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Horticulture and Organic Agriculture Food, Conservation, and Energy Act of 2008 2008 National Farm Bill Education Conference Kansas City, July 8-9, 2008 Esendugue Greg Fonsah Associate Professor & Extension Economist Department of Ag & Applied Economics Fruit, Vegetable and Pecans

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Horticulture and Organic AgricultureFood, Conservation, and Energy Act of 20082008 National Farm Bill Education ConferenceKansas City, July 8-9, 2008

Esendugue Greg Fonsah

Associate Professor & Extension Economist

Department of Ag & Applied Economics

Fruit, Vegetable and Pecans

University of Georgia

Tifton, Georgia

2002 vs 2008 farm bill titles
2002 Farm Bill Titles

Title I – Commodity Programs

Title II – Conservation

Title III – Trade

Title IV – Nutrition Programs

Title V – Credit

Title VI – Rural Development

Title VII – Research and Related Matters

Title VIII – Forestry

Title IX – Energy

Title X - Miscellaneous

2008 Farm Bill titles

Title I – Commodity Programs

Title II – Conservation

Title III – Trade

Title IV – Nutrition

Title V – Credit

Title VI – Rural Development

Title VII – Research and Related Matters

Title VIII – Forestry

Title IX – Energy

Title X – Horticulture and Organic

Agriculture

Title XI – Livestock

Title XII – Crop Insurance and Disaster

Assistance Programs

Title XIII – Commodity Futures

Title XIV – Miscellaneous

Title XV – Trade and Tax Provisions

2002 Vs. 2008 Farm Bill Titles
where is the spent
Where is the $ Spent?
  • $289 Billion net budget and revenues
  • CBO scored at $307 Billion for the 2008-2012 period
    • $209 billion or (68%) is for nutrition programs,
    • $35 billion or (11%) is for agricultural commodity programs,
    • $25 billion or (8%) is for conservation programs.
title x horticulture and organic agriculture
TITLE X – HORTICULTURE AND ORGANIC AGRICULTURE

Subtitle A – Horticulture Marketing and Information

Sec. 10104: Mushroom promotion, research and consumer information

  • The mushroom production area was reduced to 3 regions instead 4
  • It requires the formation of a Mushroom Regional Council with 9 members maximum
  • Membership representation is based on annual regional production.
sec 10104 cont
Sec. 10104 cont.
  • One additional member if annual production >110 million lbs <180 million lbs.
  • Two additional members if annual production >180 million lbs < 260 million lbs.
  • Three additional members if annual production >260 million lbs

Functions:

  • To Develop Good Agriculture and handling practices for the mushroom industry and make recommendations to the Secretary of Agriculture
section 10105 food safety education initiatives
Section 10105: Food Safety Education Initiatives.
  • The objective is to carry out food safety educational program to educate the public and the actors of the fresh produce industry about:

A. Scientific proven practices for reducing

microbial pathogens on fresh produce and;

B. How to reduce the threat of cross-contamination

of fresh produce through sanitary handling

practices.

C. $1 million for each fiscal years 2008-2012

allocated.

sec 10106 farmer s market promotion program
Sec. 10106: Farmer’s Market Promotion Program
  • This program will be funded by the Commodity Credit Corporation (CCC).
  • $3 million for fiscal year 2008;
  • $5 million for 2009 -2010;
  • $10 million for each fiscal year 2011 & 2012;
  • At least 10% of allocated funds for each year will be use to support the use of electronic benefit transfer for Federal nutrition programs at farmer’s markets.
sec 10107 specialty crops market news allocation
Sec. 10107: Specialty Crops Market News Allocation
  • The objective is to provide price and shipment information of specialty crops throughout the United States on a timely manner.
  • $9 million each from 2008 - 2012
what are specialty crops
What are Specialty Crops?
  • Definition by Congressional Research Service (CRS):
  • Specialty crops include the following:
  • Fruits and vegetables,
  • Tree nut and nursery crops or producers,
  • Processors,manufacturers and wholesalers,
  • Importers and exporters.
sec 10109 specialty crop block grants
Sec. 10109: Specialty Crop Block Grants.
  • The block grant is for the following states:
  • Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.
  • $100,000 for each fiscal year from 2008-2012 or
  • 1/3 of 1% of the total amount of funding available for each fiscal year.
  • The other states will receive the following:
  • $10 million for fiscal year 2008;
  • $49 million for fiscal year 2009; and
  • $55 million for fiscal year 2010 – 2012.
subtitle b pest and disease management
Subtitle B: Pest and Disease Management

Specialty Crop Certification and Risk Management:

