Farm and Conservation Groups Oppose Obama’s Proposed Farm Bill Cuts
February 5th, 2010
In a February 5 letter to the House and Senate Agricultural Appropriations Subcommittees, farm, conservation and environmental groups urged Congress to reject President Obama’s proposed $1 billion-plus cut to mandatory farm conservation program funding. The letter, coordinated by NSAC, was signed by 37 organizations including Audubon, Clean Water Network, Environmental Defense Fund, Izaak Walton League of America, National Farmers Union, National Association of Conservation Districts, and National Wildlife Federation.
The funding placed on the chopping block by the President was agreed to and signed into law as part of the 2008 Farm Bill. In his 2011 budget, submitted to Congress on February 1, Obama proposes to use a backdoor mechanism to reverse the farm bill decision. The proposed budget chicanery would limit the ability of USDA to pay their conservation service employees if they implement a program beyond a reduced size and scope dictated in the White House proposal.
The Obama proposal includes one-year cuts to the Environmental Quality Incentives Program, Wildlife Habitat Incentives Program, and Farm and Ranch Land Protection Program, and one year and multi-year cuts to the Conservation Stewardship Program, Wetlands Reserve Program, and Grasslands Reserve Program. The one year cuts exceed $500 million and the long-term cuts exceed $1 billion.
“It is sadly ironic for the White House to scale back its commitment to the sustainability of agriculture in the very same week it trumpets a more aggressive promotion of corn-based ethanol,” commented NSAC Policy Director Ferd Hoefner. “If anything, now is precisely the time to redouble efforts to protect the rural environment and help farmers steward their resources. Congress would choose well to maintain its conservation commitments, reject the misguided Obama cuts, and begin to explore avenues to more vigorously advance sustainability in the next farm bill.”
The full letter can be read here.
2011 Budget Drilldown: Organic Programs
February 5th, 2010
This post is the seventh in a series of commentaries by NSAC staff on the President’s 2011 budget, released on February 1st. To read the overview by Executive Director Aimee Witteman click here. Look out in the following days for the final budget analysis on conservation programs.
The President’s budget request for Fiscal Year 2011 cuts some organic funds and increases others.
National Organic Program: The President’s budget request for NOP is $10.08 million; a $3.11 million increase over last year’s enacted level. This increase includes an additional $2.11 million for regulatory review, enforcement, and equivalency agreements, and a one-time $1 million to assist accredited certifying agents in achieving compliance with the International Organization for Standardization (ISO).
Organic Production and Market Data Initiatives (ODI): There is a total of $800,000 for ODI in the President’s budget request, split between the Agricultural Marketing Service ($300,000) and the National Agricultural Statistics Service ($500,000). This request is $4.2 million short of the initiatives’ discretionary authority in FY 2011.
Organic Research Programs: The President’s budget request cuts to funding for organic research. For more information, check out our research budget drill down post.
Organic Certification Cost Share: While the President’s budget request does not cut the National Organic Certification Cost Share (NOCCS) program, the request does cut the Agricultural Management Assistance (AMA) program, which provides cost share assistance to the sixteen states not included under the NOCCS – the twelve Northeastern states plus Hawai‘i, Nevada, Utah, and Wyoming. The proposal cuts the program from $15 million to $10 million in FY 2011, resulting in a cut of $500,000 for certification cost share funds for AMA states.
2011 Budget Drilldown: Regional Innovation Initiative
February 4th, 2010
This post is the sixth in a series of commentaries by NSAC staff on the President’s 2011 budget, released on February 1st. To read the overview by Executive Director Aimee Witteman click here. Look out in the following days for the final budget analyses on conservation and organic programs.
USDA’s 2011 Budget request includes a new Regional Innovation Initiative designed to support regional planning and coordinate USDA assistance in rural communities for initiatives that are likely to have a greater regional economic impact.
