Currently browsing posts about: Farm-bill

Section 7606 of the 2014 Farm Bill says that notwithstanding the Controlled Substances Act, The Safe and Drug-Free Schools and Communities Act, and other laws that govern the cultivation of marijuana, it is now OK for state agriculture departments and universities to grow “industrial” hemp for research purposes.

Industrial hemp, the Farm Bill says, means “the plant Cannabis sativa L…with a delta-9 tetrahydrocannabinol [THC] concentration of not more than 0.3 percent on a dry weight basis.”

To put this in context: the average THC potency of domestically grown recreational hemp  (a.k.a. marijuana) is about 6 percent, but can go much higher.

With so little THC in industrial hemp, why would anyone want to bother with it?   Textiles of course, but also medical purposes and dietary supplements.

Even a little THC, apparently, goes a long way.

The New York Times reports that companies are growing industrial hemp to make hemp oil as a treatment for epilepsy.

On the legalities of hemp oil, The Times explains that the

Drug Enforcement Administration is offering few clues, insisting in public statements that while it is willing to allow marijuana sales in states that have legalized the drug, it might step in if growers try to sell beyond state borders…Any chemical that comes from the plant is still a controlled substance…When we get into hemp, it gets a little squishy, but it still is illegal.

Squishy?  Growing and using industrial or recreational hemp is illegal in America except in states that have made hemp legal or quasi-legal.

For example, New York State recently passed a hemp bill that would set up pilot programs for the production of industrial hemp.

At least one company is growing hemp in Colorado for use in dietary supplements.   At a trade show last year, it displayed US Hemp Oil promoted for its content of CBD—cannabidiol, a non-narcotic fraction of the hemp plant.

The company insists that CBD is a legal ingredient of dietary supplements.

Hemp, it argues, is a vegetable:

The pure oil is considered GRAS [generally recognized as safe]. Under the United States Uniform Tariff Code they tax and code hemp as a vegetable. I don’t know anything that’s a vegetable that isn’t GRAS. When we import it, it is always considered a vegetable, so that’s what we use in our declaratory actions…in March of last year Canadian company Abattis announced plans to bring a CBD-infused kombucha drink to market.

However and whether CBD works for medical purposes, everyone expects industrial hemp to be a huge cash crop for its textile and health food uses.

This is especially a boon for Kentucky, and it’s no coincidence that Kentucky Republican Senator Mitch McConnell spearheaded the hemp provision through the Farm Bill.

The boon-for-Kentucky Website provides a long list of potential applications for industrial hemp, ranging from textiles to cosmetics to auto parts.

Proponents of CBD provide an even longer list of diseases for which industrial hemp’s CBD is a treatment option.  There isn’t much research on the physiological effects of CBD.  This makes industrial hemp perfect as a dietary supplements.  It might do something.  That’s all you need for supplement marketing.

The legal battles will be fun to watch.  Stay tuned.

In the meantime, there is hemp cereal—organic of course.  Enjoy!

I was surprised to read in yesterday’s New York Times that the farm bill was full of goodies for fruits, vegetables, and organics.

While traditional commodities subsidies were cut by more than 30 percent to $23 billion over 10 years, funding for fruits and vegetables and organic programs increased by more than 50 percent over the same period, to about $3 billion.

I took a quick look at the cost accounting.  Giving these program listings the benefit of the doubt:

Even stretching the items like this, it’s $2 billion over ten years, not 3.   $2 billion is good; $3 would be better.

What am I missing here?

