[House Hearing, 113 Congress]
[From the U.S. Government Publishing Office]
HEARING TO REVIEW HORTICULTURE PRIORITIES FOR THE 2013 FARM BILL
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON HORTICULTURE, RESEARCH, BIOTECHNOLOGY, AND FOREIGN
AGRICULTURE
OF THE
COMMITTEE ON AGRICULTURE
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRTEENTH CONGRESS
FIRST SESSION
__________
APRIL 24, 2013
__________
Serial No. 113-4
Printed for the use of the Committee on Agriculture
agriculture.house.gov
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COMMITTEE ON AGRICULTURE
FRANK D. LUCAS, Oklahoma, Chairman
BOB GOODLATTE, Virginia, COLLIN C. PETERSON, Minnesota,
Vice Chairman Ranking Minority Member
STEVE KING, Iowa MIKE McINTYRE, North Carolina
RANDY NEUGEBAUER, Texas DAVID SCOTT, Georgia
MIKE ROGERS, Alabama JIM COSTA, California
K. MICHAEL CONAWAY, Texas TIMOTHY J. WALZ, Minnesota
GLENN THOMPSON, Pennsylvania KURT SCHRADER, Oregon
BOB GIBBS, Ohio MARCIA L. FUDGE, Ohio
AUSTIN SCOTT, Georgia JAMES P. McGOVERN, Massachusetts
SCOTT R. TIPTON, Colorado SUZAN K. DelBENE, Washington
ERIC A. ``RICK'' CRAWFORD, Arkansas GLORIA NEGRETE McLEOD, California
MARTHA ROBY, Alabama FILEMON VELA, Texas
SCOTT DesJARLAIS, Tennessee MICHELLE LUJAN GRISHAM, New Mexico
CHRISTOPHER P. GIBSON, New York ANN M. KUSTER, New Hampshire
VICKY HARTZLER, Missouri RICHARD M. NOLAN, Minnesota
REID J. RIBBLE, Wisconsin PETE P. GALLEGO, Texas
KRISTI L. NOEM, South Dakota WILLIAM L. ENYART, Illinois
DAN BENISHEK, Michigan JUAN VARGAS, California
JEFF DENHAM, California CHERI BUSTOS, Illinois
STEPHEN LEE FINCHER, Tennessee SEAN PATRICK MALONEY, New York
DOUG LaMALFA, California JOE COURTNEY, Connecticut
RICHARD HUDSON, North Carolina JOHN GARAMENDI, California
RODNEY DAVIS, Illinois
CHRIS COLLINS, New York
TED S. YOHO, Florida
______
Nicole Scott, Staff Director
Kevin J. Kramp, Chief Counsel
Tamara Hinton, Communications Director
Robert L. Larew, Minority Staff Director
______
Subcommittee on Horticulture, Research, Biotechnology, and Foreign
Agriculture
AUSTIN SCOTT, Georgia, Chairman
VICKY HARTZLER, Missouri KURT SCHRADER, Oregon, Ranking
JEFF DENHAM, California Minority Member
STEPHEN LEE FINCHER, Tennessee SUZAN K. DelBENE, Washington
DOUG LaMALFA, California JIM COSTA, California
RODNEY DAVIS, Illinois MARCIA L. FUDGE, Ohio
CHRIS COLLINS, New York ANN M. KUSTER, New Hampshire
TED S. YOHO, Florida JUAN VARGAS, California
SEAN PATRICK MALONEY, New York
(ii)
C O N T E N T S
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Page
Scott, Hon. Austin, a Representative in Congress from Georgia,
opening statement.............................................. 1
Prepared statement........................................... 2
Schrader, Hon. Kurt, a Representative in Congress from Oregon,
opening statement.............................................. 3
Witnesses
Frey-Talley, Sarah M., President and Chief Executive Officer,
Frey Farms, Keenes, IL......................................... 4
Prepared statement........................................... 6
Brim, William L., President and Owner, Lewis & Taylor Farms,
Inc., Tifton, GA............................................... 9
Prepared statement........................................... 11
Bushue, Barry, Vice President, American Farm Bureau Federation;
President, Oregon Farm Bureau Federation, Boring, OR........... 14
Prepared statement........................................... 15
Submitted Material
Barnard, Steve, President and Chief Executive Officer, Mission
Produce Company; Chairman of the Board, Western Growers
Association, submitted statement............................... 39
HEARING TO REVIEW HORTICULTURE PRIORITIES FOR THE 2013 FARM BILL
----------
WEDNESDAY, APRIL 24, 2013
House of Representatives,
Subcommittee on Horticulture, Research, Biotechnology, and
Foreign Agriculture,
Committee on Agriculture,
Washington, D.C.
The Subcommittee met, pursuant to call, at 10:02 a.m., in
Room 1300 of the Longworth House Office Building, Hon. Austin
Scott [Chairman of the Subcommittee] presiding.
Members present: Representatives Scott, Denham, LaMalfa,
Davis, Collins, Yoho, Schrader, DelBene, Costa, Kuster, and
Vargas.
Staff present: Debbie Smith, John Goldberg, Mary Nowak,
Patricia Straughn, Pete Thomson, John Konya, Merrick Munday,
Keith Jones, Liz Friedlander, and Caleb Crosswhite.
OPENING STATEMENT OF HON. AUSTIN SCOTT, A REPRESENTATIVE IN
CONGRESS FROM GEORGIA
The Chairman. Good morning. This hearing of the
Subcommittee on Horticulture, Research, Biotechnology, and
Foreign Agriculture, entitled Horticulture Priorities for the
2013 Farm Bill, will come to order.
The purpose of this hearing is to gather information from
the specialty crop industry as our Committee begins assembling
the 2013 Farm Bill. We want to ensure our work product reflects
your highest priorities. We are pleased to have before us
several witnesses who are involved in horticulture. A good deal
of work has been done in previous Congresses, but as we all
know, the process last year did not result in the enactment of
a full 5 year farm bill. However, I believe a review of the
Committee work from last year may be helpful as we begin
today's discussion.
Back in 2008, this Committee for the first time devoted a
title exclusively to horticulture. Last year, the Committee
proposed providing states with the flexibility to tailor
projects to their particular concerns related through the
Specialty Crop Block Grant Program. We also proposed
enhancements to programs related to plant pest, and disease
control. With early plant pest detection, threat identification
and mitigation, and technical assistance in plant pest
management systems, growers are given the necessary tools to
combat current and future threats.
The Committee also proposed allocating funds to assist
specialty crop producers who face technical barriers related to
trade. Among the issues faced by specialty crop producers are
the numerous trade barriers put in place by other markets
around the world. By providing technical assistance, the
Committee sought to assure producers are continually provided
avenues to grow in foreign markets.
While many issues faced by the specialty crop industry were
addressed, the industry continues to face many challenges.
Pests and disease concerns are increasing, growers face
continued food safety concerns, pressures with natural
resources and regulatory burdens continue to grow. All of these
concerns threaten the production of healthy food for Americans
and people around the world.
Before us today is a panel that represents almost every
aspect of the specialty crop industry. We have a representative
from the growing, packing, and shipping industry with
operations in the Southeast and Midwest, a fruit and vegetable
grower from my home State of Georgia, and the President of the
Oregon Farm Bureau. I hope we can continue to remain receptive
to the priorities of the industry and address any issues that
may have arisen last summer. We appreciate the time each of you
has given to prepare for this hearing. Your testimony will be
of significant importance as we begin the process to
reauthorize a new farm bill.
[The prepared statement of Mr. Scott follows:]
Prepared Statement of Hon. Austin Scott, a Representative in Congress
from Georgia
Good morning. The purpose of this hearing is to gather information
from the specialty crop industry. As the Committee begins assembling
the 2013 Farm Bill, we want to ensure our work product reflects your
highest priorities. We are pleased to have before us several witnesses
who are involved in horticulture.
A good deal of work has been done in the previous Congress, but as
we all know the process last year did not result in the enactment of a
full 5 year farm bill. However, I believe a review of the Committee
work from last year may be helpful as we begin today's discussion.
Back in 2008, this Committee, for the first time, devoted a title
exclusively to Horticulture. Last year, this Committee proposed
providing states with flexibility to tailor projects to their
particular concerns related through the Specialty Crop Block Grant
program. We also proposed enhancements to programs related to plant
pest and disease control. With early plant pest detection, threat
identification and mitigation, and technical assistance in plant pest
management systems, growers are given the necessary tools to combat
current and future threats.
The Committee also proposed allocating funds to assist specialty
crop producers who face technical barriers related to trade. Among the
issues faced by specialty crop producers are the numerous trade
barriers put in place by other markets around the world. By providing
technical assistance, the Committee sought to assure producers are
continually provided avenues to grow in foreign markets.
While many issues faced by the specialty crop industry were
addressed, the industry continues to face challenges. Pest and disease
concerns are increasing. Growers face continued food safety concerns.
Pressures with natural resources and regulatory burdens continue to
grow. All of these concerns threaten the production of healthy food for
Americans and people around the world.
Before us today is a panel that represents almost every aspect of
the specialty crop industry. We have a representative from the fresh
produce growing, packing and shipping industry with operations in the
Southeast and Midwest, a fruit and vegetable grower from my home State
of Georgia, and the President of the Oregon Farm Bureau who is also a
horticultural producer. I hope we can continue to remain receptive to
the priorities of the industry and address any issues that may have
arisen since last summer. We appreciate the time each of you has given
to prepare for this hearing. Your testimony will be of significant
importance as we begin the process to reauthorize a new farm bill.
I would like to recognize my colleague from Oregon, Ranking Member
Schrader, for any opening remarks he may have.
The Chairman. I would like to recognize my colleague from
Oregon, the Ranking Member, Mr. Schrader, for any opening
remarks he may have.
OPENING STATEMENT OF HON. KURT SCHRADER, A REPRESENTATIVE IN
CONGRESS FROM OREGON
Mr. Schrader. Thank you, Mr. Chairman.
I would like to thank you for holding this very important
hearing today. It is a great opportunity for us to talk about
specialty crops and the value they have for our great country.
I want to express my gratitude to the witnesses for coming
a long way and appearing before the Subcommittee to give us
your homegrown insight that carries a lot of weight, believe it
or not, here in Washington, D.C.
I would like to acknowledge and thank Barry Bushue in
particular. He traveled all the way from my home State of
Oregon. We have had a long and great relationship.
When it comes to discussing the farm bill, all too often
the conversation tends to focus on just the commodity or the
nutrition titles of the bill. That is despite the fact that
specialty crops account for nearly \1/2\ of all domestic farm
gate value nationwide. And, even with that, the specialty crop
title is usually a very small fraction of the overall bill. In
fact, it wasn't, as the chair pointed out, until 2008 that the
farm bill included specialty crops as a separate title. That is
why it is important to have this hearing today.
Specialty crops are facing very different challenges than
traditional program crops. These challenges range from pest and
disease issues to labor shortages to competition from foreign
producers. Specialty crop producers face these challenges
without the traditional assistance like direct payments to
support their industry. Programs like the Specialty Crop Block
Grant Program which requires matching funds, and eligible
projects that produce measurable outcomes. That is stuff that
America can understand.
The Specialty Crop Block Grant Program has funded projects
in all 50 states for the benefit of the industry at the state
level. These funds have been very successful in making our
producers more productive, more competitive, and more
profitable. Additional programs like the Specialty Crop
Research Initiative, the Market Access Program, Pest and
Disease Management Programs, the Fresh Fruit and Vegetable
Snack Programs, the Farmers' Market Promotion Programs, are all
examples of programs that are smart investments that benefit
specialty crop producers nationwide and cost very, very little.
Most importantly, I think a point to be made: these are not
government handouts. These are cooperative programs that
farmers and government alike work on.
I am sure many people in the room will be surprised to know
that my State of Oregon is a huge agricultural state. Nearly
one in eight jobs rely on agriculture. We are not all
Portlandia, folks. There are some of us that actually live in
rural America. We grow over 250 different crops valued at over
$5 billion a year and contribute over $22 billion in our
state's economy annually.
Here is an example of the diversity of Oregon agriculture:
we are the number one producer of Christmas trees, hazelnuts,
sugarbeets for seed, blackberries, boysenberries, rye grass
seed, orchard grass seed, red clover seed, and fescue, just to
name a few. And we are in the top five for nursery stock,
pears, cranberries, wine grapes, blueberries, and many other
crops. Please taste our pinot noir.
Oregon is the very definition, I would like to think, of a
specialty crop state. Our producers need a strong farm bill. I
hope this Committee continues to build on the success of the
2008 Farm Bill. I look forward to your testimony. And with
that, I yield back, Mr. Chairman.
The Chairman. Thank you, Mr. Schrader.
The chair would request that any other Members submit their
opening statements for the record so the witnesses may begin
their testimony and to be sure there is ample time for
questions. And if we have time and the Members so request, we
may do a second round of questions as well.
I would like to welcome our panel to the table. Ms. Sarah
Frey-Talley is President and CEO of Frey Farms from Illinois;
Mr. Bill Brim, President and Owner of Lewis & Taylor Farms from
my hometown of Tifton, Georgia; Mr. Barry Bushue, Vice
President, American Farm Bureau Federation, President of the
Oregon Farm Bureau Federation from Oregon.
Ms. Frey-Talley, please begin when you are ready.
STATEMENT OF SARAH M. FREY-TALLEY, PRESIDENT AND CHIEF
EXECUTIVE OFFICER, FREY FARMS, KEENES, IL
Ms. Frey-Talley. Good morning. Chairman Scott, Ranking
Member Schrader, and the Members of the Subcommittee, thank you
so much for holding this hearing to focus on specialty crops in
the upcoming reauthorization of the farm bill. I appreciate the
opportunity to share my perspective on these issues.
My name is Sarah Frey-Talley, and I am the President and
CEO of Frey Farms. Frey Farms is a multi-state grower of fresh
produce. We specialize in growing, packing, and shipping fresh
market produce, including cantaloupes and watermelons, but we
are best known as the nation's largest jack-o'-lantern pumpkin
producer. Our farms and facilities are strategically located in
Florida, Georgia, Missouri, Arkansas, Indiana, West Virginia,
and Illinois.
In addition to my role at Frey Farms, I am a member of the
United Fresh Produce Association and serve on United Fresh's
Government Relations Council. United Fresh is the only produce
trade association that represents all segments of the fruit and
vegetable production chain nationwide. United Fresh and its
counterparts in the Specialty Crop Farm Bill Alliance, known as
the SCFBA, a coalition of nearly 120 organizations in the
specialty crop sector, worked to ensure the 2008 Farm Bill
reflected the importance of specialty crops. With Congress'
support, that legislation contained nearly $3 billion in
specialty crop funding, which has been used to enhance the
competitiveness of specialty crops. I am glad to provide
comments on the issues facing specialty crop providers today
and how Congress can build on 2008's momentum.
In 2012 the SCFBA had examined the current state of
specialty crop farm bill programs and provided Congress with a
set of recommendations to support specialty crops. Key areas of
focus by the Alliance included Specialty Crop Block Grants,
specialty crop research, trade, nutrition, pest and plant
disease mitigation. Unfortunately, as you know, in spite of the
great deal of hard work by the Members of this Committee and
the Agriculture Committee leadership, the 2012 Farm Bill was
not reauthorized, and now, the work must begin all over again.
