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Costa calls on Biden to take further action on supply chain crisis

January 24, 2022

WASHINGTON - Rep. Jim Costa (CA-16) led a bipartisan letter to call on the Biden administration to take further action on the supply chain crisis.

In a letter to President Joe Biden, Representatives Costa, Jimmy Panetta (CA-20), David Valadao (CA-21) , and Dusty Johnson (SD-AL) ask the administration to take emergency action to help strengthen exports out of American ports, including:

  • Incentivizing foreign shipping companies to fill containers with U.S. exports
  • Temporarily suspending regulations on vehicle weight limits for truckers hauling shipping containers

  • Providing exporters with better access to shipping and logistics equipment

The impact of the supply chain backlog seen in American ports has had a devastating impact on agricultural producers who rely on exports. Lawmakers stress that while the Ocean Shipping Reform Act of 2021 could mitigate some of the supply chain issues seen in American ports, further action could help solve the crisis faster.

"Given the critical nature of this threat to the U.S. reputation as a reliable exporter, we urge you to further use your emergency powers to address this supply chain crisis and mitigate the risks to agriculture in the United States," the members wrote. "This includes steps to address cargo ships leaving our U.S. ports with empty containers while U.S. goods waiting for export are rejected, as well as transportation-related issues that are further exacerbating the situation."

The full text of the letter can be found here.

The letter is endorsed by nearly two dozen agricultural groups, and co-signed by over 70 members of Congress.

"Supply chain disruptions have wreaked havoc on the export flows that dairy farmers rely on to help support our farms and meet the needs of overseas customers who rely on us for high-quality dairy products,"said Simon Vander Woude, First Vice Chairman with the National Milk Producers Federation and Chairman of the Board of Directors of California Dairies Inc. "Rep. Costa's leadership on this issue has been critical in championing the needs of California agriculture, as well as farmers and dairy manufacturers across the country. Passage of the Ocean Shipping Reform Act remains essential to delivering the systemic changes dairy exporters need to see -- but along with this important legislation, additional steps are needed to complement it. The Administration can and must take further actions to alleviate the export supply chain crisis. Dairy producers appreciate the message this bipartisan letter sends in urging that type of two-track approach toward delivering relief."

"California Farm Bureau appreciates the leadership of Representatives Costa, Panetta, Valadao and Johnson as they prioritize addressing ongoing supply chain disruptions and work to expeditiously return ag export levels to normal, allowing producers within our state and across the nation to continue delivering high-quality farm products to markets across the globe" said Jamie Johansson, President of the California Farm Bureau. "California is the largest agriculture exporting state in the nation, with more than 40% of its production going to foreign buyers. Over a stretch of four months in 2021, it is estimated that California's agricultural exports fell by $2.1 billion, or approximately 17%, due to challenges with obtaining empty shipping containers."

"The West Coast port crisis continues to cause profit losses, unpredictability and high anxeity for our farmers," said a statement on behalf of Western Growers. "We support the efforts of Reps. Costa, Johnson, Panetta Valadao, and others to urge the Administration to not let up on this important issue and wield its powerful position to secure essential relief measures and near-term resolutions."

MEMBERS WHO CO-SIGNED: Don Bacon, James R. Baird , Ami Bera, Sanford Bishop, Mike Bost, Kat Cammack, Salud Carbajal, Ed Case, Lou Correa, Joe Courtney, Angie Craig, Eric Crawford, Henry Cuellar, Sharice Davids, Antonio Delgado, Byron Donalds, Randy Feenstra, John Garamendi, Mike Garcia, Jimmy Gomez, Anthony Gonzalez, Vicente Gonzalez, Josh Gottheiemer, Glenn Grothman, Josh Harder, Andy Harris, Diana Harshbarger, Vicky Hartzler, Yvette Herrell, Bill Huizenga, Chris Jacobs, John Joyce, John Katko, Fred Keller, Young Kim, Ron Kind, Ann Kuster, David Kustoff,  Doug LaMalfa, Jake LaTurner, Zoe Lofgren, Tracey Mann, Betty McCollum, Lisa McClain, Cathy McMorris Rodgers, Mariannette Miller-Meeks, Peter Meijer, John R. Moolenaar, Dan Newhouse, Tom O'Halleran, Scott Peters, Tom Reed, Kim Schrier, Guy Reschenthaler, Austin Scott, Kurt Schrader, Elissa Slotkin, Adrian Smith, Lloyd Smucker, Darren Soto, Elise Stefanik, W. Steube, Tom Tiffany, G.T. Thompson, Peter Welch, Brad Wenstrup, Steve Womack

ENDORSEMENTS:  Agricultural & Food Transporters Conference, Agriculture Transportation Coalition, Almond Alliance, California Dairies, Inc., California Farm Bureau Federation, Cargill, Fruit Growers Supply, Intermodal Motor Carriers Conference, International Dairy Foods Association, Leprino Foods, National Milk Producers Federation, National Council of Farmer Cooperatives, North American Meat Institute, Tyson Foods, Inc. U.S. Dairy Export Council, Sunkist Growers, Western Growers

Issues:Agriculture