Sticker shock on aisle 1

This story looks beyond sticker shock at gas pumps and looks at the sticker shock in the grocery store. Of course, the two are related, as higher gas prices also increase the delivered costs of fruits and vegetables. The rising price of corn, tied to escalating ethanol demand, is also contributing to higher cereal, milk and meat prices. The story also notes the impact of the freeze on California citrus prices.

TK: Rising fuel and food costs will put pressure on household budgets and could suppress fruit and vegetable demand. Produce managers will have to keep a watchful eye on that reality this summer and come up with some creative ways to overcome that barrier to increased sales.

Totally non-produce related: I'm a proud papa - My daughter's gold medal relay race last Saturday - she is first off the block

Disaster assistance for ag

There is relief for farmers in a supplemental appropriations bill, but not as broad as originally sought. From the House Ag Committee Web site:


WASHINGTON, DC – Despite stiff opposition from President Bush, the U.S. House of Representatives has prevailed to pass a supplemental appropriations bill that includes about $3 billion for agriculture disaster assistance that will provide needed relief to farmers and ranchers nationwide who experienced serious losses in 2005-2007.

After President Bush vetoed the supplemental spending legislation that included agriculture disaster assistance, House Speaker Nancy Pelosi and Democratic leaders negotiated a compromise bill with the White House that will still provide agriculture disaster assistance.

Earlier this month when the House considered the supplemental appropriations bill again, President Bush issued a veto threat, citing the proposed agriculture disaster assistance provisions as “unnecessary and unwarranted.”

However, House leaders recognized the reality facing rural communities nationwide – that natural disasters including floods, droughts, wildfires, heat waves, blizzards, freezes and other weather related events have caused serious damage to farmers and ranchers. In these communities, the proposed disaster assistance is both necessary and warranted.

“I appreciate the House Leadership for remaining steadfast in their support for this assistance, which will help our rural communities recover from weather-related disasters that have damaged local economies over the past few years,” said Agriculture Committee Chairman Collin Peterson. “This Congress has delivered a fiscally responsible package that meets the most pressing needs for assistance in agriculture and rural communities.”

The agriculture disaster assistance package includes assistance for farmers who lost 35% or more of their crop in 2005, 2006 or 2007 and for livestock producers in counties that experienced USDA designated natural disasters during that time. Producers can apply for a disaster payment for only one of those three years, and for the first time, only farmers who had insured their crop through crop insurance or the Non-Insured Assistance Program are eligible for payments.

A coalition of more than 30 farm and allied organizations consistently voiced strong support for the agriculture disaster assistance provisions in the supplemental appropriations bill.



TK: I earlier noted an incorrect USA Today report that said $25 million was still in the bill for spinach growers. That is not the case, as one of our readers points out. I'm still looking for a link for the full text of the Iraq supplemental spending bill. Anyone have that?

Produce Guru

No, it's not my self appointed title. Produceguru.com is a new Vance Web site, a kind of online Produce Guide for consumers. Right now it is still in Beta version, so work is ongoing. You can take a peek at it now. You may be asking, What is produceguru.com? I'm glad you asked.
From the site:

Welcome to ProduceGuru – your portal to everything you need to know about the delicious fruits and vegetables you enjoy. Here, you’ll find answers to all kinds of questions – from why you should eat more produce to how to prepare artichokes. If it’s a specific fruit or vegetable you’re interested in, either click on the fruit or vegetable pull-down tab at the top, or type the name in the search tool. Once you enter the world of your chosen produce item, you’ll find loads of background and variety information, nutrition specifics, serving sizes, preparation ideas and care and handling tips. Perhaps you’ve read about a specific nutrient offered by some fruits and vegetables, and you want to investigate it. Just use the search tool to locate the nutrient.For a broader sweep of the produce world, check out the tabs on the left. For example, stay current with everything going on in the ever-changing realm of produce by clicking on the “Produce in the News ” tab. We scan hundreds of newspapers and magazines and pass along what's important to you, whether it's new cooking methods, breaking news about food safety or seasonal produce information.As you think of adding more healthy produce to the dinner plate, no doubt you’ve grappled with such questions as, “How can I get my child to eat more fruits and vegetables?” or “What’s really the deal with organics?” You can find answers to those questions by clicking on the appropriate tab at the left. And if you’re not convinced that there’s any good in the greens, just look at the “Produce and Your Health” section. Whatever we’ve missed in ProduceGuru, hopefully you will find it in the links provided throughout or in the “Links” section at the left. Otherwise, if there’s a fruit or vegetable not listed on this site that you would like to learn more about, or you think of an idea that would make this site more complete, we want to hear from you. Simply click on the “Submit an Idea” link at the bottom.It’s time to get started on your journey into the wild-and-tasty, living-and-breathing world of fruits and vegetables.

TK: I like the light, fresh look of the site. I know a lot of work has been done to load it with useful information and work continues. Check it out and drop us a line, leave us a comment and tell us what you think.

The cost of reform

The CBO has released a preliminary review of the comprehensive immigration legislation and its impact on the federal budget.
From the report:

The Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) have conducted a preliminary review of Senate Amendment 1150, in the nature of a substitute for S. 1348, the Comprehensive Immigration Reform Act of 2007. CBO plans to release a more detailed and formal cost estimate for the legislation in the next several days. In the meanwhile, we can provide the following preliminary information:
• CBO and JCT estimate that enacting S. Amdt. 1150 would increase federal direct spending by $13 billion to $17 billion over the 2008-2012 period and by $32 billion to $38 billion over the 2008-2017 period. Over the 10-year period, about 4 percent of those totals for direct spending would be for Social Security benefits, which are classified as off-budget. The single largest component of the expected direct spending is for outlays from refundable tax credits, estimated by JCT.
• CBO and JCT estimate that enacting the substitute amendment would result in a net increase in federal revenues of $15 billion to $19 billion over the 2008-2012 period and a net increase of $70 billion to $75 billion over the 2008-2017 period. Increased revenue from Social Security payroll taxes, which are classified as off-budget account for most of the changes in revenues over the 10-year period

S. Amdt. 1150 would impose intergovernmental mandates, as defined in the Unfunded Mandates Reform Act (UMRA), because it would preempt state and local authority and require states, local, and tribal governments to verify the work eligibility of employees. CBO estimates that the cost, if any, of complying with the preemptions would be small. The cost of complying with the requirements to verify work eligibility would depend on regulations to be developed by the Department of Homeland Security (DHS). Until the regulations are developed, CBO cannot determine whether the total costs to state, local, and tribal governments would exceed the annual threshold established in UMRA ($66 million in 2006, adjusted annually for inflation).
• The amendment also would impose private-sector mandates, as defined in UMRA, on employers and other entities that hire, recruit, or refer individuals for employment. The most costly mandate would require all employers and other entities to verify the employment eligibility of workers. Based on the large number of individuals that employers and other entities would be required to verify under the bill, CBO expects that the aggregate direct costs of the mandates would exceed the annual threshold for private-sector mandates ($131 million in 2007, adjusted annually for inflation) in at least one of the first five years the mandates are in effect.


TK: There will be both increased revenues and greater federal spending with immigration reform. Employers will pay more to verify worker eligibility. Ag employers will gladly do so if there are in fact eligible workers available.