Food, Conservation, and Energy Act of 2008

Horticulture and Organic Agriculture Titles

Source – USDA, ERShttp://www.ers.usda.gov/FarmBill/2008/Titles/TitleXHorticulture.htm

Craig A. ChaseFarm Management Field Specialist

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 PROG• TITLE XIII—COMMODITY FUTURES• TITLE XIV—MISCELLANEOUS• TITLE XV—TRADE AND TAX PROVISIONS

Farm Bill• $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.

Farm Bill – Title XHorticulture and Organic Agriculture

• Pages 447-462 of HR 6124…

• Subtitle A—Horticulture Marketing and Information

• Subtitle B—Pest and Disease Management

• Subtitle C—Organic Agriculture

• Subtitle D—Miscellaneous

SPECIALTY CROPSSubtitles A, B, and D

Title X: Horticulture and Organic Agriculture

Specialty Crops - Defined

• Definition as outlined in the Specialty Crops Competitiveness Act of 2004.

• The term ‘‘specialty crop’’ means fruits and vegetables, tree nuts, dried fruits, and nursery crops (including floriculture).

• However, note that honey, honey bees, and mushrooms are also included in this section of the farm bill.

SPECIALTY CROPS COMPETITIVENESS ACT OF 2004

• Purpose: To ensure an abundant and affordable supply of highly nutritious fruits, vegetables, and other specialty crops for American consumers and international markets by enhancing the competitiveness of United States-grown specialty crops, and for other purposes.

• Funding was authorized but never received…

Title X: Specialty Crop Competitiveness

• Continues Specialty Crop Block Grant Program through FY 2012. Increases mandatory levels of funding to:– $10M FY 2009; $49M FY 2009; $55M/year

FY 2010-12

• Each State is to receive $100,000 or 1/3 of 1% of total funding for each fiscal year, whichever is higher. If state does not spend its full amount, money will be reallocated to other States.

Specialty Crop Competitiveness – cont’d

• Add horticulture to definition of “specialty crop.”

• Adds Guam, American Samoa, U.S. Virgin Islands, and Northern Mariana Islands to list of eligible “States.”

• Authorizes $200M annually for FY 2008-2012 for Market Access Program (Title III).

Pest Eradication and Detection

Funds are to be used for:• “Early Plant Pest Detection and Surveillance

Improvement Program” to make funding available to States through cooperative agreements for early detection of plant pests newly introduced to U.S. or certain states or areas.

• “Threat Identification and Mitigation Program” to assess risks of foreign plant pests and diseases, and to implement plans to help prevent introduction and widespread dissemination of high-consequence plants and diseases.

Pest Eradication and Detection – cont’d

• “Specialty Crop Certification and Risk Management Systems” to develop audit based certification systems, such as best management practices, to mitigate risk or pests in movement of plants and plant products and to develop nursery plant pest risk management systems.

Specialty Crop – Pest Eradication and Detection

• Program Funding Available :

• $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.

National Clean Plant Network

• Creates National Clean Plant Network to house clean plant material throughout U.S. for pathogen diagnosis and elimination. Allows available clean plant material to be used by State-certified plant programs and by private nurseries and producers.

• $5 million funding for each fiscal year from 2009- 2012.

Pest and Disease Revolving Loan Fund

• Appropriates funds for loans to local governments to finance purchases of equipment to monitor, remove, dispose of, and replace infested trees located in local government jurisdiction and within quarantine areas infested by plant pests. Maximum amount available to a local area is $5M.

• Permits funding through cooperative agreements with local governments related to eradication, prevention, control, or suppression of plant pests.

Misc• Census of Agriculture – Includes specialty crops as part

of each Census of Agriculture.• Hass Avocado Marketing Order – Secretary of Agriculture

to initiate procedures to determine if Hass avocado industry elects to have a new marketing order that would establish grades and standards for Hass avocados in addition to existing promotion and research program.

• Mushroom Promotion, Research, and Consumer Information Program – Changes numbers of regions represented on Board, and number of pounds required for representation in regions, to reflect geographic distribution of mushroom growers and their productivity. Also allows for development of food safety practices under mushroom research and promotion order.

Misc

• Clementine Marketing Order – If a Clementine marketing order is requested and approved by the industry, Clementine imports must meet marketing order requirements.

• National Honey Board – Authorizes honey industry referenda regarding establishment of marketing board solely for U.S. honey producers and board for packers, importers, and handlers.

Food Safety Education Initiatives.

• Establishes program to educate persons involved in fresh produce industry, and public, about sanitary handling practices and ways to reduce pathogens in fresh produce.

• Authorizes $1 million annually for fiscal years 2008-2012.

Market News Activities - Specialty Crops

• Expands market news activities to provide timely price information on fruits and vegetables.

• Authorizes $9 million annually for fiscal years 2008 – 2012.

Farmers’ Market Promotion Program

• Adds an agri-tourism promotion program to categories of farmer-to-consumer direct marketing activities eligible for funding.