USDA plans to set-aside about five percent of the funding from approximately 20 existing programs for a total of $135 million and allocate these funds competitively among regional pilot projects tailored to local needs and opportunities.
Rural Development’s proposed 2011 budget includes $1.4 million for staff to provide technical assistance and support for rural communities developing regional strategic plans. The 20 grant and loan programs participating in RII come from across USDA, mainly Rural Development, the Marketing and Regulatory Programs, and Natural Resources and Environment.
Rural Development will also be more focused in 2010 on regional food system work, most particularly on supporting the development of grocery stores in food deserts. (This is in addition to the Department’s proposed new Healthy Food Financing Initiative.)
NSAC understands that Rural Development will also use some reprogrammed money from this fiscal year (2010) to support the effort. We will release details as soon as we know more.
To learn more about the Regional Innovation Initiative, check out page 14 of the USDA’s budget summary.
2011 Budget Drill Down: Healthy Food Financing Initiative
February 4th, 2010
This post is the fifth in a series of commentaries by NSAC staff on the President’s 2011 budget, released on February 1st. To read the overview by Executive Director Aimee Witteman click here. Look out in the following days for more budget analysis on organic programs, conservation, rural programs and more.
The Administration’s 2011 Budget request includes a proposed $400 million investment in grocery stores, supermarkets, farmers markets and other food retail in underserved urban and rural communities known as food deserts.
Conceived as a public-private grant and loan program, the investment would be split among USDA, Health and Human Services (HHS) and the Department of the Treasury. USDA’s share is a projected $50 million.
The Healthy Food Financing Initiative is based on Pennsylvania’s successful Fresh Food Financing Initiative that over the past five years has invested $30 million in government dollars to leverage an additional $165 million in private investment resulting in almost 80 new and refurbished stores in rural and urban communities across the state creating or retaining almost 5,000 jobs.
For more information on food deserts, see USDA’s report issued last summer Accessing Affordable and Nutritious Food — Measuring and Understanding Food Deserts and Their Consequences.
USDA Releases Organic Production Survey Results
February 4th, 2010
USDA’s National Agricultural Statistics Service (NASS) has released the first-ever in-depth survey of U.S. organic agriculture. A follow-on to the 2007 Census of Agriculture and funded through the Organic Production and Market Data Initiatives in the 2008 Farm Bill, the survey collected 2008 data from USDA-certified organic farmers, farmers transitioning to organic production, and farmers exempt from certification because of sales totaling less than $5,000. Information from farmers who followed National Organic Program standards, but were not certified or exempt, was not included in the report.
The survey counted 14,540 organics farms (3,637 of which were exempt) and ranches on 4.1 million acres. The survey collected information on organic sales by state and by category of product, production practices (primarily focused on conservation practices), production expenses, marketing outlets, and prodcuers’ 5-year plans. To access the full report and individual tables, click here.
Among the many interesting figures, the report has interesting stats on profitability of organic farms. In 2008, organic farms had average annual sales of $217,675 , compared to the $134,807 average for all U.S. farms (2007 Census of Agriculture). Figuring in production expenses (an average of $171,978 per farm for organics and a $109,359 average for all farms), the average organic farm is more profitable.
This report has been a long-time coming. The organic agriculture sector has experienced consistent growth in the past decade, and a comprehensive assessment and survey of the burgeoning sector was overdue.
Community Food Enterprise gets a boost
February 4th, 2010
By Jess Daniel
April Harrington of the Oklahoma Food Coop laughs and throws her hands in the air as she describes her organization’s phenomenal growth since its founding in November 2003.
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| Some of the speakers on the domestic Community Food Enterprise Panel. From left to right: April Harrington of the Oklahoma Food Cooperative, Amy Emberling of the Zingerman family of businesses in Ann Arbor, MI, and lead author on the CFE study, Michael Shuman of BALLE |
From humble beginnings in a church basement, the coop has grown to handle over $65,000 worth of local food products in just around six hours on a designated day every month. Its list of producers and customers continues to grow despite little investment in marketing and recruitment. Harrington, who handles the finances, is also a producer herself. Business from the coop has allowed her to expand her operations and hire on new employees.
