Source: US HOUSE AG COMMITTEE, 4/28/16

Today, Rep. Jackie Walorski (IN-2), Chairwoman of the House Agriculture Committee’s Subcommittee on Nutrition, held a hearing to examine the connection between U.S. farm policy and the stability of food prices for consumers. This is the fourth hearing in the Focus on the Farm Economy series, where each of the six subcommittees are reviewing the state of the farm economy from the perspective of the subcommittee. Members heard from a panel of witnesses who explained the share of the food dollar that goes to each segment of the food supply chain, the role U.S. farm policies play in stabilizing retail food prices, and the potential impact that shifts in food prices have on consumers.

“Strong farm policy plays a critical role in providing a stable supply of affordable food for consumers. While the average American spends less than 10 percent of their income on food, low-income households spend upwards of 35 percent of their income on food, making them more susceptible to swings in food prices. As we begin work on the next farm bill, today’s conversation will play a critical role in helping us make informed decisions about good farm policies that impact both producers and consumers,” said Subcommittee Chairwoman Walorski.

“Everyone who eats is connected to the agriculture industry, and it is crucial we understand the impact the collapse in net farm income is having on both producers and consumers. Right now the farm economy is struggling due to a host of factors, not the least of which are low commodity prices.  During these hard times, a strong farm safety net allows farmers and ranchers to continue producing healthy food at affordable and stable prices that we as American consumers count on being able to purchase to feed ourselves and our families,” said Agriculture Committee Chairman K. Michael Conaway.

Written testimony provided by the witnesses below. .
Witness List:
Dr. Jason Henderson, Associate Dean and Director of Purdue Extension, College of Agriculture, West Lafayette, IN

Dr. Ephraim Leibtag, Assistant Administrator, Economic Research Service, U.S. Department of Agriculture, Washington, DC

Mr. Andrew Harig, Senior Director of Sustainability, Tax, and Trade, Food Marketing Institute, Arlington, VA

Opening Statement by Subcommittee on Nutrition Ranking Member James P. McGovern

--As Prepared for Delivery—

“Thank you, Chairwoman Walorski, and thank you to the witnesses. I look forward to hearing from each of you. 

“Today’s topic – food prices – is an important one. And it’s one that we really haven’t discussed much in previous hearings. It’s important for us – as Members – to understand the entirety of the food system. It’s a complex system but, by and large, it’s an efficient and effective system. It really is a testament to the resiliency and hard work of our farmers and ranchers, processors, and retailers that we have such a strong farm economy, stable and affordable food prices, and such a depth of choice and diversity when it comes to the food we eat. 

“But it’s important to keep in mind that what many of us here often take for granted – easy access to big supermarkets, specialty markets and even farmers markets – is not available to everyone in this country, particularly in low-income and rural communities. And low-income households are particularly sensitive to even minor fluctuations in food prices as they think about how to stretch their food dollar further. 

“You know, during the last farm bill, there were attempts to split the nutrition title – and SNAP – from the rest of the farm bill. But I always remind people that it’s our farmers who grow the food we eat. And you can only use SNAP to buy food. So there is a close link between our farmers and our federal food assistance programs. It’s important that we recognize that relationship. 

“With that, I look forward to your testimony and I yield back.”