I would like to elaborate on the following specialty crop
farm bill priorities. Specialty Crop Block Grants: the
specialty crop industry was pleased with the annual funding
level of $70 million for Specialty Crop Block Grants in the
House Agriculture Committee-passed version of the 2012 Farm
Bill, and we urge you to maintain that level.
In addition, there are a few policy changes that would
increase the program's effectiveness. Examples of policy
improvements would be encouraging states to further expand or
prioritize grower level needs, as well as strengthening
requirements for justifications for how a project enhances the
competitiveness of specialty crops and include language to
encourage multi-state projects. The Alliance believes these
changes will further enhance the Block Grant Program.
The work that has been done in SCRI will yield benefits for
producers across the country by addressing issues such as
improving production efficiency, improving crop
characteristics, addressing pest and plant disease, response to
food safety hazards, and innovation and technology. The
specialty crop industry appreciated the $50 million allocated
annually to SCRI by this Committee. Also, the SCFBA believes
that making changes such as expanding research priorities for
specialty crops would be helpful. We also believe that
adjusting the process for reviewing grant applications to
ensure that projects reflect industry priorities would also be
beneficial.
As the Members of this Subcommittee are aware, SCRI is one
of the programs that had its funding authority expire due to
the lack of full reauthorization of the farm bill, which could
undermine the program's effectiveness. We urge you to address
this issue by making the authority for this program permanent.
The Fresh Fruit and Vegetable Program provides a fresh
fruit and vegetable snack to nearly four million low-income
schoolchildren across the country. As Members of the
Subcommittee may be aware, FFVP was recently evaluated by
outside experts and found to be highly effective at increasing
students' fresh fruit and vegetable consumption. We support the
funding of FFVP at $150 million per year.
And now, I will talk briefly about trade. The House
Agriculture Committee passed a version of the farm bill that
included $200 million for the MAP program, which is Market
Access Program, which the Alliance supported. The work that is
done through MAP to develop and expand international markets
has been very useful for the significant number of specialty
crop interests that participate in the program.
In addition, there are other challenges that are facing our
industry, including food safety, and as many of you know,
immigration. The stability of the specialty crop sector is
seriously impacted by our ability to attract a stable,
reliable, and skilled workforce. While produce providers have
varying levels of success with procuring a stable workforce
under the current Federal ag guest worker program known as the
H-2A, far too many providers have found this program to be too
slow, unresponsive, and cumbersome to work for their
operations.
And there has been an agreement recently reached between ag
labor and ag employers on the framework for a new Federal ag
worker program. This framework contains many of the elements
first proposed by the AWC of which United Fresh is a founding
partner. I urge Congress to act on immigration reform with an
ag guest worker component included as soon as possible.
We in the specialty crop industry are grateful to the
commitment that Congress has made. We believe that the
specialty crop farm bill programs will continue to show results
but only if Congress passes a full reauthorization of the farm
bill.
Again, thank you for the opportunity to testify, and I will
be happy to answer questions.
[The prepared statement of Ms. Frey-Talley follows:]
Prepared Statement of Sarah M. Frey-Talley, President and Chief
Executive Officer, Frey Farms, Keenes, IL
Chairman Scott, Ranking Member Schrader, and Members of the
Subcommittee on Horticulture, thank you for holding this hearing to
focus on specialty crop needs in the upcoming reauthorization of the
farm bill. Thank you also for the opportunity to share my perspective
on these issues.
My name is Sarah Frey-Talley and I am the President and CEO of Frey
Farms. Frey Farms is a multi-state grower of fresh produce and is
headquartered in rural Wayne County, IL. We specialize in growing,
packing, and shipping fresh market produce including cantaloupes,
watermelons, sweet corn and various other fresh market commodities. We
are best known as the nation's top producer of fresh market pumpkins.
Our farms and facilities are strategically located in Florida, Georgia,
Missouri, Arkansas, Indiana, West Virginia, and Illinois.
Frey Farms is a certified woman owned company. Since 1996 we have
grown to meet the demands of our national retail partners by becoming
geographically diverse in our operations and bringing the local farmer
approach to the marketing of specialty crops on a national level. Our
retail partners have recognized Frey Farms as an industry leader in
food safety, sustainability, and as an ethical sourcing partner.
In addition to my role at Frey Farms, I am a member of the United
Fresh Produce Association and serve on United Fresh's Government
Relations Council and Grower Shipper Board. United Fresh is the only
produce trade association that represents all segments of the fresh
fruit and vegetable production chain nationwide. United Fresh and it's
counterparts in the Specialty Crop Farm Bill Alliance (SCFBA), a
coalition of nearly 120 organizations in the specialty crop sector,
undertook a concentrated effort during the 2008 Farm Bill deliberations
to ensure that specialty crops received the dedicated funding and
policy focus this sector deserves. With Congress's support, the 2008
Farm Bill contained nearly $3 billion in specialty crop funding, which
has been used to enhance the competitiveness of specialty crops. I am
glad to provide comments on the issues facing specialty crop providers
today and how Congress can build on the momentum of the 2008 Farm Bill.
As deliberations began in 2012 on the reauthorization of the farm
bill, the SCFBA provided Congress with a set of recommendations on how
to maintain the progress from the 2008 Farm Bill. Key areas of focus
included Block Grants, Specialty Crop Research, trade, nutrition and
pest and plant disease mitigation. The Alliance's 2012 Farm Bill
recommendations acknowledged the difficult budgetary environment that
Congress must contend with and urged that funding for these and related
programs be maintained. In the version of the farm bill that this
Committee passed in July of 2012, much of the Alliance's
recommendations were incorporated, allowing the important work of these
programs to continue.
Unfortunately, in spite of a great deal of hard work by the Members
of this Committee and the Agriculture Committee leadership, the 2012
Farm Bill Reauthorization was not passed and now the work must begin
all over again. While the current farm bill has been extended, the lack
of a formal reauthorization creates a great deal of confusion and
uncertainties among producers who either rely on farm bill programs or
who take farm bill programs into consideration as they make plans for
their operations. United Fresh joined virtually every other sector of
the agriculture in calling for the passage of the 2012 Farm Bill
reauthorization. It was disappointing to see Congress fail to complete
the tremendous amount of work that had already been done to get the
2012 reauthorization to the President's desk for his signature. My
comments will elaborate on some of our sector's farm bill priorities as
well as other challenges facing the produce industry.
Specialty Crop Block Grants
As I mentioned previously, the Specialty Crop Block Grant (SCBG)
program is among the most prominent farm bill program focused on
specialty crops and provides assistance to producers who are seeking to
enhance their ability to be competitive, meet marketplace demands, as
well as consumers' nutritional needs. In the years since the 2008 Farm
Bill, hundreds of projects nationwide, many with areas of focus such as
improving food safety or risk management; have been awarded funds from
this program. The specialty crop industry was pleased with the funding
level of $70 million annually for this program in the House Agriculture
Committee-passed version of the 2012 Farm Bill and urges you to
maintain that level. In addition, there are a few policy changes that
would help the program's effectiveness. Examples of policy improvements
include: Congress should encourage states to further expand or
prioritize grower-level needs, and also ensure that notice of funds
available (NOFA) are released in a timely manner. In addition, the
SCFBA recommends that Congress take action to encourage states to
require applicants to provide appropriate justification for how a
project enhances the competitiveness of specialty crops and include
language to encourage multi-state projects.
Specialty Crop Research Initiative (SCRI)
Another top priority of the specialty crop industry is the
Specialty Crop Research Initiative (SCRI). The work that is done in
SCRI will yield benefits for producers across the country as projects
address challenging issues such as improving production efficiency,
improving crop characteristics, addressing pest and plant disease,
response to food safety hazards and innovation and technology. The
specialty crop industry appreciated the $50 million a year allocated to
this program in the Committee-passed version of the 2012 Farm Bill. In
addition, the Alliance believes that making changes to the program such
as expanding research priorities for specialty crops for crop
characteristics, pest and disease threats, as well as handling and
processing would enhance the effectiveness and integrity of the program
even more. Adjusting the process for reviewing grant applications to
ensure that projects reflect industry priorities would also be
beneficial. As you know, SCRI is one the programs that did not have
mandatory authority or ``baseline'' so when the farm bill was not
reauthorized, only extended, SCRI ran out of funding authority. I'm
sure the Members of this Committee realize that research projects can
take extended periods of time to yield results; they cannot be turned
off and then restarted at some arbitrary time in the future.
Furthermore, the work of the SCRI is work that providers do not have
the resources to do themselves. That is why it is so important to keep
this program and its work going and Congress should address the need
for continuing authority for SCRI.
Nutrition
In addition to these programs, we support specialty crop priorities
in other areas such as nutrition, particularly, the Fresh Fruit and
Vegetable Program (FFVP) which provides a fresh fruit and vegetable
snack to four million low-income schoolchildren across the country. As
the Members of the Subcommittee may be aware, FFVP was recently
evaluated by outside experts and found to be highly effective at
increasing students' fresh fruit and vegetable consumption. We support
the funding of FFVP at $150 million per year. The specialty crop
industry appreciates the Committee's support for this program which
helps kids who might not otherwise have access to fresh fruit and
vegetables get started with healthy eating habits.
Trade
The Committee also supported or closely followed the Alliance's
recommendations on other programs like the Market Access Program (MAP)
which helps to support international marketing opportunities for U.S.
entities. The House Agriculture Committee-passed version of the farm
bill provided $200 million a year for MAP, which is what the Alliance
supports. The work that is done through MAP to develop and expand
international markets has been very useful for the significant number
of specialty crop interests that participate in the program.
Plant Pest and Disease Management
As the Members of the Subcommittee know, the hard work and thorough
planning of a fruit and vegetable provider can be destroyed if his or
her crop is attacked by a plant disease or pest. These threats can
easily spread from state to state and region to region, so a broader
approach to these evolving issues is needed. That is why the specialty
crop industry was particularly pleased to see the full House
Agriculture Committee allocate $71.5 million per year for pest and
disease mitigation, which was an increase over the Senate-passed
version of the 2012 Farm Bill and urge you to maintain that funding
level.
Food Safety
Certainly, reauthorization of the farm bill is a crucial policy
development that the specialty crop industry strongly urges Congress to
pursue and achieve as quickly as possible. However, the lack of a farm
bill reauthorization is definitely not the only policy challenge facing
our industry.
The produce industry is currently addressing implementation of the
Food Safety Modernization Act (FSMA). Two of the five rules for
implementing FSMA have been issued; FDA is receiving comments and has
just extended the comment period for another 120 days; which is a
positive development.
Produce providers realize that a food safety incident can truly
destroy a business. Members of the produce industry have a heightened
sense of awareness with regard to food safety and are committed to
bringing the safest product possible to the consumer. Food Safety is a
critical priority for those involved in the production and handling of
fresh fruits and vegetables and requires a time and monetary
commitment. Quality fruit and vegetable producers such as Frey Farms
have made considerable investments in implementing food safety
practices. Frey Farms employs a Director of Food Safety who manages the
food safety system for all of our operations. In addition, we offer
Food Safety consultation services to our contract growers. Frey Farms
holds Global Food Safety Initiative Certification (GFSI) as the
standard and has third-party audits conducted on all farm and packing
facility operations annually. GFSI certification covers the supply
chain from pre- to post-farm gate production in an integrated supply
chain approach. In 2012 Frey Farms received superior ratings through
GFSI third-party audits at all of our operations and is currently
preparing for and expecting the same results for 2013 growing season.
This level of commitment will be necessary for all produce growers
packers and shippers as FSMA rules are implemented. I, along with the
rest of our industry, have consistently supported strong mandatory,
enforceable, commodity-specific food safety practices based on the best
available science, applicable to both domestic and foreign produce.
However, it is important to take the time necessary to allow for
thoughtful comments and continued careful analysis of the proposed
rules.
Immigration
While the Agriculture Committee may not have formal jurisdiction
over immigration policy, the stability of the specialty crop sector and
the programs that I just described are seriously impacted by our
ability to attract a stable, reliable, skilled workforce. As those of
you on the Subcommittee know, fresh fruit and vegetable providers have
tried repeatedly to attract and retain domestic workers for the very
labor intensive jobs necessary to bring fresh produce to consumers.
However, those efforts are rarely successful in finding domestic
workers who can do the jobs well and will stay on the job. Our
operations are seasonal and although regionally diverse they are
primarily located in very rural areas of the country. Attracting the
appropriate number of domestic workers for short work time-frames is
impossible.
Frey Farms has participated in the H-2A Guest worker program since
2002. While produce providers like Frey Farms have had varying levels
of success with procuring a stable workforce under the current Federal
Ag guest worker program, known as H-2A, far too many providers have
found this program to be too slow, unresponsive, expensive, and laden
with bureaucratic inefficiencies. The produce industry's continued
growth and the creation of domestic jobs such as facility managers,
shipping and receiving clerks, and administration personnel is directly
affected by our ability to obtain a sufficient number of harvest
employees. At a time when over 47 million Americans rely on government
support for nutrition it is incomprehensible that in several states
growers have been forced to walk away from abundant fields and destroy
millions of dollars worth of fresh fruits and vegetables simply because
they could not gain access to an adequate harvest workforce. It is
imperative for Congress to address overdue reform policies affecting
the availability of Ag workers.
There has been an agreement reached between Ag labor and Ag
employers on a framework for a new Federal Ag worker program. This
framework contains many of the elements first proposed by the
Agriculture Workforce Coalition (AWC) of which United Fresh is a
founding partner, along with many other agriculture stakeholders. Like
any policy compromise, this one is definitely not perfect and will need
further refinement. However, on a national basis, it is better than the
status quo and moves us closer toward a reliable, effective program
that provides employers in the Agriculture industry to a stable legal
workforce and upholds worker rights. I urge Congress to act on
immigration reform with a strong Ag guest worker component included as
soon as possible.
We in the specialty crop industry are grateful for the commitment
Congress has made to our industry by supporting programs that promote
specialty crops. Produce providers know that they have to be innovative
and aggressive in pursuing opportunities and we know it is our
responsibility to do everything we can to meet consumers' demands and
needs. The programs directed toward specialty crops in the farm bill
have shown results in helping providers help themselves in being
competitive in the marketplace. We in the industry believe they will
continue to show results, but only if Congress passes a full
reauthorization of the farm bill and addresses the other critical
challenges such as Immigration Reform.
Again, thank you for the opportunity to testify and I am happy to
take questions.
The Chairman. Thank you, ma'am.
Mr. Brim?
STATEMENT OF WILLIAM L. BRIM, PRESIDENT AND OWNER, LEWIS &
TAYLOR FARMS, INC., TIFTON, GA
Mr. Brim. Good morning. Chairman Scott, Ranking Member
Schrader, and other Members of the Subcommittee, thank you for
the opportunity to testify today. My name is Bill Brim. I am
co-owner of Lewis Taylor Farms in Tifton, Georgia. We operate a
diversified specialty crop operation, farming about 5,000 acres
of vegetables with 650,000 square feet of greenhouse operation
and have been using the H-2A program for harvesting and packing
since 1998.
I am an active member of our industry's national trade
association United Fresh Produce Association, and our state
organization, the Georgia Fruit and Vegetable Growers
Association. After several opportunities to pass a new farm
bill over the past 18 months, the hard work of this Committee
and our specialty crop industry seems to have been put on hold
since last fall. I am hopeful that the House Agriculture
Committee begins to make up the new farm bill next month, you
will start where we left off back in last fall.
