11.13 Specialty Crops

The specialty crop industry annually accounts for more than $53 billion in cash receipts – close to 54% of the total cash receipts for crops – yet specialty crop producers experienced lower than average income in 2003 due to higher energy and labor costs.   In addition to lower than average income, imports of specialty crops have outstripped the small gain in exports.  When comparing U.S. specialty crop import and export values over the period 1997-2002: imports - increased 39% to a total of $14.7 billion in 2002; while, exports - increased 6.5% to a total of $11.7 billion in 2002.  

The specialty crop industry is more likely to be impacted by pests, disease, low prices, labor shortages and lack of funding for research, promotion, and inspection than other commodities.  In addition, increased consumption of specialty crops is an important component in the national efforts to reduce obesity, increase the nutritional value of the school lunch program, promote 5-A-Day, and strengthen Farmers’ Market Nutrition Programs.

NASDA supports full funding of the specialty crops block grant program as authorized.  While we recognize that federal funding is limited, we believe funding for the specialty crop block grant program should not negatively impact current funding for other commodity programs.

The 2001 specialty crops block grant program that provided $159.4 million in grants to state departments of agriculture was very successful.  States took advice from local constituency groups and ultimately made investments in more than 1,400 projects in significant issue areas including marketing, education, research, pest and disease programs, and food safety.  The program also leveraged approximately $45.2 million in matching funds from states and individual grant recipients.

An additional $1 billion should be provided annually to accelerate development of cost of production insurance policies for fruit and vegetables, nursery, vineyard, seed, citrus, tree crops, livestock and milk. Additional premiums subsidies (above the 50% level) would be provided since no counter cyclical assistance program currently exists for these crops.

Producers of specialty crops should be eligible to participate in the Agricultural Stewardship Program (conservation block grant) based on state-determined priorities.

NASDA recognizes that vast amounts of American Agricultural products are categorized as Specialty Crops, when in fact they are mainstream agricultural production in most areas of the nation.  The Specialty Crop Competitiveness Act needs to reflect the regional differences in what constitutes a specialty crop.  The base amounts of grants to states should be increased from $100,000 to at least $500,000 annually.  State block grants should be directed toward state departments of agriculture and used (1) to strengthen state‑led efforts to promote the marketing and purchase of local agricultural products; and (2) to strengthen state‑led efforts to promote innovation in agriculture.