▶ 0:16:51These are all family affairs. To allow you to serve. We want to extend a welcome to your wife and a lovely family joining you here today. Mr. smith, when speaking with you it is clear you understand the challenges facing rural america.
▶ 0:17:10Your experiences in the 1980's operating a family farm and serving on the board of the farm credit administration, among other roles, will be critical for you to draw on as you make decisions and will have a communities. More nominating on the numbers of time for american agriculture and water level monitoring.
▶ 0:17:37Members on the panel are all too familiar with the great challenges facing the agriculture sector while rural communities vary wildly, many of them share serious issues that rural development is uniquely equipped to tackle. In the past 15 years nearly 200 robo hospitals have closed oriented inpatient services. -- rural hospitals have closed or ended in patient services.
▶ 0:18:05Millions of americans living in rural areas still don't have access to high-speed broadband or even clean drinking water or adequate sanitation. If confirmed, you will be charged with the critical mission of improving the economy and quality of life in rural america through three agencies, the rural utility service, the rural housing service, and there were rural business cooperative service.
▶ 0:18:29In my own home state of arkansas I have seen firsthand the success of U.S.da's core rural development programs improving the access to the infrastructure necessary to provide clean drinking water, reliable, affordable electricity, high-speed broadband, quality health care, and safe, affordable housing. It is not an exaggeration to say many of these programs are lifesaving and generate tremendous results from the investment.
▶ 0:18:58I am looking forward to the conversation today and hear your thoughts on not only how rural development will be a resource for americans living in rural communities but how we can streamline programs, ensuring they reach the communities individuals -- not
▶ 0:19:33Individuals -- n -- and individuals who need them most. >> we were so excited to hear from Mr. smith.
▶ 0:19:42Sen. Klobuchar: Thank you chairman boseman and ranking member klobuchar when she arrives. It is a privilege to introduce a fellow ioan, Mr. glenn smith -- iowan Mr. glenn smith to the committee at I want to welcome his wife and their family. A special shout out to in the -- to emma, who is in the seventh grade. Thank you for being here today. It is always a family affair.
▶ 0:20:13Sen. Klobuchar: Glenn, you have a wonderful family. Welcome everybody to washington, D.C.. The honorable senator from kansas said you married up. [laughter] I have had the very personal pleasure of knowing glenn and his family for many, many, many years. His hometown of atlantic is just down the road from my home in red oak.
▶ 0:20:40Sen. Klobuchar: Today feels full circle for me because in this very same room eight years ago, I had the pleasure of introducing glenn that during his nomination to the farm credit administration. Since then he spent almost a decade helping strengthen the backbone of american agriculture, ensuring farmers and rural businesses have the credit and financial tools they need to succeed.
▶ 0:21:08Sen. Klobuchar: Now, president trump has chosen him to serve as the undersecretary secretary of agriculture for rural development, a role that impact communities in every state. As a fellow iowa state graduate with a degree in agricultural business, glenn built a career in agricultural real estate and appraisal serving farmers and landowners across southwest iowa. Glenn and his family also operate smith generation farms, working approximately 2000 acres of row crops.
▶ 0:21:41Sen. Klobuchar: With his experience glenn is well-positioned to lead the nathan kistler --usda development division. >> thank you for getting me back on track. Thank you for being here, Mr. smith.
▶ 0:22:07Sen. Klobuchar: I will now administer the oath and you may begin with your testimony. You will have five minutes. Please raise your right hand. >> to swear or affirm the statement you are about to provide it's the truth, the whole truth and nothing but the truth, so help you god. >> I do. >> thank you.
▶ 0:22:37Sen. Klobuchar: You are now recognized for your statement. >> thank you those introductions. Senator ernst, senator grassley, to our family for many years and a friend to all in agriculture. Chairman bozeman, ranking member klobuchar, when she arrives, distinguished members of the agricultural committee.
▶ 0:23:01Sen. Klobuchar: It is an honor to appear before you today as president trump's no money to be the under secretary for rural development for the U.S. department of agriculture. I am a fifth-generation farmer for the jet -- from the gently rolling hills of western iowa. All of the children behind me represent the six generation. As mentioned before, she would properly squirm a little bit from the attention.
▶ 0:23:27Sen. Klobuchar: My special guest is our oldest granddaughter, emma, representing the seventh generation of agriculturalists. That is if she career -- continues her impressive career in the cattle business. Like most farm kids the virtues of hard work and determination were instilled in me at a young age. I witnessed for years my parents struggling to keep a small farm going.
▶ 0:23:58Sen. Klobuchar: I watched my folks fight back after a disabling accident working all farm jobs. Doing farm work. In the evenings, weekends, and holidays.
▶ 0:24:17Sen. Klobuchar: Our rural community was always there, supportive, talking to our neighbors, our friends, our family, church, pastor, emergency response, health care system, doctors, nurses, schools, teachers, coaches, local businesses offering jobs. The list is long. Of the lessons learned from living in a rural community never leave you.
▶ 0:24:42Sen. Klobuchar: In order for rural communities to survive and prosper we must have robust rural economies. As a lifelong farmer I can tell you when a farmer has a daughter in his pocket, chances are he needed -- a $.90 of that honor will be spent in town. It is the multiplier effect we all read about. The key to that prosperity has been and will continue to be adding value to our real bulk agricultural products.
▶ 0:25:13Sen. Klobuchar: I have noted, and I think it has been great to see the proliferation of consumer -- directly to consumer from producer products that we have seen in the last decade, may since covid.
▶ 0:25:28Sen. Klobuchar: Locally raised beef from north dakota and kansas ranches, pork from a minnesota farms, vegetable and fruit from michigan and vermont go to our schools, hospitals, and farmers markets. I have witnessed in the value added in our own backyard. One of our iowa farms borders one of the most efficient ethanol plants in the world. I have seen how it has boosted our local economy.
