Federal Farm Policy - Marketing - Lecture Slides, Slides of Marketing Management

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“If you eat, you’re involved

in agriculture.”

— Wendell Berry, farmer and philosopher

Wendell Berry

7 South Carolina cotton farmers, 1932 USDA Photo by George Ackerman Corn shucking in NJ, 1941 USDA Photo by John Collier

Federal Farm Policy

 Dates back to the 1930s  Currently $20 billion per year  Not well understood by the public  May 2002 version is 421 pages Photo source: USDA.

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Farm Bill and Federal Nutritional Guidelines

Image source: USDA.

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Where Do Farm Bill Dollars Go?

 Corn and soybean subsidies = $15–24 billion per year Animal feed Sweeteners Hydrogenated oils  Fruit and vegetable subsidies = $ Exception: apple subsidies begun in 2001— < $100 million/year

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Post-World War II

 Industrial fixation of nitrogen for munitions  Surplus of nitrogen and industrial facilities after the war used for fertilizer production*  Changed structure of agriculture post-1950s Specialization Mono-cropping Separation of crops from livestock *For more information on the increase of nitrogen usage, see:

1. The Land Institute’s Web site
2. The Environmental Working Group’s Web site, article entitled “Pouring It On:Nitrogen Use and Sources of Nitrate Contamination” Graph source: Food and Agriculture Organization of the United Nations.

13 Large corn farm in Colorado Source: USDA ERS

Adjustment to Change

 Farm Bill not adjusted as agriculture changed  Large farms growing “subsidy” crops (corn, wheat, soy, cotton, rice) continue to receive payments and now receive the majority of funds Image source: USDA ERS.

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The Farm Bill and Sustainable Agriculture

 Can the farm bill have a greater influence in making agriculture more sustainable? WTO challenges to U.S. and E.U. subsidies that make agriculture exports artificially cheap in other nations hurting farmers in many countries Greater public interest and concern about environmental effects of agriculture and effects on global and local food security

16 At the USDA-ARS Conservation and Production Research Laboratory in Bushland, Texas, wind turbines generate power for submersible electric water pumps that are far more efficient than traditional windmills. Photo by Scott Bauer.

Specific Opportunities to Improve the Farm Bill

 Commodities title  Conservation title  Research and Extension title  Energy title Photo source: Bauer, Scott.

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Research and Extension Title

 Small amount of funding (~100 million/year)  Sustainable Agriculture Research and Education (SARE) USDA research program Model for future farm programs Farmers involved in all aspects of decision making Annual funding increases

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Commodities and Conservation Titles

 Commodities = income support for farmers growing corn, soybeans, cotton, rice  The bulk of farm subsidies go to a small number of the largest farms  Short-term income support is probably necessary to support farmers, but the goal is to tie these together

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Conservation Security Program

 “Green payments”  Benefits Ties income support to conservation Available to ALL farmers Encourages responsible farming practices; not just taking land out of agricultural production Compliant with WTO regulations  Problems Minimal funding ($200 million/year)

22 “If there is not a struggle, there is no progress. Power concedes nothing without a demand.” — Frederick Douglass, abolitionist leader

Power and Progress

Image source: USDA. Photo by Ron Nichols.