In a letter to Glickman sent today, Grassley said the recent sharp decline in hog prices and its particularly negative impact on family farmers highlight the need for the administration to aggressively work with trading partners to achieve positive results for U.S. pork producers. "I've talked with many Iowa pork producers this winter who are concerned about the smaller producers who are now selling hogs below their cost of production and may not have the financial capacity to withstand the current price environment," Grassley said.
To address this situation in the short-term, Grassley asked Glickman to implement government purchases of pork for domestic feeding programs, the Emergency Food Assistance program and the P.L. 416 Food for Peace program. "The Secretary has authority to tap these existing programs. I encourage him to employ them to help achieve short-term price stability and restore confidence in the live hog market," Grassley said.
More importantly, Grassley said the long-term viability of the U.S. pork industry depends on opening foreign markets to exports. "If our rural communities are to continue to reap the benefits of production and processing of value-added products like pork, new markets must be found for these products," said Grassley, who serves as Chairman of the International Trade Subcommittee in the U.S. Senate.
Specifically, Grassley urged the U.S. Department of Agriculture to aim at five goals, including:
Grassley pledged to work with Glickman and in Congress in the year ahead to help achieve these goals. "Free and fair trade is key to a strong economy in Iowa. New markets around the world for Iowa products help create good-paying jobs and enhance the viability of the family farm," he said.