▶ 0:09:49right. Good morning. I'm going to give you the 30 second warning. It is on. Are these on? Yeah, okay. He's on time. All right, I have it as 10 o'clock. Good morning everyone.
▶ 0:10:19Thank you for joining us today. I'd like to start by welcoming the witnesses before us as they helped 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 uh to make today's hearing happen. Uh originally passed in 1916, the United States Grain Standards Act gives the federal government the authority to set official marketing standards for grains and oil seeds.
▶ 0:10:43It provides procedures for grain inspection and weighing that are essential to helping US grain maintain its strong reputation for reliable quality and 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.
▶ 0:11:06However, 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 US grain industry.
▶ 0:11:36Grain standards play a critical role in keeping a key agriculture supply chain strong and supporting US trade while ensuring farmers receive a fair price and buyers get the product they need. Trust and consistency are what make the US grain industry the gold standard across the globe. I hope the discussion day will provide Congress with necessary insight into the importance of grain standards and shed light on areas where improvements may be necessary. I look forward to getting this vital piece of legislation across the finish line.
▶ 0:12:05With that, I'll turn it over to Ranking Member Davids for her opening remarks. Thank you. Uh, good morning everyone. 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 US 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.
▶ 0:12:30These 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.
▶ 0:12:59I'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 adapt to changing jobs. I'd like to thank our panel of witnesses for making the trip all the way to DC during one of the hottest weeks of the year.
▶ 0:13:29I I very much look forward to your testimony and appreciate your time and your expertise. Uh again, thank you uh to our chairman for holding today's hearing and I look forward to working together on reauthorization this year. I yield back. Thank you uh ranking member Davids. I should have said this before, but in consultation with the ranking member and pursuant to rule 11E, I want to make the members of the subcommittee aware that other members of the full committee may join us today.
▶ 0:13:57I expect uh Chairman Thompson to come back from a meeting that he is in right now. And I would now like to recognize uh Ranking Member Craig for any opening comments she'd like to make. Thank you so much, Chairman Scott and Ranking Member Davids. Considering the fact that we are in the middle of a worldwide trade war, we should be doing everything we can to avoid further disruption to our domestic trade system.
▶ 0:14:24Every summer, grains planted by hardworking motans cover 40% of my district. Ensuring grain can get from our farms and grain elevators and onto ships bound for overseas markets requires an operationally efficient and properly funded federal grain inspection service. That is why I'm so glad to see the bipartisan nature of this hearing today and the support from across this subcommittee for reauthorizing the US Grain Standards Act.
▶ 0:14:52Our grain farmers need to know they can rely on the federal government and USDA as reliable partners, not roadblocks to trade. Reauthorizing the US uh grain standards act is an important for our farmers and their customers, and I'm glad to see this bipartisan effort to ensure we meet their needs.
▶ 0:15:15Thank you again for holding this hearing and thank you to our witnesses for coming to educate us today about the critical role grain standards play in your businesses and the farm economy. Mr. Chairman, I yield back. Thank you, Ranking Member. Uh the chair would request that other members submit their opening statements for the record so the witnesses may begin their testimony and to ensure that there is ample time for questions. Uh each of the witnesses will have uh approximately five minutes.
▶ 0:15:43And our first witness today is Mr. Nicholas Friant. Nick serves as the chair of the National Grain and Feed Association Grain Grades and Weights Committee and is the director of raw material quality and regulatory at Cargill. Uh our next witness is Miss Kia Mikish. Is that right? Uh the president of the American Association of Grain Inspection and Weighing Agencies.
▶ 0:16:04Kia is also the vice president of the North Dakota grain inspection where she oversees the operations and strategic direction of her familyowned network of agricultural inspection and testing businesses in Fargo, North Dakota. Uh our third witness today is Mr. Dave Walton, secretary of the American Soybean Association. He grows soybeans, corn, alphalfpha, grass, hay, and also raises beef cattle at his family farm in Wilton, Iowa with his wife and two sons.
▶ 0:16:33and I'll turn it over to ranking member uh Davids to introduce our final witness. Thank you, chairman. I'm uh excited and proud to introduce a canen to testify today. Uh Dr. Kevin Donley is an ameritus professor of aronomy at Kansas State University and a farmer in central Kansas. Uh during Dr. Donley's 47year teaching uh 47 uh year teaching career.
▶ 0:16:57He taught college students about grain quality and grain grading using federal grain inspection service or FGIS standards. He also conducts workshops illustrating FGIS grain inspection procedures for the international grains program at Kansas State University for industry professionals throughout the world. Uh Dr. Donley, thank you for joining us today. I yield back. Dr. I used to go right past your area headed to Tuttle Creek. It's a wonderful, wonderful part of the world.
▶ 0:17:26Thank you uh to all of our witnesses for joining us today. We'll now proceed to your testimony. You have five minutes. The time in front of you will count down to zero at which point uh time has expired. Uh if you go over by 5 seconds, that's okay. If you go over by 10 or 15, it's $5 per second. Um Mr. Font, please begin when you're ready.
▶ 0:17:48Chairman Scott, Ranking Member Davids, and members of the subcommittee, thank you for the opportunity to appear before you today to provide the perspective of the National Grain and Feed Association on reauthorizing the US Grain Standards Act. I am Nick Fryant, director of raw material quality and regulatory at Cargill and chairman of NGFA's Grain Grades and Weights Committee. Cargill is proud to be a longtime participant in the US grain system and member of NGFA. Since 1896, NGFA has represented grain industry members that operate more than 8,000 facilities.
▶ 0:18:19This includes farmer-owned cooperatives and multinational grain exporters. Together, we rely on a strong, consistent, and transparent official inspection and weighing system to deliver confidence and value across the global supply chain. We urge Congress to reauthorize the US Grain Standards Act in a timely and bipartisan manner. Doing so will provide certainty to farmers, grain handlers, and international customers who depend on the integrity of the US official grain inspection system.
▶ 0:18:47I want to focus on two core issues that are top priorities for our industry in this First, investment in grain grading technology to speed and improve the inspection process and second strengthening the emergency waiver authority to ensure continuity and flexibility in grain export inspection The US grain inspection system has long set a global benchmark for quality and reliability.
▶ 0:19:12While this basic framework of grain standards has remained stable over time, the international grain market has become increasingly competitive. Thus, our inspection and grading systems must evolve accordingly. Today, the Federal Grain Inspection Service still relies on legacy technologies for determining grade factors that ultimately influence a commodity's value and fungeability. FGIS must prioritize research, development, and validation of modern grain grading technologies that improve accuracy, speed, and consistency.
▶ 0:19:42The agency should actively collaborate with industry and academia to identify innovative tools that can reduce human error and improve grading objectivity. Furthermore, we believe that new technologies can help the agency drive efficiencies, reduce costs, and address the staffing challenges it faces. All of which ultimately benefit US farmers, agrous and rural economies.
▶ 0:20:06We believe the US Department of Agriculture should allocate dedicated resources, both staffing and funding to expedite this process. NGFA and its members are ready and willing to partner with USDA and FGIS to pilot and implement new technologies provided there is a clear pathway for scientific validation, standardization, and eventual deployment.
▶ 0:20:28Therefore, we have worked with our partners at the American Association of Grain Inspection Weighing Agencies and the American Soybean Association, who are also testifying today, on language for the US Grain Standards Reauthorization Act that will provide FGIS with the necessary tools to focus their resources on this important issue. We encourage this committee to approve this proposal.
▶ 0:20:50The second central area we urge Congress to address is the need for enhanced flexibility in issuing emergency waiverss of official inspection requirements during service disruptions. The 2015 reauthorization wisely included provisions requiring FGIS to act transparently when official services are disrupted at export ports due to withdrawal of a service by delegated state agencies. Let me be clear. The US industry strongly supports the requirement for mandatory official inspection and weighing of export grain.
▶ 0:21:19It is fundamental to preserving market integrity and the credibility of our supply chain. But during natural disasters or other force majour events or in rare instances where buyers and sellers mutually agree to wave inspection due to service disruptions, the act must allow for pragmatic flexibility. We recommend that Congress revise the act to clarify the definition of emergency and authorize FGIS to issue conditional waivers.
▶ 0:21:46Further, the waiver would be would be applied provided that the buyer and seller voluntarily agree. The absence of an official inspection does not impair the transaction and such a waiver would not undermine the objectives of the act. Establishing transparent and predictable contingency planning for future disruptions would provide exporters, importers, and customers with confidence that the flow of US grains can continue during unexpected challenges without compromising the overall integrity of the system.
▶ 0:22:12While I have highlighted two key priorities, we are ready to discuss other elements of the act including advisory committee functionality, ensuring timely appointments and maintaining a quorum. Clarify use of user fees. We support FGI's final rule that decoupled schedule A fees from tonnage based rolling average fees. We will continue to monitor the impact of the new fees on the industry moving forward and user fee cap reform limit the cap to USGSA regulated commodities.
▶ 0:22:41The US grain inspection system is a foundation of our country's reputation as a reliable agricultural supplier. Timely reauthorization of the US grain standards act combined with the enhancements we've outlined today will ensure that our inspection system continues to meet the high expectation of US producers and our global customers. As chairman of the NGFA grain grades and weights committee and on behalf of Cargill and the broader grain industry, I would like to express my sincere appreciation for your oversight and bipartisan leadership on this issue. We look forward to working with you to modernize and strengthen this vital act.
