What the farm bill does for f/v producers

The House Agriculture Committee has released a document geared to f/v producers. It can be found at the Fresh Produce Industry Discussion Group and here published on Google.

It aims to be a convincing sell job on the House Ag Committee's work, though it doesn't mention that the fruit and vegetable snack program must rely on reserve funds or "funny money" for national expansion.

I talked to a Farm Bureau lobbyist today who said that that the fruit and vegetable industry should be pleased that Collin Peterson's version of the farm bill keeps the planting prohibition in place. "I'm surprised how little talk there is about removing the planting prohibition, and there is not a lot of rumbling about doing that," the lobbyist said. The source added that the fact that specialty crop block grants were made mandatory was a "huge win" for fruit and vegetable growers.

TK: Fruit and vegetable growers should be happy, conventional wisdom says. I think the industry can't afford to accept current terms. Mandatory funding for expansion of the fruit and vegetable snack program has to be a part of this farm bill.

Valley notes

I was talking to a USDA market news reporter in Fresno late this morning and she said that temps were only in the 100-104 range this week. That's much more bearable than the 110-112 degree temps of last week, she observed. Of course, that's easy for us to say, sitting in air conditioned comfort - but I'm sure she has a point.

She mentioned the USDA hopes to begin an f.o.b. for organic grapes from California in about two weeks. I asked what the premium for organic grapes has been running of late, and she said that organic grapes have in recent trading notched a $3 per lug premium over conventional grapes. Overall grape prices have been lower than last year with Mexico's volume stronger longer, and California grape prices are very promotable. Flames with medium berry sizes are approaching the $10 per carton level. By rights, that should translate into some 99 cents per pound retail ads for seedless grapes in the not-too-distant future.

Meanwhile, a tree fruit shipper in Kingsburg reports that white flesh peaches and nectarines are trading to good demand; ample supply was anticipated through August. Sizes were peaking on 48s and larger, and the price range of $13-17 per carton was expected to persist.

Tuesday at 2 pm

The Specialty Crop Farm Bill Alliance is expected to meet at 2 pm this afternoon in Washington and release a statement later today or perhaps tomorrow about the chairman's mark of the farm bill. Initially, the thought was that the industry would push equally on all their priorities, with any cutbacks from the lofty goals suffered on a pro-rated basis to everyone. Now, after Chairman's Peterson's mark has been released - with paid for funds for some priorities like specialty crop block grants but not for others, particularly the fruit and vegetable program. What will be the posture of the alliance after the release of the chairman's mark?

The money is not good enough yet to merit enthusiastic support from the industry, for one thing. I'm sure the industry would like at least a couple of billion over five years, rather than $675 million over five years.

One has to wonder why Chairman Peterson didn't allocate any paid-for funds for the fruit and vegetable program. Perhaps the thinking was that Sen. Tom Harkin will be an effective advocate for the fruit and vegetable snack program on the Senate side, and some kind of consensus can be reached in the conference committee.

'"We are disappointed that there doesn't seem to be a change in philosophy at the committee level to recognize the importance of fruits and vegetables in the the (farm bill) process," one industry lobbyist told me. "We're very united in pushing for the total package and work with the the Congress within the realm of the possible," the lobbyist said.

Meanwhile, here is how the $675 million in paid for fruit and vegetable priorities in the chairman's mark breaks down, according to a source on Capitol Hill (scored over five years)

$150 million for value added grants for rural development
$265 million for specialty crop block grants
$200 million for pest disease management
$35 million Farmers market nutrition program
$22 million: Organic certification cost sharing
$3 million: Organic data

TK: Full committee markup is scheduled to begin July 17, and that process has an uncertain duration at this point, a source close to the Agriculture Committee said.

The mushroom provisions

Some of the language included in Title X - horticulture and organic provisions - of House Agriculture Committee Chairman Rep. Collin Peterson's mark of the 2007 farm bill relates directly to the mushroom industry.

One is merely updating the parameters for regions and representatives for the Mushroom Council, as governed by the Mushroom Promotion, Research and Consumer Information Order.
The USDA issued a rule effective July 27 that will accomplish some of the same things that the farm bill language is intended to address. However, the farm bill language will be a clean and tidy fix to the issue, while the USDA rule is described as a "band aid".
In the end, the Mushroom Council will reduce the domestic regions represented on the board from four to three and also create a new region for imports. Representatives from the regions will be determined by production, with a total of nine representatives on the council's board.

Laura Phelps, president of the American Mushroom Institute, Washington, D.C., - the lobbying arm of the mushroom industry - said the more important and forward-looking provision in the farm bill language from Chairman Peterson and the House Agriculture Committee relates to the possible involvement of the mushroom promotion order with food safety oversight.
In particular, the language in Chairman Peterson's mark revisits the "powers and duties" of the council:

(b) POWERS AND DUTIES OF COUNCIL.—Section 3 1925(c) of the Mushroom Promotion, Research, and Consumer Information Act of 1990 (subtitle B of title XIX of Public Law 101–624; 7 U.S.C. 6104(c)) is amended—(1) by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8), and (9), respectively; and (2) by inserting after paragraph (5), the following new paragraph (6): ‘‘(6) to develop a program for good agricultural practices and good handling practices for mushrooms;’


TK: This language would provide the authority to the Mushroom Council to develop a program for good agricultural practices/good handling practices for mushrooms - the first time a USDA research and promotion act would be vested with that authority. That isn't to say the Mushroom Council has decided to develop good agricultural practices for the industry, Phelps said. And even if they did, the process would still involve rule making and a comment period with oversight by the USDA.

En bloc amendment

If Congress finds $18 billion lying under a stone, House Agriculture Committee chair Collin Peterson knows exactly how to spend it. Here are some details of the 61-page Reserve Fund En bloc amendment, as described on the House Agriculture Web site:

The Congressional Budget Resolution for FY 2008 includes a reserve fund for agriculture. Under the terms of the resolution, up to $20 billion in additional budget authority over 5 years may be allocated to the farm bill to the extent that other legislation is passed to offset the additional amount. The Reserve Fund En Bloc amendment includes proposals which, if approved by the Agriculture Committee, will be presented for consideration by the House as offsets are obtained.

TK: The USDA fruit and vegetable snack program is found here, with authorization for $100 million for at least 50 elementary or secondary schools in each state but still relying on budget offsets to get funding. I don't see how a 2007 farm bill passes without mandatory money for expansion of the fruit and vegetable program at schools. The specialty crop research initiative is also found in the unfunded En bloc amendment, with funding levels staked at $20 million for fiscal year 2008, escalating to $50 million for fiscal year 2011 - again dependent on finding offsets.