[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] FARMING IN THE 21ST CENTURY: THE IMPACTS OF AGRICULTURE TECHNOLOGY IN RURAL AMERICA ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON INNOVATION AND WORKFORCE DEVELOPMENT OF THE COMMITTEE ON SMALL BUSINESS UNITED STATES HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS SECOND SESSION __________ HEARING HELD JANUARY 9, 2020 __________ [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Small Business Committee Document Number 116-066 Available via the GPO Website: www.govinfo.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 38-824 WASHINGTON : 2020 -------------------------------------------------------------------------------------- HOUSE COMMITTEE ON SMALL BUSINESS NYDIA VELAZQUEZ, New York, Chairwoman ABBY FINKENAUER, Iowa JARED GOLDEN, Maine ANDY KIM, New Jersey JASON CROW, Colorado SHARICE DAVIDS, Kansas JUDY CHU, California MARC VEASEY, Texas DWIGHT EVANS, Pennsylvania BRAD SCHNEIDER, Illinois ADRIANO ESPAILLAT, New York ANTONIO DELGADO, New York CHRISSY HOULAHAN, Pennsylvania ANGIE CRAIG, Minnesota STEVE CHABOT, Ohio, Ranking Member AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member TROY BALDERSON, Ohio KEVIN HERN, Oklahoma JIM HAGEDORN, Minnesota PETE STAUBER, Minnesota TIM BURCHETT, Tennessee ROSS SPANO, Florida JOHN JOYCE, Pennsylvania DAN BISHOP, North Carolina Melissa Jung, Majority Staff Director Justin Pelletier, Majority Deputy Staff Director Kevin Fitzpatrick, Staff Director C O N T E N T S OPENING STATEMENTS Page Hon. Jason Crow.................................................. 1 Hon. Troy Balderson.............................................. 3 WITNESSES Mr. Kevin M. France, President and CEO, SWIIM System, Ltd., Denver, CO..................................................... 7 Dr. David Potere, Head of GeoInnovation, Indigo Agriculture, Boston, MA..................................................... 9 Mr. Roberto Meza, Co-Founder and Farmer, Emerald Gardens, Bennett, CO, testifying on behalf of the Rocky Mountain Farmers Union.......................................................... 10 Dr. Douglas Jackson-Smith, Professor and Assistant Director, School of Environment and Natural Resources, The Ohio State University, Wooster, OH........................................ 12 APPENDIX Prepared Statements: Mr. Kevin M. France, President and CEO, SWIIM System, Ltd., Denver, CO................................................. 30 Dr. David Potere, Head of GeoInnovation, Indigo Agriculture, Boston, MA................................................. 35 Mr. Roberto Meza, Co-Founder and Farmer, Emerald Gardens, Bennett, CO, testifying on behalf of the Rocky Mountain Farmers Union.............................................. 40 Dr. Douglas Jackson-Smith, Professor and Assistant Director, School of Environment and Natural Resources, The Ohio State University, Wooster, OH.................................... 45 Questions for the Record: None. Answers for the Record: None. Additional Material for the Record: Statement of Paul Schlagel, Sugarbeet farmer, Longmont, CO, Chairman, Biotech and Research Committee, American Sugarbeet Growers Association, Washington, DC.............. 129 FARMING IN THE 21ST CENTURY: THE IMPACTS OF AGRICULTURE TECHNOLOGY IN RURAL AMERICA ---------- THURSDAY, JANUARY 9, 2020 House of Representatives, Committee on Small Business, Subcommittee on Innovation and Workforce Development, Washington, DC. The Subcommittee met, pursuant to call, at 10:03 a.m., in Room 2360, Rayburn House Office Building, Hon. Jason Crow [chairman of the Subcommittee] presiding. Present: Representatives Crow, Finkenauer, Kim, Davids, Veasey, Houlahan, Balderson, Chabot, Hern, Burchett, and Joyce. Also Present: Representative Panetta. Chairman CROW. Good morning. The Committee will come to order. We thank everyone for joining us this morning to our first Small Business Committee hearing of 2020. And I want to especially thank the witnesses for taking the time to travel from across the country and take time away from their businesses in some instances to have this important discussion. As is the case with these hearings, there will be members coming and going. There are overlapping hearings on other Committees, so you will see some folks come and go throughout and ask questions, so we just ask for your patience in bearing with that as well. Farming and agriculture are at the heart of strong economies around the country. Investing in agriculture is crucial to ensure that our communities can thrive. Coming from Colorado, I understand the importance that farming and agriculture have on our state's way of life and economic well- being. Nearly half of Colorado's 66 million acres are dedicated to over 30,000 farms and ranches, many of which are small, locally owned operations. Colorado is a leading producer of cattle, corn, wheat, and dairy, but Colorado's small farms are also raising everything from bison to ostriches and growing sunflowers, grapes, and mushrooms to name a few. In the 21st century, technology and innovation are changing everyday life, reshaping how consumers shop, and how business is conducted. Modern farming is no different. Through advancements in robotics, sensors, artificial intelligence, GPS technology, and digital platforms, agriculture is undergoing a revolution and transitioning from the industrial age to the digital age. These innovations, commonly known as agriculture technology, or ag-tech, provide an opportunity to help farmers increase yields and profitability while reducing waste and environmental impact. Today's hearing will provide members with an opportunity to hear from innovators, farmers, and researchers about how ag- tech is helping farmers modernize their businesses and how entrepreneurship and innovation in ag-tech is changing our food and farming systems. The increased use of ag-tech has the potential to address challenges our country and the world will face over the next century. Globally, the world's population is on track to exceed 9 billion in the next 30 years. According to the United Nations, this means our agricultural production will need to increase by 70 percent to meet the growing demand for food, fiber, and biofuels. Meeting this global demand for food will be even more challenging in the face of climate change that is already impacting our food systems, water, and land. Changing temperatures reduce yields and increase pest pressures. Changes in participation patterns increasingly cause crop failure and production decline. As a former Army Ranger, I have also seen how these threats, including scarce water resources and poor food security in other countries can have a profound impact on our own national security, readiness, and resiliency. But the full potential of ag-tech to meet global food demands mitigate the negative impacts of climate change and create jobs in our rural communities will not be fully realized unless we fully support our farmers and innovators and the research that supports them. Ag-tech can spur innovation and growth in rural parts of the country, but like many other sectors of the economy, agriculture is struggling to find and retain a skilled and stable workforce. To address this, I worked with my colleagues on both sides of the aisle to pass the Farm Workforce Modernization Act which will help create a reliable workforce for American agriculture. This legislation will help provide certainty for guest workers and for American farmers and ranchers, an important step in solving the labor challenge facing American farmers and ranchers. There should also be robust funding of agriculture, research, and development at the USDA to support farmers in rural communities. I am proud that Colorado is a hub of ag-tech and innovation. Growing tech centers in the Denver and Boulder areas, funding opportunities through CoBank in my district, and a pipeline of talent from outstanding universities like Colorado State University and the University of Colorado systems have helped make Colorado the second largest ag-tech ecosystem in the country. As that pipeline develops the high- tech skills in food science, environmental engineering and precision agriculture, these specialists will lead the ag-tech industry forward. Finally, it is crucial to mention the need for greater deployment of high-speed Internet in our rural communities. Outside of its importance in healthcare, education, and legal services, connectivity is the backbone of ag-tech. Broadband makes it possible for farmers to aggregate and analyze data in real-time while tracking commodity markets and operating digital technologies. Small businesses and farms across Colorado suffer daily from lack of access to high-speed broadband services due in large part to lack of investment. Reliable, affordable high-speed broadband is a necessity and why Congress must work to coordinate Federal resources and make investments in infrastructure projects. Technology has become indispensable for all small businesses, and farmers and ranchers are no different. Small businesses play a vital role in providing products and services supporting America's digital farming revolution. I look forward to hearing from our expert witnesses today on how farming is being impacted by technology and how R&D is impacting small business growth and entrepreneurship so that the U.S. can once again be the world leader in agricultural research and innovation. And I would now like to yield to the Ranking Member, Mr. Balderson, for an opening statement. Mr. BALDERSON. Good morning, everyone, and thank you, Mr. Chairman, Chairman Crow. I appreciate it. Happy New Year. And I look forward to a great 2020. I anticipate a great 2020 with another year of bipartisan camaraderie and innovation on Workforce Development Subcommittee. Today's hearing will explore agricultural technology innovations that are modernizing our farms and revitalizing rural America. Having spent time working on a family farm myself, I understand the impact farmers have on their community and our Nation. Agricultural technology, or ag-tech, is a broad term describing a diverse range of technologies, including bioscience, big data, analytics, automation and robotics, supply chain and logistics, and alternative business models such as hydroponics and meat alternatives. On farms, these technologies can increase productivity, reduce waste, and boost profits. On a larger scale, ag-tech entrepreneurship activities boosting rural revitalizing efforts by attracting startups, jobs, and investment dollars to agricultural regions. With the diversity of technologies involved, ag-tech attracts entrepreneurs and investors from various industries and geographies. As we observe the astounding growth and impact of ag-tech ventures, we cannot lose focus on the primary stakeholders, our farmers. With uncertain markets and narrowing profit margins, farmers may be hesitant to take on additional risk that comes with new technologies. For example, an investment in precision agricultural systems include equipment purchases, installation charges, and precise precious time spent learning how to use and maintain these technologies. To be fully taken advantage of, the system must be compatible with preexisting machinery, Internet connectivity, and business model. To be worth farmers' investments, technologies must have a tangible impact on productivity and profit. As options rapidly increase, how do farmers determine what will work best for their specific business needs? I would like to thank our witnesses for being here today and to talk about these experiences from ag-technologies and what resources are available to minimize the risk and maximize the benefits