Proposed budget will cut USDA marketing program in half
Proposed budget will cut USDA marketing program in half
WASHINGTON -- Fruit and vegetable businesses will not be alone in protesting the Bush administration's proposal to cut in half funding for the popular Market Access Program next year.
More than 90 groups that comprise the Coalition to Promote U.S. Agricultural Exports have been pushing Congress to maintain $200 million for MAP, the program designed to help expand sales of U.S. agricultural, fish and forest products overseas. Now the fiscal 2007 budget proposal would cut the program to $100 million.
"We're concerned about that," said Keira Franz, legislative affairs director for the United Fresh Fruit & Vegetable Association, referring to the $100 million funding shortfall.
United has long urged Congress to expand the farm bill program and views maintaining the current $200 million funding level for the cooperative program a high priority. Ms. Franz said that she hoped a broad array of agricultural interests, all of which can tap into the matching-grant program, are successful in persuading Congress to allocate more money for the overseas marketing program.
"It's extremely disappointing," said Ken Gilliland of the Western Growers Association. "We see this as an extremely important program in trying to compete in the global marketplace," he said. Western Growers said that it was short-sighted to cut a critical program that has demonstrated a solid return for every dollar spent, particularly while other governments support their industries.
The program is critical, Mr. Gilliland said, because enhancing the export market perpetuates the viability of U.S. growers. Recently, the program has been successful in helping U.S. vegetable producers penetrate Asian markets, and U.S. companies have been working with trade officials to gain access to the Philippine market, for example, he said.
The produce industry, along with other farm groups, was bracing for budget cuts this year. Overall, the 2007 budget proposal would fund USDA at about $93 billion, down from $96 billion this year. Facing a growing deficit, Agriculture Secretary Mike Johanns said other government face similar cuts.
The budget fully funds USDA's three major nutrition assistance programs - food stamps, school lunch and Women, Infants & Children - which combined account for nearly $55 billion. But the new budget would cut commodity payments by 5 percent.
Farm groups immediately protested the commodity cutbacks. "For the second year in a row, the administration is proposing drastically cutting the 2002 farm bill safety net at a time when the rural economy is struggling," National Farmers Union President Dave Frederickson said in a statement. "Commodity prices have been declining, production in many areas has been down as a result of weather-related disasters and input costs have skyrocketed as a result of energy costs."
Closer to home, Ms. Franz said that the budget proposal also calls for new user fees to be paid by the fruit and vegetable industry to help defray the cost of updating the grade standards and handling marketing orders.
More user fees come as USDA just approved higher inspection fees. The industry is now on the hook for a 15 percent fee increase to pay Fresh Fruit & Vegetable Terminal Market Inspection Services. In September, United said that it supported the increase, but it called on USDA to explore other funding streams and cost-saving methods to cushion the blow from future price hikes. The industry is facing high fuel costs, low commodity prices, trucking shortages and recovery from disaster-related events, United said in comments to USDA.
One program that would be discontinued under USDA's 2007 budget is the Microbiological Data Program. The program, started in 2001 to gather data on fresh fruits and vegetables, is currently testing cantaloupes, tomatoes, green onions, lettuce and alfalfa sprouts for harmful bacteria.
Produce trade associations have long criticized the program as duplicative, questioned its sampling methods and complained about the program's management of data results. "We were concerned it wasn't beneficial to the industry," said Ms. Franz, who added that many of the commodities were tested in supermarkets, a point that gives the industry too little information on how to prevent contamination throughout the distribution chain.
Advocates for the 5 A Day program also will be watching the 2007 budget for the Center for Disease Control & Prevention to ensure that the popular program aimed at boosting America's fresh produce servings receives adequate funding. The administration is proposing $41.5 million for the center's Division of Nutrition & Physical Activity, which is similar to the current funding level.
Produce for Better Health Foundation President Elizabeth Pivonka said that she will be closely watching the budget process to ensure that the $1.5 million program moved to CDC is fully funded next year. In this budget climate, "it's good not to lose what you have," she said.