Transcript Cal-Med Consortium Workshop II Domestic Policies and

Cal-Med Consortium Workshop II
December 7-8 Washington D.C.
Federal Farm Policy and Domestic Policy
Support for Mediterranean Products
Jay E. Noel
Director, California Institute for the Study of Specialty Crops
California Polytechnic State University
Production Location
Acreage and Value of Production
2005
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Federal Farm Policy Support of U.S.
Mediterranean Crops
Assistance for Losses
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Crop Insurance: 44 crops covered; Crop
insurance subsidy $424 million
Market Loss Payments: Ad Hoc payments.
Examples include Apples $269 million in 1999
and 2000; Pecans $8.5 million 2005;
cumulative total of ~$20 billion since 1988
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Marketing
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Marketing Orders and Agreements
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Generic Promotion, Research and
Information Programs (Check-off Programs)
A number of studies have shown positive
cost/benefit returns to marketing order and checkoff programs- Examples include Williams (benefitcost ranges of 12 to 27 for differing crop and
marketing order activities); Carman (Avocado
producers gained an additional $70.4 million in
revenues for $7.86 promotional spending)
Williams, Gary. “FAIR Reviews and Economic Returns Analyses as Strategic Marketing/Management Tools”, 2004
Marketing Order Management Conference, San Antonio, Texas, September 29, 2004.
Carman, Hoy F. “Offsetting Price Impacts from Imports with Generic Advertising and Promotion Programs: The Hass
Avocado Promotion and Research Order”, Review of Agricultural Economics, Vol. 28, No. 4, 2006. see also Carman,
Hoy F. and R. Kim Craft. “An Economic Evaluation of California Avocado Industry Marketing Programs, 1956 – 1995”,
NICPRE Quarterly, Vol. 4. No. 3, 1998.
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Marketing
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Export Promotion- Market Access
Promotional Program
$138.5 million allocated by USDA, Foreign Agricultural
Service in 2005 to promote Mediterranean type
crops.
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Food Purchases
USDA, Agricultural Marketing Service (AMS) domestic
purchases of fruits and vegetables were $445.8
million in 2004 and $375 million in 2005.
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Marketing
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Food Assistance and Nutrition
National Research
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USDA, Agricultural Research Service (ARS) allocated ~$160.4
million or 33.7% of its FY 2005 $476.1 million budget to fruits,
nuts and vegetable research.
USDA, Cooperative State Research, Education and Extension
(CSREES) FY Budget invested approximately $79.6 million to
support research, extension and education focused on fruits, nuts,
and vegetables representing about 7.2% of a total budget of $1.1
billion.
USDA, Economic Research Service (ERS) in FY 2005 budgeted
$542,000 to staff and overhead costs for specialty crops research
and $165,800 to cooperative research agreements with external
collaborators representing ~ 1% of its $74 million.
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Other Federal Support
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Mediterranean Products Planting Restrictions
USDA, Animal and Plant Health Inspection
Service (APHIS)
Difficult to isolate APHIS budgetary outlays that address
pest and disease activities that relate specifically to
Mediterranean products. There is annual appropriation
of $60 million for the fruit fly exclusion and detection
program and $18 million is budgeted for trade issues
management and resolution. The total FY 2006 budget
for APHIS activities is $306 million.
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Other Federal Support
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Specialty Crop Block Grants to the States
The Emergency Agricultural Assistance Act (EAAC) of 2001
provided states with block grants to promote specialty crops.
provided almost $160 million to all 50 states and Puerto Rico.
Specialty Crop Competitiveness Act (SCCA) of 2004 (PL 108465). The SCCA block grants are to support programs in
research, marketing, education, pest and disease management,
production, and food safety. The initial legislation (HR 3242)
called for a mandatory annual appropriation of $470 million in
mandatory funds from the Commodity Credit Fund to support
the block grant program. The final bill authorized the program
subject to annual appropriations, and limited funding to $44.5
million per year ($7 million was appropriated in FY 2006).
The 2007 Farm Bill and Mediterranean
Products
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HR 6193 “Equitable Agriculture Today for a
Healthy America Act” or the “Eat Healthy
America Act”
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Objective: permanently incorporating specific specialty crop
programs into federal farm legislation.
Support: Over 70 U.S. specialty crop organizations representing
producers of fresh fruit, dried fruit, tree nuts, and other specialty
crops.
The Bill contains eight titles that provide for government support
for specialty crop block grants, disaster assistance, conservation,
international trade, pest and disease control, nutrition, research
and development, renewable energy, and miscellaneous issues