▶ 0:25:56Sen. Klobuchar: It is not just the 80 jobs at that plant. It is all of the support services and businesses it engages and the wells and pumps into the trade area from the premium price paid for corn for the ethanol distributed all over our country and on over the world.
▶ 0:26:16Sen. Klobuchar: You capitalized those premiums by long-term investment rates and you are talking hundreds of millions, maybe billions of dollars over time it pumped into that rural economy. Rural development could and should play a key role in the value-added investment and entrepreneurship encouragement. The second area I would like to touch on is rural connectivity.
▶ 0:26:41Sen. Klobuchar: During covid, many of you saw and I saw a reversal of the historic rural to urban population migration. We sought rural populations grow, largely in areas which could support remote internetwork. I firmly believe many urban residents desire and would seek the amenities of a rural living. However, they also need the tools to work remotely in meaningful occupations.
▶ 0:27:11Sen. Klobuchar: Of those same tools of connectivity allow schools, hospitals, and businesses in rural areas to compete with the rest of the world. Let's take a history lesson. In 1936, under the new deal, franklin delano roosevelt, rural development was charged with the challenge of bringing electricity to our countries rural regions, a mission admirably achieved.
▶ 0:27:39Sen. Klobuchar: Given these resources, rural development should strive to achieve the same level of success and rural connectivity. Given the right resources. The last area I want to touch on is the cost and availability of homes in rural america. While it is a challenging area, if confirmed, I pledge to ensure usta programs on housing operate with transparency and efficiency.
▶ 0:28:03Sen. Klobuchar: I will look at all options specific to different regions and make intelligent, long-term investments in meeting housing demand. Intelligent investments. Not just pushing money out the door. That's not fair to the recipients. It's not being accountable to the public dollar. These are a few of my ideas as they ponder -- I ponder a new role as advisor to sec.
▶ 0:28:28Sen. Klobuchar: Brooke rollins carrying out the goals of the trump administration in serving rural america. As members of this committee I am sure you have many of your own ideas, some of which you shared last week. If confirmed, I pledge I will listen to those ideas and together we will work on improving the viability and prosperity of rural america. I look forward to your conversations and questions. And thank you, Mr. chairman.
▶ 0:28:57Sen. Boozman: Thank you very much. I want to, without objection, I would like to add letters of support for Mr. smith's nomination to the record. So ordered. I will go ahead and get started. Arkansas is one of the largest shares of rural populations in the country with nearly 45% of the state population residing in rural areas.
▶ 0:29:27Sen. Boozman: Usta data does show modest population gains in some rural communities following the covid pandemic but many were rural communities continue to see declines. The question is, to me, that is really the major problem facing rural america. I think 53% of our counties lost population in the last sentence. -- census. It does not matter if you are the fastest-growing state in the country or where you are.
▶ 0:29:55Sen. Boozman: Even those states are losing rural populations. The question is, what ideas do you have? How can you work with congress to implement things that will help stem the flow of migration and generate sustained economic growth in rural areas?
▶ 0:30:17Mr. Smith: Thank you, chairman bozeman. In my opening comments in addressing the three areas of rural development, I think that to look at solving some of the decline in rural american population, you look at it two fold. Number one, you need good, vibrant rural economies and successful agriculture contributes to that tremendously. Again, the multiplier effect we speak of.
▶ 0:30:47Mr. Smith: Rural development has so many programs. 88 programs, I have learned. Many of those are support for businesses, for cooperation, entrepreneurship endeavors in rural america. All of these contribute to the prosperity and moving ahead as far as the rural economy. You also have to have quality of life.
▶ 0:31:13Mr. Smith: Rural development also plays a huge role in that with community facilities. Everything from water treatment to waste treatment to hospitals to fire stations. Infrastructure. Infrastructure contributes to the quality of life because you won't keep residents or attract residents. Which would be even more positive if you don't have that quality of life.
▶ 0:31:44Mr. Smith: Rural development contributes hugely to the quality of life. >> thank you. Mr. smith, we have seen a news report that hostile actors like china have targeted U.S. infrastructures like water systems.
▶ 0:31:58Mr. Smith: What are your thoughts on the importance of cybersecurity to the core infrastructure programs and rural development and will you commit to working with the committee to better understand the policy tools that might be needed for used bob --usda and other critical infrastructure is protected from those who wish to do us harm?
▶ 0:32:23Mr. Smith: Senator, that shares -- scares the be jesus out of me and it should every american. The vulnerability of our grant, specifically in rural areas that might not have the security needed to protect the distribution grid, I think any programs rural development is involved in should make sure we have adequate cybersecurity measures because a lot of this can be done by bad characters simply from cybersecurity.
▶ 0:32:53Mr. Smith: They won't show up at a site and plant a bomb at a substation. They will do it on their computer. The cybersecurity issue is a very huge. That is something I think we should make sure we have those protections in place for quote new loans, for guarantees and grants. Wherever rural development is contributing.
▶ 0:33:24Sen. Boozman: One thing the government struggles with is I.t.. How important is improving I.t. Capabilities to the program and how do you view technology improving the customer experience? >> senator, I have not delved into this yet but I can pull on my experience in the farm credit administration. My fellow board member jeff hall is here in the audience and we worked together for eight years.
▶ 0:33:56Sen. Boozman: Cybersecurity is at the top of the issue. Key to that is a very very on top of it I.t. Program. We found, with our employees, particularly, during covid, we really had to tap in to those I.t. Resources to continue our mission.
▶ 0:34:18Sen. Boozman: My goal be to find out, first of all, if our field offices, and there are hundreds of field offices across the country. Are they equipped with the right equipment? The audio and visual equipment that allows them to communicate between offices and with the hub offices and with us here in D.C.. So this is something I will look into. It is something that I think is a great deal of importance.
