Specialty Crops: 2008 Farm Bill Issues

Specialty Crops: 2008 Farm Bill Issues

Specialty Crops: 2008 Farm Bill Issues
Renée Johnson
Specialist in Agricultural Policy
January 13, 2009
Congressional Research Service
7-5700
www.crs.gov
RL33520
CRS Report for Congress
P
repared for Members and Committees of Congress

Specialty Crops: 2008 Farm Bill Issues

Summary
Congress has completed action on omnibus legislation to replace expiring law governing the
programs and policies of the U.S. Department of Agriculture (USDA). The new Food,
Conservation, and Energy Act of 2008 (P.L. 110-246, H.R. 6124) contains provisions on
marketing, crop insurance and disaster assistance, protection against pests and diseases, export
promotion, research, and domestic food assistance, all of which are important to the
competitiveness of the specialty crop sector of U.S. agriculture. The sector includes fruit,
vegetable, tree nut, and nursery crop producers, processors, manufacturers, wholesalers,
importers, and exporters.
Although specialty crops are not eligible for direct support under USDA’s farm commodity price
and income support programs, the policies that Congress sets for the those programs affect them.
Chief among these policies is one that largely restricts commodity program participants from
planting fruits and vegetables on program base acres. Specialty crop interests long have
maintained that the provision is essential to protect the sector from the economic damage that
could occur if additional acres of vegetables (in particular) suddenly came into production. The
Food, Conservation, and Energy Act of 2008 extends the planting restriction through FY2012, but
authorizes a pilot program in seven midwestern states to allow planting of fruits and vegetables—
exclusively for processing—on base acres.
P.L. 110-246 also includes, for the first time in the history of the farm bill, a separate title
covering horticultural (specialty) and organic crops (Title X). The title provides substantial
mandatory funding over the life of the farm bill and beyond for several major new and continuing
programs. The key provisions include (1) reauthorization of the program making block grants to
states for research, marketing, and promotion projects benefitting specialty crops, providing $466
million over 10 years in mandatory funds; (2) reauthorization of the program of cost-share
assistance to producers for organic certification, with a one-time transfer of $22 million in
mandatory funds; (3) expansion of the current Farmers’ Market Promotion Program to increase
direct farmer-to-consumer marketing opportunities, providing $33 million in mandatory funds;
(4) establishment of a federal/state pest and disease detection and control program with $377
million in mandatory funds over 10 years; and (5) creation of a network of nurseries to grow pest-
and disease-free plant stocks for horticultural crops, with $20 million in mandatory funds. The
title also contains a section authorizing $10 million annually in appropriations for research on
colony collapse disorder in honeybees.
The nutrition title of P.L. 110-246 contains provisions intended to increase the availability of
fresh fruits and vegetables in the school lunch and other domestic nutrition assistance programs.
For greater detail on these provisions, see CRS Report RL33829, Domestic Food Assistance: The
Farm Bill and Other Legislation in the 110th Congress, coordinated by Joe Richardson.
This report will not be updated.

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Specialty Crops: 2008 Farm Bill Issues

Contents
Introduction ................................................................................................................................ 1
Sector Snapshot .................................................................................................................... 1
Selected Issues and Their Status in the Enacted 2008 Farm Bill ................................................... 4
Planting Flexibility................................................................................................................ 4
In the Enacted Bill .......................................................................................................... 4
Government Purchases for Nutrition Programs ...................................................................... 5
In the Enacted Bill .......................................................................................................... 5
Market Expansion Through Promotion Programs .................................................................. 5
In the Enacted Bill .......................................................................................................... 5
Disease and Pest Protection................................................................................................... 6
In the Enacted Bill .......................................................................................................... 6
Research ............................................................................................................................... 7
In the Enacted Bill .......................................................................................................... 7
Organic Agriculture............................................................................................................... 7
In the Enacted Bill .......................................................................................................... 7
Additional Provisions............................................................................................................ 8

Figures
Figure 1. Value of Vegetables, Melons, Potatoes, and Sweet Potatoes as Percent of Total
Market Value of Agricultural Products Sold: 2002 .................................................................... 2
Figure 2. Value of Fruits, Tree Nuts, and Berries as Percent of Total Market Value of
Agricultural Products Sold: 2002.............................................................................................. 3
Figure 3. Value of Nursery, Greenhouse, Floriculture, and Sod as Percent of Total Market
Value of Agricultural Products Sold: 2002 ................................................................................ 3

Appendixes
Appendix. Major Provisions of the Enacted 2008 Farm Bill (P.L. 110-246) Compared
with Previous Law and House- and Senate-Passed Bills (H.R. 2419) ........................................ 9

Contacts
Author Contact Information ...................................................................................................... 16
Acknowledgments .................................................................................................................... 16

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Specialty Crops: 2008 Farm Bill Issues