▶ 0:23:10Thank you for the opportunity to testify and I welcome your questions. Thank you, Miss Bish. Good morning. Thank you, Chairman Scott and Ranking Member Davids, as well as Chairman Thompson and Ranking Member Craig for priorit prioritizing this important issue and working together to hold this bipartisan hearing. My name is Kia Mkish. I am privileged to serve as president of the American Association of Grain Inspection and Weighing Agencies or IGUA.
▶ 0:23:37I am also the vice president of North Dakota Grain Inspection, the third generation of my family to help lead the business. Eggs members are agencies delegated and designated by USDA's Federal Grain Inspection Service to weigh and inspect the nation's grain. From the public agencies such as the state departments of agriculture of Washington, Missouri, Alabama, or North Carolina to private agencies like my own, AGA's members work alongside USDA's FGIS to provide essential support to the agricultural economy.
▶ 0:24:07The US grain standards act authorizes this unique public private partnership to carry out its uniform standards and export grain inspection mandate. While FGIS and certain state agencies weigh and inspect every load of grain on an export vessel, state and private agencies will conduct nine times as many inspections before grain ever reaches port. At all hours of the day and night, our inspectors are at rail yards, grain elevators, and in the lab.
▶ 0:24:32Yes, we work to maintain trust in US grain contracts, but we're also testing for toxins harmful to Americans and our livestock herds. The export inspection mandate underlies official inspection, but it also allows a uniform voluntary inspection system to provide trust in US grain, no matter whether it is destined for export or for domestic feed, food or bofuels production. The significance of this system might not be obvious, but it helps explain why America remains the world's leading agricultural exporter.
▶ 0:25:03Before the 1976 act, our grain markets were inefficient, even chaotic. Markets did not trust US grades and weights, which meant that producers and agra businesses earned lower prices abroad than their grain was really worth. Today, thanks to official inspection, US grain standards and quality are the gold standard of the world. Buyers will pay a premium for American grain, giving our farmers and exporters a critical competitive edge. American standards are the universal reference for grain contracts.
▶ 0:25:31Even transactions that never touch our country rely on them. Our system is so successful that changes to the act should always be weighed cautiously. But the committee should also know that cracks are beginning to show and maintenance is required. Grain inspection has relied on the same basic technology for 100 years. At the as the egg supply chain has become more efficient, inspection remains reliant on an evershrinking pool of highly trained human inspectors. It's time and personnel sense intensive.
▶ 0:26:01The lack of technological advancement is creating unnecessary costs to taxpayers, exporters, producers, and our own agencies. We have become the bottleneck. Without new technology, the consequences could be stark. The rigorous standards that were yesterday's privilege will be tomorrow's burden simply because we lack modern tools to implement them efficiently. On the other hand, the efficiencies reaped by grain inspection technology would reduce costs in the food supply chain and the direct cost to taxpayers of maintaining the inspection system.
▶ 0:26:32The barriers of new technology reflect the fact that FGIS and official agencies have a near monopoly on the data and expertise necessary to develop the technology. But we are not R&D agencies nor venture capitalists. We need to be able to work flexibly with the private sector to find solutions to our unique problems and foster the conditions necessary for investors to take risks in our field. FGIS's dedicated staff have made a heroic effort to advance technology, but they need more than resources.
▶ 0:27:00They need flexibility that reflect the realities of the unusual small market for inspection technology. I urge the committee to reauthorize the act with a modest toolbox of new authorities for FGIS to speed technology development.
▶ 0:27:14Specifically, Congress should should clarify in the statute that FGIS may leverage official agencies for R&D, provide other transactions authority for inspection technology research and development, and establish a modest dedicated funding account through user fees and appropriations to support the evaluation and deployment of new technology.
▶ 0:27:34With these tools, FGIS can coordinate flexible partnerships with research institutions, technology developers, official agencies, and the grain trade so that promising promising technologies can be developed outside government, validated in the real world, and approved quickly once they reach FGIS. This reauthorization is an opportunity to modernize the most trusted inspection system in the world, ensuring it remains competitive, cost-effective, and resilient.
▶ 0:28:01I want to thank the committee for recognizing the urgency of this issue and for your ongoing support of American agriculture and the inspection system that underpins it. I look forward to your questions. Thank you, Mr. Walton from the great state of Iowa. Five minutes, please. Thank you. Uh good morning, Chairman Scott, Ranking Member Davids, and distinguished members of the House Agriculture Subcommittee on General Farm Commodities Risk Management and Credit.
▶ 0:28:29It is an honor to join you today to testify on behalf of the American Soybean Association regarding this committee's review of the US Grain Standards Act. My name is Dave Walton and I'm a soybean farmer from Iowa. I also have the privilege of serving as secretary of ASA which represents US soybean farmers across 30 main soy producing states. Soybeans are the largest egg export in the US and a robust international trade is a priority of our industry.
▶ 0:28:55Market access and relationship maintenance would not be possible if it were not for the trusted and reliable grain inspection and marketing efforts undertaken by the agricultural marketing services federal grain inspection service as authorized by this US grain standards act. For most soybean farmers, our sole interaction with FGIS designated or delegated agencies and the US grain standards are at our local elevator.
▶ 0:29:20When I deliver my soybeans to the elevator, they're then tested, sorted, and consolidated into larger lots for eventual shipment. The grain standards determine the price a farmer like me receives for their soybeans at the elevator. And I know the official grain grades provide our international customers with the knowledge that the commodity they receive has been assessed for quality, purity, moisture, and soundness.
▶ 0:29:44Recently, the industry conducted a series of conversations with stakeholders across the soybean sector, including farmers, inspectors, regulators, exporters, and international about the value and perception of FGIS and the US grain standards. While the full results are still being evaluated, initial feedback shows that the value of the US grain standards and the federal inspection is extremely high for the soybean exports value chain and our international customers.
▶ 0:30:13Global customers consider FGIS the international gold standard for grain grading. Inspections carry the weight of the US government, creating peace of mind for international customers and providing impartiality that private inspections may lack. Additionally, the standards are simple and the customers rely on that simplicity to mitigate risk. The ability to effectively hedge risk through futures market is a key differentiator for US origin soybeans.
▶ 0:30:40The longstanding simplicity and consistency of US grain standards have allowed for the development of extensive futures markets for US products that promote true price The US soybean industry has a strong relationship with FGIS and when issues arise, we can address them in a manner that meets the needs of US farmers while maintaining the integrity of the standards.
▶ 0:31:02Most recently, the US soy industry worked with FGIS to review and remove soybeans of other color or SBOC as an official grade determining factor under the US standard for soybeans. This was due to rising occurrences of SPOC resulting from a new soybean seed variety that had a tendency to produce off-color seed coats. This had no impact on the soybeans protein or oil content, but farmers were being penalized because of the seed coat color.
▶ 0:31:31In response to res to rising levels of SPBOC, FGIS conducted a study on the functionality of protein and oil content of the soybean samples containing varying amounts of SBOC. The results found that there was no significant differences in the protein or oil content as it compared to samples not containing SPOC.
▶ 0:31:52However, marketing concerns still remained and FGIS took multiple meetings with industry, solicited feedback, and provided notice of proposed rulemaking to remove SBOC from the US standards for In July of 2023, a final rule was issued removing SBOC as a grade determining factor for soybeans, a win for soybean farmers, an example of this industry collaboration that we seek.
▶ 0:32:18Changing the standard for soybeans benefited farmers, exporters, and international customers by providing additional clarity and ensuring our trading partners knew that no matter what, they were still receiving the soybeans that they required. Reauthorization of the US Grain Standards Act is vital for the continued success of US soy in the international On behalf of ASA, I thank the subcommittee for their timely attention to this expiring provisions of the US Grain Standards Act.
▶ 0:32:47We appreciate the opportunity to share the importance of the federal grain inspection system and look forward to working with this committee to reauthorize the grain standards act this year. Thank you and I look forward to your questions. Thank you, Mr. Walton. Dr. Donley, please begin when you're ready. Chairman Scott, Ranking Member Davids, and members of the subcommittee, thank you for the opportunity to testify. I'm Dr. Kevin Donley, ameritus professor of aronomy at Kansas State.
▶ 0:33:12My experience with the US Grain Standard Act is through my teaching, so I offer a different perspective since I'm not directly involved with grain handling, merchandising, or processing. I'm most familiar with the FGS standards and inspection process, which is the focus of my grain grading course, the crops contest that I've trained students for, and the workshops that I conduct for the international grains program at Kate. I also own a farm in central Kansas, so I know how important reliable and cons and consistent grain standards are for our producers.
▶ 0:33:41I've been interested in grain quality since my 4 and FFA days exhibiting grain samples at the county fair. So, as a professor, I've tried to integrate crop quality topics into several of my aronomy courses. In the grain science program at K State, we offer three very unique degrees in milling, feed, and bakery science. Graduates typically enter industries with a vested interest in quality as end users of grain.
▶ 0:34:04Aronomy students learn how environmental and management practices affect the quality of grains produced which may in turn impact the grade and price received by the farmers as noted by Mr. Walton. So although most of our students do not take specific courses on the subject or become grain inspectors we strive to incorporate some knowledge of the federal grain standards into our curricula especially for these As mentioned the system is also called the gold standard.