of investment. Thank you for being here today to represent this promising industry. I yield back, Mr. Chairman. Chairman CROW. Thank you, Mr. Balderson. And I agree with you on looking forward to 2020. We had some exciting wins and collaborations in 2019 and I look forward to continuing that in the next year. The gentleman yields back. And if Committee members have an opening statement prepared, we would ask that they be submitted for the record. I would like to just take a minute to explain the timing rule. Each witness gets 5 minutes to testify and each member get 5 minutes for questioning. There is a lighting system in front of you to assist you. The green light will be on when you begin, and the yellow light will come on when you have 1 minute remaining. The red light will come on when you are out of time, and we ask that you stay within that timeframe to the best of your ability. I would now like to introduce our witnesses. But before doing so, I am going to ask unanimous consent to allow Congressman Jimmy Panetta, who serves on the House Agriculture Committee to join this Subcommittee hearing. Without objection, so ordered. Welcome, Mr. Panetta. Mr. PANETTA. Thank you. Chairman CROW. Thank you for joining us today. And I will actually yield to you to introduce our first witness. Mr. PANETTA. Thank you, Mr. Chairman. I appreciate this opportunity to be here to speak about a very, very important issue. And thank you, Ranking Member Balderson. I appreciate both of your opening statements and agree with absolutely everything that both of you had to say. So thank you. It is an absolute honor to be here. It is actually quite far away from where I come, not just in the Cannon Building but in California. I come from the Central Coast of California. And it is otherwise known as ``the Salad Bowl of the World.'' Trust me, my fellow members on the Ag Committee get sick and tired of me saying that and they have heard me say it over and over. And now you get to hear me say it. But I say it with a lot of proud because there on the Central Coast of California, you name it, we grow it. We have hundreds and hundreds of specialty crops. There is a reason why we are not only ``the Salad Bowl of the World,'' but we have ``the Garlic Capital of the World.'' We have ``the Artichoke Capital of the World.'' We have ``the Berry Bowl of the world.'' We have specialty crops. But as many of you know, specialty crops can be very difficult to harvest, especially crops take that human discernment when it comes to soft fruits and vegetables as to figuring out what is safe, what is ripe, what is ready to be picked, what is aesthetically pleasing to the consumer. Because as you know, most of the time those products, once they are picked, they go right into the cartons. Those cartons go right onto the shelves of the stores. And those cartons then go home with us and then those products go right into the mouths of our sons and daughters. And so it does take at this point a very skilled--you have to be very skilled in order to harvest this product. Now, for a long time we have relied on humans to do that, especially on the Central Coast of California. That is why Jason, I completely agree with you, the Farmworker Modernization Act was a very, very important bill that I am proud to say has not only passed in a bipartisan basis in the House; it must be passed in the Senate and signed into law. But in the meantime, the other avenue that we must go down is ag-tech, as you mentioned. But this type of technology for these types of crops, we are behind it. We are lagging. Now, do not get me wrong; I have been out in our fields there in Watsonville, and I have seen some pretty interesting things from some companies right over the hill from Silicon Valley, where I have seen machines take more pictures of a strawberry plant in one afternoon than all of the previous human history of taking photos of a strawberry plant. It is that type of technology that is needed. But more needs to be invested in this technology to do it. And I think is why it is so, so important that we are having this type of conversation here in Washington, D.C., so that those types of investments in the fields, not just on the Central Coast but throughout this country, can benefit from the investment that is needed when it comes to ag-tech. And so it is an absolute honor that I am here today with you, but also have the opportunity to introduce Mr. Kevin France. Kevin France is the chief executive officer of SWIIM Systems, a small business that provides on-farm agriculture water accounting. SWIIM has a satellite office in my district there on the Central Coast, and it partners with the Western Growers Association, which has one of its main offices in my district as well. Now, under Mr. France's leadership, SWIIM has been recognized as a Top 25 Ag-Tech Company by Forbes Magazine. Mr. France, I thank you for being here, for your preparation, for your time, and all of us look forward to hearing what you have to say in regard to the investment that is needed and what has been done and what needs to be done when it comes to ag-tech. Thank you. Thank you, Ranking Chairman, Ranking Member, Chairman, I yield back. Chairman CROW. Thank you for being here, Mr. France, and Jimmy, you might have a lot of agricultural capitals of the world but I do not think you can claim the mushroom capital of the world because that distinction belongs to Ms. Houlahan sitting next to you. So I just wanted to be clear for the record. Our second witness is Dr. David Potere. Dr. Potere is the head of GeoInnovation at Indigo Agriculture. He is a technology leader focused on building integrated applied science platforms using geospatial technology to tackle complex business challenges. For the past several years, he has focused on building a living map of the world's food supply. Using reliable maps, data, and metrics can help farmers grow crops that are more profitable and sustainable. Prior to joining Indigo, Dr. Potere was cofounder and CEO of Tellis Labs, which provided action agricultural intelligence across the food value chain using machine learning, remote sensing, and geospatial analysis. Dr. Potere has a Ph.D. in geodemography from Princeton University and served the country as a surface warfare officer in the U.S. Navy. Thank you for your service, Dr. Potere, to the country and for being here today. Our third witness is Mr. Roberto Meza, a beginner farmer and cofounder of Emerald Gardens located in Bennett, Colorado. While a grad student at MIT in the Art, Culture, and Technology program, Roberto was inspired by student projects addressing food production in urban landscapes. His career quickly transitioned from the arts to agriculture with a focus on food access. After a hiatus working on farms and observing problems in our food systems, Roberto moved to Colorado with a childhood friend and started their own farm in 2017. Emerald Gardens grows, harvests, and distributes microgreens to restaurants, grocery stores, food pantries, and smaller retailers in Colorado's metro areas. They operate sustainably using geothermal and passive solar energy. Roberto is also the Chair of Membership and Outreach for Mile-High Farmers, the local chapter of the National Young Farmers Coalition and the Rocky Mountain Farmers Union. He is also a board member of the High Plains Food Co-op and is developing a model for Last Mile Distribution to help food co-ops and local producers gain access to markets. Thank you for taking time away from your business to be here today, Mr. Meza, and it is always good to see a fellow Coloradan in Washington, D.C. I would now like to yield to our Ranking Member, Mr. Balderson, to introduce our final witness. Mr. BALDERSON. Thank you, Mr. Chairman. I do want to acknowledge the Ranking Member of the Small Business Committee has joined us also, Ranking Member Chabot. Mr. Chabot, thank you for being here this morning. I am sure a lot of you are looking and you see the witness list. Dr. Jackson-Smith and I have made an agreement. We are not going to do the O-h-i-o stuff. But we do want to acknowledge that though Ohio State is not in the National Championship, Joe Burrow is. That is where he got all his training, so Ohio State is still represented in the championship game coming up Monday evening. So I just want to make sure that everybody is well aware of that, and he lives from the southern portion of Ohio. So we are well represented. Mr. CHABOT. Will the gentleman yield? Mr. BALDERSON. Yes. Mr. CHABOT. You mentioned Mr. Burrow. He may soon be a Cincinnati Bengal, too, which I happen to represent. We shall see. Mr. BALDERSON. We shall see. Our next witness--sorry, Doctor--Dr. Douglas Jackson-Smith, professor and assistant director of Ohio State University School of Environment and National Resources. He is here today as a representative of the university's initiative for food and agricultural transformation. Before joining Ohio State in 2016, Dr. Jackson-Smith served 15 years as a faculty member of the Department of Sociology, Social Work, and Anthropology at Utah State University. He has a bachelor's and master's degree in rural sociology, a master's degree in agricultural economics, and a Ph.D. in sociology. Trained as a rural sociologist, his research explores the dynamics of technology and structural change in agricultural and natural resource systems. He has helped lead $25 million worth of interdisciplinary science grant funding from USDA, NSF, and DOE. Dr. Jackson-Smith, we thank you for your research in this field and appreciate you taking the time away from your work to be here with us today. Thank you. I yield back, Chairman. Chairman CROW. Thank you, Mr. Balderson. In all due respect to the Ranking Member, Mr. Balderson, Dr. Jackson-Smith received his academic training from University of Wisconsin. So, go Badgers. Not to be outdone. Thank you very much. Mr. France, you are now recognized for 5 minutes. STATEMENTS OF KEVIN M. FRANCE, PRESIDENT AND CEO, SWIIM SYSTEM, LTD.; DR. DAVID POTERE, HEAD OF GEOINNOVATION, INDIGO AGRICULTURE; ROBERTO MEZA, CO-FOUNDER AND FARMER, EMERALD GARDENS; DR. DOUGLAS JACKSON-SMITH, PROFESSOR AND ASSISTANT DIRECTOR, SCHOOL OF ENVIRONMENT AND NATURAL RESOURCES, THE OHIO STATE UNIVERSITY STATEMENT OF KEVIN M. FRANCE Mr. FRANCE. Thank you, Mr. Chairman. Congressman, thank you very much, and other members of this Committee. I appreciate the opportunity to speak with you today on the impact of agricultural technology in rural America. And I appreciate this opportunity to share some of my experiences. My name is Kevin France, and I am Chief Executive Officer of SWIIM System. My graduate and undergraduate degrees are in business administration, and my professional experience includes developing technologies through public partnerships that can be integrated into the private sector. Prior to the ``Internet of Things'', also known as the IoT revolution, sensors were not generally connected to the Internet and as a result, data was gathered manually, normally by a grower, when time permitted in between growing. Now, sensors are being connected to the Internet and data is being made available in near-real-time. Growers need better access to this game-changing technology in order to sustain our agricultural economy in the face of ever-increasing water shortages. SWIIM is an on-farm agricultural water accountant, twice recognized as a top 25 ag-tech company by Forbes Magazine, and we maintain a distribution agreement with Western Growers Association, one of the largest agricultural trade organizations in the Nation. Our clients are made up of growers of all sizes and shapes. We provide complete water use