▶ 0:34:46Sen. Boozman: If there is improvement needed, believe that we will try to execute those changes. >> thank you. Senator smith.
▶ 0:34:57Sen. Smith: Welcome to the committee, Mr. smith. Maybe you are related to my husband's family.
▶ 0:35:05Mr. Smith: You never know.
▶ 0:35:10Sen. Smith: In preparation to the hearing I asked my staff to check in with minnesotans on this important issue of a rural economic issues and over and over again we kept hearing, what is this administration's plan for spurring rural economies?
▶ 0:35:26Sen. Smith: The question is being asked out of the context of a lot of talk about moving things around within rural development, for example moving the rural housing service or rural business financing programs for rural broadband programs to commerce. I don't know what this would look like yet. We don't have a concrete plan. But I can tell you that in minnesota this is giving people a lot of concern because they trust the usda on these issues.
▶ 0:35:55Sen. Smith: They know where to go and how to find the help they need and they know rural challenges are unique. They believe that the usta -- usda understands that. I wanted to raise this, Mr. chair, because I think as we are looking at a farm are part of a that is deeply challenging for many folks now with a big credit crunch at a lot of challenges, it is important folks know that usda rural development will be there for them.
▶ 0:36:24Sen. Smith: I want to go to a piece of this right away. I appreciate you magenta rural housing in your opening statement. I'm sure that everybody around the committee table knows we have a serious shortage of affordable housing in particular in rural communities, places where our elders are, folks living on fixed incomes, folks working two or three jobs.
▶ 0:36:50Sen. Smith: I think everybody agrees that the rural housing service that usta needs to be reformed and modernized. This is been a special project of mine. I worked with senator rounds on this several years. Strong bipartisan support. In fact, it passed out of the senate. Mr. smith, I think the rural housing service should stay at usda. They know the program understand how it works.
▶ 0:37:19Sen. Smith: They can work with rural communities. Can you comment on that? Do you think it should stay at usda? Will you work with me on this piece of legislation. -- legislation? It has yet to pass the house. Can you comment on this and let me know you would be able to work with me on this?
▶ 0:37:40Mr. Smith: Senator, I could not agree more. My first-hand experience with usda as a former is the nrcs and fsc offices. They have similar footprints in rural america. We have is a mechanism for these programs. I could not imagine this being in another area other than usda.
▶ 0:38:11Mr. Smith: My primary responsibility is to be the advisor to secretary raanans and that would be my advice to her. As far as working with you, I would be more than happy to work with you on those ideas and data bill to make sure that comes about -- that bill to make sure that comes about.
▶ 0:38:29Sen. Smith: I believe this bill is a classic common sense, bipartisan, does not cost much but let's figure out how to make programs that have been around a long time work better for farmers and homeowners. This could preserve up to 400 thousand affordable units across the country. It's a big deal. Let me ask you about one other thing in the minute I have left. I hear all the time in rural communities about how important it is to find childcare.
▶ 0:38:59Sen. Smith: If you do not have childcare, you have a lot of families working off farm as well as on the farm. There is a real shortage. It's a big issue. This is another bipartisan thing. I worked with Sen. ernst and a senator marshall marchand is legislation that would help the usda help local often family-owned childcare providers in their communities. Would you talk a little bit about this?
▶ 0:39:25Sen. Smith: Would you be -- and how you see this challenge? >> I promised I would bring my wife up here in the chair because she can attest to the challenges that we had it raising four children, not having a lot of money. Basically, her working a full-time job as a nurse at the hospital and me starting to try to get a business off the ground in town and operating a farm besides.
▶ 0:39:57Sen. Smith: Yes, it was a constant challenge. It was a juggling contest to see you would pick up you, who would pick up who for school. Childcare has become a critical need in rural america. Has it the next generation can attest to, with our grandchildren.
▶ 0:40:18Sen. Smith: I know that in our hometown community of atlantic now there is an initiative to bring in new housing, and compatible with that, right without his expanding on a childcare center that we contributed to. So absolutely. You hit right on the point. The fact of life is, many rural families are two income families. When I was growing up you had your grandparents, aunts, uncles, and cousins right there.
▶ 0:40:49Sen. Smith: A lot of times from you all traded off. You got on the school bus at the same time. We are in a different era now with two income families. A lot of times, two income families means the spouse works just to provide insurance and health care for that family. I have a young friend of down the road with four young children. They are all healthy, thank god. His insurance is like $36,000 a year. >> and you've got an idea to fix that too?
▶ 0:41:22Sen. Smith: I am being polite because this is the ogg committee.
▶ 0:41:25Mr. Smith: As far as childcare, senator, I could not be more supportive of that. It would fall under the community facilities area. Rural development, as I understand it is that even right now.
▶ 0:41:43Sen. Smith: Thank you, Mr. chair.
▶ 0:41:47Sen. Boozman: Thank you, thank you chair and thank you Mr. smith. It's great to have you before us today. I know I am biased, but I always say that we need more aria wins -- iowans serving in our federal government and those who truly understand what it is to be rural americans. Thank you for being willing to take this on. Mr.
▶ 0:42:13Sen. Boozman: Smith, as you know, the agricultural economy continues to struggle with high input prices and low commodity prices. Yesterday, cnh announced it will be closing its facility in burlington, iowa. With that closure it eliminates about 200 jobs. The plant produced heavy machinery and agricultural equipment and its closure shows how farm income at ripples across our entire state.
▶ 0:42:42Sen. Boozman: I do think the president and his team for delivering new trade deals and advancing strong policies to support the biofuel industry that will help us build new markets. That said, there is still more work ahead to increase demand.
