Currently browsing posts about: Agriculture

The USDA’s now-crippled Economic Research Service has published some reports on farm income.

This is Big Ag, of course.  As the Heritage Foundation enjoys pointing out:

Another reason why Big Ag is doing so well is the amount of money poured into it by the Trump administration.  Recall this Wall Street Journal chart from a previous post.

Oh for an agricultural policy that supports growing food for people, not feed for animals or fuel for cars.

Biden administration: get busy!

FAO has this eye-catching new teaser for its new report on water and agriculture.  Check out the teaser first.  Its graphics move (the blades on the wind turbinesshow below turn, for example)

Its main point:

Everyone needs to pay attention to water use, and the teaser and the report state the policy recommendations.

I’m trying to make sense of the new $900 billion stimulus bill signed by President Trump a week or so ago.  This is not easy to do; it’s 5500 pages of government-speak.

• The entire bill can be accessed here
• Key provisions are here
• Congressional (non-binding) directives are here

The bill has $26 billion for food and nutrition, of which half goes to Big Ag (sigh) and the other half to food assistance (good, but not enough).

Why the sigh for farm aid?  Here’s what the accounting looks like:

Big Agriculture: $13 billion on top of what else it got in 2020

• $32 billion from the initial CARES Act
• $4 billion as compensation for the trade war with China
• $16 billion from the normal Farm Bill subsidies
• $13 billion from the new stimulus package ($1.5 billion is for buying food products, including seafood)

Small Ag:  $225 million (not billion) for growers of specialty crops like fruits, nuts and vegetables.

SNAP: a 15% expansion through June 2021.  This will mean a lot to recipients, but it’s still not enough.

SNAP Fruit and vegetable incentives: $75 million (not billion) for the Gus Schumacher Nutrition Incentive Program,

Pandemic-EBT: this authorizes extra benefits for families who have kids normally getting subsidized school meals (but this has been delayed)

Food banks: $400 million (not billion) for the Emergency Food Assistance Program, $400 million (not billion) for milk,

Disadvantaged, veteran, and beginning farmers: $75 million (not billion)

International Food Assistance: $1.74 billion for Food for Peace grants and $230 million for the McGovern-Dole International Food for Education and Child Nutrition program (note that this is the most the US has ever spent for these programs.

Pet foods: By congressional directive:

FDA is directed to provide an update on the investigation it is undertaking regarding canine dilated cardiomyopathy (DCM) and the manner in which it has released information to the public. The update shall include: the case definition FDA uses to include or exclude cases and the scientific work ongoing at the agency and with collaborating partners for identifying a causation of DCM; how FDA distinguishes cases of DCM due to genetic predisposition in certain breeds; how the agency plans to work with pet food companies and the veterinary cardiology community during the investigation; and the timing and nature of any future public reporting.

PFAS (Per- and polyfluoroalkyl) chemicals in food packaging: “directs FDA to review any new scientific information pertaining to PF AS chemicals and determine whether food packaging continues to meet the safety standards of a reasonable certainty of no harm under intended conditions of use.”

Restaurants: they get whatever they can out of the $284 billion Paycheck Protection Program.  The trade association for independent restaurants points out that this is nowhere near enough.  Even the Wall Street Journal says restaurants need help; their situation is bleak.

Business lunches: the full cost can now be deducted as a business expense, but nobody expects this to help restaurants much.

There is undoubtedly more, but that’s enough for now.

Politico has done a great job of covering these provisions, but is behind a paywall.  The Counter also has an especially good summary..

I haven’t written anything about the “revolving door” for a while, but it is now time.  This term refers to government officials who leave to work for industry, and vice versa.

Recent example #1: The USDA has just announced that its Chief Economist, Robert Johansson, will be leaving USDA to become Associate Director of Economics and Policy Analysis for the American Sugar Alliance.

Recent example #2: The president-elect’s newly named secretary of the USDA is Tom Vilsack who was was USDA Secretary during the Obama administration.  In 2017, he became executive vice president of Dairy Management, Inc.,and president and CEO of the U.S. Dairy Export Council, a Dairy Management subsidiary, at a salary close to $1 million.    As the Milwaukee Journal Sentinal explains, this organization represents Big Dairy:

As the number of dairy farms nationwide has plummeted by nearly 20,000 over the past decade, there’s one corner of the industry doing just fine:  The top executives at Dairy Management Inc., who are paid from farmers’ milk checks. The Illinois-based nonprofit is charged with promoting milk, cheese and other products — spending nearly $160 million a year collected through federally-mandated payments from dairy farmers.  In 2017, a year in which 503 dairy farms closed in Wisconsin and 1,600 were shuttered nationwide, IRS records show 10 executives at the organization were paid more than $8 million — an average of more than $800,000 each.

The revolving door brings government experts into food trade associations where they can help food companies meet—but also avoid—regulations.

It brings food company executives into government where they can make sure that no government agency does anything inconvenient for the company’s bottom line.

Examples, alas, are legion.  They are signs of government as usual, at a time when agricultural policy needs a huge rethinking.

I’m trying to figure out how much money—over and above what’s appropriated through the farm bill—is going to Big Ag.  I wish someone would add it up for me.

