ICYMI: Senator Marshall addresses challenges in rural America and livestock markets during Agriculture Committee hearing

Washington, D.C. – U.S. Senator Roger Marshall, MD, questioned USDA nominees before the Senate Committee on Agriculture, Food and Forestry about the challenges facing rural America and recent volatility in domestic cattle futures markets. Kansas residents involved in the livestock industry have contacted Senator Marshall's office regarding the recent drop in futures prices. At the hearing, Senator Marshall raised these concerns with the nominees.

Dr. Basil Ivanhoe Gooden appeared before the Committee as a candidate for Under Secretary of Rural Development at the USDA, a position that will replace Ms. Xochitl Torres Small, who is now Assistant Secretary of Agriculture. Summer K. Mersinger is appointed Commissioner of the Commodity Futures Trading Commission.

You can click HERE or the image above to view Senator Marshall's full questioning.

Highlights of Senator Marshall's questioning include:

Senator Marshall: If you could do one thing in the next six months that would help rural America, what would it be, maybe one or two things?

Dr. Gooden: I really feel like rural America, actually the loss of population in rural America. So really promote the quality of life in the countryside and make sure that people understand that rural America is not just a place that produces energy or things that you can get products from, but that it is actually a place where you can live and raise a family and actually work and have a livable wage, really, just encourage that.

If you're talking specifically about our programs in rural America, which I would be doing over the next six months, I would focus heavily on our staffing and making sure that our staffing is adequately supported in our field operations where we meet customers on the day on-site to ensure they understand and can access our programs.

Senator Marshall: I would like to ask a question about child care. If we expanded the USDA loan program to include child care facilities, would that be beneficial?

Dr. Gooden: Oh yes, Senator, and certainly our community facilities program. In fact, we invest in community facilities, healthcare, clinics, rural areas and hospitals. And certainly educational opportunities too.

Senator Marshall: I'll briefly touch on future live cattle prices, they just seem to be getting out of hand. I've never seen such price differences. And we use those, our feedlots, some, I don't know, 25% of the beef in the country also comes from our feedlots in southwest Kansas. So this price fluctuation is harmful for producers. What is the economic basis for this major shift? And God forbid, is there any evidence of market manipulation going on in any type of market? Is there a possibility that market manipulation is taking place? It just doesn't make sense to us?

Commissioner Mersinger: I know how important futures markets are to price discovery for cattle producers. We have very well qualified, very smart analysts who monitor these markets day in and day out. As you know, agricultural markets are very sensitive to underlying fundamentals. And as you know, you know the pricing aspect and the way prices are reported in the livestock markets. You know, there are a number of questions about how this is worded. This is not our responsibility, but it certainly has an impact on our futures markets. And so, you know, we're certainly willing to work with the USDA, which is willing to work with this committee to see if there are things that need to be changed and certainly if there's anything that needs to be changed within the Contract specifications need to be changed, specifications for the library.

Senator Marshall: Do you think you were able to detect when there was market manipulation? Could you find out? Are you concerned that there is market manipulation?

Commissioner Mersinger: I firmly believe that if there was manipulation in the futures markets, we would be able to detect it. We not only check that, but also the exchange, that is part of their role. So I think, you know, when we see fraud and manipulation, we put an end to it. We go after the bad actors. And it is also up to the stock market to ensure that these markets are not vulnerable to fraud or manipulation. That's part of their basic principle. So we're constantly looking at this and we're certainly happy to work with your office on this committee to see what we can do, if there are things that can be done to make sure that these markets serve their purpose better.