The State of the Livestock Industry: Producer Perspectives

House Subcommittee on Livestock, Dairy, and Poultry

2025-03-04

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Source: Congress.gov

Summary

This meeting of the Subcommittee on Livestock, Dairy, and Poultry focused on the current state of the livestock industry from the perspective of producers, highlighting significant challenges and opportunities [ 00:14:20 ] . Discussions covered critical issues such as animal disease outbreaks, the impact of tariffs, market dynamics, and the necessity of a comprehensive Farm Bill [ 00:16:06 ]

. Members sought testimony on what policies are working, where investment is needed, and where government intervention should be minimized [ 00:16:58 ] .

Themes

Animal Disease Outbreaks and Response

The livestock industry, particularly poultry, has been severely impacted by Highly Pathogenic Avian Influenza (HPAI) and Avian Metapneumovirus (AMPV), causing significant flock losses and economic hardship [ 00:35:51 ]

. Producers expressed frustration with the slow pace of USDA's review process for imported vaccines and advocated for HPAI vaccination strategies that minimize negative trade impacts . There was a strong call to include AMPV under USDA's Livestock Indemnity Program (LIP) to provide financial assistance, which is currently lacking for this disease . Concerns were raised about HPAI spreading to other species like dairy cattle and the impact of federal hiring freezes and staff reductions on research and response efforts . The recent robust strategy announced by USDA to address HPAI was cautiously welcomed, with pleas for it to encompass the broader poultry sector, including turkeys, and to be holistic in its approach to the virus .

Trade Policies and Market Competition

A major point of contention was the impact of tariffs, with several members and producers expressing strong opposition, viewing them as detrimental to American consumers and producers . Mexico, a top export market for pork, and Canada, a partner in feeder calf trade, were specifically mentioned, with concerns about retaliatory tariffs and disruptions to integrated supply chains [ 01:10:01 ]

. However, some argued that tariffs are warranted in cases of unfair trade practices by other countries . Producers highlighted the critical role of exports for profitability, with pork exports adding $66 per marketed hog, and called for continued funding for foreign market development programs . The issue of market consolidation, particularly in beef packing, was raised, with calls for stronger enforcement of competition laws and support for local and regional processing capacity to build a more resilient food system . The importance of mandatory Country of Origin Labeling (COOL) for beef was also emphasized for fair markets and consumer transparency .

Regulatory Burden and Workforce Challenges

Producers voiced significant concerns over regulatory overreach, citing California's Proposition 12 as a prime example of a state law increasing operating costs, creating business uncertainty, and raising food prices without scientific basis . This law, impacting producers outside California, was criticized for potentially leading to a "patchwork" of conflicting regulations and discouraging future generations from farming [ 01:49:00 ]

. The cattle industry expressed worry that similar mandates could affect their practices . Workforce shortages, especially for year-round agricultural labor, were also a major concern . There were calls to expand and refine the H-2A visa program to better suit the year-round needs of livestock operations and address the high costs associated with it .

Farm Bill and Strategic Investments

There was a consensus on the urgent need for a new five-year Farm Bill to provide stability and respond to market changes, with strong support for the bipartisan Farm, Food, and National Security Act of 2024 [ 00:16:06 ]

. The importance of protecting "orphan programs" for specialized industries like sheep production was highlighted . The need for robust funding for animal disease programs, research at land-grant universities, and the beef checkoff system was stressed as crucial for the industry's success [ 00:16:48 ] . Additionally, the vulnerability of relying on China for essential vitamins and trace minerals was brought up, prompting discussions on reigniting domestic production for food and national security .

Tone of the Meeting

The tone of the meeting was largely serious and concerned, driven by the significant challenges faced by the livestock industry, particularly animal disease outbreaks and economic pressures . Speakers expressed frustration with regulatory hurdles, slow governmental responses, and the resulting economic uncertainty for producers . Despite these challenges, there was an underlying emphasis on the importance of bipartisan cooperation and collaboration between industry and government to find effective solutions . An urgent sentiment prevailed, especially regarding the need to pass a Farm Bill and address the ongoing HPAI crisis . Moments of optimism were present when discussing strong beef demand and the potential for positive change through joint efforts . Many legislative efforts received appreciation and support, indicating a willingness to work together on critical issues [ 00:16:32 ]