  • Funds have been provided for the following:
  • Technical assistance to specialty crop growers,
  • Organizations representing specialty crops growers; and,
  • Organization for the development and implementation of:
  • Audit-based certification systems, such as best management practices, and;
  • Nursery plant pest risk management systems in collaboration with:
  • The nursery industry,
  • Research institutions; and,
  • Other appropriate entities.
specialty crop certification and risk management cont
Specialty Crop Certification and Risk Management cont.
  • Fundings through Commodity Credit Corporation (CCC) are as follows:
  • $12 million for fiscal year 2009;
  • $45 million for fiscal year 2010;
  • $50 million for fiscal year 2011;
  • $50 million for fiscal year 2012 and thereafter.
sec 10202 national clean plant network
Sec. 10202. National Clean Plant Network
  • This section requires a network of clean plant centers for diagnostic and pathogen elimination services to do the following:
  • Produce clean propagative planting materials
  • Maintain blocks of pathogen-tested plant material in sites located throughout the United States.
  • $5 million was allocated for each fiscal year from 2009- 2012.
subtitle c organic agriculture
Subtitle C:Organic Agriculture

Sec. 10301: National Organic Certification Cost-share Program

  • $22 million allocated for fiscal year 2008 compared to only $5 million in 2002
  • By March 1st of each year, the Secretary is obliged to submit a report explaining the number of producers and handlers per state who benefited from this program.
  • The report will be submitted to the Committee on agriculture of the House of Representatives and Committee on Agriculture, Nutrition and Forestry of the Senate.
sec 10302 organic production and market data initiatives
Sec. 10302: Organic Production and Market Data Initiatives
  • This section requires the collection of production and marketing data for organic agricultural products.
  • Collection and distribution of prices for organic agricultural products
  • Conduct surveys and analysis and publish reports of organic production, handling, distribution, retail and trend studies
  • Develop surveys and report statistical analysis on organically produced agricultural products.
sec 10302 organic production and market data initiatives cont
Sec. 10302: Organic Production and Market Data Initiatives cont.
  • $5 million allocated for each fiscal year from 2008 – 2012.
  • The Secretary is required to submit a report not later than 180 days after the program is enacted with the following:
  • Description of progress made in implementing this section;
  • Identifying any additional production and marketing data needs.
sec 10303 national organic program
Sec. 10303: National Organic Program
  • The following funding were provided for the National Organic Program:
  • $5 million for fiscal year 2008;
  • $6.5 million for fiscal year 2009;
  • $8 million for fiscal year 2010;
  • $9.5 million for fiscal year 2011;
  • $11 million for fiscal year 2012.
subtitle d miscellaneous
Subtitle D: Miscellaneous

Sec. 10404: Market Loss Assistance for Asparagus Producers.

  • Payment for 2007 asparagus crop for market loss due to imports during 2004 through 2007 crop years.
  • Payment rate shall be based on the reduction in revenue received by asparagus producers associated with imports during 2004-2007
  • Payment quantity shall be the average quantity of the 2003 crop produced by producers on the farm.
sec 10404 market loss assistance for asparagus producers
Sec. 10404: market Loss Assistance for Asparagus Producers.
  • A total of $15 million funding through Commodity Credit Corporation (CCC).
  • $7.5 million for fresh market asparagus producers, and;
  • $7.5 million payment to processed and frozen market producers of asparagus.
title xi livestock
Title XI - Livestock
  • Sec. 11002: Country of Origin Labeling (COOL)
  • In subtitle ©, the following were added:

(vii) Meat produced from goat;

(viii) Chicken, in whole and in part;

(ix) Ginseng;

(x) Pecans; and

(xi) Macademia nuts

title xi livestock21
Title XI - Livestock

(4) Designation of Country of Origin for

Perishable Agricultural Commodities,

Ginseng, Peanuts, Pecans and

Macademia nuts –

  • A retailer can use the United States as

Country of Origin only if the covered commodity is exclusively produced in the U.S.A.

sec 1107 planting flexibility
Sec. 1107: Planting Flexibility

General limitations:

1. Agricultural commodity can be planted on base acres for peanut so long as it is destroyed before harvest.

2. The planting of trees or other perennial plant crops on base acres for peanuts is prohibited.

3. The planting of fruits, vegetables (other than mung beans and pulse crops), and wild rice shall be prohibited on base acres

sec 1107 planting flexibility cont 1
Sec. 1107: Planting Flexibility cont.1

Exceptions

1. In any region in which there is a history of double-cropping of covered commodities with agricultural commodities

2. On farm that the Secretary determines has a history of planting agricultural commodities except that direct payments and counter-cyclical payment shall be reduced by an acre for each acre planted to such an agricultural commodity; or

