Senate passage of a Farm Bill that provides provisions for operating US sugar policy at no cost to the taxpayer, and around US$1bn funding for the fruit and vegetable industry, drew applause from US sugar farmers and fruit and vegetable growers.
Go deeper with GlobalData
Sugar
The American Sugar Alliance (ASA) revealed that sugar policy has been operated at a cost to the taxpayer during the 1980s and most of the 1990s. These latest provisions however reinstate the Secretary of Agriculture’s ability to balance sugar supply with demand during times of surplus, thus avoiding forfeitures on Commodity Credit Corporation-backed loans that could result in government costs.
Dalton Yancey, chairman of the ASA, said: “The sugar provisions in this bill give us a chance of maintaining a viable industry at no cost to the government.
“It is our belief that this no-cost approach is vital to the continuation of US sugar policy, and thus the livelihood of our farmers and their families, as well as the hundreds of thousands of workers in the nation whose jobs are directly or indirectly related to a healthy US sweetener industry.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn a press release, Yancey referred to a study conducted by LMC International, Oxford, England, which reported that the US sweetener industry, including corn sweetener as well as sugar, generates 372,000 jobs in 42 states and adds US$21.1bn annually to the economy. Sugarbeets are grown in 12 states and sugarcane in four.
Provisions in the Senate-passed bill for the sugar industry include:
*Reinstate authority to the Secretary of Agriculture to impose domestic marketing allotments in order to balance the markets, avoid forfeitures, and comply with import commitments under the WTO and the NAFTA.
*Reauthorize non-recourse loan program through 2011 at 18 cents per pound for raw cane sugar and 22.9 cents per pound for refined beet sugar, which is essentially the same level since 1985.
and
*Direct the Secretary of Agriculture to operate the policy, to the maximum extent practicable, at no cost to the US Treasury, by avoiding sugar loan forfeitures.
Fruit and vegetables
Meanwhile, fruit and vegetable growers welcomed the fact that Congress recognized the need to incorporate produce industry priorities and has included approximately US$1bn in funding to help address key marketing, economic, and consumption needs for the industry.
“We are pleased that another step has been taken to complete work on this important legislation and move the process into the next stage of legislative consideration,” said Robert Guenther, United’s VP of Government and Public Affairs: “There continues to be a tremendous amount of work which must be accomplished in order to see real benefits from this farm bill.
“More importantly, for the first time in decades we have an opportunity for farm bill legislation to encompass comprehensive policy provisions that will go a long way to ensure the future viability of the produce industry,” he said.
Provisions in the Senate-passed bill for the fruit and vegetable industry include:
*Specialty Crop Purchases – Beginning in FY 2002, US$100m will be used to purchase specialty crops for federal nutrition programs. This funding will be increased up to US$170m in FY 2006. Out of this funding, at least US$50m per year must be used to purchase fresh fruits and vegetables. The total direct funding for this purchase program will be US$580m.
*Fruit and Vegetable Domestic Promotion Program – US$125m has been allocated to a fruit and vegetable domestic promotion program to increase the consumption of fruits and vegetables. This will be a cost-share program and will target 15 states in which the production of fruits and vegetables is a significant industry.
*Free Fruits and Vegetables in Schools – A pilot program with 25 elementary or secondary schools from four states allowing all students free fruits and vegetables throughout the school day.
*Agriculture Quarantine Inspection (AQI) Service Provision Eliminated – A provision that would have restricted funding was stripped from the bill allowing for an additional US$100m per year to be dedicated for federal and state pest and disease exclusion activities.
*Country of Origin Labeling – A provision allowing for country-of-origin labeling for fruits and vegetables was retained after being stripped earlier in the week.
*Food Stamp Double Coupon For Fruits and Vegetables Program – Creation of a new pilot program to allow for the expansion of incentives under the Food Stamp Program such as “double coupons” which will encourage increased fruit and vegetable consumption is included.
*Tree Assistance Program Extended – Extension of the Tree Assistance Program (TAP) to cover retroactive losses up to US$100,000 per person after 1 January 2000.
Both the House and Senate farm bills include provisions supporting the industry’s Farm Bill Working Group which advocated policies that promote the consumption and demand of fruits and vegetables while developing tools for the industry that will drive utilization of these important commodities. The Working Group developed over 50 policy recommendations that were supported by the entire fresh fruit and vegetable industry and were presented to House and Senate last year.
“Now is the time for the produce industry and those in Congress who represent key fruit and vegetable regions of the country to pull together and ensure that as a major contributor to the economic vitality of the US agriculture community, our priorities are secured,” said Guenther. “With the additional funding and new programs included in the House and Senate farm bills, the ground work has been laid to put in place market-oriented assistance that the produce industry favors and we can’t let the momentum ebb,” he concluded.
The Senate passed S. 1731, Agriculture, Conservation, and Rural Enhancement Act of 2002 by a vote of 58-40. This concludes Senate consideration held over from December on legislation that will dictate farm policy over the next decade. Congress will now convene a conference committee between the US House of Representatives and the Senate to work out differences between the House and Senate farm bill legislation. Both the House and Senate passed farm bills leave intact the traditional farm subsidy programs.
