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A publication of the National Association of State Departments of Agriculture HOUSE CONFEREES OFFER NEW FARM BILL PROPOSAL SENATE OFFERS FARM BILL COUNTER PROPOSAL NASDA ISSUES SPECIALTY CROP REPORT BIOSECURITY BILL DELAYED IN CONFERENCE USDA NEWS State News--BRONSON UNVEILS NEW SARASOTA STERILE MEDFLY FACILITY State News--SNELL TO HEAD COOPERATIVE DEVELOPMENT CENTER State News--LOAN PROGRAM HELPS LIVESTOCK PRODUCERS, ENVIRONMENT
Past Issues
What's New on the NASDA Website
Letter to Congress urging permanent authorization of the specialty crop block grant program Preliminary Specialty Crop Report 2002 U.S. Food Export Showcase Letter to Farm Bill Conferees; Letter to the Senate Urging Elimination of the Estate Tax State specialty crop block grant programs
NASDA Responses to Karnal Bunt Survey Sens. Harkin's, Grassley's, and Lugar's farm bill proposals
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HOUSE CONFEREES OFFER NEW FARM BILL PROPOSAL Farm bill negotiators officially met Thursday, April 18, after week-long, closed-door sessions failed to produce any agreements on major issues. House Agriculture Committee Chairman Larry Combest (R-Texas) opened the meeting by offering a new farm bill proposal on behalf of the House conferees. Combest and ranking member Charlie Stenholm (D-Texas) emphasized the proposal was not a "take it or leave it" offer; but, the "best proposal based on discussions." The comprehensive proposal covers all titles and a four-page summary will be available on NASDA's website soon. Reps. Cal Dooley (D-Calif.) and John Boehner (R-Ohio) expressed serious concerns that country-of-origin labeling for livestock was unworkable. House conferees accepted an amendment offered by Dooley that added criteria before USDA could implement a labeling system. Both lawmakers expressed concern about the dairy provisions. Sen. Thad Cochran (R-Miss.) offered a motion for Senate conferees to accept the new House proposal, but Senate Agriculture Committee Chairman Tom Harkin (D-Iowa) said they needed time to review the document. Harkin said Senate conferees would offer a counterproposal and briefly outlined some of his views. Harkin said he strongly believed the commodity loan rates were too low and funding for dairy was short. He expressed concern about funding allocations for conservation and trade programs. Harkin also said conferees were far from a compromise on the packer ownership and country-of-origin labeling issues. He further expressed concerns about provisions dealing with Cuba trade and disaster assistance. Sen. Kent Conrad (D-N.D.) said many of the new proposals--from loan rates to conservation--were heavily weighted to the original House bill. He did not feel this represented a compromise. Highlights of the new House proposal include: * Higher commodity loan rates than the original House bill, but lower than the Senate bill. * Maintains a permanent $9.90 milk price support program and establish a 3 1/2 year national dairy program that makes payments to all U.S. producers (using the Senate farm bill formula for the Northeast dairy program). Payments are made on up to 1.8 million lbs. of production per farm. The funding for price support is $773 million and funding for the national dairy program is $1.005 billion. * A somewhat complicated payment limitation proposal which would reduce the limit on fixed payments by 20 percent; reduce the limit on counter-cyclical payments by over 13 percent. The total dollar limitation is reduced from the original House bill level of $550,000 to $360,000. * Increases funding for most conservation programs, including $10 billion for the Environmental Quality Incentives Program (EQIP), for a total of $17.1 billion in spending. Provides for a $100 million per year pilot program to explore incentive payments to farmers for farm stewardship practices. * Ramps up spending for the Market Access Program (MAP) to $200 million by 2006, and provides total spending for the trade title of $1.158 billion. * Provides a total of $6.4 billion for nutrition and the food stamp program. * Provides $1.03 billion for rural development and $1.5 billion for forestry. * Establishes a presidential commission on packer ownership to study the issue of captive supply and market mechanisms. The report would be completed by December 2004. * Requires USDA to issue rules for voluntary country-of-origin labeling for meat, fruit and vegetables by September 30, 2002. The program would become mandatory in January 2005 unless the Secretary determines that it would not be in the best interest of producers and consumers. (Contact: Charlie Ingram) SENATE OFFERS FARM BILL COUNTER PROPOSAL Farm bill negotiators reconvened on Thursday evening (April 18) and Senate conferees offered a counter-proposal to the measure introduced by House members during the morning session. Senate Agriculture Committee Chairman Tom Harkin (D-Iowa) described the new Senate proposal and pointed out there were many general agreements with the House. On the commodity title, Harkin said the Senate agreed with the House proposal on base acres, payment yields, advance payments, and loan deficiency payments (LDP) authority. Disagreements remain on commodity loan rates, fixed payments, and target prices, with the Senate proposing higher amounts than the House. There are some agreements on dairy, but the Senate's proposal provides more funding for payments and the overall cost of a national dairy program. The Senate also agreed with the House to not include Farm Savings Accounts