Title I Commodities. Title II Conservation. Eliminate the Adjusted Gross Income (AGI) Limitation on Conservation Programs

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1 Specialty Crop Farm Bill Alliance 2018 Farm Bill Policy Recommendations As of August 31, 2017 Planting Flexibility Restrictions Title I Commodities Policy Recommendation - Congress should restore the prohibition against commodity growers being allowed to plant fruit and vegetable crops. The Alliance recommends returning to language used on the 2008 Farm Bill for planting flexibility. Tree Assistance Program (TAP) Policy Recommendation - Given the small margin for error in the production of specialty crops, the threshold for losses in this program should be lowered from 15 percent or greater to 10 percent or greater. In addition, the SCFBA supports an increase in payment limits and acreage limits similar to H.R with the inclusion that it apply to all crops that are eligible for the TAP program. Title II Conservation Strengthen the Role of Trade Associations in Conservation Policy Recommendation the Alliance believes that there is benefit to allowing trade association s to help aggregate the conservation proposals of their respective members. As such Congress should make changes to the conservation title to make it easier for such aggregation to occur. Eliminate the Adjusted Gross Income (AGI) Limitation on Conservation Programs Policy Recommendation The SCFBA supports removing AGI limitation on federal conservation programs. DUNS Number Change Policy Recommendation Congress should consider adding an exemption for all farms from compliance with the Data Universal Numbering System (DUNS) and other specified reporting requirements being required to do business with USDA regarding incentivizing conservation practices with NRCS. 1 P a g e

2 Title III Trade Market Access Program (MAP) Policy Recommendation The Specialty Crop Farm Bill Alliance supports the Coalition to Promote U.S. Agricultural Exports efforts to increase funding for the Market Access Program (MAP) under the next Farm Bill. Each year, more than 37 specialty crop organizations from around the country receive in excess of $50 million from this market development program. The aggregate dollar amount is equivalent to 25% - 30% of MAP funding allocated by the U.S. Department of Agriculture to MAP cooperators. Technical Assistance for Specialty Crops (TASC) Policy Recommendation It is the view of the Alliance to continue our support for this program at $9 million for each year of the Farm Bill implementation and to authorize use of funds for identified emerging trade barriers. Policy Recommendation It is the view of the Alliance that to ensure continuity of this valuable program Congress should take steps to ensure funding for TASC continues if the current Farm Bill is extended. Congress should also give the TASC program baseline funding at $9 million per year. International Maximum Residue Limits (MRL) Database Policy Recommendation Congress should allocate $11.5 million ($2.3 million annually) in mandatory funds to support the Global MRL Database at $800,000/yr; The Grower MRL Database at $300,000/yr and the IR-4 Project international at $1.2 million. Henceforth CODEX/MRL language shall be separated from TASC authorizations and requests. Trade Programs Impact on APHIS/FAS Policy Recommendation Congress should authorize additional funding to APHIS to restore key staff positions that will perform the mission designated and prioritize supporting the specialty crop industry in its export needs, protecting the domestic industry from invasive pests and diseases and should dollars remain available the needs of importing countries may be addressed. Policy Recommendation Congress should authorize funding for the Office of Foreign Service Operations supporting FAS s network of overseas offices to help promote and 2 P a g e

3 expand export opportunities for specialty crops. Additionally, we support a prohibition on funding for the Office of Trade Programs (OTP) or other FAS functions taken from Market Access Program funds and instead OTP should be provided with additional funding. Marketing and analysis specialists devoted to horticultural (specialty crop) commodities within FAS should be recruited immediately. Finally, State Department overseas security costs should not be borne by FAS and not take from other export programs. Title IV Nutrition Section 32 Direct Commodity Purchases and DOD Fresh Program Policy Recommendation Congress should continue Section 32 funding which targets specialty crops for minimum amount of purchases. In addition, $50 million should be continued to fund DoD Fresh Program. Policy Recommendation Congress should take steps to alleviate the issue of reports that some DoD Fresh prime vendors/produce distributors are being treated differently with regard to the earned income/rebate and allowances clause than broad liners. In addition, Congress should direct program administrators to implement a more efficient and timely system to account for price changes in produce and reduces bureaucratic red tape which can drive up prices for schools. Supplemental Nutrition Assistance Program (SNAP) and Food Insecurity Nutrition Incentive (FINI) Policy Recommendation Congress should maintain funding for FINI at $100M/5 years and increase funding to $200M/5 years. Policy Recommendation Congress should make the following statute changes to better align FINI with making SNAP healthier: - Ensure that supermarkets and major retail channels where SNAP families spend 80% of their SNAP benefits and have access to a wide variety of fruits and vegetables year round are more thoroughly incorporated into the FINI program; - Prioritize projects that provide opportunities to earn and redeem produce incentives year round for all FINI eligible fruits and vegetables; 3 P a g e

