Daines: USDA Must Resume Grain Inspections Immediately

Statement

Representative Steve Daines today renewed his call for the U.S. Department of Agriculture (USDA) to immediately restart its legally required grain inspections so that normal shipments of Montana grain may resume from the Northwest's largest grain terminal.

During his weeklong agriculture tour last week, Daines heard from Montana farmers that the inspection stoppage at the Port of Vancouver in Washington State, if not dealt with, will "plug the grain supply chain all the way back to the farm gate."

"Montana farmers should not be stuck in the middle of a dispute taking place in another state. USDA must fulfill its obligation and resume inspections at the Port of Vancouver immediately," Daines said. "The longer USDA delays, the more it will hurt Montana farmers. Not only will their ability to sell grain from this year's harvest be affected, but our reputation among trading partners as a reliable source of high-quality grain could be damaged."

Montana farmers grow and export more than 150 million bushels of wheat each year, a vast majority of which goes to grain terminals in the Pacific Northwest for international export. Bulk wheat is Montana's largest export.

"This stoppage could not have come at a worse time than right at harvest. It's making the logistics to move wheat a lot more difficult. The world is highly competitive, so this could be more than just a one-year loss of revenue for Montana grain producers," Monte Fauque, who operates a grain terminal in Conrad, Montana, said.

As the Billings Gazette reported, "The inspections, which are required before grain may be shipped overseas, ended several weeks ago when Washington Gov. Jay Inslee canceled police escorts for inspectors, who are state employees working under agreement with the U.S. Department of Agriculture… At issue is a labor contract dispute, now in its second year, between the International Longshore and Warehouse Union and United Grain. State grain inspectors have declined to cross the picket line without protection from harassment."

USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA) has since refused to fulfill their legally obligated duty to inspect the outgoing grain, creating a backup all the way to Montana where it is now being stored on the ground because grain terminals are full.

On Daines' ag tour, he heard from Montana grain growers who were upset about USDA's refusal to carry out the inspections.

"I'm just baffled that USDA, the agency whose mandate is to strengthen the American agricultural economy, refuses to fulfill their commitment as required by law to provide grain inspection service so that Montana grain flows unimpeded to our foreign customers," Bing Von Bergen, a grain producer from Moccasin, Montana, said.

"Montana grain producers will pay the price for USDA's refusal to provide inspectors to one of our major export terminals in the Pacific Northwest. The inability of one of our major export terminals to load and ship grain threatens to plug the grain supply chain all the way back to the farm gate. In addition to the direct negative impact on our growers, it will undermine our standing as a reliable grain supplier and tarnish the reputation of Montana's grain producers and the entire industry," Lola Raska, Executive Vice President of the Montana Grain Growers Association, said.

Daines has spoken to White House officials as well as the Administrator of GIPSA to demand the immediate resumption of inspections and a plan to prevent future stoppages.

Last month, Daines was joined by Representatives from North Dakota, Washington, Oregon, Idaho and Indiana in calling on USDA Secretary Tom Vilsack to take action requiring GIPSA to meet its statutory obligation to inspect wheat exports.

Source