January 19, 2017

The wait is over. President-Elect Donald Trump has selected George Ervin “Sonny” Perdue III, the former governor of the state of Georgia, as the new Secretary of Agriculture. As the final cabinet nomination in Trump’s administration, the unveiling comes just about a day shy of the 2017 presidential inauguration.

Seventy-year-old Perdue will oversee the U.S. farming industry, which commands a budget of $150 billion across the three pillars of agriculture –economics, trade, and food safety — at a critical time for the country’s farmers.

Perdue was not available to comment on this story. A member of President-Elect Trump’s transition team did not immediately return calls seeking comment.

Louisiana Department of Agriculture and Forestry Commissioner Mike Strain told GAI News that while he doesn’t know Perdue personally, the new Secretary of Agriculture comes highly recommended by colleagues. “He’s a fellow veterinarian, highly educated in science and he understands agriculture. He brings some tremendous talent as the former governor of Georgia. He has the political ability and scientific training to take on this task,” said Commissioner Strain.

The Man

Perdue, the son of a farmer, Ervin, and teacher, Ophie, is no stranger to political circles. He served as Georgia’s 81^st governor for two consecutive terms beginning in 2003. Perdue was the state’s first republican governor since President Ulysses S. Grant’s administration, having straddled both political parties in his career. Prior to the governorship he served in more local capacities in the Peach State.

Perdue’s agriculture roots run deep, beginning with his childhood and continuing into his career as a licensed veterinarian and participant in agribusiness since the 1970s. He currently serves as managing director of a grain business dubbed AGrow Star, which according to reports grew out of his 2000 acquisition of Milner grain. In 2011 the former Georgia governor founded Perdue Partners, an Atlanta-based global trading company that advises companies on agriculture exports ranging from pecans, chicken, sugar, and soybeans, to craft wines and distilled beverages, such as flavored vodka.

Additionally, Perdue serves on the board of the National Grain & Feed Association and has been at the helm of both the Georgia Feed and Grain Association and the Southeastern Feed and Grain Association.

Similar to Trump, Perdue is known for taking an unorthodox approach to governing. For instance, when the Southeastern U.S. was suffering from extreme drought a decade ago, the then governor asked residents to turn to prayer for rain.

The Issues

Indeed, after much of rural America threw their support behind Trump during the presidential election, agricultural trade will be front-and-center to Perdue’s agenda, with billions of dollars at stake as U.S. exports are estimated to be valued at $133 billion for 2017. Commissioner Strain’s state of Louisiana in particular, which exports more than half of its agriculture production, would benefit immensely from open trade with Cuba, as the ag import-heavy island would likely be a recipient of the state’s rice production.

“He’s going to be very positive on trade, very positive,” said Commissioner Strain of Perdue.

Another theme that will take priority for Perdue is the 2018 Farm Bill, though the ag community didn’t wait for Trump to get the wheels turning on this piece of legislation. “Discussions are beginning now,” said Commissioner Strain, adding that he visited Washington, D.C., in November 2016 for a congressional briefing with the House agriculture staff. “We will be very active in the drafting and the passage of the next farm bill as well as a number of issues involving trade.”

Indeed, market participants and U.S. representatives are beginning to meet to lay out the broad parameters of the bill, chief of which will address food safety, food prices, the U.S. dairy program, crop insurance, and disaster provisions. “One weakness of the current Farm Bill is there is no strong disaster provision in it,” said Commissioner Strain, pointing to last year’s rural flooding in his state that wiped out entire crop yields for some farmers.

Though Trump waited until the final hour to name his ag secretary, he has been engaged with the agriculture community since winning the presidency. Prior to making his selection, Trump met with executives from Bayer AG, the latter of which promised to add U.S. jobs and invest locally.

Next Steps

Perdue’s appointment must still be sanctioned by the Republican-led U.S. Senate, however, once approved, he is reportedly expected to serve from his Georgia residence so that he can remain close to his family.

-Gerelyn Terzo

Gerelyn is a regular contributor to GAI News. She has been writing about institutional investing and asset management for the majority of her career, and she has developed a focus on agriculture given the global scale of the industry’s relevance and importance.