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Thursday, February 28, 2019 - 1:45pm
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USDA Announces Investments to Improve Rural Electric Infrastructure and Finance Smart Grid Technologies

 

                                     More than 6,200 customers will benefit from improved or new service

WASHINGTON, Feb. 28, 2019 – Acting Assistant to the Secretary for Rural Development Joel Baxley today announced that USDA is investing $122 million to expand and upgrade rural electric systems in Arkansas, Florida, Indiana, Oklahoma and South Dakota. The funding includes more than $7 million to finance smart grid technologies to improve system operations and monitor grid security.

“Modern and reliable electric infrastructure is foundational to building prosperity in rural America,” Baxley said. “Under the leadership of Agriculture Secretary Sonny Perdue, USDA is committed to being a strong partner in improving this essential infrastructure.”

USDA is investing in seven projects through funds from the Electric Loan Program. The loans will help build or improve 964 miles of line to benefit more than 6,200 business and residential customers.

South Dakota’s West River Electric Association, for example, is receiving a $30 million loan to build or improve 163 miles of line, serve 1,049 new customers and finance $2.4 million in smart grid technologies. Smart grid includes computer applications, two-way machine-to-machine communications, geospatial information systems and other tools to increase the reliability and efficiency of electric power systems. West River serves 16,920 residential and commercial consumers in an area largely dependent on agriculture, tourism and business activity.

Southern Indiana Rural Electric Cooperative Inc. will use a $10.5 million loan to build or improve 92 miles of line to enhance system operations for 600 rural consumers. The loan also includes more than $1.5 million for smart grid technologies. Southern Indiana serves 9,300 consumers over 1,643 miles of line across five counties. Its service territory includes both agricultural and industrial consumers, such as woodworking, furniture manufacturing, logging, rock quarrying, coal mining, crude oil production and manufacturing of steel products.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.

To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB) (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB) (PDF, 190 KB).

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.

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Secretary Perdue to deliver remarks to the Commodity Classic General Session

WHAT: Secretary Perdue will deliver remarks to the Commodity Classic General Session. Following the remarks, Secretary Perdue will hold a media availability in Room 311.

WHEN: TOMORROW, Friday, March 1st beginning at 10:00am ET.

 

WHERE: Orange County Convention Center, 9800 International Drive, Orlando, FL 32819

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United States Wins WTO Dispute Finding China Provides Excessive Government Support to its Grain Producers

Washington, DC – U.S. Trade Representative Robert Lighthizer and Secretary of Agriculture Sonny Perdue announced today that a World Trade Organization (WTO) dispute settlement panel found that China has provided trade distorting domestic support to its grain producers well in excess of its commitments under WTO rules.  China’s market price support policy artificially raises Chinese prices for grains above market levels, creating incentives for increased Chinese production of agricultural products and reduced imports.

 

This panel report is a significant victory for U.S. agriculture that will help American farmers compete on a more level playing field.  This dispute is the first to challenge China’s agricultural policies that disregard WTO rules and shows that the United States will take whatever steps are necessary to enforce the rules and ensure free and fair trade for U.S. farmers, ranchers, workers, and businesses.

 

“The United States proved that China for years provided government support for its grain producers far in excess of the levels China agreed to when it joined the WTO.  China’s excessive support limits opportunities for U.S. farmers to export their world-class products to China.  We expect China to quickly come into compliance with its WTO obligations,” said Ambassador Lighthizer.

 

“We know that America’s farmers and ranchers thrive in a market-oriented, rules-based global economy.  That means all countries must play by the rules, which is why this finding is so important to U.S. agriculture,” said Secretary Perdue.

 

Background:

 

In December 2016, USTR requested that the WTO establish a dispute settlement panel to consider whether China provides “market price support” for Indica (long-grain) rice, Japonica (short- and medium-grain) rice, wheat, and corn in excess of China’s domestic support commitments.  Market price support programs are some of the most trade-distorting agricultural policies, and are therefore subject to clear limits under the WTO Agreement on Agriculture and a WTO Member’s specific commitments.  Under WTO rules, China may provide non-exempt support up to the de minimis level of 8.5 percent of the value of total production of a particular commodity, a commitment set out in China’s WTO accession agreement.  

The panel report agreed with the United States that China provided domestic support to its agricultural producers in 2012, 2013, 2014, 2015, well in excess of its WTO commitments.  Specifically, the panel found that China had provided support in excess of permitted levels for Indica (long-grain) rice, Japonica (short- and medium-grain) rice, and wheat, in every year.  Each finding individually established that China broke its overall agricultural domestic support commitment for agricultural producers.  For corn, the panel declined to make findings on the support provided to corn in 2012-2015 given that China had apparently changed its program in 2016, just prior to the WTO’s establishment of the panel.        

Compliance with WTO rules will lead to a reduction in the excessive support provided to China’s grains producers and should increase market forces in China, leading to a more level playing field.

Read more about the United States’ challenge, including additional details about how China’s excessive domestic support to its grain producers breach its WTO commitments.

 

Learn More

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, Heritage Action’s Tim Chapman will be hosting a conversation with Senator Marsha Blackburn of Tennessee and Senator David Perdue of Georgia.

You can CLICK HERE to tune in at 10:40 am ET to watch the CPAC live stream of the discussion about the national debt and how to tackle the growing deficit.