Wednesday, February 5, 2014

Agriculture Policy


A.1  How have government farms subsidies impacted the United States? The world? 

The farms subsidies seems like a burden to the United States and doesn't really help agricultural 
industry. First of all, the farms subsidies are huge amount of money which could be a large pressure
on tax-payers which includes both producers and consumers. Usually the farms subsidies kicks in 
when the price is low. It seems like a really nice deal but it could also cause overproduction which 
keeps the price low and harms the environment.

A.2  What would be the implications of eliminating subsidies? Consider both American farmers – of all types – and farmers in developing countries (e.g., countries in Africa) – who would benefit or be harmed by ending U.S. farm subsidies?  How?

Subsidies make the cost of producing in America easier and help the American farmers to keep the 
price lower then their competitors such as the foreign farmers. The difference in price makes the 
products from America more competitive than products from countries without farms subsidies in 
the global market.

B.1  Are there “crop subsidy”-type provisions in the CAP? If so, how do they compare to U.S. subsidies?
There is crop subsidy in CAP. Unlike the subsidies in U.S., which goes to ordinary farmers, it

only goes to the wealthy landowners and businessmen. 

B.2  Is the CAP viewed in the same light as U.S. subsidies?  Does it have the same type of economic impact or effects as U.S. subsidies?
      Many European countries seems benefit from CAP payments much more than the American 
      agriculture benefit from U.S. subsidies. 
      Manny European countries especially Western-european countries benefits from CAP a lot such as         France, the biggest agricultural producer in Europe. However, just like American subsidies, it also         cause the inequality in the price in global market.


C.1 What changes are being made to government policy for for milk, cheese, and butter prices?
The 70-year-old policy is abandoned and a bill will offer insurance to farmers to protect themselves from unexpected flow in price of milk and feed.

     


Farm Bill news stories and other esources for class, Thursday, Feb. 6


Here are four news stories, blogs, and other web resources.  Each is accompanied by questions that we'll discuss in class.  Please have a look before Thursday's class.

From the New York Times: Senate Passes Long-Stalled Farm Bill, With Clear Winners and Losers. 

Questions: 
  • Name two clear winners and two clear winners from the Farm Bill.
  • Do you agree with the NY Times' analysis?

From the Washington Post: 5 things to know about the massive farm bill. Feb. 3, 2014
Questions:
  • Regarding food stamps, does this article send the same message as the NY Times article?
  • What's the so-called victory for animal rights groups?  Explain it.

From American Farmland Trust:   The 2014 Farm Bill: Farm Policy for the 21st Century.  Look into all the sections.
Questions:
  • If I were ag policy tsar, I said I'd aim a policy towards new farmers.  Look through this web site and see what's in the Farm Bill for new farmers!  Explain.

Food Politics blog, by Marion Nestle
Questions:
  • Marion Nestle says the Farm Bill support fruits and vegetables.  Do you agree?
  • What about organic?  Does the Farm Bill increase support for organic agriculture?

Friday, January 31, 2014

Next week is Ag Policy week in class...

...and everyday brings more and more news stories about this year's farm bill. 

Here's one of many.  This one is from NPR.  Click here to go to the story.

Wednesday, January 29, 2014

ORGANIC FOOD AND AGRICULTURE

By Carlen Stadnik 
 
Based on:  Prof. Edward Jaenicke and National Organic Program, USDA.
What is Organic?
Organic is a label for agricultural products that are produced with approved substances under specific biological, mechanical, and cultural methods that support biodiversity, ecological balance, and the recycling of natural resources.
Under what conditions can the USDA organic seal be used?
            The USDA organic seal can only be used to label, sell, or represent raw or processed products under the USDA organic regulations.  Processors or “handlers” must be certified.  For example, a dairy farm that processes organic cheese needs to be certified for both milk production and cheese processing.  Misuse of the label can result in a fine of up to $11,000 for each individual violation.  The USDA performs investigations and enforcement activities to confirm that organic labeled products satisfy the USDA organic regulations.  CFR Section 205 displays USDA organic standards, prohibited practices, requirements, and the National List of Allowed and Prohibited Materials.
Suppose you were considering buying organic poultry and you saw competing (non-organic) poultry product labeled “no added hormones.”  What would you think of this competing claim?
            In addition to the organic label, “no added hormones” and “raised without hormones” are examples of other labels for livestock that are verified by the USDA Food Inspection Service.  Synthetic growth hormone or steroid use in poultry, pork, or goat has never been permitted by federal regulations.  When considering hormones, organic poultry is no different from non-organic poultry labeled as “no added hormones.”  Therefore, this label should not influence the choice of the consumer.  Other differences between the organic and the non-organic option should instead influence the consumer’s decision. 
            In addition, consumers often confuse hormones with prophylactic antibiotics.  Prophylactic antibiotics are used for prevention purposes.  Antibiotics are fed to chickens, hogs, and cows to keep them healthy, so they can grow faster.  They protect the animals against their exposure to stress, such as being enclosed in a small space with many other animals.  Organic regulations require antibiotic use when animals are diagnosed as sick, but prohibit prophylactic use. 
            Synthetic hormones are only permitted in milk production.  The use of the rBST synthetic growth hormone is permitted for dairy cows.  The use of this hormone was very common, but not anymore because it’s not worth the sum of the direct and indirect costs.  The direct costs indicate the price of the hormone and the indirect costs denote the possible poor long-term health of the cows. 

