National Campaign for Sustainable Agriculture

2008 Farm Bill Analysis—National Campaign for Sustainable Agriculture Priorities

Key:
W – Win
PW – Partial Win
L – Loss

Issue	NCSA Position	Conference Report/Language
Organic
Certification Cost Share	Provide $25 million in mandatory funding over life of the farm bill / increase payment limitation to $750 per farm. 2002 funding level was $5 M	W - $22 million in mandatory funding over 5 years. Payment limitation of $750 per farm. Includes state and federal recordkeeping and reporting requirements.
Organic Data Collection	Improve data collection for organic agriculture	W - $5 million mandatory with an additional authorization of $5 million annually. Sec. shall at a minimum: collect and distribute comprehensive reporting of organic prices create surveys, analysis and reports on organic production, handling, distribution, retail, and trend studies.
Organic Conversion Assistance	Establish a national organic conversion program to provide technical and financial assistance with annual funding of $50 million - split equally between TA and financial assistance. Capped at $10,000 per farm.	PW - New payment authorized under EQIP for practices related to Organic production and to the transition to organic production. Producer must develop and implement an organic system plan. Payment limit of $20,000 per year or $80,000 over 6 years — excluding payments for technical assistance. Funded with EQIP
Easy Organic Crosswalk Conservation Stewardship Program Eligibility	Provide dual eligibility for CSP with organic certification and a higher tier payment for organic practices.	W - The Sec. shall establish a transparent means by which producers may initiate organic certification under NOP while participating in CSP. Manager's report: "The Managers expect the Secretary to coordinate this program and the organic certification process to the maximum extent practicable." Sec. must provide technical assistance appropriate to organic and specialty crop producers. No higher tier payment for organic but an additional payment for resource conserving crop rotations.
Crop Insurance	Reform risk management programs to ensure greater fairness for organic producers.	PW -Secretary is directed to review the underwriting risk and loss experience for organic crops as compared with conventional; and unless there is a significant, consistent, or systematic variation in loss history found using the widest available range of data collected by Sec and other outside sources, must eliminate or reduce the premium surcharges for organic crops. The review is to be updated annually. Additional price election: Secretary to develop a procedure to allow organic producers an additional price election that reflects actual prices received. For crops for which there is sufficient data, to be available by the 2010 crop year. Sets a goal of applying to all organic crops within 5 years.
Organic Agricultural Research and Extension Initiative		W - $78 million in mandatory funding over 4years with additional funding of $25 million annually authorized. Two new grant purposes: Examining optimal conservation and environmental outcomes relating to organic production; and Developing new and improved seed varieties that are particularly suited to organic agriculture.
Seeds and Breeds	Establish “classical plant and animal breeding” as national research priority	W - New Agriculture and Food Research Initiative (AFRI) under CSREES to provide competitive research grants, includes a sub-category for “conventional breeding” defined in Manager’s report as referring to “breeding techniques which rely on creating an organism with desirable traits through controlled breeding…critical to the development of seeds and breeds that are well adapted to local conditions and changing environmental constraints.”
GMO Liability	Establish a liability regime that places economic risk of loss from genetic contamination upon GMO patent holders and seed manufacturers.	L – But, USDA was directed to take action in response to the Inspector General’s Report of 10/4/07 and to promulgate regulations to improve the management and oversight of articles regulated under the Plant Protection Act.
Collective Bargaining Rights for organic producers.	Ensure collective bargaining rights by closing loopholes in the Agricultural Fair Practices Act.	L - Amendment to the Agricultural Fair Practices Act making it unlawful to “fail to bargain in good faith with an association of producers” was deleted in conference.
Conservation
Conservation Security Program	Ensure that CSP is the keystone conservation program for working agricultural land by providing: Adequate and mandatory funding to ensure a continuous and nationwide sign up Streamline payment structure Protect strong standards and criteria Restore emphasis on conservation planning Improve the delivery of technical assistance to CSP farmers.	W - Program renamed Conservation Stewardship Program. Continuous and nationwide sign up. MR - “The Managers specifically intend that the program not be restricted to particular watershed enrollments.” Funding adequate to enroll 12.7 million acres a year through 2017 at an average rate of $18 an acre. Additional payments to farmers who agree to adopt resource conserving crop rotations for the life of the contract. RCCR defined. Strong emphasis on conservation planning. To be eligible, farmer must be meeting the stewardship threshold for at least 1 priority resource of concern, and would at a minimum meet the threshold for an additional resource concern by the end of the contract. Ranking criteria; number and extent of resource concerns addressed. 5 year contracts with opportunity for renewal. Organic cross walk. Sec. directed to provide technical assistance appropriate to organic and specialty crop producers. Payment limit of $200,000 in any five year period.
