It's a wrap

TK: The final post of the day comes courtesy of House Republicans. House Ag Committee Chairman Peterson said today in his teleconference that he feels he will work with Bob Goodlatte with no problem going forward. Clearly, the tax provision was inserted outside the control of the committee to fund nutrition priorities. Once this is in the rearview mirrow, the bipartisan spirit should persist - one hopes.
From the Republicans:


House Republicans Say "Yes" to Farm Bill; "No" to Tax Increase

WASHINGTON - Today, House Republicans opposed the Democrat leadership's move to attach tax increases to the traditionally popular farm bill. In a largely partisan vote, Democrats passed the farm legislation by a vote of 231 to 191.

Leader of the agriculture committee Republicans, Ranking Member Bob Goodlatte said, "Speaker Pelosi and the Democrats threw away an opportunity to produce a farm bill with broad bipartisan support in pursuit of their obsession to tax and spend. It is a real shame that the traditional bipartisan spirit of farm policymaking has been damaged like this."

On Tuesday, Republicans of the House Agriculture Committee stood arm-in-arm with Democrat committee members, declaring their support for the new 5-year farm bill that they were about to take to the full House for passage. Within 24 hours, that unity had been shattered by overnight maneuvering by the Democrat leadership to inject major tax increases into the farm legislation, without consideration of either the Agriculture Committee or the tax-writing Ways and Means Committee.

After being rebuffed repeatedly in the period leading up to House consideration, Republicans sought the ability to ask for a separate vote on the tax issue. Democrats rejected this request and brought the bill to the House under rules that prevented amendments on the tax increase. Finally, Ranking Member Goodlatte offered a motion to send the farm bill back to committee and bring it forward as the bipartisan legislation the committee had passed out. Democrats rejected the motion on a party-line vote.

"Everyone in rural America should be saddened and outraged by what happened here today. The Agriculture Committee produced a farm bill that could have passed with a hundred more votes, a clearly veto-proof bill. Instead, the farm bill is limping out of the House with one of the smallest majorities that anyone can remember, encumbered by a tax increase that wasn't necessary. It didn't have to be this way," Ranking Member Goodlatte said.

Rhubarb rising

Here is a Web site that promises everything you wanted to know about rhubarb and more. You're welcome. I must say there is nothing better than a strawberry/rhubarb pie, fresh out of the oven and with an generous scoop of ice cream on top.

Border inspectors: closer scrutiny

I asked Chairman Collin Peterson about the issue of border inspectors and the amendment by Rep. Dennis Cardoza to transfer them back to USDA from DHS. Although objections were raised by DHS and the amendment was withdrawn, Peterson's supports Cardoza in this and said he has done some investigative work on the issue. Expect hearings and perhaps release of some of the investigative findings in the not too distant future, Peterson said.

Peterson comes off as the ultimate pragmatist. Speaking about both the Administration's version of the farm bill, Peterson noted it probably was full of good ideas....but without a constituency to support your ideas, your plan fails.

Peterson likeways made the point about Sen. Harkin's focus on CSP, or the Conservation Security Program. While Harkin loves the program, it hasn't built up a constituency and Harkin is having a hard time rallying support within his own committee.

WTO Cotton case : a fly in the ointment?

The first question asked of House Agriculture Committee Chairman Collin Peterson today in a teleconference was not about the farm bill, but the news of the WTO case on U.S. cotton subsidies.

From the AP:

The World Trade Organization largely ruled against the United States in an interim decision that it has failed to scrap a series of illegal subsidies paid out to American cotton growers, U.S. and Brazilian trade officials said Friday.WTO panels rarely change their findings between preliminary and final rulings, and the apparent result is a major victory for Brazil's cotton industry and West African countries that have claimed to have been harmed by the American payments.The interim ruling was handed out confidentially to the parties late Friday. A final verdict, expected in September, could open the door for billions of dollars (euros) worth of Brazilian trade sanctions against the United States.

