An Examination of the State of the Specialty Crop Industry

Farm Economy and USDA OversightHouse Agriculture · 2025-09-16 · 119th Congress
The House Agriculture Committee held this bipartisan hearing to examine the state of the specialty crop industry — fruits, vegetables, tree nuts, nursery, and floriculture products — following investments made through HR1's budget reconciliation and ahead of a broader farm bill reauthorization. Begins at 0:02:19
Transcript
Highlights

Title

Farm bill priorities and challenges facing US specialty crop producers

Purpose

The House Agriculture Committee held this bipartisan hearing to examine the state of the specialty crop industry — fruits, vegetables, tree nuts, nursery, and floriculture products — following investments made through HR1's budget reconciliation and ahead of a broader farm bill reauthorization. Four witnesses representing nursery, research, state government, and produce/organic sectors testified on crop insurance gaps, labor shortages, tariffs, research funding, and program cuts. Members from both parties pressed the panel on H2A labor reform, SNAP cuts, trade uncertainty, and USDA reorganization. Begins at0:02:19

Who spoke

Chairman Glenn "GT" Thompson (R-PA)0:02:19: Opened the hearing, thanked Ranking Member Craig for the bipartisan format, and highlighted HR1 investments including $95 million/year more for the Specialty Crop Research Initiative, $15 million more for block grants, and doubled market development funding0:05:51; later questioned witnesses on federal research programs0:30:23 and closed by outlining remaining priorities for a "Farm Bill 2.0"3:36:41.

Ranking Member Angie Craig (D-MN)0:07:46: Cited high labor costs, tariff-driven input costs, and inadequate crop insurance for specialty growers; noted a delayed 2025 RFA release for block grants (May instead of January)0:34:46 and pressed Dr. Boring on how that timing mismatches growing seasons0:35:45.

Michael Frantz, Frantz Wholesale Nursery0:11:17: Said his farm grows 700+ plant varieties and up to 10,000 crops at once, making existing crop insurance (50% loss threshold) unworkable0:12:40; cited quarantine risk on potted citrus0:13:12, praised the Pete Moss tariff exemption0:15:01, and called burlap (sourced only from India) another tariff-affected input2:18:35.

Dr. Ramesh Sagili, Oregon State University0:16:04: Testified specialty crops cover ~15 million acres worth $115 billion0:16:33; said SCRI funds only 20–25 awards/year at an ~15% success rate0:19:05 and welcomed HR1's increase from $80 million to $175 million annually starting 20260:19:32; later said neonicotinoids are not conclusively the primary driver of bee decline2:48:44.

Dr. Tim Boring, Michigan Dept. of Agriculture (NASDA)0:20:41: Reported Michigan cherry crop losses of 30–90% from 2024–2025 weather events0:22:57; described Michigan's regenerative agriculture and Farm to Family programs0:24:15; said specialty crop block grant funding cannot replace lost Regional Food Business Center support1:14:29.

Dana Brennan, Grimway Farms/IFPA0:25:49: Said specialty crops receive just 0.5% of farm bill funding despite representing hundreds of billions in value0:27:18; noted only 1 in 10 Americans meet fruit/vegetable intake guidelines0:28:36; urged Congress to reaffirm USDA's authority to run domestic promotion programs0:28:06.

Rep. Austin Scott (R-GA)0:40:06: Recalled the 2008 FDA salmonella/tomato misattribution that bankrupted Georgia farmers0:40:36; questioned Brennan on laser weed-control technology0:41:21 and raised concerns about H2A wage-survey methodology0:45:08.

Rep. David Scott (D-GA)0:45:21: Noted 95% of his district's farms are family-owned; pressed Brennan on trade-war impacts on market access and school produce partnerships0:46:170:48:56.

Rep. Frank Lucas (R-OK)0:50:35: Asked Boring about state flexibility in block grants and multi-state pest collaboration0:50:541:51:46; asked Brennan about Oklahoma's Double Up program matching SNAP dollars for local produce0:52:16.

Rep. Alma Adams (D-NC)0:53:16: Asked how the $186 million SNAP cut and elimination of SNAP-Ed would affect produce consumption0:53:230:54:15; cited $24.6 billion in 2023 specialty crop exports threatened by tariffs0:55:32.

Rep. David Rouzer (R-NC)0:58:40: Entered a report on the H2A adverse effect wage rate into the record, citing estimates of 518–823 million additional pounds of fruit/vegetable output and 25,744 jobs under an alternative wage formula0:59:55; discussed hurricane-related insurance gaps with Frantz1:01:52.

