USDA block grant proposal elicits comments but not controversy
USDA block grant proposal elicits comments but not controversy
The consumer press has labeled it a "food fight," but produce industry representatives say there is no fundamental disagreement about regulations concerning the allocation of federally funded specialty crop block grants.
The potential controversy stems from the recently proposed rules by the U.S. Department of Agriculture's Agriculture Marketing Service for the allocation of funds earmarked for fruits, vegetables, nuts and floriculture by the Specialty Crop Competitiveness Act of 2004. One provision in the proposed rules calls for priority to be given to "fresh specialty crop projects." This phrase has caused other agricultural sector representatives, including frozen and processed foods, to call for the removal of that phrase.
Is there a controversy brewing? "Absolutely not," Western Growers Association Executive Vice President Matt McInerney said when asked if "food fight" was an apt definition of the situation. "I take exception to anyone trying to characterize this as a food fight. I'd call that [characterization] a rush to judgment."
Mr. McInerney said that the federal rule-making process is very clear. The USDA issues proposed rules and puts them out for comment. It is during the comment period when industry and others can take a look at the proposals and suggest changes. He believes that the process works and that the comment period is designed to identify and clarify issues, not create a divisive atmosphere. After USDA analyzes the comments on its proposed rules, it will issue a "Final Rule," which will also be open for comment before it is enacted.
Mr. McInerney said that he knows of no produce industry representative or association that pushed for that priority language or is supporting it.
"It is our opinion that the allocation of the funds should be determined within each state," he said. "We are commenting on the proposed rules and asking that the language concerning the USDA's oversight be clarified. We would like to clarify to what extent the USDA will be involved in approving individual projects or will they be approving the overall framework [for fund allocation] as determined by each state."
Mr. McInerney said that the Specialty Crop Block Grant program of several years ago allocated funds to each state and allowed the individual state's departments of agriculture to allocate those funds. USDA had general oversight but did not participate in giving thumbs up or thumbs down to individual programs. He indicated that Western Growers Association would be submitting comments asking the USDA to follow a similar framework this time around.
He added that this is an important process, as it will most likely also serve as the blueprint for allocating any specialty crop funds that come from the 2007 farm bill. The specialty crop industry is expected to exert significant pressure to increase its funding during the farm bill debate.
In any event, Mr. McInerney said that his organization did not support the concept of the federal agency prioritizing one sector of the specialty crop industry over another.
"The Specialty Crop sector is defined in the original act, and we think that is sufficient," he said. "We believe each state should then be able to determine its own priorities. That is the underlying benefit of establishing a block grant program that gives the money to the states. It puts the decision-making process [on how to allocate the funds] in local hands."
The Specialty Crop Competitiveness Act of 2004 authorized the allocation of up to $44.5 million annually in the USDA budget on specialty crop block grants. The act required the USDA to promulgate rules governing the allocation of whatever funds were allocated by Congress.
For fiscal year 2006, Congress allocated $7 million in Specialty Crop Block Grants. That $7 million will remain unspent until these rules are finalized. For fiscal 2007, a House Appropriations Committee has penciled in $15 million for the program.
USDA is accepting comments on the proposed rule until May 22. The rule-making notice was posted in the April 20 issue of the Federal Register. More information is available from the USDA web site: www.ams.usda.gov/fv/scbgp.html.
The potential controversy stems from the recently proposed rules by the U.S. Department of Agriculture's Agriculture Marketing Service for the allocation of funds earmarked for fruits, vegetables, nuts and floriculture by the Specialty Crop Competitiveness Act of 2004. One provision in the proposed rules calls for priority to be given to "fresh specialty crop projects." This phrase has caused other agricultural sector representatives, including frozen and processed foods, to call for the removal of that phrase.
Is there a controversy brewing? "Absolutely not," Western Growers Association Executive Vice President Matt McInerney said when asked if "food fight" was an apt definition of the situation. "I take exception to anyone trying to characterize this as a food fight. I'd call that [characterization] a rush to judgment."
Mr. McInerney said that the federal rule-making process is very clear. The USDA issues proposed rules and puts them out for comment. It is during the comment period when industry and others can take a look at the proposals and suggest changes. He believes that the process works and that the comment period is designed to identify and clarify issues, not create a divisive atmosphere. After USDA analyzes the comments on its proposed rules, it will issue a "Final Rule," which will also be open for comment before it is enacted.
Mr. McInerney said that he knows of no produce industry representative or association that pushed for that priority language or is supporting it.
"It is our opinion that the allocation of the funds should be determined within each state," he said. "We are commenting on the proposed rules and asking that the language concerning the USDA's oversight be clarified. We would like to clarify to what extent the USDA will be involved in approving individual projects or will they be approving the overall framework [for fund allocation] as determined by each state."
Mr. McInerney said that the Specialty Crop Block Grant program of several years ago allocated funds to each state and allowed the individual state's departments of agriculture to allocate those funds. USDA had general oversight but did not participate in giving thumbs up or thumbs down to individual programs. He indicated that Western Growers Association would be submitting comments asking the USDA to follow a similar framework this time around.
He added that this is an important process, as it will most likely also serve as the blueprint for allocating any specialty crop funds that come from the 2007 farm bill. The specialty crop industry is expected to exert significant pressure to increase its funding during the farm bill debate.
In any event, Mr. McInerney said that his organization did not support the concept of the federal agency prioritizing one sector of the specialty crop industry over another.
"The Specialty Crop sector is defined in the original act, and we think that is sufficient," he said. "We believe each state should then be able to determine its own priorities. That is the underlying benefit of establishing a block grant program that gives the money to the states. It puts the decision-making process [on how to allocate the funds] in local hands."
The Specialty Crop Competitiveness Act of 2004 authorized the allocation of up to $44.5 million annually in the USDA budget on specialty crop block grants. The act required the USDA to promulgate rules governing the allocation of whatever funds were allocated by Congress.
For fiscal year 2006, Congress allocated $7 million in Specialty Crop Block Grants. That $7 million will remain unspent until these rules are finalized. For fiscal 2007, a House Appropriations Committee has penciled in $15 million for the program.
USDA is accepting comments on the proposed rule until May 22. The rule-making notice was posted in the April 20 issue of the Federal Register. More information is available from the USDA web site: www.ams.usda.gov/fv/scbgp.html.