Introduction
Specialty crops (fruits, vegetables, tree nuts, and nursery crops) are not eligible for direct support
under USDA’s farm commodity price and income support programs. Nonetheless, the policies
that Congress sets for those programs significantly affect the specialty crop sector’s economic
well-being. Federal policies on trade, conservation, credit, marketing programs, domestic food
assistance, and research also all affect the specialty crop sector.1
Congress sets the policies in these areas, for the most part, in an omnibus, multi-year authorizing
law commonly called the “farm bill.” In May 2008, Congress passed a new farm bill to replace
the previous one, the Farm Security and Rural Investment Act of 2002 (P.L. 107-171), which
expired in 2007 (Congress extended it until the new bill could be enacted).
Some stakeholders and policymakers called for specialty crop issues to occupy a larger role in
farm bill policy discussions than in the past. They noted that the traditional farm commodity
support programs are under pressure from constraints on the federal budget, as well as from
developments in existing trade obligations and from negotiations on further trade agreements.2
Policies covering U.S. agriculture more comprehensively could provide a way to address those
pressures while increasing U.S. competitiveness, they argued.
Several major legislative proposals focusing on policies and programs of importance to the
specialty crop sector were introduced in the 110th Congress in preparation for the 2007 farm bill
debate. These bills included H.R. 1600 (Cardoza), the EAT Healthy America Act; H.R. 1551
(Kind)/S. 919 (Menendez), the Healthy Farms, Foods, and Fuels Act; and S. 1160 (Stabenow), the
Specialty Crops Competition Act, among others. The Administration also proposed several policy
reforms affecting specialty crops as part of the comprehensive 2007 farm bill proposal that it
released in February 2007. A number of stakeholder groups also issued position statements
concerning the specialty crops issues they wanted to see addressed in the new farm bill.
Sector Snapshot
Sales of fruits, vegetables, and tree nuts account for nearly one-third of U.S. crop cash receipts
and one-fifth of U.S. agricultural exports, according to USDA’s Economic Research Service
(ERS). When floriculture, greenhouse, and nursery crops are included, specialty crops account for
approximately 50% of all U.S. cash receipts of farm crops.3
Despite their relatively large share of crop receipts, specialty crops occupy only about 3% of U.S.
harvested cropland. Although certain states and regions are predominant, nearly every state has
some commercial specialty crop production within its borders. Figure 1, Figure 2, and Figure 3
illustrate the distribution, nationwide, of areas producing fruits, vegetables, tree nuts, and nursery

1 For background information on all federal programs affecting specialty crops, see CRS Report RL32746, Fruits,
Vegetables, and Other Specialty Crops: A Primer on Government Programs, by Jean M. Rawson.
2 For information on the relationship between international trade negotiations and U.S. farm policy, see CRS Report
RS21905, Agriculture in the WTO Doha Round: The Framework Agreement and Next Steps, by Charles E. Hanrahan.
3 Fruit and Vegetable Backgrounder (USDA, Economic Research Service, April 2006) is the source for all the
statistical information in this section. It is available online at http://www.ers.usda.gov/.
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crops, shown as percentages of the total market value of agricultural products sold (including
livestock).4
About three-fourths of growers are considered specialized, which means that they receive at least
half of their gross value of production from the sale of fruits, vegetables, tree nuts or horticultural
crops. According to ERS survey data, specialized farms account for 95% of the total value of U.S.
specialty crop production, although more than half of them have annual sales of less than
$250,000 and identify off-farm income as their primary means of support. Specialized farms may
produce one or two other commodities in addition to their specialty crop, according to ERS, and
about 15% of them also participate in the major commodity support programs.
The remaining 5% of the value of U.S. specialty crop production comes from non-specialized
fruit and vegetable farms, which may produce as many as four other commodities (often
including livestock) besides their specialty crop. Nearly half of these farms grow one or more of
the major commodity crops and participate in the price and income support programs, according
to ERS.
Vegetables, dry beans, and potatoes—for processing—are grown primarily on large-acreage, non-
specialized commercial farms. California is the overwhelming leader in production, but certain
states in the Northeast, Central and Upper Midwest, and Pacific Northwest also are major
producers.
Figure 1. Value of Vegetables, Melons, Potatoes, and Sweet Potatoes
as Percent of Total Market Value of Agricultural Products Sold: 2002

Source: U.S. Department of Agriculture, National Agricultural Statistics Service (02-M021)

4 The maps show the value of specialty crops as a percent of total market value of all agricultural products sold,
including livestock. Data from ERS’s Fruit and Vegetable Backgounder, cited above in this section, compare specialty
crop values to other crop values.
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Figure 2. Value of Fruits, Tree Nuts, and Berries as Percent of
Total Market Value of Agricultural Products Sold: 2002

Source: U.S. Department of Agriculture, National Agricultural Statistics Service (02-M022)
Figure 3. Value of Nursery, Greenhouse, Floriculture, and Sod
as Percent of Total Market Value of Agricultural Products Sold: 2002

