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USDA Secretary Tom Vilsack testified at a hearing before the Senate Ag Appropriations Subcommittee to review the agriculture department’s 2025 budget. While the secretary spoke on a wide range of issues, his opening comments did not include trade. However, Sen. John Hoeven (R-ND), who also serves as Ranking Member of the Senate Ag Committee, pressed the issue while questioning Vilsack.
“We’ve always had a surplus in ag trade. We have a deficit right now on ag trade,” Hoeven said.
Secretary Vilsack said, and Hoeven agreed, that part of the issue was a strong dollar. The secretary said the world economy also played a part.
“However, this is an interesting statistic. Maybe it’s just coincidental. Our trade deficit for the first three months of fiscal year 2024 was $6 billion. We bought $6 billion more than we sold,” Vilsack said. “China bought $6 billion less.”
“I knew that’s where you were going. Coincidence? No,” Hoeven responded.
“Look, if you continually wrap your number one customer, it’s not surprising that your number one customer sends you a signal about ‘hey, we’re paying attention.’ What has to happen, I think, is a much more nuanced and sophisticated conversation about China,” the Secretary retorted. “What’s a greater risk, Chinese ownership of farmland or the fact that Wall Street investment banks own a third of the largest farm operations in the country?”
Senator Hoeven pressed the issue once more and stated, “Again, we need to be tougher on trade.”
Secretary Vilsack said there had been $20 billion in trade wins. “They’re doubles and singles. They’re not home runs, but the cumulative impact and effect is important,” he said. He added that USDA programs like the Regional Agricultural Promotions Program (RAPP) were designed to create new markets in agriculture.