U.S. Secretary of Agriculture Sonny Perdue visited three communities in southeastern South Dakota Thursday and spoke about several developments while in the state.
Trade
After speaking at a forum with ag producers in rural Lennox, Perdue addressed concerns about tariffs from China. He says finding new markets for crops and livestock is a way to respond. Perdue says he has a USDA undersecretary for trade who is charged with helping to open up additional opportunities for farmers beyond China.
"Honestly, we've probably become too dependent on China as a market; we want to spread that out and get a lot of different customers around the world - that's what we're focusing on. Japan, the E.U., South Korea, Mexico, Canada, Thailand, Malaysia - those kind of countries that we need to sell more products to."
After the Trump Administration levied tariffs on Chinese steel and aluminum, China responded with tariffs on soybeans, pork products, and a variety of other goods.
E-15
Perdue met with ethanol leaders at POET's plant in Chancellor to discuss the potential for year-round E-15. President Donald Trump announced his executive order on the subject earlier this month. Perdue says Environmental Protection Agency Acting Administrator Andrew Wheeler wants the rule on year-round E-15 done by May 2019 - just in time for the summer driving season. That's also what industry leaders hope for.
Perdue is the former Governor of Georgia. He says it's not a quick process to ensure changes like year-round E-15 are able to withstand a court challenge. He says low commodity prices and rising petroleum prices may benefit ethanol.
"The market will drive much of this. If we're able to get the delta in price that I think will happen with E-15, that'll help. Consumers will make that choice - retailers and businesses do what consumers like. And, if they ask for E-15, they're going to make an effort to do that. I mention the fact that I know in the past USDA has been a partner in some of that infrastructure build out and there might be some ways we can participate again. Without commitment, that's the kind of thing we're looking at - I like to think out load and talk out loud with people in these kind of meetings where we can get better ideas. But, those are the kind of things we'll be willing to consider going forward."
Perdue says consumers are aware of 10 percent ethanol in gasoline. He says he understands the importance of having E-15 at rural, independent convenience stores like those found throughout South Dakota.
Moving a USDA Agency Out of D.C.
Perdue says South Dakota has applied to be a potential home for the National Institute of Food and Agriculture. It's an agency that helps fund and support agricultural discoveries and education programs like 4-H. A USDA press release from earlier this month notes Brookings and Sioux Falls have submitted expressions of interest.
Perdue says there are more than 100 expressions of interest from 35 states as the division is poised to leave the Washington D.C. area by the end of next year. Perdue says they have some specific things in mind.
"We're looking for good cost of living, good access, good commute times, and we're looking for what states can commit as far as facilities and incentives from that perspective."
Perdue says employees currently receive locality pay due to the expense of living near D.C. His visit to the state concluded with an appearance at Brandon Valley Intermediate School.