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Opening New Export Markets for Iowa Farmers and Producers through Cold-Chain Infrastructure Investments

September 5, 2023
Op-Ed

Food production is an arduous industry. Between high input costs and regulatory barriers to economic uncertainty and supply-chain bottlenecks, farming has only become more difficult than it already is, pinching our producers’ bottom lines and making every dollar earned worth less. However, in Iowa, even as other states attempt to regulate how we raise our animals, our farmers don’t complain. They work long hours on tight budgets to feed our country and the world. In Congress, I remain committed to writing and passing sound policies that help lower costs for our producers and promote beneficial trade agreements for our farmers.

In my conversations with my 60-member Agriculture Advisory Board and during town halls with local farmers and producers on my Feenstra Agriculture Tour, I have repeatedly heard that opening new export markets for Iowa agricultural goods is a top priority for our agriculture community. Per the data, this is no surprise. In 2021, Iowa exported over $14.3 billion worth of agriculture products, including $3.7 billion in soybeans, $3.1 billion in corn, $2.7 billion in pork, and $592 million in beef – cementing our status as the second largest exporter of agriculture goods in the country. In the same year, the top three markets for American pork – China, Japan, and Mexico – accounted for 63% of U.S. exports, and the top three markets for beef – Japan, South Korea, and China – accounted for 60% of U.S. exports. These figures – while not exhaustive – underscore the need to maintain these trading partners, but also establish new markets to build a resilient supply chain for Iowa producers.

However, when it comes to exporting perishable goods, an alarming trend emerges. According to global estimates, nearly 1.3 billion tons of food – or one third of all food production worldwide – are lost to waste every year at a cost of roughly one trillion dollars. This is a particularly problematic issue in developing countries that lack the required cold-chain storage facilities to keep perishable foods like pork, beef, turkey, chicken, and other specialty grains safe for consumption and prepared for transportation. Without robust market development and critical cold-chain infrastructure, our producers are significantly limited in their ability to export their high-quality products around the world. For these reasons and many more, I’m working hard to ensure that we are expanding into new and developing markets to benefit our Iowa producers. By growing the number of export markets that have necessary export infrastructure, Iowa’s high-quality products can be unleashed to help feed the world.

Teaming up with my colleagues on both the House Agriculture Committee and the House Ways and Means Committee, I introduced legislation – the Fortifying Refrigeration Infrastructure and Developing Global Exports Act – that will help develop much-needed infrastructure to ship our beef, chicken, turkey, pork, grains, specialty crops, and other perishable goods worldwide. This legislation – which I’ve named the FRIDGE Act for short – would direct the U.S. Department of Agriculture to negotiate contracts to deliver needs assessments, training, and other technical assistance to enhance infrastructure construction – including cold chain storage – in new and developing foreign markets.

Specifically, my bill would add a section promoting infrastructure in the Foreign Market Development (FMD) program and authorizing funds at $1,000,000 annually from Fiscal Year 2024 to 2028 for export infrastructure, including cold-chain facilities. Should any leftover funds remain, they will automatically be placed into the main FMD program for the benefit of all producers and exporting organizations. In this same vein, I am also a cosponsor of the Agriculture Export Promotion Act, which would double funding for FMD and the Market Access Program (MAP); the two vital trade programs within USDA. Both programs promote Iowa agriculture exports in foreign countries and ensure that our farmers receive top dollar for their goods. This legislation remains a top priority for me, which I hope to see included in the Farm Bill or independently considered on the floor of the U.S. House of Representatives.

Expanding cold-chain storage and other vital exporting infrastructure will afford our producers unfettered access to new and developing global markets that are eager to purchase Iowa agricultural goods. My FRIDGE Act is a must-pass investment in trade expansion and food security that will not only benefit our producers, but also millions of families in our country and across the globe. While the Biden Administration refuses to negotiate new trade agreements to help our farmers access foreign markets and China quickly outpaces us in establishing free-trade agreements with the outside world, I will continue to do everything in my power to support our producers and end our reliance on only a handful of export markets.

This op-ed was originally published in the Carroll Times Herald on August 6, 2023.

Issues:Agriculture