reporting, including applied and consumed water resources on a real-time basis by field and by crop. Similar to the way your CPA provides a detailed statement of financial accounts--money in, money out, and from what source--we enable growers to quantify and protect their water allocations well into the future. Our initial research was originally funded by private investment and underpinned by state water conservation grants. The technology was then developed over a 5-year period through an agreement with the USDA, Colorado State, and Utah State Universities. Our first issued patent was actually co-developed with the help directly alongside the USDA. Depending on their location, a grower may have access to river water, access to groundwater. Some have access to both. Unlike other farming inputs, however, water is the only component to a farming operation that has no alternative source, and if not available, could put the farmer completely out of business. By way of example, take the Colorado River--a prime surface water source for seven western states is over-appropriated by as much as 40 percent, leaving some farmers without water to grow the crops on which our Nation severely depends upon. Years of drought exacerbates this situation. As another example, take California's recent passing of the Sustainable Groundwater Management Act to manage over-pumping of its aquifers. With these upcoming restrictions, at least 500,000 acres of farmland in the Central Valley of California will be without water most likely, which means no crops will be grown on those acres. Our clients tell us they fear for their livelihoods and the legacy of their operations, many of which have been in their families for generations. Growers need access to updated technologies to fight the consequences of drought and lack of water availability that is widespread throughout the U.S. The equipment we most often see in the field fails to provide the accurate water accounting needed today. We see roughly about one in five flow meters in the field are producing data that is off by as much as 25 percent and old- fashioned open canal measurements where they still use yardsticks to measure water levels being off by as much as 40 percent. Consider what this means. Our experience shows us that many of the current funding sources available are geared toward research. These contributions are valuable, but the net sum result of many of these projects simply leads to more research without much private sector engagement, unfortunately. The USDA-NRCS has programs that are designed to help famers and irrigation districts implement technologies. They include EQIP and RCPP funding sources. These programs, although well- intentioned, are tough to plan around, as funding cycles do not track with grower needs and the application process is difficult to complete. Funds for these programs are managed and distributed generally on a regional basis making larger, more scalable projects that can benefit multiple regions more challenging to implement. We have seen this first-hand. One promising example relates to a project that we are currently finalizing along the Colorado River in Arizona, with support from the Federal Government. The client is working with the Bureau of Indian Affairs and the Bureau of Reclamation (BuRec) to co-fund a SWIIM deployment in an area that will benefit significantly from this type of water use data. If this funding project could be expanded through a partnership with BIA and BuRec to multiple users along the Colorado River, then more meaningful scaling could be achieved. To provide paradigm-shifting technologies and to facilitate the embracing of these types of technologies on a wider scale, funding sources must be flexible, and allow for approval on a project-wide basis across different regions, opposed to a region-by region basis as it is currently done. Thank you for the opportunity to share this story with you today, and I look forward to answering your questions. Chairman CROW. Thank you, Mr. France, for that testimony. And I would be remiss if I did not recognize that you are bringing your family here as well and it is my understanding it is at least your youngest daughter's first time in Washington. So welcome to our Nation's capital to the France family as well. Mr. FRANCE. Youngest and oldest. Thank you, Mr. Chairman. Chairman CROW. Right. Thank you. Dr. Potere, you are now recognized for 5 minutes. STATEMENT OF DAVID POTERE Mr. POTERE. Thank you, Chairman Crow, other members of the Subcommittee. Thank you for the opportunity to testify in today's hearing. You know, fundamentally, growing food has always been a venture of small businesses, and that is true here in the United States. Despite all that we hear about consolidation of farms, today in the U.S., no sector has a higher percentage of small business ventures than agriculture. And that is not only the farmers who are growing our food but the shippers and carriers that bring our food to market, the accountants and CPA, and agronomists and mechanics that help bring that crop out in the world. And, of course, small business is challenging. And no small business is more challenging than agriculture. I come to you today as a technologist. I build technologies. I am not a farmer but I have been serving farmers for the last 5 years, building out a better system of agricultural intelligence using satellite and weather technology that is the result of hundreds of millions of dollars of government investment over the last many decades. And I am now proud to be a member of Indigo Agriculture, Inc., which is a company whose mission is to use technology to help farmers sustainably feed the planet. There are many challenges that the farmers face today; we have seen 49 percent reduction in the profitability of farms since 2013. We are looking at a 400 percent increase in input costs for farmers over the last 40 years, most of that in the last 15. If you think about where that increase in input cost is going, it is not going to small businesses. Think about how challenging it is to market that grain out in the world. As an asset class, commodities futures is one of the most volatile asset classes on the planet, and farmers ever year have to figure out when and how to market their crop out into the world. It is hard to be small in the food system, and at Indigo, we believe that technology is a part of the solution to making farming a more valuable profession and by extension, making small business a more viable sector. The two aspects of our business that I want to share most with you today are around bringing that crop out into the world via Indigo Marketplace, and learning how to grow a new kind of crop. Learning how to become a carbon farmer. We think this is one of the most hopeful things that we have heard of when it comes to the climate change story. Bringing farmers into the solution. It is true that farming represents 25 percent of carbon emissions but at Indigo, we believe that farming can be a definitive part of the solution for climate change because of the potential for agricultural soils to absorb carbon. It is really an old technology. It is called regenerative farming, and it basically means planting cover crops and letting what we all learned in eighth grade science take over. When it comes to photosynthesis, plants are really good at turning atmospheric carbon dioxide into soil carbon. We should let them do that and let them do that year-round by helping farmers move to a system where they plant crops during the winter, cover crops, that actually make the soil healthier, make the food healthier for human consumption, and actually create resilience for those farmers to better resist the changes of climate change, which if unmitigated look like they could create a 20 percent headwind when it comes to agricultural production in the country. That carbon solution, it requires a marketplace, and Indigo Marketplace technology is designed to match buyers and sellers. And that is a real tough problem. I have sat at the farm gate with many, many farmers in my time at Indigo around harvest time trying to make that decision of where and when to sell their grain. They are not armed with the same technologies as the Big Ag companies that they are selling into. And we work to democratize the kind of market insights and intelligence that it takes to make smart, rational decisions at that key moment, including learning how to sell carbon. One of the things that we wanted to make sure to mention today as we speak with all of you is an opportunity to support farmers in that chance to sell carbon. The thing we would like to observe is that for a decade now, due to changes in the Tax Code, oil and gas companies have had the opportunity to sequester atmospheric carbon as part of enhanced extraction. And the question we have for the Committee is if it makes sense at $50 a ton for the government to subsidize oil and gas to put carbon dioxide back into the ground, would it not make sense to allow farmers to do the same thing and to allow farmers to do that at lower cost per ton and do that in every rural community in America and allow them to become a part of the same solution that we know is so urgent for the planet? So I will kind of leave you with that question. I look forward to answering your further questions. Chairman CROW. Thank you, Dr. Potere. Mr. Meza, you are recognized for 5 minutes. STATEMENT OF ROBERTO MEZA Mr. MEZA. Chairman Crow, Ranking Member Balderson, and members of the Subcommittee, thank you for the opportunity to testify today. My name is Roberto Meza. I am a first-generation farmer and co-founder of Emerald Gardens, a farm located 15 miles east of Denver on 35 acres in Bennett, Colorado. My business partner and I operate a controlled environment, passive-solar greenhouse in which we cultivate herbs, edible flowers, and over 20 varieties of microgreens. Every week, we harvest more than 300 pounds of microgreens destined for restaurants, grocery stores, food pantries, public schools, farmers markets, and for direct delivery to consumers. I am a member of Rocky Mountain Farmers Union (RMFU), which represents approximately 20,000 family farmers, ranchers and rural members across Colorado, New Mexico and Wyoming. I am also the Chair of Membership and Outreach of Mile-High Farmers, a co-chapter of Rocky Mountain Farmers Union and the National Young Farmers Coalition (NYFC). My business partner and I are proud to be building our small farm with a focus on environmental stewardship, technology, innovation, and community engagement. Microgreens are the primary crop of our farm and our labor of love. They have low input needs, have a quick turnaround time, can be grown year-round, and have a high nutrient density. It is through growing and incorporating microgreens into my diet that I experienced healing and renewal when I was struggling with personal health issues. Furthermore, they exhibit beautiful colors, have distinct flavor profiles, which make them highly sought after by chefs in restaurants and discerning consumers. On our farm, we use innovative technologies that help us reduce our costs and be strong environmental stewards. Our greenhouse uses a passive-solar design that is both energy efficient, economically sensible, and environmentally friendly. It works by using clear polycarbonate material on the south side to let the light through, and insulated metal panels on the sides and the north wall to trap that heat. This allows us to charge our Ground to Air Heat Transfer System (GAHT), a design refined by Ceres Greenhouse Solutions, that is based on the principles of a climate battery. This allows us to channel that