"A Review of the U.S. Grain Standards Act"

House Subcommittee on General Farm Commodities, Risk Management, and Credit

2025-06-26

Loading video...

Source: Congress.gov

Summary

This meeting focused on the urgent need to reauthorize the United States Grain Standards Act, highlighting its critical role in maintaining the reputation and competitiveness of U.S. grain in global markets and addressing potential improvements for modernization and efficiency.[ 00:13:11-00:13:36 ] [ 00:15:47 ]

Witnesses and committee members underscored the Act's importance for farmers, exporters, and international trade, particularly in preventing disruptions to essential inspection and weighing services.[ 00:24:27 ]

Themes

Importance of Reauthorizing the U.S. Grain Standards Act

The reauthorization of the U.S. Grain Standards Act is crucial for ensuring the continued integrity and reliability of American grain in the global marketplace, a reputation often referred to as the "gold standard." A lapse in authorization, even for a short period, would disrupt inspection processes, potentially causing significant financial impacts for farmers and chaos in the supply chain. Timely reauthorization provides stability for farmers, grain handlers, and international customers who rely on the U.S. official grain inspection system.[ 00:24:27 ]

Modernization and Technology in Grain Grading

There is a strong consensus on the need to modernize grain grading technologies to improve accuracy, speed, and consistency, moving beyond the current legacy methods that are time and personnel intensive.[ 00:24:41-00:25:18 ]

Speakers emphasized the potential of visual imaging technology to reduce human error, enhance objectivity, and address staffing challenges.[ 00:57:12 ] Congress is urged to allocate dedicated resources and provide FGIS with flexible authorities to foster partnerships with industry and academia for technology development and deployment.[ 00:25:31-00:25:58 ]

Flexibility in Emergency Waivers

While mandatory official inspection and weighing of export grain are strongly supported for market integrity, there is a recognized need for enhanced flexibility in issuing emergency waivers during service disruptions.[ 00:26:14-00:26:32 ]

[ 00:26:36-00:26:41 ] The Act should clarify the definition of an "emergency" and authorize FGIS to issue conditional waivers, provided buyers and sellers mutually agree and the transaction does not undermine the Act's objectives.[ 00:26:41-00:26:54 ] [ 01:21:43 ] This would ensure the continued flow of U.S. grains during unexpected challenges without compromising the system's overall integrity.[ 00:27:00-00:27:05 ]

Role of the Grain Inspection Advisory Committee

The Grain Inspection Advisory Committee plays a vital role as a public forum for industry, producers, and FGIS to discuss improvements and adaptations, such as technology adoption and specific grain grading factor reviews.[ 00:48:35 ]

Its continued existence, which is tied to the Act's reauthorization, is seen as crucial for facilitating dialogue and addressing industry concerns.

Impact on Farmers and the Economy

The U.S. Grain Standards Act directly impacts farmers by determining the price they receive for their grain and ensuring market access.[ 00:40:15 ]

The reliable quality and consistency backed by federal inspection provide a critical competitive edge for U.S. farmers and exporters in the highly competitive world market. Any disruption to the system would negatively affect farm income and the broader agricultural economy.

Tone of the Meeting

The tone of the meeting was largely collaborative, bipartisan, and urgent, emphasizing the critical need for timely reauthorization.[ 00:13:56 ] [ 00:15:47 ]

[ 00:28:17 ] There was a strong sense of unity among committee members and witnesses regarding the importance of the Act and the collective goal of strengthening the U.S. grain inspection system.[ 00:15:47 ] [ 00:24:16 ] Participants expressed optimism about the potential for technological advancements while also conveying concern about the consequences of inaction or disruption to the current system.

Participants

Transcript

All right, good morning.  I'm going to give you the 30-second warning.  It is on.  Are these on?  Okay.  All right, I have it as 10 o'clock.   Good morning, everyone.  Thank you for joining us today.  I'd like to start by welcoming the witnesses before us as they help to lay the groundwork for legislation to reauthorize the United States Grain Standards Act.  I also want to thank Ranking Member Davids for participating with me to make today's hearing happen.  Originally passed in 1916, the United States Grain Standards Act gives the Federal Government the authority to set official marketing standards for grains and oilseeds.   It provides procedures for grain inspection and weighing that are essential to helping U.S.  grain maintain its strong reputation for reliable quality and consistencies.   Bad actors in the 1970s routinely manipulated the market in various ways to take advantage of producers and buyers, including through bribing officials or contaminating shipments.  However, over the years this Committee, working with the USDA and industry partners, devised a system of standards and measurements that have earned the positive reputation we see now, ultimately benefiting both farmers and consumers.   While much of the Act is permanently authorized, such as mandatory inspection and weighing of exported grain, there are still key provisions that are set to expire this September.  A lapse in authorization would disrupt the current grain inspection and weighing process, potentially creating dramatic consequences for the U.S.  grain industry.  Grain standards play a critical role in keeping a key agriculture supply chain strong and supporting U.S.  trade while ensuring farmers receive a fair price and buyers get the product   they need.
Thank you, Chairman Scott, for holding today's hearing.  I look forward to working with you and the rest of the subcommittee on reauthorizing the U.S.  Grain Standards Act later this year.  The inspections provided by the Federal Grain Inspection Service define and classify grains, as well as assign grades to specify weight and quality requirements.   These inspections provide a gold standard assurance backed by the federal government to both grain buyers and sellers.  Grain farmers in Kansas and across the country participate in a very competitive world market.  Foreign grain buyers should be confident in the process we have in place to ensure that our exports are adequately inspected.  As we move ahead with reauthorization, I hope we can take this as an opportunity to support and improve our grain inspection system, which remains critical to global grain trade.   I'm proud that Kansas is home to the one-of-a-kind Kansas State University Department of Grain Science and Industry, which prepares students to become agricultural professionals in this space.  As we discuss potential improvements in technology for grain grading, we must consider how to prepare the next generation of our workforce to adapt to changing jobs.   I'd like to thank our panel of witnesses for making the trip all the way to D.C.  during one of the hottest weeks of the year.  I very much look forward to your testimony and appreciate your time and your expertise.  Again, thank you to our chairman for holding today's hearing, and I look forward to working together on reauthorization this year.  I yield back.