In my opinion, when this Committee passed the farm bill
back during the summer of 2012, I believe you were validating
how well the 2008 Farm Bill was enhancing the competitiveness
of produce in our industry.
Well, my written testimony addresses a number of farm bill
components. Due to the time limitations, there are three key
elements I would like to mention that are very important to my
farming operation. The sole purpose of the State Block Grants
is to allow the states to identify the needs of the specialty
crop industry and find ways through the Block Grants Program to
increase the competitiveness of specialty crops. Over the life
of the program, USDA reported that 2,500 projects have been
funded. In Georgia, these funds have been very successfully
utilized for education, promotion, research, food safety
consulting, economic studies, pest management practices, and
much more.
In July 2012, Committee versions of the farm bill passed by
this Committee, $70 million per year was approved for the Block
Grant Program. We are encouraged that this Committee fights to
maintain at least that level of funding in the 2013 Farm Bill.
Research: the 2008 Farm Bill included key provisions
creating a Specialty Crop Research Initiative, SCRI, which for
the first time dedicated significant funding to addressing
industry priorities and specialty crop research and extension.
Unfortunately, SCRI did not have mandatory funding in the 2008
Farm Bill, and the extension of the farm bill, the program was
no longer funded. For our industry, successful research
projects have the ability to reduce the future burden on the
Federal Government through increasing production outputs,
improved varieties, developing best management practices, and
increasing product availability to consumers.
Specialty crop producers grow over 50 percent of the food
we eat as Americans, but specialty crop research funding is
nowhere near 50 percent of the funding USDA spends on
agriculture research. Federal investment in research and
extension addressing those challenges has not kept pace with
the dynamic growth and needs of the nation's specialty crop
industry. These investments must be increased and sustained as
mandatory funding in the new farm bill.
Nutrition programs: the investment in Federal nutrition
programs can increase consumption of healthy, nutritious, and
specialty crops. Currently, the Fresh Fruit and Vegetable
Program has proven to be highly successful by providing young
students with the fresh fruit and vegetable snack pack every
day at our schools and increasing that overall consumption of a
wide variety of fresh fruits and vegetables. We support
continued priority on fresh fruits and vegetable programs and
incentives to help low-income families purchase and consume
more fruits and vegetables.
In closing, let me just say while I realize farm labor is
not in the jurisdiction of this Committee, and the purpose of
my testimony is to address the farm bill, if I don't pause to
mention this most pressing problem, I will be doing you and
myself a disservice. If Congress does not address our
immigration and farm labor situation, we won't have to worry
about the specialty crop title in the farm bill in the future.
I encourage Members of this Committee to seriously consider
comprehensive immigration reform for this country. While I have
used the H-2A program for my labor needs for the past 14 years,
the regulations, the red tape, delays, and bogus litigation has
been horrendous. I hope you will give us a better guest worker
program in the near future.
In closing, Mr. Chairman, I ask the Committee to build on
the foundation and investment in the specialty crop industry of
the 2008 Farm Bill and ensure our most important issues are
addressed as you move forward in the development of the 2013
Farm Bill.
Thank you very much, and I will be glad to answer any
questions you have.
[The prepared statement of Mr. Brim follows:]
Prepared Statement of William L. Brim, President and Owner, Lewis &
Taylor Farms, Inc., Tifton, GA
Introduction
Chairman Scott, Ranking Member Schrader, and other Members of the
Subcommittee, thank you for this opportunity to testify before your
Committee. My name is Bill Brim and I am the co-owner of Lewis Taylor
Farms in Tifton, Ga. We are a diversified specialty crop operation,
farming 450 acres of bell pepper, 550 acres of cantaloupes, 2,000 acres
of greens and broccoli, 500 acres of squash and 900 acres of cucumbers,
50 acres of tomatoes, and 350 acres of vegetables crops. We also
produce 185 million vegetable seedlings and 35 million pine tree
seedling in our 650,000 square feet of greenhouse operations. We also
grow 350 acres of cotton and 250 acres of peanuts. I have been using
the H-2A program for our harvest and packing operations since 1998.
I am active in our industry's national trade association to help
bring safe, healthy, affordable and great-tasting fruits and vegetables
to the public. In this capacity I serve as a member of United Fresh
Produce Association's Government Relations Council and will be joining
the United Consolidated Board of Directors in May. United Fresh
represents more than 1,700 growers, packers, shippers, fresh-cut
processors, distributors and marketers of fresh fruits and vegetables
accounting for the vast majority of produce sold in the United States.
I also serve on the Board of the Georgia Fruit and Vegetable Growers
Association and served as President of the association in 1997-98 and
2007-08. Our farm also strongly supports the efforts of the Specialty
Crop Farm Bill Alliance and their 120 organizations that represent the
majority of specialty crops in the United States including fruits,
vegetables, tree-nuts, wine-grape growers, nursery and landscape
companies. This important coalition represents over 350 individual
specialty crops across the United States.
Overview
After several opportunities to pass a new farm bill over the past
18 months, the hard work of this Committee and our specialty crop
industry seemed to have been put on hold. I am hopeful we can start
where we left off back in the fall and move forward with a framework
similar to that passed by this Committee in July of last year. For
specialty crops, the Farm Bill of 2008 and the bill passed by your
Committee last July provided a tremendous investment in our producers
by recognizing the needs and priorities of fruits, vegetables, tree
nuts, nursery and wine grape growers in the United States.
From a produce grower's perspective, we continue to be driven and
experience tremendous challenges in our business environment. We have
worked hard to remain profitable, satisfy consumer demands, conform to
and develop new technology, and compete in an increasingly global
marketplace. Our markets are highly volatile, yet we have never relied
on traditional farm programs to sustain our industry. Instead, we look
to each other to promote efficiency and reward market competition that
so marks our industry.
In passing the farm bill recommendations by this Committee back in
the summer of 2012, I believe you were validating how the 2008 Farm
Bill enhanced the competitiveness of the produce industry. I trust this
Committee will see the benefits our consumers and our farmers are
receiving through your investments in the specialty crop industry. The
following are key elements in the farm bill that I believe are critical
to specialty crop farmers maintaining their competitiveness.
State-Block Grants
One of the key aspects of the 2008 Farm Bill with respect to
specialty crops was the Specialty Crop Block Grant program. As you
know, the sole purpose of this program is to promote the
competitiveness of specialty crops, such as fruits, vegetables, tree
nuts, dried fruits, horticulture and nursery crops. Over the life of
the program, USDA reports that 2,500 projects have been funded that
benefit the specialty crop in all 50 states and the projects have
enhanced all aspects of growing and marketing specialty crops including
research, plant and pest health, food safety and production.
For example, in my State of Georgia, block grant funds were used to
promote Georgia specialty crops at a variety of trade shows across this
country. At one of these trade shows, the growers participating
reported collective new sales the following year at more than $2
million. Funds were also used for research to provide pest management
practices against fruit blotch on watermelons and economic studies of
labor needs of Georgia specialty crop growers. In addition, funds were
used for grower risk management and operations education plus food
safety on-the-farm consultation.
The block grant program was designed to address grower needs at the
state level. In Georgia these funds have been very successfully
utilized to help specialty crop producers improve their operations and
be more competitive and profitable.
In the July 2012 Committee version of the farm bill passed by this
Committee, $70 million per year was approved for the Block Grant
program. We encourage that this Subcommittee fight to maintain at least
that level of funding in the 2013 Farm Bill.
Research
Research serves as both a foundation and a catalyst for growth in
the advancement of any industry. The importance of specialty crop
research was first recognized by the Specialty Crop Competitiveness Act
of 2004. Congress, in this legislation and additional legislation gave
USDA direction: ``Research and extension grants may be made under this
section for the purpose of improving the efficiency, productivity, and
profitability of specialty crop production in the United States.''
Subsequently, the 2008 Farm Bill included key provisions which for
the first time dedicated significant funding to address industry
priorities in specialty crop research and extension. The Specialty Crop
Research Initiative (SCRI) was based on competitive processes, required
stakeholder involvement, and had already had significant impact.
Unfortunately SCRI did not have mandatory funding and with the
`extension' of the 2008 Farm Bill the program is no longer funded.
However, this Committee, in passing a new farm bill has an
opportunity to offer a brighter future to specialty crop growers. For
our industry, successful research projects have the ability to reduce
the future burden on the Federal Government through greater public
access to healthy products, enhanced exports to growing consumer
economies around the world, pest and disease resistant crops, reduced
resource consumption and a variety of other beneficial applications. In
order to offer these benefits and reach these goals, U.S. specialty
crops urgently requires an enhanced commitment to research and
extension activities focused on their priorities. We produce over 50%
of the food we eat as American's but specialty crop research funding is
nowhere near 50% of the funding USDA spends on agricultural research.
U.S. specialty crop producers and processors face mounting
challenges to their economic vitality and long-term viability in a
highly competitive global marketplace: These include high production
input costs, extensive need for hand labor, new invasive pests and
diseases, escalating regulatory demands, and unique domestic and
international market requirements. Federal investment in research and
extension addressing those challenges has not kept pace with the
dynamic growth and needs of the nation's specialty crop industries.
These investments must be increased and sustained in the new farm bill.
Nutrition Programs
The role of investment in Federal nutrition programs cannot be
overstated. This investment in nutrition programs can increase
consumption of specialty crops such as fruits, vegetables, and tree
nuts and benefit the specialty crop industry.
Currently, the Fresh Fruit and Vegetable Program reaches more than
four million low-income elementary school children nation-wide. This
program has proven to be highly successful by providing young students
with a fresh fruit or vegetable snack every day at school and increases
their overall consumption of a wide variety of fresh fruits and
vegetables. This program is a WIN-WIN-WIN for agriculture and the
produce industry, our kids and public health.
We support a strong continued focus in the farm bill on nutrition
programs and increasing access and availability of fruits, vegetables
and tree nuts. In particular, we support continued priority on the
Fresh Fruit and Vegetable Program, Section 32 commodity purchases, the
Department of Defense (DOD) Fresh program for schools, and incentives
to help low-income families purchase and consume more fruits and
vegetables.
Pest and Disease Programs
The liberalization of international trade in agricultural
commodities and commerce coupled with global travel has greatly
increased the number of pathways for the movement and introduction of
foreign, invasive agricultural pests and diseases. Economic damages
from invasive pests and disease now exceeds $120 billion annually.
The specialty crop industry continues to support expedited and
aggressive actions by the Federal Government, in cooperation with the
industry and stake holders at the state and local levels, to eradicate
and protect the domestic market from the increasing threat of exotic
pests and diseases entering the U.S. through international commercial
shipments of products, as well as the importation of agricultural
contraband by vacationing travelers and commercial smugglers.
Section 10201 of the 2008 Farm Bill has provided critical funding
and direction for innovative initiatives to identify and mitigate
offshore threats, and improve pest detection and rapid response in the
U.S., thereby also improving domestic growers' ability to export
product to other countries.
It is vital that the United States maintains its responsibility for
the protection of the nation's food supply, our agricultural economy,
and plant health. Therefore policies established under the 2008 Farm
Bill provide the greatest opportunities for the reduction in risks,
establish a consistent and clear communication structure, and provide
for problem resolution with built-in accountability. We believe
Congress should continue these important programs and build on their
successes over the last 4 years.
International Market Access
U.S. specialty crop growers face significant obstacles in the
development of export markets for their commodities and unique
challenges due to the perishable nature of our products. That is why we
strongly support the continuation of two key programs that address
sanitary and phytosanitary, as well as, marketing barriers to the
export of U.S. specialty crops. Those programs are the Technical
Assistance to Specialty Crops (TASC) and Marketing Access Promotion
(MAP) programs, respectively.
Conservation
Today, United States consumers have affordable access to the most
abundant and diverse food supply in the world. However, for the
specialty crop industry, there continues to be mounting pressures of
decreased availability of crop protection tools that can be used to
provide the abundant and safe food supply the consumer demands. In
turn, environmental regulations continue to put pressure on the
industry's ability to be competitive in a world economy. Because of
these factors, Congress should consider assistance that encourages
producers to invest in natural resource protection measures they might
not have been able to afford without such assistance. Such programs
would include EQIP, CSP, and WHIP.
Labor
While I realize farm labor is not in the jurisdiction of this
Committee, and the purpose of my testimony is to address the needs of
the specialty crop industry as it relates to the farm bill, if I don't
address my most pressing problem I will be doing you and me a
disservice. If Congress does solve our immigration and farm labor
situation you won't have to worry about a specialty crop title in the
farm bill in the future. I encourage Members of this Committee and
other Members of the House to seriously consider the comprehensive
immigration reform that will be introduced very soon. While I have used
the H-2A program for my labor needs for the past fourteen years, the
regulations, red tape, delays and legal services law suits have been
horrendous. I hope you will give us a better guest worker program in
the near future.
Conclusion
Mr. Chairman, I look forward to working with the Committee as you
begin your consideration of the next farm bill. Many of the pressures
that specialty crop producers and my farm face are similar to those of
producers of other commodities--increased regulation, high energy
costs, transportation costs and input costs. However, the perishability
of our crops requires that we take a different strategy and move our
products to market quickly. It is very important that these unique
characteristics be addressed through agricultural policies that drive
domestic consumption, and expand foreign market access while investing
in research, food safety, conservation and pest exclusion policies that
benefit the members of the specialty crops industry.
I ask the Committee to build on the foundation and investment of
the 2008 Farm Bill and ensure that our important issues are
appropriately addressed as you move forward in the development of the
2013 Farm Bill. We certainly recognize the fiscal constrains facing the
Congress, however, the many challenges facing our industry will only
worsen if real and adequate policy reforms are not provided through a
farm bill that appropriately meets the needs of the broad U.S.
agriculture community.
Thank you.
The Chairman. Thank you, Mr. Brim. Mr. Bushue?
STATEMENT OF BARRY BUSHUE, VICE PRESIDENT, AMERICAN FARM BUREAU
FEDERATION; PRESIDENT, OREGON FARM BUREAU FEDERATION, BORING,
OR
Mr. Bushue. Thank you, Chairman Scott, Ranking Member
Schrader, and the Members of the Committee. Thank you for the
opportunity to testify today on behalf of the American Farm
Bureau and Oregon Farm Bureau.
The Farm Bureau is the nation's largest general farm
organization. Today, I will speak to the importance of the farm
bill to specialty crop producers. Specialty crops accounted for
approximately 17 percent of the $391 billion in U.S.
agriculture cash receipts in 2012.
I am a horticultural producer. I grow a variety of
specialty crops, including pumpkins, flowering baskets,
strawberries, and tomatoes for farm-direct, you-pick, and
farmers' markets sales. In Oregon, we are fortunate to grow
more than 240 recognized commodities. In 2011, Oregon ranked
number one in the production of nine new commodities. We were
ranked 2nd, 3rd, or 4th nationwide in ten additional
commodities. Based on the value of production, 22 of the top 40
commodities produced in the state are specialty crops. We are
very proud of what we do and we do it extremely well.
In Oregon, as in other specialty crop states, the industry
appreciates Congress' recent focus on the importance of such
commodities. It is our belief that a strong agricultural
industry depends on a healthy variance of types of commodities
grown, as well as production styles.