TK: Peterson was not phased by this report when raised by Chuck Abbott of Reuters. He said an appeal will take three to six months, and seemed to indicate the USTR has not been as aggressive as they need to be in defending U.S. farm programs.

Western Growers release

Here is the Western Growers news release about the farm bill:


WESTERN GROWERS APPLAUDS THE U.S. HOUSE OF REPRESENTATIVES FOR PASSING ITS VERSION OF THE 2007 FARM BILL

IRVINE, CA (July 27, 2007) – Western Growers applauds the U.S. House of Representatives for passing its version of the 2007 Farm Bill today. Western Growers, with other specialty crop allies, has worked tirelessly for more than two years to ensure the specialty crop industry’s priorities are included in the Farm Bill, and today’s passage by the House is a major step toward achieving that goal.
“We applaud the U.S. House of Representatives’ passage of the Farm Bill. For the first time, the Farm Bill recognizes the priorities of an industry that accounts for more than half of all crop value in the country,” said Western Growers President and CEO Tom Nassif. “Our Representatives in Congress have shown tremendous leadership by investing in a 21st Century Farm Bill, which addresses the needs of all of agriculture.”
The House version of the Farm Bill, which would provide more than $1.7 billion in mandatory funding for key specialty crop programs over the next five years, would expand the USDA Fruit & Vegetable Snack Program to all 50 states, enhance critical trade assistance and market promotion tools that will grow international markets for specialty crops, expand detection and mitigation efforts to combat invasive pests and diseases; which costs the economy millions of dollars per year; provide a greater investment in research and development and expand the “State Specialty Crop Competitiveness” projects in all 50 states to enhance the competitiveness of fruits, vegetables and nuts.
“This is truly an historic moment for our country and industry,” Nassif said. “We especially want to recognize and commend Rep. Dennis Cardoza (D-CA), who has worked diligently on our industry’s behalf to secure our representation in the Farm Bill for more than two years. We also strongly applaud House Speaker Nancy Pelosi (D-CA), House Agriculture Committee Chairman Collin Peterson (D-MN) and ranking Republican Bob Goodlatte (R-VA) and Representatives Kevin McCarthy (R-CA), Jim Costa (D-CA), Sam Farr (D-CA), Devin Nunes (R-CA), George Radanovich (R-CA) and Mike Thompson (D-CA) for their leadership and courage in shaping our federal farm policy based on competition and geared toward the 21st Century marketplace.
“We recognize, however, that there is still a lot of work to be done on this issue,” Nassif said. “It’s now time for the Senate to build on the efforts of House. The current Farm Bill is set to expire this year and the status quo is not acceptable.”
Western Growers; which is a co-chair of the Specialty Crop Farm Bill Alliance, a national coalition of 120 specialty crop organizations who have banded together to support priorities that provide an avenue for more competition into federal farm policy with a focus on producing a safer, healthier and more nutritious food supply; is an agricultural trade association whose nearly 3,000 members grow, pack and ship ninety percent of the fresh fruits, nuts and vegetables grown in California and seventy five percent of those commodities in Arizona. This totals about half of the nation’s fresh produce.

House Agriculture Committee release

Here is the roll call vote for HR 2419.
Meanwhile, here is the House Agriculture Committee