Source: U.S. Department of Agriculture, National Agricultural Statistics Service (02-M023)
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Selected Issues and Their Status in the Enacted 2008
Farm Bill5
The Appendix compares the horticulture and organic production policies set in the 2002 farm bill
(P.L. 107-171) with the provisions in the House- and Senate-passed farm bill (H.R. 2419) and the
enacted Food, Conservation, and Energy Act of 2008 (P.L. 110-246).
Planting Flexibility6
A persistent issue for the specialty crop industry is the status of continuation of a policy set in
previous farm bills that restricts the ability of participants in the farm income and commodity
price support programs to plant fruits and vegetables on acres on which they receive benefits
(base acres). Congress first inserted this provision in the 1996 farm act (P.L. 104-127), after it had
adopted a proposal to allow producers of program crops to respond to market signals and grow
different crops on base acreage. The restriction was extended through 2007 by the 2002 farm bill.
Specialty crop producers, in general, have maintained since 1996 that allowing program crop
producers to switch even small numbers of acres to fruits or vegetables would negatively affect
markets, and thus growers’ annual income. In 2005, a World Trade Organization (WTO)
challenge to U.S. farm commodity programs raised questions concerning the use of the planting
flexibility restriction under existing trade commitments.7 Discussion on whether to extend the
restriction in the next farm bill thus has an important trade policy aspect as well as domestic
market aspect.
A number of reports have been issued since late 2006 that examine the possible effects on
domestic fruit and vegetable producers of eliminating the planting restriction. These analyses
suggest that the adverse effects of removing the restriction likely would be small relative to the
overall industry, although there could be larger impacts on individual producers, commodities,
and regions.
In the Enacted Bill
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246) maintains the 2002 farm bill
provision restricting the planting of fruits and vegetables on base acres. However, the act
authorizes a pilot project in seven midwestern states that will allow fruits and vegetables—
exclusively for processing—to be planted on 75,000 base acres. USDA is required to evaluate and
report to Congress on the impact the pilot project is having on the price and supply of both fresh
and processed fruits and vegetables.