The State Block Grants for specialty crops program is
extremely important not only for the specialty crop producers,
but also states that are high in specialty crop production. We
would support expanding the program and the funding for
research for specialty crops, as well as technical assistance
for the United States Department of Agriculture. The Specialty
Crop Block Grant Program provides funding to states to enhance
the competitiveness of specialty crops. The 2008 Farm Bill
provided the $55 million for each year until Fiscal Year 2012.
We would like to see that program expanded in this new bill.
Over the life of the program, USDA reports that 2,500
projects have been funded that benefit the specialty crop
industry in all 50 states. In Oregon, more than $6.5 million
has been distributed for a multitude of programs. These program
funds have been used for outreach and training on Good
Agricultural Practices, GAP, programs aimed at improving food
safety, traceability, and productivity. Several programs that
bring more Oregon-produced fruits and vegetables to Oregon
schools have been implemented as have trade, education, and
marketing opportunities for the Asian market. Last, but
certainly not least, pest and plant disease initiatives and
direct retail opportunities for producers have been
highlighted.
As an industry, we recognize the budgetary constraints
today and tomorrow and that the reauthorization of the current
farm bill is going to be a far different bill than the 2008
legislation. I would urge Congress to pay particular attention
to crop insurance programs, particularly the Stacked Income
Protection Plan, STAX. It is an insurance program that is
designed to provide a fiscally responsible and effective safety
net for program crop farmers and growers of tomatoes, potatoes,
apples, grapes, and sweet corn. It is designed to complement
existing crop insurance programs and does not change any
features of the existing insurance policies. If we can use this
program to cover these five specialty crops, fruit and
vegetable producers in 44 states will benefit.
Oregon serves as a perfect example of STAX protection for
these five specialty crops. All five rank in the state's top 40
production value: potatoes at $179 million, grapes at $80
million, sweet corn at $32 million, apples at $20 million, and
tomatoes at almost $12 million. As an organization, we would
like to cover additional fruits and vegetables under the STAX
program in the future.
Another farm bill program quite popular with our members is
the Farmers' Market Promotion Program. As you probably know, we
have more than tripled the number of farmers' markets in this
country in the last decade. The mission of the program is to
improve and expand domestic farmers' markets, roadside stands,
CSA programs, and agritourism. More than 160 farmers' markets
showcase Oregon's bounty creating a unique connection between
food producers and consumers.
Farm-direct sales include farmers' markets, community-
supported agriculture farm stands, and other direct-to-consumer
sales. Annually, it is estimated that farmers' markets
contribute $50 million to Oregon's farm sales, not least to
tell the story of a vital industry with strong support from the
loyal public whose members continue to grow.
Last, I like to mention the importance of agritourism. In
Oregon, we have countless pumpkin patches, strawberry
festivals, and wine country events. Obviously, the goal of
agritourism is to bring the public to individual operations or
a group of operations for entertainment and opportunity for
sales. There is also another goal, maybe one that can't be
measured, but certainly important, and that is to establish a
lost connection for many with today's farms.
We encourage the House Agriculture Committee to continue
your investment in our specialty crop producers and their
operations. We look forward to working with the Committee on
the development of the next farm bill, hopefully sooner rather
than later. Thank you.
[The prepared statement of Mr. Bushue follows:]
Prepared Statement of Barry Bushue, Vice President, American Farm
Bureau Federation; President, Oregon Farm Bureau Federation, Boring, OR
Chairman Scott and Ranking Member Schrader, thank you for the
opportunity to testify on behalf of the American Farm Bureau Federation
and Oregon Farm Bureau Federation. Farm Bureau is the nation's largest
general farm organization and is the first (and, so far, only)
agricultural organization to offer a comprehensive farm bill proposal
in 2013. I will not cover details of that proposal today, but will
instead hit a few highlights and then focus on our thoughts on the
importance of the farm bill to fruit and vegetable producers. Specialty
crops accounted for approximately 17 percent of the $391 billion in
U.S. agriculture cash receipts in 2012.
I am a horticultural producer. I grow a variety of specialty crops
including pumpkins, flowering baskets, strawberries and tomatoes. In
Oregon, we are fortunate to grow more than 240 commodities. In 2011,
Oregon ranked number one in the production of blackberries,
boysenberries, youngberries, hazelnuts, loganberries, raspberries,
peppermint, Christmas trees and onions. We ranked second, third or
fourth nationwide in snap peas, hops, garlic, pears, blueberries, sweet
cherries, strawberries, green peas, cranberries and wine grapes. Based
on value of production, 22 of the top 40 commodities produced in the
state are specialty crops. We are proud of what we do and we do it
extremely well.
In Oregon, as in other specialty crop states, the industry
appreciates Congress' recent focus on the importance of such
commodities. It is our belief that a strong agriculture industry
depends on a healthy variance on types of commodities grown as well as
production styles.
The Specialty Crop Block Grant Program helps to achieve that goal.
In Oregon, more than $6.5 million has been distributed for a multitude
of programs between FY 2009 and FY 2012. These program funds have been
used for outreach and training on Good Agriculture Practices (GAP),
programs aimed at improving food safety, traceability and productivity.
Several programs that bring more Oregon-produced fruits and vegetables
to Oregon schools have been implemented as have trade, education and
marketing opportunities for the Asian market. Last, but certainly not
least, pest and plant disease initiatives and direct retail
opportunities for producers have been highlighted.
A thriving agricultural economy benefits all Americans, and depends
on a sound farm bill. The farm bill helps farmers and ranchers deal
with the risks that threaten their ability to produce the food, fiber
and fuel we all need. As the Agriculture Committees in Congress begin
to draft a 2013 Farm Bill against a backdrop of decreasing government
funding, Farm Bureau has put forward a farm bill proposal that is
financially responsible, provides a measure of equity across crop
sectors and helps farmers and ranchers deal with the weather and market
risks they face.
American Farm Bureau Federation policy supports strengthening crop
insurance and offering farmers a choice of program options to complete
their ``safety net.'' In addition, AFBF supports providing programs
that encourage farmers to follow market signals rather than make
planting decisions based on government payments. Farm Bureau also
supports extending some of the programs generally ``reserved'' for farm
program commodities to producers of fruits and vegetables.
We developed a proposal recognizing the budgetary environment of
today and tomorrow. Agriculture has been singled out by numerous
Congressional leaders. Whether we like it or not, Congress is sending a
clear message that the Federal dollars that were there in the past are
simply not going to be there tomorrow. Farmers should not expect to
receive the same level of support as they have--even as recently as 3
or 4 years ago. Our proposal recognizes that fact and makes every
effort to try to use the limited resources we have available in the
best way possible.
Farm Bureau is a general farm organization. Individual commodity
groups are obviously able to push for their own crop's interest. Farm
Bureau stretches across all of agriculture, and providing significantly
higher benefits to one crop would mean that other crops would be forced
to take a larger hit. We worked diligently to spend scarce dollars
wisely and to treat farmers of various crops equitably.
The top-level recommendations included in Farm Bureau's proposal
are:
b Support the lower Senate budget reduction number of $23 billion;
b Structure the farm bill proposal to achieve this level of cost
reduction and, if funding is further reduced, to
proportionately reduce the safety net programs as necessary
(rather than require a total rewrite);
b Allow program crop producers to choose either a Stacked Income
Protection Plan (STAX) or a target price program, on top of
participation in crop insurance and marketing loans, as the
three legs of a safety net;
b Establish a STAX program for all program commodities, as well as
for apples, potatoes, tomatoes, grapes and sweet corn; and
b Provide a target price program for all program commodities, with
the exception of cotton.
The Stacked Income Protection Plan (STAX) is an insurance product
designed to provide a fiscally responsible and effective safety net for
program crop farmers and growers of tomatoes, potatoes, apples, grapes
and sweet corn. The program would be administered by USDA's Risk
Management Agency in a manner consistent with the current crop
insurance delivery system. It is designed to complement existing crop
insurance programs. It does not change any features of existing
insurance policies. If we can use STAX to cover these five specialty
crops, fruit and vegetable producers in 44 states will benefit. The
five crops were selected based on the following criteria:
a. Crop insurance is currently available for the crop;
b. The crop ranks in the top 13 in value of production for the
country and represents at least two percent of the country's
value of production; and
c. The crops are all grown in at least 13 states.
We would like to cover additional fruits and vegetables under the
STAX program in the future.
The STAX plan addresses revenue losses on an area-wide basis, with
a county being the designated area of coverage. In counties lacking
sufficient data, larger geographical areas such as county groupings may
be necessary to preserve the integrity of the program. The ``stacked''
feature of the program implies that the coverage would sit on top of
the producer's individual crop insurance product.
The 2008 Farm Bill was the first farm bill that included a title
devoted exclusively to our sector.
Specialty crops are defined as fruits and vegetables, tree nuts,
dried fruits, horticulture and nursery crops, and floriculture. This
level of productivity was accomplished on only about two percent of the
country's crop acres.
Our other farm bill priorities that specifically relate to fruit
and vegetable production include:
b Reauthorize and fund with mandatory money the four expired disaster
programs. This includes the (a) Livestock Indemnity Program
(LIP), (b) Livestock Forage Program (LFP), (c) Emergency
Assistance for Livestock, Honey Bees and Farm-Raised Fish
Program (ELAP), and (d) Tree Assistance Program (TAP). Due to
Colony Collapse Disorder (CCD), many beekeepers have suffered
significant losses in recent years. ELAP covers producers of
aquaculture, bees, and other species. ELAP provides funds for
losses that are not covered by other disaster programs, and
USDA reports it has paid out $31 million from program
inception. It has provided substantial assistance to beekeepers
whose bees have suffered from CCD;
b TAP is equally important and provides assistance for tree death
losses. Nationwide, TAP has paid nearly $14 million from
program inception. TAP and ELAP often provide assistance to
producers who may not have access to Federal crop insurance,
and are critical in this era of widely varying weather events.
The four disaster programs expired on Sept. 30, 2011 and
permanent mandatory funding, as well as funding for 2011 and
2012 is critical;
b Mandate additional studies on insuring specialty crop producers for
food safety and contamination-related losses;
b Improve the Noninsured Assistance Program (NAP). Currently,
producers must suffer at least a 50 percent crop loss or be
prevented from planting more than 35 percent of intended
acreage to collect. For losses above those thresholds, a
producer receives 55 percent of the average market price for
the commodity. Allow additional coverage at 50 to 65 percent of
established yield and 100 percent of average market price.
Producers would pay a premium for such coverage;
b Oppose additional payment limits and means testing on any crop
insurance programs. This is likely to hit specialty crop
producers especially hard since they are often producers of
high-value crops;
b Oppose linking conservation compliance with crop insurance
programs. Fruit and vegetable producers have little to no
experience dealing with conservation compliance. Compliance
with wetlands issues can be especially problematic; and
b Expand the State Block Grants for Specialty Crops program and
funding for research for specialty crops as well as technical
assistance at USDA. The Specialty Crop Block Grant Program
provides funding to states to enhance the competiveness of
specialty crops. Each of the fifty states are eligible to apply
for these grant funds from USDA and receives the higher value
of $100,000 or \1/3\ of one percent of the total amount of
funding made available for that fiscal year. The 2008 Farm Bill
provided the $55 million for each year until FY 2012. We would
like to see the program expanded in this bill. The sole purpose
of this program is to promote the competitiveness of specialty
crops. Over the life of the program, USDA reports that 2,500
projects have been funded that benefit the specialty crop in
all 50 states and the projects have enhanced all aspects of
growing and marketing specialty crops including research, plant
and pest health, food safety and production.
b Another farm bill program quite popular with our members is the
Farmers' Market Promotion Program (FMPP). As you may know, we
have more than tripled the number of farmers markets in this
country in the last decade. The mission of the program is to
improve and expand domestic farmers' markets, roadside stands,
community-supported agriculture programs, agritourism
activities, and other direct producer-to-consumer market
opportunities.
b For the specialty crop industry, there continues to be mounting
pressures of decreased availability of crop protection tools
that can be used to provide the abundant and safe food supply
the consumer demands. In turn, environmental regulations
continue to put pressure on the industry's ability to be
competitive in a world economy. Because of these factors,
Congress should consider assistance that encourages producers
to invest in natural resource protection measures they might
not have been able to afford without such assistance. These
programs would include the Environmental Quality Incentives
Program (EQIP) and the Conservation Stewardship Program (CSP).
b We are also very supportive of Section 32 distributions. Funds are
used to encourage domestic consumption of non-price supported
perishable commodities and to re-establish farmers' purchasing
power through a variety of activities, including purchases of
commodities and removal of surplus commodities from the
marketplace for distribution to Federal nutrition assistance
programs such as the National School Lunch Program. When
specific commodities are hit hard, this program can immediately
relieve some of the pain. According to USDA, they have made
Section 32 specialty crop purchases of about $400 million per
year since the 2008 Farm Bill.
We encourage the House Agriculture Committee to continue to invest
in our specialty crop producers. This can be accomplished by mandating
the availability of a STAX program for some specialty crop producers
and watching for every opportunity to expand that program over the next
few years, providing additional specialty crop block grant funding,
improving our Farmers Market Nutrition Program and expanding the Fresh
Fruit and Vegetable Snack Program. We look forward to working with the
Committee on the development of the next farm bill.
We recognize the fiscal constraints facing Congress and the
Committee, but the many challenges facing our industry will only worsen
if real and adequate policy reforms are not provided through a farm
bill that appropriately meets the needs of agriculture.
The Chairman. Thank you, Mr. Bushue.
The chair would like to remind Members that they will be
recognized for questioning in order of seniority for Members
who were here at the start of the hearing. After that, Members
will be recognized in order of arrival. We certainly appreciate
your understanding.
This first question I have is for the panel. As many of you
are aware, the last several years there have been advancements
in food safety, pest management, and pesticide use through the
Specialty Crop Research Initiative. Have any of you worked with
your respectively land-grant universities in regard to the
specialty crop research, and how would you rate the
effectiveness of these research programs?
Mr. Brim. Yes, Congressman. I have worked with the
University of Georgia. We probably have as many protocol test
plots on my farm from herbicides to insecticides to all
different type of research on disease, all different type of
diseases. We probably have as many experimental plots on my
farm as the experiment station does in Tipton, so we work
really close with them. We think this is one of the most
important issues for our colleges to sustain the research that
we need to help further our ability to make a prosperous crop.
The Chairman. Would anybody else like to comment on that?
Ms. Frey-Talley. Our company, Frey Farms, we enjoy the
benefits of that research through Purdue and also the
University of Illinois in the work that they do there with pest
and plant disease mitigation on fresh market pumpkins.
The Chairman. Thank you, ma'am.
Mr. Bushue. Many of our members work directly with our
research extension service in Aurora, Oregon, which specializes
in specialty crops and horticulture, and we have a very active
engagement with our land-grant through that process, and many
of our growers have plots on their own farms nearby. It has
been very successful and very important to Oregon's
agriculture.
The Chairman. Thank you. Mr. Brim, it is my understanding
that Fresh Fruit and Vegetable Program has worked well in
Georgia since 2008. Under the Committee's farm bill last year,
the program expanded to all forms of fruits and vegetables. Can
you just give us a brief explanation of the impacts that that
change has from the standpoint of the policy that would be
carried out?
