STORY, FIGHTING FOR AMERICA'S
HARDLAND.
PRESIDENT TRUMP SET TO SIGN A
NEW FARM BILL LEGISLATION TODAY.
IT WILL BE THE FIRST TIME SINCE
1990 THAT A NEW FARM BILL WILL
BE PASSED IN THE SAME YEAR IT
WAS FIRST INTRODUCED.
THE $867 BILLION BIPARTISAN
LEGISLATION WILL PROVIDE A AID
FOR FARMERS HURT BY NATURAL
DISASTERS AND THE ONGOING TRADE
DISPUTE WITH CHINA.
JOINING ME NOW IS U.S.
AGRICULTURAL SECRETARY, SONNY
PERDUE.
THANK YOU FOR JOINING US.
>> GOOD MORNING, MARIE Y GLAD TO
BE WITH YOU.
MARIA:  TALK ABOUT THE FARM
BILL.
WHAT'S MOST IMPORTANT, WHAT DO
WE NEED TO UNDERSTAND MOST ABOUT
THIS?
>> I THINK, AGAIN, LET'S GIVE
THE PEACE OF MIND TO OUR
PRODUCER WHOSE HAVE TO MAKE
PLANS FOR 2019 REGARDING THEIR
CROPPING HISTORY.
IT'S AN EVOLUTIONARY BILL.
IT WAS A GOOD BIPARTISAN VOTE IN
CONGRESS.
WHILE WE DIDN'T GET EVERYTHING
THAT WE HAD HOPED TO GET IN THE
BILL, IT'S A VERY STABLE BILL
FOR AGRICULTURE AND FOR THE
CONSUMER AS WELL.
MARIA:  I WANT TO GO BACK TO THE
TARIFFS.
THERE'S A LOT OF DEBATE
THERE'S A LOT OF DEAATE
THERE'S A LOT OF DEAROE
THERE'S A LOT OF DEAROUND THE
PRESIDENT'S -- DEBATE AROUND THE
PRESIDENT'S TARIFFS.
FARMERS TOOK A HIT.
THAT'S WHY WE SEE THE BAILOUT.
SOME PEOPLE SAY THE FARMERS NEED
A BAILOUT BUT WHAT ABOUT THE
COMPANIES THAT NEED STEEL AND
ALUMINUM, WHAT ABOUT THE MEDIA
INDUSTRY, WHAT ABOUT THE BANKING
INDUSTRY.
ARE WE GOING TO BE FORCED TO
GIVE BAILOUTS BECAUSE OF THE
PRESIDENT'S TARIFFS?
>> I THINK, AGAIN, THE FARMERS
WERE DIRECTLY HIT.
THESE WERE THE MAJOR CUSTOMERS
THAT CHARGED THE RETALIATORY
TARIFFS HERE.
THEY COULDN'T PLAN FOR THAT IN
THE SPRING.
I THINK THEY'RE ENTITLED TO IT.
THE PRESIDENT FULFILLED HIS
COMMITMENT TO DO THAT.
THERE'S NOTHING PLANNED FOR 2019
REGARDING WHAT YOUR SO-CALLED
BAILOUT THERE.
I THINK IT'S ENTIRELY
APPROPRIATE FOR 2018 AS THEY SAW
MARKETS DISAPPEAR.
MARIA:  WHAT ABOUT MAKING THE
TARIFFS DISAPPEAR?
>> WE WOULD LOVE TO DO THAT.
THE TARIFFS ARE NOT INDUCED BY
THE U.S.
THESE ARE RETALIATORY TARIFFS
FROM CHINA PRIMARILY BASED ON
BAD BEHAVIOR THAT THE CHINA IS
TYING TO GET THEIR ATTENTION
ABOUT.
I THINK HE IS.
MARIA:  THEY'RE RETALIATORY
BECAUSE THE PRESIDENT INSTITUTED
TARIFFS ON THEM.
>> THAT IS TRUE.
THE FARMERS WERE CAUGHT UNAWARE.
THEY PLANTED CROPS AND LOOKED
FORWARD TO SELLING THEM TO THE
CUSTOMERS.
THAT'S HOW THAT CAME ABOUT.
MARIA:  THE TARIFFS HAVE BEEN
REALLY THIS HOT BUTTON ISSUE.
IT GOES BEYOND JUST THE FARM
BELT.
PEOPLE ARE SEEING MARGINS GET
SQUEEZED BECAUSE OF THE COST OF
THE RETALIATORY TARIFFS WHICH
COME AS A RESULT OF THE
PRESIDENT PUTTING THE TARIFFS ON
STEEL AND ALUMINUM.