What are the four (big) things that may not be used in organic agriculture?
            Genetically modified organisms (GMO’s), synthetic fertilizers and pesticides, radiation, and sewage sludge may not be used in organic agriculture.
Suppose you are a small farm growing a few crops using organic methods.  Do you need to get USDA certification to use the word “organic” in any marketing or sales materials?
            A small farm that grows a few crops using organic methods and sells less than $5,000 of products per year does not need to obtain USDA certification to use the word “organic” in any marketing or sales materials as long as the USDA organic seal is not used.  The farm must become certified if sales increase beyond the $5,000 per year threshold.  To become certified, there is a specific organic certification process that must be followed.  The farm owner must apply to a USDA-accredited certifying agent and provide specific information for acceptance.
Is USDA organic certification free?  If not, what can you tell me about certification costs?
         The USDA organic certification is not free.  The certification costs depend on the type, size, and complexity of the operation and the certifying agent.  The costs may be between a few hundred to several thousand dollars. Before applying, it is important to understand the certifier’s fee structure and billing cycle. There is an application fee, assessment on annual production or sales, annual renewal fee, and inspection fee.  The USDA Organic Certification Cost-Share Programs can reimburse the operation up to seventy-five percent of the certification costs after certification. 
Supposed you, a small farmer, became convinced that you wanted to convert to organic methods immediately.  How long, if at all, would you have to wait before you could sell certified organic products?
            An owner of a small farm must use organic methods for three full years before using an organic label.  Labeling with the USDA organic or certifying agent’s seal, selling, or representing products as “organic” is prohibited before three years.  Land used for raw organic produces must not have prohibited substances applied to it for three years, as well.
Name and explain three challenges facing the U.S. organic industry.
            The U.S. organic production has more than doubled, since the 1990’s.  However, the more rapid growth of the consumer market has caused an input and product shortage in organic supply chains.  High cost products and competition from new environmental labels are also challenges facing the U.S. organic industry.

Extra resourcers of Thurday's discussion of organic food and agricutlure

On Thursday, Jan. 30, we will try to discuss three topics:

1. Links between organic food and health.  See this blog post from last year:  click here.  If you look at one thing, look at this!

Questions:
Is organic food healthier?  Does it matter?

2. Organic food in France: 
A. Here's a short presentation (in English) about the market for organic food in France: click here.
B. A Canadian report on the market for organic packaged food in France:  click here.

Questions:
How similar (or different) is the market for organic food in France to here in the U.S.?

3. Stump Jaenicke on organic.  I think I know a lot about organic food.  Think up (hard) questions and ask me.

4. If time:  Beyond organic - local food, sustainable, and other related labels and issues.  Have a look at this NY Times article:  click here.

Wednesday, January 22, 2014

More Resources on GMOs: Comparings Apples and Oranges

For class on Thursday, Jan. 23, we will be literally compare apples and oranges, at least as they relate to GMOs.

Here are some resources:

An NPR story on GMO apples by Dan Charles from January 08, 2014: click here.
Soon after being sliced, a conventional Granny Smith apple (left) starts to brown, while a newly developed GM Granny Smith stays fresher looking.

A NY Times story on GMO oranges by Amy Harmon from July 27, 2013:  click here.


A 28-part (!) series in Grist on GMOs by Nathanael Johnson, from July 2013 to January 2014: 
click here.