1 00:00:02,440 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. The US Secretary of Agriculture, 2 00:00:08,760 --> 00:00:11,719 Speaker 1: Tom Vilsack, We thank you so much for joining us 3 00:00:11,800 --> 00:00:13,800 Speaker 1: on a critical issue here. When you think about the 4 00:00:13,840 --> 00:00:17,880 Speaker 1: issue of inflation and as it pertains to food prices 5 00:00:17,960 --> 00:00:21,800 Speaker 1: farms across in America, how are you navigating it well? 6 00:00:21,840 --> 00:00:24,079 Speaker 2: First of all, is to understand, in terms of food inflation, 7 00:00:24,120 --> 00:00:27,120 Speaker 2: there's a significant difference between what people are paying at 8 00:00:27,120 --> 00:00:30,640 Speaker 2: the grocery store concerning in relationship to what they're paying 9 00:00:30,880 --> 00:00:33,199 Speaker 2: at restaurants. I think what you'll find is if you 10 00:00:33,240 --> 00:00:36,560 Speaker 2: go deeper into those numbers, that the opportunities at grocery 11 00:00:36,560 --> 00:00:40,000 Speaker 2: stores are improving significantly, but it is at restaurants where 12 00:00:40,000 --> 00:00:43,280 Speaker 2: we're seeing still a bit of high inflation. So you 13 00:00:43,320 --> 00:00:46,800 Speaker 2: have to distinguish between that number one number two. It 14 00:00:46,880 --> 00:00:49,360 Speaker 2: is true that commodity prices have come down, but understand 15 00:00:49,360 --> 00:00:52,920 Speaker 2: that farmers only get anywhere from fifteen to twenty cents 16 00:00:53,000 --> 00:00:55,040 Speaker 2: or so for every food doll it's been at the 17 00:00:55,040 --> 00:00:57,640 Speaker 2: grocery store, so commodity prices don't have as much of 18 00:00:57,680 --> 00:01:01,480 Speaker 2: an impact on food prices as you might think. The 19 00:01:01,840 --> 00:01:05,200 Speaker 2: issue with avian influenza clearly a component of the egg 20 00:01:05,240 --> 00:01:08,600 Speaker 2: price increase. Well, the good news is we're not seeing 21 00:01:08,600 --> 00:01:13,959 Speaker 2: anywhere near the level of HBAI that we saw last year. 22 00:01:14,360 --> 00:01:16,240 Speaker 2: The bad news is that we still continue to grapple 23 00:01:16,280 --> 00:01:17,520 Speaker 2: with it. 24 00:01:17,040 --> 00:01:20,520 Speaker 1: If not inflation. What is the biggest challenge faced by 25 00:01:20,600 --> 00:01:21,679 Speaker 1: rural America today? 26 00:01:22,720 --> 00:01:25,399 Speaker 2: I think the biggest challenge long term is the loss 27 00:01:25,400 --> 00:01:30,000 Speaker 2: of farms and farmland. Since nineteen eighty one, we've seen 28 00:01:30,080 --> 00:01:33,800 Speaker 2: a loss of four hundred and seventy seven and seventy 29 00:01:33,800 --> 00:01:37,319 Speaker 2: farms in America. That's the entire equivalent of farms in 30 00:01:37,319 --> 00:01:44,400 Speaker 2: North Dakota, South Dakota, Michigan, are excuse me, Wisconsin, Minnesota, Illinois, Iowa, Nebraska, Colorado, Missouri, 31 00:01:44,440 --> 00:01:47,120 Speaker 2: and Oklahoma. One hundred and fifty one million acres of 32 00:01:47,200 --> 00:01:49,320 Speaker 2: land that was in farming that's no longer in farming. 33 00:01:49,520 --> 00:01:51,280 Speaker 2: And it's more and more difficult for small and mid 34 00:01:51,320 --> 00:01:54,400 Speaker 2: sized farming operations to stay in the business. And that's 35 00:01:54,440 --> 00:01:58,280 Speaker 2: why the Bidy administration is focused on creating new revenue streams, 36 00:01:58,560 --> 00:02:01,320 Speaker 2: new ways of farmers, in addition to selling commodities, can 37 00:02:01,360 --> 00:02:04,320 Speaker 2: make a living. And we're excited about the opportunity that 38 00:02:04,320 --> 00:02:07,120 Speaker 2: that now presents for our farmers to be entrepreneurial, but 39 00:02:07,200 --> 00:02:10,639 Speaker 2: obviously it's going to take some time for those opportunities 40 00:02:10,680 --> 00:02:13,560 Speaker 2: to sort of filter down into the countryside. But we're 41 00:02:13,600 --> 00:02:14,760 Speaker 2: excited about where it's headed. 