New big money for f/v priorities

A staffer with Rep. Dennis Cardoza reports that the updated mark from House Agriculture Committe chairman Collin Peterson, to be unveiled tomorrow, will feature big increases in paid-for fruit and vegetable/specialty crop priorities. How big? The fruit and vegetable snack program goes from relying totally on reserve funds to being allocated $350 million in real money over five years. Specialty crop block grants go from $265 million over five years to $365 million over five years. There is $215 million for specialty crop research and $30 million in additional funds for organic research. And more.

All together, the new chairman's mark will reportedly include $1.6 billion for specialty crops over five years, well more than double from Peterson's first mark. Savings were found in crop insurance programs to help fund the increases in f/v programs.

Don't pop the champagne corks just yet - there may be amendments offered in committee over the next two days to strip away some of this funding - but the stage appears to be set for strong industry support of Peterson's mark of the farm bill.

From this report, Rep. Cardoza, with the help of Chairman Peterson and House Speaker Nancy Pelosi, helped the specialty crop farm bill alliance net a huge win.

Extension or not?

Leaders of the citrus industries in Texas, Arizona and California are asking for a 60-day extension in the comment period for the proposed rule for movement of Florida citrus from canker infested regions. The comment period is set to expire July 23 and the USDA so far has not extended it. Western citrus and Texas citrus leaders will face a real crunch in delivering comments on the proposed rule if the comment period is not extended.
One Florida source I visited with said that it would be very expensive to change the rules packers use once the season begins. What's more, the proposed rule deals with citrus shipments to non-citrus states like Maine and York (no danger of spreading canker in those regions). Transshipment of fruit from those regions to California or Texas is not a problem. The USDA has to make a tough call here, but the fact they haven't pulled the trigger on an extension yet tells me it is not going to happen.

Changes to import rules

American fruit and vegetable exporters have sometimes complained that the USDA exerts itself more for imports than it does for exports. This latest press release won't necessarily disabuse them of the notion. From USDA:

WASHINGTON, July 17, 2007--Agriculture Secretary Mike Johanns today announced a new risk-based process for approving the importation of certain fruits and vegetables that continues stringent protections for U.S. agriculture yet streamlines the lengthy rulemaking process, allowing USDA plant health specialists to better focus on more complex import issues.
"This new approach will allow us to focus less on administrative processes and more on the science of facilitating imports that do not pose a risk of introducing foreign pests and diseases," said Agriculture Secretary Mike Johanns. "A more efficient review process for imported fruits and vegetables should also help to expand market access for U.S. agricultural exports as other countries recognize U.S. efforts to encourage trade."
The new risk-based process for approving certain fruits and vegetables applies only to commodities that can be imported into the United States subject to one or more of five designated phytosanitary measures. These measures include port-of-entry inspection, approved postharvest treatment, a phytosanitary certificate verifying that it originated from a pest-free area, a phytosanitary certificate verifying that it is free from a specified pest or pests or that the risk associated with the commodity can be mitigated through commercial practices.
The importation of fruits and vegetables that require additional phytosanitary measures will continue to undergo the full rulemaking process.
The changes in the rule do not alter which fruits and vegetables are currently eligible for importation or how the risks associated with those commodities are evaluated or mitigated. This rule only makes more timely the approval of fruits and vegetables that are safe for importation into the United States.
USDA is also establishing a notice-based process for approving pest-free areas in exporting countries. This approach, which is similar to the commodity approval process, allows the agency to be more responsive in recognizing changes in the pest-free status of foreign areas. The new process will enable USDA to more efficiently and effectively reflect the actual pest status of a particular area.
This final rule is scheduled for publication in the July 18 Federal Register and will become effective Aug. 17.

TK: U.S. exporters may look at the issue with red white and blue colored glasses. A spokeswoman for APHIS says some countries think the existing rulemaking process is a trade barrier. Still, Japan, Australia and Korea are not likely to reciprocate our good faith effort to facilitate trade, notwithstanding our efforts to set a good example.

A comment about Peterson

This anonymous comment was submitted in the tip box regarding Peterson's handling of the farm bill. I copy and paste it here:

"Peterson has said there is no time to waste" - Fear mongering to ramrod a bill? No not again. It worked in the last election and bills that followed. Peterson is sounding like a Neo-con in a Democrat's suit. We can can take the wait if it's need to get the job done right. by now we're used to suffering."

TK: Wait how long? Can the industry suffer a one or two year extension?

Avocado action

Here are links to court documents related to the avocado lawsuit in California.
First, a link to Mexico's third party complaint. Second, here is a link to the Mexican counterclaim. The documents are accessible through the Fresh Produce Industry Discussion Group.

Tuesday 7/17 headline roundup

Move over pineapple Honolulu Star Bulletin reports: Even though Hawaii tropical fruit growers are challenged by inconsistent supplies and lower-priced Asian imports, specialty fruits such as lychee and rambutan have become a multimillion-dollar industry.
On the Big Island, thousands of exotic fruit trees are being planted each year, and as they mature, production is expected to increase. As Hawaii's pineapple production falls off, exotic fruits have become more common.