Innovative food enterprises like the Oklahoma Food Coop were the focus of a January 28 event hosted by the Wallace Center at Winrock International and Business Alliance for Local Living Economies (BALLE). The event highlighted the results of a 3-year study published by the Wallace Center and BALLE.
Deputy Secretary Kathleen Merrigan kicked off the workshop with a recap of initiatives in the USDA that support local and regional food business development and introduced colleagues in the room from the “Know Your Farmer” team.
The event coincided with Secretary Tom Vilsack’s announcement of a $900,000 award to the Wallace Center–a NSAC member, based in Arlington, VA–to run the Healthy Urban Food Enterprise Development (HUFED) Center. According to the press release, the center will provide “training and technical assistance for food enterprises and award sub-grants to eligible entities for healthy food enterprise development.” This investment demonstrates positive reinforcement of the message presented in the morning panel: that locally-owned food enterprises present multiple benefits to both rural and urban communities including stronger local economies, more civic engagement, and better environmental stewardship.
To sign up for updates on the development of HUFED, click here.
The full press release is available below, or on USDA’s website.
Call your State Dept of Ag to learn about Specialty Crop Block Grants
February 3rd, 2010
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| In 2007, part of Washington State’s block grant went to fund an initiative led by the Organic Seed Alliance to start a producer-led organic seed cooperative in Washington State. |
Today’s Federal Register included a Notice of Funds Available (NOFA) for Specialty Crop Block Grants (SCBG). These funds go out to state Departments of Agriculture for programs that enhance the competitiveness of “specialty crops” For those not well-versed in the lingo, specialty crops include fruits and vegetables, dried fruit, tree nuts, horticulture, and nursery crops (including floriculture).
Applications are submitted by state Departments of Agriculture, but these agencies generally work in collaboration with multiple partner organizations. To learn more about how your state plans to use Block Grant funding, or to propose a project,
contact your state Department of Agriculture.
The NOFA announces $55 million dollars to be distributed in 2010. Applications will be accepted now through July 29, 2010. Projects should pertain to one of the following areas:
- Increasing child and adult nutrition knowledge and consumption of specialty crops;
- improving efficiency and reducing costs of distribution systems;
- assisting all entities in the specialty crop distribution chain in developing ‘‘Good Agricultural Practices’’, ‘‘Good Handling Practices’’, ‘‘Good Manufacturing Practices’’, and in cost-share arrangements for funding audits of such systems for small farmers, packers and processors; or
- investing in specialty crop research, including research to focus on conservation and environmental outcomes; enhancing food safety; developing new and improved seed varieties and specialty crops; pest and disease control; and development of organic and sustainable production practices.
The NOFA also gives a shout-out to the USDA’s attention to local and regional food systems; the document states that states’ plans to increase the competitiveness of specialty crop farmers “may include developing local and regional food systems and improving food access in underserved communities.”
In previous years, states have taken advantage of this opportunity to develop projects to study local food systems and strengthen local marketing for specialty crop producers. For example, in 2007, Georgia Organics in Atlanta, GA received a $20,000 of the state’s Specialty Crop Block Grant (SCBG) to launch a number of projects, including a “Buy Local” campaign and Georgia food guide.
For up-to-date information on USDA grants and programs, including requests for applications and deadlines, check out our quick-guide to farm bill programs and grants.
2011 Budget Drill Down: Sustainable Ag Research
February 3rd, 2010
This post is the fourth in a series of commentaries by NSAC staff on the President’s 2011 budget, released on February 1st. To read the overview by Executive Director Aimee Witteman click here. Look out in the following days for more budget analysis on research programs, conservation, rural programs and more.