This morning, Politico Pro Agriculture summarized what states are doing to promote local food production:

Arizona: HB 2233 would create a task force to develop recommendations for how the state can improve the quality and nutrition of food sold in state facilities, including suggestions for promoting locally grown food: http://1.usa.gov/1qniAzl

Hawaii: HB 1184 seeks to set a state-wide food sustainability standard to be achieved by 2025 that would increase the availability of locally grown and produced foods to reduce the state’s reliance on imports. The standard would be set at a level double the cash farm receipts that are produced in 2015: http://1.usa.gov/1oDB9LL

HR 82 and its senate companion SCR 6 calls on the state departments of agriculture and education to develop a farm-to-school program that would provide locally grown produce to public school salad bars: http://1.usa.gov/1h4Yq6v

SB 524 similarly seeks to create an agricultural development and food security program under an existing economic development statute that would seek to increase demand for and access to locally grow foods through promotional campaigns and improving infrastructure, among other things: http://1.usa.gov/1fiiYWP

Iowa: H2426 seeks to promote small farmers through a new financial assistance program, a marketing program, a revolving grant program and a property tax exemption for farmers who sell their products to state facilities or schools. The measure also calls for state facilities, when cost effective, to purchase from local farmers: http://bit.ly/1hYHJMg

Kansas: SB 380 aims to create a local food and farm task force to develop funding and policy recommendations for supporting and expanding local food production. The task force would be required to issue a report to the legislature by the beginning of the 2016 legislative session: http://bit.ly/1fP9Lv9

New Jersey: SR 44 calls on state and local government entities to purchase locally made food and products: http://bit.ly/1dG8XX4

Michigan: HB 4487 would amend an economic development statute to include the creation and funding of programs to promote local agriculture: http://1.usa.gov/1oDBkH5

Mississippi: HB 1556 would provide a state income tax credit to grocers that amounts to 25 percent of the cost of purchasing locally grown and produced products starting in 2014: http://bit.ly/OaTaWq

Missouri: HB 2088 would create a “Farm-to-School Program” within the department of agriculture to help facilitate the use of locally grown produce in school meal programs through a website and database that would link farmers and schools. The bill, which was introduced March 5, sets up a task force that is charged with developing recommendations for the program: http://on.mo.gov/1fij1SA

New Jersey: SR 44 calls on state and local government entities to purchase locally made food and products: http://bit.ly/1dG8XX4

Rhode Island: H7494 would create a task force for developing recommendations on how to improve the nutrition of food sold at state facilities, including promoting locally grown products: http://bit.ly/1fwAA0W

Lest we forget, the Center for Responsive Politics produced these statistics on farm bill lobbying:

• 325. Number of companies and organizations registered as lobbyists in 2013 to work on the Senate’s farm bill through the end of October 2013 — the fifth-most of any legislation
• 111.5 million.  Amount “agribusiness” spent on lobbying in the same period, more than even the defense industry and labor unions.
• 93 million.  Amount companies and individuals in agriculture made about in campaign donations during the 2012 presidential campaign.

If we want the next farm bill to promote fruits and vegetables (a.k.a. specialty crops), we need to start working on it right now.

Jerry Hagstrom, who writes the daily Hagstrom report on agriculture matters, explains why the farm bill passed.   After 3 or 4 years of fuss, practically everyone thought it was the best they could do:

Critics on the right and the left say that such an outpouring of endorsements shows that the farm bill is filled with government spending, but it also shows the importance of the farm bill—and the activities of the Agriculture Department—in every corner of the country. [The farm bill] provides purchasing power and food for low-income people in cities and it allows for the inspection of meat, poultry, and eggs. It also pays for financing electricity, telephones, and the Internet in rural America.

The bottom line: it could have been a lot worse.

The New York Times scores the winners and losers.  The big winner?  The insurance industry.

Unlike the food stamp program, the federally subsidized crop insurance program was not cut. The program, which is administered by 18 companies that are paid $1.4 billion annually by the government to sell policies to farmers, pays 62 percent of farmers’ premiums.

Enthusiasm for the bill depends on what it gives to whom.

USDA Secretary Tom Vilsack says, grudgingly:

Building on the historic economic gains in rural America over the past 5 years, this bill will accomplish those goals while achieving meaningful reform and billions of dollars in savings for the taxpayer. While no legislation is perfect, this bill is a strong investment in American agriculture and supports the continued global leadership of our farmers and ranchers.