▶ 0:34:31What that means that it provides uh benefit to producers, handlers, merchandisers, processors, exporters, importers and end users of It also determines the manner in which grain is segregated, stored, handled and transported along the supply chain. As I inter interact with foreign visitors enrolled in the IGP courses at Kate, I have found them eager to understand how our integrated system of impartial third-party inspection functions.
▶ 0:34:58A visit to the National Grain Center is generally included in these courses to showcase FGIS activities which maintain the integrity of our export markets. FGI standards typically describe physical charact characteristics of grain such as test weight, damaged kernels, foreign material, etc. Factors and factor limits differ for each crop and reflect the levels of soundness and purity consistent with typical end uses.
▶ 0:35:22The system provides a basis for marketing that can include quality specifications and the FGS official inspection certificate then provides validation of the actual quality and weight of grain loaded. Although not required for official grade, FGS also provides many other quality tests upon request such as micotoxins or chemical residues and composition factors such as oil or protein that may impact in use. Most of the act is permanently authorized as noted, but several pro provisions expire in September.
▶ 0:35:53It's critical that we maintain the ability of FGIS to continue its functions and not allow a lapse that could disrupt grain exports so critical to our trade balance. My peer witnesses have offered some recommendations to consider as you develop legislation for reauthorization, which I support. As already noted, there's a strong focus on advancing technologydriven solutions to reduce costs and improve efficiency.
▶ 0:36:17An example that I might relate from my personal experience is the uh potential use of imaging to facilitate inspection. Our personnel uh FJS personnel pass rigorous tests and undergo extensive continuing training to ensure inspection accuracy. I know from training my crops team that is a very challenging and tedious process. Many of them become very good at it and can well transition into a grain inspection position. But very few of them aspire to do that.
▶ 0:36:48Although visual inspection has served the system very well for many years, advanced imaging technology may be able to give equal or even better inspection results and could help meet limited workforce challenges in the future. Incorporating more technology might also make careers in grain inspection more attractive to young people. If their focus can be first on the interest in technology rather than tedious inspections or crawling around taking samples on top of a barge, they may be more interested in entering the the profession.
▶ 0:37:18I strongly encourage you to move forward promptly with reauthorization of the US Grain Standards Act to avoid a lapse, including the proposed provisions that will further enhance the act. more detailed version of my testimony will include in the record. Thank you for the opportunity to testify today. Thank you all for your important testimony today. Uh at this time, members will be recognized for questions in order of seniority alternating between majority and minority members in order of arrival for those who joined us after the hearing convened.
▶ 0:37:47Uh every member will be recognized for five minutes each in order to allow us to get as many questions as possible. Um, I now recognize myself for five minutes. And during the first Trump administration, significant efforts were made to restructure and streamline key functions within the USDA, including the realignment of FGIS. Mr. Fion, you noted your support of former Secretary Purdue moving FGIS back under AMS.
▶ 0:38:15Are you able to speak to any measurable improvements as a result of the realignment? And additionally, are there any issues remaining whether structural or cultural that hinder the effectiveness of FGIS that we should be aware of? Thank you, Mr. Chairman, for the question and also like to thank former Secretary Purdue for that decision to realign uh FGIS to put put the agency under AMS.
▶ 0:38:40And I think some of the areas that we we definitely saw improvements and and what we heard both from the agency and and actually Mr. Purdue was putting the service back in federal grain inspection service. And so we saw much much better relationship with the agency where we wanted to collaborate and make sure that we still had the most effective efficient grain inspection service in the world. So we definitely have seen those types of improvements.
▶ 0:39:07As far as future improvements, current leadership at the at the agency has been very open to maintaining that dialogue. And that's what we'd like to continue to see going forward is that opportunity to interact with them when we have concerns, when there's issues that the industry needs to address together and and be able to continue to have that open dialogue and conversation with them. Uh consistent, reliable grain standards are an essential piece of the puzzle for our producers being able to maintain market access.
▶ 0:39:39Mr. Walton, your testimony alluded to the fact that as a producer, the work of the FGIS is done beyond the farmgate and is not necessarily felt on a daily basis within your operation, but it's foundational to your overall success as a farmer. Even though farmers may not directly feel the impact of the work that FGIS does, it is critical.
▶ 0:40:00Can you share with what some of the real immediate impacts would be if services were disrupted due to a lapse in authorization even for a short period of time? Yeah, thanks for the question. Um, you're correct. Uh, we don't normally have direct um direct contact with it. But what what we do is rely on that system to keep the grain flowing through.
▶ 0:40:23So once once we deliver to the elevator um it it gets consolidated on in my case I'm consolidated onto a barge shipped to to New Orleans transloaded there and if there was any disruption in that system it would disrupt the flow of soybeans from from my farm to our foreign customers. Um and that would that would basically back up the system and and create an impact on price. So the direct impact on us would be lower price.
▶ 0:40:48Uh the longer term impact would be uh just a disruption of that that uh supply chain from from my farm to our foreign customers. Thank you. Uh I'm going to yield now to Miss Davids. Thank you, uh chairman. I'm sorry. I'm going to recognize Miss Davids for her five minutes. Thank you. Uh thank you mi uh Mr. Chairman.
▶ 0:41:15Here in Congress, uh I have the uh privilege of representing a district in Kansas. Uh Kansas is often called the wheat state, uh where agriculture plays such a critical role in our country's economy. Kansas farmers and ranchers feed not just the nation, but the world. And in 2023 alone, Kansas farmers exported 5.2 billion dollars in agricultural products around the world. Whether it's wheat, sorghum, or soybeans, canons know what it means to work hard and produce results.
▶ 0:41:45As a member of the House A committee, I have made it a priority to support family farmers and strengthen our supply chains because I know that uh this is a way to support our economy. I know how vital uh these folks are to rural economies and to our country's global competitiveness.
▶ 0:42:06I'm also proud that the Kansas City region is home to the National Grain Center and that Kansas State University continues to lead in agricultural research and workforce development through uh its department of grain science and industry. So, Dr. Donley, uh I will say I've I've continued to be impressed by the work that's happening at Kate, particularly in the international grains program.
▶ 0:42:29I'm curious if you could share a bit uh a bit more about how the program helps build relationships with our international trading partners and supports the export of highquality American grain. Well, thank you for the question.
▶ 0:42:44Um I think the international grain program institute mission really reflects uh the u the answer to your question in that we try to work with u industry professionals internationally do some training for them and hopefully in return uh that will enhance their uh use start their use or enhance their use of US grains. Um so these relationships established through these courses um are are a first a first step in that.
▶ 0:43:14Um many of the courses involve partnerships then with our national um organizations focus focused on grain exports like the US wheat associates and and US export grain council united sorghum check off program. Um in fact wrapping up today is uh the 18th year of a uh subseran African milling uh course that's supported by US wheat associates.
▶ 0:43:40Um and some facts from that in 2024 IGP hosted 814 participants from 8 44 countries and 31 on-site and 11 distance courses. So, uh certainly it's uh a way to make a connection with uh folks from around the world that users of our grain. That's amazing. Uh thank you. Um and I I might want to get a few more of the stats after. Uh we'll follow up on that.
▶ 0:44:06Uh my next question, I was hoping to hear from uh Miss uh McKish about your um uh testimony you gave. You started to talk about this. I know it's in your written testimony as well. the potential for grain grading technologies.
▶ 0:44:22I am curious if you could share a bit more about uh how additional either appropriations, you had mentioned user fee uh allocations or additional staffing could be used to support the Federal Grain Inspection Service research and development uh partnerships. Thank you, Reiken. Member Davids.
▶ 0:44:46At the most basic level, the private se sector should be the driver of the research and development and FGIS should remain being able to quickly evaluate and approve technology when a finished product is submitted to them. However, there are many tools that we can work on to be a partnership with industry official agencies and FGIS.
▶ 0:45:07Right now, um, flexible partnerships would allow for FGIS to dedicate personnel and experts to technical assistance and facilitation at any stage of the development process as necessary. The partnerships could do a number of things that would improve investor and entrepreneur confidence and final approval approval down the road, which is important because it means more developers will make an attempt in the first place.
▶ 0:45:31Cooperative agreements are a good start and FGIS has utilized this tool, but they have much more red tape that can scare away small developers. Other transactions were specifically designed to remove those barriers to entry for small innovators and would allow for more flexible partnership structures that follow the needs of the technology. So in review, FGIS would not drive the process specifically, but their formal involvement as a resource to developers could make the R&D smoother and increase attempts at innovation.
▶ 0:46:01Many of these flexibilities might not be used in full right away, but we're looking at this for the long term. For example, FGIS could use funding to incentivize development of an especially important technology. Or FGIS could work with the private sector to facilitate a consortium of developers and researchers working towards a technology goal that private markets struggle to produce on their own and other transactions can also help for those flexibilities using grad students in other areas.
▶ 0:46:31Thank you. and I'd love to uh stay in touch about additional innovations happening. Mr. Chairman, I yield back. Chair now recognizes the gentleman from North Carolina for five minutes. I thank the chairman and my friend uh from Georgia. Uh Mr. Friend, I'm going to start with you. Uh I always have a few basic uh elementary questions that I like to get uh on the record, get the answers on the record because I think they're important for the record.