U.S. House of Representatives Passes Historic Farm Bill
WASHINGTON, D.C. - The U.S. House of Representatives today passed a new Farm Bill that makes historic investments in fruit and vegetable production, conservation, nutrition and renewable energy while maintaining a strong safety net for America's farmers and ranchers.
"This Farm Bill is about much more than farms. It is about the food we eat, the clothes we wear, and increasingly the fuel we will use. It assures that we will have a safe, strong food supply now and for years to come," Chairman Peterson said.
"I am proud of the balanced and forward-looking Farm Bill that we have passed supporting conservation, nutrition, rural, renewable energy, labor, and farm country."
Important highlights of the Farm Bill (H.R. 2419) include:
. Investing more than $1.6 billion in priorities to strengthen and support the fruit and vegetable industry in the United States. A new section for Horticulture and Organic Agriculture includes nutrition, research, pest management and trade promotion programs.
. Implementing Mandatory Country of Origin Labeling for fruit, vegetables and meat after years of delay.
. Expanding the USDA Snack Program, which helps schools provide healthy snacks to students during after-school activities to all 50 states and continuing the DOD Fresh Fruit and Vegetable Program, which provides a variety of fresh produce to schools.
. Strengthening and enhancing the food stamp program by reforming benefit rules to improve coverage of food costs and expand access to the program with additional funding support.
. Including key provisions that invest in rural communities nationwide, including economic development programs and access to broadband telecommunication services.
. Providing farmers participating in commodity programs with a choice between traditional price protection and new market-oriented revenue coverage payments.
. Strengthening payment limits to ensure that people making more than $1 million a year (adjusted gross income) can't collect conservation and farm program payments and closing loopholes that allow people to avoid payment limits by receiving money through multiple business units.
. Extending and making significant new investments in popular conservation programs, including the Conservation Reserve Program, Wetlands Reserve Program, Environmental Quality Incentive Program, Farm and Ranchland Protection Program, and many others.
. Making important new investments in renewable energy research, development and production in rural America.
. Rebalancing loan rates and target prices among commodities, achieving greater regional equity.
. Establishing a new National Agriculture Research Program Office to coordinate the programs and activities of USDA's research agencies to minimize duplication and maximize coordination at all levels and creates a competitive grants program.
. Protecting and sustaining our nation's forest resources.
The House of Representatives passed the 2007 Farm Bill (H.R. 2419) by a vote of 231-191. The Senate must now consider the Farm Bill.
The 2002 Farm Bill expires on September 30, 2007.

Farm Bureau statement

Farm Bureau's upbeat statement about the House-passed farm bill. The Administration isn't winning the PR battle in farm country:

Farm Bureau Praises House Farm Bill Reform

WASHINGTON, D.C., July 27, 2007 -- The House-passed farm bill establishes a new benchmark for reform while retaining a viable economic safety net for America’s farmers and ranchers. The skillfully crafted bill addresses the concerns of taxpayers, increases support for agricultural environmental programs and balances the diverse needs of America’s family-based food and fiber production system, according to the American Farm Bureau Federation.

“The farm bill passed by the House 231-191 strikes a reasonable balance in allocating benefits among our nation’s farming and ranching families who grow a safe and secure supply of food and fiber for America and the world,” said AFBF President Bob Stallman. “Rep. Collin Peterson walked a tightrope in developing this legislation in the House Agriculture Committee. He did an outstanding job of shepherding it through the House for approval.”

House debate of the Farm, Nutrition, and Bioenergy Act of 2007 (H.R. 2419) included consideration of more than 30 amendments. A key amendment vote occurred when a Farm Bureau-opposed measure that would have gutted the “three-legged” economic safety net was defeated by a resounding 309-117 vote. The vote signaled that support for stripping funding from commodity-based programs, as proposed by Rep. Ron Kind (D-Wis.), has eroded considerably since a similar measure garnered 200 votes during debate of the 2002 farm bill.

Stallman said that vote was indicative of the level of strong support for continuing a basic level of public investment to ensure a secure and reliable domestic food supply for American consumers.

“This farm bill benefits all sectors of agriculture, including new support for fruit and vegetable producers, and it provides real policy reforms,” Stallman said. “For the first time in recent history, no additional funding is provided for commodity programs. At the same time, the bill meets the needs of more of America’s farmers by providing $1.6 billion in new funding for specialty crop research, conservation, pest and disease programs, and nutrition.

“Overall, this bill directly benefits America’s taxpayers because it is fiscally responsible, spending $20 billion less than the prior farm bill. That is real reform. There was greater emphasis, however, in directing additional support toward nutrition, energy security and supporting rural communities. There also is more funding to help farmers take better care of our nation’s natural resources.”

Stallman said the House farm bill more effectively balances support programs among all types of crops and gives farmers the opportunity to enroll in a “revenue-based counter-cyclical program,” which could prove more responsive to addressing their economic challenges, according to AFBF.