Former USDA Secretary Dan Glickman, now with the Bipartisan Policy Center, looks at the bright side:

While this is not a perfect bill, its passage was critical for our nation’s agriculture infrastructure. I’m glad to see the bill will allow low-income Americans to double their SNAP benefits at farmers markets, which will help tens of thousands of people eat more nutritious foods. However, I believe there is still a fundamental disconnect between the nation’s farm policies and critical issues of public health and nutrition.

Wholesome Wave is pleased with the bill’s support (comparatively small as it is) for fruits and vegetables:

While we are reluctant to support this legislation because of the disheartening cuts to SNAP, the bill does include funding for many critical programs that will enhance access to affordable, local food and drive revenue to local and regional farmers. Specifically, there is mandatory funding for nutrition incentives at $20 million per year, for five years, as well as increased funding for the Farmers Market and Local Food Promotion Program, Community Food Projects, Specialty Crop Block Grants, the Senior Farmers Market Nutrition Program, Beginning Farmers and the Healthy Food Financing Initiative.

The Organic Farming Research Foundation calls the bill “a victory for organic farming:”

The Farm Bill restores long overdue support for organic agriculture including significant funding increases for the Organic Extension and Research Initiative (OREI), the National Organic Certification Cost Share Program (NOCCSP), the National Organic Program (NOP) and the Organic Data Initiative (ODI). Despite significant shortcomings in the commodity, conservation and crop insurance titles of the proposal, the Organic Farming Research Foundation (OFRF) is celebrating the victories for organic agriculture found in the bill and urging the president to sign it.

The Fair Food Network’s Oran Hesterman says:

While no Farm Bill is perfect, this bill continues support for critical programs and advances innovations that will support small and mid-scale farmers and help more low-income families access healthy and affordable foods in their communities…Specifically, the Farm Bill includes $100 million to support the Food Insecurity Nutrition Incentive Program, a new national healthy produce program modeled after successful efforts such as Fair Food Network’s Double Up Food Bucks.

But, New York City Coalition Against Hunger Executive Director Joel Berg says:

I am devastated, but unfortunately not surprised, by the Senate’s passage of a Farm Bill cutting SNAP by nearly $9 billion, on top of $11 billion in cuts that took place last November 1^st. Our political system is so broken it has morphed into spineless versus heartless, and low-income Americans are, once again, those who will suffer most…It’s an orgy of corporate welfare and subsidies for the wealthy paid for by cuts to programs that help the needy put food on the table. It is Robin Hood in reverse.

I’ll end with Senator John McCain (Rep-AZ), whose analysis of the specifics is worth a look:

Mr. President, how are we supposed to restore the American people’s confidence with this monstrosity? Just a few weeks ago we crammed down their throats a $1.1 trillion Omnibus Appropriations Bill loaded with wasteful spending. Tomorrow we’ll wash the Omnibus down with another trillion dollars. The only policy that gets bipartisan traction in Congress is Washington’s desire to hand out taxpayer money like its [sic] candy.

Will the President sign this bill?  He says he will, on Friday.

Thanks to the Hagstrom Report for sending along analyses of the dairy programs in the farm bill.

I’m not a dairy farmer and I’ve never had to work with these programs, which is a good thing because I find them impenetrable.  

For one thing, support for dairy farmers—and protection against disastrous cost and price fluctuations—is accomplished through several extraordinarily complicated programs that survive or are newly enacted in this farm bill.  

• The permanent Dairy Price Support Program from the 1949 farm bill.
• The Dairy Forward Pricing Program
• The Dairy Indemnity Program
• Export market development in the National Dairy Promotion and Research Program
• The Margin Protection Program for Dairy Producers (MPP)
• The Dairy Product Donation Program (DPDP)
• Federal Milk Marketing Order for California

Why impenetrable?  Try this explanation (from the first document listed below) of the new Margin Protection Program:

A voluntary program that pays participating farmers an indemnity when a national benchmark for milk income over feed costs (the actual dairy production margin or ADPM) falls below an insured level that can vary over a $4 per cwt range.

