In a six-minute hearing, the Senate Agriculture Committee approved a bill to reauthorize federal inspection of export grain and the requirement that meatpackers report purchase prices of cattle, hogs and sheep. The five-year reauthorization now goes to the Senate floor for a vote.The House approved separate bills to reauthorize the programs on June 9 by voice votes. Statutory authorization for the programs expires on Sept. 30.
The bill adds a requirement that the USDA take immediate action if there is an interruption of inspection of grain at export terminals, either by dispatching federal inspectors or inspectors from state agencies empowered to conduct the work. Lawmakers added the language in response to a 36-day lapse in Vancouver, Washington, during a labor dispute in 2014. The Washington State Agriculture Department, authorized by the USDA to carry out inspections, withdrew its inspectors on grounds it could not assure their safety. The USDA said it could not dispatch federal inspectors for the same reason.
“The Department of Agriculture has a statutory obligation to inspect grain exports, and we won’t let this responsibility lapse again,” said Agriculture chairman Pat Roberts.
Along with extending the life of the mandatory price-reporting program, the Senate bill expands its scope over hog and lamb transactions. The reports of “spot” prices at stockyards around the country often are used in calculating the price for cattle and hogs produced under contract for a packer. USDA publishes reports twice a day on sale prices.
The National Pork Producers Council, speaking for hog farmers, said it was disappointed the Senate bill did not follow the House lead and elevate the price-reporting duties to an essential government service. The USDA stopped reporting the data during the government shutdown in fall 2013, which affected the hog markets. NPPC said “we’ll continue to work to get that important provision added.”
In a statement, two grain-trade groups, the National Grain and Feed Association and the North American Export Grain Association, said the bill underlined the USDA’s duty to provide “uninterrupted, reliable and consistent” grain inspection. The groups said they will press in the future for the use of private-sector inspectors to take over the government’s role if inspections are disrupted.