One of the top priorities of the United Fresh Produce Association and the Specialty Crop Farm Bill Alliance is to maintain or strengthen the planting flexibility restriction in the next farm bill. Since fruit and vegetable growers do not receive program payments, this law acts as the industry’s one and only safety net. It provides a level playing field for fresh fruit and vegetable growers to compete against growers of subsidized commodity crops who may want to use base acres to grow fruits and vegetables.
Background
Generally, U.S. growers have the freedom to decide which commodity they will produce. This is commonly referred to as providing “planting flexibility” to growers. However, several years ago, Congress decided to restrict growers receiving program payments from also planting fruits and vegetables on that same acreage. The reason for this policy is so that fruit and vegetable growers can rely on a stable and consistent supply of produce in the marketplace. Without this policy, fruit and vegetable growers, who do not receive federal subsidies, would be forced to compete with growers receiving program payments who also plant fruits and vegetables.
Congress first inserted this planting restrictions provision in the 1996 farm act, after it had adopted a proposal to allow producers of program crops to respond to market signals and grow different crops on base acreage. With the passage of the 2002 farm bill, the provision was extended another five years.
Current Status
The Farm Bill as passed by the House of Representatives on July 27, 2007, maintains the current restrictions that prevent the planting of fruits and vegetables on acres receiving program payments with one exception- the bill creates a narrow pilot program to be carried out in Indiana that allows the planting of tomatoes grown for processing. This pilot program would allow growers to plant tomatoes for processing on base acres in Indiana and on up to 10,000 acres in that state. This program will effective as a pilot in 2008 and 2009 only.
Similarly, the Farm Bill as passed by the Senate Committee on Agriculture, Nutrition and Forestry on October 25, 2007 maintains the current law prohibiting the planting of fruits and vegetables on base acreage with two exceptions " Indiana Pilot program (like the House version) and a newly proposed Average Crop Revenue Program (ACR).
The Average Crop Revenue Program (ACR), would be effective in 2010 and allows producers of crops receiving program payments to opt into this program in lieu of traditional program payments such as direct payments or counter-cyclical payments. Under the ACR program, there is a provision which allows for the production of fruits and vegetables for processing on base acres. The program is restricted to producers in Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, and Wisconsin and is capped at 10,000 acres of which can be converted from base acres to the production processing fruits and vegetables.
Unfortunately, the farm bill debate reached a standstill just before the Senate’s November recess began. The Senate is expected to reconsider the farm bill once they return in December. However, with the few legislative days left this year, many farm bill experts believe the chances of passing a bill are slim. Nevertheless, the agriculture community has united to urge the Senate to pass a bill this year. While United Fresh does not support altering the current planting flexibility policy, we, along with other agriculture groups, support passing of a 2007 Farm Bill that includes significant funding for specialty crops.
Action
United Fresh urges Members of Congress to pass a new farm bill that includes sufficient levels of funding to address the needs of the specialty crop industry, and to maintain our industry’s one and only safety net- the planting flexibility restriction.
Essential Policy Resources
Tell your legislators the produce industry needs to pass the 2007 Farm Bill!
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