heat in the greenhouse through a series of tubes that run below the structure's foundation and allows us to reduce our reliance on auxiliary heating and cooling implements. We grow vertically to maximize the use of our 3,000 square foot and use supplementary LED lighting to be energy efficient and cost-effective. Over the next few weeks, we will be installing 40 solar panels to power the lights and the fans in the greenhouse. Also, as Coloradoans know very well, the state closely monitors water supply and use because of the arid climate. We use an automated recirculating water system to supply the roots only what they need while reducing evaporation. Many people are still unfamiliar with microgreens. Social media is a critical tool we use to raise awareness about their nutritional benefits, as well as the important role they play in local food systems. By posting videos that show our farm practices and the technology we use in our production systems, it builds trust, transparency, and a deeper connection for consumers and their food source. A major puzzle we have been working to solve is optimal distribution of our product. Emerald Gardens is a boot-strapped business, so unsurprising we have relied on some relatively low tech methods of distribution such as attending farmers markets. But we also have an online farm stand so customers can place orders from their smartphone. For broader distribution, we have partnered with an innovative local grocery delivery startup, Bondadosa. Bondadosa allows us to deliver to all of our wholesale and retail markets through a single weekly pick-up. We also looked to partner with Bondadosa to share data that helps us optimize their delivery routes. As technology advances, including agricultural technology, it is becoming increasingly important for today's farmers to have a college education. Indeed, it has become an asset on many farms as well as our own. A college education is out of reach financially for many and student loans are essential. Unfortunately, student loan debt is one of several key factors preventing young and beginning farmers from getting or staying involved in agriculture. As a first generation and beginning farmer with my own student loan debt, I believe a Federal student loan debt forgiveness program is essential. Looking ahead, we are excited by the opportunity to partner next year with a technology startup that will pilot new sensors in our facility. These sensors will generate data that will help us understand the microclimate in our greenhouse to increase the precision of our production methods. Support for technologies such as these, which can improve environmental and economic efficiencies are increasingly important within the context of our changing climate. I want to close by saying that innovation is borne of struggle. While we face a myriad of challenges as small farmers and small business owners, we remain committed to a mission of feeding our communities, improving our farm and food systems, and remaining careful stewards of Colorado's natural environment. Technologies, both high-tech and low-tech, as well as grit and determination, are helping us get there. Thank you for the opportunity to testify, and I look forward to your questions. Chairman CROW. Thank you, Mr. Meza. And I know tomorrow is your distribution day. So I especially appreciate you flying out to do this today. It is always good to see you at the Stanley Marketplace. Mr. MEZA. Thank you. Chairman CROW. Dr. Jackson-Smith, you are now recognized for 5 minutes. STATEMENT OF DOUGLAS JACKSON-SMITH Mr. JACKSON-SMITH. Thank you. And I want to begin by thanking the Subcommittee for the opportunity to speak to this important issue. As your introduction pointed out, I am a professor of rural sociology and water security at the Ohio State University, and I have spent my career studying both the drivers and the implications of technological change for farmers, with a particular focus on small and mid-size farms in rural communities. My comments today also reflect the contributions of a colleague, Dr. Casey Hoy, who is the Kellogg Endowed Chair of Agri-Ecosystem Management and the director of the initiative for Food and Agricultural Transformation (InFACT) that I can speak more about later, at Ohio State. Many of the challenges faced by small businesses stem from structural disadvantages that they face when competing against large-scale specialized businesses that serve global commodity markets and benefit from economies of scale. With that said, there is reason for optimism for the future of small and medium-size farms, agribusinesses, and food companies. Changes in consumer preferences, expanding markets for food products that offer social, economic, environmental, and health benefits, supportive public policies, and--most importantly for today's hearing--a whole raft of cutting-edge technological innovations provide a foundation for reinvigorating small businesses in rural America. Specifically over the last 20 years, a rise in consumer interest and awareness of how their food is produced has contributed to the rapid growth of new markets, and in response we are witnessing the resurgence of diversified farm and food supply chains in the U.S. This certainly includes farmers who incorporate cover crops and diverse crop rotations, reliance more on agro-ecosystem processes instead of synthetic inputs, and those who produce niche or specialty products. It also includes small food supply chain businesses that are more nimble and better able to meet these emerging specialized needs of different types of customers. In our written testimony my colleague and I list many examples of innovations that could help support these diversified farm and food businesses, and for the sake of time I am just going to highlight a few in my oral comments. First, there are innovations that improve the performance of diversified farms which we see as a foundation for this frontier. The diversified farming systems of the 21st century are not your grandfather's farm but rather improvements in scientific knowledge have opened new windows into the dynamics of agro-ecosystems and how diversification can be leveraged to improve farming. Some promising areas for innovation include support for farmer innovation. There are literally tens of thousands of farmers currently working to diversify their crop and livestock systems, and these farmers represent a reservoir of practical knowledge that you should start with and be a foundation for future discovery and innovation. There are breeding and genetic engineering tools, both traditional and cutting-edge, that could be used to develop new crop and livestock varieties optimized for small scale and diversified production systems. And the use of sensors and precision farming data to help farmers use inputs more efficiently and adapt to conditions in real-time. A second cluster of innovations might improve linkages between diversified farms and these emerging markets, and that would include tools to track the performance of diversified farms, innovations like the environmental sensors and tracking systems the previous speakers spoke to. Third, improving traceability. New data information systems, in particular block chain technology, could be harnessed to track products throughout a food supply chain without placing burdens on producers, processors, and retailers. And increased opportunities for direct marketing. In the digital age, connecting with consumers requires access and a reliable presence on the Internet, and the comments made earlier about the importance of rural broadband Internet, I think go no further mention. Finally, there are innovations that expand opportunities for non-farm businesses throughout this diversified system that we see. These might include innovative farm machinery companies, food processing technologies designed specifically to support diversified production and small scale producers. It also includes food safety monitoring technology that could address potential threats to the food supply associated with a more distributed and diversified supply chain, including new sensors and automated sampling technologies that are less labor-intensive and more accurate than many current systems. So big picture. While technological innovation can help small and medium-sized businesses thrive in a more diversified farm and food system, we are not working in a vacuum. For decades, the dominant thrust of technological change in the U.S. farm and food sector has focused successfully on large- scale specialized commodity production. I think without conscious public leadership in this space we are concerned that the future of technology may not generate the opportunities for small businesses and rural economic development that all of us desire. Fortunately, I think emerging markets, good public policy, and targeted investments in research and innovation and small business development can help energize the technologies we have talked about today and stimulate economic opportunities in areas where Federal leadership in stimulating research and innovation around diversified farm and food systems could have a significant impact. And I thank you for the opportunity to address the Committee, and I look forward to your questions. Chairman CROW. Thank you, Dr. Jackson-Smith. I have appreciated everything that all four of you have shared with us today. I will begin by recognizing myself for 5 minutes and start with Mr. Meza. Mr. Meza, you have done something that not a lot of people are able to successfully able to do, and that is from kind of no background and experience in this area to jump in and start a small farming operation and to be able to survive your first few years. That is a very challenging statistically thing to do, and I would love for you to just share with us for a minute what advice you would share with other young folks that are looking at entering into the profession and doing this and your lessons learned, very briefly. Mr. MEZA. Thank you, Mr. Crow. My experience has definitely been challenging as you mentioned. I think one of the reasons why we have been successful is our involvement in our community, in our farmers union, working with extension offices, and also identifying appropriate technology and crops that are sought after in our community. As you know, Denver is a blossoming culinary world but it also has an underdeveloped food system. So with those two factors in mind, we have targeted microgreens as a perfect crop to really address a lot of those factors. For us, it has been an opportunity to explore and research different models for how to create a niche for ourselves and how to create a viable business. With the support of our community and the solidarity with other farmers, it has allowed us to get to where we are today. I would say the backbone of our farm aside from technology is also the relationships and partnerships that we have established. So I would definitely advise beginning farmers to collaborate, especially with their local community. Chairman CROW. And I know the last time we had a roundtable together at the Rocky Mountain Farmers Union there was some discussion about what you mentioned on the burgeoning restaurant market. You know, we have added almost 50 percent population, almost 2 million more Coloradoans than the last 2 decades, which has led to a boom in the restaurant industry. But one of the biggest challenges is getting fresh produce to those restaurants in a timely way without them sitting on the shelf and having the spoilage. And I know some folks in the union are experimenting with online platforms to do that where a restaurant can order something up in