▶ 0:42:58Sen. Boozman: Add usda, the bio preferred program plays a key role promoting bio-based products, many made from iowa grown crops like soil-based asphalt and corn-based carbon fiber used in military munitions. Unfortunately the program is not currently operating, because it has run out of resources.
▶ 0:43:24Sen. Boozman: With it renewed backing from congress and strong usda leadership, bio preferred can expand markets, create jobs, and strengthen rural communities. Senator slotkin and I introduced in the bio manufacturing and jobs act to modernize the program by increasing purchases of bio-based products, improving labeling and transparency, and better coordinating usda efforts to grow the bio-based economy here at home. Mr.
▶ 0:43:53Sen. Boozman: Smith, if confirmed, will you commit to prioritizing improvements to the bio preferred program and working with congress to expand of bio-based markets and federal government procurement? Mr. smith thank you for the question. Thank you for first introducing me to the idea of coming to washington, D.C.. Though the first couple months, getting used to the traffic and standard of living here, I wondered about it a few times.
▶ 0:44:27Sen. Boozman: But the question about the biofuel plant or any bio product is using our raw bulk commodities that I mentioned in my opening comments. Any business we can use that we can utilize in the united states that uses that raw agricultural product, we are not relying on bushel corn, bushels of beans or whatever to be exported to keep
▶ 0:44:57Sen. Boozman: Prices up. We are developing our own markets. So it has the potential effect, not only on that industry in indiana, illinois, iowa, minnesota, whatever it rural state happens to be in. It has a multiplier effect, creating domestic demand. Absolutely I would support you in that. I know there are a lot of exciting products and technologies out there. We can utilize our raw bulk products.
▶ 0:45:28Sen. Boozman: Anything we can invest in, rural development in the way of grants, loans, or guarantees I believe will pay exponentially. Yes, ma'am, I supported that.
▶ 0:45:41Sen. Ernst: Thank you very much. Switching gears quickly in the time we have left, connectivity, as you mentioned, in rural america is a very important. Whether it is our hospitals, our schools, home businesses. We need to make sure we are able to compete and thrive with that connectivity. Right now there are more than 133 broadband programs across the government, including six under usda rural development.
▶ 0:46:10Sen. Ernst: Many of the programs are very duplicative and could be better coordinated. So I have introduced the streamlining rural broadband act to consolidate the usda community connect grant program and reconnect program. Mr.
▶ 0:46:25Sen. Ernst: Smith, if confirmed, will you commit to reviewing the usda broadband programs to reduce the duplication and ensure taxpayer dollars are targeted to truly connecting our underserved areas and underserved areas? Mr. smith was the resources we need directed to usda.
▶ 0:46:56Sen. Ernst: Yes. I have a commitment to that. That is why I mentioned that in my opening comments. It would be a priority. >> thank you. I look forward to voting on your confirmation. Thank you, Mr. chair.
▶ 0:47:11Sen. Boozman: Senator welch.
▶ 0:47:15Sen. Welch: Thank you, Mr. chairman. I had a nice visit with you. I really appreciated the time you took in my office. I share the concern about
▶ 0:47:31Markets That Sen. Ernst: Just spoke about. And I also explained to you in vermont we are really proud of the services we have received from your agency. It has really made a difference for farmers. We are really worried about staffing. This is something I brought up with you. In vermont we have apparently had at the highest cuts of any regional office. That is very worrisome to our farmers. Because they really think these guys do an excellent job.
▶ 0:48:02Markets That Sen. Ernst: I am not sure what you can do about that. I think they went way overboard. We have the lowest staffing rate of any regional office in the country, operating at 61% of capacity last year, before the office lost 12 more employees. Obviously, it was not anything you were involved in, but it is something you will have to deal with.
▶ 0:48:26Markets That Sen. Ernst: What assurance can you give to me, on behalf of our vermont farmers that really depend on the service that they will get the staffing that is absolutely essential to doing the job? >> well, we absolutely need to be committed to that critical mission, senator. As I told you, I toured vermont.
▶ 0:48:58Sen. Welch: I get that. If you are coming in not in georgette. You have a lot of experience running a major organization. You have the skills. But the administration made a decision for other reasons related to their view about spending. And you seem sympathetic to my concern that there be adequate staffing. You will be in a situation where you might want to do something where you will have to get authority from other places in order to do it.
▶ 0:49:27Sen. Welch: I am guessing I am asking you how you navigate that. I don't have reservation about your commitment to doing everything you can, but it is a real practical problem for anybody taking your job. We have not seen any sign the administration is particularly concerned about re-upping adequate staffing in vermont.
▶ 0:49:58Mr. Smith: Well the first thing I learned at the farm credit administration was get the objective data and find out exactly what you're staffing issues are, because I don't know.
▶ 0:50:11Sen. Welch: I will work with you. It is a concern and it comes from a place where we really value what you do. Last year, congress allocated 300 $62 million to the disaster assistance fund. Vermont is expected to receive 30 $1 million. We had floods in july of 2024, july of 2023, and some in july of 2025. My understanding is omb released the funding to usda in august.
▶ 0:50:42Sen. Welch: But where is the money? We don't have it in vermont yet. Is this something you can help us with?
▶ 0:50:51Mr. Smith: I promise, if confirmed, I will check into that. With a disaster, you need it now.
▶ 0:51:03Sen. Welch: We really do. I am working with mike connelly, senator marshall, on the reconnect program. I know you are very concerned about rural broadband and its importance. My colleagues on the committee are as well. What are the things about that program visit flip-flop -- codify over 100 megabits.
▶ 0:51:24Sen. Welch: Basically the proposition we have in that bill is that it should not get sick -- you should not get second string, second rate internet service just because you are in rural america. What are your thoughts on that?
