Funding for Small Acreage Horticultural Producers. Luis A. Ribera Assistant Professor and Extension Economist June 7, 2011

Transcription

1 2008 Farm Bill Programs for Specialty Crops Funding for Small Acreage Horticultural Producers Luis A. Ribera Assistant Professor and Extension Economist June 7, 2011

2 Presentation Outline The 2008 Farm Bill Overview of Programs for Specialty Crops and Organic My Contact Info 2008 Farm Bill

3 What Is a Farm Bill? Long Definition Legislation developed by the agricultural committees of the House and Senate that, when passed into law, authorizes the USDA to initiate (and/or maintain) and manage a wide range of programs and program provisions for a specified period of time. Shorter Definition Tells USDA what to do, how to do it, who to do it for, and for how long Ex. Provide food assistance with food stamps to poor for the period 2008 to Each farm bill has a varying length with an expiration date. Recent farm bills 1985, 1990, , 2002,

4 Major Commodities We Typically Have Had Programs For Wheat Feed Grains (corn, grain sorghum, barley, and oats) Upland cotton Rice Oilseeds (soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, and mustard seed) Sugar Tobacco Peanuts Dairy Products (milk, butter, cheese, and NFDM) Wool and Mohair Honey Fruits and Vegetables

5 2008 Farm Bill Overview 5 year farm bill beginning in 2008 and ending in 2012 A number of provisions do not take effect until the 2009 crop year Comprehensive bill covering: Commodity programs Conservation Trade Nutrition Programs Credit Rural Development Research and Related Matters Forestry Energy Horticulture and Organic Agriculture Livestock Crop Insurance and Disaster Assistance Programs Commodity Futures Trade and Tax Provisions Miscellaneous } New titles in 2008 FB

6 Farm program spending as share of Federal budget outlays Percent Source: CBO, OMB, USDA budget projections and historical budget documents. Includes crop insurance premium subsidies and indemnities.

7 2008 Farm Bill Spending 12% Nutrition 8% 11% Farm Programs Conservation 69% Other Source: Congressional Budget Office (5/13/2008)

8 Farm Bill Programs Conservation and Environment Farming Opportunities Local and Regional Food Systems and Rural Development Organic Production Sustainable and Organic Research Renewable Energy Competitive Markets & Commodity Program Reform

9 Definitions: Beginning, Socially Disadvantaged, and Limited Resource Producers

10 Beginning Farmer or Rancher An individual or entity that has never operated a farm or ranch OR An individual or entity that has not operated a farm or ranch for more than 10 years Credit title also extends to organizations like cooperatives, corporations, or other entities (all must be related by blood or marriage and all meet beginning farmer requirements) NRCS programs specify that the individual or entity (all members) must substantially work in day-to-day operations

11 Social Disadvantaged (SDA) To qualify... Must belong to a group that has been subject to racial, ethnic, or gender prejudice SDA groups include: American Indians, African Americans, Alaskan Natives, Hispanics, Asian Americans, Pacific Islanders, and Women

12 Limited Resource Gross farms sales less than $116,800 Household income... Below the national poverty level for a family of four OR Less than 50 percent of the county median household income in each of the previous two years.

13 What are Specialty Crops? Definition by Congressional Research Service (CRS): Specialty crops include the following: Fruits and vegetables, Tree nut and nursery crops or producers, Processors, manufacturers and wholesalers, Importers and exporters.

14 Farming Opportunities Beginning Farmer and Rancher Development Program Technical Assistance to help beginning farmers and ranchers Now has mandatory funding Partnership of public and private groups 3-year term; max of $250K/year $75 million available Cooperative State Education and Extension Service (CSREES)

15 Farming Opportunities Outreach and Technical Assistance for Socially Disadvantaged Farmers and Ranchers Areas of Farm Management, Financial Management, Marketing, and Application and Bidding Procedures Grants: $ K Funding: $25 million CSREES

16 Local and Regional Food Systems and Rural Development Value-Added Producer Grant Program Cooperatives, groups, individual producers Now it includes also locally grown food products aggregated and marketed Grants: $ K; available $50K also Funding: 55 million Types: Commodity processing, market differentiation, commodity segregation, onfarm renewable energy, local food, and midtier value chain Rural Business Cooperative Service

17 Local and Regional Food Systems and Rural Development Farmer s Market Promotion Program Training and educational material programs for new farmers Strategies for creating innovative partnerships and networking Programs for professional development of farmer s market managers, vendors and organizations Grants: max of $100K; Funding: $33 million Agricultural Marketing Service (AMS)

18 Local and Regional Food Systems and Rural Development Specialty Crop Block Grant Program State Departments of Agriculture Food safety, security, nutrition, trade enhancement, education, research, promotion, marketing, among others Now has mandatory funding Min of $100K or 1/3 of 1% of total funding Funding: $232.4 million AMS

19 Organic Production National Organic Certification Cost Share Program Producers can receive up to 75% of annual certification costs up to $750/yr Up from $5 million to $22 million AMS

20 Organic Production Organic Conversion Assistance in the Environmental Quality Incentives Programs Beginning organic farmers or expanding organic operations Assistance w/up to 75% of costs of planning, design, materials, equipment, installation, labor, management, training and income forgone. Minorities up to 90% Up to $20k/yr and not exceeding $80K/6 yrs Funding: $7.325 billion Natural Resources Conservation Service (NRCS)

21 Sustainable and Organic Research Organic Agriculture Research and Extension Initiative Facilitate development of organic production Evaluate potential economic benefits Explore international trade Determine desirable traits Identify marketing and policy constraints Conduct advanced on-farm research and development Funding $78 million; CSREES

22 Sustainable and Organic Research Specialty Crop Research Initiative New Farm Bill program New varieties Pest control Production efficiency Innovations and technology Food safety Funding: $230 million CSREES

23 Small Acreage Horticulture Grower Business Series Equip producers with: business tools, such as knowledge of production, management, food safety, and marketing strategies training assistance for obtaining available governmental support from USDA

24 Thank you Luis A. Ribera Helen Rodriguez