▶ 0:46:57Uh as you know uh the grain inspection advisory committee is authorized under the grain standards act. Uh this is a group that advises the the department on matters dealing with grain inspection of course. Uh recommendations by the committee help AMS to better meet the needs of growers, handlers, processors and their customers. Can you tell me what happens to the grain inspection advisory committee if the grain standards act is not reauthorized? Thank you for the question.
▶ 0:47:28And if the act is not reauthorized, it's one of four provisions that it expires. And so in fact, we would lose the advisory committee. So tell me, what are some of the areas that you've seen the advisory committee work on that have benefited growers and others in the grain value So, I' I've personally had the chance to be on the committee three different times, and what we see is a great opportunity for industry, producers, grain handlers to have a public forum to
▶ 0:47:58talk with FGIS about ways we can see the agency improve. And that's the example that we heard from Mr. Walton. That's where some of the SPOC discussion started was at the advisory committee. Some of the conversations around technology and new technology adaptation and adoption have come out of the advisory committee. So we see that as that good opportunity to bring multiple groups together and have that conversation with the agency on what do we want to see going forward.
▶ 0:48:26Yeah, I noted in your uh testimony uh your oral testimony uh you made reference to the need for flexibility uh perhaps waivers. Uh sometimes waivers can be really really good policies. sometimes waivers uh can be abused and become very bad policy. Uh when you were uh mentioning that uh are there any specific examples uh uh or criteria uh you could elaborate on there? Excuse me.
▶ 0:48:55So one thing and I want to make sure that we from an industry perspective are clear. We we do not want waiverss in any sh at any time. We want it to be very specific during times of service And if you think back to the 2015 reauthorization, that's where that section came from was we had a service in the industry and they the company was not able to get
▶ 0:49:25official services. And so we want to avoid that risk of any disruption in official services so that as as many folks on the panel have said today we can still export our grain from the US. Very good. I I appreciate the clarification. Any other comment from any other panelist? Okay. Uh sticking with you Mr.
▶ 0:49:47Friant, your testimony mentioned that NGFA and its members are ready to partner with USDA and and uh the Federal Grain Inspection Service to pilot new grain grading technologies. Uh to your knowledge, has there been any engagement or investment from the private sector to support that effort? Uh yes, there has been and and I would say it started about two years ago.
▶ 0:50:09We actually held a workshop or a summit hosted by NGFA at the Cargill offices in Minneapolis where we brought together industry technology providers uh folks from the official system so uh KIA and then folks from FGIS where we could first of all find out what technology was available that could be adapted for grain inspection and we're able to get some sense of what might be available and now we've seen where FJIS has started to explore some of those technologies that we've been learning about
▶ 0:50:40and maybe more specifically in the case of Cargill, we have engaged with at least one technology provider to see how their system works. Could it be fit for grain grading purposes, visual imaging for damage? And that's where we've seen that private partnership start. Thank you. Any other comment from any panelist other panelist on that? Mr. Mr.
▶ 0:51:04Donley, uh, in the last 45 seconds I have, just real quickly, uh, you mentioned in your, uh, testimony that you've interacted with international students and buyers at the National Grain, uh, center in Kansas. Uh, can you speak to what parts of the US grain inspection system they find are most effective?
▶ 0:51:19And are there areas where we're clearly falling behind our foreign Appreciate it.
▶ 0:52:01Yeah, my time's expired. Thank you, Mr. Chairman. Thank you, panelists. The chair now recognized the gentle lady from Ohio for five minutes. Thank you, Chairman Scott, and ranking member Davids. Um, homegrown American grain is a top quality product. When our trading partners see the product, see the quote product of the USA label, they know they are getting a product that is reliable, consistent, and of the highest quality.
▶ 0:52:29This trust has been earned over decades of hard work by our farmers, exporters, and the reliability and consistency and standards that have been set to ensure that our products are truly top-notch. The US Grain Standards Act has long served as the foundation for that trust. It serves as the blueprint to guarantee that our grain is graded fairly, weighed accurately, and certified transparently, protecting the reputation of American agriculture around the world.
▶ 0:52:58In a time when farmers are facing uncertainty on all fronts, from inconsistent policy promises from this administration to rising input cost and climate volatility, Congress must step up and do our job. Reauthorizing the Grain Standard Act is a practical and necessary step in order to give our producers the clarity, stability, and confidence they deserve. So, thank you to our expert panel of witnesses for being here today.
▶ 0:53:24Your input is critical as we look toward the next era of the In a time of such uncertainty, we want to make sure that there is clarity on this system and that it is working for the people it is meant to serve. I know many of you are farmers yourselves with direct experiencing navigating how the Grain Standards Act plays out in real world day-to-day operations.
▶ 0:53:48For any of our panelists, can you share ways we might improve the interaction, whether it's clear grading feedback, better access to dispute resolution, or more practical guidance on how standards are applied? Thank you. One of the ways that we have I think almost all of us have discussed in our oral testimonies is improving through technology.
▶ 0:54:15We have right now we have a wonderful system as Nick alluded to where FGIS leadership is very welcoming of any feedback that industry or official agencies may have regarding any standards as seen with SPOC. But what we are really lacking right now is the way to keep our improvement um keep us the gold standard without technology.
▶ 0:54:39There are many other countries that are starting to use this and we would like to be able to keep up with that and um make sure that we can continue to be that gold standard. All right.
▶ 0:54:54Well, I since we don't have a lot of time, I would also add that um consistent communication between USDA farmers is also critical and I'm increasingly concerned about the loss of USDA personnel, both administrative staff and inspectors who have been released or taken deferred resignation. These holes in staffing risk undermining one of the most important aspects of the US grain standards act, the relationship between the department and producers on the ground.
▶ 0:55:20As we consider reauthorization, we need to ensure that the USDA is not only equipped to uphold strong standards, but also staff to maintain the relationships and responsiveness that makes those standards work in practice. Dr. Donnelly and Mr. Fion, in your testimonies, you both emphasize the importance of integrating and modernizing technology throughout the inspection process. As this legislation was first written in 1916, I agree.
▶ 0:55:47Um, can you talk about what technologies are available and ready to be deployed and how can we ensure that the next generation of farming workforce is equipped to adapt and effectively use these tools? I think u the example I use is is probably one of those.
▶ 0:56:06Um if we look at other even in other a industries um for example would be in in the seed processing industry a lot of uh nobody counts seeds anymore by counting seeds. You take a picture of it and count seeds. Uh in the food processing industry you clean and you knock out damaged samples uh in the processing process.
▶ 0:56:30So there's a lot of technology they're involved with uh use of automation and imaging that I think could come to the um to the FGIS system. If I can look at a a sample uh take a picture of it and then analyze what are the damaged kernels, the off types, that would be much more efficient than having to pick through it a kernel at a time. But it does need to be standardized against the the traditional. Yeah. And I would just build on that visual imaging visual imaging. visual imaging.
▶ 0:57:01We see that as an area that can speed up and make the process more efficient, make it more standardized, and overall be better for the system. I think that's a big area of opportunity. Thank you. Um I appreciate this conversation and look forward to my uh working with my colleagues in a thoughtful way to reauthorize and modernize the legislation. And with that, I yield back. Thank you, the chair. And I recognize gentleman from Minnesota for five minutes. Thank you, Chairman Scott. Uh thank you for holding this important hearing today.
▶ 0:57:27And thank you to all the witnesses for uh for being here with us. As we've heard today, the US Grain Standards Act has been in existence since the Woodro Wilson administration and it stood the test of time throughout the decades since as a cornerstone of farm policy, ensuring that farm country has the tools they need to produce the highest quality fuel and food supply in the world. So with that, uh no offense to Iowa, but I'm going to have a conversation with my Minnesota, my fellow motan here, uh Mr. Mr.
▶ 0:57:57Fant, uh, thank you for your testimony and thank you for being here today. Uh, it's an honor to have Cargill call Minnesota home and I appreciate the role that you play in supporting southern Minnesota's farmers and the farm economy. As you know, the US grain standards act established marketing standards for grains and oil seeds and procedures for grain inspection and weighing to ensure uh to encourage the marketing of highquality grain for an agriculture sector that is highly dependent on export demand. The act requires that exported grains and oil seeds be officially inspected and weighed.
▶ 0:58:28So with laying that out, can you explain how the US Grain Standard Act helps facilitate the exports of US grain and why it's so important for ensuring uh US grain continues to be competitive in the global grain trade market? I appreciate that question, Congressman Finstad.
▶ 0:58:45And I think we heard I believe maybe from all four witnesses how we consider the US grain standards the gold standard right our customers ask for that official USDA certificate and that that's really the first step in ensuring that our products can be exported right the that's what the buyers want is that official FGIS certificate and then as I think we look at how we can continue to do that going forward it's what you've heard from from all of us already right.
▶ 0:59:15We've got opportunities for in increased use of technology adaptation and adop adoption in the system so we can still be efficient and effective. And I think the other piece is the standard is the standard, right? So no matter whether you're delivering grain in southern Minnesota or my hometown of Manuka, Illinois or Topeka, Kansas, a US number two yellow soybean is a US number two yellow soybean wherever you deliver.