Mr. Brim. Yes, sir. As you mentioned, the Fresh Fruit and
Vegetable Program has been very effective in the State of
Georgia. This has definitely increased the kids' fruits and
vegetable consumption, introducing them to a wide variety of
fresh fruits and vegetables that they can eat at school, as
well as at home. Once they develop those tastes, they will go
home and start having fruits and vegetables at home as well.
As a grower, this program has been very important to me
because of the many fresh fruits and vegetables that schools
typically serve in the programs, as we all know, they are
through the canned fruits and vegetables and frozen. They are
spending about $400 million on the actual buying of the cans,
fruits, and fresh/frozen, and $150 million just for the fresh
fruit, which is about three percent of the budget of the
Agriculture Committee in the farm bill.
So we grow cantaloupes, green peppers, and broccoli,
cucumbers, tomatoes are now available in all of these Georgia
schools.
To your question, the impact of last year's policy decision
was significantly undermined in the integrity of the program
for broadly expanding the program to fruit and vegetables that
already received considerable access to schools through the
Section 32 Program. As you are aware, Specialty Crop Farm Bill
Alliance, which includes the Georgia Fruit and Vegetable
Growers Association, sent a letter in December to the
leadership of the House and Senate Agriculture Committees
urging that the farm bill to insert the original language on
the program from the 2002 Farm Bill regarding commodity
eligibility for the FFVP. I strongly support these efforts and
urge the Committee to move forward in this way.
The Chairman. Thank you. I now recognize the Ranking
Member, Mr. Schrader, for 5 minutes.
Mr. Schrader. Thank you, Mr. Chairman. I appreciate it.
Ms. Frey-Talley, you talked about the Market Access Program
and, as you know, the exports seem to be of increasing
importance. Could you talk a little bit about the importance of
helping small farming cooperatives, small farming families
reach worldwide with their products through the Market Access
Program?
Ms. Frey-Talley. Well, obviously, that is what MAP was
originally intended to do. Our company does not participate in
that program, but I know that through that program, several
citrus growers have benefited greatly by being able to export
their products. And I know in the State of Florida, that has
been very beneficial to numerous growers. And it has also been,
as you suggested, very advantageous for smaller farming
operations and allowing them to be able to make their products
available on a global level.
Mr. Schrader. Yes, a lot of farming operations are not all
big agribusinesses, particularly in specialty crop areas. It is
really important for us to be able to get our produce out
there, and this is one program that works.
Mr. Brim, could you talk a little bit about making SCRI
mandatory, how important that is in the farm bill?
Mr. Brim. Well, yes, sir. It is very important to us and of
course to our universities where we have applied research. And
like I talked about a while ago on our farms, it is very
important for us to have this funding available to them for us
to be able to have the specialty crops that we need in our
particular areas to be able to use this funding and through
SCRI.
Mr. Schrader. And Mr. Bushue, could you elaborate a little
bit about the STAX program and the problem with a lot of the
insurance programs. We don't get direct payments, and a lot of
the insurance programs don't really fit our needs because many
farms have multiple crops on them at any one time. Can you talk
a little bit about the need? I know there are some amendments
out there to modify NAP a little bit that would help, but could
you talk about the STAX program just a little bit more?
Mr. Bushue. Yes, it is designed to basically complement the
current insurance programs for those crops. We chose those five
hoping to expand those of course in the future. We chose those
five because of the diversity of them, the breadth and depth
that they cover across the United States. Also, they are grown
in at least 13 states and they rank in, I believe, the top two
percent of production for those particular crops. We just think
it would be an ideal opportunity as a starting place if you
will to maybe make a pilot-type program to offset some of the
loss and some of the tragedies that happened on farms,
especially in specialty crop industry where a loss can be
significant.
If I could take the liberty and comment on your
agribusiness, a large farm is generally something that is an
acre bigger than yours.
Mr. Schrader. Well said. A follow up, if I may, on
immigration. Every one of you has indicated some interest in
the immigration bill. I know the Chairman and I are very
interested in making sure that whatever bill comes out works
for our agricultural producers and our agricultural workers.
Each way has been problematic, as you testified to. Perhaps,
starting with Mr. Bushue, give us a quick comment, give us your
opinion, on how the Gang of 8 immigration draft seems to shape
up for American agriculture?
Mr. Bushue. The Farm Bureau certainly shares the interest
of the other two panelists today with the need for dramatic and
comprehensive reform on immigration. It is critical to the
agricultural industry. The Farm Bureau has been working very
closely with the folks on the Hill both in the Senate and in
the House hoping for some kind of solution soon, and we would
encourage Members of this Committee to work with anybody that
they can to make that happen as soon as it possibly can. Thank
you.
Mr. Schrader. Mr. Brim?
Mr. Brim. I think that agriculture is more unified right
now in the need to have something done about immigration from
the Southeast to Oregon to New York State. I mean it is vital
that we get something done about immigration. We have gone
through so many years. I have been in the H-2A program for 14
years and it is just vital to us now for us to even be able to
grow in our businesses, to develop our businesses and know
where this new program is going to go. I think that we have an
opportunity now to finally get something done, and we don't
need to stop with it now. We need to go ahead and proceed and
have something pass to help us with our immigration.
And the Gang of 8 bill is a good bill. There are some good
things in it; there are some bad things in it. I think there
are a lot of things that we can rework, but overall, we are all
united and we just need something done.
Mr. Schrader. Ms. Frey-Talley, real quick?
Ms. Frey-Talley. Yes. I think this is a critical point in
our industry and the work that the AWC has done bringing all
the different sections and groups in agriculture together to
reach an agreement for the framework for ag business and labor
to come together I think it is just a really incredible and
pivotal moment, and I would encourage Members of Congress to
understand the need that we have and how crucial it is.
Especially at a time when over 47 million Americans receive
some type of government nutritional support, growers are forced
to walk away in certain instances and in states from abundant
fields simply because they can't get access to an adequate
harvest labor force. So, they end up just giving up millions of
dollars worth of fruits and vegetables.
Mr. Schrader. Thank you very much.
The Chairman. Thank you.
Mr. Schrader. I yield back. Thank you, Mr. Chairman.
The Chairman. Thank you, Ms. Frey-Talley. And ladies and
gentlemen, I now recognize to Mr. Denham.
Mr. Denham. Thank you. In California in the Salinas Valley
and Central Valley we have been hit with a huge amount of food
safety concerns over the last decade or so. I am sure that you
are all concerned about the pending implementation of the Food
Safety Modernization Act, which looks like it will treat
strawberries the same as walnuts or citrus. And recently, a
district court in California announced that it had found that
FDA had unreasonably delayed implementation of food safety
regulation and has ordered the FDA to agree to an
implementation timetable with an activist group by May 20. Do
you believe that it would be appropriate considering the
complexity of the issue involving the FDA to rush through these
regulations? If you could each talk about food safety, Mr.
Bushue?
Mr. Bushue. Any time you have a broad-based regulation that
deals with food safety, you are going to come across some
problems, and you have already allocated to some of them. I
don't think we ought to rush into any program, and the Food
Safety Modernization Act, like most bills, is not perfect, but
I think there needs to be time spent doing it correctly so that
we don't have the problems with strawberries that we do have
with treating them the same as tree fruit.
Mr. Denham. Mr. Brim?
Mr. Brim. Yes, I think food safety issue is very important.
I think FDA's position right now is too quick. We can't
implement this FDA rule by the 6th. I think a term for
terminating and re-looking at the whole bill would be advised.
We as farmers, we try our best and do everything we possibly
can food safety-wise already, so let's get it right when we do
it. Let's don't hurry into anything. And we certainly, as
farmers, don't want to hurt anybody, don't want anybody sick.
So we do everything we possibly can right now with food safety.
So, as I say, let's get it right before we terminate.
Mr. Denham. Thank you. Ms. Frey-Talley?
Ms. Frey-Talley. Well, I, along with the rest of our
industry, have consistently supported strong, mandatory,
enforceable commodity-specific food safety practices based on
the best available science applicable to both domestic and
foreign produce. Having said that, I believe that it is very
important to take the time necessary to allow for thoughtful
comments on the proposed rules and allow the continued careful
analysis of those rules.
Mr. Denham. Thank you. And on the chemical side of things,
pesticides, herbicides, what are the challenges facing each of
you regarding access to fumigants for crops now that methyl
bromide has been phased out and now that sulfuryl fluoride is
being proposed as well? What are the other options? What are
your concerns? What do you think could be next?
Mr. Bushue. Certainly access to crop protection products,
including the fumigants you have mentioned, are critical to
specialty crop producers. Over the years, we have seen a
decline in the number of products available to small crops
because of the cost of implementation through FIFRA and the
EPA. We recognize that those products are critical to our
production needs. The lack of any kind of a usable, safe
fumigant creates a lot of problems for rotational issues and
especially the kind of crops that we raise on a fairly intense
basis. So we would encourage anything this Committee could do
to work through EPA to make those things happen on a much
quicker level.
Mr. Denham. Thank you. Mr. Brim?
Mr. Brim. I think there is an opportunity right now for you
and our Congress to do something about the handling of the way
EPA has handled their chemistries that they are trying to get
into process. We need to be able to have new chemistries coming
out on a regular basis because we have restrictions on
resistance management. Where you are managing your chemicals in
your products is a great tool. Some people don't manage their
chemicals and their products like they should so we get
resistances to these chemicals and they are not doing us any
good. So we need some help to alleviate and be able to return
some of these chemistries that will be available to us that we
can use.
Mr. Denham. Thank you. And Ms. Frey-Talley, my time is
getting short, but let me just ask one other quick question. On
crop insurance we face some unique challenges in California
primarily because we are a specialty crop state. You know, crop
insurance doesn't seem to provide a good risk management tool
for specialty crops. Can you comment on that?
Ms. Frey-Talley. Yes. There is no crop insurance available
to our company for the commodities that we grow. They are
really outside disaster policies for hail and such. So our
company, we participate in the NAP program. And as I am sure
all of you are aware, that program, I would say that in the
event of a complete crop loss, it is a beneficial program to
participate in, but it is not as effective as some type of
private insurance obviously would be for the fruits and
vegetables that we grow.
Mr. Denham. Thank you, ma'am.
The Chairman. I now recognize the gentlelady from New
Hampshire, Ms. Kuster.
Ms. Kuster. Thank you very much, Mr. Chairman. And thank
you for hosting this hearing. Thank you all for coming.
I had an ag roundtable in my district in western New
Hampshire on Monday and we had a great deal of this type of
discussion. It was very informative for a new Member coming
right before markup.
I want to continue, Ms. Frey-Talley, with the conversation
you were just having on insurance. What would you recommend for
insurance products that would be useful to the specialty crop
industry? We have a lot of orchards, berries, local fruits and
vegetables for farmers' markets and school programs. I am
curious how you would structure insurance products if you could
rewrite them.
Ms. Frey-Talley. Well, I think that it would certainly be
commodity-specific. I don't think it would be like a one-size-
fits-all. But with the help of United, I would be happy to get
back with you on our suggestions on what the framework would
look like for overhauling that.
Ms. Kuster. Do the other witnesses have any recommendations
on specialty crop insurance?
Mr. Brim. Yes, ma'am. On CAT coverage and NAP coverage for
me it is just ineffective. I would say something on a risk-
based arrangement where you could at least recover your cost,
not a profit but just a cost effect so we at least wouldn't
lose our farms because of a catastrophe. And a risk-based I
think would work fine for that.
Ms. Kuster. Mr. Bushue?
Mr. Bushue. I would agree with Mr. Brim. Certainly, most of
the current insurance products do not work for me on my farm
and a risk-management base would be much better, similar to the
STAX program that I talked about earlier. We think that would
be absolutely effective, but it does need to be crop-specific.
Ms. Kuster. Thank you. I will now turn to other programs
mentioned, briefly, by each of you, such as school lunches and
farmers' markets. Could you comment on how we can encourage
that growth in specialty crops and open up those markets
further? Are there specific elements? I know, for example, the
farmers talked about the EBT cards at the farmers' markets. Are
there other types of programs that would be helpful to expand
your markets? And Mr. Brim, if you would like to start.
Mr. Brim. I think there is a great opportunity out there to
expand the school lunch programs and the Fresh Fruit and
Vegetable Snack Program to all the schools and not just have it
just at a morning session but in an afternoon session before
they go home. Just adding funding and being available funding
for this new program would be a benefit to all of us.
Ms. Kuster. And healthier for the kids as well.
Mr. Brim. That is right.
Ms. Kuster. Absolutely.
Mr. Brim. And take away some of obesity maybe.
Ms. Kuster. Well, we hope. Thank you. And definitely can
make a big difference.
Mr. Brim. That is right.
Ms. Kuster. Finally, the comments about immigration. What
would you recommend to change for the immigration program? You
have talked about making sure you have a reliable workforce.
Are there specific elements we should be looking for as the
immigration bill comes forward? And, Ms. Frey-Talley, if you
would like to start.
Ms. Frey-Talley. I think a very strong ag guest worker
program is critical to any type of comprehensive immigration
reform bill. And like I had mentioned, the AWC has outlined and
reached an agreement for those best practices. And in the
current bill that the Senate has, we support that framework and
we think that that is a workable solution for ag.
Ms. Kuster. Okay. And the other two witnesses, do you
agree?
Mr. Brim. Yes, ma'am. I would think, though, that the Gang
of 8 that put the labor bill together, their proposals are
good. There is still some tweaking the needs to be done but
moving the program to a 3 year visa was a good thing, taking
away the 50 percent rule. In my district, I get calls all the
time because I am so active from farmers, and they think that
they haven't been able to effectively get the wage rate right,
and that is another problem.
Ms. Kuster. Okay.
Mr. Brim. But overall, I think the cap on the visas at
112,000 we feel like it is too low for the 1st year and
especially for the third year. Once these blue card holders
leave agriculture and we have to go back to the H-2A program or
some kind of contractual program. And the other thing in
mediation that is a nonbinding agreement with legal services, I
mean if we are going to have a mediation, then it should be
binding.
Ms. Kuster. Right.
Mr. Brim. Why should we have to go after we have mediated
and they have agreed to a mediation, and then they will take us
to court and we have to spend another $\1/2\ million on
something that we didn't do wrong? And it is just horrendous I
think.
The Chairman. The gentlelady's time has expired.
Ms. Kuster. Thank you so much.
The Chairman. I am now going to recognize the gentleman
from New York for 5 minutes.
Mr. Collins. Thank you, Mr. Chairman. I want to thank the
witnesses. It is interesting in New York sometimes we don't
think about agriculture. I have the western part of New York,
which is one of the most agricultural districts. New York has
recently become the number one yogurt producer in the United
States, so clearly dairy is a very big part of what I have. But
also specialty crops, sometimes people don't realize because of
our unique climate and where we are surrounded by the Great
Lakes, when it comes to apples, peaches, grapes, cabbage,
potatoes, we are some of the largest producers.
So what I would just simply state is my farmers concur with
everything you have said and certainly, Ms. Frey-Talley, the
specialty farmers agree. When I put together my agricultural
roundtable, I said what is it we should be doing here on the
Agriculture Committee? And they said number one, we just need a
farm bill. We need to know what we are going to be facing the
next 5 years. We can't continue to go with uncertainty. So they
asked, number one, pass the bill so we know what the rules are.
