CONTENT EXCERPTED FROM:
http://farmpolicy.com/2011/10/25/farm-bill-ag-economy-and-trade-5/
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Farm Bill: Additional Proposals
A news release yesterday from Rep. Chellie Pingree (R-Maine) indicated that, “[Rep. Pingree] said today she will introduce a bill later this week that includes provisions that would significantly change the nation’s food policy. The Local Farm, Food, and Jobs Act would expand opportunities for local and regional farmers and make it easier for consumers to have access to healthy foods.
“‘This is about healthy local food and a healthy local economy. When consumers can buy affordable food grown locally, everyone wins,’ Pingree said. ‘It creates jobs on local farms and bolsters economic growth in rural communities.’”
Yesterday’s update added that, “Pingree’s bill is a package of reforms and new programs that will encourage production of local food–not only by helping local farmers and ranchers become more profitable and productive, but also by helping consumers buy locally through improved distribution systems.
“Pingree says farmers markets and other local food outlets are growing rapidly and creating jobs all over the country.”
A news release yesterday posted at the Land Stewardsip Project Online stated that, “Legislation that will help the next generation of farmers and ranchers create jobs and other economic activity in rural communities has been introduced in the U.S. House and is expected to be introduced in the Senate soon. The Beginning Farmer and Rancher Opportunity Act of 2011 is authored by Rep. Tim Walz (D-MN) and Rep. Jeff Fortenberry (R-NE) in the House, and Senator Tom Harkin (D-IA) in the Senate.
“This legislation is a comprehensive policy approach to helping the next generation of farmers and ranchers take advantage of growing opportunities in agriculture. The legislation includes support for beginning farmer and rancher training programs, beginning farmer lending and savings provisions and conservation incentives for new farmers and ranchers.”
The release added that, “A central component of the bill is continued support for the Beginning Farmer and Rancher Development Program (BFRDP), which supports community-based organizations that offer beginning farmer training programs. Since it was launched in 2009, demand for BFRDP has far outstripped resources available. In 2010 alone, 40 projects got a total of $18 million in BFRDP grants, while 117 applications were submitted that year, with a total funding request of approximately $65 million. In total, during the past three years the program has provided $54 million in grants to groups in 48 states.”
The Beginning Farmer and Rancher Opportunity Act of 2011 (H.R. 3236) is available online, while a summary of the legislation is available here.
Meanwhile, a large number of organizations, including the Rural Coalition, National Family Farm Coalition, and National Sustainable Agriculture Coalition sent a letter yesterday to leaders of the House and Senate Agriculture Committees which in part, urged support for, “Beginning Farmers and Ranchers & Socially Disadvantaged Farmers and Ranchers: Renew and expand support for the Beginning Farmer and Rancher Development Program and the Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers Program by increasing mandatory funding from $75 million (this farm bill cycle) to $125 million for each of the two programs over the next 5 year. Also, continue important conservation programs, such as the Conservation Reserve Program Transition Incentives Program, while increasing funding set-asides that target beginning and socially disadvantaged farmers within the Environmental Quality Incentives Program and the Conservation Stewardship Program. Fund the highly popular Value-Added Producer Grants Program at $150 million over 5 years, with the current priority and set- asides for projects that benefitting beginning and socially disadvantaged farmers and ranchers and arevision to the definition of qualifying projects. Continue the commodity payment waiver provision for socially-disadvantaged producers who farm less than 10 acres, and extend that waiver to beginning farmers. Reauthorize the current premium waiver for limited resource farmers in the Noninsured Crop Disaster Assistance Program (NAP), extend it to crop insurance, and expand it to include beginning and socially disadvantaged farmers.”
In other news, a brief analysis yesterday from G. A. (Art) Barnaby, Jr. and Troy Dumler of Kansas State University (“Ignoring Underwriting Increases Costs for Commodity Programs”) stated in part that, “If public policy is going to shift from Direct Payments to ‘risk management’ then effectively Congress is creating a derivative of options and insurance. Except for Direct Payments, all of the proposed Farm Bill safety net plans that provide risk management are effectively insurance/options with 100% of the premium paid by government, but the underwriting rules; or lack of still apply. Lack of sound underwriting will allow farmers to adverse select on the program and cost will exceed CBO estimates.
“The closer the yield or revenue is measured to the farm gate, the greater the need for effective underwriting rules. This is why many ag economists expect little moral hazard and adverse selection under ARRM because the yield is measured at the district yield level and prices are effectively national prices. Farm level management has little control over either of those values.”
Also yesterday, a news release from USDA’s Risk Management Agency stated that, “The U.S. Department of Agriculture’s (USDA) Risk Management Agency announced today a new pilot program of insurance for pistachios beginning with the 2012 crop year. The Pistachio Crop Insurance Program will make crop insurance available to growers in 21 counties in California, two counties in Arizona, and one in New Mexico. The program was approved by the Federal Crop Insurance Corporation (FCIC) Board of Directors on September 22, 2011. RMA operates and manages the FCIC.”
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http://farmpolicy.com/2011/10/25/farm-bill-ag-economy-and-trade-5/
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