The
Agricultural Act of 2014, long overdue, would make significant changes in farm
policy. This bill is expected to cost $956 billion over the next ten years,
with savings of $16.6 - $23 billion from cuts. It has passed both the House and
Senate, with the support of many industry as well as conservation groups, and
is expected to be signed by President Obama this Friday.
Ending Direct Payments
These
are annual payments made to farmers based on historical production of program
crops, whether or not the farmer is planting that crop in a given year or
planting anything at all. These cost about $5 billion per year, and were not
meant to be a permanent program when they began 18 years ago as a way to ease
farmers off other subsidies. While some farmers, especially Southern cotton,
peanut, and rice farmers, will be hurt by the shifting emphasis from direct
payments to insurance, many farmers will benefit from greater coverage and higher
payouts. Part of the idea with the shift is eliminating payments to farmers who
don’t need them and refocusing support to instances where farmers have actually
suffered losses. Farmers will choose between two types of programs,
Agricultural Risk Coverage or Price Loss Contract, which provide different
structures for payments when prices fall below a five-year average, in the case
of ARC, and below a price floor set by the government, in the case of PLC.
Expanding Federal Crop Insurance
Crop
insurance has become the central part of support to agriculture in the US, even
more so now with the elimination of direct payments. Subsidized insurance
coverage is expanded to protect farmers when prices drop below a certain level,
and for the losses that occur before insurance kicks in, known as “shallow
losses” (yes, its basically insurance for what insurance doesn’t cover). For
example, if corn prices fall below $3.70 a bushel, or if wheat prices fall
below $5.50, farmers will receive payments. This bill raises the price floors
for all 14 crops covered under the insurance, meaning that payments will kick
in sooner if prices fall. This is the PLC program mentioned above.
These
programs may cost less than the direct payments, but if we see more weather
events like the last few years – droughts, extreme heat, late planting due to
cold springs – insurance payouts could be very expensive.
This
version of the farm bill also requires basic soil and wetland protection steps
for farmers to qualify for insurance. These types of requirements are extremely
important for limiting soil erosion, protecting wetlands, and reducing use of
marginal land for farming. There is also a “Sodsaver” provision, which limits
subsidies for farming on fragile grasslands. Unfortunately, this program only
applies to six Midwestern states, rather than nationally.
Cutting Funding for Food Stamps
Funding
for the Supplemental Nutrition Assistance Program (SNAP), which accounts for over
three-quarters of program expenditures, was cut by $800 million per year, $8
billion over the next ten years. This amounts to about 1% of its total funding.
The cuts, pushed for by conservative lawmakers, are expected to reduce benefits
to over 850,000 households who are also enrolled in a federal heating assistance
program. They will lose about $90 per month in SNAP benefits.
Increased Research Funding
The
new Farm Bill provides $512 million over the next five years for agricultural
research, $400 million of which will focus on specialty crops – fruits,
vegetables, and tree nuts. One-third of this $400 million must be spent on
citrus diseases, a big win for that industry. As a way to raise additional
funds, Congress created the nonprofit Foundation for Food and Agriculture
Research, which will receive up to $200 million in government funding that can
be matched by outside donors. Funding for research on organic production was also
increased, to $100 million.
Animal Rights Victory
Representative
Stephen King of Iowa (R), pushed an amendment that would have blocked a
California law requiring all eggs sold in the state to come from chickens
raised in non-confining cages. It passed in the House version but was dropped
in the Senate. Critics said his amendment could have invalidated hundreds of
state laws on animal protection and food safety. King argued that it violated
the interstate commerce clause, which seems to be a classic fallback argument
when someone’s profitability is at stake. In this case, it was that of the Iowa
egg producers who support Representative King.
Hemp Production
Supporters
of industrial hemp (which has very low levels of THC; it’s not the same as marijuana)
helped pass a provision allowing colleges and state agencies to grow and
conduct research on hemp in the nine states where it is legal under state law –
growing or using it is currently illegal under federal law. This is a huge
victory for everyone, since fast-growing, hardy hemp can be used to make
building materials, paper, clothing, food (the oil is an excellent source of
essential fatty acids and very low in saturated fat), and as a replacement for
some petroleum-derived oils and chemicals. (It’s another story entirely, but
the prohibition of hemp production has ultimately benefited oil, timber, and
other industries while denying the American people use of an incredible, highly
versatile plant that has been appreciated by human societies for thousands of
years.)
Many groups were happy with this Bill, for the increased
conservation measures, research funding and crop insurance it provides; many
were unhappy with cuts to food stamp funding, the end of direct payments, and
the continuation of country-of-origin labeling for meat (the industry claims it
increases costs). I was especially happy to see increased funding for fruit and
vegetable research, legalization of hemp production, and conservation
requirements for crop insurance. It will be exciting to see how the Agricultural
Act of 2014 shapes food production, policy, and trade in the coming five years.
Since there is increased research funding for citrus diseases, here is a delicious recipe for citrus-watercress salad:
Citrus-Watercress Salad
1 bag watercress
3 tbsp. orange juice
1 tbsp. white vinegar
1 tbsp. minced shallot
1 tsp mustard
½ c olive oil
Directions
1. Make the vinaigrette: add orange juice, vinegar, shallot, and mustard to a blender and blend until thoroughly combined. With the blender running, slowly pour in olive oil. You can also just shake it all together in a jar.
2. Section the oranges: cut off a thin slice from the top and bottom, and with the fruit sitting on a flat side, cut a section of the peel off with a curving downward motion of your knife. Work around until all the peel is off. Then, holding it in your hand, make two cuts on each side of a section so you can remove
3. Place the watercress in a bowl, top with orange sections and vinaigrette. Toss gently and serve.
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