real-time and get it within hours. Have you had experience with that, and are those platforms you think valuable? Mr. MEZA. Definitely. These platforms allow us to have a really strong relationship and communication avenues with our markets and our buyers. Growing microgreens allow us to generate enough product every week to cover the immediate needs of chefs in restaurants. So we have been able to capitalize on the benefits of microgreens in order to satisfy the needs of our blossoming culinary enterprises. Chairman CROW. And is there a role in your view for this Committee in helping young folks with the startup costs or the barriers on those platforms? Because, I mean, one of the things I love about this is you cannot outsource fresh produce; right? I mean, it has to be grown locally and produced locally and sent to local restaurants. So I think it is at great opportunity for us. But what are those barriers that you think folks like us sitting up here could help reduce? Mr. MEZA. Absolutely. I think, you know, one of the challenges was accessing capital. When my business partner and I decided to start a farm in Colorado, we did not exactly know how to approach it. We did not know what products to grow, and we also wanted to be mindful of food waste. So for us it was an opportunity to research what the local menu is in our context. Microgreens became that crop that we focused on. And because of their ease of production and low input needs, we were able to bootstrap our operation in a very small, 150 square foot greenhouse that was adjacent to my initial property that I was renting in Colorado. And through that it allowed us to really connect with the markets that were emerging, especially through farmers markets. Now that we have scaled to our commercial phase, we have realized that much more infrastructure and input needs have been required by our business model to be viable. So access to capital has been quite a challenge but we are bootstrapping it as we go along. This allows us to really understand the scale that is needed to address a lot of these factors and make our business viable. Like I had mentioned before, student loans have been a factor in our ability to address the infrastructure needs of our business but we are optimistic and we are determined to innovate new models for helping younger farmers, especially since a lot of our aging farming population is experiencing this moment of transition. So we are trying to engage, inspire, and motivate the next generation of agriculturalists. Chairman CROW. Thank you, Mr. Meza. And I do have some questions for the other witnesses but I do want to spread it around a little bit before I loop back to all of you for a second round. So my time has expired, and Mr. Balderson is now recognized for 5 minutes. Mr. BALDERSON. Thank you, Chairman Crow. I will start off with Dr. Jackson-Smith. Doctor, according to a recent article in the Minnesota Times--excuse me, Minnesota Star Tribune--tractors built in 1980 or earlier are in high demand because the price to buy and maintain them is significantly lower than new high-tech tractors. Can you give us a brief interpretation of this trend? Mr. JACKSON-SMITH. Certainly. And I can say I just retired my 1985 Toyota Corolla, which rusted out before the engine ever went, so I bond with those farmers. I farmed for 25 years, and when I farmed I understood the value of this kind of tier of technology. My explanation for that ties into the fact that farmers at this small and mid-size tier have limited resources and a lot of cutting edge technology, especially when it first rolls out is beyond their reach or designed for scales that initially might exceed their capacity to take advantage of it, whereas technology from the `70s and `80s, certainly tractor technology, can do the job without having to be very expensive and difficult to acquire and maintain. Farmers also farm for more than economic reasons. The quality of the labor experience, their ability to achieve independence is critical to farmers that I work with. And being able to work on your own tractor was why I kept that Toyota Corolla. I could fix a car that had a carburetor. I cannot fix my Toyota Prius. In fact, I am scared to touch the Toyota Prius engine. So it is a very interesting observation but it does reflect, I think, both the lack of development of appropriate technology perhaps in the mainstream machinery industry historically and therefore, old tractors having a niche, but also an opportunity for manufacturers to get into that space and find ways to produce technology that is really targeted and suited to that kind of clientele. And there are manufacturers I think who are wising up to that. Mr. BALDERSON. Yes, I agree. Thank you very much. This next question I have is for the whole panel and you all can jump in however you may. According to the Innovate Ohio statewide broadband strategy, 300,000 households in Ohio, representing approximately 1 million Ohioans lack broadband Internet access. As a member of the Small Business and Transportation Infrastructure Committees, I advocate for rural communities, including those in my district that suffer from crumbling infrastructure and inadequate Internet access. How does broadband access impact technology adoption for rural farmers? Mr. POTERE. Ranking Member Balderson, I can make a comment from the prospective of Indigo Ag. We have had to build mobile technologies for farmers to validate the work they are doing on farm in order for buyers to pay a premium. We are trying to decommoditize grain agriculture. And that means we have to send agronomists and farmers themselves into the field to take notes on what is happening. The lack of broadband access has required us as a technology company to build all of our apps resilient to a lack of Internet connectivity. The development costs of that and the missed opportunity around a two-way street of data flows for the farmer are just really mindboggling. It is really interesting from a software developer perspective, we bring developers from all over the world to Indigo. They were shocked to deal with that engineering challenge because they are so trained on solving urban problems, it was a real moment to realize that the lack of bandwidth was going to mean developing against total blackout from a bandwidth perspective. Mr. BALDERSON. Thank you. That is a good answer. Sir? Mr. FRANCE. If I may, I would like to second that. Our entire network has been developed based upon a cellular and satellite uplink because of the fact that in many of the regions we are in, there is not sustainable broadband. So we do use broadband where we can because there is a cost benefit to doing so. But it is a secondary backup. I mean, some of these areas, they are in the middle of the desert. You know, we are in areas where it gets to 130 degrees as a high, and then, of course, in areas of Colorado it is below zero. So that shift in climate over the year puts you in a position where not only do you have to have solid equipment that can sustain itself but also the connectivity to get to the web is still not there. Mr. BALDERSON. Okay. Mr. Meza? Mr. MEZA. We have been lucky in our context in rural Bennett that we have incredible fiber-optic connections. It is an essential part of our business model because we are able to create a niche for ourselves and a market for ourselves through the use of communication of platforms by educating consumers about our product and connecting them with their food source. That is pretty much how we have been able to create this business for ourselves. And we also need this technology to utilize the sensor technology that we are using to mitigate any energy waste that we may encounter in our production methods. Mr. BALDERSON. Thank you very much. Mr. Chairman, I yield back. Chairman CROW. Thank you, Mr. Balderson. The gentleman yields back. The gentlelady from Kansas is now recognized for 5 minutes. Ms. DAVIDS. Thank you, Chairman. And thank you for holding this hearing. Thank you to all the folks who came out here to testify on what I think is a really amazing opportunity for us on the Small Business Committee to be talking about issues that really touch on rural, urban, and suburban points of contact here. I represent the 3rd District in Kanas, which is home to Garmin. So we have got a lot of the precision agriculture technology. You know, it is very important to the district I represent, but also, in my state there is really, I would consider there to be a big push toward the sustainable agriculture that you all have been talking about today. Johns County Community College has a sustainable agriculture program that I had the opportunity to go and visit. And one of the things they brought up is how hard it can be for people to get into some of the types of farming that you have been talking about, the smaller farms, getting into some of the crops that people are less familiar with. So I guess the question for anyone on the panel who wants to help enlighten us is how can we as the Small Business Committee or Congress help support that pipeline? And also, the technologies that I think--I am particularly excited about the carbon sequestration piece, but I would love to hear from you about how we can really impellent or make the programs that we have existing better for you all. Mr. POTERE. Congresswoman Davids, I appreciate the question, and I will maybe address in particular the carbon opportunity. Something we wrestle with is if this is such a win-win, you know, coming to a regenerative system means you can use less inputs, farm more profitably, make more healthy food and be paid for it, why have we not seen the transition; right? I mean, farmers are entrepreneurs. If it was that compelling, why are we seeing only 2 and 3 and 4 percent of all American farmers doing those things? And we think the barrier in large part is risk and know-how. So it is risky to change the model. And the model of conventional farming is well understood. And so anything that stretches conventional farming introduces risk. And so I would suggest that anything that Congress can do to create incentives around overcoming that first barrier is a game changer; once folks have been doing this for 2 and 3 years, it is actually a more profitable farm. But it is overcoming that initiation obstacle that seems to be a big part of the blocker. Mr. FRANCE. If I may add to that. So SWIIM, we are in three states, and we have a staff of 30-something. So we are a small business as well. We have applied for state and Federal funding. Been successful in some cases. Failed in others. We find ourselves helping our growers may be 30 percent of the time use some funding mechanism to help integrate this type of technology, whether it is SWIIM-based technology or otherwise, some level of technology. The other thing that we find as a barrier is the fact that these growers tell us over and over that they just want to grow. They are not in a position where they want to fill out paperwork. They are not in a position where they want to wait for funding. Many of the programs, at least the ones that we are involved in that are available create a disincentive to pre-deploy these types of technologies. Again, whether it is SWIIM or any other technology where one could apply for funding, the grower wants to get in on it now. If they do pre- fund, the available funding packages will not allow them to be reimbursed. So they cannot. And I am speaking specifically to EQIP. I am sure there are others. We have had growers just say flat out, I am tired of waiting. I want to get this water conservation technology in place. To heck with it, I am just going to deploy it