Conservation Reserve Program	Retain as the major land retirement program	W - Program extended to 2012. Max enrollment capped at 32 million acres. $25 million over 4 years to facilitate transfer of land to BSDFR. Land under contract to a retiring farmer may be transferred to a BSDFR, if returned to production using sustainable grazing or crop production methods. Retiring farmer to receive an additional two years of payments under contract if sale or long term lease or lease with an option to purchase. MR “The Managers encourage the Secretary to conduct outreach to encourage producers who are transitioning land out of the conservation reserve program to protect conservation values by enrolling in CSP.”
Wetland Reserve Program	Retain WRP at no less than 250,000 acres/ per year.	PW - Reauthorized. Maximum enrollment capped at 3 million acres/ 185,000 new acres annually. Easements purchased for < $500,000 to be paid in not more than 30 annual installments; > than $500,000 lump sum or at least 5 but not more than 30 annual payments.
Strengthen Conservation Compliance and Native Sodsaver	Impose a sodsaver provision prohibiting crop insurance and price and income support for crops for conversion of native prairie and permanent grasslands to crop production.	HEL good faith reviews- If violation in good faith or minor or minimal, Secretary shall reduce program benefits in an amount commensurate with the seriousness of the violation. L - Native sod that has been tilled for an annual crop ineligible for crop insurance and non-insure disaster assistance during the first five crop years of planting but only at the election of a Governor in a state in the Prairie Pothole region national priority area. MR directs a study on influence of crop insurance on conversion of native sod to crop production.
Wildlife Habitat Incentives Program	Increase overall proportion of WHIP funding for 15 yr. contracts from 15% to 25% with full cost share for special projects that address listed species of concern.	PW - Reauthorized, no new funding.
EQIP Payment Limitation	Restore EQIP payment limitation of $150,000 and restore ban on funding for new or expanding CAFOs	PW - Payment limit of $450,000 reduced to $300,000 over 6 years, but the secretary may waive and raise the limitation to $450,000 for projects of special environmental significance such as methane digesters.
Livestock Title
Packers and Stockyards Act Reform	Ban packer feeding(ownership and control) ; Production Contract (k) Reform; include coverage for poultry; limit the use of preferential pricing	PW - Packer ban lost in conference Contract grower may cancel k within 3 days/ k must disclose right and method for cancellation. k must conspicuously state that large capital investments may be required – and included in any k which is amended, renewed or extended. Forum for dispute resolution is judicial district where principal part of the performance takes place (farm rather than company’s headquarters.) Choice of law provision. Producers have the right to opt out of mandatory arbitration provisions at the outset of the k. If P opts out, both parties may consent to arbitration after a controversy arises. Directs Secretary to promulgate regulations within 2 years to establish criteria to determine a range of issues: 1. whether an undue or unreasonable preference or advantage violates the act; 2. whether a live poultry dealer has provided adequate notice of suspension of delivery; 3. when requiring additional capital investment under a poultry or swine k violates the act; 4. If a dealer or contractor has provided reasonable period of time to cure a breach of the k. 5. Whether an arbitration process provided in a k violates the act.
Agricultural Fair Practices Act	Prohibit packer discrimination against a producer for belonging to or forming a producer association.	L - Amendment to the Agricultural Fair Practices Act making it unlawful to “fail to bargain in good faith with an association of producers” was deleted in conference
Country of Origin Labeling	Implement country of origin labeling for beef, lamb and fresh fruits.	W - Imposes new country of origin labeling requirements for beef, lamb, chicken, pork, and goat meat, certain nuts, ginseng and wild fish requiring retailers to designate origin of covered commodities.
Interstate Shipment of State Inspected Meat	Allow the interstate shipment of state inspected meat.	Certain small plants may ship in interstate commerce meat items with a federal inspection sticker – USDA selects plants, provides technical assistance and training to state meat inspection agency. Only plants with less than 25 employees are eligible – but Secretary may develop a procedure to transition plants that employ 25 to 35 employees; excludes plants that are now federal facilities. Federal cost share provided for state inspection of not less than 60%. Secretary is directed to establish a technical assistance division to provide outreach, education and training to very small plants. Transition grants available to state agencies to assist transition.