▶ 0:59:43And that standard is the same and the seller knows that, the buyer knows that and the international buyer knows that when they buy US number two yellow soybean, that's what the grade is going to be. Yeah, I appreciate that. uh you know as a farmer myself I have just seen on our farm how you know adapting and incorporating new technologies and the advancement of of really where the collision of science agriculture and tech technology has collided has provided all kinds of opportunities and really it just emphasizes that we are the gold standard and so we should make sure that
▶ 1:00:13legislation around this is is you know continues to evolve and become even more efficient and and and really incorporate that collision of science technology and agriculture. Uh, one area that I uh, wanted to get to here with my last couple minutes is I want to highlight the importance of protecting the surplus we have in grain trade. Uh, over the last few years, the Biden administration refused to be at the table for negotiating market access for our producers. Uh, and grain continued uh, through this to be a bright spot for farm country.
▶ 1:00:43In fact, America enjoys right now a $65 billion trade surplus on the US grains and oil seed side. This is a credit to our farmers uh who again have you know done a great job with with what I just stated with incorporating that collision of science, technology and agriculture. And we continue to grow the highest quality grain in the world, our transportation infrastructure, including critical American waterways, highways, rail systems and decades of diligent work to develop and grow new markets.
▶ 1:01:12So again, Mr. Dr. Friant, uh, what are some of the challenges that we face right now on grain exports and how can we and how can we do what can we do in the grain standards act uh, reauthorization to help overcome maybe some of these challenges? I I think the first and foremost thing is get the act reauthorized on time or early. It provides us that stability. We know that the the standards will be there when it comes time when we want to export that grain and it provides that consistency for us.
▶ 1:01:42So, first and foremost, we want to have it reauthorized. I think some of the things that we've laid out in terms of, and you've heard from all of us, the technology piece, we've talked about a lot, continuing to look for those technology opportunities that are out there. And then, as we referenced in my oral testimony, the waiverss when we do have a disruption in service, let's make sure that as long as buyer and seller agree and it doesn't impair the act, we can still get that grain exported from the US to those customers that want that US grain and that US certificate.
▶ 1:02:11I appreciate that. Uh thank you again to to all of you for being here, taking time away from your busy lives to to help us craft hopefully a better policy in the future. So I appreciate that. Uh Mr. Chair, with that I yield back. Thank you, uh Chair, and I recognize gentle lady from Illinois. Thank you, Chairman Scott. Uh and thank you, Ranking Member Davids. Um thank you so much for all the panelists for being here today on this for this hearing.
▶ 1:02:36Um, I appreciate the opportunity to discuss this important piece of legislation uh set for reauthorization this year. Uh, we are proud of the grains we produce in this country, particularly the high quality corn and soybeans grown in my district in central and southern Illinois and Congressman Sorenson's district as well. And want to ensure that these grains enjoy market access around the world. Something you've obviously heard a lot about today.
▶ 1:03:03And just actually building on um the comments and questions from Congressman Finstead, um you know, just talking about the US Grain Standards Act and the importance of it. Um if if others maybe on the panel might like to elaborate further on the importance of its reauthorization. Um we heard about, you know, looking for technological advancements and how that might be able to um continue to build on the success of of um the standards act.
▶ 1:03:32Um just kind of curious any other ideas potentially from the panel that you might like to elaborate on that further. I might speak on uh on the reauthorization and the importance of it. I I believe we've had a very uh dependable and reliable system that's well respected. U but currently grain farmers are are facing some really challenging times with low commodity prices and and weakened exports coupled with u high in pet and credit costs.
▶ 1:04:01Um so I think we must maintain the um the quality of our uh export system. Um and let's not add this as another excuse maybe for further reduction of opportunity for for exports. Yeah. Yeah. Yeah. So if I might add to that from the farmer's perspective, you know, as I said in my my earlier testimony, soybeans are the number one egg export from the US.
▶ 1:04:30It's about $31.2 billion a year. And that's that's significant and and that's that's uh uh at risk if there's not timely reauthorization of this act, right? Um it disrupts the whole system. So, as others have noted, our foreign buyers look at us as a gold standard. And they know whether the soybeans come out of Illinois or Iowa or North Dakota, number two yellow soybean is a number two yellow soybean. and they place a premium on that that quality and that assurance.
▶ 1:05:00And so any disruption to the system is going to going to create chaos. Yeah. And at a time as as uh doctor noted um the farm economy isn't great right now. So any any disruptions in that is is going to come back directly to my farmgate and impact us. So that's why we we really strongly urge this this timely reauthorization and and keep it going. Thank you. Would you like to add Thank you.
▶ 1:05:26From the perspective of an official agency, um we actually do a lot of what Professor Donnelly was talking about and hosting foreign groups that come over for about commodity trade. And um we do many of those each year and every time I have, you know, about an hourong spiel on what I talk about on why is the official system different than anything else. And if this were not to be reauthorized, we wouldn't have that gold standard.
▶ 1:05:54when I see their faces, when we're talking about how each of our official agencies, we go through extensive compliance reviews. We have daily randomized monitoring. We have I I laugh sometimes that I talk to FGIS more than a lot of the people in our company. Sometimes we're that big of partners and we they are so impressed by the amount of standards even as something as simple as running a moisture.
▶ 1:06:21I want to say the handbook is maybe 70ome pages long and that shows that we give so much value and everything is thought out very intensely and it's just it's a really enjoyable part each time each year to see their faces and how proud they are of what we do. Yeah, thank you. Thank you for sharing that.
▶ 1:06:40I just with the time I have remaining wanted to emphasize also the important role um that our colleges and universities play um in bringing the next generation of agricultural professionals um to the industry. Getting young people interested in working in agriculture particularly farming has been a priority of mine since taking off office. The University of Illinois is in my district um which u much like Kansas State is home to a worldclass agricultural program. Dr.
▶ 1:07:09Donnelly, I know that in your role at Kansas State, you interact with students who represent the next generation of a professionals. How does a deeper understanding of crop quality and federal grain inspection serve serve students in indirectly related agricultural careers? Mr. Mr. Donley, I need you to be brief with this, please. Yeah, sorry. We've talked about um grain science and aronomy. Example might be animal science. Mhm.
▶ 1:07:38Um, buying grain sometimes for feed production could use a little lesser quality and uh, so understanding that system and perhaps being able to move grain that's not at the best quality into the livestock feeding operation is important. So an animal feeder uh, needs to know about the standards as well. Okay, thanks for that a short answer. I yield back. And I apologize. It's Dr. Donley.
▶ 1:08:06Uh, chair now recognizes uh, Mr. Taylor. Thank you, Chairman Scott and Ranking Member Davids. Uh, thank you for holding this subcommittee hearing and kicking off the US grain standards reauthorization. And I appreciate the witnesses being here to share your insights and expertise and the sacrifices you all made to join us here today.
▶ 1:08:28Even in a broadband desert like most of my district, technologies are constantly evolving and changing in the modern agricultural economy, especially with the increase in AI. Mrs. Mkish, in your testimony, you talked quite a bit about how modernizing grain technologies could help improve uh the inspection and weighing process. You mentioned the lack of technological ad advancement is uh creating unnecessary costs for taxpayers, exporters, and more.
▶ 1:08:54and I appreciate that information, but uh what more could Congress be doing to promote the the adoption of these new Thank you. Technology is very important to what we what we are needing to do and um we're needing to modernize our systems with technological um instrumentation to enhance the grain quality as you noted and many of us did as well.
▶ 1:09:19Um, where technology is is really needed in this system is that when I was younger, we had we would do maybe 50ome cars and it would take a few days to load that. And now we're looking at trains that are 114 cars and we're doing that in sometimes less than 5 hours. But we're still doing it with the same standards and we're still doing it with the same personnel. it is getting very difficult to be in these harsh environments.
▶ 1:09:49And so with technology, we can then not be as much of a bottleneck to our partners in making sure that they're getting the most reliable grades in very quick manner. Um the and what Congress would be doing to help by passing this is helping this industry continue to be the most efficient and cost-effective that it can.
▶ 1:10:12And a lot of the areas that we have outlined are some tools that are provided as examples that could potentially help anything to help with the flexibility. Um I believe that is probably the biggest piece of being able to allow industry uh official agencies to help expedite this technology. As we know, technology is rapidly changing and we want to make sure that we're ahead of it and giving what we can to our industry. Thank you.
▶ 1:10:43Has there been much engagement or investment from the private sector to to support the adoption of these technologies? There have been a lot of discussions um around how this could look. We do have FGIS does have various cooperative agreements in place looking at visual grading um and they actually are um it's very impressive what they're able to do.
▶ 1:11:08So, but there are so many different types of technology and FGIS needs those flexible partnerships in order to continue that. So, yes, there is currently some technologies being looked at, but we need to be able to do it in a quick manner. Thank you, Mr. Walton. You noted that most farmers are mostly only exposed to the inspection service indirectly at the elevator, and I'd say most people don't uh realize the Federal Grain Inspection Service even exists.
▶ 1:11:37Um, what would you say is the average farmer's perception of the grain grading system? And are there gaps in transparency or or education that we as lawmakers could Uh, I I think the answer was in your question. I mean, there's a transparency there that we know as farmers when we deliver grain to an elevator, uh, it's it's it's done it against a consistent standard and regardless of multiple points that I might sell to, that grain is going to be graded the same regardless of where it goes to.
▶ 1:12:05And I think that's that's the important piece for farmers that we know that there's an assurance uh behind those grain graders that that may be a government entity that that uh is providing that sort of consistency. Um so that's again that's why we we hope not to have any disruption here. Uh it's set to expire during harvest for us and that would be a a very untimely thing to happen. Sure. Okay. Thanks again to all of you for being here and chairman I yield back.