5 For a comparison of the provisions in P.L. 110-246 with the provisions in the House and Senate bills, and with
previous law, see CRS Report RL34696, The 2008 Farm Bill: Major Provisions and Legislative Action, by Renée
Johnson et al.
6 For detailed analysis of this issue, see CRS Report RL34019, Eliminating the Planting Restrictions on Fruits and
Vegetables in the Farm Commodity Programs, by Renée Johnson and Jim Monke.
7 For more detailed information and analysis of this issue, see CRS Report RS22187, Brazil’s WTO Case Against the
U.S. Cotton Program: A Brief Overview, by Randy Schnepf and CRS Report RL33697, Potential Challenges to U.S.
Farm Subsidies in the WTO, by Randy Schnepf.
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Government Purchases for Nutrition Programs
USDA directly purchases and then donates a variety of non-price supported commodities,
including fruit, vegetable, and tree nut products, for consumption through domestic nutrition and
food assistance programs. These purchases and donations help groups of nutritionally vulnerable
recipients (such as low-income school children, participants at family child care homes, and
others) to eat a healthy diet and avoid hunger, while also helping to balance supply and demand
for various commodities.
In the Enacted Bill
Section 10603 requires USDA to purchase additional fruits, vegetables, and nuts for nutrition
assistance programs, above the traditional purchases of $200 million per year. USDA must
purchase an additional $190 million in FY2008; $193 million in FY2009; $199 million in
FY2010; $203 million in FY2011; and $206 million in FY2012 and thereafter. Section 10101
requires the Secretary to arrange for an independent evaluation of USDA’s purchasing process in
order to ensure that the funds are principally devoted to procuring fresh fruits and vegetables.
The enacted bill also creates a new program to provide fresh fruits and vegetables to elementary
schools, replacing a program that began as a pilot project in a limited number of states. The new
program will operate in all states, in those elementary schools that the state designates. The act
provides mandatory funding of $40 million in October 2008; $65 million in July 2009; $101
million in July 2010; and $150 million in July 2011. Funding in future years will be indexed for
inflation. Half of the annual funding will be divided equally among the states, and the remaining
half will be allocated under a formula based on population.
Market Expansion Through Promotion Programs
A key provision of the Specialty Crops Competitiveness Act of 2004 (P.L. 108-465), which was
the first law that Congress passed on specialty crop policies specifically, was the authorization,
through FY2009, of a program of block grants to states to support projects in research, marketing,
education, pest and disease management, production, and food safety. In most states, the state
department of agriculture administers this program. The act authorized $44.5 million in annual
appropriations for the program; Congress appropriated $7 million in each of FY2006-FY2008.
Expansion of this program and an effort to provide mandatory funding for it was a major focus in
the farm bill debate. Specialty crop interests have consistently urged Congress to provide
mandatory funds for the block grant program, arguing that the government should increase its
investment in the sector in light of its value to U.S. agriculture as a whole. However, producer
groups and lawmakers from states where commodity crops predominate were not in favor of
redirecting money to support other programs if it meant reducing the current level of support for
the commodity programs.
In the Enacted Bill
Title X of P.L. 110-246 extends the program of block grants to states and provides mandatory
funding for the program totaling $224 million over the five-year farm bill period. Congress did
not redirect commodity program funds to support the block grant program. The House bill would
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have provided $365 million in mandatory funding; the Senate bill would have provided $270
million from FY2008 through FY2011.
The rural development title of P.L. 110-246 reauthorizes and provides $15 million in mandatory
funding for the Value-Added Producer Grants program that was created by the Agricultural Risk
Protection Act of 2000 (P.L. 106-224). The program makes planning grants and provides working
capital for marketing value-added agricultural products. The new act stipulates that 10% of the
funding be set aside for beginning and socially disadvantaged farmers and ranchers, and that
another 10% be reserved to help small and medium-sized farm operations make marketing
alliances with other segments of the supply chain. Organic producers also are eligible to receive
these grants.
The trade title of the conference agreement provides $37 million in mandatory funding over a
five-year period for Technical Assistance for Specialty Crops (TASC), a program that helps
exporters of U.S. specialty crops overcome other countries’ non-tariff trade barriers, particularly
those associated with plant pest and disease concerns.
The trade title also maintains mandatory funding for the Market Access Program (MAP) at $200
million annually, and specifies that organically produced commodities are eligible for marketing
assistance. MAP is a cost-share program between USDA and commodity organizations or
agribusinesses to promote U.S. agricultural products overseas.
Disease and Pest Protection
Stakeholders traditionally have expressed the concern that efforts to identify and mitigate the
effects of existing pest and disease threats and to prevent the importation of new ones need to be
strengthened. H.R. 1600 (the EAT Healthy America Act, introduced in early 2007) included
provisions to establish a new program of cooperative agreements with states to conduct early pest
detection activities, and to return the import and entry agricultural inspection functions to USDA
from the Department of Homeland Security, where they were transferred in 2003. The latter
provision was dropped in both the House and Senate bills, but other significant pest and disease
provisions were retained in the conference agreement.
In the Enacted Bill
Title X of P.L. 110-246 establishes a cooperative federal-state program for early pest detection
and surveillance and for threat identification and mitigation. The act provides mandatory funding
of $12 million for FY2009, $45 million in FY2010, and $50 million annually in FY2011 and
FY2012. Bill language prohibits USDA from considering the availability of non-federal funds in
the states’ applications for federal funds.
Title X contains additional provisions relating to pest and disease control. Section 10202 provides
$5 million annually in mandatory funds over four years to establish a National Clean Plant
Network to grow pest- and disease-free planting stock for the specialty crop industry. Section
10203 amends the Plant Protection Act (PPA; 7 U.S.C. 7701 et seq.), the act authorizing USDA’s
Animal and Plant Health Service’s activities on the plant health, to increase the penalties for
violating the PPA, expand the violations for which penalties are assessed, and clarify subpoena
authorities under the PPA.
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Research
In hearings before the farm bill debate, specialty crops producers and trade associations argued
strongly in favor of increasing federal expenditures for specialty crop research. They maintained
that research provides critical support for the industry, without risking challenges under
international trade rules. The EAT Healthy America Act (H.R. 1600) and the Administration’s
farm bill proposal called for using mandatory funds to substantially increase agricultural research
on the production and economics of specialty crops.
In the Enacted Bill
The research title of P.L. 110-246 (Title VII) provides $230 million in mandatory funds for a
specialty crop research initiative over the five-year farm bill period and also authorizes annual
appropriations of $100 million. This amount is greater than that provided in the House and Senate
bills ($215 million and $80 million, respectively.) Five subject areas for research—crop
improvement, identification of pest and disease threats, production efficiency, improved
technologies, and prevention and detection of food safety hazards—are identified to each receive
at least 10% of the grant funds. Recipients must commit to providing a 100% match, either in
funds or in-kind support.
Organic Agriculture
The National Organic Certification Cost-Share Program, which was established by the 2002 farm
bill, authorized a one-time, mandatory transfer of $5 million from the Commodity Credit
Corporation (CCC) with which USDA helped to defray the costs of producers and handlers
seeking organic certification. There was a $500 maximum on the amount a producer could
receive, and the federal share could not account for more than 75% of a producer’s total costs.
The transfer occurred in FY2002 and remained available until fully expended, which was in fall
2006. Certain of the farm bill proposals that were introduced or released early in 2007 called for a
substantial expansion of this program. Some early farm bill proposals also contained a provision
to make technical assistance available to farmers wanting to convert their operations from
conventional to organic practices, and to reimburse transition costs up to $10,000 per farm or
handling operation.
In the Enacted Bill
Section 10301 extends the certification cost-share program, provides a one-time transfer of $22
million in mandatory funds to be available until expended, and raises the maximum amount that a
producer or handler can receive to $750. Conferees deleted the requirement that the federal share
of a producer or handler’s certification not exceed 75%. The enacted bill also provides $5 million
in mandatory funding to improve USDA’s collection of segregated data and survey information
about the price, production, and marketing of major organically produced commodities. The bill
contains a detailed list of required data sets, studies, and market surveys, and authorizes an
additional $25 million in appropriations over the five-year farm bill period to maintain support for
these activities.
The enacted bill adds language to the conservation title (Title II) to establish that producers are
eligible for technical assistance under the Environmental Quality Incentives Program (EQIP) for
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converting their farm to organic production. Efforts to authorize a $50 million program in the
farm bill specifically for this purpose were not successful. The bill increases mandatory funding
for all activities under EQIP by $3.4 billion.
The 1990 farm bill established an organic agriculture research and extension initiative supported
by $3 million annually in mandatory funding. The enacted bill provides $78 million in mandatory
funds over the FY2009-FY2012 period for this initiative, and also authorizes annual
appropriations of $25 million.
Additional Provisions
The enacted bill contains a number of provisions addressing other issues of importance to the
horticulture and organic agriculture communities. Among these are provisions to:
• increase the amount that orchardists and nursery tree growers can receive in
payments for weather-related losses under the Tree Assistance Program from
$75,000 to $100,000;
• authorize increasing appropriations for USDA’s National Organic Program
Office, starting at $5 million in FY2008 and rising to $11 million in FY2012, for
the purpose of improving program efficiency and regulatory oversight activities;
• expand the Farmers’ Market Promotion Program with $33 million in mandatory
funds over the five-year term of the farm bill;
• establish a Healthy Food Enterprise Development Center with $5 million in
mandatory funds to make competitive grants to entities that will increase low-
income families’ access to healthy affordable foods;
• authorize $1 million in annual appropriations for a program to educate consumers
and handlers of fresh produce on science-based sanitary handling methods;
• authorize $9 million in annual appropriations to support market news and price
information on specialty crops; and
• authorize $10 million in annual appropriations for grants to conduct research on
honeybee colony collapse disorder.
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Appendix. Major Provisions of the Enacted 2008 Farm Bill (P.L. 110-246)
Compared with Previous Law and House- and Senate-Passed Bills (H.R. 2419)
Prior Law/Policy
House-Passed Bill
Senate-Passed Substitute
Enacted 2008 Farm Bill
(H.R. 2419)
Amendment (H.R. 2419)
(P.L. 110-246)
“Farm Security and Rural Investment
“Farm, Nutrition, and Bioenergy Act of
“Food and Energy Security Act of 2007”
“Food, Conservation, and Energy Act of
Act of 2002” [7 U.S.C. 7901 note]
2007” [Sec. 1]
[Sec. 1]
2008” [P.L. 110-246]
Title X: Horticulture and Organic Production
Marketing and Trade Promotion, Consumer Access
No comparable provision.
No comparable provision.
Sets definitions to apply throughout one of Adopts Senate provision with an amendment
the bill’s subtitles the terms “specialty
to remove the definition of the term “State.”