▶ 0:51:39Mr. Smith: I could not more, senator. I was the chairman of the board, the ceo for the foreign credit administration, the regulator for the system during covid. There were times, trying times. But I had to be in contact, regular contact. I had to have the speed necessary to do the videoconferences and everything.
▶ 0:52:10Mr. Smith: I understand the critical need for good rural broadband in rural america. >> not second rate to the fancy cities that guys like grassley prefer.
▶ 0:52:28Sen. Boozman: Senator grassley.
▶ 0:52:32Sen. Grassley: I am glad your roots are deep in rural america because you have been in this town long enough to know this city is an island surrounded by reality and I am happy to have your common sense. You spoke a little bit about your work on the farm credit system. I know you know the importance of federal loan programs. I think of rural hospitals as an example of this area.
▶ 0:53:00Sen. Grassley: I am not asking you just about rural hospitals. How will you use your experience at the farm credit administration to improve loan functions at the usda?
▶ 0:53:14Mr. Smith: Senator, that question is something that was posed to us early on, to myself and fellow board member hall years ago, 6, 7, 8 years ago. As we are regulating these sophisticated financial organizations, we need to understand it. So, what we have done in I.t.
▶ 0:53:37Mr. Smith: To advance that is I get to usda and apple will be one of the first questions I asked. Where are we in financial technology? Are we able to deliver those programs as efficiently as possible today? In today's world?
▶ 0:54:02Mr. Smith: Hopefully, that look at the rit, if there is improvement, it will help solve, in part -- not completely, but in part, the question on personnel, something we will very closely when we get there if confirmed.
▶ 0:54:24Sen. Welch: You have an ethanol plant in your backyard and I do as well. I was home to 40 of these plans. We are a national leader in biofuels. Ethanol demand, increased corn demand, supporting farmers. I know you can't make decisions in this area and it is mostly the epa, but you can sure be an advocate.
▶ 0:54:48Sen. Welch: Do you agree supporting ethanol and other biofuels to in turn support rural communities and we should expanded domestic production, using export markets for ethanol?
▶ 0:55:02Mr. Smith: I am an advocate, senator. I would actively support that and I continue to support that. It is critical, critical to rural america that we continue to use our biofuels, our agricultural products to add value to them. Ethanol is probably the shining example and shining success, I might add, in america today.
▶ 0:55:34Sen. Grassley: Speaking up for rural development is very important. Don't wait for opportunities to come to you. Seek them out. This town is kind of ignorant about biofuels and ethanol. Maybe people in this room aren't because it is the agricultural committee room. But remember, when you hear people pronounced ethanol incorrectly, when you are talking to somebody that does not know much about the program.
▶ 0:56:07Sen. Grassley: With rural economic development, loans and grant programs, you know that program and what I am talking about? It is a critical tool for iowa rural electric cooperatives. It drives economic growth in rural communities which otherwise would not have access to financing for improvement and new projects.
▶ 0:56:35Sen. Grassley: Would you work with my office and appropriators to ensure these are ec -- recs are supported?
▶ 0:56:48Mr. Smith: I will commit to that.
▶ 0:56:52Sen. Grassley: I yield back my time.
▶ 0:56:56Sen. Boozman: Ranking member klobuchar.
▶ 0:56:58Sen. Klobuchar: Mr. smith, I apologize for being late and I think our other members for being here. I had kind of a messed up day. I went to the tariff argument at the supreme court, which was very interesting and good and it went a lot longer than anybody thought. You can't exactly jump up in the middle of the supreme court argument and put out the rest of the schedule. But I do want to welcome you and your wife and children, your son in law, your granddaughter.
▶ 0:57:26Sen. Klobuchar: And I wanted to recognize the farm credit administration board chairman jeffrey hall. We had a good meeting a while back. I just want to point out the importance of a rural development now. If we do come upon a moment where we can pass some kind of a farm bill, I think this will be one of the big reasons why we should do it.
▶ 0:57:55Sen. Klobuchar: I know that senator welch asked about staff losses in vermont that we have seen all over the country. That is something very important to me. We talked about you working to try to build up the staff again. We also have some issues that I know you have heard of with some of the broadband, electric co-op, some of the projects going that we want to make sure happen.
▶ 0:58:22Sen. Klobuchar: Co-ops in minnesota supply nearly a quarter of our luck -- electricity. We are one of the biggest states for electric co-ops. They serve almost 2 million minnesotans. So I hope you work with me on this project. And as we discussed last week we also care a lot about high-speed internet both out of the commerce committee flow of money and the usda. We discussed rural health care, child care markets and the like. I have just a few questions here.
▶ 0:58:55Sen. Klobuchar: First, most of us on this committee have worked across the aisle to improve broadband access. The reconnected loan and grant program delivered high-quality internet to rural areas, often, partnering with electric and telephone co-ops. As under secretary will have a great deal of discretion over broadband funds at the usda. Do you believe the program should prioritize speeds like those available in urban areas.
▶ 0:59:22Sen. Klobuchar: How do you plan to ensure the programs are accessible to rural electric co-ops and other small providers?
▶ 0:59:33Mr. Smith: Thank you for the question, senator. I do think it should have the same priority as urban broadband. We should have the same access to connectivity. It is the key for rural america to stay connected with the rest of the country in the world. We have had success with reconnect. The main thing we are looking at is, do we have resources for reconnect? That's entirely up to you in congress, where those resources are allocated.
▶ 1:00:03Mr. Smith: But I can tell you that in rural development, we have that footprint in rural america that I think we can deliver. >> there are a lot of projects out there already that have been frozen. I hope you will work with us to look at those projects. Some of them, interestingly enough, in minnesota, involved neighboring states.