IS THERE ANY CONVERSATION
HAPPENING NOW THAT THE PRESIDENT
WILL BACK OFF OR REVERSE THESE
TARIFFS, GIVEN THE FACT THAT IT
DOES APPEAR THAT THEY ARE
IMPACTING THE BUSINESS CLIMATE,
UNCERTAINTY, COMPANIES ARE NOW
SITTING ON CASH AGAIN, UNCERTAIN
OF WHAT THE TARIFFS ARE GOING TO
LEAD TO.
>> MARIA, YOU OF ALL PEOPLE KNOW
THAT CHINA HAS NOT PLAYED FAIR
FOR A NUMBER OF YEARS.
THE TRANSFER --
MARIA:  THAT'S TRUE.
>> THE UNFAIR TRANSFER OF I
THINK
ININK
INTEK
INTELLECTUAL PROPERTY, THIS IS
THE PRESIDENT THAT HAD THE
COURAGE TO CALL IT OUT.
THERE WILL BE TEMPORARY PAIN
AGRICULTURE AND THE ECONOMY.
HE'S GOTTEN CHINA'S ATTENTION.
WE ARE IN DISCUSSIONS WITH THEM
RIGHT NOW ABOUT HOW WE CAN
RESOLVE THIS ISSUE.
THERE'S GOT TO BE STRUCTURAL,
FUNDAMENTAL REFORM FROM CHINA IN
DEALING IN WORLD TRADE.
MARIA:  IT'S A FAIR POINT, SIR.
I TOTALLY UNDERSTAND WHAT YOU'RE
SAYING IN TERMS OF CHINA.
BUT THESE ISSUES ARE SO BIG, THE
THEFT OF I.P., THE FORCED
TRANSFER OF TECHNOLOGY, THE FACT
THAT THEY'RE UNWILLING TO OPEN
UP THEIR MARKETS AND I HAVEN'T
EVEN GOTTEN TO ESPIONAGE YET.
THAT'S A WHOLE ANOTHER BALL OF
WAX.
DOES THE PRESIDENT REALLY
BELIEVE THAT HE'S GOING TO BE
ABLE TO CHANGE THIS KIND OF
BEHAVIOR WITH TARIFFS?
>> I THINK THE PRESIDENT DOES
BELIEVE THAT.
I THINK IT IS HAVING SOME
EFFECT.
CHINA'S MARKET IS DOWN 33% THIS
YEAR.
MARIA:  THAT'S A GOOD POINT.
LET ME ASK YOU THIS.
THIS LEGISLATION IS REMOVING
HEMP FROM THE CONTROLLED
SUBSTANCES ACT.
LEAF
LEGALIZING HEMP PRODUCTION.
WHAT IMPACT IS THIS HAVING ON
CONSTITUENTS.
>> IF IT'S A PROFITABLE CROP FOR
AGRICULTURE, THEY WILL
PARTICIPATE.
THIS IS AN INDUSTRIAL USE
PRODUCT, AS WELL AS OTHER
PRODUCTS.
WE LOOK FORWARD TO DEVELOPING
MARKETS FOR IT.
IF IT'S A PROFITABLE CROP,
AGRICULTURE NEEDS NEW PRODUCTS.
WE'VE BEEN PRODUCTIVE IN
SOYBEANS AND CORN.
WE'RE LOOKING FOR MARKETS
WORLDWIDE TO SELL THOSE.
THIS IS A PRODUCT THAT CAN BE
UTILIZED THROUGHOUT THE ECONOMY.
IT WILL BE GOOD FOR AGRICULTURE
AND THE ECONOMY.
MARIA:  WHAT ABOUT FOOD STAMP
REFORM.
THE AGRICULTURE DEPARTMENT
PROPOSING STATES RESTRICT FOOD
STAMP WAIVERS IN AREAS WHERE THE
UNEMPLOYMENT RATE EXCEEDS 7%.
THE NATIONAL UNEMPLOYMENT RATE
IS AT 3.7%.
WHAT ARE YOU HOPING TO ACHIEVE?
JUST LESSEN THE PRESSURE ON
THOSE HIGH UNEMPLOYMENT STATES?
>> WELL, WE'RE HOPING TO
FACILITATE PEOPLE BACK INTO THE
WORKPLACE.
DURING THE GREAT RECESSION,
OBVIOUSLY AMERICANS ARE
GENEROUS, THEY'RE COMPASSIONATE,
WE HAD WAIVERS.