crop,” “state,” and “state department of
[Sec. 10001]
agriculture.” [Sec. 1801]
No comparable provision.
Requires an independent evaluation of
No comparable provision.
Adopts House provision with changes to
the commodity purchasing processes
require the Secretary to arrange an
and the importance of increasing
independent evaluation of the purchasing
purchases of specialty crops. [Sec.
processes used by USDA to implement the
10104]
requirement that funds available under
Section 32 be principal y devoted to
perishable agricultural commodities. [Sec.
10101]
The Specialty Crops Competitiveness
Reauthorizes the block grant program
Contains an identical provision, except
Adopts House provision with changes to
Act of 2004 [P.L. 108-465, 7 U.S.C.
through FY2012 and provides
that funding ends after FY2011. Specifies
specify that any funds made available for a
1621 note] established a program of
mandatory funding starting at $60
that turfgrass sod and herbal crops also
fiscal year under the program that are not
block grants to states to support
million in FY2008, rising to $95 million
are specialty crops. [Sec. 1841]
expended by certain date, to be determined
projects in marketing, research, pest
in FY2012. Increases the number of U.S.
by USDA, will be reallocated to other States;
management, and food safety, among
insular areas eligible to receive grants.
change the minimum grant amount to
other purposes. Authorizes $44.5
[Sec. 10102]
$100,000 or one-third of 1% of the overal
million annually through FY2009.
funding allocated to the program in a given
fiscal year (whichever is higher). Provides
mandatory funding: $10 million (FY2008);
$49 million (FY2009); and $55 million
annual y (FY2010-2012). [Sec. 10109]
The Farmer-to-Consumer Direct
Expands types of activities eligible for
Reauthorizes the Farmers’ Market
Adopts Senate provision with an amendment
Marketing Act established a Farmers’
funding. Renames program the Farmer
Promotion Program and provides
to specify that 10% of the funds available to
Market Promotion Program to
Marketing Assistance Program. Provides mandatory funds of $5 million annually in
carry out the program be used to implement
promote farmers’ markets, authorizing
annual mandatory funds of $5 million
FY2008-FY2011, and $10 million in
electronic benefit transfer systems at
CRS-9