“These reforms encourage individual farmers to produce crops demanded by the marketplace while at the same time delivering better economic protection against the many uncertainties they face, such as volatile crop prices and extreme weather conditions,” Stallman said. “The bill is designed to help smooth out the valleys of uncertainty most individual farmers would otherwise be unable to weather alone. In doing so, the bill supports the production of our nation’s food and fiber staples and it preserves a way of life that benefits all of American society.”

Stallman said the new bill also is important because it includes assistance to address the needs of young and beginning farmers, and it includes provisions to help farmers grow crops for the production of home-grown renewable fuels.

Cardoza statement after farm bill passage

Here is statement from Rep. Dennis Cardoza, mere moments after sliding acorss my inbox.


WASHINGTON, DC – Today Congressman Dennis Cardoza (D-CA-18) heralded the passage of landmark reforms in the 2007 Farm Bill that will finally allow California farmers and producers to benefit equally from government farm programs. Mr. Cardoza helped to include historic investments in specialty crops, conservation, and nutrition programs in the 2007 Farm Bill, as well as commonsense improvements to the subsidy programs.

“California agriculture is finally getting the respect and treatment it deserves. This is a huge win for California and the right policy for America,” said Cardoza. He continued, “Speaker Pelosi and Chairman Peterson deserve credit for producing a farm bill for the 21st century that will support America’s farmers and comply with House pay-go rules.”

The 2007 Farm Bill contains $1.6 billion for programs that are priorities to specialty farmers, conservationists, and nutrition advocates. This funding includes resources for research and pest detection, block grants, organic farming, farmer’s market promotion, the Environmental Quality Improvement Program (EQIP), and the National School Lunch Program, which helps provide fresh fruits and vegetables to school children.

Within the EQIP program the bill contains $150 million for air quality mitigation, which will help farmers comply with federal and local air pollution laws. These funds are critical for farmers in California’s San Joaquin Valley which has some of the worst air in the nation and the toughest air quality laws. The bill also contains important technical changes that will allow more California farmers to be eligible for authorized farming programs.

The 2007 Farm Bill makes significant and timely reforms to many farm programs that were no longer functioning efficiently. The bill stops all payments to wealthy farmers with income over $1 million per year, fights waste, fraud, and abuse in the crop insurance program, and closes the “three-entity” rule. Savings from these programs are shifted to sectors of growing importance, like organic agriculture, and nutrition programs to get healthy farm products to school children.

Mr. Cardoza and other members of the Agriculture Committee, many of whom are Blue Dog Democrats, were dedicated to complying with pay-go rules in the 2007 Farm Bill. Compliance with pay-go and competing funding priorities, required lawmakers to take a hard look at all farm programs and discontinue or de-fund those that were not operating effectively.

“This bill threads the needle,” said Cardoza. “There is something for everyone to dislike, but everyone got what they needed. For the first time in the history of the farm bill lawmakers, conservationists, nutrition advocates, and farmers from all regions of the country support the overall bill.”

The 2007 Farm Bill passed on the House floor by a vote of 231 – 191. Farm Bill legislation will next be considered by the Senate.

United Member alert

Here is the United Fresh Produce Association member alert concerning passage of the farm bill.


