8. Discussing topics dealing with organic crops.
Johanns Highlights USDA's 2007 Farm Bill Proposals for Specialty Crops
Proposes $5 Billion in Additional Targeted Funding

CHICAGO, IL, May 7, 2007 - Agriculture Secretary Mike Johanns today highlighted the array of changes put forward in the Administration's farm bill proposals that would benefit specialty crop growers. In a speech to the Organic Trade Association and the United Fresh Produce Association the Secretary called the proposals clear evidence of the Administration's commitment to equitable farm policy.

"We listened when producers told us that farm policy should distribute support more equitably. Specialty crops are now nearly equal in market value to program crops, yet these producers receive no direct cash support," said Johanns. "Specialty crop producers made it clear they don't want a cash subsidy, but they would like additional support to address market promotion, sanitary and phytosanitary issues, nutrition, and targeted research. Our proposals provide that support with nearly $5 billion dollars worth of additional funding targeted toward specialty crop growers."

The proposal includes an additional $2.75 billion in Section 32 funds over 10 years to specifically purchase fruits and vegetables for USDA nutrition programs, including the National School Lunch and Breakfast Programs.

The following is a list of additional components of the specialty crops package:

Trade Title

The Market Access Program (MAP) has shown to be effective at expanding markets for U.S. agricultural products. While specialty crops are already a significant user of this program, USDA proposes new mandatory funding of $250 million over ten years to help address the inequity between crops that are directly subsidized and those commodities that are not directly subsidized.

The Technical Assistance for Specialty Crops (TASC) program awards grants to applicants for projects that result in market access expansion for specialty crops. USDA proposes enhanced mandatory funds of $68 million that would be phased in through FY 2013. The proposal would also increase the maximum allowable annual project award from $250,000 to $500,000 and allow more flexibility to grant TASC project timeline extensions.

Increase support for initiatives that help to address sanitary and phytosanitary (SPS) issues and other trade restrictions including:

- Create a new grant program investing $20 million to further focus resources on addressing international SPS issues.

- Establish long-term mandatory funding of $15 million to increase U.S. presence at international standard-setting bodies, such as the Codex Alimentarius, the International Plant Protection Convention, and the World Animal Health Organization.

- Enhance monitoring, analytical support, and other technical assistance to support U.S. agriculture in bringing forward or responding to significant trade disputes and challenges. U.S. specialty crop exports are sometimes threatened by trademark piracy in international markets and USDA technical assistance could help to address these challenges.

Nutrition Title

Provide $500 million in new mandatory funding for the purchase of additional fruits and vegetables for use in the National School Lunch and Breakfast Programs.

Establish a new five-year $20 million competitive grant program address the growing problem of obesity among low-income Americans.

Support school efforts to offer meals based on the most recent Dietary Guidelines for Americans, including the encouragement of the increased consumption of fruits and vegetables.

Reauthorize the Emergency Food Assistance Program (TEFAP) and provide more fruits and vegetables within the program.
Commodity Programs Title

To ensure that direct payments will be considered non-trade distorting green box assistance, the Administration proposes that the provision of the 2002 farm bill that limits planting flexibility on base acres to exclude fruits, vegetables, and wild rice, should be eliminated.

Conservation Title

Enhance several conservation programs that assist specialty crop producers in managing natural resources. These include: significant increases to the Wetlands Reserve Program, Environmental Quality Incentives Program, and the Private Lands Protection Program.

Rural Development Title

Prioritize consideration of project applications that involve specialty crops in the Rural Development Value-added Grants awards-process.

Energy Title

Initiate a new, temporary program to provide $100 million in direct support to producers of cellulosic ethanol. Eligibility for this program would be restricted to specialty crop wastes and other cellulosic biomass feedstocks.

Research Title

Invest $1 billion over 10 years to establish a Specialty Crop Research Initiative to provide science-based tools that address needs of specific crops and regions and which continue advancements in productivity and technology.

9 Breaking News on Supplements & Nutrition - North America

USDA highlights farm bill proposals for specialty crops

By Lorraine Heller

NutraIngredients-USA.com

5/14/2007- US Agriculture secretary Mike Johanns last week presented industry representatives with details of changes to the administration's

2007 farm bill, which provide an additional $5bn to address issues such as nutrition and obesity.

In a speech to the Organic Trade Association (OTA) and the United Fresh

Produce Association, Johanns called the proposals clear evidence of

commitment to equitable farm policy.

"We listened when producers told us that farm policy should distribute

support more equitably. Specialty crops are now nearly equal in market

value to program crops, yet these producers receive no direct cash support,"said Johanns.

"Specialty crop producers made it clear they don't want a cash subsidy,

but they would like additional support to address market promotion, sanitary

and phytosanitary issues, nutrition, and targeted research. Our proposals

provide that support with nearly $5bn worth of additional funding

targeted toward specialty crop growers."

The proposal includes an additional $2.75bn funds over ten years,

specifically for purchasing fruits and vegetables for US Department of

Agriculture (USDA) nutrition programs, including the National School

Lunch and Breakfast Programs. Some $500m has been allocated, in mandatory funding, to the purchase of additional fruits and vegetables for these programs. This is part of an effort to help schools offer meals based on the most recent Dietary Guidelines for Americans.

In addition, a new five-year $20m competitive grant program is designed

to address the growing problem of obesity among low-income Americans.

Regulated by the USDA and renewed every five to six years, farm bills

are a collection of laws that set the overall direction of the nation's agriculture.

The legislation set out in a farm bill aims to provide a safe and

affordable supply of food through programs that promote US agriculture. The bills

typically contain provisions for commodity prices, agricultural trade and crop insurance, amongst others.

Other proposals highlighted by Johanns last week include establishing

long-term mandatory funding of $15m to increase US presence at

international standard-setting bodies, such as the Codex Alimentarius, the

International Plant Protection Convention, and the World Animal Health Organization.

The bill also aims to enhance monitoring, analytical support, and other

technical assistance in order to support US agriculture by bringing

forward or responding to significant trade disputes and challenges. According to

USDA, US specialty crop exports are sometimes threatened by trademark

piracy in international markets and the agency's technical assistance could

help to address these challenges.

USDA also plans to invest $1bn over ten years to establish a Specialty

Crop

Research Initiative. This will provide science-based tools that address

the needs of specific crops and regions and which continue advancements in

productivity and technology.

Johanns also said that in terms of trade, the Market Access Program

(MAP)

has proved effective at expanding markets for US agricultural products.

While specialty crops are already significantly involved in this

program, USDA proposes new mandatory funding of $250 million over ten years to

help address the inequity between crops that are directly subsidized and

those commodities that are not directly subsidized.

The 2007 farm bill aims to create a market-oriented farm program,

considering more than commodity prices alone when determining the

appropriate level of government support.

The new bill proposes to spend around $10bn less than the 2002 farm

bill, with the largest single slice of the budget ($7.8bn) going towards

increasing conservation programs that protect the natural environment.

The new farm bill also proposes to: focus on renewable energy research,

development and production; support start-up farmers and socially

disadvantaged farmers; strengthen disaster relief; and simplify and

consolidate rural development programs.

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