42 00:02:15,080 --> 00:02:17,520 Speaker 1: How do you see about the face of farming changing 43 00:02:17,680 --> 00:02:19,960 Speaker 1: in this country? If you think about it, farmers expected 44 00:02:20,000 --> 00:02:23,880 Speaker 1: to plant almost five million less acres of corn in 45 00:02:23,919 --> 00:02:27,600 Speaker 1: the United States, while soybean is expected to increase. Do 46 00:02:27,639 --> 00:02:30,359 Speaker 1: you see corn losing its status as the king of 47 00:02:30,400 --> 00:02:33,160 Speaker 1: crops in America? How do things change moving forward? 48 00:02:33,720 --> 00:02:35,760 Speaker 2: Not necessarily, but I think what you're going to see 49 00:02:35,760 --> 00:02:39,520 Speaker 2: our new use is those for corn and soybeans, sustainable 50 00:02:39,520 --> 00:02:41,960 Speaker 2: aviation fuel being one of those opportunities. I think you're 51 00:02:42,000 --> 00:02:45,639 Speaker 2: going to see agricultural waste become its own commodity. Instead 52 00:02:45,639 --> 00:02:48,400 Speaker 2: of being over applied on land that causes some serious 53 00:02:48,400 --> 00:02:50,919 Speaker 2: issues with water quality, We're now going to be converting 54 00:02:50,919 --> 00:02:53,800 Speaker 2: that into a brand new series of bio based products, 55 00:02:53,840 --> 00:02:56,440 Speaker 2: which creates a whole new industry, whole new opportunity for 56 00:02:56,480 --> 00:02:59,760 Speaker 2: processing and manufacturing in rural places. We're going to see 57 00:03:00,080 --> 00:03:04,040 Speaker 2: farmers basically be energy producers. We're seeing a significant move 58 00:03:04,080 --> 00:03:06,799 Speaker 2: to renewable energy on the farm, not only to reduce 59 00:03:06,840 --> 00:03:10,320 Speaker 2: the cost of electricity for the farming operation, but to 60 00:03:10,320 --> 00:03:12,880 Speaker 2: produce electricity for their friends and neighbors. You're going to 61 00:03:12,880 --> 00:03:15,480 Speaker 2: see a significant transition, and finally, you're going to see 62 00:03:15,480 --> 00:03:18,480 Speaker 2: a move away from just relying on commodity markets to 63 00:03:18,600 --> 00:03:21,480 Speaker 2: more local and regional food markets where the farmer doesn't 64 00:03:21,520 --> 00:03:24,000 Speaker 2: get twenty cents of every food dollar, but gets fifty 65 00:03:24,000 --> 00:03:25,760 Speaker 2: to seventy five cents of every food dollar. 66 00:03:26,720 --> 00:03:28,519 Speaker 1: As you think about the changes ahead, it begs the 67 00:03:28,600 --> 00:03:31,000 Speaker 1: question about what comes out of Congress. Well, we see 68 00:03:31,040 --> 00:03:34,320 Speaker 1: a farm bill out of Congress this year, and would 69 00:03:34,320 --> 00:03:36,520 Speaker 1: it come before or after the election. 70 00:03:37,720 --> 00:03:39,720 Speaker 2: Well, I continue to be optimistic that we can get 71 00:03:39,720 --> 00:03:42,280 Speaker 2: to yes in terms of a farm bill. Obviously, there's 72 00:03:42,280 --> 00:03:44,520 Speaker 2: some serious issues in terms of how you pay for it. 73 00:03:45,000 --> 00:03:46,480 Speaker 2: I think it's fair to say we're not going to 74 00:03:46,480 --> 00:03:49,400 Speaker 2: pay for it through our reductions and our commitment to nutrition, 75 00:03:49,800 --> 00:03:53,400 Speaker 2: for our commitment to conservation. Having said that, it's not 76 00:03:53,480 --> 00:03:56,120 Speaker 2: just the farm bill that is important. The budget is important. 