Prior Law/Policy
House-Passed Bill
Senate-Passed Substitute
Enacted 2008 Farm Bill
(H.R. 2419)
Amendment (H.R. 2419)
(P.L. 110-246)
annual appropriations for grants to
(FY2008-FY2010) and $10 million
FY2012. [Sec. 1812]
farmers’ markets; and to specify mandatory
local governments and nonprofit
(FY2011-FY2012). [Sec. 10404]
funding: $3 million (FY2008); $5 million
organizations. [7 U.S.C. 3005]
annually (FY2009-FY2010); $10 million
annual y (FY2011-FY2012). [Sec. 10106]
No comparable provision.
Authorizes grants to a variety of public
Similar to the House bill, but with minor
Adopts House provision with changes to
and private entities to improve
technical differences. [Sec. 1842]
allow national/state/regional organizations of
transporting specialty crops to markets.
producers, shippers or carriers to be eligible
for grants. [Sec. 10403]
No comparable provision.
No comparable provision.
Requires the Government Accountability
Deletes Senate provision.
Office (GAO) to investigate the impact on
specialty crops of lowering foreign trade
barriers and to prepare a strategy for
addressing the issue. [Sec. 1831]
No comparable provision.
No comparable provision.
Encourages USDA and the U.S. Trade
Deletes Senate provision.
Representative to increase attention to
sanitary and phytosanitary trade issues,
and to develop a strategic risk
management framework. [Sec. 1833]
No comparable provision.
Establishes a grant program entitled the
Authorizes a grant program to establish a
Adopts Senate provision with changes to
Healthy Food Urban Enterprise
Healthy Food Enterprise Development
place language for the Healthy Urban Food
Program to support feasibility studies
Center, providing information and
Enterprise Development Center within the
on improving the access of underserved technical assistance to entities to make
Community Food Projects statute. Clarifies
communities to affordable, locally
affordable, locally produced, nutritious
that subgrants may be used to establish and
produced, nutritious food. Authorizes
food available in underserved
facilitate enterprises that process, distribute,
annual appropriations for this purpose.
communities. Provides $1 million in
aggregate, store, and market healthy
[Sec. 10405]
mandatory funds (FY2009); $2 million
affordable foods. Limits allocations for
annual y (FY2010-12). [Sec. 1843]
administrative expenses. Provides $1 million
in funding annual y (FY2009-2011) and
authorizes $2 million (FY2012). [Sec. 4402]
Organic Agriculture Production
The 2002 farm bil established a cost-
Provides a one-time transfer (FY2008)
Similar to the House bill, and requires an
Adopts Senate provision but deletes the cap
share program to help producers and
of $22 million in mandatory funds to
annual report to the House and Senate
on the federal cost share. [Sec. 10301]
handlers of organic products obtain
continue the cost-share program, caps
Agriculture Committees on cost-share
certification under the National
the federal share of certification cost at
expenditures in each state. [Sec. 1823]
Organic Program (NOP), and provided no more that 75%, and raises the
a one-time transfer of $5 million in
maximum amount a producer can
mandatory crop insurance funds. [7
receive from $500 to $750. [Sec.
CRS-10

Prior Law/Policy
House-Passed Bill
Senate-Passed Substitute
Enacted 2008 Farm Bill
(H.R. 2419)
Amendment (H.R. 2419)
(P.L. 110-246)
U.S.C. 1524]
10301]
The 2002 farm bill required USDA to
Provides $3 million in mandatory CCC
Similar to the House bill and provides a
Adopts Senate provision with changes to
keep segregated data on organic
funds to support data col ection and
one-time transfer of $5 million for
clarify USDA’s data collection, analysis, and
production and marketing. [7 U.S.C.
analysis on organic production,
segregated data collection and analysis.
survey development requirements, and to
5925c]
marketing, pricing, and crop loss risk.
[Sec. 1821]
specify the contents of USDA’s report to the
[Sec. 10302]
House/Senate Agriculture Committees.
Provides $5 million in mandatory funding,
with an additional authorization of
appropriations of $25 million (FY2008-2012),
further specifying that $3.5 million in funding
be allocated to AMS to collect and distribute
comprehensive reporting of prices relating
to organically produced agricultural
products. [Sec. 10302]
No comparable provision.
Authorizes $50 million subject to
Provides for technical assistance and cost-
Deletes House provision, but includes
appropriations over the life of the farm
sharing under the Environmental Quality
language addressing the goal of providing
bill to provide technical assistance and
Incentives Program (EQIP) to producers
technical assistance to farmers transitioning
cost-sharing grants to producers
seeking to convert to organic production.
to organic farming under the EQIP program
seeking to convert from conventional
[Sec. 2361] Authorizes grants for this
[Sec. 2501] of the conservation title.
to organic production. [Sec. 10303]
purpose under the Beginning Farmer and
Rancher Development Program. [Sec.
7309]
Assessments are exempted under
No comparable provision.
Allows producers who have part of their
Deletes Senate provision.
marketing orders for conventionally-
farm certified organic under the NOP to
grown fruits and vegetables, for
receive the exemption. [Sec. 1822]
producers whose operations are 100%
organic. [7 U.S.C. 7401]
The Organic Foods Production Act of
No comparable provision.
Specifies increased authorized annual
Adopts Senate provision with changes to
1990 authorizes appropriations of such
funding levels for the NOP, starting at $5
provide such additional sums as are
sums as necessary for the National
million in FY2008 and rising to $11 million
necessary. [Sec. 10303]
Organic Program. [7 U.S.C. 6522]
in FY2012. [Sec. 1824]
No comparable provision.
Provides grants using Section 32 funds
No comparable provision.
Deletes House provision.
(7 U.S.C. 612c) to help urban gardening
and greenhouse projects to purchase
and operate organic fruit and vegetable
gardens and greenhouses. [Sec. 10103A]
CRS-11

