Grassley Stands Up for Iowa Farmers, Calls Out Biden-Harris Ag Failures

Grassley Stands Up for Iowa Farmers, Calls Out Biden-Harris Ag Failures

Farm profitability fell $22 billion during Biden-Harris administration.

BUTLER COUNTY, IOWA - U.S. Sen. Chuck Grassley (R-Iowa), a lifelong family farmer and a member of the Senate Agriculture Committee, is sharing Iowa farmers' concerns regarding the Biden-Harris administration's approach to agriculture, energy and trade.

"Farmers are struggling to stay afloat thanks to falling profitability, sky high input costs and burdensome regulations," Grassley said of his letter to President Biden and Vice President Harris. "In order to forge a better future for farmers, Washington needs to listen to the real-world experience of those with dirt under their fingernails. I'm demanding the Biden-Harris administration wake up to the challenges our farmers are facing."

• Excessive and unconstitutional regulations, such as the failed Waters of the United States (WOTUS) rule;
• The Biden-Harris Treasury Department's restrictive 40B Sustainable Aviation Fuel tax credit guidelines; and
• Failure to establish a comprehensive trade strategy.

Grassley is urging President Biden and Vice President Harris to prioritize agricultural issues and lend farmers a helping hand by issuing timely, science-backed guidance on the 45Z Clean Fuels tax credit and expanding market access.

Download audio of Grassley discussing his letter HERE. Read the full letter HERE and below.

Monday, October 14, 2024

Dear President Biden and Vice President Harris,

I am writing to express my concerns regarding the impact of your administration's policies on the agricultural community. As a lifelong family farmer, I know first-hand the decisions made at the federal level have far-reaching consequences. It is critical that these decisions support, rather than hinder, our farmers.

Many aspects of farming have changed over the last four years of your administration. Unfortunately, the most important aspect of farming, profitability, has declined. In 2021, net farm cash income for the United States was around $176 billion. This year, 2024, net farm cash income is estimated to be down to $154 billion. As any farmer could tell you, if you aren't profitable, you won't be farming for long. I would like to take this opportunity to address areas where I believe your administration has fallen short in supporting the agriculture sector.

First, under your administration the regulatory environment has become increasingly burdensome. Farmers and businesses alike have faced a host of new regulations that complicate their operations and drive up costs. For example, your changes to the Waters of the United States (WOTUS) rule, would have covered over 90 percent or the State of lowa and made the government involved in any land management decision for farmers, developers, and businesses such as golf courses. Thankfully, all nine Supreme Court justices agreed that the Environmental Protection Agency's expansive regulatory efforts violated the Clean Water Act.

From electric vehicle mandates to overly complicated strategies for herbicides and insecticides, farmers are concerned that these regulations will impose additional compliance costs and restrictions on their ability to manage their land effectively. This is also seen clearly in the Department of Treasury's guidance for the 40B sustainable aviation fuel tax credit. Instead of enabling farmers to benefit from science-backed farming practices that work for them, your administration's guidance restricted American farmers and benefitted foreign feedstocks. While I understand the need for sustainable practices, pushing farmers to specific farming practices can undermine the autonomy of farmers to make decisions that best suit their unique circumstances, and edge them out of new markets.

Trade policy is another area where your administration has missed the mark. The lack of new trade agreements and uncertainty around tariffs has left the United States agriculture sector with a record estimated $30.5 billion trade deficit this year. In March, I joined 21 of my Senate colleagues in a letter to Ambassador Tai and Secretary Vilsack to ask if your administration intended to pursue any new free trade agreements. As my colleagues and I expressed at that time, the increased deficit is, "exacerbated by an unambitious U.S. trade strategy that is failing to meaningfully expand market access or reduce tariff and non-tariff barriers to trade." Though your administration has acted in trade disputes and other areas, it has been based on previous trade agreements established before your administration. The lack of a comprehensive strategy to expand market access for American agricultural products has been frustrating for farmers who rely on exporting their products to sustain their livelihoods.

Lastly, I urge your administration to prioritize these important issues in the agricultural community. There are still important steps that you can take to support farmers. Issuing timely guidance on the 45Z clean fuels tax credit would help provide certainty to farmers looking to market the grain they are currently harvesting. Allowing farmers a seat at the table for 45Z guidance and reducing the complicated and unworkable structure from 40B would go a long way in ensuring farmers maintain their autonomy in farming practices.

Thank you for your attention to these important issues. I look forward to your response and hope that in the coming months you work to support our farmers who continue to contribute to the nation's food security, fuel independence, and economic stability.

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