House of Representatives Passes Historic Farm Bill for Fruits and Vegetables
The U.S. House of Representatives has just passed its 2007 Farm Bill, containing an unprecedented $2 billion in mandatory funding and major policy priorities for the fruit and vegetable industry. "This is an historic day for the fruit and vegetable industry, and one we've worked toward for many years," said United Fresh Chairman Emanuel Lazopoulos. "We didn't ask for subsidies; we asked for investment in research, technical assistance and grants to improve industry competitiveness, and major new programs to bring fresh fruits and vegetables to school children across the country. As member after member of Congress stepped to the podium over the past 24 hours to support these goals, we knew that a new day had arrived that would help grow our entire produce industry for many years to come," he said.
The House-passed Farm Bill will significantly expand the USDA Fruit and Vegetable School Snack Program, expand state block grants to increase industry competitiveness, purchase more fruits and vegetables for school lunch, expand the DOD Fresh Program for schools, provide technical assistance to address international market access issues, invest in specialty crop research including produce food safety, enhance programs to prevent invasive plant pests and disease, and target funding to address conservation priorities.
"We're proud of the effort and support by many Congressional leaders that has brought us this far," said United Fresh President Tom Stenzel. "The investments in this Farm Bill will help growers, shippers, processors, wholesalers, retailers and restaurants deliver the highest quality, safest and most affordable fresh produce to consumers in the United States and around the world. But, the battle is not over. Senate Agriculture Committee Chairman Tom Harkin (D-IA) plans to begin consideration of its Farm Bill in September, the same week as United Fresh's Washington Public Policy Conference. "Our work is cut out for us to shape the Senate bill and drive home a final law signed by President Bush. Every member of our industry that wants to grow fresh produce sales and consumption, and investment in key industry priorities, should come to Washington September 12-14 to make your voices heard," he said.


TK: As I've said before, the WPPC should be a celebration this September. It will also be good timing with the start of Senate Ag Committee consideration of their farm bill provisions. Congratulations to United and other industry lobbyists in the Specialty Crop Farm Bill Alliance for bringing a produce friendly farm bill halfway home.

Democratic lean

Within an hour or so, the House of Representatives will finish a "votarama" on amendments and then pass the 2007 farm bill. It will be a big day of celebration for the fresh produce industry, with nearly $2 billion in mandatory funding for specialty crop priorities over five years.

While the farm bill is traditionally a bipartisan effort, this year's voting will be dominated in the "yea" column by Democrats. Republicans, including Rep. Bob Goodlatte, have said they can't vote for the bill because of a tax provision on foreign companies doing business in the U.S. One lobbyist said perhaps 10 to 12 Republicans - that is all - may peel off and vote for the farm bill. The final vote will be deceiving, since many more Republicans would have voted for the farm bill if the tax provision had been excluded. The House Agriculture Committee developed their farm bill in a bipartisan manner, they just couldn't close the deal.

Still, the confluence of big gains for the specialty crop industry in the farm bill and Democratic control of both chambers of Congress may signal a shift in industry loyalties. Democratic receptiveness to nutrition issues and their willingness to provide mandatory funding for specialty crop block grants buys them considerable goodwill.

Besides the giant contribution from Rep. Dennis Cardoza, the work of Chairman Peterson, House Speaker Nancy Pelosi and House Ag appropriations subcommittee chair Rosa DeLauro all figured positively in the farm bill.

Industry lobbyists - so valuable to the trade in this farm bill debate - will continue to have much work ahead. Working the Senate for similar or better treatment in that chamber's version of the farm bill is obviously front and center.

How Congress deals with food safety issues in the weeks ahead also will be worth watching. Some of the Democrats who played the most helpful roles in securing industry priorities in the farm bill also will advance some of the most aggressive food safety remedies.

The industry will want to tread carefully as the food safety debate advance. Industry leaders don't want to alienate some of their biggest allies on the Democratic side of the aisle. Republicans may prove quite helpful to the industry if they provide moderation and caution when their Democratic colleagues offer over-prescriptive solutions to food safety.

What's happening

Some excerpts from the House floor, courtesy of the House Web site. Rangel amendment on liberalizing trade with Cuba passes with voice vote but further questions on adoption of the amendment put off until later today. Cardoza amendment on transferring border inspectors to USDA was withdrawn.


9:56 A.M. -
POSTPONED PROCEEDINGS - At the conclusion of debate on the Rangel amendment, the Chair put the question on adoption of the amendment and by voice vote, announced that the ayes had prevailed. Ms. Ros-Lehtinen demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until later in the legislative day.
9:42 A.M. -
DEBATE - Pursuant to the provisions of H.Res. 574, the Committee of the Whole proceeded with 10 minutes of debate on the Rangel amendment.
Amendment offered by Mr. Rangel.
An amendment numbered 12 printed in Part B of House Report 110-261 to remove certain banking restrictions related to Cuba's payment for agricultural purchases from U.S. producers. It also authorizes direct transfers between Cuban banks and U.S. banks and allows visas to be issued to conduct activities related to purchasing U.S. agricultural goods.