in the bill. The Senate proposal adds $2.4 billion in emergency disaster assistance and would permanently extend Chapter 12 bankruptcy provisions. Senate conferees reaffirmed their proposal on payment limitations, citing House action on the issue. In separate legislative action on Thursday afternoon, the full House approved a motion to instruct House conferees to support the Senate proposal by a vote of 265 to 158. The Senate counter-proposal maintains the total funding level of $17.1 billion for the conservation title as the House, but allocates the money differently for specific programs. For example, the Senate increases spending for the Conservation Reserve Program (CRP), the Environmental Quality Incentive Program (EQIP), and provides $3.4 billion for Harkin's Conservation Security Act. The new House and Senate proposals on trade, research, rural development, and forestry are similar. Harkin said the Senate basically agrees with House proposals on these titles, although some policy details need to be worked out. In the nutrition title, there is disagreement on the issue of food stamp eligibility for legal immigrants. On the packer ownership issue, the Senate proposed to extend the divestment period to four years for all livestock. The Senate also agreed to most provisions of the House proposal on country-of-origin labeling. The Senate would make a labeling program mandatory one year earlier (by January 2004) and states that for a product the be labeled USA product, it must be born, raised, and processed in the United States. Conferees from both chambers and political parties agreed that progress was being made, but much work remained to reach agreement on a number of key issues. Senate conferees held a vote on a motion offered Thursday morning by Sen. Thad Cochran (R-Miss.) to accept the new House proposal. The motion was defeated by a three to four vote along party lines with Republicans supporting the motion and Democrats opposing it. During discussion of the Senate proposal later Thursday night, Rep. Frank Lucas (R-Okla.) asked a series of questions about the conservation provisions. Sen. Harkin (D-Iowa) informed lawmakers that the controversial amendment Reid (D-Nev.) contained in the Senate bill, dealing with water rights had been removed. Conferees will consider the conservation title and amendments on Friday (April 19) morning. House Agriculture Committee Chairman Larry Combest (R-Texas) and ranking member Charlie Stenholm (D-Texas) said lawmakers should be prepared to work through the weekend because time was running out to complete the legislation. Before conferees adjourned, there was a skirmish over a press release issued by Senate Majority Leader Tom Daschle (D-S.D.) Thursday afternoon. Daschle's news release expressed disappointment about delays in completing work on farm bill legislation and said the bill was being held hostage by conferees who were unwilling to compromise. Stenholm and Combest said such statements and "finger-pointing" were not helpful to the process. Harkin agreed, but defended Daschle's comments as being precipitated by the administration and USDA comments disagreeing with the Senate's policy positions. Stenholm remarked that if negotiators did not finish the farm bill soon, producers would place the blame on all conferees. (Contact: Charlie Ingram) NASDA ISSUES SPECIALTY CROP REPORT This week, NASDA released a preliminary report on the state specialty crop block grant program describing state activities and programs to provide assistance to producers. The report, which is being sent to all members of Congress and USDA officials, is also available on NASDA's website under the "State Specialty Crop Block Grant Information" section. Last August, Congress approved an emergency farm assistance package (H.R. 2213, P.L. 107-25) which for the first time provided $159 million in block grants to states for assistance to producers of specialty crops. The funds were distributed to the states last fall and since that time, state departments of agriculture have been working to implement their programs. Many states have not yet completed all of their activities because states have until September 30, 2002, to complete disbursal of the block grant funds. As additional states complete their programs, NASDA will post their information on the NASDA website. NASDA will compile a final report during the fourth quarter of this year. NASDA has also urged Congress to support a permanent authorization of the specialty crop block grant. (Contact: Charlie Ingram) BIOSECURITY BILL DELAYED IN CONFERENCE A major biosecurity package which includes proposals to address protection of the nation's food supply and the agricultural production system remains stalled in final conference committee negotiations. Both the House and Senate approved legislation (H.R. 3448 and S. 1765) last December. Lawmakers are having difficulty reaching agreement on several issues including food safety requirements. Reportedly, food processors and manufacturers have expressed concerns about new and expanded Food and Drug Administration (FDA) authority. The legislation would require processors to register with the agency, allow federal officials to inspect company records, detain tainted food products, and require importers to give notice of shipments. Language in the House bill specifically exempts farm operations from these requirements. The $3.2 billion Senate bill includes a specific title designed to protect agriculture and the security of the food supply. It proposes about $30 million to expand USDA's Animal and Plant