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Cal-Med Consortium Workshop II December 7-8 Washington D.C. Federal Farm Policy and Domestic Policy Support for Mediterranean Products. Jay E. Noel Director, California Institute for the Study of Specialty Crops California Polytechnic State University. Production Location.
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December 7-8 Washington D.C.
Jay E. Noel
Director, California Institute for the Study of Specialty Crops
California Polytechnic State University
A number of studies have shown positive cost/benefit returns to marketing order and check-off programs- Examples include Williams (benefit-cost ranges of 12 to 27 for differing crop and marketing order activities); Carman (Avocado producers gained an additional $70.4 million in revenues for $7.86 promotional spending)
Williams, Gary. “FAIR Reviews and Economic Returns Analyses as Strategic Marketing/Management Tools”, 2004 Marketing Order Management Conference, San Antonio, Texas, September 29, 2004.
Carman, Hoy F. “Offsetting Price Impacts from Imports with Generic Advertising and Promotion Programs: The Hass Avocado Promotion and Research Order”, Review of Agricultural Economics, Vol. 28, No. 4, 2006. see also Carman, Hoy F. and R. Kim Craft. “An Economic Evaluation of California Avocado Industry Marketing Programs, 1956 – 1995”, NICPRE Quarterly, Vol. 4. No. 3, 1998.
$138.5 million allocated by USDA, Foreign Agricultural Service in 2005 to promote Mediterranean type crops.
USDA, Agricultural Marketing Service (AMS) domestic purchases of fruits and vegetables were $445.8 million in 2004 and $375 million in 2005.
Difficult to isolate APHIS budgetary outlays that address pest and disease activities that relate specifically to Mediterranean products. There is annual appropriation of $60 million for the fruit fly exclusion and detection program and $18 million is budgeted for trade issues management and resolution. The total FY 2006 budget for APHIS activities is $306 million.
The Emergency Agricultural Assistance Act (EAAC) of 2001 provided states with block grants to promote specialty crops. provided almost $160 million to all 50 states and Puerto Rico.
Specialty Crop Competitiveness Act (SCCA) of 2004 (PL 108-465). The SCCA block grants are to support programs in research, marketing, education, pest and disease management, production, and food safety. The initial legislation (HR 3242) called for a mandatory annual appropriation of $470 million in mandatory funds from the Commodity Credit Fund to support the block grant program. The final bill authorized the program subject to annual appropriations, and limited funding to $44.5 million per year ($7 million was appropriated in FY 2006).