economy towards resilience, security, and sustainability, and this support to provide domestic, sustainable, and independent choices for fertilizer supplies is part of that effort.”
He also said USDA was working with state attorneys general, many of whom are asking if all the price increases seen in the fertilizer business are solely the cause of supply chain disruptions and the Ukraine war. “I recently read remarks from a food industry executive who was asked about rising costs. He said, ‘we are raising our prices to cover these, and then some.’ And I thought to myself: ‘And then some? What is that all about?’ There shouldn’t be a ‘and then some’ in the circumstances we face today.”
Whatever the outcome of these USDA-led initiatives, it was certainly good to once again be able to interact with the Secretary of Agriculture in person. Hopefully, more such in-person “talks” will become the norm as the 2022 growing season moves into the fall.
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