Agriculture Secretary Sonny Perdue at the
American Farm Bureau Federation annual meeting in Nashville, Tenn., unveiled
over 100 recommendations for revitalizing rural America, including addressing
issues vital to meat processors such as labor, trade, technology and financing.
The recommendations are the work of the
Interagency Task Force on Agriculture and Rural Prosperity established by
President Donald Trump last April. Research included listening sessions in
rural areas across 30 states.
Perdue elicited applause from the group of
farmers and ranchers when he talked about the administration’s imperative to
roll back at least two regulations for every one it adds, noting the
administration has so far cut out 22 regulations for every new one on the
books.
He also said the recently passed tax reform
package would help small businesses, including family farms.
The task force report released today focused
on five areas of rural economic improvement: e-connectivity, quality of life,
rural workforce, technology and economic development.
President Donald Trump addressed the group
later in the day and signed presidential orders aimed at improving internet
connectivity infrastructure in rural areas.
Increase Access to Global Market
Addressing the group, Perdue acknowledged the
“anxiety about what is going on in trade these days” and sought to assure the
group the administration has made successful completion of the North American
Free Trade Agreement (NAFTA) renegotiations a priority.
Saying he has “great faith in President
Trump's skills as a negotiator,” Perdue predicted a fair NAFTA deal for the
farm economy.
Later, Trump told the group, "On NAFTA, I
am working very hard to get a better deal for our farmers and our
manufacturers," adding however, that, "when Mexico is making all that
money and Canada is making all that money, it is not the easiest
negotiation."
Noting that the agri-food sector accounts for
a larger share of rural employment than urban employment, the task force report
said increased agricultural exports increase rural jobs at a greater rate than
urban jobs.
In the report, the task force stated, “In the
next three years, our administration will take on challenges ranging from high
tariffs on dozens of products — including meats, dairy, rice, soy, wheat, fresh
fruit and vegetables, and more — to unscientific regulation of biotechnology
products and other goods; inappropriate use of geographical indications in ways
that shut out American producers of wines, cheeses, and other high-value
products; and escalating levels of domestic supports in large emerging
economies. We will address these through fair negotiations, use of World Trade
Organization and Free Trade Agreement dispute settlement rights, and all other
means at our disposal.”
Rural workforce
The report pointed out rural community
employment strategies including: identifying employment needs, attracting
available workers from urban and rural centers and providing the workforce with
training and education to best fill the available needs.
It suggested ways to connect rural skillsets
to jobs of the future; expand and promote apprenticeship programs; connect
veterans to underutilized training programs; improve rural access to education
and training and ensure access to a lawful, agricultural workforce, including
changes to the current H2-A visa program.
Technology and innovation
The report addressed the role of technology in
producing a safe, abundant food supply. Suggestions included: coordinate federal
farm production and food safety R&D; improve rural management of big data;
increase public acceptance of biotech products; develop a streamlined,
science-based regulatory policy for biotechnology; and enable rural uses of
unmanned technologies.
Rural financing
The report also addressed concerns about
access to capital for rural businesses as the number of small and community
banks decline, suggesting:
·
Equity Financing — Allowing new obligations in federal and state
loan and credit programs to be used to meet equity requirements, or a
first-loss-position, could help rural communities bring additional financing to
the table.
·
Debt Financing — With renewed focus and goals for agricultural and
non-agricultural lending in rural counties by both the Department of
Agriculture and Small Business Administration (SBA), SBA is able to provide
loans up to $5.5 million.
·
Bundle/Repackage Projects and Deals — A legal/finance vehicle to
bundle projects can bring the necessary scale to attract private sector
interest and take advantage of economies of scale to deliver cost savings.
·
Regional and State Collaboration — Projects can draw upon larger
revenue streams when approached regionally. There are more financing options
and deeper expertise when state wide and regional entities are involved.
The report also suggested creating a rural
prosperity investment portal to enable rural investment partnerships — public
or private — to serve as a matchmaking tool.
Groups including the National Pork Producers
Council and the National Farmers Union applauded the task force report.