Health Inspection Service (APHIS) activities. USDA's Food Safety Inspection Service (FSIS) would receive $15 million to generally expand inspection activities while FDA would receive $59 million for inspection work. The Senate bill also provides $190 million to expand USDA research activities and provides food safety grants for states to establish and maintain food safety surveillance, technical and laboratory capacity. It further provides money for USDA to develop education programs related to farms, livestock confinement operations, livestock auction biosecurity, and educational materials for distribution to local crop producers and facilities that handle, process, or transport crops. (Contact: Charlie Ingram) USDA NEWS ~~More States Are Eligible for Emergency Loans~~USDA Secretary Ann M. Veneman this week named additional counties in California, Georgia, South Dakota, and Kansas as eligible for USDA emergency farm loans due to losses caused by drought and other weather-related disasters. Six counties were named disaster areas in California due to high winds, drought and two separate fires that occurred last year. In Georgia, twenty-five counties are eligible for disaster assistance due to losses caused by drought that began January 1, 2001. Farmers in thirteen South Dakota counties will receive assistance as the result of extreme heat and drought conditions that began June 1, 2001. USDA loans will help Kansas farmers in seven counties recover from losses to corn, sorghum and other crops that were caused by severe drought and heat last year. The designations make all qualified farm operators in primary and contiguous disaster counties eligible for low-interest emergency disaster loans (EM) from USDA's Farm Service Agency (FSA), provided eligibility requirements are met. Farmers in eligible counties have eight months from the date of the declaration to apply for the loans to help cover part of their actual losses. FSA will consider each loan application on its own merits, taking into account the extent of losses, security available and repayment ability. Interested farmers may contact their local FSA offices for further information on eligibility requirements and application procedures. Additional information is also available online at: http://www.fsa.usda.gov/pas/disaster/assistance1.htm ~~USDA To Purchase Egg and Catfish Products for Nutrition Programs~~USDA has announced the purchase of approximately $10 million in egg products and up to $6 million of breaded catfish products for distribution through federal feeding and nutrition programs. USDA Undersecretary for Marketing and Regulatory Programs Bill Hawks said the purchases will provide some assistance for producers who have faced difficult economic times, as well as provide schoolchildren and needy families with a nutritious product. The amount of egg products purchased by USDA will depend on the quantities offered, prices bid and recipient requirements. Interested suppliers should contact the contracting officer, Agricultural Marketing Service (AMS) Poultry Programs, Commodity Procurement Branch. Inquiries on catfish purchases should contact the contracting officer of the AMS Livestock and Seed Program. Additional information is available from the AMS website at http://www.ams.usda.gov/cp. ~~Assistance for Apple Grower Assistance Begins April 29~~USDA announced that signup for the 2000 Apple Market Loss Assistance Program (AMLAP-II) will begin April 29, 2002. AMLAP-II will provide about $75 million to eligible growers for their 2000 crop apple production. The payments will help offset economic losses due to low prices in the U.S. apple market. Growers can receive a payment per pound for their 2000 crop apple production, and they will be paid on a maximum of five million pounds per separate apple operation. To receive cash payments, eligible apple producers must: (1) have produced and harvested apples during the 2000 crop year; (2) not have received compensation from any other federal program, other than crop insurance, for the same market loss; and (3) apply for cash payments during the application period for each apple operation. The deadline for application under the AMLAP-II program will be announced later. (Contact: Charlie Ingram) STATE NEWS BRONSON UNVEILS NEW SARASOTA STERILE MEDFLY FACILITY Florida Agriculture Commissioner Charles H. Bronson and USDA Under Secretary for Marketing and Regulatory Programs Bill Hawks have announced the opening of the new Sterile Insect Release Facility (SIRF) in Sarasota, Florida. The improved facility is the home base for the sterile fly release program operated jointly by the USDA and the Florida Department of Agriculture. The previous sterile fly facility at MacDill Air Force Base in Tampa was shut down for security reasons following September 11, 2001. "This sterile fly release program is part of our ongoing state and federal effort to minimize the impact of Mediterranean fruit fly outbreaks in Florida," Bronson said. "We've been medfly-free since October 2, 1998, and this preventive release program, along with our diligent inspection force, helps us stay that way." Added Hawks: "Cooperation with our state partners is an integral part of USDA's comprehensive system to safeguard American agriculture. USDA and Commissioner Bronson have done great work on this state-of-the-art facility, and we look forward to continuing our efforts to keep Florida medfly free." Florida began the ongoing sterile fly release program following an infestation of medflies in Central Florida in 1997. In a state free of medflies but