By DOUG SCHMITZ Iowa Correspondent
WASHINGTON, D.C. – An American Soybean Association (ASA) director recently testified before the U.S. Senate Agriculture Committee during a hearing on the reauthorization of the U.S. Grain Standards (USGSA) Act, emphasizing what he called the critical role the law has in supporting U.S. agricultural exports, and protecting America’s reputation as a reliable supplier. “Our grain standards, backed by the force and weight of the U.S. government, are one of the strongest reputational enhancements available to U.S. soybean farmers,” Brandon Wipf, a fourth-generation Huron, S.D., soybean farmer, told the committee July 29 concerning the act, set to expire Sept. 30. “The U.S. soybean industry has a profound, positive impact on the U.S. economy,” he said. “We have long been U.S. agriculture’s number one export crop, and a by-the-numbers look demonstrates the value of the soybean industry to our domestic economic health.” He added, “The USDA reported 86 million acres of soy were harvested in 2024, with production of 4.4 billion bushels. Soybean production accounts for more than $4 billion in wages and over $80 billion in economic impacts, according to a study by the United Soybean Board/Soy Checkoff, and the National Oilseed Processors Association.” He said, “This economic impact does not include secondary soy markets and supporting industries like biofuels, grain elevators, feed mills, ports, rail, refining, barges, etc., which bring the national total economic impact of the soybean value chain to a significant $124 billion. “Market access and relationship maintenance would not be possible if it were not for trusted and reliable grain inspection and marketing efforts undertaken by the USDA Agricultural Marketing Service’s Federal Grain Inspection Service (FGIS) as authorized by the U.S. Grain Standards Act of 1916, since amended,” he said. “The act authorized FGIS to establish official marketing standards for certain grains and oilseeds, including soybeans, corn, oats, wheat and sorghum, among others,” he added. “Prior to export, inspections are carried out by FGIS or by state agencies that have delegated inspection authority by FGIS.” He said, “For most U.S. soybean farmers, our sole interaction with FGIS, designated or delegated agencies and the U.S. grain standards, are at our local grain elevator. “When I deliver my soybeans to the elevator, they are then tested, sorted and consolidated into larger lots for eventual shipment,” he said. “The grain standards determine the price a farmer receives for their soybeans at the elevator, and I know the official grain grades provide our international customers with the knowledge that the commodity they receive has been assessed for quality, purity, moisture and soundness. Should those standards no longer be in place, it would cause chaos in the markets.” Wipf told Farm World, “Most of the U.S. Grain Standards Act is permanently authorized, including mandatory inspection and weighing of exported grain, as well as authority to amend grain standards of quality. However, several provisions are set to expire on Sept. 30, 2025, including the authority to collect user fees to fund official inspections and weighing services.” Other provisions of the act set to expire Sept. 30 include: annual appropriations such as the authority for Congress to approve annual funding for the development and maintenance of grain standards and other related activities; an administrative cost cap, which is the spending limit on administrative and supervisory costs related to grain inspection; and the authorization for the Grain Inspection Advisory Committee to provide industry input on grain standards and inspection procedures. Wipf said, “Reauthorization of USGSA is historically a non-controversial, bipartisan effort, and we appreciate both the Senate and House Agriculture Committees’ attention to this matter during ongoing farm bill negotiations,” he said. He called on Congress to act quickly to reauthorize the law before the key provisions expire Sept. 30, noting that trusted inspection and grading systems are essential for maintaining access to global markets, especially as U.S. soybean farmers go into the 2025 harvest season. “The official U.S. grain standards help soybean farmers market their beans to international customers,” he added. “Soybeans are the largest exported commodity in the U.S., and our international customers know that with the U.S. Grain Standards – despite other changes in U.S. policy – U.S. soybeans will be the uniform high-quality, high-value product they know to expect when they enter into a contract. “This creates consistency and further enhances trust in U.S. soybean exports, and ASA looks forward to continuing to work with Congress for an on-time reauthorization of the USGSA,” he added. While Congress has yet to reauthorize the USGSA before the Sept. 30 deadline, a bill to do so – the United States Grain Standards Reauthorization Act of 2025 – was approved by the U.S. House Agriculture Committee July 22 and has moved to the full U.S. House for consideration. Mike Seyfert, National Grain and Feed Association president and CEO, commended the committee for moving the legislation forward. “This is a must-pass bill for the entire grain value chain,” he said. “It plays a vital role in facilitating the movement of U.S. grain to domestic and global markets.” |