GRASSLEY: Between high inputs, low prices, and a virus scare that the national media has inaccurately named -- and that that's H1N1 -- with all this, the pork industry has been devastated. The Department of Agriculture has made several promising attempts to try to get ahead of the problem, but every day, I continue to hear from independent producers who may be out of business within a few months if emergency steps aren't taken.
In light of the unprecedented hit taken by one pork industry and the importance of our economy that that industry is, I'm asking the Department of Agriculture for action on a few fronts.
First, I'm urging the department to purchase, through Section 32 relief, an additional $100 million of pork for the federal food program. And, secondly, I'd like to see the department work with other federal agencies to help address swine disease surveillance on farms, related diagnostic and vaccine development, and this way, give the hog industry some support.
And then, third, it's important that the department help expand exports of U.S. pork, particularly, get Colombia, Panama, and South Korea free trade agreements approved and remove China's nonscientific restriction on U.S. pork that was imposed of H1N1.
I appreciate what the Department of Agriculture has done thus far. This is a dire situation for many independent producers. We need continue to look for new ways of helping.
Dan Looker?
QUESTION: Good morning, Senator. Just to follow up on this, what kind of leverage do you think we can have on China to get them to change their position on U.S. pork imports? They seem to have a lot of power over us because of our financial situation.
GRASSLEY: When I answer your question, I'm not finding fault with the administration because I think I'm a little frustrated with what China does a lot of times, and some people would infer and may be sometimes I would even infer that what the administration did on tires might not be the right thing to do if you're in an environment where you're trying to promote free trade.
But I do think that the situation is probably a little more difficult for us right now on trying to get rid of the H1N1 embargo of our pork there in China because they're talking about taking further action against other exports of our products to China because of what we're -- what we did on the tires.
So I think we're a little bit weak, but all you can do is what we've normally done; and that is try to follow through with the WTO. And we're going to go to the WTO the extent to which they're violating rules, and we can do that with a clear conscience because the organization of scientists in Paris, OIE, they've said that our pork is safe.
And so there's an unscientific embargo of our pork into China, which is against the WTO rules.
Tom Rider?
QUESTION: Good morning, Senator.
Senator, yesterday, Secretary Tom Vilsack was in South Dakota, and he did tell us that he's intending on going to China in a couple of weeks to press them on the embargo issue. Any suggestions that you have for what he should tell them or what he should do?
GRASSLEY: No, I don't. But he will be a good spokesman for us, and I think sending our secretary of agriculture to bring those issues up is at some of the highest levels you can do it in government, and it shows a good-faith effort on this administration to try to solve this problem for -- which, in turn, would help our pork producers.
Tom Steever?
QUESTION: Good morning, Senator.
I see the GAO says that the ethanol production tax credit should be revised. And you have warned that that, perhaps, is not a good idea or at least not to end it. What do you have to say about that?
GRASSLEY: Well, it depends on what the revision is, but if they're talking about the tax credit itself, except to making sure that farmers benefit from it directly as opposed to the big oil companies, would be the one thing I would put at the top of the agenda.
Beyond that, I think, to make clear, when you change the import duty, that do we want to have the American taxpayers subsidizing ethanol coming in from Brazil which would seem to me to be -- importation is one thing -- but subsidizing it is quite another thing.
And the extent to which they haven't already used the import duties -- import free -- importation that can come from the CBI, I think, is also a major issue that ought to be in the forefront before we decide to change that.
And, also -- well, let's go onto the -- did you have another question, Tom?
QUESTION: No, I think that'll do it. Thank you.
GRASSLEY: OK. Bob Quinn?
Dan Skelton?
QUESTION: Good morning, Senator.
Tom mentioned that Secretary Vilsack was in South Dakota yesterday. While there, he said USDA intends to look at the price support and marketing programs to see if changes there would help stabilize the dairy price -- the dairy prices of the dairy industry. Do you have any specific suggestions for USDA in that regard?
GRASSLEY: Well, don't forget that there is the money that we appropriated that is being somewhat, in a little different way, retained in the conference report that's going to go to the president. I think that that would help.
And I think what you're talking about makes sense because the USDA is putting together a dairy advisory committee that ought to and up with something and probably be more realistic way of doing it.
QUESTION: What Secretary Vilsack was referring to was trying to get away from the boom-or-bust cycle, but there needed to be changes.
GRASSLEY: Well, I hope that he -- that it doesn't lead us to a government-managed dairy program reminiscent of the Brandon plans of the 1940's and '50s. That's the only thing I would urge against.
Anything else it does -- stabilization that isn't having the government interfere with the marketplace except in an emergency situation, I don't think we should detract from that.
Chris Clayton?
QUESTION: No questions, Senator.
GRASSLEY: Stacia Cudd?
Gary in Arkansas?
QUESTION: Senator, get can back to China, during a hearing yesterday, industrial groups raised a question of Chinese currency manipulation and argued the administration should seek trade action on that front. Is that an area we can pursue, or should we leave it alone?
GRASSLEY: No, we should pursue that. And don't forget, over the years of 2007 and 2008 -- or maybe going back to 2006 -- Grassley, Lindsey Graham, Senator Schumer, and Baucus have all been involved in trying to get legislation passed in that direction.
It should float. And right now, if I were president of the United States, I would take advantage of the fact that China and Brazil and -- let's see, what other countries? -- probably Russia -- are trying to push to not have the dollar be the foundation of international trade because the dollar is weakened and because our economy is weak, we shouldn't expect the dollar to have such a high visibility in an international economy.
They're pushing for something else. Well, if they're pushing for something else, it seems to me that China is in a pretty intellectually dishonest position of promoting something else when the dollar floats and their currency doesn't float. And we ought to be pushing -- using that as an example -- why don't you put your money where your mouth is? And if you think that China ought to have a bigger role in the international economy, and particularly in promoting a currency and competition with the United States, why don't you let your own currency float?
So is further legislation necessary for the U.S. to take action against China on currency manipulation? Or would an action in the World Trade Organization be successful?
GRASSLEY: Well, you know, I'm not sure that I can answer your question on the World Trade Organization because I don't know whether they have any jurisdiction over currency even if that currency indirectly has an impact upon trade. So I don't think that that's a realistic approach.
So I would say legislation. But legislation isn't going to be an effective as if we had an administration -- and so I'd apply this to the former Bush administration as well -- if there had been a more constant drum beat about the currency -- the currency not floating, in other words.
Anybody else want to jump in?
OK. Thank you all very much.