77 00:03:56,200 --> 00:03:58,400 Speaker 2: We're certainly happy that we now have a budget and 78 00:03:58,440 --> 00:04:02,720 Speaker 2: hope that we don't face a serious situation with shutdowns 79 00:04:02,720 --> 00:04:05,320 Speaker 2: in the future. We have to have the flexibility to 80 00:04:05,440 --> 00:04:08,280 Speaker 2: use tools like the Commodity Credit Corporation, which you're helping 81 00:04:09,000 --> 00:04:11,400 Speaker 2: get us through a number of disasters that we face. 82 00:04:11,680 --> 00:04:14,240 Speaker 2: And we also have to have that conservation money under 83 00:04:14,240 --> 00:04:16,279 Speaker 2: the Inflation Reduction Act. If you take all four of 84 00:04:16,320 --> 00:04:19,200 Speaker 2: those tools working in concert, we can create I think, 85 00:04:19,240 --> 00:04:21,479 Speaker 2: a better opportunity for farms across America. 86 00:04:21,520 --> 00:04:23,919 Speaker 1: There's the Farm Bill, but there's also just a host 87 00:04:23,920 --> 00:04:26,400 Speaker 1: of issues that farmers have been facing across the issue 88 00:04:26,440 --> 00:04:29,600 Speaker 1: agriculture also being a key battleground when you think about 89 00:04:29,600 --> 00:04:32,520 Speaker 1: the election coming up just in a number of months. Here, 90 00:04:33,000 --> 00:04:38,280 Speaker 1: they have soeign costs, bureaucracy, European Union, regulations, in the 91 00:04:38,320 --> 00:04:41,240 Speaker 1: Green Deal. There's a whole host of things here. How 92 00:04:41,320 --> 00:04:43,880 Speaker 1: do you think the farming community is going to influence 93 00:04:43,920 --> 00:04:45,040 Speaker 1: the next election cycle? 94 00:04:45,720 --> 00:04:49,240 Speaker 2: Well, I can't really answer a question about politics on 95 00:04:49,279 --> 00:04:52,320 Speaker 2: this interview, but what I will say is that American 96 00:04:52,360 --> 00:04:56,760 Speaker 2: agriculture is offering an option or a different approach to 97 00:04:56,960 --> 00:05:01,640 Speaker 2: climate smart agriculture. Europe has seen its way to essentially 98 00:05:01,680 --> 00:05:05,040 Speaker 2: create a regulatory system which farmers are resisting in Europe. 99 00:05:05,240 --> 00:05:07,880 Speaker 2: Here in the United States, it's not a regulatory system, 100 00:05:07,880 --> 00:05:11,239 Speaker 2: it's really a market based, voluntary system. Our climate smart 101 00:05:11,240 --> 00:05:14,880 Speaker 2: agriculture activities now involving one hundred and thirty six projects 102 00:05:14,880 --> 00:05:18,360 Speaker 2: across America, over one hundred and two commodities involved two 103 00:05:18,480 --> 00:05:22,640 Speaker 2: hundred and three practices being incented, new market opportunities being created. 104 00:05:22,880 --> 00:05:26,440 Speaker 2: So it's a voluntary, market driven, incentive basis based system 105 00:05:26,640 --> 00:05:29,120 Speaker 2: which is much more popular and much more doable. So 106 00:05:29,160 --> 00:05:31,600 Speaker 2: I think there is a contrast between how we're approaching 107 00:05:32,000 --> 00:05:34,279 Speaker 2: the challenges of the future and how our friends in 108 00:05:34,320 --> 00:05:34,839 Speaker 2: Europe are. 109 00:05:35,160 --> 00:05:38,320 Speaker 1: Given that agriculture is a key battleground, regardless of whether 110 00:05:38,320 --> 00:05:40,160 Speaker 1: you could talk about the politics behind it or not, 111 00:05:40,279 --> 00:05:43,680 Speaker 1: how much pressure do you feel to appease this community 112 00:05:43,760 --> 00:05:45,279 Speaker 1: or at least meet them on their needs to the 113 00:05:45,279 --> 00:05:47,799 Speaker 1: rest of this year, what exactly is being done. 114 00:05:48,240 --> 00:05:51,000 Speaker 2: The pressure I feel is in the loss of farms, 115 00:05:51,560 --> 00:05:54,120 Speaker 2: knowing that five hundred and seventy seven thousand, nine ers 116 00:05:54,120 --> 00:05:56,720 Speaker 2: and seventy families had to