Here’s what I know so far:

The USDA has given producers more than $10 billion in Coronavirus assistance.  This includes nearly $1 billion to Iowa farmers.  Lesser amounts went to producers in Nebraska, California, Texas, Minnesota and Wisconsin.  Overall, about half went to livestock producers.

According to the Environmental Working Group,

The largest and wealthiest U.S. farm businesses received the biggest share of almost $33 billion in payments from two subsidy programs – one created by the Trump administration to respond to the president’s trade war and the other by Congress in response to the coronavirus pandemic.  The Market Facilitation Program, or MFP, was intended to offset the perceived damage done by the administration’s trade war, which reduced many farmers’ access to lucrative Chinese markets. Payments for the 2018 and 2019 crop years were just over $23 billion – more than $8.5 billion for 2018 and $14.5 billion for 2019.

Chuck Abbott of the Food and Environment Reporting Network (FERN) says:

With its new offer of $14 billion in coronavirus relief, the Trump administration could spend $50 billion — quadruple the cost of the auto industry bailout — in less than three years to buffer the impact of trade war and pandemic on agriculture. Farm groups welcomed the second round of coronavirus assistance while critics said it was “old-fashioned vote-buying” ahead of the Nov. 3 presidential election.

And the largesse does not stop.  The House has proposed a $120 billion rescue fund that includes relief programs for livestock and dairy farmers and food processors, such as “$1.25 billion to assist contract growers of poultry and livestock growers who face revenue losses due to reduced placements related to COVID-19”

This money goes to Big Ag—Soybeans, Corn, Meat—mainly in mid-West Trump country.

What about food for people?  Well, we have the $4 billion Farmers to Families food boxes, although how much of that goes to farmers as opposed to distributors is unknown.

Tom Philpott.  Perilous Bounty: The Looming Collapse of American Farming and How We Can Prevent It.  Bloomsbury, 2020.  

Here’s my blurb:

In Perilous Bounty, Tom Philpott probes what’s wrong with Big Agriculture—examining how it depletes California’s water, poisons water in the Midwest, and ruins soil resources—and proposes ways to reconfigure the food system to better promote health and sustain the environment. This must-read book is deeply researched, compellingly written, and thoroughly inspiring.

And here’s a quick excerpt:

We have reached the limits of “market-as-movement” to transform the food system.  In an economy marked by severe inequality, wage stagnation, and persistently high levels of poverty, the market approach excludes the population that can’t afford to pay the higher prices of organic, local food or devote time to cooking from scratch.  It threatens to create an ecologically robust niche for the prosperous within a dominant food system that quietly lurches on, wrecking the environment and making people sick.  Well-off consumers should vote with their forks three times a day, but the pace of positive change they create has been no match for Big Food’s massive inertia and the rapid advance of climate change.  But something important has emerged over the same period: the stirrings of a new form of movement politics…  [p. 255]

RC Rybnikar sends these photos (thanks!) of examples from USDA’s Farmers to Families program.  The label.

What’s inside:

Looks good to me.

And now the USDA is expanding its list of commodities in the Coronavirus Food Assistance Program (CFAP).

Additional details:

• Notice of Funding Availability (NOFA).  
• Final Rule Correction
• www.farmers.gov/cfap.

Here’s what’s been added:

alfalfa sprouts, anise, arugula, basil, bean sprouts, beets, blackberries, Brussels sprouts, celeriac (celery root), chives, cilantro, coconuts, collard greens, dandelion greens, greens (others not listed separately), guava, kale greens, lettuce – including Boston, green leaf, Lolla Rossa, oak leaf green, oak leaf red and red leaf – marjoram, mint, mustard, okra, oregano, parsnips, passion fruit, peas (green), pineapple, pistachios, radicchio, rosemary, sage, savory, sorrel, fresh sugarcane, Swiss chard, thyme and turnip top greens.

Here’s what’s been expanded: apples, blueberries, garlic, potatoes, raspberries, tangerines and taro (Why?  Because USDA found these commodities had a 5 percent or greater price decline between mid-January and mid-April as a result of the COVID-19 pandemic).

Let’s hope this helps small- and medium-size producers of these foods, and the foods get to people who need them.

CAST [Council for Agricultural Science and Technology: Economic Impacts of COVID-19 on Food and Agricultural Markets:  This is a collection of 16 articles by various experts on the effects of Covid-19 on food, agriculture, and forestry.  The report is here.

IATP (Institute for Agriculture and Trade Policy): Milking the Planet: How Big Dairy is Heating Up the Planet and Hollowing Rural Communities: The report is here.

FAIRR (a global network of investors addressing issues in meat production): An Industry Infected: Animal Agriculture in a post-COVID world.  The report is here.

As the COVID-19 pandemic unfolds globally, we are presented with a real-time case study into the vulnerability of animal agriculture systems to external shocks. It has reminded us of the vulnerability of human health to disease risks stemming from both wild and domestic animals, and has served as a warning of the role modern animal production systems can play in increasing zoonotic disease risk.

The British Meat Processors Association is not happy with this one, it seems.