▶ 1:12:33Chair now recognize gentleman from Illinois for five minutes. Thank you to Chairman Scott and ranking member Davids. Thank you to everyone for joining us today to discuss the importance of reauthorizing the US grain standards act. And uh welcome Mr. Fry from uh Illinois. Uh glad to have you here in our committee and glad that we have representation from uh the land of Lincoln.
▶ 1:12:54You know, I was honored to have Illinois farmers in my Capitol Hill office on this very floor down down the hall just a couple of days ago when I asked, "What keeps you up at night?" It's not the weather. It's the fact that we need to expand global markets for the export of our grain and our oil seeds.
▶ 1:13:13Reauthorizing this initiative gives us the opportunity to not only modernize our marketing system but deliver cost savings, improve reliability, and create a fairer valuation of US grain in a world marketplace. Uh Mr. Walton, I'll begin with you. Uh you mentioned the toll that this administration's tariffs are taking, especially on our bean farmers.
▶ 1:13:36Could you expand a little bit more on how important classification of grain grades is uh for not only price discovery but upholding consumer confidence here and abroad? Sure. You know, we we understand that our international customers have a choice in where they purchase grains and and one of the reasons why they continue to come back to the United States is because we we provide the international market with the highest quality grains from around the world. Uh and that's backed with this this US grain standard.
▶ 1:14:05So they know when they come to the US and they're looking for number two yellow soybeans, that's exactly what they're going to get when they're delivered. And we as as sellers know that the the high quality soybeans that we we grow on our farms will get to those end users in that same kind of condition. So as we deliver number one or number two yellow soybeans to the market, that's what our customers and and over n international markets will receive. Uh Mrs.
▶ 1:14:30McKesh, you you just mentioned um my Congress, my fellow Congress uh person from Illinois, Miss Bazinski asked and you had mentioned that the United States, we're proud to be the gold standard of exported grain. Um how essential is a bipartisan reauthorization to keep our American producers on top? Thank you for that question. Reauthorization is essential for that.
▶ 1:14:57um we give stability within the markets. We give um confidence knowing that uh what that grade is, you're going to know that if we're grading it in Ohio, it's going to be the same as in California. And if we do not have that ability to have the federal grain inspection service system that can be very detrimental to the entire grain supply chain and also for the markets above when it is already difficult.
▶ 1:15:28So it again it would be essential and we urge Congress to to pass it. Thank you for that. Um and I I'll pose this to everyone. You know, as we consider language to reauthorize this act, what is the most important change that we as members of Congress should consider? I mean, I I think you've heard it from all of us multiple times, technology.
▶ 1:15:53How can we ensure that there's that language that enables technology from federal grant inspection service? Well, one of the expiring provisions in 2025 is the authority to collect fees for federal supervision of state agencies export inspections. You know, what do user fees typically cover and and what percentage of services and operations are paid for by appropriations from Congress?
▶ 1:16:21So, so user fees are the direct service, right? So, that's the inspectors that are inspecting and weighing the grain at port facilities. It's the per unit fees if we want micotoxin testing or other other factors tested that it's so it's direct direct cost for the services are the user fees. Anyone else? Thank you all so much for being here today and Mr. Chairman I yield back. Thank you.
▶ 1:16:51The uh little chair now recognizes the big chair for five Well, thank you, Mr. Chairman, Chairman Scott, Ranking Member Davis, um, you know, for convening this important hearing. The United States Grain Standards Act has been the lynchpin of American agriculture and trade for nearly a century, and it's a vital tool that ensures the integrity of our grain markets both here at home and around the world.
▶ 1:17:18This law provides the framework for official marketing standards, inspection and weighing procedures for grains and oil seeds and is essential for ensuring transparency, market confidence, and price discovery. Uh these principles are foundational to a fair and functioning agriculture economy. With several provisions of the current law set to expire on September 30th, it's imperative that we do our job and we author reauthorize this important piece of legislation.
▶ 1:17:46Allowing this authority lapse would cost the farm economy more than $70 million a day um and result in serious consequences for our family farm supply chains and international trading partners. For example, nearly 100 million of corn and barley are exported from my home uh state, the Commonwealth of Pennsylvania each year and more than 26 billion dollar 26 billion dollars of US grains were exported in 2024.
▶ 1:18:13It's uh critical that no disruption to the essential services that underpin our ability to export the safest uh most abundant and uh grain supply in in the world. So fulfilling this obligation and continuing safeguards will allow us to avoid disruptions and service like what has occurred in the past. Inspection and weighing services must be dependable uninterrupted and cost effective. That's not a luxury. It's a necessity for the American food security.
▶ 1:18:43the um uh the United States has been at the forefront of agriculture research and we are fortunate to have institutions that are able to spearhead the promotion of science, technology and innovation. Uh Dr.
▶ 1:18:57Darling, given Kansas State's longstanding um leadership in grain science and its connection to FGIS through the National Grain Center, is there a role for K State and other land grant universities to play in the in advancing the next generation grain inspection technologies?
▶ 1:19:16Well, I certainly think that um there would be opportunity, but the our program at the international grain u center is focused primarily on promotion of market. Um more so not so much on the technology of the process um but certainly a opportunity for uh partnerships um for improving some of the technology.
▶ 1:19:41We've talked technology technology all morning, but u obviously we're not quite ready to just jump in and do that. Um I think it comes down to having the opportunity through appropriations or uh grants that could be um utilized to to really prove that this technology is as dependable as the current system. So I think that's where um you know we we could participate in that if that opportunity was available.
▶ 1:20:06Well, I think given the status of obviously American agriculture's science, technology, and innovation, that's my definition. Obviously, that's why we're doing significant investments in research um and specific funding for land grant universities for uh research facilities as a part of uh uh this uh farm bill one and uh and farm bill 1.0 and farm bill 2.0 know uh as we're have been moving ahead with as I mentioned in my opening remarks we must
▶ 1:20:37maintain transparency market confidence and price discovery for grain standards that have led to our ability to be considered the gold standard across the globe uh uh Mr. Freant your testimony mentions that in the event of a service disruption additional flexibility on emergency waiverss for official inspection and weighing requirements is needed.
▶ 1:20:58I was uh uh part of the great work this committee did in 2015 to ensure there's transparency and continuity from FGIS in the event of service disruption. Where do you believe that there are shortcomings in the current waiver process and is there anything Congress can do to rectify those challenges? I appreciate that question, Mr. Chairman, and we we have seen much better transparency in the process.
▶ 1:21:22One of the areas as we noted in our testimony was simply having a good definition of what constitutes an emergency. There there seems to be some some ambiguity around that and so being much more clear on what is an emergency is be a very good place for us to focus. Very good. Well, thank you, Mr. Chair. The big chair uh yields back. Thank you, big chair.
▶ 1:21:49Um, I just I want to everybody know I show the order as Mr. Rose, Miss Daylor Cruz, Mr. Harris, and then Miss Miller is what I show the order on this sheet right now. Just uh, Mr. Rose, chair, and I recognize you for five minutes. Thank you, Chairman Scott, and and ranking me D member Davids for holding this time-sensitive uh hearing on the review of the US grain standards act.
▶ 1:22:19Reauthorizing and modifying the US grain standard act standards act is yet another opportunity for this committee to deliver prosperity for our producers by strengthening flexibilities and reconfiguring the use of funds. Uh as uh all of you have mentioned or alluded to the Federal Grain Inspection Service or FGIS as the gold standard for grain grading and the vital role the service plays in promoting US competitiveness in global markets. Mr.
▶ 1:22:48Walton, can you elaborate on the prestige of FGIS and how since 1976 the service has bolstered US grain Yeah, I I think I think in the international marketplace, it's widely recognized that that that is the gold standard. They know that when they uh they enter a contract with a US-based company for soybeans, that's exactly what they're going to receive. And that kind of assurance in the marketplace gives us a dominant position around the globe.
▶ 1:23:17Uh it gives us an advantage over our our competitors. So um I I think this this uh this grain standards act is is something that has been important for our growth of international trade and it needs to continue to keep us in that position. Thank you very much. Uh Mrs. and I hope I'm saying this right, Mrs. Mikesh. Okay. Uh in your written testimony, you suggested that Congress authorized research activities by official agencies.
▶ 1:23:46Will you provide additional details and examples of this of this research and how agencies should handle this authority and the benefits we would see domestically? Thank you for that question. Yes, I would love to. So, currently under the act there is a gray area of whether or not official agencies can help with the research and development mainly around the visual imaging piece.
▶ 1:24:12we are not able to perform any services that have official standards in a different manner and so it's been easy for us to help aid in different technologies when you're talking about protein where there's a single result we can we can put the sample through our protein machine and give a result to um to that instrumentation entity.
▶ 1:24:38Now, when you're talking about visual imaging, we are needing to look at things like individual kernels and there aren't there are current standards for grading, but if we were just to give the a certificate that states you have 2.2% 2% damage in your corn. That isn't going to help them help these instrumentation entities determine what types of damages these kernels are as well as um being able to sort them within their models.
▶ 1:25:08And what something that we talk about a lot when we're discussing this is it's good data in, good data out. And if it's bad data, it's it's not going to be a great outcome. and official agencies and along with FGIS believe I stated in my in my opening statement is that we have a near monopoly on the expertise on how to grade.