Rep. Shontel Brown (D-OH)1:03:55: Shared a constituent farmer unsure whether to pass on his farm due to economic uncertainty1:05:22; asked Boring about new federal support needed and results from Michigan's regenerative program1:06:131:07:10.

Rep. Trent Kelly (R-MS)1:08:47: Asked about Mississippi State's purple sweet potato breeding research1:09:10 and the impact of doubled market access/foreign market development funding1:10:20.

Rep. Jill Tokuda (D-HI)1:12:19: Described Hawaii's near-90% food import dependency and unique pest threats (coffee beetle, parakeets); questioned whether specialty crop block grants can replace lost Regional Food Business Center support1:14:02 and flagged NIFA's 18% staff reduction1:17:29.

Rep. Mike Bost (R-IL)1:17:46: Asked about export competitiveness and cited $3.53 million in Illinois SCRI funding for apple-harvest automation1:18:52; raised concerns about foreign apple/peach imports undercutting domestic growers1:20:40.

Rep. Eric Sorensen (D-IL)1:22:34: Cited China's drop from the top soybean export market and referenced a $1 billion cut to the Local Food Purchase Assistance program1:24:53; asked about USDA deferred resignation impacts1:27:08.

Rep. Barry Moore (R-AL)1:27:48: Highlighted HR1's doubling of SCRI funding to $175 million and asked Boring and Sagili about its impact on niche crops and multi-state research1:28:571:29:35.

Rep. Shomari Figures (D-AL)1:33:06: Cited a state finding that 9 in 10 Alabamians don't meet produce-intake guidelines; asked about impacts of USDA reorganization moving offices out of state1:36:23.

Rep. Dan Newhouse (R-WA)1:38:34: A third-generation hop/grape/fruit farmer, asked about mechanization ROI and precision agriculture funding1:39:381:41:29, and impacts of doubled market access funding on labor costs1:43:24.

Rep. Gabe Vasquez (D-NM)1:45:05: Described Hatch chile, onion, and pecan/pistachio growers losing export markets; asked Frantz about tariff-driven uncertainty and labor shortages1:46:041:47:57.

Rep. Michael Rulli/uncertain (R-OH) ["Mr. Taylor"]1:50:02: Discussed vertical/greenhouse farming potential in southern Ohio and obesity rates linked to produce access1:50:571:52:32.

Rep. Chellie Pingree (D-ME)1:54:41: An organic farmer herself, raised concern over NRCS staffing cuts, the $2 million loss to Maine from canceled local food purchase programs, and crop insurance for diversified organic operations1:55:081:58:34.

Rep. Randy Feenstra (R-IA)2:00:16: Asked about estate tax, Section 199A, and depreciation provisions in HR1 and their impact on generational farm transfer2:00:46; asked Boring about cold-chain storage for exports2:02:46.

Rep. Nikki Budzinski (D-IL)2:05:05: Noted Collinsville, IL supplies two-thirds of world horseradish; discussed the Local Farmers Feeding Our Communities Act and Michigan's farm-to-family model2:07:092:07:38.

Rep. Mark Harris (R-NC)2:09:41: Asked Brennan and Boring about regulatory burdens and AGI eligibility limits affecting specialty growers2:10:332:11:36.

Rep. Salud Carbajal (D-CA)2:14:19: Cited an estimated loss of 155,000 agricultural workers nationwide March–August due to immigration enforcement2:15:16; asked about R&D investment and crop insurance for Grimway2:16:472:17:39.

Rep. Rick Crawford (R-AR)2:19:43: Described the committee's year-long agricultural labor working group producing 21 recommendations (15 unanimous) referred to other committees lacking jurisdiction2:20:002:22:22.

Rep. Andrea Salinas (D-OR)2:23:34: Asked about crop insurance gaps for Oregon's nursery/greenhouse sector and pressed Sagili on SCRI process improvements, including waiving matching-fund requirements2:24:262:27:08.

Rep. Mary Miller (R-IL)2:28:46: Highlighted Illinois's pumpkin, horseradish, and popcorn production; asked about mechanization tariffs and crop insurance fairness2:32:042:32:42.

Rep. April McClain Delaney (D-MD)2:34:03: Asked about crop-reporting burdens for diverse nurseries and USDA's proposed closure of the Beltsville Bee Research Lab, which Sagili and Frantz both opposed2:36:042:37:39.

Rep. Tom Weeger (R-WI) ["Mr. Weed"]2:39:10: Noted Door County cherries and Wisconsin's 60% share of US cranberries; asked about organic production's growing market share (~$9 billion, 58% of organic sales from produce)2:42:24.