4 - Clarify that SNAP families receive incentives ONLY thru purchase of FINI eligible fruit or vegetable and that incentives can ONLY be redeemed for purchase of FINI eligible fruit or vegetable. Delete other FINI triggers ; - To improve effectiveness and increase redemption rates, USDA should develop and disseminate retail best practices and encourage FINI retail projects to implement best practices; - Standardize list of FINI eligible fruits and vegetables to be consistent with WIC eligible fruits and vegetables. WIC eligible fruits and vegetables includes fresh, canned, frozen and dried fruits and vegetables without added sugar, salt, or fat; - Emphasize importance of collaboration with SNAP-ED; - Support evaluation to build evidence-base for future policy change; - USDA should disseminate a comprehensive summary of FINI research findings and other relevant scientific literature about increasing SNAP fruit and vegetable purchases/ consumption and health outcomes. Fresh Fruit and Vegetable Program (FFVP) SCFBA has established an FFVP working group that will determine SCFBA recommendations for the Fresh Fruit and Vegetable Program. Title VI Rural Development Value-Added Agricultural Market Development and Program Grants Policy Recommendation Congress should reauthorize and continue to fund the Value- Added Producer Grant program. Rural Development Farm Labor Housing Loans and Grants Policy Recommendation Given that the H-2A program is a necessity for many specialty crop producers to obtain an affordable, legal workforce, Congress should strike language in this program that excludes H-2A workers as eligible tenants in the Rural Development Farm Labor Housing Loans and Grants program. Specialty Crop Research Initiative (SCRI) Title VII Research Policy Recommendation Congress should allocate an additional $25 million in annual mandatory spending be provided for SCRI. This increase will provide for the emergency needs of the citrus industry and allow the broader specialty crop industry to realize the 4 P a g e

5 full $80 million benefit that Congress originally envisioned. Therefore, the full SCRI program request including the temporary citrus funding would amount to $105 million annually. Recommendation - In regard to the current SCRI priority research areas, the following enhancements (in bold and underlined) are recommended for 2018; SCRI priority research areas: New innovations and technology, including: a. mechanization and automation of labor-intensive tasks on farms and in packing facilities; b. technologies that delay or inhibit ripening; c. decision support systems driven by phenology and environmental factors; d. improved monitoring systems for agricultural pests; e. effective systems for pre and post-harvest management of quarantine pests. Research in plant breeding, genetics, genomics, and other methods to improve crop characteristics, such as: a. Product, taste, quality, and appearance; b. size controlling rootstock systems for perennial crops; c. Environmental responses and tolerances d. Nutrient management, including plant nutrient uptake efficiency e. Pest and disease management, including resistance to pests and diseases resulting in reduced application management strategies f. Enhanced phytonutrient content. Efforts to identify and address threats from pests and diseases, such as: a. threats to specialty crop pollinators; b. emerging and invasive species; c. more effective understanding and utilization of existing natural enemy complexes; Efforts to improve production efficiency, handling and processing, productivity, and profitability over the long term (including specialty crop policy and marketing) and a better understanding of the soil rhizosphere microbiome; d. pesticide application systems and certified drift-reduction technologies; e. systems to improve and extend storage life of specialty crops. 5 P a g e

6 Methods to prevent, detect, monitor, control, and respond to potential food safety hazards in the production, efficiency, handling, and processing of specialty crops, including fresh produce. Automation/Mechanization Policy Recommendation The Specialty Crop Farm Bill Alliance believes that it is imperative to have resources available to stimulate projects that will provide solutions to help the specialty crop industry accelerate automation and mechanization. Therefore, SCFBA will work with both the House and Senate Agriculture Committees during Farm Bill discussions to determine what current research and specialty crop specific programs currently at USDA could enhance research resources related to automation/mechanization. Programs to be assessed include SCRI, AFRI, State Block Grants, FFAR, and any other programs that can focus additional resources to this important area of research. Included in the assessment should be a determination if a separate legislative initiative should be pursued to address mechanization research. Food Safety Research Priority Policy Recommendation SCFBA believes that it is imperative to have resources available to increase projects that will provide solutions and good practices to help the specialty crop industry provide healthy crops, while meeting the requirements of the Food Safety Modernization Act (FSMA). Office of Pest Management Policy Policy Recommendation Congress should increase funding for the Office of Pest Management Policy to $5 million annually. Specialty Crop Block Grant Programs (SCBG) Title X Horticulture and Organics Policy Recommendation - The SCBGP should be maintained at a funding level of not less than $80 million annually; also, the set-aside of not less than $5 million for multi-state projects should also be maintained. Policy Recommendation Continuing to build on Specialty Crop Block Grant integrity, Congress should provide effective language that focuses on program outcomes that applications must conform to in order to qualify for awards, to ensure that grant projects truly enhance the competitiveness of specialty crops. 6 P a g e