• Provides mandatory funding of:– $3M for FY 2008; $5/year for FY 2009-10;

$10M/year for FY 2011-2012

• Requires at least 10% of funds to be used to support use of electronic benefit transfers from Federal nutrition programs at farmers’ markets.

Market Loss Assistance - Asparagus

• Authorizes payments to producers currently growing asparagus for revenue losses during crop years 2004-2007 due to imports. Mandates funding of $7.5M for producers of processed frozen asparagus.

Grants to Improve Transporting

• Authorizes grants to improve cost-effectiveness and address intermodal deficiencies of transporting specialty crops to local, regional, and international markets. Grants available to State and local governments; grower cooperatives; national, State, or regional producer, shipper, or carrier organizations; and other approved groups.

ORGANIC AGRICULTURESubtitle C

Title X: Horticulture and Organic Agriculture

Organic Agriculture: Cost-Share Assistance for Organic Certification

• Increases mandatory funding for National Organic Certification Cost-Share Program to $22M in FY 2008, to remain available until expended. Maximum Federal cost share remains at 75%, but cap increases to $750 per operation.

• Adds State and Federal recordkeeping requirements, and requires Secretary to submit annual report to Congress describing State expenditures.

Organic Production and Market Data and Economic Research and Analysis

• $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.

Organic Production and Market Data cont’d

Objectives are to:• Collect and distribute comprehensive reporting

of prices relating to organically produced agricultural products.

• Conduct surveys and analysis and publish reports of organic production, handling, distribution, retail and trend studies (including consumer purchasing patterns).

• Develop surveys and report statistical analysis on organically produced agricultural products.

National Organic Program

• Authorizes $5 million for fiscal year 2008 (now $2.6M) for USDA’s program that regulates organic standards and certification.

• Increases authorized funding to $11 million by fiscal year 2012.

SPECIALTY CROP AND ORGANIC AGRICULTURE

CONNECTIONS TO OTHER FARM BILL COMPONENTS

Title I• Planting Flexibility

– Retains provision on planting restrictions for fruits, vegetables, and wild rice, excluding mung beans and pulse crops (dry peas, lentils, small chickpeas, and large chickpeas) on base acres.

Planting Flexibility – cont’d• Authorizes pilot planting flexibility project for CY

2009-2012 to allow production of cucumbers, green peas, lima beans, pumpkins, snap beans, sweet corn, and tomatoes for processing on up to 1,000 base acres in Iowa.

• To be eligible for the pilot, producers had to have entered into contract to produce the specified crop for processing, agree to produce crop as part of a program of crop rotation, and provide evidence of disposition of crop. Base acres are reduced per crop year by an acre for each acre planted under the pilot program.

Title II• CRP Transitions

– Special treatment of CRP land transitioning from retiring farmer or rancher to beginning or socially disadvantaged farmer or rancher includes:

• Beginning 1 year prior to contract termination date, allow new farmer or rancher to make land improvements and begin organic certification process.

• …

– Authorizes $25M in funding for FY 2009-12 to facilitate these transitions.

Title II• EQIP

– Conservation practices related to organic production and transition are now eligible, but payments to producers or entities are limited to $20,000 annually and $80,000 over 6-year period.

Title II• CSP

– Requires Secretary to establish means for producers to initiate organic certification while participating in new CSP.

– Requires Secretary to ensure that outreach and technical assistance are available to organic and specialty crop producers and that program specifications are appropriate for participation of these producers.

Title II• Ag Mgt Assistance Program

– … funds for conservation programs…– Allocates funding as follows:

• 50% through NRCS for various conservation practices

• 40% through RMA for any risk-reduction activities• 10% for assistance in organic certification through

USDA’s Agricultural Marketing Service.

Title II• Technical Assistance for Organic

Conservation Practices– Requires Secretary to ensure, to maximum

extent possible, that:• Appropriate range of conservation practices and

resource mitigation measures is available to specialty crop, organic, and precision agriculture producers.

• Conservation-practice standards incorporate specialty crops, organic and precision agriculture.

• Adequate technical assistance is available for implementing conservation practices for specialty crops, organic, and precision agriculture.

Title III• Technical Assistance for Specialty Crops

(TASC) Program– Provides funding to public and private U.S.

organizations for technical assistance to address unique sanitary, phytosanitary, and technical barriers that prohibit or threaten export of U.S. specialty crops.

– Authorizes funding of $4M for FY 2008, $7M for FY 2009, $8M for FY 2010, $9M annually for FY 2011-2012.

Title IV• Local and Regional Food Aid Procurement

Projects– Mandates $20M to carry out point-of-purchase pilot to

encourage households to purchase fruits, vegetables, or other healthful foods.

– Authorizes funding as needed for pilot projects for each of FY 2008-2012 to develop and test strategies for:

• Using program to improve diet and health status among eligible population.

• Reducing obesity and diet-related disorders in U.S. population.

– Requires independent evaluations of all pilot projects.

Title IV• Benefit Insurance

– Relinquishes Federal obligation to redeem food stamp coupons and recognizes EBT cards as only method for accessing benefits at retail stores upon enactment.

Title IV• Fruit and Vegetable Promotion

– Expands mandatory funding. All funds remain available until expended.

