I just got back from grocery shopping. I’ll soon be fixing a meal but first I want to take a moment to explore this idea of business and policy in the context of the Farm Bill. After all the products available and the prices I paid at the grocery store are directly affected by this 79 year old bill.
I am currently on the Food Team but I admit I am not intimate with every detail of the Farm Bill and doing a little research for this blog I realized why; the 2008 Farm Bill was 1,770 pages. The Farm Bill is a very complex policy document that covers many aspects of our food system not just farming. The Farm Bill is updated and re-enacted every 5 years. The first farm bill was in 1933 and started by Henry Wallace, President Roosevelt’s Secretary of Agriculture. The original idea was to help mitigate the low prices of crops during the Greet Recession. The government would take of the market the commodities when prices where to low and then resold later when prices recovered. The government was able to make money on this program and many farmers benefited. This also led to farmer instituted grain reserves providing flexibility of when they sold their crops. Today the government pays directly to the farmers the difference of what food processors pay and what farmers need to be economically viable.
The current and proposed Farm Bill covers many topics, called titles. These include:
- Title I, Commodities : Payment and loan programs for 20 farm commodities.
- Title II, Conservation : Conservation programs, wetlands protection, grasslands protection, farmland protection and incentives for farmers to improve environmental stewardship.
- Title III, Agricultural Trade and Aid : Food aid
- and meeting World Trade Organization obligations.
- Title IV, Nutrition : Food stamps, child nutrition and supplemental food.
- Title V, Farm Credit : Farm ownership loans and emergency credit.
- Title VI, Rural Development : Grants for rural businesses and small communities, expanding rural broadband access.
- Title VII, Research : Agricultural extension services, research on all areas of food production including biotechnology and organic production.
- Title VIII, Forestry: Funding for various U.S. forest service projects including community forestry.
- Title IX, Energy: Funding for bioenergy projects and research as well as federal procurement for biobased products.
- Title X, Miscellaneous : Includes crop insurance, disaster assistance, animal welfare/inspections and country of-origin labeling.
The largest part of the Farm Bill is our food assistance program (SNAP). The second highest funded title is the commodities support (see the info graphic below). This support of commodities has many hidden cost including the increased obesity rates in our country. (see info graphic provided by takepart.com)
Another thing I was interested in regarding this current Farm Bill was the expansion of Farm Insurance Programs. In an article, A Risky Proposition: Crop Insurance in the Face of Climate Change, Julia Olmstead talked about the missed opportunity to tie insurance coverage and sustainable farming practices. Most farmers are interested in their soil health and long term sustainability but often the current system is working against those goals. Tying government backed insurance to the sustainable practices a farmer as incentive for farmers to take the appropriate measures to protect soils, water, and general environment. This is currently not part of the 2012 Farm Bill. This is a missed opportunity and hopefully we can figure out other ways to create this sort of incentive.
There is also, although small, continued local food systems support and recognition of the value of small to mid-size farms in the current version of the unauthorized 2012 Farm Bill. These included programs to diversify crops, support small farmers marketing with marketing, creating infrastructure to help small and mid-size farmers reach urban centers, data collection regarding local food system, and programs for beginner farmers.
The recent news around the passing of the next Farm Bill suggest it will either be passed by the end of the year as part of the larger budget discussions or the Farm Bill will not be passed until April 2013. The 2008 Farm Bill is currently expired and has not been renewed.
References:
A Fair Farm Bill for America: A series of papers on the 2007 Farm Bill. The Institute for Agriculture and Trade Policy. Found at http://www.iatp.org/files/258_2_97623.pdf
Infographic reference: http://www.takepart.com/article/2012/06/07/farm-bill-infographic
A side by side comparison of the 2008 and the new 2012 Farm bill can be found http://www.fas.org/sgp/crs/misc/R42552.pdf
A Risky Proposition: Crop Insurance in the Face of Climate Change. Julia Olmstead. Found at http://www.iatp.org/documents/a-risky-proposition-crop-insurance-in-the-face-of-climate-change
NYT Articles: http://www.nytimes.com/aponline/2012/11/10/us/politics/ap-us-fiscal-cliff-farm-bill.html?ref=farmbillus&_r=0 & http://www.nytimes.com/reuters/2012/11/05/business/05reuters-usa-politics-farmbill.html?ref=farmbillus
Dom,
ReplyDeleteThanks for your post. I am also unfamiliar with the ins and outs of the farm bill and as a result, I really appreciate your overview. Who supports the farm bill? Who doesn't support it? It seems food stamps are coming under fire lately as part of the republican party's attack on social programs, but I see the farm bill as supporting the large commodity farms that republican's rely on so much for support. The question distills down to, is this a partisan issue? Does this have bi-partisan support?
you also mentioned that in its origination that it made sense for all the stakeholders, the government, farmers and consumers. It doesn't seem that that is true anymore. I'm interested in having more conversations on that aspect of the farm bill. Does it make sense for multiple / all stake holders? What would have to be changed so it does? And when do we start including small farms and individual's health as stakeholders in the farm bill? Especialy when the over-subsidizing of corn and sugar has taken a toll on our environment, resiliency and health.
Fantastic summary, Dom...and ties right in with what I wrote about this week. Ah, the synergy. Bec is right about the partisan nature of the farm bill- coming from the anti -hunger community I have heard that you have the bleeding heart liberals in the north vying with the big commodity farming states in the north and Midwest duking it out between nutrition programs and commodity support. Obama caught a lot of flack for creating a "Food stamp Nation" while the farm bill was being debated. However, this is definitely a bill that everyone wants passed, so compromises will likely have to be made. Not that there's been much evidence of that, since it has dragged on months longer than it was supposed to. I am curious about which specialty crops get subsidies, and at what scale you have to be before you see those benefits. Something to research!
ReplyDeleteDM
Did the whole food team have a mindmeld? I also wrote about the Farm Bill! You did a much more complete job of explaining the origins of the bill and I appreciate having even more context for why we are where we are today. I know the bill is political but I am still trying to figure out exactly where each side stands as well. The food stamps piece is an interesting one and it seems that in our economic readings that it would be harsh to cut government spending right now if we are trying to stimulate the economy. I have never really thought about food assistance but now that I am a recipient, my ears are turned up quite a bit.
ReplyDeleteMaybe we're going to have to have a sub-committee on the Food group to further research the Farm Bill and lobby for good choices for small to mid-sized farms :).
(My post: http://sustainablepickle.wordpress.com/2012/11/12/public-policy-pickle-a-fiscal-cliff-a-farm-bill-and-triple-bottom-line-collaboration/)
Bec, Dorothy, & Anna, I think my initial dive into understanding the Farm Bill has left me with few answers and many many more unanswered questions! I look forward to many lively conversation in our near future about food policy!
ReplyDeleteYes, we had a mindmeld. That is great. Put us all together and we've got a real comprehensive report on the Farm Bill. Maybe we should make sure it is one of our leverage points. I think we do have policy in there, we could probably explain it a little better now.
ReplyDeleteNice one Dom.