Rep. Josh Riley (D-NY) ["Mr. Manion"]2:44:09: Criticized a rules-committee move blocking floor votes on tariffs, arguing Congress ceded its constitutional tariff authority2:45:30; cited New York's 30.5 million bushel apple crop2:46:22; asked Sagili about neonicotinoid research2:48:12.

Rep. Rob Bresnahan (R-PA)2:49:35: Cited a Pennsylvania orchard donating 55,000 pounds of fruit to food banks; discussed his Local Farmers Feeding Our Communities Act and challenges for beginning farmers2:50:342:52:00.

Rep. Jim Costa (D-CA)2:54:34: Cited California's $61 billion agricultural output and 70% undocumented farm workforce; asked about tariff and USDA research-cut impacts2:56:382:58:13.

Rep. Doug LaMalfa (R-CA)3:00:07: Asked about H2A reform, crop insurance viability for diversified farms, and disaster-funding processes, advocating for more water storage3:01:583:03:56.

Rep. Brad Davis (R-NC) ["Mr. Davis"]3:05:42: Cited North Carolina's #1 sweet potato ranking ($129 million in 2024 exports); asked about H2A challenges and IR-4 program value3:06:373:09:01.

Rep. Monica De La Cruz (R-TX)3:10:19: Described the 1944 water treaty dispute with Mexico threatening Texas citrus and the loss of the state's last sugar mill; introduced her "Bracero 2.0" H2A reform bill3:12:50.

Rep. Jahana Hayes (D-CT)3:15:53: Cited $362 million in Connecticut nursery/greenhouse sales and declining farmland; discussed her Save Our Small Farms Act and whole-farm revenue protection reform3:16:513:17:16.

Chairwoman/Rep. Kat Cammack (R-FL)3:20:59: Cited Florida's $1.4 billion in fruit/tree nut/berry sales; raised a specific citrus-nursery recertification problem after hurricane pest-exclusion breaches3:23:16.

Rep. Shri Thanedar (D-MI)3:26:23: Focused on Detroit food deserts and urban agriculture, asking how the farm bill could expand access in areas with 35% poverty and no grocery access3:27:503:30:47.

Key moments

HR1 raised SCRI mandatory funding from $80 million to $175 million/year starting 2026, after the program funded only 20–25 of many applicants annually at roughly a 15% success rate0:19:050:19:32.

Frantz said catastrophic/whole-farm crop insurance requires a 50% loss threshold his diversified nursery (700+ varieties) can never meet even after a frost destroys a third of his citrus0:39:293:18:05.

Boring reported Michigan cherry growers lost 30–75% of their 2024 crop and harvested only 60% of a normal crop in 2025 due to abnormal weather0:22:570:23:23.

Rouzer entered a North Carolina State/Blake Brown report finding the H2A adverse effect wage rate, if pegged to the employment cost index instead of current methodology, would have added 518–823 million pounds of fruit/vegetable output and 25,744 jobs0:59:551:00:25.

Craig and Boring established that USDA delayed the 2025 specialty crop block grant RFA from its usual December/January release to May, compressing researchers' planning time ahead of the growing season0:34:460:35:06.

Brennan testified specialty crops account for roughly a third of US crop cash receipts but receive only 0.5% of farm bill funding and a small fraction of agricultural R&D dollars0:27:181:41:07.

Frantz and Sagili both urged Congress to prevent USDA from closing the Beltsville Bee Research Lab, citing its historical specimens and strategic Northeast location2:37:192:39:02.

Tokuda argued specialty crop block grants cannot substitute for the eliminated $400 million Regional Food Business Centers or $1 billion Local Food Purchase Assistance/Local Food for Schools programs, which Boring acknowledged tend to be narrowly project-focused rather than ecosystem-building1:14:021:15:18.

LaMalfa and Frantz discussed the "controlled environment" insurance pilot for quarantined citrus nurseries, noting USDA has never actually ordered destruction of a quarantined crop even though the program only pays out for destruction orders, leaving growers uncompensated when they simply lose market access2:25:112:25:40.

Frantz noted a fellow Ohio grower's H2A adverse wage rate rose 47% since 2019, and labor generally exceeds 30% of nursery input costs1:02:391:03:01.

Metadata

CommitteeHouse Agriculture
Chamber / CongressHouse · 119th Congress
Date2025-09-16
TypeHearing
Witnesses
Dr. Ramesh Sagili — Professor, Horticulture, Oregon State University
Dr. Tim Boring — Director, Michigan Department of Agriculture and Rural Development
Mr. Michael Frantz — President, Frantz Wholesale Nursery, LLC
Mrs. Dana Brennan — Vice President, Corporate Affairs, Grimmway Farms
Videoyoutube
Transcript637 caption blocks · 36,743 words · 3:37:47 runtime
EventCongress.gov 118601