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Summary:
Congress is currently conducting field hearings in preparation for upcoming consideration of legislation to replace the expiring Farm Security and Rural Investment Act of 2002 (P.L. 107-171, the 2002 farm bill). Farm bill policies governing U.S. Department of Agriculture (USDA) programs on marketing, crop insurance and disaster assistance, protection against pests and diseases, export promotion, and domestic food assistance, among others, are important to the competitiveness of the specialty crop sector of U.S. agriculture. The sector includes fruit, vegetable, tree nut, and nursery crop producers, processors, manufacturers, wholesalers, importers, and exporters. Of particular importance are the policies Congress sets for the major farm income and commodity price support programs for grains, oilseeds, peanuts, sugar, upland cotton, and dairy. Congress inserted a provision in the 1996 farm bill (P.L. 104-127, the Federal Agriculture Improvement and Reform Act) permitting program participants to plant different crops on their program acres and still receive benefits. Before final passage, Congress added another provision largely restricting participants from planting fruits and vegetables on those acres, after specialty crop interests expressed concern over the price volatility that the sector could suffer as a result. Congress renewed the planting restriction in the 2002 farm bill. The upcoming farm bill debate on the planting restriction provision, as well as other key policies, will be affected by several new factors. Trade agreement concerns could potentially require a relaxation of planting restrictions, and constrain policies affecting the amount of spending for program crops. Additionally, legislation passed in 2004 (the 108th Congress) that created special programs to increase the competitiveness of specialty crops, and new, similar proposals introduced in the 109th Congress, indicate the specialty crop sector's active interest in greater federal investment in non-trade distorting support that would reflect the value of their contribution to U.S. agriculture. For example, the latest proposals call for increased funding to states for research and promotion efforts, strengthening activities to overcome phytosanitary (pest and disease) barriers to exports, expanding efforts to keep harmful pests and diseases from entering the country, and providing mandatory funding for a large competitive research grant program to address a broad spectrum of specialty crop development needs. This report discusses potential 2007 farm bill proposals affecting the specialty crop sector as gleaned from the 2004 bill as introduced (H.R. 3242), as passed (P.L. 108-465), and from the proposals introduced in the 109th Congress (H.R. 3562/S. 1556; S. 2487). The report will track congressional consideration of the 2007 farm bill and will be updated as necessary.