Prior Law/Policy
House-Passed Bill
Senate-Passed Substitute
Enacted 2008 Farm Bill
(H.R. 2419)
Amendment (H.R. 2419)
(P.L. 110-246)
Pest and Disease Control
No comparable provision.
Establishes a cooperative program with
Similar to the House bill, with technical
Adopts Senate provision with changes to
state agriculture departments to
differences. Provides mandatory funds
describe the application process; prohibit
conduct early pest detection and
starting at $10 million (FY2008), rising to
USDA from considering nonfederal funds;
surveillance activities and create action
$64 million (FY2012). [Sec. 12101(f)]
direct USDA to consider risk factors when
plans, among other things. Provides
considering an application; and express
mandatory funds starting at $10 million
disapproval of a cost-sharing rule for animal
(FY2008), rising to $70 million
and health emergency programs. Specifies
(FY2012).
mandatory funds: $12 million (FY2009); $45
[Sec. 10201]
million (FY2010); $50 million (FY2011); and
$50 million (FY2012). [Sec. 10201]
No comparable provision.
Authorizes the appropriation of $15
No comparable provision.
Deletes House provision.
million for the construction of a sterile
fruit fly rearing facility in Waimanalo,
Hawaii, and the appropriation of $1
million annually thereafter. [Sec. 10202]
No comparable provision.
Authorizes the appropriation of
Similar to the House bill, with technical
Adopts Senate provision with an amendment
necessary funds through FY2012, in
differences. [Sec. 1851]
to add NLGCA institutions to the list of
addition to $20 million annually in
entities that USDA shal consult with to
mandatory funds, to create a National
carry out the program. Specifies mandatory
Clean Plant Network where the
funding: $5 million annually (FY2009-2012).
specialty crop industry can obtain pest-
[Sec. 10202]
and disease-free planting stock. [Sec.
10404]
The Plant Protection Act (PPA) [7
No comparable provision.
Modifies penalties in the PPA as follows:
Adopts Senate provision with changes to
U.S.C. 7701 et seq.] authorizes USDA’s
$500,000 for each violation adjudicated in
strike the change to the statute of
Animal and Plant Health Inspection
a single proceeding; $1,000,000 for each
limitations, to expand the penalties to cover
Service (APHIS) to cooperate with
violation adjudicated in a single proceeding any willful violation of the PPA, and to clarify
states, localities and others to prevent
involving a genetically modified organism.
subpoena authorities of USDA under the
the spread of and eradicate invasive
Requires an action, suit or proceeding
PPA. Modifies the ability of the executive
pests and diseases.
regarding a violation of the PPA to be
branch to delay the provision of
considered no later than 5 years after the
compensation for economic losses. [Sec.
date the violation is initially discovered by
10203]. Identical amendments were made to
USDA. [Sec. 11017]
the Animal Health Protection Act in the
livestock title. [Sec. 11012]

The PPA [7 U.S.C. 7701 et seq.]
No comparable provision.
Requires USDA, no later than 18 months
Adopts Senate provision, with modification.
authorizes USDA’s activities under the
after enactment, to take action on each
[Sec. 10204]
CRS-12

Prior Law/Policy
House-Passed Bill
Senate-Passed Substitute
Enacted 2008 Farm Bill
(H.R. 2419)
Amendment (H.R. 2419)
(P.L. 110-246)
Federal Coordinated Framework for
issue identified in the document “Lessons
the Regulation of Biotechnology.
Learned and Revisions under Consider-
APHIS regulated the importation,
ation for APHIS’ Biotechnology Frame-
interstate movement, and field testing
work,” dated October 4, 2007; and as
of genetically engineered organisms
USDA considers appropriate, to
that may pose a plant risk.
promulgate regulations to improve the
management and oversight of articles
regulated under the PPA, among other
specified action items. [Sec. 11077]
Food Safety Provisions
The Agricultural Adjustment Act
Authorizes the implementation of
No comparable provision.
Deletes House provision.
governs the terms and conditions of
quality-related food safety programs
marketing orders applicable to
under marketing orders for specialty
specified commodities. [7 U.S.C.
crops. [Sec. 10106]
608c(6)]
No comparable provision.
Authorizes appropriation of necessary
Similar to the House bill, and authorizes
Adopts Senate provision, authorizing
sums to implement a program to
$1 million in annual appropriations for that appropriations of $1 million annually
educate fresh produce industry
purpose. [Sec. 1813]
(FY2008-2012) to remain available until
personnel and consumers about ways
expended. [Sec. 10105]
to reduce pathogens in fresh produce.
[Sec. 10110]
Disaster Assistance
The 2002 farm bill established the Tree Makes nursery tree growers eligible for
Makes nursery tree growers eligible for
Adopts Senate provision with changes to
Assistance Program to compensate
disaster assistance under the program,
disaster assistance, increases the limit on
modify the reimbursement cost of replanting
commercial orchardists for losses due
increases the limitation on annual
annual assistance to $100,000, adds
trees lost from a natural disaster; amend the
to natural disasters and authorized
assistance from $75,000 to $150,000,
reimbursement for orchard management
Federal Crop Insurance Act with a provision
annual appropriations for the program. and continues appropriations authority.
to repair losses, and provides necessary
identical to that in the Trade Act of 1974;
[7 U.S.C. 8201]
[Sec. 10101]
mandatory funding over the life of the
and to make other technical changes. The
farm bill. [Sec. 1210(e)]
Manager’s report clarifies the insurance
requirement for eligibility applies only to
insurance on crops and not underlying
vines/trees. [Secs. 12033 and 15101]
Specialty Crop Sector Data Collection
No comparable provision.
Authorizes necessary funds through
Authorizes $9 million annually in funds to
Adopts Senate provision with changes to
FY2012 to support the col ection and
support market news and price
authorize appropriations $9 million annually
dissemination of market news for
information on specialty crops. [Sec. 1811] (FY2008-2012) to remain available until
expended, in addition to available annual
CRS-13