7 Organics Policy Recommendation - In order to promote clarity among state departments of agriculture regarding their funding levels at the time their requests for grant proposals are posted, the Agriculture Marketing Service (AMS) should seek to post their Notice of Funding Availability earlier than the current timeframe of March of each year, if possible within budgetary time constraints. Recommendations for optimal timing of AMS s notice include December of the prior year or January of each grant year. Policy Recommendation - The 2014 Farm Bill proposed a new multi-state project setaside for projects that solely enhance the competitiveness of specialty crops involving food safety, plant pests and disease, research, crop-specific projects addressing common issues, and any other area as determined by the Secretary. USDA may use noyear funding of $1 million in 2014, increasing $1 million per fiscal year to $5 million in 2018 to support multi-state projects. State departments of agriculture in the 50 States, U.S. territories, and the District of Columbia are eligible to apply directly to USDA for these funds. The Specialty Crop Farm Bill Alliance also supports Congress clarifying multi-state block grant applications and approval of multi-state projects be reviewed directly by the Agriculture Marketing Service (AMS). Policy Recommendation Production of organic crops is important to the overall specialty crop industry in the U.S. According to ERS data, in 2015 specialty crops accounted for 46% of total organic sales. With such significant growth since the last Farm Bill, The Alliance has formed a working group to examine what positive changes can be made within the organic space. Plant Pest and Disease Management and Disaster Prevention Policy Recommendation - The Specialty Crop Farm Bill Alliance recommends $75 million/year in mandatory funding for FYs 2019, 2020, 2021 and $82.5 million for FYs 2022, 2023 and each year thereafter. National Clean Plant Network Policy Recommendation - The Specialty Crop Farm Bill Alliance recommends mandatory funding at no less than $7.5 million for FYs 2019, 2020, 2021 and at no less than $10 million for FYs 2022, 2023 and each year thereafter. 7 P a g e

8 Food Safety Modernization Act Policy Recommendation The SCFBA supports funding through the Farm Bill for the Produce Safety Alliance (PSA) which was established by FDA and USDA, developed the only FDA- recognized curriculum which sets a standard for training as required under the FSMA produce safety rule. The Produce Safety Rule requires that any farm growing fresh produce that will be consumed by Americans must have at least one staff person or responsible party who has been trained to the FDA-recognized curriculum or its equivalent. Funding for PSA will be exhausted in 2018, the year that the Produce Safety Rule goes into effect for most growers. The produce industry believes it s important that business continuity is needed to maintain the competitiveness and regulatory compliance of many specialty crop farmers. Policy Recommendation The SCFBA believes that under the EQIP, provisions should be included that will help specialty crop farmers comply with FSMA requirements. FSMA will require farmers and others in the fresh produce industry to update their infrastructure in order to improve food safety. In some cases, these changes may also improve operational efficiency and environmental sustainability. In addition, there has long been recognition that some practices benefit conservation and food safety, i.e., conversion from furrow to drip irrigation. Cost share payments under EQIP or a new Produce Program could assist farmers with investments to prevent foodborne outbreaks. Policy Recommendation Similar to EQIP, SCFBA supports USDA Rural Development Programs to allow for investment into specialty crop investment for infrastructure development. For example, development of packing shed sanitary design and/or retrofitting may help enhance food safety in specialty crop operations. Federal Crop Insurance 508(h) Title XI Crop Insurance Policy Recommendation The Alliance believes crop insurance is a vital part of a producer s risk management system. As such the Alliance will oppose efforts to significantly cut the crop insurance program as was attempted in the last farm bill cycle. Recommendation - The Alliance should push for the creation of food safety and quarantine riders by statute for all crops that would like to have one. 8 P a g e

9 MISC Recommendations Port Issues Policy Recommendation - Congress should take steps to forestall any economic losses caused by port issues. Congress should seek a relief mechanism via appropriate legislation such as infrastructure legislation to seek the desired objective. School Breakfast Program Policy Recommendation SCFBA supports efforts to increase school breakfast program funding. Immigration Reform Policy Recommendation Throughout the Farm Bill hearing process and listening sessions leading up to the reauthorization of the Farm Bill, the specialty crop industry has consistently cited ongoing, increasing challenges in recruiting and maintaining a skilled, dedicated workforce to fill the crucial jobs, particularly in harvesting and processing, as their top policy concern. While immigration policy is not technically part of the Farm Bill, the lack of long-overdue reforms in our nation s immigration system threatens the ability to fully realize the promise of specialty crop production Farm Bill policies have provided in previous Farm Bills. Therefore, the Specialty Crop Farm Bill Alliance supports immigration reform that includes these three specific changes to immigration law: 1. Transition falsely documented workers to a legal status under appropriate conditions. 2. Create a workable new guest worker program that addresses the needs of labor intensive agriculture without unreasonable limitations on visas. 3. Implement e-verify after this new immigration law is fully implemented. 9 P a g e