sit around a coffee table 117 00:05:56,760 --> 00:06:00,400 Speaker 2: and acknowledge that they just couldn't make it work. Farmers 118 00:06:00,440 --> 00:06:01,680 Speaker 2: they want to farm and they want to pass it 119 00:06:01,720 --> 00:06:04,400 Speaker 2: on to the next generation. When that doesn't happen, it 120 00:06:04,480 --> 00:06:06,919 Speaker 2: really impacts and affects the mental health of those individuals 121 00:06:07,000 --> 00:06:09,159 Speaker 2: as well. So that's what keeps me up at night, 122 00:06:09,600 --> 00:06:11,560 Speaker 2: and that's why I'm excited about the opportunities that this 123 00:06:11,600 --> 00:06:15,320 Speaker 2: administration is providing for farmers to be entrepreneurial, to create 124 00:06:15,360 --> 00:06:17,520 Speaker 2: more revenue streams so that they have that opportunity to 125 00:06:17,560 --> 00:06:19,800 Speaker 2: sit at that coffee table and say we can make 126 00:06:19,839 --> 00:06:21,920 Speaker 2: a go of it, and son or daughter or grandchild, 127 00:06:22,080 --> 00:06:23,840 Speaker 2: you can come back and you can farm. You can 128 00:06:23,880 --> 00:06:24,680 Speaker 2: do what we love to do. 129 00:06:24,800 --> 00:06:27,800 Speaker 1: We started this conversation talking about inflation price pressures that 130 00:06:27,880 --> 00:06:31,640 Speaker 1: farmers and consumers are facing. You talked about the margins 131 00:06:31,640 --> 00:06:33,640 Speaker 1: a little bit here. You also talked about the idea 132 00:06:34,040 --> 00:06:36,640 Speaker 1: that prices are getting a little bit better, they're were lowering. 133 00:06:36,920 --> 00:06:39,960 Speaker 1: How much concern do you have about a reacceleration of 134 00:06:40,000 --> 00:06:43,159 Speaker 1: inflation in any regard and are you doing anything to 135 00:06:43,200 --> 00:06:44,120 Speaker 1: protect against it. 136 00:06:45,200 --> 00:06:47,640 Speaker 2: Well, we are helping to lower the costs on the 137 00:06:47,680 --> 00:06:51,919 Speaker 2: farm by encouraging farmers to embrace renewable energy through Renewable 138 00:06:52,040 --> 00:06:55,760 Speaker 2: Energy for America program. Over six thousand grants already been 139 00:06:55,760 --> 00:07:00,000 Speaker 2: issued by this administration to help farmers reduce their costs 140 00:07:00,200 --> 00:07:03,560 Speaker 2: of power. We're working on the fertilizer issue. We've already 141 00:07:03,560 --> 00:07:07,919 Speaker 2: funded forty two projects that will reduce the need for 142 00:07:07,920 --> 00:07:12,000 Speaker 2: foreign fertilizer. We reduce the opportunities for the use of fertilizer, 143 00:07:12,040 --> 00:07:14,360 Speaker 2: making more efficient use of it. So we are helping 144 00:07:14,360 --> 00:07:17,400 Speaker 2: farmers to lower costs. At the same time, as I said, 145 00:07:17,440 --> 00:07:20,560 Speaker 2: we're creating new revenue streams for those farmers. As is 146 00:07:20,600 --> 00:07:24,000 Speaker 2: the case with average Americans, we're seeing wages up. While 147 00:07:24,000 --> 00:07:26,120 Speaker 2: we want to control inflation, we also want to make 148 00:07:26,120 --> 00:07:30,120 Speaker 2: sure that workers farmers have sufficient income to be able 149 00:07:30,160 --> 00:07:32,680 Speaker 2: to support their families. And this is the President's theory 150 00:07:33,000 --> 00:07:35,280 Speaker 2: of a bottom up and middle oid economy, and I 151 00:07:35,320 --> 00:07:37,680 Speaker 2: think with the job growth and wages going up, I 152 00:07:37,720 --> 00:07:39,360 Speaker 2: think we're beginning to see the benefits of that. 153 00:07:40,480 --> 00:07:43,320 Speaker 1: US Secretary of Agriculture, Tom Vilsack, thank you for joining us. 154 00:07:43,320 --> 00:07:47,080 Speaker 1: Certainly a critical time in Congress when it comes to farming.