TK: Story quotes Bob Hamilton of Hula Brothers Inc. Bob showed me around his farm last summer and it's encouraging to see that demand is strong for exotic fruit as pineapple declines.


Hidden Valley announces grant to schools From a news release:
The makers of Hidden Valley(R) ranch dressings, owned by The Clorox Company , today announced it will be awarding more than a half million dollars in grants next year to elementary schools nationwide to support increased access to, and consumption of, fresh vegetables during lunch. The grant program - the Love Your Veggies(TM) Nationwide School Lunch Campaign - was created to help schools implement a recent federally mandated local wellness policy that requires schools to develop and execute programs to improve their students' overall health and nutrition, and in response to the overwhelming shortage of funds available for the execution of these programs.
Today at the School Nutrition Association's Annual National Conference in Chicago, Hidden Valley, along with its partners the School Nutrition Association (SNA) and its foundation and Produce for Better Health Foundation (PBH), announced it will provide $10,000 grants to 51 elementary schools in the United States - one grant per state plus an additional grant to a school in Oakland, Calif., Clorox's hometown. Beginning Aug. 1, schools can visit www.LoveYourVeggiesGrants.com to get more information on the grant program.
TK: A stroke of public relations genius for a worthy cause by Hidden Valley.


Democrats eye politics of farm bill New York Times coverage of how Democrats may handle balance between farm state interests and calls for reform. From the story:
The farm bill could come to the floor at the end of this month, and the issue most likely to divide Democrats is whether to cut subsidies. Leadership is under pressure to end what critics describe as expensive, trade-distorting farm payments to the richest farmers.
Some Democrats — such as Ron Kind of Wisconsin, who touts his own version of the farm bill — would like to steer the money spent on subsidies toward conservation, rural development, biofuel and nutrition programs — all priorities of the Democratic leadership.
House Agriculture Chairman Collin C. Peterson, D-Minn., also is under pressure to cut subsidies, largely because his budget to write the farm bill is tighter than in past years.
His committee can spend $20 billion over the measure’s baseline of about $226 billion, but only by finding offsets. Leadership says it is working to find funds in other federal spending programs, but expects Peterson to redistribute cash within his own bill. Peterson now is toying with ways to limit subsidies; those changes are likely to come up when the full Agriculture Committee begins debating the bill Tuesday.
TK: I'm waiting on word if Rep. Dennis Cardoza will offer amendments today during the farm bill markup session, but no indication yet what is planned. Generally, Cardoza is still not happy with where the f/v priorities stand in the process, one Capitol Hill staffer told me. Here is an edit from the Contra Costa Times about California's interest in farm bill reform.

Another benefit seen in buying organic produce New York Times coverage of study claiming higher levels of flavonoids. From the story:
Writing in The Journal of Agriculture and Food Chemistry, researchers said the level of one flavonoid in the organic tomatoes was almost twice as high as that in conventionally grown tomatoes.
TK: Let's not get jump to big conclusions based on this very limited research.


Diamond Foods opens Bentonville office


Whast's rotten at Whole Foods Business Week takes a swing at Whole Foods management. From the story:
There's something rotting at Whole Foods Market (WFMI) and it isn't in the produce department. It's in the company's management team: John Mackey, the chief executive who spent years anonymously posting on the Web about his company and its rivals, appears to share a cynical arrogance with other corporate self-promoters who believe they don't have to personally uphold the values they publicly proclaim.

Show us the offsets

Harmony does not prevail in the House Agriculture Comittee. Here is a release from the Republicans on the House Agriculture Committee last night.

Agriculture Committee Republicans to Democrats: Show us the money
Want to see money, language and scores before proceeding with farm bill markup

WASHINGTON - Tonight, the Agriculture Committee Republicans were unanimous in their objection to proceeding to markup the farm bill in a bipartisan fashion until the money promised to the Committee is produced. Additionally, the Republican Members of the Committee expressed their intention to meet with the Chairman once they have had the opportunity to review the bill with its comprehensive manager's amendment language and have received the Congressional Budget Office (CBO) scores.
"In the short-term, we're being asked to support a bill that we've yet to see in final form without the final CBO scores. In the long-term, we're being asked to take a bill to the floor that lacks sufficient funding to withstand a barrage of potentially devastating amendments. We continue to urge the Chairman to pull in the reins and proceed when the funding is made available," said Ranking Member Bob Goodlatte.
Despite months of urging to slow down and wait for sufficient funds to materialize, the Committee is scheduled to begin consideration of the farm bill tomorrow afternoon.
"Agriculture Committee Republicans want to write a forward looking farm bill and we want to work with our Democratic colleagues to get the job done. But if getting the job done means setting American agriculture on a chopping block and inviting everyone in to take a slice, that is not a position we can stand behind," said Ranking Member Bob Goodlatte.

TK: Peterson has said there is no time to waste if a farm bill is to be enacted, and he says those who think an extension to the current farm bill will be easy may be mistaken. If nothing is done, he notes USDA would have to impose the provisions of the 1949 farm bill. Should be an interesting first day of hearings.