The President’s Fiscal Year 2011 Budget Request for USDA Research, Education, and Economics (REE) is $2.9 billion, up from $2.7 billion in 2010. Within REE, the largest player is the National Institute of Food and Agriculture ($1.5 billion), followed by the Agricultural Research Service ($1.2 billion), the National Agricultural Statistics Service ($165 million), and the Economic Research Service ($87 million). The President’s research budget does the following:
- Makes a down-payment on innovation in sustainable agriculture.
The President’s budget request invests in the future of sustainable agriculture by increasing funding for the Sustainable Agriculture Research and Education (SARE) competitive grants program to a total of $30 million. In its twenty-two year history, SARE has funded cutting-edge research and widespread extension of sustainable agricultural systems that improve the profitability of small and mid-sized farms in ways that conserve energy, solve environmental problems, and promote entrepreneurial and community-based agriculture. Structured differently than other USDA research programs, SARE is farmer-driven and regionally-led.
The President’s budget request divides the $30 million between research and education activities ($15 million), a new federal-state matching grants program ($10 million), and extension ($5 million).
- Divests from organic research.
Taking a step back from last year’s budget request and the 2010 Agriculture Appropriations Bill, the President did not renew funding for the Organic Transitions Research Program (ORG), most recently called the Integrated Organic and Water Quality Program. ORG was cut along with all of the other programs under Section 406 Legislative Authority — including Water Quality, Food Safety, and Regional Pest Management Centers.
The Agency line is that these types of activities will be funded through the Agriculture and Food Research Initiative (see below), but knowing how hard it has been to get any research dollars to fund much-needed organic research, we won’t hold our breath. Congress in the 2010 Agriculture Appropriations Bill funded the program at $5 million, and we’ll be fighting for that again this year.
No mandatory funds were cut from the Organic Agriculture Research and Extension Initiative, but the budget does not include any of the program’s $25 million in annual discretionary authority either.
- Nearly doubles the funding for USDA’s largest competitive grants program.
The President’s budget request for the Agriculture and Food Research Initiative (AFRI) through the National Institute of Food and Agriculture (NIFA) is an unprecedented $428.8 million (last year it was $201.5 million and Congress funded it at $262.5 million in Fiscal Year 2010). The significant increase in funding accompanies USDA’s focus on making the program the agency’s largest competitive research grants program that will primarily fund research in five priority areas — climate change, biofuels, food safety, nutrition and childhood obesity, and food security and agricultural production. In 2010, USDA is making $800 million available through AFRI, suggesting that if the program is funded even at the requested level, that it will be drawing on future funding to fund proposals approved this year.
Overall, the proposed discretionary funding for NIFA is exactly level – no increase, no decrease. To get the proposed large increase in AFRI, the much smaller increase in sustainable agriculture, and a few other small higher education and extension increases, the budget proposes to end existing competitive grant programs for organic, integrated pest management, water quality, and food safety (the 406 programs mentioned above – a combined $45 million in proposed cuts), end the Sun Grant program ($2.3 million) and extension’s farm safety program ($4.9 million), and eliminate all congressionally-directed projects ($87.2 million). The battle will now be on to see how much of that re-arranging of the agency’s budget congressional appropriators will go along with.
For more information, check out NSAC’s FY 2011 Agriculture Appropriations Chart.
2011 Budget Drill Down: EPA on Water and Air
February 2nd, 2010
This post is the third in a series of commentaries by NSAC staff on the President’s 2011 budget, released on February 1st. To read the overview by Executive Director Aimee Witteman click here. Look out in the following days for more budget analysis on research programs, conservation, rural programs and more.
The proposed EPA budget for FY 2011 includes $17 million in new funding for a Mississippi River Basin Initiative (MRBI) to respond to non-point source pollution control, including nutrient pollution from agriculture.
