Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Saturday, March 10, 2007

Baldwin's Flex Act

Here is the link to H.R. 1371, which was introduced March 6 by Rep. Tammy Baldwin, D-Wisc., and three other Midwest members of Congress: Rep. Ray LaHood, R-Ill., Mike Pence, R-Ind., and Timothy Walz, D-Minn. Though the text of the bill, the bill is summarized:

To amend the Farm Security and Rural Investment Act of 2002 to provide producers on a farm with greater flexibility in selecting the crops to be planted on the base acres of the farm.


Of course, this would remove the restrictions on planting fruits and vegetables on program crop acreage - heavily opposed by produce interests. Here is the link to Baldwin"s press release.

From Baldwin's release:

Currently, farmers who choose to plant fruits and vegetables on their base acreage, are doubly penalized for doing so, in that 1) they will not receive the direct payments on those base acres on which they plant the fruits and vegetables, and 2) they must pay an additional financial penalty based on the market value of the fruits and vegetables they plant.
As a result, most producers cannot reduce their reliance on the farm commodity programs by rotating vegetable production onto their land and pursuing canning contracts. Consequently, processors have experienced inadequate supplies of fruits and vegetables for canning.
Farm Flex removes the planting restriction on fruits and vegetables. While producers who choose to plant fruits and vegetables on base acres would not receive direct commodity payments for that acreage, neither would they have to pay an additional penalty. In addition, their historical record of base acreage would not change.


FARM FLEX would allow fruit and vegetable (FAV) production for processing on unsubsidized program acres without jeopardizing the farm’s base acreage (acres eligible for enrollment in future government farm programs).
NO SUBSIDY, SAVES MONEY -- Farm Flex would reduce the farm’s program payments for the acreage planted in FAVs. No farm program subsidy would be paid on Farm Flex FAV acreage. CBO has scored Farm Flex as a budget reduction.
BETTER PROTECTION FOR FRESH -- Farm Flex pertains ONLY to FAVs under contract for processing. Farm Flex production would not enter fresh markets. Farm Flex would increase protection of fresh markets from Midwest FAV production.
LIMITED IMPACT -- The current FAV restrictions and Farm Flex affect only Midwest farms, where nearly all productive land is enrolled in a farm program, the double crop exemption is not relevant, and farm and producer histories are inadequate.


TK: Advertised as a way to make farm programs WTO-compliant, this bill will be heavily supported by Midwest farm state lawmakers, and the Administration's backing will make it an uphill climb for the industry to turn it back. United's Week in Review restates the association's opposition and says removing the restriction would result in a $3 billion reduction in income to specialty crop growers.

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