Number two, obviously, immigration reform. You have to milk
cows 24 hours a day, sometimes twice a day, sometimes three
times a day so a guest worker program, as we have now in dairy,
doesn't work, but then the specialty crop farmers reminded me
from the processing plant standpoint again it is 12 months a
year; it is not 10 months a year. So you have confirmed much of
the same thing that we have been hearing.
The other thing they mentioned again was on the specialty
crop research. We do have a land-grant university, Cornell,
very well known, and when it comes to peaches and apples and
some of the issues, what my farmers have said is on their own
they can't afford it but the research that they get and the
benefit from Cornell not only benefits them but others.
So I guess, a lot of the questions I had have been
answered, but the other thing I am hearing is trade barriers,
about grapes turned into wine. We have a lot of vineyards under
Lake Ontario and they can't export their wine certainly into
Canada because there are trade barriers in getting into Canada
where we have our markets open and they don't, and I have
talked to the Canadian trade officials about that. But I am
curious more on the export side as a question, Ms. Frey-Talley
and others. Do you export? Do you see barriers? I mean the
biggest one I hear about on the wines is Canada, but on the
export part, if we are going to grow our economy.
And also I would like your comments on whether the lack of
a farm bill may be stifling the growth of your farm or
investment as you are waiting to see what the new rules are
going to be?
Ms. Frey-Talley. We do not currently export any of the
products that we grow, pack, or ship. Maybe Mr. Brim could
elaborate.
Mr. Brim. We do export some of our vegetables to the
Caribbean islands but not a whole lot. With the Canadians we
export to Canada, I guess that is a different country as well,
so we do do that one, too. But we find that it is difficult,
and once our product gets across the line, then we are
defenseless in what they do with that product. And so we have
problems with rejections that are really bad because of not
being able to bring them back into the United States after they
go into Mexico or into Canada. So it has created a problem and
it ties our hands a little bit on what we can do with our
product as well.
Mr. Bushue. I don't export directly but certainly Oregon is
a huge exporter of specialty crops and other crops, and
American Farm Bureau is actively engaged in the trade markets.
We recognize that for the agricultural economy, we are going to
have to open up more and more markets, and we look forward to
the passage of more and more multilateral, bilateral trade
agreements like TPP, et cetera, and we would support that.
Thank you.
Mr. Collins. Mr. Bushue, would you say also that the lack
of a farm bill like this past Congress has held back expansion
or growth? Have you heard those kind of comments from your
members?
Mr. Bushue. I think it is the concept of not knowing where
we are going as critical right now. And certainly, whether or
not I could point to individual examples on my farm, how it has
impacted me, that becomes more of a challenge. But to the
industry as a whole, without that future security knowing where
we are going, obviously, it is going to impact negatively our
economy and our ability to trade certainly.
Mr. Collins. Yes. Thank you very much, Mr. Chairman. I
yield back.
The Chairman. Thank you. I now recognize the gentleman from
California for 5 minutes.
Mr. Vargas. Mr. Chairman, thank you very much. And thank
you very much for holding this hearing. I also want to thank
the panel.
I represent San Diego County, California, and also Imperial
County. Of course, Imperial County you may be familiar with.
There are lots of specialty crops there. It is a fantastic
growing area. I am in contact with a lot of the farmers there.
I asked them if there was one thing you could fix, what would
it be? They all said immigration. Immigration. They also said
the insurance policies don't work for them either, but
immigration is the biggest issue. And I appreciate all of your
testimony here today about it.
I want to ask you a little bit more about comprehensive
immigration reform. I think on the Democratic side, we are
ready to go. We want to do something. I come from a little
different perspective, from a religious perspective on the
issue. Certainly, it is very clearly in the Torah and
throughout the Old Testament and the New Testament, so I am
coming at it from a little different perspective, than from
pure commerce.
I hear now that there is this notion of radicalized
immigrants. Have you seen any of those guys out there on your
farms?
Mr. Brim. No, sir, I have not. We do have some problems on
our farms----
Mr. Vargas. Yes.
Mr. Brim.--but it is not from terrorism, I assure you.
Mr. Vargas. Okay. So it is not from immigrants--terrorizing
anything?
Mr. Brim. No, sir.
Mr. Vargas. Okay. Can you comment a little bit more about
the immigration? You have commented about the guest worker
program. One of the things that growers mentioned a lot of time
is that there are a number of employees that are long-time
employees. These are people that have been employed for a long
time, not guest workers, who they suspect might have an issue
with immigration.
Mr. Brim. Well, we have been doing the H-2A program since
1998, and we have the same people coming back each year, year
after year. And like the Congressman a while ago said from New
York, we are a 12 month business. We can't do it 10 months and
stop. And all of our employees, they keep coming back so they
are well-trained employees. We don't have to re-recruit and
retrain each year. So that is very different, but we think that
the H-2A program is very cumbersome----
Mr. Vargas. Yes.
Mr. Brim.--and it is litigious but because we have the
people coming back each year, and so that allows us to have a
trained workforce because our domestic people in the United
States will not do it.
Mr. Vargas. Perhaps, California maybe is a little bit
different. In the Central Valley, there are a lot of people
that work in the fields that are undocumented, and they are not
seasonal. They live there. Supposedly, those would be some of
the people that would be able to gain legal status in this
country. Is that the case anywhere else? I know in California
it is for a fact.
Mr. Brim. We have illegals in Georgia as well. I mean
probably there are about 18 growers in the State of Georgia
that do H-2A program, so the balance of the program is based
off of illegal workers or domestic workers as well. But trying
to find domestic workers, we don't have any other
opportunities. Domestic workers will not work on our farms.
Because I am mandated to hire, I hired 1,650 domestic workers
in January through July. The end of July, do you know how many
I had? None.
Mr. Vargas. I am not surprised. It happens in California
all the time. I worked on workers' comp there for 2 years as a
Chairman of the Insurance Committee. He asks me one day, ``Do
you know how many people on my farm are illegal?'' And I said,
``How many?'' He said all of them except for the general
manager because I can't get anybody else to work. It is hard
work. I am not surprised. Maybe I should be but I am not.
I am hoping that through this legislative process you will
become active working with the wonderful gentlemen on the other
side of the aisle. They may need convincing that this is
something we ought to do. I think there is a great need.
Mr. Brim. There is definitely a need for the four of us to
have a new immigration policy. When Georgia passed their H.B.
87 Bill, which destroyed our illegal portion that cost us as an
ag community about $140 million.
Mr. Vargas. Yes.
Mr. Brim. So we definitely need some new regulations to be
able to----
Mr. Vargas. Well, God bless you. And I thank you.
The Chairman. The chair would remind people we recognize
immigration is an extremely critical issue, and I know most of
the Members here have asked the question that revolves around
immigration, and you alluded to it in your opening statements
as well. That is the jurisdiction of the Judiciary Committee,
and so we are here to review horticultural priorities. We
recognize that it is a key issue, but we want to focus on what
we can do for horticulture actually in the farm bill. And
again, I know most of the Members have asked a question that
revolves around immigration.
So with that, I recognize the gentleman from Florida.
Mr. Yoho. Thank you, Mr. Chairman. I appreciate it. And I
appreciate you guys coming up here and talking. I been
associated with agriculture since I was 16. I am a large animal
veterinarian by trade and have practiced the last 30 years. I
made my living on the south end of a northbound horse or cow,
which was the fertilizer for your plants. Most of my questions
have been answered today, and I appreciate you guys coming up
here.
And what I hear over and over again, it is the uncertainty
that comes out of Congress or Washington that creates an
environment of instability that we can't bank on, and we have
to fix that. And I appreciate the input you have. I did have a
question on immigration but I will pass that on.
Ms. Frey-Talley, you were talking about the block grants.
What can we do to adjust them to make the block grants more
effective in your opinion?
Ms. Frey-Talley. The SCFBA has offered several suggestions
for doing that. For example, we would like to see more
timeliness in the announcement of funds being available to
ensure that states had plenty of time to review their requests
and states could pursue more grower-level projects that address
grower needs, strengthening the definition of what enhances
competitiveness of specialty crops to lower the risk of
potentially controversial projects, which would undermine the
viability of the program.
And the SCFBA would also like to see greater consideration
of multi-state projects, which have been a fraction of the
projects awarded. In our operations, obviously at Frey Farms,
we operate in several different states, but I mean we are
growing the same commodity----
Mr. Yoho. Right.
Ms. Frey-Talley.--throughout those different growing
regions. So often the specialty crop industry faces challenges
that affect an entire commodity or an entire region. So the
coordination that would come from states more often working
together to develop projects would serve producers well.
Mr. Yoho. We have a great example of that with citrus
greening. As you well know, in Florida how it has cut our
production down about 50 percent and it extends all the way
over to California. So we have met with APHIS and USDA and it
is good to see them working together.
I am going to move on to something else and open up a can
of worms here. And it comes down to more confusion in the
marketplace and it comes from rules, regulations, and mandates.
I know if you had to pick an agency that is the most burdensome
in your industry, which one would it be?
Ms. Frey-Talley. Department of Labor.
Mr. Yoho. Department of Labor?
Ms. Frey-Talley. DOL, EPA.
Mr. Yoho. Okay. EPA.
Ms. Frey-Talley. I mean it would be a tossup.
Mr. Yoho. All right. You know, because I look at these
programs that they should be a facilitator to your business and
not a debilitator to your business. And so often they come out
with the regulations that just stifle us in business. I would
like to get your thoughts on some of the--myself and
Congressman Collins out of Georgia formed a regulatory study
group to where we want to attack some of these in a nice way to
get them to back off so that you guys aren't under that burden
because you are talking about the FDA and the Food Safety Act,
and if I understand that right, it is going to put a burden on
the average farmer of about $30,000-$35,000 a year. And you
have to look at the cost-benefit of that. Is it going to
benefit that much more to put this kind of rules and
regulations on you? What is your opinion on that?
Mr. Brim. I am sorry. I turned it off to turn it on.
Mr. Yoho. You didn't want to be recorded?
Mr. Brim. Yes, that is right. I couldn't say it over the
speaker. EPA and DOL and the FDA, they have placed so much more
burdensome rules on us in the last 5 years. My cost of my
business has gone up probably 25 percent just on government
regulations. And I will give you a for instance just on EPA. I
was going to put a boiler system in my greenhouse operation,
and at the time, it was going to cost me $250,000 to put the
boiler system in. Well, with the EPA's regs on new boiler
emission standards, it went to $750,000.
Mr. Yoho. Holy mackerel.
Mr. Brim. So I couldn't do it. I had to back off of it. So
the regs and the regulations that they put on us are
tremendous.
We are all very concerned about food safety, but we think
that the FDA has gone overboard. I am a cantaloupe grower as
well and I think that they are fixing to come test all of our
farms, and they are going to find something either out in the
field or wherever----
Mr. Yoho. Right.
Mr. Brim.--but what I would like for them to do is test
after we have packed, not in the field because we know it is in
the fields. We know it is there. So what we need is less
regulations on what we are doing. And with chemical companies,
their regulations on the chemicals of being able to get
chemicals out of EPA back to us for our disease or whatever
that we are combating in our farming operations.
Mr. Yoho. Well, I agree with all of what you guys have said
because your role is to produce healthy food, and the American
farmer has done a fantastic job and I am proud of you guys.
Mr. Brim. Thank you.
Mr. Bushue. I think you can probably pick an acronym, but
with regard to Farm Bureau, right now the EPA and the
Endangered Species Act are the ones that probably drive the
majority of what is going on. I agree with the Department of
Labor and the FDA, but on a broader scale, especially in the
Northwest, the ESA drives almost everything we do and costs us
incredible dollars just to try and figure out ways to get water
and the other crops that we need. The pesticide products that
we were talking about earlier are all part of that ESA rolled
into one. But I agree with you.
Mr. Yoho. Thank you.
The Chairman. I now recognize the gentleman from California
for 5 minutes.
Mr. Costa. Thank you very much, Mr. Chairman and thank you
to the Ranking Member and the witnesses. All of your testimony
makes very clear why we need to reauthorize the farm bill. I
was a part of the 2008 effort. We made tremendous gains in
specialty crops, with the EQIP program and a host of other
areas which you have touched upon, market access, research.
These are all important gains that we must keep in the 2013
reauthorization.
We have talked a lot about specialty crops here this
morning--but would point out that for people around the
country, specialty crops are no more than the fruits and
vegetables that are part of our healthy diet. We refer to them
as specialty crops. I guess they are special because they are
healthy and they are a good part of America's diet. I think we
do it better in terms of quality and yield than anyone in the
world.
I want to note that specialty crops, or fruits and
vegetables, employ 1.3 million people directly in the country
and we don't have Federal program subsidies that are applied to
other crops. In the district that Congressman LaMalfa and
Denham and I represent, the Central Valley, the salad bowl, it
is responsible for almost 400 crops. We are very proud of \1/2\
the nation's fruits and vegetables that we are able to produce.
I think it gets overlooked that when we talk about the farm
gate value that the fruits and vegetables and specialty crops
that we grow account for over $44 billion of the nation's
agricultural trade surplus. There are a lot of factors that I
could go on to talk about. Fresno County, which I represent,
accounts for almost $6 million of the farm gate.
I want to get into some of the points that were raised here
that are important as we try next month to bring the farm bill
together. I hope we maintain the bipartisan support that I
think is witnessed by today's testimony and by what we did last
year.
Let me ask if there are any changes that you think we ought
to be making in the Specialty Crop Block Grant Program. Any of
the three please answer very quickly because I have a couple of
other questions I want to get to.
Mr. Brim. Yes, sir. I think that to be effective we need
more funding for the program.
Mr. Costa. Any other comments? When we look at the amount
of money that we have spent, it is a fraction of the cost of
what we spend on the program crops. I would surmise too that we
get a lot more bang for our buck.
The Market Access Program again is another important part.
Research is critical to our land-grant universities, and one
that each of you touched upon that. Mr. Chairman, I also want
to talk with this Committee on what I think is a bar that
exists for some of our state universities. When we are marking
up the bill next month, I hope we can address the issue
because, frankly, there are a lot of good efforts that go on in
research that are not available to our state universities in
agricultural areas that ought to be able to participate.
The other area I think is very important, are the efforts
on pest detection and eradication of invasive species.
California, like other states, have had budget cuts. Our most
recent detection was the European grapevine moth. Over 40
percent of all the agricultural imports come through
California. So we are in a cutting-edge area. Money for pest
detection and eradication is absolutely essential.
I am glad to hear some of you talk about the nutrition
programs, these programs not only help those who are at the
bottom rung of our socioeconomic ladder but also they help
American agriculture. There is a good balance there.
So when we craft that next month, we are going to have to
be surgical. We know the farm bill is going to be less this
year, in funding, than it was in 2008. The Senate proposal last
year was $21\1/2\ billion less. The House version out of the
Committee was $35 billion less. So we know we are going to take
haircuts in all areas. We have to be smart about how we do this
to ensure that we do our best to represent America's
agricultural producers, which still, as the song goes, nobody
does it better, in my opinion. And I am a third-generation
farmer.
So, again, I want to thank all of you. I want to thank, Mr.
Chairman, for this hearing. I look forward to working with all
of you next month as we mark up the farm bill.
The Chairman. The chair now recognizes the gentleman from
Illinois for 5 minutes.
Mr. Davis. Thank you, Mr. Chairman.
