The U.S. Grain Standards Reauthorization Act (S. 4054) was recently passed by the U.S. Senate and the U.S. House of Representatives. The legislation, which sets the framework for the functioning of the U.S. Department of Agriculture’s (USDA) Federal Grain Inspection Service, now moves to President Trump’s desk to be signed into law.
The U.S. grain inspection system provides certainty to our foreign customers that all U.S. grains and oilseeds have been inspected and certified by an independent agency. The system provides great value to U.S. commodities, enhancing our competitiveness in the world market, and is a significant advantage for U.S. products versus commodities from other origins.
A properly functioning grain inspection system is critical. Despite the significant impacts of tariffs on exports, U.S. commodities have maintained some competitiveness in the international market in part to the premium international buyers place on the U.S. grain inspection system.
Given the current uncertainty in trade agreements and many of the bearish factors working against U.S. farmers, it is critical we maintain one of our key advantages. Our customers, foreign and domestic, see tremendous value in the U.S. grain inspection system, and reauthorization of the Grain Standards Act will continue this value for U.S. grain exports.