9:28 A.M. -
DEBATE - Pursuant to the provisions of H.Res. 574, the Committee of the Whole proceeded with 10 minutes of debate on the Boustany amendment.
Amendment offered by Mr. Boustany.
An amendment numbered 6 printed in Part B of House Report 110-261 to state that in the case of sweet potatoes, Risk Management Agency Pilot Program data shall not be considered for purposes of determining production for the 2005-2006 Farm Service Agency Crop Disaster Program.
By unanimous consent, the Cardoza amendment was withdrawn.
9:21 A.M. -
DEBATE - Pursuant to the provisions of H.Res. 574, the Committee of the Whole proceeded with 10 minutes of debate on the Cardoza amendment, pending reservation of a point of order.
Amendment offered by Mr. Cardoza.
An amendment numbered 5 printed in Part B of House Report 110-261 to require USDA to transition Animal and Plant Health Inspection Service (APHIS) employees responsible for plant pest inspection duties back to USDA from the Department of Homeland Security in order to better serve the needs of American agriculture.

Headline roundup 7/27

Multinational credit ratings not impacted by EC objections Standard and Poors says current ratings and outlook remain unchanged remain after reports that the companies have received a Statement of Objections from the European Commission (EC).

Radio waves used for pest control Using radio waves, rather than chemicals, may be the best, post-harvest process for debugging dried fruits and nuts, according to a team of researchers led by a Washington State University professor.

Car made of vegetables hits 240km/h

House set to vote on farm bill

Senate presses border security

Supermarkets tout fresh, local

Mackey out at Whole Foods?

Discussion group roundup 7/27

You have to get up pretty early to be in front of members of our discussion group. This morning is no different. Here are a few valuable links posted on the discussion group board this morning:

Food stamps go green (market) Big Apple notes a story that notes some farmers markets are taking electronic benefit cards:
Three Bronx-based farmers' markets now can accept food stamps in the form of Electronic Benefits Transfer (EBT) cards, thanks to a $300,000 windfall approved by the council.
"Making sure New Yorkers have access to food stamps is only half the battle - we also need to make sure they can use those food stamps to purchase nutritious foods," said Council Speaker Christine Quinn (D- Manhattan) in a statement.


Plum pox resistant trees move forward Big Apple notes ARS report on development of plum pox virus resistant trees. From the link:

Plum trees with resistance to plum pox (PPV), a virus that can devastate stone fruit, have moved a step closer to reality, according to the Agricultural Research Service (ARS).

Emergency Food Assistance Program; Availability of Commodities for Fiscal Year 2007 Big Apple links to this notice talking about federal government purchase of surplus commodities, including fruits and vegetables.


In news The Packer will follow up on, Big Apple notes the reopening of the comment period for consideration of USDA's rules on movement of Florida citrus from canker regions. Calif. sources had been seeking extension of the initial comment period, which ended July 23. From the rule:
We are reopening the comment period for our proposed rule that would amend the citrus canker regulations by modifying the conditions under which fruit may be moved interstate from quarantined areas. This action will allow interested persons additional time to prepare and submit comments.
DATES: We will consider all comments that we receive on or before August 7, 2007.

Luis observes an interesting wrinkle in farm bill debate relative to the sale of water rights and the effect of that income on eligibility for farm payments. A recent post in Mulch blog (linked on the right side of this blog) said:

Here's the implication. Under the Pelosi payment limitation reforms, a big-bucks cotton farmer--in, say, the Westlands Water District of California--who pulls down between $500,000 and $1,000,000 in adjusted gross income (AGI, averaged over 3 years), is ineligible for crop subsidies unless he can demonstrate that 66.66 percent of the dough was "income from farming", as defined in the bill. If he sells water rights, it will count as income from farming under the bill, making it easier to continue receiving subsidies.