with high-risk areas such as international airports or seaports, a preventive release program is designed to overwhelm any small numbers of wild flies that may enter the country in infested fruits or vegetables and eliminate them before they have a chance to become established. Sterile male flies mate with introduced wild females, which produce no offspring and thus halt the flies' life cycle. The medfly is a major threat to Florida's food supply. Female medflies bore into any one of 260 host fruits and vegetables to lay their eggs, and the maggot-like larvae then destroy the host fruit or vegetable before becoming flies themselves and beginning the process again. The new facility will allow increased sterile fly production. With technological advances made since 1997, the Preventive Release Program is able to do much more with fewer resources. Personnel have been reduced by nearly 60%, and the production process has become more automated and streamlined. Since February 8, flights operating out of the new 25,000 square-ft. facility have dropped millions of sterile male medflies over three high-risk areas of the state: Miami-Dade County, Tampa and Sarasota/Bradenton. Since May 1998, more than 11 billion sterile flies have been released over several hundred square miles of Hillsborough, Manatee, Sarasota and Miami-Dade counties. (Contact: Ned Davis, 352/372-3505) SNELL TO HEAD COOPERATIVE DEVELOPMENT CENTER The longtime director of the Cumberland Farm Products produce cooperative in Monticello, Kentucky, has been named executive director of the Kentucky Center for Cooperative Development (KCCD). Larry Snell will head an agency that offers training, access to educational materials, and technical assistance to 35 member cooperatives and other organizations. "Agricultural cooperatives can offer great opportunities to our farm families looking to add new income sources for their farms," Governor Paul Patton said. "Farmers in cooperatives can achieve economies of scale in input purchases and efficiencies in marketing over what they can often do individually." "Larry Snell's appointment is a boost to the development of grower cooperatives in Kentucky," Kentucky Agriculture Commissioner Billy Ray Smith said. "He will bring valuable insights gained from his years of experience." Snell was employed at Cumberland Farm Products for 33 years. He said he accepted the position at KCCD to share his knowledge and help up-and-coming cooperatives avoid mistakes that are common to new businesses. "We want to let people know how cooperatives can help them," Snell said. "Cooperatives enable farmers to do things they can't do by themselves." Snell managed five full-time employees and 75-100 seasonal workers at Cumberland Farm Products. Under his management, the cooperative encompassed 150 farmers growing 600-800 acres of cabbage, vine-ripened tomatoes, bell peppers and pumpkins with sales of $2-2.5 million a year. "Kentucky is in a prime position to expand on a national level in value-added products," Snell said. "We don't do nearly enough of that. Our growers are marketing raw product, and too often others are reaping the profits of our labor by doing things that we should be doing ourselves." A graduate of Berea College, Snell worked for three years in the cooperative extension service before going to work for Cumberland Farm Products. He and his wife, Sue, have two grown children. Kentucky growers took in $12 million from sales of vegetables in 2000, a 37 percent increase over 1999 receipts, according to the Kentucky Agricultural Statistics Service. The Kentucky Center for Cooperative Development reaches some 1,200 Kentucky farmers through its member groups. Partners in the KCCD include the University of Kentucky College of Agriculture, USDA's Rural Development programs, the Kentucky Agricultural Development Board, and the Kentucky Department of Agriculture. (Contact: Doug Thomas, 502/564-4696) LOAN PROGRAM HELPS LIVESTOCK PRODUCERS, ENVIRONMENT A dairy farm in Halfway, Missouri, has received the largest loan ever under the Missouri's Animal Waste Treatment System Loan Program, which helps independent livestock producers secure direct loans for animal waste treatment systems. Gallivan Farms, Inc., will use the loan to finance a new animal waste treatment system for its 580-head dairy operation. Established in 1995, the loan program helps independent dairy, livestock and poultry producers finance up to 100 percent of their animal waste treatment systems at terms below conventional interest rates. Loans can be used to buy land for lagoons, build animal waste facilities or purchase waste-handling equipment--all of which work to keep surface and ground water clean. Eligible facilities and equipment include storage structures, pipes, pumps, water and irrigation systems, manure spreaders and other similar items. Borrowers must have received approval on their systems from the Missouri Department of Natural Resources. Administered by the Missouri Agricultural and Small Business Development Authority, the loan program is a cooperative effort of the Missouri Departments of Agriculture and Natural Resources, the U.S. Environmental Protection Agency and the Missouri Clean Water Commission. For more information, call 573/751-2129, e-mail: masbda@mail.mda.state.mo.us or write the Missouri Agricultural and Small Business Development Authority, P.O. Box 630, Jefferson City, MO 65102. Program information can also be found on the agriculture department's web site: www.mda.state.mo.us/i11.htm. |
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