This effort would happen in conjunction with the new USDA Natural Resources Conservation Service MRBI. An EPA press release noted that the Mississippi River Basin funding is in response to a report of the nationwide Nutrients Innovation Task Group and the recommendations outlined in the Gulf of Mexico Hypoxia Action Plan, both of which call for greater control of nutrient pollution from agricultural sources.
The budget request also proposes to increase funding for Chesapeake Bay restoration from $50 million to $63 million. Most of the Chesapeake Bay funding will be use to implement a comprehensive, multi-state total maximum daily load (TMDL) for the Bay which targets control of nutrient runoff from urban stormwater and agricultural fields.
The American Recovery and Reinvestment Act of 2009 included $6 billion in supplemental funds to the states for wastewater and drinking water infrastructure improvements. With this funding boost, the Administration is requesting a decrease of $100,000 in the Clean Water Act’s State Revolving Loan Funds, requesting $2 billion, and the same decrease in the State Drinking Water Loan Funds leaving $1.3 billion. The State Revolving Loan Funds can be used for nonpoint pollution projects, including those that target agriculture. EPA is developing a new approach for using the State Drinking Water Loan Fund to improve small water systems, many of which are in rural areas.
For the Clean Water Act Section 319 program, the President is requesting $200.9 million, the same level as FY2010 funding. The program funds grants to states, territories and tribes for projects to reduce polluted runoff. The budget request includes an additional $45 million for Section 106 grants which are intended to strengthen the state, interstate and tribal programs that address emerging water quality issues such as nutrients and new regulatory requirements, and support expanded water monitoring and enforcement efforts.
The budget request clearly signals President Obama’s strong support for EPA’s measures to deal with climate change, including regulation of greenhouse gasses (GHGs) under the Clean Air Act. The request includes $169 million targeted to measures to reduce GHG emissions, a slight increase over the FY2010 level. The request also includes $56 million, with $43.5 million in new funding, for EPA GHG regulation. The funds would be used by EPA to develop guidance on GHG permitting for state and local governments in anticipation of work on GHG Clean Air Act permits.
2011 Budget Drill Down: Biomass Crop Assistance Program
February 2nd, 2010
This post is the second in a series of commentaries by NSAC staff on the President’s 2011 budget, released on February 1st. To read the overview by Executive Director Aimee Witteman click here. Look out in the following days for more budget analysis on research programs, conservation, rural programs and more.
The President’s 2011 budget estimates spending in FY 2011 for the Biomass Crop Assistance Program at $479 million and $263 million for the current fiscal year. These are pretty heady figures for a program that was assigned a total of $70 million in the Congressional Budget Office estimate for the 2008 Farm Bill, and are not immediately easy to match to the $514 million allocated previously by the Administration for the program in FY 2010.
The budget request failed to distinguish funding estimates for the “collection, harvest, storage and transport” or CHST portion of the program from the heart of the program, which funds projects to jumpstart the production of new bioenergy perennial crops in environmentally sound systems. To date, only CHST payments have been made; the cropping system portion of the program is under environmental review. We hope to learn more about the Administration’s assumptions from the USDA budget office soon.
As noted in an earlier post, the payments for CHST are turning out to be a boondoogle, with hundreds of millions of dollars reportedly going for the delivery of wood and wood shavings to timber mills which use the wood for energy. The cabinetry and forest products sector is outraged with the payments, which they say are artificially raising the market price of wood for products. USDA’s Farm Service Agency issued a warning on January 13 of possible fraud based on reports requiring farmers delivering biomass materials to mills pay kickbacks.
The issue has the attention of Rep. Collin Peterson, Chair of the House Agriculture Committee, who stated yesterday that if USDA regulations did not rein in the program, the Committee would consider revisions to BCAP. As reported by Environment and Energy (E&E) News, Peterson said the program has turned into a big problem, adding “I am not very happy about what happened. It is not what I envisioned.” We applaud the Chairman for his concern and hope the White House, USDA, and Congress can get this program back on track.