myself. Over and over. We have actually helped our clients apply multiple times. And almost every single one of them have just moved forward and done it themselves. So a revamp of the process, maybe thinking outside of the box. You know, we have had growers say if we could just do one master application for all of our fields in this one region we would do it in about 5 seconds. But one form for every single field? It is the same reason they do not want to monitor their water. They want to leave that to a professional. The same reason that we found pushback on these types of programs. Thank you. Ms. DAVIDS. Thank you. And my time is coming to an end here. I appreciate the tangible suggestions that you have. And I will reach out to the folks who did not get to answer this question to see what you have to say about it. Thank you so much, and I yield back. Chairman CROW. Thank you. The gentlelady yields back. The gentleman from Tennessee, Mr. Burchett is recognized for 5 minutes. Mr. BURCHETT. Thank you, Mr. Chairman. I appreciate the opportunity to be here, and I appreciate you all being here. I have been involved in I guess an organic business. I have had a little composting, mulching business for a long time and I know, I guess, the learning curve I had to experience but also with regulations, they just make them up as they go. And so I am excited to see you all doing what you are doing. I have a couple of questions. This is for the full panel. How do American consumers affect ag-tech industry dynamics? And are they driving the expansion of this industry or are they continuing to learn how it works? Mr. MEZA. Thank you, Mr. Burchett. Mr. BURCHETT. You can call me Tim. We are good. I would appreciate it. Mr. MEZA. In Colorado there is a really strong local food movement, and consumers are increasingly demanding products that are available locally, not only to receive the freshest and most high-quality ingredients, but also to limit the food miles that food has to travel to get to their plates. So we have been able to address that by the kind of crop that we grow. And not only that, but I think there is also this greater awareness of the participation we all have in establishing a sustainable local food system. It is really the ecosystem that we all partake in. Farmers, consumers, everybody that is involved in food. So it really is a driving force because we grow for the consumer. That is our primary goal. And for me it is really important to not only think of it in terms of a transaction but a reciprocal relationship; right? We see it as we take care of the plants so that they can take care of us, and then we can take care of the community. And that relationship has been the, I would say, intangible infrastructure that supports our entire business. Mr. BURCHETT. I was glad to hear you say that. I am an organic gardener and I grow tomatoes and squash and green beans. And we have got blueberries and blackberries and raspberries. And it is all sort of conglomerated. And I remember when I started in my backyard it was covered in all kinds of stuff. And my neighbor, oddly enough, who was not in my political party, but told me I needed to spray it down with some chemicals. You know? And I hesitated. I was mayor of the county but I lived in the city, kind of confusing, but I adopted two goats and they were wonderful. Even the neighbors ended up liking them, so I always thought I was going to get in trouble with the goat police if there were any but they were awesome. A lot of fond memories. They were Ray and Lucy. I named them after some friends of mine. I appreciate that. It is true. You can look it up. You can look it up. Neighborhood kids would come by. They would say, ``Mayor, can we get a picture made with your goats?'' And I would say, ``Sure. Come on back.'' They are great, man. They were just like a member of the family. I remember one time we were eating breakfast, my little girl Isabelle, I heard this chomping in the background. And I looked over and me and her mama saw that daggone goat had eaten the screen. And they do eat anything. I mean, anything. That is no lie. Had eaten that screen and she was feeding it Cinnamon Life through the kitchen window. But, you know, I love my girl so it could have come right in the kitchen for all I care. Mama would not have liked that but it was all right with me. But anyway, back to my questions. That is good for ratings on C-SPAN by the way. They love that stuff. What motivates or discourages small family farmers when they are considering new technologies? You know, when I was in my deal, I mean, I was strict on the environmental issues and it seemed like our universities, they did not like the organic aspect. And I found out later that a lot of the funding comes from some of the big boys who I taunt regularly on my Twitter page about, you kwon, my organic berries and stuff. And which I am sure it brings them to their knees. But the truth is that they get a lot of funding, these universities do from that, and so they sort of discourage the environmental thing. I know one of you all said you grew microgreens and other things, so I was kind of curious how that all played in. You all just kind of jump in wherever you want to. Or just shake your head in disbelief. Mr. JACKSON-SMITH. Since you pointed out universities, let me just jump in on this one. And I think the world has changed. Compared to 30 years ago, unversities are now very much focused, as is agriculture, on this sort of emerging, consumer- driven market. There was skepticism when I started my career about whether organics was the real deal and whether there is real science behind organic farming. It is now a $50-60 billion industry. And so that has woken up a lot of researchers to the possibilities of being in that space and helping to optimize those systems in the same way we have optimized conventional agricultural systems. And I think for farmers, the area of diversification and regenerative agriculture is going to be the next frontier. It is complex. It is going to require a lot of support and targeted work but I think if I were to be self-serving, universities are going to play a role in helping solve and figure out some of those fundamental science dynamics of those systems that entrepreneurs and innovators will be able to develop into new technologies that can help farmers adopt. Mr. BURCHETT. All right. I see I have run over my time once again but I really appreciate you all being here. Thank you in all sincerity. I dig entrepreneurs and we have got to encourage that. We have got to encourage the university and through all these emerging new markets it is very encouraging. Sorry, Mr. Chairman, I yield back none of my time. Chairman CROW. Thank you, Mr. Burchett. I think everyone is disappointed that your time is expired, including me. Always one of my favorite---- Mr. BURCHETT. I know the viewers are. Chairman CROW.--some of my favorite 5 minutes of all the Committee hearings. So I appreciate it very much. But I am sure you will go viral so, you know, we can watch it later. The gentleman's time has expired. The gentleman from Oklahoma, Mr. Hern, is recognized for 5 minutes. Mr. HERN. Thank you, Mr. Chairman. I have no goat stories, but I did grow up on farms. I thank the Ranking Member as well, and thank you all for being here today. As a small business owner for almost 35 years now and job creator and all kinds of farming and ranching over the years, but I am also an engineer so I really appreciate technology and what it does to make our lives better, or confuse us, one or the other a lot of times. It has allowed for a lot of increased deficiencies and you have related to that in your testimony. And it is also, I am very familiar with IOT and what it has done for changing America, the legacy equipment we have out there. You know, because small businesses start as numerous innovations and agricultural technologies to help aid American farmers, specifically these innovations have helped farmers to identify problematic factors impacting their crop productions, how to become more efficient, and you know, there has been a lot of conversation about more sustainable food production, the creation of a stronger resistance to environmental factors which is huge, to create more yield. To continue this success it is essential that we as elected officials are fostering growth for startups and small businesses rather than creating more barriers. One of the things, if you know the history of this Committee, it is a really bipartisan Committee that really works on trying to cut through all the politics of what is out there to really get things into the hands, ideas, and remove barriers for our entrepreneurs to go out and create a lot of jobs. Unfortunately, a lot of times when we try, the government tries to get in the way, and I know a lot of times when you come here you are asking for the government to get involved, and we can also be the worst nightmare because everybody has a wonderful idea that tends to stifle growth and innovation. And one of these examples of the barriers stems from a 2011 study you may be familiar with which found that due to regulations, bringing a new plant biotech variety to market costs an average of $136 million and more than 13 years to complete. In an effort to reduce these burdens, both Obama and Trump administrations have called for reforming our agricultural biotech rules to reduce cost, improve efficiency, and reflect decades of safe use. That said, there is more that we can do to improve our regulatory environment. This is something I would like to ask each of you about. So the question is in our 2-1/2 minutes, and we will just start right here and just kind of move down if you do not mind, do you all have thoughts and recommendations, specific or general, on ways we can improve the regulatory climate, remove unnecessary market barriers, or allow for better small business participation in this critical sector? Mr. FRANCE. Sir, I would write a book on that if I could figure that out. It would probably be a best seller would be my guess. But in all seriousness, as far as regulation goes, we have spent a lot of time in our particular area looking for ways to take already established programs and make them work for our clientele. So we are talking EQIP, RCPP funding through a third-party source, directly going to BuRec or BIA. I struggle with asking the government to come up with another program. I would suggest looking at the programs we have and giving more leeway to those that already have the ability to kind of look outside the box. For example, a lot of the USDA funding that is issued on a regional basis, you know, it is issued to regional offices if you will and they place it. If, for example, you found a project that spanned regions giving one person authority to fund all of those under the same terms and conditions, maybe flexing within the system that is in place would be my advice because I am not sure you would necessarily want to go in and try to create a brand new program. That is just my view. Mr. HERN. Dr. Potere? Mr. POTERE. We certainly feel the effects that you are describing. It is one of the reasons why we have pursued microbial technology, naturally occurring microbes that are in nature, amplifying those is one way. One of the reasons that is an attractive avenue for yield improvements is because of the barriers that you were talking about. So this is an example of the private sector reacting to those barriers. And I would say also that the system of conventional farming is something that needs to change. And that is also not a regulatory-constrained avenue. So in our case, I think while we do face some of the