Prior Law/Policy
House-Passed Bill
Senate-Passed Substitute
Enacted 2008 Farm Bill
(H.R. 2419)
Amendment (H.R. 2419)
(P.L. 110-246)
specialty crops. [Sec. 10402]
appropriations for market news services.
[Sec. 10107]
The 1997 Census of Agriculture Act
Amends the 1997 law to include a
Allows USDA to include a census of
Adopts House provision. [Sec. 10103]
(P.L. 105-113) authorizes a Census of
census of specialty crops as part of the
specialty crops in the Census or to
Agriculture to be taken every 5 years.
Census of Agriculture. [Sec. 10107]
conduct a separate census of specialty
[7 U.S.C. 2204g(a)]
crops not later than the end of FY2008
and every 5 years thereafter. [Sec. 1814]
Other Commodity-Specific Provisions
No comparable provision.
Requires USDA to submit a report on
No comparable provision.
Deletes House provision.
the investigation of honey bee colony
collapse disorder and strategies to
combat the problem. [Sec. 10001]
The Honey Research, Promotion, and
No comparable provision.
Amends the Honey Research, Promotion,
Adopts Senate provision with changes to
Consumer Information Act (P.L. 98-
and Consumer Information Act with
discontinue the current Honey Board after
590), as amended, provides for
provisions regarding the Honey Board and USDA conducts a referendum for honey
coordinated research, promotion, and
referenda on the honey research and
producers or honey packers, importers and
consumer information to expand their
promotion order.
handlers. Requires USDA to act as a
markets for honey.
[Sec. 1854]
fiduciary in conducting the referenda. [Sec.
[7 U.S.C. 4601 note]
10401]
No comparable provision.
No comparable provision.
Amends 7 U.S.C. 1622(h) to require the
Adopts Senate provision with changes to
USDA grading or inspection mark be
specify that violations of the labeling
located close to the country of origin label requirements of this section, with respect to
on packaged honey. [Sec. 1855]
honey, may be deemed by USDA as
sufficient cause for debarment from the
benefits of the Agricultural Marketing Act of
1946. [Sec 10402]
The Agricultural Adjustment Act
Adds clementines to the list of
Similar to the House bill. [Sec. 3207]
Adopts the House and Senate provision.
requires that imported commodities
commodities to which this requirement
[Sec. 10102]
that are under marketing orders in the
applies. [Sec. 10105]
U.S. meet the order’s standards. [7

U.S.C. 608e-1(a)]
The Agricultural Marketing Act of
Adds a section to the 1946 act to
Authorizes USDA to initiate the process
Adopts Senate provision. [Sec. 10108]
1946 governs research and marketing
regulate the minimum maturity of all
of establishing a marketing order
programs for agricultural products. [7
Hass avocados sold in the United
regulating the grades and standards of
U.S.C. 1641]
States. [Sec. 10108]
Hass avocados, if a U.S. organization
submits such a proposal. [Sec. 1856]
CRS-14

Prior Law/Policy
House-Passed Bill
Senate-Passed Substitute
Enacted 2008 Farm Bill
(H.R. 2419)
Amendment (H.R. 2419)
(P.L. 110-246)
A 1990 law contains the terms and
Makes changes to the geographic
Similar to the House bill, with technical
Adopts House provision with changes to
conditions of the mushroom marketing composition of the Mushroom Board,
differences. [Sec. 1853]
clarify that the mushroom council may
order. [7 U.S.C. 6104]
and other provisions.
develop and propose to USDA programs for
[Sec. 10109]
good agricultural and good handling practices
and related activities for mushrooms. [Sec.
10104]
No comparable provision.
No comparable provision.
Establishes a program to compensate
Adopts Senate provision. [Sec. 10404]
asparagus growers for losses in 2004-2007
due to imports. Provides $15 million in
mandatory funds for this purpose. [Sec.
1852]
The 2002 farm bill did not include a
Creates new farm bill title, Horticulture
No new title; includes most horticulture
Creates new farm bill title, Horticulture and
separate title for horticultural products and Organic Agriculture (Title X).
and organic agriculture provisions as part
Organic Agriculture (Title X).
or organic production.
of the Commodity Title I.

CRS-15

Specialty Crops: 2008 Farm Bill Issues

Author Contact Information

Renée Johnson

Specialist in Agricultural Policy
rjohnson@crs.loc.gov, 7-9588

Acknowledgments
This report is an updated and revised version of a report originally written by former CRS specialist Jean
M. Rawson.

Congressional Research Service
16