Specialty crops and the 2008 Farm Bill
By Koren McWilliams
Lombardo and Gilles
The 2008 Farm Bill, titled the
”
Food, Conservation, and Energy Act of 2008
”
(P.L. 110-246, H.R. 6124), enacted earlier this year, contains
provisions on marketing; crop insurance and disaster assistance;
protection against pests and diseases; export promotion; research;
and domestic food assistance, among others. Of particular
importance to the Central Coast area is that the 2008 Farm Bill
includes, for the first time in farm bill history, a provision
advancing specialty and organic crops. This is exciting news as the
2008 Farm Bill dedicates approximately $1.6 billion over five years
for various specialty crop programs.
Specialty crops and the 2008 Farm Bill
By Koren McWilliams
Lombardo and Gilles
The 2008 Farm Bill, titled the “Food, Conservation, and Energy Act of 2008” (P.L. 110-246, H.R. 6124), enacted earlier this year, contains provisions on marketing; crop insurance and disaster assistance; protection against pests and diseases; export promotion; research; and domestic food assistance, among others. Of particular importance to the Central Coast area is that the 2008 Farm Bill includes, for the first time in farm bill history, a provision advancing specialty and organic crops. This is exciting news as the 2008 Farm Bill dedicates approximately $1.6 billion over five years for various specialty crop programs.
Specialty crops essentially include fruits, vegetables, tree nuts and nursery crops. In the aggregate, specialty crops make up 50 percent of all cash receipts in the United States, with the sales of fruits, vegetables and tree nut specialty crops making up almost one-third of such crop cash receipts, and one-fifth of United States agricultural exports. Interestingly, while specialty crops enjoy the lion’s share of cash receipts, such crops only occupy 3 percent of harvested cropland in the United States.
Focusing on agriculture, a couple of the key provisions in the 2008 Farm Bill that advance specialty crops include nutrition programs, market and business programs, education programs, programs that increase technology in production, and food safety.
Under the provisions of prior farm bills, the United States Department of Agriculture would purchase, and then donate, fruits, vegetables and nuts to domestic nutrition and food assistance programs. The prior 2002 Farm Bill required the USDA to spend $200 million for such programs. The 2008 Farm Bill requires the USDA to purchase an additional $190 million in 2008, and increasing annually to an additional $206 million in 2012 and thereafter. The USDA donations of these purchases benefit low-income school children, family child care homes, and others.
In order to increase children’s consumption of fruit and vegetables, the 2008 Farm Bill allocates $100 million per year in mandatory funding to select low-income schools in each state for the purchase of at least one daily fresh fruit or vegetable snack during the school day, but outside of the school meal programs. Schools participating in this program have the preference of choosing local products.
Over $20 million per year is provided as mandatory funding for grants to state and Indian tribal governments to provide low-income seniors with coupons that can be exchanged at certified farmers markets, roadside stands, and community supported agricultural programs for locally produced fresh fruits, herbs and vegetables.
Approximately $50 million annually is allocated to provide loans and loan guarantees for rural businesses involved in “locally produced food,” food distribution, processing and marketing.
“Value added” agricultural products (such as ready-to-eat bagged baby carrots) receive assistance by the allocation of $3 million per year for mandatory funding to provide matching grants to farmers and institutions for processing raw agricultural products into marketable goods. Organic producers are also eligible to receive these grants.
Over five years, $37 million is allocated to provide mandatory funding for the program Technical Assistance for Specialty Crops. TASC assists exporters of United States specialty crops to overcome other countries’ non-tariff trade barriers, such as restrictions based on concerns of plant pests or diseases. And speaking of plant disease and pest prevention, the 2008 Farm Bill provides over its five year period for $157 million in mandatory funding for early detection and surveillance and for exclusion of emerging pest and disease threats.
Specialty crops are to receive $230 million in mandatory funds for research in the areas of crop improvement, efficiency in production, identification of disease and pest threats, prevention and detection of food safety threats, and improved technologies in agricultural production. Also, grants awarded to states will promote and strengthen the specialty crop industry.
The National Organic Certification Cost-Share Program, created under the 2002 Farm Bill, authorized $5 million for the USDA to assist agricultural producers and handlers in obtaining organic certification. The 2008 Farm Bill extends the cost-share program by providing $22 million in mandatory funding and relaxing some of the restrictions of the prior 2002 Farm Bill by increasing the amount that a producer or handler can receive under the program. The 2008 Farm Bill also provides funding for research to improve the USDA’s collection of marketing and other information on organically produced agriculture. Such collection of information could help to improve understanding of the needs and obstacles organic producers and handlers face in farming organically. Also under the 2008 Farm Bill, conventional agricultural producers are eligible for technical assistance for converting their farms to organic production.
The 2008 Farm Bill also provides for $75 million in mandatory funding for a competitive grant program directed at supporting education and technical assistance, including entrepreneurial training, mentoring and apprenticeship, and other programs, for beginning farmers and ranchers.
The bottom line is that the 2008 Farm Bill provides a shot in the arm to the Central Coast region for those involved in the production of specialty crops. By providing funding for specialty crop programs, the 2008 Farm Bill shows the recognition of the importance of specialty crops to the Nation’s agriculture production and nutrition.
This column is the work product of Lombardo & Gilles, LLP, which has offices in Hollister and Salinas. Koren McWilliams is an attorney with Lombardo & Gilles, LLP. You may contact the author at (888) 757-2444 or [email protected]. Mail your questions to Koren McWilliams, It’s the Law, c/o The Pinnacle, 380 San Benito St., Hollister, CA 95023.