– Allows that participating elementary schools are to be selected by States with priority generally given to schools with highest proportion of children eligible for free or reduced-price school meals. Requires State agencies to initiate special outreach to such children.

Title IV• Healthy Urban Food Enterprise Development

Center– Authorizes establishment of a Healthy Urban Food

Enterprise Development Center to increase underserved communities’ access to healthy foods, including locally grown and produced agricultural products.

– Directs Center to provide technical assistance and authorizes Center to competitively award subgrants to carry out feasibility studies and to establish and assist enterprises that process, distribute, aggregate, store, and market healthy, affordable foods.

– Provides funding $1M annually 2008-11, $2M 20012.

Title IV• Farmers’ Market Nutrition Programs

– Extends authorization of Senior Farmers’ Market Nutrition Program through FY 2012, with mandatory funding of $20.6M annually.

– Disallow value of any benefit provided by program to be considered as income or resources and prohibits collection of State and local sales tax on purchases of food made with program benefits.

Title IV• Locally Produced Foods

– Directs Secretary to encourage institutions, such as schools, that receive funds from child nutrition programs to purchase unprocessed agricultural products, both locally grown and locally raised, to maximum extent practicable and appropriate. Allows use of geographic preference in procurement in all programs funder under NSLA, Child Nutrition Act, and DoD Fresh Program.

Title IV• Emergency Food Infrastructure Grants

– Authorizes, subject to appropriations, competitive grants totaling $15M/year through FY 2012 to expand capacity and infrastructure of food banks to:

• Improve their ability to handle perishable food products.• Improve identification of potential providers of donated food• Support procurement of locally produced food from small

family farms and ranches.

– Requires that 50% or more of grant funds by targeted to agencies that predominantly serve rural communities.

Title V• Conservation Loan and Loan Guarantee

Program– …Gives priority to qualified beginning farmers,

ranchers, socially disadvantaged farmers or ranchers, owners or tenants who use the loans to convert to sustainable or organic agricultural production systems, and producers who use the loans to build conservation structures or establish conservation practices

– Loan guarantees are 75% of principal amount of loan and loans are to be disbursed geographically to maximum extent possible. Borrowers must be unable to obtain credit elsewhere.

Title VII• Pollinator Research

– Authorizes annual appropriations of $10M in research and extension grants for honey bees and other pollinators for FY 2008-12. Activities supported include:

– Research on colony collapse disorder, including parasites and pathogens,

– Other research listed…

Title VII• Specialty Crops

– Establishes Specialty Crop Research Initiative to provide research and extension grants to address specific crops and their regions. Grants are awarded on competitive basis, and must be matched by non-Federal source. Mandates funding of $30M for FY 2008 and $50M annually FY 2009-12. Authorizes additional funding of $100M. Includes research addressing:

• Productivity and profitability• Food safety, including that related to fresh produce• Other items listed…

Title VII• Organic Agriculture

– Adds new purposes to Organic Agriculture Research and Extension Initiative:

• Study conservation and environmental outcomes of organic practices.

• Develop new and improved seed varieties for use in organic production systems.

– Increase mandatory funding to total of $78M for FY 2009-12. Authorizes additional appropriations of $25M for FY 2009-2012.

Title XI• Country-of-Origin Labeling

– Adds chicken (whole and in parts), goat meat, ginseng, pecans, and macadamia nuts.

– Designation of U.S. State, region, or locality where commodity was produced is sufficient to identify U.S. as country of origin for perishable commodities, ginseng, peanuts, pecans, and macadamia nuts.

Title XII• Insurance of Organic Crops

– Requires FCIC to contract studies of organic production coverage improvement. Unless studies document “significant, consistent, and systematic variations in loss history between organic and nonorganic crops,” requires FCIC to eliminate or reduce premium surcharge for organic production. Studies to include development of procedure to offer additional price election that reflects actual prices received for organic crops.

Title XII• Emergency Assistance for Livestock,

Honey Bees, and Farm-Raised Fish– Provides emergency relief to eligible

producers of livestock, honey bees, and farm-raised fish for losses due to disease, adverse weather, or other conditions not covered by Supplemental Revenue Assistance Payments, Livestock Indemnity Payments, or by Livestock Forage Disaster Program. Total payments limited to $50M/yr.

Title XII• Orchard and Nursery Tree Assistance

– Provides assistance to eligible orchardists and nursery tree growers for trees lost to natural disasters. Assistance included reimbursement of 70% of cost of replanting trees in excess of normal mortality or sufficient seedlings to reestablish stand and reimbursement of 50% of cost of salvaging damaged trees and preparing land to replant trees in excess of normal mortality.

Title XV• Unused Merchandise Drawback

– Tightens definition of “commercially interchangeable,” requiring domestic wine that will be exported to receive the duty drawback to be of the same color as imported wine and have price variability of no greater than 50% of value of the imported wine.

Questions…..

Any questions or comments?

Thank You for This Opportunity!

Craig A. ChaseFarm Management Field Specialist

720 7th Avenue SWTripoli, IA 50676(319) 882-4275

cchase@iastate.edu