I would like the Chairman's permission to be a little less
formal with my questioning with one of the witnesses because I
have known Ms. Frey-Talley for a number of years and have seen
what she has done in southern Illinois to not only become a
global leader in specialty crops but a leader in her community
and in her region. So without your objection, I would like to
call you Sarah like I do every other time I see you.
Ms. Frey-Talley. Sure.
Mr. Davis. Is that okay?
Ms. Frey-Talley. Sure.
Mr. Davis. All right. All right.
Ms. Frey-Talley. Absolutely.
Mr. Davis. Thank you. I figured after we found out that
thankfully we can sleep at night knowing there is no training
ground in Imperial County, right, and the north or south end of
a cow, if I would have been here on time, I would have been
able to ask my questions earlier and I might not have heard
that. So I do apologize that I was late. I had to be in the
chair today.
But I read your opening testimony and we met yesterday.
However, you weren't given enough time to really tell your
story. It is a story of success. It is a story that many folks
in this building don't understand because when the general
public sees somebody sit at a table like yours and offer
testimony, it is automatically assumed that you are just a big
business that has been handed down throughout generation after
generation. That is not true with you and I know that. And I
would like you to share with this Committee a little bit about
your background and how you built your business up.
Ms. Frey-Talley. Wow. That is probably the toughest
question I have taken all morning.
I actually started Frey Farms out of the back of a pickup
truck hauling melons from southern Indiana to a small delivery
route of independent grocery stores, and I was a teenager when
I undertook that endeavor. And I purchased also as a teenager
our small family farm in southern Illinois. And as I had four
older brothers who were off to college, one by one they came
home to join me in the business as I began to grow up through
the production of specialty crops. As most of your probably
aware, you can't survive on 100 acres growing corn and
soybeans. So we had to find ways to diversify our business with
the smaller amount of acres.
So, like I said, as I grew the business, one by one of my
brothers came home to join me in the business, and we started
buying up other small farms in other states across the country.
And now we grow several thousands of acres of fruits and
vegetables in a multi-state region.
Mr. Davis. Well, thank you, Sarah, very much. You epitomize
the American dream when it comes to agriculture. I thank you
for what you do.
With the rest of my time, I apologize if I am repetitive
with any of the questions that may have been asked, but that is
the problem of asking the questions late in the hearing. I
would, however, like to start with you, Sarah, and move on to
the other two especially in regard to food safety. But
specifically for you, what investments at Frey Farms have you
made to strengthen food safety?
Ms. Frey-Talley. Food safety has obviously always been a
top priority for our company. We work with most major
retailers, Wal-Mart, Kroger, Target, so on and so forth. And in
our company we have invested in a director of food safety that
not only oversees the compliance within our operations, but
also consults with our contract growers as well.
Frey Farms, we are GFSI-compliant. I am not sure if you
know what GFSI is, but GFSI is the Global Food Safety
Initiative, and over the last year during the 2012 growing
season, all of our farms and facilities that we operate
received a superior rating with GFSI.
So the Food Safety Modernization Act, the proposed rules
that are coming out and the outline for that really for our
industry and for what we are doing at Frey Farms is really not
much different. I don't know that there is going to be a huge
change in our operation because we have been compliant over and
above what the industry standards have been. But I know that
there are going to be monetary investments that will have to be
made throughout the industry to implement the new guidelines.
Mr. Davis. That is the point I wanted you to make is that
you have already been leading the way in food safety.
Ms. Frey-Talley. Yes, sir.
Mr. Davis. And your industry has, too. So thank you for
your testimony. I have run out of time so I can't ask another
question, although what it would have been was what is the
biggest barrier you have to growing your business? And feel
free to answer that or the food safety question and then I will
not get my mike turned on again because the Chairman will now
tell me to shush.
Mr. Brim. Thank you. I think food safety has been our
priority in our business. Myself went to the State of Georgia
to set up a voluntary food safety program back 10 years ago. We
have implemented those programs. We have two food safety people
on staff that work only in food safety. We have just recently
established the ECGA, which is the Eastern Cantaloupe Growers
Association where we have implemented the GFSI audits for
cantaloupe since we have had the problems with cantaloupes in
the last 2 years. We think it is very important and we went
above and beyond the GFSI audit with eight different other
sections to implement that will bring our standards higher than
GFSI.
So we are very serious about it and we are hoping that all
of our growers that grow cantaloupes will join our ECGA so that
we will all be on the same page, and then we won't have an
opportunity to lose a lot of money because somebody hadn't
participated in food safety.
Mr. Bushue. I am going to take the last question. I think
probably the litigious regulatory framework within which we
operate is probably the greatest barrier to us growing our
business and those across the United States.
The Chairman. The gentlelady from Washington is recognized.
Ms. DelBene. Thank you, Mr. Chairman. And thanks to all of
you for being here and sharing your thoughts with us. I really
appreciate it.
I represent the northwest part of Washington, a lot of
dairy and berry specialty crop area. I recognize how important
it is to pass a 5 year farm bill in order to provide certainty
for farmers across the country. So, I too, would like to thank
Chairman Scott and Ranking Member Schrader for having this
hearing today to discuss the incredible importance of specialty
crops.
Oftentimes, specialty crops aren't talked about as much as
traditional commodities. I have to remind folks in my neck of
the woods, mentioned before what specialty crops are because
our terminology is not used broadly. They are an increasingly
important role in agriculture, and some estimates place
specialty crops at more than \1/3\ to \1/2\ of the value of the
U.S. farm crop production in a given year.
I am proud to be introducing a resolution tomorrow that,
with the support of the Specialty Crop Farm Bill Alliance, will
highlight the importance of specialty crops in the fact that
priorities like Specialty Crop Block Grants and the Specialty
Crop Research Initiative deserve full consideration and
funding.
I thank my colleagues on the Subcommittee who have already
lent their support, and I encourage and respectfully ask others
to continue that support, too, so that we can have a strong
resolution out there and make a strong point on specialty
crops.
In particular, we talked a lot about the importance of the
research programs. I wonder if any of you have examples of the
impact of not including research funding would have, going
forward, and on projects that you might have been involved
with. I think it is important that we realize you can't start
and stop research very easily and keep projects going. So, if
any of you have examples where that has had and impact on
research, please tell us.
Mr. Brim. I have had an impact on SCRI. I think that we
need to move it back to mandatory funding actually. And we have
had research on blueberries in the State of Georgia and
actually doing research on E. coli and Salmonella from Georgia
out of open pond waters. So we are right at the threshold. We
need to support to continue this. If we don't get the support,
the disease, insects, all the E. coli and Salmonella foodborne
illnesses will be out of question as far as what we can do. So
we really need to support the SCRI to be able to continue, and
our land-grant colleges need it. So I would ask you to please
continue your support.
Ms. DelBene. Thank you.
Mr. Bushue. The experiment stations in Oregon have
continued to face decreased funding. In fact, the importance of
that has been so critical that one of our counties actually
created a tax base for the support specifically of its
experiment station. So obviously, any kind of funding through
any kind of resolution is going to benefit those research
stations based on both crop protection, disease protection, and
frankly even some of the new various varieties in Oregon and of
course in the Palouse country where you are from with new wheat
varieties. Those are all critical but not so much necessarily
directed to specialty crops, but they are all important.
Ms. DelBene. I know from visiting with the Washington State
University extension, there were projects planned that couldn't
be initiated because they had to save funding to finish
existing projects. Some private funding has been available to
keep some projects going, but public funding for research is
important. That is a continuing activity and if we start
research we should keep funding in place to the end. I think it
is important to make sure that funding is stable and not
something that we are starting and stopping ad hoc.
We talked a little bit about trade and competitiveness and
we talked about your exports. When you look at competitiveness
in your businesses, have imports had an impact? And if so, what
is the impact on your businesses?
Mr. Brim. We have had some impact from imports into the
country because of the--are you familiar with the tomato
suspension rule from Mexico where they are having to price
tomatoes at a certain level now? Back before that price, they
were dumping into the United States and causing us to have a
decrease in the prices and where it was under production cost.
So we have had some experience with that and we really need to
take a look at what we are doing but also make sure it is on an
even playing field for everybody.
Ms. DelBene. Well, thank you. I am running out of time.
Thank you very much for your time here today. And I yield back,
Mr. Chairman.
The Chairman. Thank you. I now recognize Mr. LaMalfa for 5
minutes, the gentleman from California.
Mr. LaMalfa. Thank you, Mr. Chairman. I appreciate the time
here today.
And first, just to dispel something I heard a little bit
earlier. My last name sometimes gets confused for certain
things, and so though I am a descendent of Sicilian immigrants,
fourth-generation here, we don't really have any ties to
certain pronouncement of any Italian organizations that are
sometimes depicted in film and like that. So it is LaMalfa,
okay?
So I represent far Northern California which borders
Oregon, and one of the areas I am interested in that we hear
about a lot with our specialty crops--well, I do like this term
specialty crops as it has been discussed here. I will try and
sell my kids on eating their vegetables and say, kids, eat your
specialty crops, okay. Maybe that will push them a little
closer.
We have, as a border area in my district, what is
affectionately known as the bug stations, the ag inspection
stations, and I want to ask on this panel here with the Pest
and Disease Management Program that has been in place a few
years, how do you feel that that has helped in your area, in
your industry during that time? Has it seen any discernible
results in this time period? And what areas could additionally
be addressed in that?
And then the other half of my question really would be what
more could we be doing with the vast amount of imports that
seem to be coming into this country here as far as looking at
the food safety or the pesticide especially on that? So tie all
those, please, in on this panel here of the imports and what we
already have going that has been in place last few years.
And by the way, I really thought the story for Ms. Frey-
Talley was very compelling as well, so I am really glad you are
part of this panel here today, and I like to tease our Oregon
friends there. We want to make sure all those undocumented bugs
don't come across and into California as well. So anyway, but
please, on those topics.
Mr. Bushue. Well, I will start then. Obviously, funding
means that there are going to be more of those border
inspection stations in northern California. We are probably not
for them, especially if we move product into California. Sorry,
being facetious.
Mr. LaMalfa. Yes, what have you got to hide there?
Mr. Bushue. Anyway, the management of pest and disease to
our industry is critical. I am not sure when you look at the
long-term of things, many of these diseases actually arise
here. I mean we just faced a downy mildew disaster on our farm.
We just threw away piles of impatiens. We face issues with
glassy-winged sharpshooters. What are they? Glassy-winged----
Mr. LaMalfa. That is the one.
Mr. Bushue. Is that what they--sharp--I can't remember the
exact name. But all these issues, sometimes there isn't an
answer for them. But with research dollars to deal with how to
deal with them to learn how to deal with them if we do get them
is critical. Certainly, inspection of products coming from
imports, I believe I heard once that less than five percent of
all products imported in the United States are actually
inspected. There has got to be a way to improve on that.
But importation and exportation is a two-edged sword. One
of the challenges of importation is when a crop is brought in
and the market is flooded and it reduces prices and available
markets for local growers like myself, but it also provides
benefits if you have those products available year-round, it
provides benefits to the consumer and provides benefits to me
as a local grower because I have a competitive advantage over
those products when they are imported.
Mr. LaMalfa. Well, in summary then, you feel that on the
import side it has been pretty inadequate and probably places
our domestically produced crops at a greater peril in the
market or with the pests that can get in to them? And we are
short of times I need you to be succinct.
Mr. Bushue. I would just sum up by saying I think it is
important to continue to improve and increase the amount of
inspection done on imported crops.
Mr. LaMalfa. Okay. The others, now, do you think the Pest
and Disease Management Program has been working? Has it
improved anything you have seen in the last few years?
Mr. Brim. I think that they have been working well. It
needs some improvement on even interstate inspections from
Florida to Georgia. We have insects and diseases coming in from
hurricanes and they are monitoring those. And also we had what
we call a cucurbit leaf crumple virus that came in on
whiteflies from Texas last year they said, and they have been
monitoring that and letting us know ahead of time what is
happening and us to be able to be proactive and get on top of
the disease or the insect that is causing the problem and
allowing us to be able to manage our crops really helps us.
Mr. LaMalfa. Okay. Ms. Frey-Talley, you got any?
Ms. Frey-Talley. I would just piggyback on the level of
funding. It was $71.5 million a year and I would just encourage
the continuation of that.
Mr. LaMalfa. Okay. All right. Thank you, panel. Thank you,
Mr. Chairman. I yield back.
The Chairman. I know that Mr. Schrader has another question
that he wanted to ask, and if either of you have another
question, we will be happy to let you ask it as well. Mr.
Schrader?
Mr. Schrader. Thank you, Mr. Chairman. I appreciate your
indulgence. It is more of a heads-up because American
agriculture and our specialty crops in particular face a whole
new threat that has not been talked about or identified. In the
Pacific Northwest we have a new pest that is called the
Department of Labor that is now going after fresh fruit and
vegetable growers using an outdated 1930s ``hot goods'' order
that is frankly ignoring due process and making criminals or
implying criminality to people who don't have a chance to
defend themselves.
I would like the Mr. Bushue, who is the President of the
Oregon Farm Bureau and Vice Chair of AFBF to talk about this
new threat and how we are trying to get this issue resolved for
specialty crop growers across this country.
Mr. Bushue. Thank you, Congressman Schrader. I appreciate
your efforts on behalf of Oregon's growers and frankly the
nation's growers on this very important issue.
I will make this quick. We had some blueberry growers who
were visited by DOL. DOL arbitrarily decided that no employee
could pick more than 50 pounds of blueberries in an hour, and
if they did, they must be joining pick tickets with other
employees. DOL calls them ghost employees. DOL levied a fine, I
believe, it was $160,000 on the grower and withheld his ability
to ship, pick, or sell those products. They also notified the
purchasers of those products through what is called a ``hot
goods'' order.
Now, I am not going to get into the legalities of it, but
the challenge was three-fold. One, they had made this
determination without any basis in fact, without any
verification that 50 pounds an hour was indeed a maximum. In
fact, the payroll records and the surveys we have done and that
ex-DOL staff have done determined that many of these employees
are picking 100 to 110 pounds of fruit an hour.
The final challenge was is that DOL said to the grower they
would only release this product to be shipped and sold provided
the grower sign an order. The order said effectively the grower
could not challenge or appeal the DOL decision. Essentially
saying, ``We are guilty, and here is $160,000.'' I believe it
has been almost 400 days now since the order. To our knowledge,
none of the employees have received any of those funds because
there are no ghost workers. They don't exist. There are no
records of those people ever existing, so basically, DOL has
$160,000 they didn't have before at the expense of Oregon
growers.
But the biggest challenge to this is that the DOL has not
responded to requests from the Oregon Congressional Delegation,
except one, including our Senators. DOL has not provided an
effective response or answers to our questions. And thankfully,
due to Congressman Schrader, we are not going to let this rest.
Thank you very much.
Mr. Schrader. Thank you. I yield back. Thank you, Mr.
Chairman.
The Chairman. Would any of you like to ask additional
questions?
The gentleman from Florida.
Mr. Yoho. Thank you, Mr. Speaker. I had one more question I
wanted to ask you guys. Your opinion of country-of-origin
labeling, if you haven't answered that when I stepped out, how
do you stand on that?
Mr. Brim. I think that it is a good idea to have country of
origin where it is at so people know where they are buying
products from.
Mr. Yoho. Right.
Mr. Brim. So I don't think it is mandatory right now, but I
think it is probably a good idea.
Mr. Yoho. Okay. Yes, I have heard that. On other industries
in ag they are not so keen on it, so I just wanted to get your
opinion on that. Ms. Frey?
