You are what you legislate

Thursday, February 6, 2014

Current Events: 2014 Farm Bill!


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
4-6 oranges (you can substitute 3-4 grapefruits or 10 clementines)
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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