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Participants

Transcript

All righty, take your seats.  Meeting will come to order.  Please rise and join me for a quick prayer and the Pledge of Allegiance.  Please stand.  Lord, thank you that we all get to live in the greatest country in the history of the world.  Thank you for all of our ag producers all over the country that are doing what they do best, which is to feed, fuel, and clothe not just this country but the rest of the world as well.  Pray for wisdom and discernment for this committee, and we pray for this year and we're about to have.  In Jesus' name, amen.   Please join me for the pledge.   Welcome and thank you for joining this morning's hearing entitled The State of the Livestock Industry Producer Perspectives.  After brief opening remarks, members will receive testimony from our witnesses today and then the hearing will be open for questions.  In consultation with the ranking member and pursuant to Rule 11E, I want to make members of the subcommittee aware that other members of the full committee will also be able to join us today.   I recognize myself for an opening statement.  It's an honor to chair this hearing of the House Agriculture Committee's Subcommittee on Livestock, Dairy, and Poultry in the 119th Congress.  As the fifth generation Kansan, having grown up on my family farm, I wrote pens and doctored thousands of sick cattle at our preconditioning feed yard.  I understand the grit, tenacity, and courage that it takes to make a living in agriculture and the burden of responsibility for feeding the world that comes along with it.   As we get started this morning, I want to recognize Scott Foote with Foote Cattle Company, who is in the audience with us, along with his daughter, Molly Foote.  His family feeds cattle throughout the state of Kansas.  He's my guest this night, State of the Union, and I appreciate him joining us this morning.
Chairing this subcommittee for the second Congress in a row is a unique honor for me as I represent the Big First, where producers sell $10 billion worth of livestock, dairy, poultry, and products like beef, milk, and eggs every year.   That does not happen in a vacuum.  It takes the entire animal agriculture chain to make that happen, and we see it all in the Big First District of Kansas.  From the producer to the feedlot and from the harvest facility to the distributor, every role is important in delivering protein to the market and to the consumer.   During the 118th Congress, members of this committee traveled the country to visit with farmers, ranchers, and agriculture producers about the need for a five-year farm bill that is long enough to provide certainty and short enough to respond to market changes.  Chairman Thompson and I hosted more than 150 Kansans at a listening session in the middle of a wheat field near Gypsum, Kansas, and I suspect that many of the issues raised there will also be raised again today.   I was pleased to see those issues directly addressed in the Farm, Food, and National Security Act of 2024, which passed on a bipartisan basis out of this committee last year.  That legislation would have maintained American food independence, invested tax dollars where we would see a return on those dollars, protected crop insurance, promoted trade programs that helped America remain competitive and secure,   conducted rigorous oversight of executive branch, promoted animal health, invested in agriculture research at America's land-grant universities, and much more.  As the chairman of the Subcommittee on Livestock, Dairy, and Poultry, I was proud of that legislation, and as a Kansan, I was proud too.  I'm here to hear from you all today about what's working, what should be considered, where additional investment may be required, and where the federal government needs to just get out of your way.   As time has taught us, even if well intended, more legislation and regulation is almost never the answer.   The past four years under the Biden administration were a perfect example of what can happen when the government gets in the way.  Whether it was proposed seminole framework that would have increased costs for producers and consumers with no real impact on public health, its boss response to the highly pathogenic avian influenza, or water regulations which would have put several processing facilities out of business, we must learn from these mistakes and not hamstring America's farmers, ranchers, and our ag producers.
Thank you very much, Chairman Mann and members of our subcommittee for, I think, this important timely hearing.  It's important that we   have people who are where the rubber meets the road, so to speak, talk to us about the state of the livestock industry throughout the country and the regional impacts that we're all feeling with the challenges that we've had in the last several years, especially with the   high-path avian flu in the poultry industry and the dairy industry and how we've tried to address that.  So it's important that we have that conversation here today.  But let me also say that this follows on the backdrop of the President's announcement of tariffs pending with regards to Canada, Mexico and Canada.   Canada, Mexico, and China being implemented today.  And for those of you who I've served with, I've had the privilege to serve with over the years, what I say is not new.  I've never been a fan of tariffs, regardless if it's a Democratic or Republican administration.   I just think that there are attacks on American consumers, there are attacks on producers, and everyone has leverage in that game.  And, by the way, I remember being a part of the effort to rebrand NAFTA, NAFTA II, or the United States-Mexico-Canada Accord, which was at the time when I voted for it and supported   on a bipartisan fashion, heard that it was the greatest, best trade deal ever known to mankind.  And, my gosh, if that were the case, on two of our biggest trading partners, Canada and Mexico.  By the way, it is subject for review next year.   They not only are our top trading partners, but I'm looking forward to hearing witnesses' comment about their view.

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