That document explains the two new programs, MPP and DPDP, in great detail, with charts and formulas.  For them, I have to take the authors’ conclusions on faith:

The two new programs (MPP and DPDP) offer a total revamping of the safety nets that have been in place for the dairy sector going back to the middle of the 20th Century…Whether the programs proposed here will prove to be the answer farmers seek is something that will be debated and estimated, but we won’t really know unless and until they are tried.

Dairy farmer readers:  Will these new programs make your lives easier?  More secure?  Bring you more income?

Here are the analyses:

• Program on Dairy Markets and Policy — Information Letter: The Dairy Subtitle of the Agricultural Act of 2014 by Marin Bozic (U. Minnesota), John Newton (U. Illinois), Andrew M. Novaković (Cornell), Mark W. Stephenson (U. Wisconsin), and Cameron S. Traen (Ohio State).
• (Audio) Just Waiting for a Signature: Discussion of the New Farm Bill (conversation with Stephenson, Andrew Novaković, and John Newton).
• Working Paper: Price Discovery, Volatility Spillovers and Adequacy of Speculation in the U.S. Dairy Markets (by Marin Bozic and T. Randall Fortenbery of Washington State University).

I’ve been hearing from readers challenging my disgusted comments about the politics of the farm bill.

The bill is so awful that the Washington Post says it deserves a veto:

Tipping the financial scales at $956 billion over 10 years, or just over $1 billion per page, the hideously complex bill is supposedly a compromise that reforms crop subsidy programs…what the bill takes from the ag lobby with one hand, it largely gives back with the other…the bill cuts $8.5 billion over 10 years from the Supplemental Nutrition Assistance Program (SNAP) for the poor…attached to so much corporate welfare, it’s hard to swallow, especially when that corporate welfare isn’t rigorously means-tested.

The New York Times doesn’t go that far.  It supports the bill, but grudgingly: “The farm bill could have been worse:”

On balance, the bill is clearly worthy of support, particularly because it will prevent austerity fanatics in future Congresses from gutting food stamps for the next five years….But endorsing the bill also means acknowledging the low expectations for real progress in Washington…As the Center on Budget and Policy Priorities argues, rejecting the farm bill means rolling the dice that the next Congress will do a better job. In today’s environment, that’s a tough bet.

Why is the farm bill politically corrupt?

• It is indeed “hideously complex,” so much so that nobody can possibly make intelligent decisions about very much of it.
• It is so difficult to read (because it refers to previously legislation) that all kinds of things can get into it without being noticed or discussed.
• It is mired in “pork,” things put into it by members of agriculture committees to please particular groups of constituents or lobbyists.
• It is not about what’s best for the American people, farmers, or the poor; it is about what’s best for getting legislators elected.
• It represents a substantial transfer of taxpayer dollars to the wealthiest “farmers” (i.e., agribusiness) at the expense of the poor and, therefore, legislates further income inequity.

I’m with the Washington Post on this one.  If the Senate passes it and the president signs it, it’s only because they’ve given up on trying to govern the country from some rational perspective.

Brad Plumer, the WonkBlogger at the Washington Post did some homework on the farm bill based on cost estimates from the Congressional Budget Office.

The grand total: $956.4 billion over 10 years.

Whether the total cuts (“savings”) from the previous bill amount to $16 billion (the CBO estimate) or $23 billion (the congressional estimate) depends on how they do the calculations, but all estimates agree that the big cuts over ten years come from three areas:

• Farm programs: -$18.4 billion
• Conservation: -$6.1 billion
• SNAP: -$8 billion

ProPolitico Morning Agriculture points out that President Obama’s speech last night did not mention the farm bill.  Really, it’s too awful to talk about in public.

It’s too soon for me to say much about the farm bill other than to express disgust for the entire process.

The House and Senate still have to vote on it, which leaves plenty more opportunity for last-minute amendments, the addition of even more pork, and even more welfare for the rich at the expense of the poor.

In the meantime, we have the

• Agricultural Act of 2014 — Conference Report—all 949 pages of it
• Managers’ Statements on Title I through Title XII
• Press release

What can I say?  The farm bill is a mess—the worst example of the worst of food politics.