▶ 1:25:30There are wonderful universities like professor Donnelly where they go through and they can teach others how to how to grade. However, we are the ones doing that every day. There are approximately 40 agencies across the country and we are all very willing to work with instrumentation manufacturers to develop these models and work alongside FGIS. Thank you. I appreciate that added insight. Um Mr.
▶ 1:25:59Donnelly, you noted in your testimony that you are a former FFA member, so it's great to have a fellow future farmer and alumnist joining us today. Uh Mr. Donnelly, you explained that FGIS conducts additional quality assessments not required for the official grade. Will you elaborate on the impact these additional assessments have on grain marketing and the value added by these quality measures? Well, certainly I I think oftentimes uh that they may be more important than the grade.
▶ 1:26:28Uh the grade is um as everybody has talked about is very standard, very expected. But uh I I'm not directly involved but I understand in in the export world um you know the end user of wheat for example is equally or more important interested in the protein as it is the damaged kernels. And so uh certainly with things like microtoxins and residues all of those things are included as well.
▶ 1:26:56And not only that, but FGIS is also tasked with uh dozens of other uh testing and monitoring of of uh feed stocks. And we're just talking about a limited number of grains here. In fact, rice is under the AMA. Um pulses, field beans under a completely different system, but still they're involved with so FJS, if you really look at it, this is a a a part of what they do, but it's much broader than that as well.
▶ 1:27:25and some of this additional testing may be equally or more important to the end user. Thank you. I appreciate that insight. I yield back, Mr. Chair. Thank you. The chair now recognizes Miss Dea Cruz. Thank you, Mr. Chair. Um, thank you for hosting this important meeting today and thank you to the witnesses for being here. The US Grain Standards Act plays a critical role in establishing uniformity and reliability in grain inspection.
▶ 1:27:55that has secured the United States role as the most dependable provider of quality grain in the world. As we continue to assess the effectiveness of federal programs, it's important that we hear from those who are actually engaging in these systems to ensure their long-term success.
▶ 1:28:14I've heard over and over again the importance of technology and that um when we talk about reauthorization that we're talking about technology that would that would help you all. So I I want to dive into that a little bit here.
▶ 1:28:30Um, Miss Mikish, um, you mentioned that official agencies have much of the data and the expertise that is needed to drive technological innovation and you even said um, good input in what did you say good data in means good work or good data out correct? Um, we want to make sure that that data is being put to good use.
▶ 1:28:57So could you speak to how those impacts the good data or bad data that's coming out how it um can provide um how we can make innovation better or inspection tools better or partnership with developments better when good data does come out of of or good work comes out of this data. Thank you for that question.
▶ 1:29:24Yes, we in our system when we are going out and we are grading on site at grain elevators when we are looking for damages, we have a narrow field of foot candles, light candles that we actually have to make sure our lights are done by. We have to make sure we have a very specific color of countertop. Um there are I could go on and on and but I won't bore you.
▶ 1:29:51Um, so there are a lot of a lot of inputs that go into making sure that visual grading by a human inspector is accurate. Now, there are some things with technology that you're going to take a lot of that out of play, which is wonderful. And so, if we are there providing good data, um, we need to make sure that this technology is as reliable and accurate, if not more reliable and accurate, than human inspectors.
▶ 1:30:19Just a tenth of a result, a difference can make such a huge financial impact for many of our partners. Oops. Reclaiming my time. One moment. You said something very important is the difference obviously between a human visual inspection and a technology inspection.
▶ 1:30:38Do we have any uh quantifiable data that has that we have available to us as far as an error rate in technology versus human or vice Thank you. We are actually not at that point currently. There are some instruments that are being used where we are doing the data of what the damages are but until that is completed we aren't able to um compare the two.
▶ 1:31:05So what I'm hearing is that there's a study in place that you're looking for the numbers in what the difference is between having the technology available and having the the human error rate in this. Is that correct? Yes. And when do you think this data would be available for us to review? That is going to be a difficult It's going to depend on what your subcommittee passes.
▶ 1:31:31We are looking for ways to expedite the technology study and once we do that um I know it's very important to the industry alike that we come forth with that data. I am the chair of the grain inspection advisory committee and we look at new technologies in rather protein and every time we look at new data the very first question we're asking is is it the same or better and that's something that none of us want it to go backwards.
▶ 1:32:01Excellent. Thank you so much for your time. I yield back. The chair now recognizes the very patient gentleman from North Carolina for five minutes. Thank you, Mr. Chairman, and uh thank you for having this important hearing and to all of you that have been sharing on the panel today. Um as a freshman on this committee, I was fascinated to learn about the intricate network of inspectors who physically lay eyes on grain products coming in and around the country.
▶ 1:32:31Whether it's wheat, corn, barley, or one of the other dozen things the Federal Grain Inspection Service oversees, hundreds of inspectors are working to ensure the quality of our grain products. Uh, Mrs. Mikish, I want to ask you, can you briefly describe for my constituents at home what a day in the life of a grain inspector entails and what are the steps that an inspector goes through when they get a sip a shipment of say wheat kernels? Thank you for that question.
▶ 1:33:00That is a fun one to answer. Um, every day is quite different. We are constantly having to check where trains are at. Um, whether or not we are able to load due to weather conditions or whether or not we're able to get out to those elevators due to weather and conditions. Um, in our each of our areas for I'll talk about NDGI, we have a little bit different depending on the market. So, in our North Dakota area, we primarily do rail cars. We do shuttle trains.
▶ 1:33:31Now, say um when they get the call at 2 am that a train is going to be heading our way at that particular location within the next hour, our inspectors, our samplers and technicians are essentially they are on call. They are to wake up, get going, get on the road and get out to that location. those grain elevators then they are able to make sure that there's representative sampling because the grade is only as good as the sample we receive is.
▶ 1:34:00So we have standards that we go through to ensure that the sample is going through and then we go through and uh run things like moisture test weight and then it gets to the inspector who is doing mainly the visual damages to make sure that uh everything is accurate. And then those trains can last anywhere from 5 hours to 36 hours. It really depends on what happens.
▶ 1:34:26But whether it's rain, shine, or a lovely blizzard in North Dakota, we are making sure that we're there so that our industry partners can get the grain out in time. Super. Well, thank you. Uh I know we have talked a bit about the technological advancements that you would like to see to improve the processes.
▶ 1:34:46Can you give a picture of some of the cost savings to the system that might occur if Congress can reduce the regulations to allow for more technological advancement in the inspection process? Thank you. Yes, right now we are in the midst of discussions on how exactly having these visual grading systems could look.
▶ 1:35:08But what we are looking at currently is say that you need four people um to be on site and doing the grading. We may be able to cut that back to three or less. And what it also can do is that there is a lot of ups and downs with the as far as the volume in the grain industry.
▶ 1:35:31So, we can go through phases where maybe we have, I'm speaking of my own agency, maybe we have 60 people out on the road and then all of a sudden there's a few changes and now we're down to 30. Having that technology will allow us to handle those ups and downs, those es and flows a lot easier. Especially when you're talking about inspectors. When we have inspectors, it generally takes to just become mildly proficient about a year to get the three main licenses.
▶ 1:36:00And you can imagine that when there is a downturn in the market as there always are both ways um we if we lose that that expertise of inspecting it is very difficult to come back from. So if we can use things as a tool and an aid to help with that can help with staffing substantially. Excellent. And in in the last uh few seconds uh Mr. Friant.
▶ 1:36:26Uh, the federal grain inspection services is funded primarily by user fees with taxpayer dollars from Congress filling in the rest of the budget. Given our debt crisis, it's encouraging for me to see this funding structure that isn't totally reliant on federal dollars. However, I know that the authority to collect user fees is given by Congress and that we play a role in ensuring that process goes smoothly. In your testimony, you mentioned ways to stabilize the user fees, saying they're currently not predictable for the industry.
▶ 1:36:56In the last 20 seconds or so, can you share more about what the issue is and how Congress can fix it? So, so one of the things that we saw and we actually got in the 2015 reauthorization was how uh tonnage fee was based on a rolling average and we didn't see that same approach. We saw that same approach applied to other schedule A fees. And so what FJS has done is uh published a new final rule on a new way to calculate those fees to help stabilize it.
▶ 1:37:26So now we're going to be in a monitoring mode and ensure that those changes indeed are are efficient and we are achieving the goal that we think as far as stabilizing costs for the agency. Thank you. Thank you all very much. And thank you, Mr. Chairman. I yield back. The chair now recognizes Miss Miller for five minutes. Thank you, Mr. Chairman. As one of the few family farmers in Congress, I understand the huge impact that agriculture has on our economy.
▶ 1:37:55And I'm guessing I'm probably the only member of Congress that was actually involved in um testing. I I had a part-time job in college testing for micotoxin in corn. So anyway, kind of a little side note there. I also understand how critical the US grain standards act is to the stability and global reputation of our a sector.
▶ 1:38:20In Illinois, nearly 44% of our grain is exported and we rank fifth nationally for the total ex agricultural pro exports valued at 80.8 billion including being third for soybean and feed grain exports. With so much of Illinois's production headed for international markets, it's essential that our inspection system operates with efficiency, consistency, and integrity.