Ms. Frey-Talley. I actually think it is a great idea. I
mean we have been following for well over 10 years on all of
our products.
Mr. Yoho. Okay. And do you think that will facilitate you
in foreign trade? You said you weren't doing any exporting
right now. Is that just because you haven't developed that
market?
Ms. Frey-Talley. We haven't been aggressively growing our
business due to the labor shortage.
Mr. Yoho. Okay.
Ms. Frey-Talley. So at some point when we have a solution
there, we might export.
Mr. Yoho. Thank you.
Mr. Bushue. I was just going to say I know that it has
created some challenges to WTO and some of the trade
agreements, and we are recognizing that. Currently, we are very
supportive of voluntary country-of-origin labeling.
Mr. Yoho. All right. Good enough. Thank you. I yield back,
Mr. Speaker.
The Chairman. The gentleman from Illinois.
Mr. Davis. I do get to talk again. A question I have----
The Chairman. The gentleman's time has expired.
Mr. Davis. And you said we don't have fun here in Congress.
Thank you, Mr. Chairman.
I would like to ask each of you starting with Sarah. As a
Committee that has jurisdiction over research and research
prioritization, what can we do to make it easier for you to
work with our universities, with our land-grant universities
like the University of Illinois that is in my district that I
know Sarah has worked with in the past. What can we do to help
make that easier for you to work with those institutions to
better address our specialty crop issues?
Ms. Frey-Talley. I think that there is always room for more
education and awareness of the programs. I think one of the
points that was brought up earlier about the research funding
to make that more available to state universities such as U of
I. But I think just communication. I think there are a lot of
growers in the State of Illinois that are not aware that they
have that information, those resources available to them, and I
think that as some of the departments and associations started
talking to each other more to get that information out to
growers and let them know that they can be working with
universities, their local universities and such that would be
good like the Illinois Specialty Crop Growers Association, they
could get the message out to their members and then also be
very instrumental in identifying the specific crops in the
state, whereas research projects would be needed and therefore
funding provided.
Mr. Brim. I think there is a great need for more funding
available for us and our land-grant colleges. I think it is a
great opportunity for all of us to work with our land-grant
colleges and I do already work with them but also to have input
in what their research is working on. Sometimes we get things
out maybe in upper right field and it should be down the
center. So with growers participating in the projects, it
allows us to have a little more input in what they are
researching and not get way out there.
Mr. Bushue. On the nuts and bolts of it, you can make sure
that the funding is there and then you can make sure that it is
actually appropriating the money is spent. I mean those two
factors, make sure that they are in your farm bill and your
budget, it is there, and then put pressure on the appropriators
to make sure that they actually spend those dollars on the
land-grant institutions.
Mr. Davis. I yield back.
The Chairman. Before we adjourn, Mr. Schrader, do you have
any closing comments?
Mr. Schrader. I do not, sir.
The Chairman. I would like to thank all of you for coming
in and spending time with us today. We had a good hearing. We
had a tremendous number of Members here, a lot of questions, a
lot of information that you provided for us. I think the one
thing that this Committee hears over and over loud and clear is
about the burden that the regulatory agencies are putting on
your industry and other industries, and whatever we can do to
help with that, we will in a bipartisan manner.
Under the rules of the Committee, the record of today's
hearing will remain open for 10 calendar days to receive
additional material and supplementary written responses from
the witnesses to any questions posed by a Member. This hearing
of the Subcommittee on Horticulture, Research, Biotechnology,
and Foreign Agriculture is adjourned. Thank you.
[Whereupon, at 11:37 a.m., the Subcommittee was adjourned.]
[Material submitted for inclusion in the record follows:]
Submitted Statement by Steve Barnard, President and Chief Executive
Officer, Mission Produce Company; Chairman of the Board, Western
Growers Association
Chairman Scott, Ranking Member Schrader, and Members of the
Subcommittee, thank you for the opportunity to provide written
testimony to the House Agriculture Committee regarding the fresh
produce industry's priorities in the new farm bill. My name is Steve
Barnard. I am the President and CEO of Mission Produce Company, located
in Oxnard, CA. Since I founded Mission Produce in 1983, it has since
grown to become a global entity in the avocado and asparagus industry.
In addition to serving as President of Mission Produce, I also
currently serve as Chairman of the Board for Western Growers
Association, an agricultural trade association headquartered in Irvine,
California. Western Growers members are small, medium and large-sized
businesses that produce, pack and ship almost 90 percent of fresh
fruits, nuts and vegetables grown in California and approximately 75
percent of the fresh fruits, nuts and vegetables grown in Arizona.
Western Growers members produce in--and directly contribute to the
economies of--over 25 states. In total, Western Growers members account
for nearly half of the annual fresh produce grown in the United States,
providing American consumers with healthy, nutritious food. Indeed,
Western Growers' has long had the slogan: ``We grow the best
medicine''.
As the Committee knows, growers in our segment of agriculture
represent nearly 20% of all of agriculture's cash receipts. We also
account for a significant segment of agricultural exports. The fruit
and vegetable agriculture market segment is benefiting from the call
from Americans to eat healthier and we are in an exciting time. As a
mark of how our segment has done, we are one of the few sectors within
agriculture in which young people and new entrants are joining the
ranks of farmers helping to lower the age of producers. Yet with all
the market forces at play within our industry, events in Washington are
no less exciting today and 2013 might come to be seen as a historic
year for the specialty crop industry. This year our industry faces the
prospect of passing two significant pieces of legislation that will
help our short and long-term prospects: the farm bill and an
immigration reform bill.
The new farm bill provides an opportunity to provide meaningful
investments in specialty crops to enhance the competitiveness and
profitability in this strategic area of U.S. agriculture. I want to
acknowledge the efforts of Congressional champions who have over the
years worked to ensure that our industry has a ``seat at the table''
within the farm bill. After years of hard work, we have the opportunity
to maintain and build upon the work that has been done.
How the Farm Bill Enhances the Horticulture Industry's Competitiveness
The Specialty Crop Block Grant Program is one of the signature
achievements in the 2008 bill and we strongly urge you to continue, and
even enhance, funding for this innovative approach that creates a
Federal-state partnership designed to enhance the competitiveness of
the industry. Producers are interested in this program because it is
responsive to our localized needs, unlike so many other Federal
Government programs. As designed the program is administered by state
governments who are able, within Federal guidelines, to tailor
competitively selected projects to the particular concerns of specialty
crop producers in each state in a timely fashion.
The program's design is thus very flexible. For example California
has used block grants to fund, among many priorities, several projects
at the Center for Produce Safety at UC Davis. These projects addressed
ongoing research needs to validate and improve on-farm practices to
continuously improve food safety. With food safety modernization
legislation now being finalized the flexibility inherent in the block
grants are absolutely vital.\1\ California is not the only beneficiary
of this approach. In Florida block grant funding was used to develop
the next generation of pesticides and fungicides for avocados. Work
funded in Minnesota helped increase the financial planning skills of
specialty crop growers there. Funding in Oregon has helped promote
consumption of specialty crops. Funds in Georgia have helped promote
and develop local producers. Finally, funding in Oklahoma developed a
curriculum to educate pre-K school children about the health benefits
of eating specialty crops. All fifty states benefit from this program,
and the Senate Committee version of the farm bill enhances funding for
this critical program. We ask that the House do the same.
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\1\ A word on the Food Safety Modernization Act (FSMA): As Members
of the Committee know the Food and Drug Administration came out with
new regulations implementing FSMA earlier this year. While farm bill
programs certainly should not ``pay'' to implement this law, farm bill
programs can be useful in helping producers meet these burdens. Just as
conservation programs, like EQIP, have helped livestock producers meet
their environmental burdens, so to can programs like block grants help
fruit and vegetable producers meet their FSMA obligations. This is
especially the case as programs explore, on behalf of large groups of
producers, how best to educate on the requirements as well as evaluate
new techniques for implementation. The farm bill can thus be a
supplement for producers as they implement this law over the next few
years.
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The Farm Bill as a way to Address Pest and Disease
Every year growers across the country face potentially devastating
outbreaks of destructive pests and debilitating disease. Growers in
California for example face outbreaks of an invasive pest or plant
disease on regular basis--often from foreign countries (California's
ports process roughly 40% of all imports). We believe it is incumbent
upon the Federal Government to support outbreak prevention efforts and
the economic impact of that these events may cause.
Fortunately, farm bill funding in the form of the Plant Pest and
Disease program is used for early plant pest detection and
surveillance, for threat identification and mitigation of plant pests
and diseases, and for technical assistance in the development and
implementation of audit-based certification systems and nursery plant
pest risk management systems. Farm bill funding through the Specialty
Crop Research Initiative (SCRI) is used to help develop the next
generation of crops and/or technologies that will be able to better
resist threats from pests and disease. This one-two punch of short and
medium term efforts of identification and interdiction combined with
long-term research is critical to our industry and must be maintained
in order to combat current and future threats. As this Committee knows
SCRI funding was suspended under the terms of the budget agreement
passed at the beginning of the year. It is vital to place this program
have permanent funding.
Ensuring that Our Nation's Children Access Fresh Fruit and Vegetables
The 2008 Farm Bill created a firm commitment between specialty crop
growers, and America's children and those less fortunate via the
purchase and distribution of our fresh produce through the nutrition
programs. Fruit and vegetable growers view those programs as important
for both feeding our less fortunate and our nation's children who need
assistance, while at the same time benefiting our industry
economically. Our growers are proud to be part of those efforts and we
want to maintain the increased role that specialty crop produce has had
in nutrition programs since the 2008 Farm Bill as we move forward. We
therefore view the Fresh Fruit and Vegetable program, specialty crop
purchases in section 32 and the DOD Fresh program as important to our
interests.
I especially want to highlight the Fresh Fruit and Vegetable (FFVP)
program in that regard. As this Committee knows, this program by
providing students with a fresh fruit or vegetable snack every day at
school, increases their consumption of a wide variety of fresh fruits
and vegetables, creates a healthier food environment at school and
positively affects family eating habits. This program is especially
powerful when linked with focused educational efforts and can lead
children down a pathway toward healthy fruit and vegetable choices.
FFVP is a program that fruit and vegetable producers can and do
support. While section 32 also provides funding for fruits and
vegetables the overwhelming proportion of that money is spent on canned
and frozen products.\2\
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\2\ Canned, frozen and dried fruits and vegetables typically make
up over 97% of the fruits and vegetables purchases by USDA/AMS thru
Section 32 (roughly $400 million annually), and supplied to child
nutrition programs; these types of fruits and vegetables are what are
already typically served in school lunch and breakfast.
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FFVP is an important outlet for children, especially those in need
with the least means, to consume fresh fruit and vegetables--in some
cases for the only time of the day or week and we therefore support
keeping that program focused on fresh product.
Immigration Reform
No discussion of American agriculture is complete without a
discussion of labor needs and immigration reform. While I know this
issue is not directly in the jurisdiction of this Committee or the farm
bill, as representatives of agriculture every House Agriculture
Committee Member should be vocal and aggressive spokespeople for the
critical need to address labor issues. Agricultural producers across
the country want a legal and stable workforce. Not only is
agriculture's role in maintaining a safe and secure food supply vital
to our economic recovery, it is critical to the strength of rural
America. Western Growers members and their employees are members of the
very communities in which they grow, pack, and sell products. Without a
workable agricultural program, growers in California and across the
country face the very real prospect of not being able to plant their
crops or harvest them if planted. Consumers in turn will be faced with
grocery shelves devoid of fresh fruits and vegetables, or if product is
available it will come exclusively from far off lands.
Securing a legal workforce is not a new challenge for agriculture.
We've been working towards this goal for over 15 years. But Congress'
failure to pass immigration reform, combined with a diminishing labor
supply, threats due to I-9 audits by Immigration and Customs
Enforcement, and now mandatory E-Verify legislation emerging at the
state and the Federal levels, it is clear that U.S. agriculture will be
decimated without a workable mechanism to hire and continue to employ
the labor we need. Today in Congress, American agriculture has an
opportunity to resolve this long-standing problem.
Real, substantial, and effective immigration reform is being
discussed in the halls of Congress. American farmers, from every region
of the country, producing different products with very different
employment structures have come together with a package of ideas. In
turn, those agriculture employers have been able to negotiate a good
faith package of reforms with agriculture labor that we believe will
ensure access to a future workforce and allow existing labor to come
out of the shadows.
The agreement reached between the Agriculture Workforce
Coalition (AWC) and United Farm Workers Union (UFW) includes
provisions to allow experienced but falsely documented workers
to gain legal status and continue working in agriculture for
several years before adjusting to permanent resident status.
The agreement also includes the creation of a new
agriculture visa program which is intended to mirror the
current agriculture labor market. The program includes both an
``at-will'' and a ``contract'' employment option. The H-2A
program has been a bureaucratic failure for many reasons, but
one significant cause is that the program has been operated by
the Department of Labor. The new visa program moves operation
of the program to the Department of Agriculture.
While the agreement is not perfect, it represents a significant and
historic achievement, bringing a unified agriculture industry along
with the farm labor community in support of the carefully negotiated
proposal. We urge the Agriculture Committee's support for this landmark
agricultural labor reform agreement and encourage that language
representing this agreement be included in whatever the House passes.
We need each Member of this Committee to be a strong advocate for
agriculture and pass this agreed to language.
Potential Growth in Crop Insurance
Specialty crop producers across the country have become
increasingly familiar with crop insurance and this certainly has been a
hot topic during this farm bill debate. While fruit and vegetable
producers are interested in exploring how crop insurance could be
useful to our industry, we also want to ensure that changes to the
system do not distort normal market cycles. From that perspective we
want to first make sure that any newly developed crop insurance
products ``do no harm''. Why do we have concerns? We are worried that
ill-conceived or overly generous crop insurance products might distort
market signals. In 1999 RMA authorized a watermelon program in several
states--a program that had disastrous national consequences. When that
program rolled out watermelon plantings and production in Florida and
Texas increased dramatically causing the national watermelon market to
collapse in turn adversely impacting many, including producers in
California and Arizona. While we know that this program was not
properly implemented and agency changes have been made since 1999, this
example serves as a cautionary tale to us about how an expansion of
crop insurance could lead to market distortion and cause a functioning
market to collapse. With very tight balances between supply and demand,
and limited shelf life, over-supply driven by a poorly designed crop
insurance product is a real concern.
Given these concerns, we are pleased that last year's Senate
version of the farm bill put some boundaries and speed bumps in place.
The Senate bill ensures that when new products are developed, they are
accompanied by (1) econometric modeling which could help evaluate
market impacts of the new product, as well as (2) industry survey data
to determine how much of the industry is interested in developing a
product. With safeguards like these, we believe that insurance products
developed in the future will not repeat failures of the past. We
strongly encourage the House to adopt these provisions as well.
In addition to ensuring that new products ``do no harm'', we want
to see crop insurance products developed that are useful to our
industry. One critical area of concern that fruit and vegetable
producers would like to see is products tailored to help growers deal
with food safety and quarantine issues-something crop insurance to date
has not fully addressed.
On behalf of Mission Produce, Western Growers, and the specialty
crop industry, I am appreciative of this Committee's willingness to
examine the issues that affect us and how the farm bill might be
beneficial in helping our industry thrive. We look forward to working
with you.