▶ 1:00:32Mr. Smith: North dakota, south dakota, I think iowa. If you would be willing to look with us at them, they involve the electric grid. They involve all kinds of things that both are democratic and republican senators are interested in. When I looked at the list I was like whoa for the ones frozen in minnesota.
▶ 1:00:54Mr. Smith: We should all work together for that.
▶ 1:00:59Sen. Klobuchar: High blend of biofuel infrastructure. Senator ernst and I have worked on this at length and past some things that are successful in law. Do you commit to refunding opportunities for high blend biofuel infrastructure and making sure funds are spent on that?
▶ 1:01:15Mr. Smith: I do.
▶ 1:01:16Sen. Klobuchar: Housing. What are your affordable housing preservation strategies to keep existing properties in usda programs?
▶ 1:01:33Mr. Smith: One thing that has become obvious to me, I had no idea the breadth and scope of rural development before I started looking into it. So I did not realize how much they are involved in housing. Now, we probably cannot cure the problems of the high cost of building a new home, the high cost of major repairs. But we do offer grants.
▶ 1:01:58Mr. Smith: We do offer loans and guarantees to parties who qualify at subsidized interest rates. So it is one step closer to affordability. Of rural housing.
▶ 1:02:12Mr. Smith: One thing I do hear from some states is the whole regulatory process, the permitting, the licensing of the contractors, all that becomes almost prohibitive and does add to the cost, can add to the cost of the house, may be in a town of 1200 people. Which does not make sense in fitting in with possibly the federal rate.
▶ 1:02:40Mr. Smith: So, I would strongly encourage looking at somewhat of a d regulative structure to make sure that those homes can be built in the most efficient manner possible. The other thing, senator, that I want to talk about is I have lived in a rural community almost my entire life not realizing the depth and scope of the programs. I think our visibility needs to be improved in rural america.
▶ 1:03:09Mr. Smith: I have told to my w dairy undersecretary -- deputy undersecretary about that. He comes from the publication business and have some ideas on how we can get the word out that there are programs, subsidized programs that allow low and moderate income people to invest in their dream of living in their own home.
▶ 1:03:36Sen. Klobuchar: Thank you very much. Bye carly wants to ask questions so I will save some time on the clock. -- my colleague wants to ask questions so I will save some time on the clock.
▶ 1:03:49Sen. Hyde-Smith: Is to see you again. We had a nice visit before and I appreciate all you are willing to do for us. There are three things I want to talk about today. First, extending markets and opportunities for U.S. for three products and improving rural water and wastewater infrastructure, ensuring proper access to health care in rural america.
▶ 1:04:14Sen. Hyde-Smith: In mississippi we have over 19 million acres of forest land and 130 thousand forest landowners, very important in mississippi. The activity generates 84,000 jobs and $4.4 billion in income annually. We are often referred to as the wood basket. Right now the basket is full. The bottom line is we need to expand existing markets and create new timber and wood residuals.
▶ 1:04:44Sen. Hyde-Smith: My colleagues and I are exploring ways to utilize existing programs to support renewable energy systems to strengthen rural communities through biomass. There is really a significant opportunity there for us to encourage sustainable forest management practices and, keeping our forests working to support local economics, because it is a driving engine there to build markets that will
▶ 1:05:15Sen. Hyde-Smith: Ultimately serve landowners and rural businesses. Obviously, there will be challenge and cost to all that. My question for you is, will you work with me going forward to strengthen these programs within usda and rural development's missionary had to support the forestry sector as we seek to create new and expanded markets for american timber and biomass?
▶ 1:05:39Mr. Smith: Senator, thank you for the question. Regardless of whether it is corn, cattle, soybeans, or timber, whatever business rural development can support that adds value to that end adds a new market, rural development should be involved, should and could.
▶ 1:05:59Mr. Smith: Certainly, in the timber industry, I confessed -- I confess I know it was part of the loan portfolio at farm credit, and I did not know a lot about it. I would look forward to hearing more about it and the industries which do you think need support. I would say to your staff, make sure you are in contact with our staff. And with programs that would fit.
▶ 1:06:28Mr. Smith: Because we need anything that adds markets for our domestic products, we need to support. >> thank you very much for that. I do have ideas I will get with you on. In water systems across mississippi, we have more than 1000 water systems. Our towns and rural water association's are often understaffed, working hard to keep the tops writing and the waste water safely disposed of.
▶ 1:06:53Mr. Smith: Many towns have infrastructure needs which far exceed their financial capabilities and often requires rate increases that are insufficient or not feasible to comply with federal environmental regulations. The communities that need assistance most often don't have the financial resources to hire an experienced grant writer or provide the technical expertise needed to apply for the various federal water and wastewater assistance programs.
▶ 1:07:23Mr. Smith: If confirmed, will you be mindful of the unique water related challenges faced by many rural communities and woke -- will you commit to working with me to eliminate as much unnecessary red as possible. -- possible? >> rural development has always played a key role in delivering clean, safe water to rural america. Anything I can do to influence and encourage that, I will. >> writes. Thank you.
▶ 1:07:53Mr. Smith: Let me get to my third one. Ensuring proper access to health care in rural america. We farm and has a farming accident and we use a lot of rural health care but nearly 50% of our rural hospitals operate at a loss and many have had to close their doors or discontinue services to stay afloat. Mississippi is a rural state and it is critical we maintain access to care particularly for those living in our rural communities.
▶ 1:08:26Mr. Smith: Were rural development administers the usda technical assistance program for rural hospitals, a lifeline helping hospitals manage their finances and prevent defaults on loans. Through this program, jasper general hospital received assistance that helped. It enhanced access to health care services in rural and underserved areas.