THIS GOES BACK TO THE INTEGRITY
OF THE 1996 BILL WHERE PRESIDENT
BILL CLINTON SAID THIS IS A
SECOND CHANCE, NOT A WAY OF
LIFE.
UNFORTUNATELY, IT'S BECOME A WAY
OF LIFE FOR SOME PEOPLE WHO GOT
IN NEED DURING THE GREAT
RECESSION BUT HAVEN'T GOTTEN
BACK INTO THE WORKPLACE.
WHEN YOU HAVE MORE JOBS THAN
PEOPLE, AMERICA NEEDS WORKERS.
THIS IS TO HELP FACILITATE THEM
BACK TO THE DIGNITY OF WORK.
MARIA:  WHAT CAN YOU TELL US IN
TERMS OF PRICES?
WE'VE BEEN WATCHING FOR
INFLATION.
WE P
WE HAVEN'T SEEN ANY REAL
INFLATION ON THE PRODUCER LEVEL
OR THE CONSUMER LEVEL.
BUT THERE IS CONVERSATION OUT
THERE IN THE C-SUITE THAT
MARGINS ARE GETTING SQUEEZED
BECAUSE INPUT COSTS ARE GOING
UP.
WHAT ARE YOU SEEING?
>> I THINK THAT'S TRUE IN
AGRICULTURE AS WELL.
WE DO SEE INPUT COSTS AND
MARGINS ARE SQUEEZED.
IN FACT, PROBABLY NEGATIVE IN
MANY CROPS TODAY.
THAT PUTS A LOT OF DURESS AND
STRESS OVER WORKING CAPITAL AND
EQUITY IN THE AGRICULTURE
COMMUNITY.
THAT'S WHY THE MARKET
FACILITATION PROGRAM WAS
IMPORTANT TO AGRICULTURE THIS
YEAR.
MARIA:  HOW WORRIED ARE YOU
ABOUT THAT?
HAS IT GOTTEN TO AN EXTENT WHERE
YOU WOULD BE WORRIED ABOUT
PRICES MOVING TOO FAST, TOO
HIGH?
>> WE'RE NOT THERE YET.
OBVIOUSLY WE'RE NOT BACK TO THE
DIRE CIRCUMSTANCES WE SAW IN THE
EARLY '80s, ALTHOUGH WE ARE
SEEING WORKING CAPITAL BEING
DEPLETED.
WE'RE SEEING DEBT TO ASSET
RATIOS INCREASING AND WE'RE
SEEING DIFFICULTY IN
PROFITABILITY AND THAT'S THE
SUSTAIN ABILITY OF AGRICULTURE
DEPENDS ON BEING PROFITABLE,
JUST LIKE ANY OTHER BUSINESS.
I DON'T THINK WE'RE -- WE'RE
SEEING INPUT RISING AND THAT'S
SQUEEZING MARGINS.
WE HAVE TO BE CONCERNED, IF THE
TREND CONTINUES, WE WILL BECOME
ALARMED.
MARIA:  THIS
MARIA:  IHIS
MARIA:  IMPS
MARIA:  IMPACT OF THE FARM BILL,
HOW SIGNIFICANT WILL IT BE.
TELL US THE PRACTICAL IMPACT
YOU'RE EXPECTING.
>> IT'S HUGE FROM AN EMOTIONAL
STANDPOINT, FROM A PSYCHOLOGICAL
STANDPOINT, BUT THIS PROVIDES
THE PEACE OF MIND FOR OUR
FARMERS FOR THE SAFETY NET.
FARMING IS A VERY RISKY
BUSINESS.
MOST OF US KNOW THAT.
THEY PUT THE SPRING IN THE
GROUND, HOPING FOR A GOOD CROP.
WE'VE GOT RAIN, HAIL,
HURRICANES, FLOODS, DROUGHTS,
ALL THOSE SORT OF THINGS.
FARMING IS A RISKY BUSINESS.
THIS FARM BILL PROVIDES A SAFETY
NET FOR THOSE THINGS THAT HAPPEN
WHEN PEOPLE CANNOT HELP IT, AND
THEY'VE DONE WELL, BUT THINGS
HAPPEN.
THIS IS A SAFETY NET FOR PRICES
AND PRODUCTION TO SUPPORT THAT.
I THINK GOOD AG ECONOMY IS GOOD
FOR NATIONAL ECONOMY.
FOOD SECURITY IS GOOD FOR
NATIONAL SECURITY.
MARIA:  FOR SURE.
SECRETARY, IT'S GOOD TO SEE YOU
THIS MORNING.
THANKS SO MUCH.
