Johnson re-introduces agriculture bills in the House

Just ahead of the 2023 Black Hills Stock Show & Rodeo, U.S. Rep. Dusty Johnson, R-S.D., re-introduced two cattle bills designed to drive competition and benefit smaller meatpacking operations.

Johnson said the "Butcher Block Act," co-sponsored by U.S. Rep. Abigail Spanberger , D-Va., would establish a grant and loan program within the Department of Agriculture to provide funding for new and expanding meat processors.

The legislation was originally introduced in June 2021. The following month, the USDA announced $500 million in funding for the program. The bill passed unanimously in the House Committee on Agriculture in May 2022.

Johnson said a 2020 report indicated that packers are 5,000 to 6,000 head of cattle short per day from where they need to be. Johnson told the Journal this week that expanding facilities could cost $100 to $250 million for every thousand head of cattle per day, an impossible fee for new or smaller operations.

"We have those dollars already out there making an impact, and I would bet that South Dakota is going to be the recipient of a number of those awards, maybe even in weeks to come," Johnson said.

The legislation has safeguards preventing investment in what Johnson called the "Big Four" processors — Cargill, JBS, Marfrig and Tyson Foods. Instead, Johnson said the bill focuses on smaller processors, driving more healthy competition.

Johnson said another piece of the puzzle in addressing both capacity and competition is the Amplifying Processing of Livestock in the United States Act (A-PLUS), a bill re-introduced with lead U.S. Rep. Mark Alford, R-Mo.

"It has been prohibited for livestock marketing — the folks that run the sale barns — to be involved in meat processing, because we were concerned about too much integration," Johnson said. "And I think that's a legitimate concern, but I think we have so much need for capacity outside of the Big Four, that we want to be innovative in how we build that capacity."

Johnson said he believes there's a role for livestock marketers to expand processing capacity and help diversify market options. A-PLUS would revise the Packers and Stockyards Act that prohibits that owner investment.

The bill also has safeguards in place to prevent investment in the 10 largest meat packers in order to focus the expansion on smaller, local processors, Johnson said. Investment would only be allowed in packers with a slaughter capacity of less than 700,000 a year for cattle and sheep and less than 3 million a year for hogs.

Johnson discussed his placement on the 13-seat bipartisan "Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party," more often referred to as the "Select Committee on China." He said he's been an outspoken opponent of Chinese influence for the duration of his congressional career.

"The Chinese Communist Party is not our friend," he said. "The Chinese Communist Party is a military threat. They're a cultural threat. They're a threat to our food security. They're a technology threat, and for too long America has been sleepwalking through acts of aggression by the Chinese Communist Party."

Reiterating that food security is national security, Johnson discussed his legislation aimed at blocking CCP purchases of American agricultural land, something he's actively sponsored in the House.

It's a hot-button issue in Congress, Johnson said, with U.S. Sen Mike Rounds, R-S.D., introducing the Promoting Agriculture Safeguards and Security Act of 2023 (PASS Act) this week. In a news release, Rounds said his bill is designed to prevent agricultural land and business purchases by China, Russia, Iran and North Korea. Johnson co-led the House version of the PASS Act this week.

Fixing the supply chain

After fighting for ocean shipping reform in 2022, Johnson set his sights on addressing the trucking supply chain system. He introduced the Safer Highways and Increased Performance for Interstate Trucking Act (SHIP IT) in late January.

Johnson said an estimated 80,000 truck driver shortage, high median age of drivers and lack of sufficient parking for truckers contributes heavily to supply chain issues that have persisted since the COVID-19 pandemic.

The PASS Act, Johnson said, would allow for flexibility in drive times during emergencies, improve parking and rest facilities, and encourage recruitment and retention through tax credits and streamlined licensing processes.

"We've made the job of the modern American trucker harder and harder," Johnson said. "My bill aims to make it easier and really streamline [and] just allow those guys and gals to do a better job of serving the American supply chain."