▶ 1:38:48We know that our foreign buyers put a premium on the trust and reliability offered through official US inspections, and losing that trust would be devastating to our farmers. So, we're fortunate today to be hearing from Dave Walton, a soybean farmer from Iowa and a director of the American Soybean Association, who brings both firsthand experience and national perspective on how this system serves producers and supports global competitiveness.
▶ 1:39:17As we approach reauthorization, it's important that we build on the strengths of the Grain Standards Act while modernizing where needed to meet the demands of today's exportdriven markets. Producers in my district and across the country depend on timely uniform inspections to move their grain efficiently, especially during peak harvest and shipping seasons.
▶ 1:39:42So, I look forward to hearing more today about how we can strengthen the system, improve transparency and responsiveness, and ensure USDA has the tools it needs to continue delivering the gold spa standard in grain inspections. So, my first question is for Mr. Walton, from your perspective, how well is the current grain inspection and weighing system serving the needs of high export states like Illinois and Iowa? Sure. And thank you.
▶ 1:40:09Um, you know, from my perspective as a farmer and a member of ASA's executive committee, the current grains uh inspection system meets our our needs. Uh it it it's working for us right now. Our international customers know that US soybeans, you know, whether they they originate from our states or any other soybean producing state in the nation, uh they're going to be this of the same uh uniform and high quality.
▶ 1:40:35And and mostly what we're here to do is just ask that Congress reauthorize the USGAA in in time so there's no major service disruptions. Um it it's set to expire sometime around harvest time and if we have disruptions at that point in time it would be uh difficult to manage around as as farmers and producers. Absolutely. And we know that the producers are really struggling right now and we need to tamp down inflation and amp up exports. So thank you very much.
▶ 1:41:05And then also Mr. Walton, as Congress looks toward that 2025 reauthorization, can you be specific on any improvements or modernizations that you would recommend to ensure the system continues to work efficiently, reduce bottlenecks, and support a competitive export environment for US farmers? Yeah.
▶ 1:41:24And again, I I think um uh my partners here on the panel have have highlighted some uh really important things that we need to look at, and I' I'd defer to them for their expertise on on what specifically they're looking for to improve. Um as farmers, all we ask is that that the system continues to work at the high level that it does and and gives our international customers that assurance that when they buy US grain, they're getting exactly what the contract estates.
▶ 1:41:50And I I know it's illegal for anybody to add foreign material at the ports. I'm just curious um what kind of penalties there are because we we bring clean grain into the elevators. Um and we want to make have that reputation for exporting clean grain. So So in in the act there is a penalty for any material.
▶ 1:42:18Frankly, we would need to look into exactly what the requirements are around that. I don't happen to know them off the top of my head. Okay. I think that there's uh 1% foreign material allowed. Um and you know, I I just want to make sure that the good work that the farmers do and the local grain elevators to make sure we have clean grain when it's at the ports ready for export that it remains clean grain and we preserve our excellent reputation. Thank you.
▶ 1:42:47and I yield my time. Chair and now recognizes Mr. uh Lamafa from California for 5 minutes. Thank you, Mr. Chairman. Appreciate it. Uh sorry I haven't been able to be here the whole committee today. So hope I don't ask anything redundant but but um I you know I have a great understanding and importance as well as along with Miss Miller on this. I'm a rice grower in California and we actually grow seed rice that our uh neighbors use as well.
▶ 1:43:16So having uh important grain and seed standards for germination for um uh making sure we have like seed and not other stray seed in there is extremely important and so uh it's it's important we get this right in in many aspects across across the board. So um I believe our witnesses touched on the organizational changes to the inspection service moving from uh gypsa to the marketing service.
▶ 1:43:45So what what is that going to do as far as um you know we have outdated technology in the past that has uh hopefully going to be updated and realigned to make the process simpler, smoother and data more readily available to more people.
▶ 1:44:04um what what do you anticipate and anybody on the panel here um is how that's going to work out and uh do you anticipate any need needed changes to continue to refine that in process any of you wish thank you for that question yes we have actually to touch on your point of moving FGIS over to AMS it has been wonderful there is being able to be with other grading
▶ 1:44:34programs and see what it is that they are working on as far as technology and many other items as well has been very um very eye openening. One of the things that I would say um Nick and I actually were at an innovation summit a few years back with different AMS grading groups and you know when you feel like sometimes when you're isolated in your industry you think that your problems are your problems alone and we were excited to go to that summit
▶ 1:45:04and have these discussions to see maybe these other grading programs are having the exact same problems and we can piggyback and um work together on finding a solution. And unfortunately, we found that we are the um the odd one out in that when we're looking at our commodities, we're looking at kernel sizes. We're not looking at whole fruits and vegetables or an entire cow.
▶ 1:45:29And so the technology that we need is very different than what is already in use out there in these other grading programs. So we have had other other grading for non-grains, you mean? Yes. for livestock, um, specialty crops, etc. And so we need a little bit more help and effort to be able to get the technology to work for us in the most cost effective way.
▶ 1:45:55So how how difficult is it with a a current older system versus what you're seeing with technological improvements that are available or coming available? So maybe I'll give an example.
▶ 1:46:11When I walked into Cargill's offices about 20 years ago, one of my colleagues came to me and said, "We're working on blackbox technology for grain inspection, for grain grading." And I sit before you today, 20 years later, and we're still working on that technology. It hasn't been easy. It's been, frankly, it's been quite difficult, but we still believe that it's the way we need to go. Visual imaging, we think there's great opportunities there.
▶ 1:46:37And as Kia mentioned, you can tell she and I have talked about this a lot together between our organizations because she said exactly what I was going to say. We our eyes were opened at that technology summit about a year and a half ago to what else is out there and what other groups in AMS are using for visual imaging technology. What's the holdup for you all? I think that's a great question that that doesn't have an easy answer and Kia kind of alluded to it.
▶ 1:47:07We need to look at each individual grain in the sample. And when you're talking about a sample that could have 100, 200, 300 kernels, it's a lot to look through. And so just having that technology to identify it. And then when we talk about damage, the types of damage and being able to identify this kernel is damaged, this kernel isn't.
▶ 1:47:29Is the damage usually associated with size like you know brokens, things like that or could it be damaged and have a like size and really take more microscopic work to find? Yeah, there is um there are damages that you can visibly see just right when you're right when you're looking at say the corn. Um, but there are also damages, and this is part of the reason why it's been more difficult to find the technology, is you have to actually scrape at the kernel to determine.
▶ 1:47:56There are some grains that you have to cut to see the inside of it. And so with that, it isn't only visual imaging, but we're needing other things like near infrared and um, and all of that combined together, but still cost effective enough to be able to have at thousands of on-site labs across. So I suppose you're trying to draw samples kind of at random and hope that sample represents the whole and you don't run into too many quality problems. Yes, we do have very specific protocols for sampling to ensure that.
▶ 1:48:25Well, I I got to yield back, but I'm I'm pleased to hear that you're very happy with the AMS uh coming in and that's making it a little simpler. So, um please please keep us a breast at the committee here of what uh what impediments might be out there or or and the great the good things too. Thank you, Mr. Chairman. Thank you. I I have one final question, then I'll turn turn it over to Miss Davids for any final questions she may have.
▶ 1:48:50And then in closing, we had an issue with peanuts years a couple of years ago where after they had been shipped, the port where they were going to, the buyers questioned the grade. It wasn't that there was a problem with the grade. It was just that the shipping cost had already been incurred and they were um trying to get a better deal if if you will.
▶ 1:49:18Does that ever happen with grain as well? Dr. I take that. Um the system has an appeals process. In fact, one of the main functions of the um National Grain Center in Kansas City is the board of appeals.
▶ 1:49:37So there's always a reference sample kept on reserve and if if there's a disagreement about the grade then that can be adjudicated by going back to the uh the reference sample and the board of appeals in in Kansas City is the Supreme Court of of grain grading. So what they determine is what stands in those catches. Okay. something else with that as well.
▶ 1:50:00Us as official agencies as well as FGIS, anything that we have, those file samples that he's speaking of, they are considered federal property um over an allotted amount of time. And so when those come back, we are able to look at those particular file samples um as well as our records are all federal property in that sense.
▶ 1:50:21And so we are able to go through the various records to show what it is that we found and making sure that those people are properly trained and licensed and everything else with it. So we have very good recordeping in order to help mitigate that. Do you have anything? Okay. Okay. M Davids, I don't have any questions. Just close your statement.
▶ 1:50:49Uh thank you, chairman, and uh I just have a closing statement here. Uh first, I'd like to thank everyone on our panel today. Thank you for showing up and uh being witnesses here in front of the committee. That's so important for all of us on this committee to stay well informed about the US Grain Standards Act, uh particularly as we look to take uh action on the reauthorization this year.
▶ 1:51:15your time and testimony today have um absolutely provided us with firsthand knowledge on how essential the grain standards are to farmers not just in Kansas but across the country uh and to folks in the grain industry at large across the country. So again, thank you chairman for holding today's hearing and I look forward to working together on the reauthorization this year. I yield back. Thank Thank you, Rank Member Davids. And I want to thank all of you for taking the time to come testify.
▶ 1:51:44Uh your expertise matters to us, and I look forward to the completion of the legislation in a in a timely manner. Under under the rules of the committee, the record of today's hearing will remain open for 10 calendar days to receive additional materials and supplementary written responses from the witnesses to any question posed by a member. This hearing of the subcommittee on general farm commodities, risk management, and credit is adjourned.