Every clause in those 949 pages exists as the result of special-interest lobbying.  Guess what: some special-interest groups have more money and power than others.

The result: an unattractive compromise.

If the bill is ever to pass, everyone has to compromise, but some groups have to compromise more than others.

How else to explain the Center for Budget and Policy Priorities’ statement that the SNAP cuts represent a reasonable compromise?

To be sure, the conference agreement does include $8.6 billion in SNAP cuts over the next decade. Yet it stands in sharp contrast to the nearly $40 billion in SNAP cuts in the House-passed bill of September, which contained an array of draconian provisions and would have thrown 3.8 million people off SNAP in 2014, according to the Congressional Budget Office (CBO). The conference agreement includes none of the draconian House provisions — and it removes virtually no low-income households from SNAP.

I am indebted to ProPoliticoAg for listing the winners: groups that want to retain Country-of-Origin Labeling (COOL), the dairy manufacturers, organic producers (!), the U.S. catfish industry (USDA will inspect catfish, not FDA), and animal welfare groups (states can insist on standards),   The soybean and rice industries are also happy with the bill, as are groups that want more flexibility in food aid.

ProPoliticoAg’s losers:  meat packers and processors who wanted to get rid of COOL, dairy farmers who preferred a different program, the poultry industry (which will have to abide by state cage-size requirements), anti-hunger advocates (the SNAP cuts).

ProPoliticoAg also read the fine print (as I promise to do once the bill passes):

• $20 million per year for emergency relief to producers of livestock, honey bees and farm raised fish (p. 131-132)
• A USDA report on the federal standard for the identity of honey (p. 802)
• A citrus disease subcommittee to advise on citrus research (p. 568-569)
• A requirement for USDA to recognize feral swine risks (p. 890)
• $2.25 million per year through 2019 for wool research and promotion (p. 928)
• A go-ahead to create a Christmas tree promotion board and 15-cent tax on fresh-cut trees (p. 805).

In the strange way the U.S. government works, Congress has produced the “Consolidated Appropriations Act of 2014,” which authorizes payments for government services, including those related to agriculture.

This is not the farm bill.  It’s what Congress decides taxpayers will pay for in the farm bill as well as bills that cover other programs run by USDA.

The House summary of agriculture appropriations is a lot easier to read than the bill itself, although it contains its share of double speak.  Try this:

WIC – This program provides supplemental nutritional foods needed by pregnant and nursing mothers, babies and young children. The bill provides full funding for WIC at $6.7 billion – $153 million below the fiscal year 2013 enacted level…This level will ensure all eligible participants will be served.

Can someone please explain to me how a cut of $153 million will ensure service to everyone who is eligible?  WIC is not an entitlement; eligible people cannot be served once the money runs out.

The bill does provide full spending—$82.2 billion—for SNAP, but only because it has to.  SNAP is an entitlement and spending for it is mandatory.  Unless, of course, Congress ever passes the farm bill, which currently contains a $9 billion proposed cut.

And here’s more double speak.  “The legislation includes several provisions to reduce spending and increase oversight of taxpayer dollars.”  How?  By authorizing spending for:

• Oversight and monitoring requirements for the WIC program, including a directive for the Secretary of Agriculture to increase oversight of vendors to help rein in food costs;
• A provision requiring USDA to submit a plan for reducing high error rates and improper payments in the National School Lunch and School Breakfast Programs;
• Requirements for the Secretary of Agriculture to help weed out and eliminate waste, fraud, and abuse in the SNAP program – including a directive to ban fraudulent vendors, and a prohibition on advertisements or outreach with foreign governments.

And why does the FDA’s budget still get decided by committees dealing with agricultural appropriations?

The FDA is a public health agency in the Department of Health and Human Services, which is funded by entirely different committees which you might think understand its mission a lot better than committees fussing about legislation that

restricts the Grain Inspection, Packers and Stockyards Administration (GIPSA) from implementing certain regulations that would allow harmful government interference in the private market for the livestock and poultry industry.

I can hardly wait to see what the farm bill will look like.