constraints of regulatory approval for those microbes that we are developing, we found two promising ways kind of around that. So certainly verifying what you are saying around the challenges that it creates. Mr. HERN. Thank you, Mr. Chairman. I yield back. Chairman CROW. I will extend 2 minutes. I would actually like to hear the other two witnesses answer your question. Mr. HERN. Thank you. Chairman CROW. Yep. Mr. HERN. Mr. Meza? Mr. MEZA. Yeah, I think, you know, the first thing we need to do is go to farming communities and ask them what ideas they have. I think too often we as experts think that we have a program that is complete and that will remove and allow further development. But, you know, contexts are different everywhere. And so the only one that can really speak to those contexts are the farmers themselves. I think it is really important to take into account the specificities of each farmer and what they need and how they see the whole matrix of things working. Another thing that I think would help is, you know, we all know that Big Ag has been subsidized. So we should be able to channel some of the funding into regenerative agriculture, new innovative models for producing food. And hopefully, we can come up with a nice brainstorming session that will yield some innovative models. Mr. HERN. Thank you. Mr. JACKSON-SMITH. It is a fantastic question. You stumbled into an area about which I know too much so I will be talking for the next 45 minutes, like any good professor. No, actually, I have worked for quite a while on ag- technology. I started out when Bovine somatatropin (or bovine growth hormone) was a cutting-edge technology in the dairy industry in Wisconsin. And it was and still is a controversial and contested technology. And it was the opening salvo in an ongoing saga of genetic engineering being a political football or at least a very contested issue. And I think our regulatory system reflects that. I do not know anyone who thinks our current regulatory system on genetic engineering makes any sense. It is kind of like no one really likes our immigration system. But to find our way forward with genetic engineering regulation requires finding some middle ground, finding some balance, and coming up with a system that incentivizes careful scrutiny in places where it is necessary and recognizes that many of the barriers that have been put in place right now are preventing us from deploying technology for purposes that I think all of us would celebrate. There are plenty of examples. We talk some about it in our longer written testimony, for example, innovations in cover crops that allow cover crops to succeed. They are a great idea but I know most farmers try them and find that it is more complicated than they were told. And that is because we have not had the ability to engineer and develop and breed cover crops that suite the diversity of climates and production systems farmers use. Biotechnology and genetic engineering could be a tool if we were able to confidently deploy that as part of our portfolio. But I recognize, and I am sympathetic that the ways in which it has been deployed to date have not always percolated down into benefits for consumers or small businesses. And so the skepticism and concerns about biotechnology are real. But I think you are touching on an area where there is a bottleneck and a bottleneck that somehow we are going to have to see our way through in the future. Mr. HERN. Thank you. Mr. Chairman, thank you. Chairman CROW. Thank you, Mr. Hern. The gentleman yields back. The gentleman from Pennsylvania, Dr. Joyce, is recognized for 5 minutes. Mr. JOYCE. I thank the Chairman for yielding and for the opportunity to discuss the opportunities that ag technology can bring to rural America. First, I would like to take a moment to highlight a farm in my congressional district which has been incredibly successful in utilizing technology to improve their operations. Jan and Dan Turner own and operate Ewe Lamb Right Farm, an 80-acre farm in Shippensburg, Pennsylvania, where they primarily raise hair sheep and lambs. Several years ago, Dan and Jan entirely relied on a system of spreadsheets and post-it notes to record the growth and any medication, vaccination, trimmings, other details relevant to managing their flock. The process to collect this data was tedious and it required them to access the sheep one by one, flip through pages of spreadsheets to find the corresponding records, and then input the updated relevant information into the spreadsheets. To improve this process, the very innovative Turners joined the National Sheep Improvement Program and purchased a system which consisted of ear tags with an RFID chip and a handheld chip reader, as well as a Bluetooth enabled scale that works with the chip reader. This technology has allowed them to collect more data and do it in a fraction of the time. They have seen a remarkable 4-to-1 time reduction in the barn and a stunning 12-to-1 reduction in labor on data entry. More importantly, the Turners not only save time but the additional data enables them to improve quality of care to the flock and decreases the stress on the animals and the shepherds. In the words of the Turners, and I quote, ``It is like having a farmhand who has X-ray vision and almost perfect memory.'' We can all agree that technology of this magnitude can be revolutionary for small and medium operations. However, as noted by your testimony here today, major hurdles continue to develop and impede the deploying of those technologies. And this technology relies in a large part to broadband access. One of my top priorities since coming to Congress has been to increase and expand rural broadband deployment. Dr. Jackson-Smith, you certainly have a broad expertise in this. Can you further elaborate on how a lack of reliable broadband limits opportunities available to small and medium farms that are looking to diversify, to modernize, and to improve their operations? Mr. JACKSON-SMITH. I can. And I can speak about the goats that I used to raise. Not really. But the fact is that I used to live on a farm where we did raise goats and sheep, and we had dial-up Internet. And it sensitized me to the realities of what life in rural American is like for farming and being able to access cutting-edge technology. For most developers of technology these days, they have very little exposure to agriculture, very little personal experience with the realities of what the working environment is like, the complexities of juggling all the demands of that task. Many come from urban areas. And so some of the comments made earlier about how surprised people are who have been working in tech development for 20 years, when they take on a rural project or an ag project, the realities of what Internet access is like. It is a huge issue. It is a tremendous barrier to being able to deploy things. One of the strategies I think that we should explore more is to be able to get more entrepreneurs and innovators, and this speaks to workforce development, out on farms, out in rural communities before technology is hardened and developed to get an appreciation for what the clientele are like and where they have needs and where there are opportunities. I think it is a vastly under resourced place for us to spend resources and effort that would lead to things we could not imagine. We need a designed system. I raise sheep. A designed system for a small scale sheep producer that fits with my budget, makes my life easier, and allows me to be more successful is exactly where we ought to be at. Mr. JOYCE. Thank you, sir. Thank you, Mr. Chair, and I yield back. Chairman CROW. Thank you, Dr. Joyce. The gentleman yields back. The gentleman from Texas, Mr. Veasey is recognized for 5 minutes. Mr. VEASEY. Thank you very much. I wanted to ask some questions for Mr. Jackson-Smith. I know that information that can help farmers make these decisions surrounding input and best management practices are very critical, obviously, to be able to maximize yields. As the digital technology and tools become more available, how do you think this is going to change farmers' behaviors as it relates to conservation? Mr. JACKSON-SMITH. I think conservation is where we are going to see some of the major opportunities in terms of technology-driven, data-driven, information-driven decision- making. It requires the emergence of markets and incentives for conservation that allow farmers to get returns for those kinds of investments which often benefit society a lot more than they will benefit the individual operator. I think my comment earlier speaks to the fact that if not appropriately tailored to the needs of rural and small and medium-size operations, a lot of technology might not give us the benefits that we would like to think they can achieve. And so I think that is where there is a role for all innovation is going to come from the private sector. There is a critical role for small, and all businesses to innovate. But for the Federal Government or governments in general to build the infrastructure that creates the template in the 21st century for success, and rural broadband Internet is one of those key infrastructure investments that will never make sense to a Verizon Wireless company because there are not enough customers per mile but make tremendous sense in terms of us being prepared to be a key player and small and rural communities being a key player in the future. But also, trying to train and develop a workforce that is capable of being sensitive to the needs of agriculture. I spoke in my oral comments about getting farmers more involved in research. And I went by it quickly, but I have come to the opinion that conservation innovation is going to go a whole lot faster if farmers are there at the very beginning of the process to help design solutions than if we work from the outside and innovate and then try to sell things to farmers. And so I think supporting programs that embed farmers with universities, I do that every day in my work, but also embed entrepreneurs in businesses to a greater extent in farming and rural communities will be some of the hidden ways we can really accelerate innovation in that space. Mr. JOYCE. Do you think that innovation of the space is embraced by people in agriculture, or is it something that has to be sort of gradually, you know, sold to them? Or is it something that people are very open to? Or is it more of a hard sale? Mr. JACKSON-SMITH. So I am a social scientist. I get the phone call from my technology-oriented colleagues who say we have invented something. Farmers do not use it. You come along, wave your magic sociology wand, and tell us how we can better get people to do that. I have learned to turn that question back and say, well, I have always found that things that work are pretty easy to convince people to use. If you have designed something that really solves a farmer's problems or fits with the kind of context they are making decisions, it is a whole lot easier to get to that adoption. It is simple think that farmers do or do not want to do conservation but it is actually a lot more complicated. I have rarely met farmers who do not want to do conservation. Ubiquitously, people are very sensitive about their environmental footprint. They want to be good stewards. They want to leave the land in better shape than they found it. That is what agriculturalists are like. When farmers are not doing conservation, it is usually for reasons that make sense. There are costs that exceed anything they can afford without returns that compensate for that. Or technologies that sound better than they might actually operate, like