▶ 1:08:56Mr. Smith: Since 2018 almost 100 20 rural hospitals across the country have participated in the program with each project identifying significant ways to reduce cost and established a more financially stable path forward. Would you speak to the importance of the program for rural hospitals and how you plan to maintain and grow the program that has proven effective in helping where will hospitals? >> -- Mr. smith: senator, thank you for the question.
▶ 1:09:27Mr. Smith: As I stated earlier, I recognize the importance of the rural hospitals. That is what kept groceries on the table and paid electric bills in the early years of our marriage because my wife is an hour in -- an rn. Retired, now. Now she supports me. Rural development makes loans and grants and guaranteed loans to build facilities.
▶ 1:09:58Mr. Smith: We are not involved in the operational lending. It is a whole different area different from investing in facilities. But, you mentioned something I thought was important. For some of those rural hospitals, they have technical assistance. I think that is where rd can help. Again, getting back.
▶ 1:10:25Mr. Smith: I hate to be repetitive about something you feel strongly about. Connectivity in rural areas is so important. In order -- in order for those hospitals, that say it is just an urgent care facility 200 miles from a major hospital.
▶ 1:10:45Mr. Smith: A farmer comes in with a major accident, a major injury that he can get on the internet with one of the finest hospitals in the country and understand what to do until the patient can be transferred to that, to being the only things we need to have anywhere with that technology.
▶ 1:11:22Mr. Smith: >> I appreciate what you are willing to do.
▶ 1:11:25Mr. Smith: We talked about professional in areas that are important. Number one, you have to have that quality of life to attract them in the first place. I know rural development had a grant. One of the medical doctors. Very important.
▶ 1:11:48Mr. Smith: A grant to veterinarian college in mississippi state to pay back tuition for students that stayed in the state and practiced large animal practice in the state. That was a rural development -- a rural development grant. That is another way we can encourage that type of services we need so much in rural america. >> you are so right. There is a shortage, no doubt.
▶ 1:12:21Sen. Boozman: Senator lujan.
▶ 1:12:24Sen. Ray Lujan: Thank you, chairman. Mr. smith, you commit to follow the law?
▶ 1:12:32Mr. Smith: Of course.
▶ 1:12:34Sen. Ray Lujan: Do you commit to follow court orders?
▶ 1:12:39Mr. Smith: Of course. Simple a lot are you a man who keeps you word?
▶ 1:12:44Mr. Smith: I believe so. I would not be here if I would
▶ 1:12:47Not Sen. Ray Lujan: I grew up on a small farm myself. There's a lot you learned growing up in a small community. My father would leave my shovel and boots outside the door when I come home to visit and that means it was time to clean the barn.
▶ 1:13:15Not Sen. Ray Lujan: Without -- with that being said, Mr. smith, there is a difference of opinion I think with all -- colleagues and I on different sides of the aisle right now and all that is going on with the president. The reason I asked about the court orders. As you know, that at the end of last week the courts said the president had to roll out snap funding. The president said he did not want to do it. Even monday after he said he what he said he would not. Then, his staff, correctly, said, we will roll it out.
▶ 1:13:45Not Sen. Ray Lujan: But there is still a question about it. The reason I bring that up even though that is not your responsibility, sir, is one of the programs the trump administration council was canceled was a program to support local farmers and ranchers with the food banks. About $1 billion. As you know, these agreements get entered into local farmers and ranchers and that they change how they will grow for the next year and what they will raise for the next year.
▶ 1:14:13Not Sen. Ray Lujan: They don't look for other customers, because they know they have one. And that got cut. I hope when you are at the table, Mr. smith, you stand up for farmers and ranchers where we grew up, where you grew up. Just make sure that the programs that help them, that we find a way to do with it. If there needs to be changes or adjustments based on leanings one way or the other, I'm fine with that. My republican colleagues are in charge. I get back to the program swings that way.
▶ 1:14:43Not Sen. Ray Lujan: But in the end farmers and ranchers should not be hurt arbitrarily because somebody had a way of about something and I hope that is something we can agree on. In the health care space, I appreciate the questions being asked. One of the concerns I have is, in rural health clinics, I don't know, 15%-30 5% of the revenue comes from medicaid beneficiaries.
▶ 1:15:07Not Sen. Ray Lujan: Earlier this year by republican colleagues passed a piece of legislation that takes almost one trillion bucks out of the program. That does not just a trillion bucks out of the program. That does not just hurt people. That will close the clinics. Three years ago, I survived a stroke.
▶ 1:15:26Not Sen. Ray Lujan: If you have access to health care, if you get good doctors, if you have faith, you have good family, people that help you understand you have to posit a way of getting better, I'm very concerned with the way things have been going that a lot of these grants are things that have just been getting stalled. Not necessarily questions, I just hope that is another area where -- because you will be in the room with the secretary and everyone else.
▶ 1:15:56Not Sen. Ray Lujan: We say you have to find a way to get these clinics open that when something happens and you have to be able to get in quick to be able to reconnect that we get that done. I hope we can find some time there. I want to talk about electricity prices. You are aware what rural electric co-ops are? You are aware what the generation and transmission components are?
▶ 1:16:23Not Sen. Ray Lujan: For everyone that doesn't, they are the entities that generate the power and move the transmission to the smaller electric co-ops. Sorry for talking about it. I served on the public utilities commission before I came here, and I grew up as a member of a co-op. One of the questions that was asked earlier, I think by senator klobuchar -- she asked about some of the grants that were canceled to our gmt's across the country.
▶ 1:16:53Not Sen. Ray Lujan: There's one that matters to us in colorado called tri-state. What are your thoughts about the cancellation of these contracts that supported generation of these co-ops, which are arguably lower power for rural families that benefit from being a member of an electric co-op? Let me ask the question this way, Mr. smith -- is that something you will commit to look into?