3. By the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity, except

sec 1107 planting flexibility cont 2
Sec. 1107: Planting Flexibility cont.2

A. The quantity planted may not exceed the average annual planting history of such agricultural commodity by 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and

B. Direct payment and counter-cyclical payments shall be reduced by an acre for each acre planted to such agricultural commodity

sec 1107 d planting transferability pilot project
Sec. 1107 (D): Planting Transferability Pilot Project

1. The Secretary shall carry out a pilot project to permit the planting of cucumber, green peas, lima beans, pumpkins, snap beans, sweet corn, and tomatoes grown for processing on base acres during each of the 2009 through 2012 crop years.

sec 1107 d which states are eligible for planting transferability pilot project
Sec. 1107 (D): Which States Are Eligible for Planting Transferability Pilot Project?

(A) 9,000 acres - Illinois;

(B) 9,000 acres – Indiana;

(C) 1,000 acres – Iowa;

(D) 9,000 acres – Michigan

(E) 34,000 acres – Minnesota

(F) 4,000 acres – Ohio; and

(G) 9,000 acres - Wisconsin

3 contract and management requirements pilot project
(3) Contract and Management Requirements – Pilot Project
  • To be eligible for this pilot project, the producer on the farm shall do the follows:

A. Producers interested in the pilot project must show proof that they have a contract to produced the covered crops for processing;

B. Agree to produce these crops as part of their crop rotation program which will enable them achieve agronomic, pest and disease management benefits; and

C. Provide evidence of the disposition of the crop

sec 1107 planting transferability pilot project cont
Sec. 1107: Planting Transferability Pilot Project cont.

(4) Temporary Reduction in Base Acres:

  • Total acres used for the pilot project to produce any of the covered crops will be subtracted from the based acres.

(5) Duration of Reductions:

  • The reduction of based acres for the pilot project will expire at the end of the crop year.
sec 1107 d planting transferability pilot project cont
Sec. 1107 (D): Planting Transferability Pilot Project cont.

(7) Pilot Impact Evaluation

(A) A periodic evaluation will be conducted to determine the effect of the pilot project on the supply and price of fresh fruits, vegetables and fruits and vegetables for processing.

(B) Determination

(i) Are producers of fresh F&V negatively impacted?

(2) Are existing production capacities being suplanted?

subchapter b conservation stewardship program
Subchapter B – Conservation Stewardship Program

Under Sec. 1238 F. Stewardship Contracts.

(H) Coordination with Organic Certification

  • Allow growers to start organic certification under the Organic Foods Production Act of 1990

(i) On-Farm research and demonstration of pilot

testing may be approved and;

(ii) Pilot testing of new technologies or innovative conservation practices may be approved under this sub-section.

sec 1240b establishment and administration
Sec. 1240B. Establishment and Administration

(i) Payment for Conservation Practices Related to Organic Production

  • Funds will be allocated for conservation practices on some or all of the growers operations, i.e.

(A) Related to Organic Production; and

(B) Related Transition to organic production

sec 1240b establishment and administration cont
Sec. 1240B. Establishment and Administration cont.

(2) Eligibility:

  • To qualify for this program, growers must accept to:

(A) Develop and carry out an organic

system plan; or

(B) Develop and implement the recommended conservation practices for certified organic production

sec 1240b establishment and administration cont 2
Sec. 1240B. Establishment and Administration cont.2

(3) Payment Limitations:

  • <= $20,000 aggregate per year or
  • $80,000 during 6 years period
  • This amount does not include payment received for technical assistance
sec 1240b establishment and administration cont 3
Sec. 1240B. Establishment and Administration cont.3

(4) Exclusion of Certain Organic Certification Costs

  • Payment under this section will not cover costs associated with organic certification that are eligible for cost-share payment under section 10606.

(5) Termination of Contracts:

  • A grower’s contracts may be terminated if:

(A) He/she is not pursuing organic certification; or

(B) He/she is not in compliance with the Organic Foods Production Act of 1990

who gets what from these
Who gets what from these $?
  • The farmers?
  • The researchers?
  • The Horticulture and Organic Agriculture industry?
  • How?
ers baseline forecasts of horticulture production values 2002 2016
ERS Baseline Forecasts of Horticulture Production Values, 2002-2016

Vegetable & Melons Outlook/VGS-318/December 14, 2006, ERS/USDA, pg. 14

average u s farm cash receipts for crops 2002 2004
Average U.S. farm cash receipts for crops: 2002-2004.

Lucier et al. (2006) “Fruit & Vegetable Backgrounder” ERS/USDA, VGS-313-01, April, pg 3.