in the cover crop arena. We need to do a lot more to make cover crops be something. And when we design solutions I think in partnership with farmers, we are going to find that the end of convincing people, of telling people and educating them is no longer going to be the barrier. It is really something that tends to unfold on its own. Mr. JOYCE. Thank you. I yield back. Chairman CROW. Thank you. The gentleman yields back. The gentlelady from Iowa, Ms. Finkenauer, is recognized for 5 minutes. Ms. FINKENAUER. Thank you, Mr. Chair. And thank you guys all so much for being here today. I know some of you have traveled pretty far to be here and it means a lot. And as the Chair said, I am a congresswoman from Iowa. I represent Iowa's 1st Congressional District. It is 20 counties in northeast Iowa. We touch Illinois, Wisconsin, up to Minnesota, and innovation and agriculture is huge for us. And doing it right and making sure that our folks in Iowa and to have access to the innovation is one of our top priorities, but also something that we struggle with because of our lack of access to broadband, which I know you guys have touched on quite a bit today. But I think it is just important to keep hammering this home why this is so important. You see, in my district, it was about 3 months or so ago, I had FCC Commissioner Jessica Rosenworcel, or Rosenworcel up to Iowa One. We went to a farm in Dyersville, showed her some of the new equipment that was out there in regard to precision ag. But then also as we were sitting there and, you know, she was talking to some of the young farmers in the area as well. One of the guys came with his dad who I think he just got out of ISU and he is trying to show her on his iPad the operation they have. They are pork producers. For their feeding operation. And as he is pulling out the iPad to show her, the thing will not load. And it was just a perfect example about why we have an issue when it comes to folks having access to the innovation that is already here. But also what that means in the long run as well about what we are going to be missing out on if we do not get this right sooner than later when it comes to broadband and making sure that our farmers have reliable connectivity and fast connectivity. And I know, Mr. Potere, I know you spoke about this, you know, doing some innovative work on trying to create apps or different things that would make it so that if you had low connectivity it would still work. And I think that is great. But what I would like to know is what are we missing out on right now because we do not have the high-speed connectivity reliably throughout the country? And what would that actually mean for innovation if we had that so you could focus your work on apps and other things that could do even more versus on trying to bring them down to where they work on low connectivity? Mr. POTERE. Congressman Finkenauer, I think I am going to highlight three examples of the things we are missing out on. What we have today is essentially a one-way street where we build apps that are resilient so we can log a bunch of data, and then once you get to a broadband area, dump it back out into Indigo servers. And so that means it is a one-way street. And so we are not able to provide agronomic decision support to the farmer the way we could so that they are getting drone imagery in near-real time of critical moments in that crop's lifecycle. So there is a disadvantage around the farmer decision-making. They are missing out on intelligence they should have. There are also consumers who are missing out. Consumer preferences are such that, as Dr. Jackson was saying, they are changing. And consumers are increasingly ready to pay for decommoditized agriculture. At Indigo, we have done deals with companies like Anheuser-Busch, sourcing sustainably grown, low water, rice, but you have to verify that the farmers are doing what they are saying. And if there is no connectivity, if you are in a black zone, you cannot do that. And I would say the last example is those experiments that Dr. Jackson-Smith was talking about involving farmers. Every day, there are millions of experiments as farmers decide what to plant and when to plant it. If we are not watching, we cannot allow them to participate in this experiment. In Indigo, we fight that by trying to instrument as many of those fields as possible and watching them from space. But that is a half measure. You know, the reality of prevalent broadband would be that all three of those things I think get a lot better and just accelerate us. Ms. FINKENAUER. Well, thank you so much. And again, I appreciate you all taking the time to be here today. This is such an important topic. And thank you, Mr. Chair, for holding this hearing. And with that I yield back. Chairman CROW. Thank you. The gentlelady yields back. I would now like to recognize the gentleman from New Jersey, Mr. Kim, who is also the Chairman of the Subcommittee on Economic Growth, Tax, and Capital Access, a relevant Subcommittee for this discussion as well, for 5 minutes. Mr. KIM. Thanks, Chairman. I just wanted to dive into a few things. You know, this is critically important to my district. We have nearly 1,000 farms in the New Jersey 3rd Congressional District. You know, making farming more efficient and profitable in industries, something I care deeply about, the technological advances that you join us to speak about certainly sound really promising here. And I am trying to think about how best this can be implemented. I guess my question is, you know, Dr. Potere, I would like to start with you. I guess my initial questions are, what can be done to help farmers successfully transition into more technologically driven farming practices? And as we know that with the advent of technology into different industries that we have seen in other sectors, you know, sometimes that transition is difficult both in terms of taking on the resources, being trained up, things of that nature. So what can we do to decrease the burden upon farmers to integrate this type of technology into their lives and their work? Mr. POTERE. Congressman Kim, I appreciate the question. You know, we should realize that we are incenting farmer behavior with billions of dollars of tax and other kinds of subsidy. And the question is how could we direct some of what is already out in play towards more of these sustainable beneficial ag practices? I mentioned just one example I will spend a moment with you on which is this carbon tax concept. For us, the question is we have decided a decade ago that it makes sense to incent oil and gas companies to sequester carbon dioxide as part of enhanced extraction techniques. It costs of $50 a ton to do that. We think that for a fraction of that cost, farmers can put the same amount of carbon dioxide into the living, agricultural soil. So the question is, would it not make sense, should we really care where those carbon that is being pulled out of the atmosphere is going? We have done some math and it is why we have created what is called the Terraton Initiative. It is a challenge to sequester a trillion tons of carbon dioxide equivalent into agricultural soils all over the world. That is all of the carbon dioxide that has been emitted net since the beginning of the Industrial Revolution. So literally, farming has the potential to be a solution to the climate problem. We have farmers on all of that land and, you know, Dr. Jackson-Smith is right. Cover crops and regenerative agriculture, it is not easy. It is going to take technology to help those farmers understand a new sort of a digital playbook of how to do this well. But the reward, if the government can help incentivize that kind of behavior, is really hopeful. It is putting the farmer as the hero in the climate challenge. And we think it is time to start to put incentives in place to make that happen. Mr. KIM. I appreciate your answer there. Dr. Jackson-Smith, I just have a question for you. I really enjoyed in your presentation just kind of the breakdown of how to look at this in terms of what technology can do on this front. And I would like to just delve in a little deeper. In my district, you know, our district got crushed by Superstorm Sand. In New Jersey we have a lot of temperature flux as we see the challenges that are arising with climate change and extreme weather. This is a real problem for farming in our district. We know cranberries and blueberries are particularly sensitive to that kind of change in temperatures, and flooding is something that is just getting worse and worse. It is not just about when storms come. It is really a daily occurrence in many places. So I guess my question to you is, how can technology help lessen some of these harmful effects, the impacts of such events, as well as increase the resiliency of when we were looking at farming? Mr. JACKSON-SMITH. So I think one, easy, big picture answer lies in the concept of diversifying our production systems. So to the extent that we look more towards agroecosystem based solutions, we are going to need farmers and farming systems that produce a wider range of crops, that have soil building practices that give them resilience in the face of extreme weather events that we know is possible. And we are going to have to develop the technologies in the markets that allow that to be a viable and expanding and exciting opportunity. And so I think it is that combination of putting the package together to take us to that next generation of agriculture that is going to show up as a more robust and resilient agricultural community in your district. To the extent that we can help those farmers make that transition in ways that make sense to them we will succeed. Mr. KIM. Yeah, well, look, these are all things that we will have to work together to do. Chairman, I yield back. Chairman CROW. The gentleman yields back. Thank you very much. We want to thank all the witnesses for taking time out of their schedules to be with us today on this really important topic, and there was really fantastic testimony on the issues that we all look forward to working on and trying to find ways to help the industry. As we have heard today, small businesses are at the forefront of the ag-tech revolution as both producers of exciting new technology and as farmer and rancher users become more efficient and sustainable over time helping that transition to occur. In the 20th century, the United States public investment in agriculture, research, and development was a driving force behind innovation and increased efficiency. Yet, U.S. public investment in agriculture, research, and development has decreased steadily since 2002, being surpassed by China actually in 2008. So I am going to thank our witnesses for being here today to share the challenges and opportunities to help reverse that trend and make really smart and wise investments. I think we all view our role here and there is great collaboration. And this Committee is trying to find ways to reduce barriers and to help spur innovation in the private sector, the public sector, and at research institutions and universities as well. There is tremendous work going on. I think we all recognize that and we want to be helpful in reducing the hurdles and barriers so that that can continue. So I would like to ask unanimous consent that members have 5 legislative days to submit statements and supporting materials for the record. Without objection, so ordered. And if there is no further business to come before the Committee, we are adjourned. Thank you. [Whereupon, at 11:36 a.m., the subcommittee was adjourned.] A P P E N D I X [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]