Rural Development and Local Food Systems
Rural Microenterprise Assistance Program	Create a Rural Entrepreneurial and Micro enterprise Program and fund it at a mandatory $50 million	PW - $15 million in mandatory funding over 4 years with an additional authorization of $40 million annually to create a Rural Micro entrepreneur Assistance Program. Grants and loans to entities providing micro credit, training and technical assistance to start up or expanding rural businesses
Value Added Producer Grant Program	Provide $60 million in mandatory funding; set aside 10% for SDFR; and 10% for outreach and technical assistance to underserved states; new grant categories for food value chains that help midsized farmers. FY 07 funding was $20.3 million	PW - $15 million in mandatory funding until expended with an additional authorization of $40 million annually. Priority established for projects that contribute to increasing opportunities for BSDFR and small and medium sized farms structured as family farms. 10% set aside for BSDFR. 10% set aside for projects that propose to develop mid tier value chains defined as local and regional supply networks that link independent producers with business and cooperatives that market value added ag products in ways that strengthens profitability and competitiveness of small and mid-size farmers and involves producer based business ventures engaged in the value chain marketing strategy. The Secretary is also directed to offer a simplified application form and process for proposals of less than $50,000.
Farmers Market Promotion Program	Reauthorize and increase funding to $25 million annually in mandatory funding over 5 years; $ for EBT;	W - $33 million in mandatory funding over 5 years. 10% set aside to support the use of electronic benefits transfers under federal nutrition programs. Now includes agri-tourism activities as an eligible program focus.
Community Food Projects	Reauthorize, expand and provide $60 million in mandatory funding	PW- $5 million in mandatory annual funding for Community Food Projects §4402 also provides for the creation of Healthy Food Enterprise Development Centers. Grants to eligible entities to increase access to healthy affordable foods, including locally produced agricultural products to underserved communities. The Centers will provide technical assistance and information to small and midsized ag producers, food wholesalers and retailers for aggregating, storing processing and marketing locally produced ag products. $1 million mandatory annually for 2009 – 2011 with additional authorization of $2 million for 2012.
Business and Industry Loans	No position	New loan category for Business and Industry guaranteed lending program for individuals, cooperatives, and other entities to establish and facilitate enterprises that process, distribute, aggregate, store, and market locally or regionally produced agricultural food products to support community development and farm and ranch income. Priority for projects that serve underserved communities defined as urban or rural communities and tribal communities with limited access to affordable, healthy foods including fresh fruits and vegetables and a high rate of hunger or food insecurity or a high poverty rate. Local means the product is transported less than 400 miles. 5% of B and I funds reserved until April 1 of each fiscal year for these kinds of loans – about $50 million a year.
Renewable Energy
Producer Incentives for bio-energy crop production.	Favor principals of sustainability, decentralization, and local ownership.	W - Section 9011 creates a Biomass Crop Assistance Program to provide cost share and annual incentive payments to producers who grow eligible annual or perennial crops for conversion to bioenergy. Crops of renewable biomass defined as: Any organic matter available on a renewable or recurring basis including feed grains, other agricultural commodities, other plants and trees, crop residues, other vegetative waste material including wood waste. Excluding Title I commodities and invasive or noxious plants. ” The Managers also intend that the primary focus of the BCAP will be promoting the cultivation of perennial bioenergy crops that show exceptional promise for producing highly energy-efficient bioenergy, that preserve natural resources, and that are not primarily grown for food or animal feed.” Project area to be within an economically practicable distance from bioenergy facility. Privately owned farm and forestland is eligible - Excludes: Federal and state-owned land Native sod as of the date of enactment of FB Land in the CRP, WRP, GRP. Selection criteria include local ownership, participation by BSDFR, the impact on soil, water and related resources including wildlife and the variety of production approaches and poly culture mixes.
Socially Disadvantaged Farmers and Ranchers	Increase and expand the Section 2501 Outreach and Technical Assistance Program for SDFR	W - §2501 $75 million mandatory funding over 4 years - for outreach and technical assistance to SDFR, Grants and contracts to eligible entities to assist SDFR in becoming owners and operators of farms and ranches; and in participating equitably in the full range of agricultural programs offered by the Department. Adds a requirement that outreach be linguistically appropriate.
Beginning Farmers and Ranchers	Fund the Beginning Farmer and Rancher Development Program at $15 million annually. Create and Fund an Individual Development Account program for Beginning Farmers.	W - $78 million in mandatory funding over 4 years. W - Creates a pilot program to be offered in 15 states; New Farmer Individual Development Accounts Pilot Program. federal funds (50% match) to qualified entities to administer reserve fund providing a 100 to 200% match to personal savings accounts of participants up to $6,000 per year to purchase farmland, equipment, livestock or other farm assets. No mandatory funding. Administered by FSA. MR - It is the Managers’ intent that eligible participants must also complete financial training established by the qualified entity establishing the IDA for the participant. Such training may involve education and technical assistance related to budgeting, business planning, recordkeeping, banking, farm credit management, cash flow management, market development, equity investment, land access and land tenure options, and other similar financial training needs. $5 million authorized annually for 2008 – 2012.