▶ 1:17:24Not Sen. Ray Lujan: Understanding it is a republican administration, they may have preferences one way or another, but if a local gmt is made up of members of electric co-ops -- these are real conservative folks, for the most part -- that if they choose if they want to do some generation in a certain area, that is something I hope we would all respect as well, but is this something you will commit to look into if there is a better way to go forward?
▶ 1:17:54Hon. Smith: I think that is part of the job, senator.
▶ 1:18:00Several: I appreciate that. >> rural development just vital in america in so many different ways. One of the things we are working on in north dakota is what we call crack the code 2.0.
▶ 1:18:26Several: Crack the code 1.0 was where we worked on developing directional drilling and hydraulic fracturing to produce oil from shale. Traditionally, that was not economically viable.
▶ 1:18:44Several: During my term as governor, we worked with a lot of innovative companies that came in and figured out how to do that, and now we're working on trying to connect our coal-fired electric plants with the oilfield, where and we will take the co2 of the coal plants and put it down for oil recovery and we think we can double the life of those coal plants at a time when we badly need electricity, and we can double the production out of the
▶ 1:19:15Several: Shale. Just in our state, that is over 5 billion barrels of oil we have gotten so far, so it has huge implications for energy, not only for our state, but for the country because if we can do it successfully in north dakota, they will do it in the permian basin and in ohio and so on and so forth. The cooperatives are an important part of this effort and rural development is an important part of this effort because of your credit programs.
▶ 1:19:45Several: Talk to me about your commitment to make sure that -- there's a cooperative with project hundred that is heavily involved. I want to know how you will support that effort. >> thank you, senator, for that question.
▶ 1:20:10Several: It would appear that the technology you are describing enhances more efficient oil production, cheaper oil that I think we all agree is good for the american consumer. And it benefits rural america, which is what we are all about at rural development.
▶ 1:20:35Several: I think anything that reduces the dependency on foreign oil, encourages domestic production is something that we should look at strongly.
▶ 1:20:46Sen. Hoeven: As you know in rural, cooperatives have been incredibly important and your credit programs are incredibly in program. Another big thing is hospitals. We included $50 billion to help rural hospitals.
▶ 1:21:01Sen. Hoeven: One of the programs we have used in north dakota is the rural development program for them to build new facilities, and combining that with the critical access reimbursement has enabled us to put first-class critical access hospitals out there in rural north dakota, and they are doing well. They are serving their customers -- their customers tell me they would rather go to their hospital in their small community then go into the larger communities.
▶ 1:21:29Sen. Hoeven: It really works, so talk to me about the credit programs, and also for our farmers, the credit programs are really important as well. One of the things we have to move on is helping with rural housing. It is a big need out there. Talk to me about the health care , about hospitals. Some of the ventures for rural businesses, and also for our farmers.
▶ 1:21:58Sen. Hoeven: Those programs -- how are you going to use and expand -- and for our livestock guys, for example, for creating more opportunities for processing and that kind of plants for options -- talk to me about what you can do there. That is a powerful range of tools you have for all those uses.
▶ 1:22:23Hon. Smith: Let me take a breath and focus on which question I want to answer --
▶ 1:22:30Sen. Hoeven: Joni has been dragging you up.
▶ 1:22:36Hon. Smith: Let me talk about critical hospitals having success and acceptance among residents, and I would guess part of that is personalized care, not waiting in line for days or weeks or months.
▶ 1:23:00Hon. Smith: We had a close relative that was having some health issues, heart issues, and she could not get an appointment to get in and see a doctor for evaluation for two months in the city, and yet, she clearly had some issues.
▶ 1:23:15Hon. Smith: At least at that critical care facility, they had somebody to look at her, evaluate, and if need be, receive technical assistance from a larger facility -- maybe a long ways away, but at least that patient is getting care right away. Does not have to be a huge facility. Does not have to be a $100 million facility to do that.
▶ 1:23:41Hon. Smith: I think what you are landing on is may be a model that we could take to other areas of the country. I had a long conversation with senator marshall in kansas that had much the same type of model, and that is something that I think rural development should be fluent in, be able to discuss and be able to encourage to the different state directors.
▶ 1:24:02Sen. Hoeven: That model works and you could have a real impact out there.
▶ 1:24:10Hon. Mr. Smith: Sharing best practices is something we encouraged all the time on my position on the board. As far as businesses, any business that supports the rural economy, obviously, we've got to be involved in.
▶ 1:24:27Hon. Mr. Smith: I mentioned earlier livestock and how we have seen a real explosion of branded farmer ranch to consumer products to farmers.
▶ 1:24:47Sen. Hoeven: Probably in arkansas. Don't you think?
▶ 1:24:52Hon. Mr. Smith: I'm sure chairman boozman would agree with that.
▶ 1:24:57Sen. Hoeven: We have them in north dakota, too.
▶ 1:25:00Hon. Mr. Smith: Part of it is you cannot go to those huge packing plants and get the kind of consumer service you need. I think that is part of why we have had good success -- maybe just a start, but good success in supporting that livestock industry and those endeavors, and again, it is value-added.
▶ 1:25:20Hon. Mr. Smith: Those producers, I'm hoping, and I hope get a good premium for their hard work that takes marketing and specialized plans to be able to turn out that product.
▶ 1:25:32Sen. Hoeven: I really appreciate the answers, and I think it is exciting opportunities, and I think you nailed it.
▶ 1:25:41Hon. Mr. Smith: Thank you, senator. Thank you for the questions.
▶ 1:25:51Chair Boozman: Thank you for appearing before the committee. I think you can tell how important this is for rural america, for our nation. I also want to thank members for participation today in this important hearing. As always, our staff did a tremendous job making it happen. The record will remain open for two business days. Today's hearing is adjourned.