How USDA Policy Helps Strangle Local Small-Scale Fruit & Vegetable Farming - NYT OP-ED

[hatrack]

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As a small organic vegetable producer in southern Minnesota, I know this because my efforts to expand production to meet regional demand have been severely hampered by the Agriculture Department’s commodity farm program. As I’ve looked into the politics behind those restrictions, I’ve come to understand that this is precisely the outcome that the program’s backers in California and Florida have in mind: they want to snuff out the local competition before it even gets started.

Last year, knowing that my own 100 acres wouldn’t be enough to meet demand, I rented 25 acres on two nearby corn farms. I plowed under the alfalfa hay that was established there, and planted watermelons, tomatoes and vegetables for natural-food stores and a community-supported agriculture program. All went well until early July. That’s when the two landowners discovered that there was a problem with the local office of the Farm Service Administration, the Agriculture Department branch that runs the commodity farm program, and it was going to be expensive to fix.

The commodity farm program effectively forbids farmers who usually grow corn or the other four federally subsidized commodity crops (soybeans, rice, wheat and cotton) from trying fruit and vegetables. Because my watermelons and tomatoes had been planted on “corn base” acres, the Farm Service said, my landlords were out of compliance with the commodity program.

I’ve discovered that typically, a farmer who grows the forbidden fruits and vegetables on corn acreage not only has to give up his subsidy for the year on that acreage, he is also penalized the market value of the illicit crop, and runs the risk that those acres will be permanently ineligible for any subsidies in the future. (The penalties apply only to fruits and vegetables — if the farmer decides to grow another commodity crop, or even nothing at all, there’s no problem.) In my case, that meant I paid my landlords $8,771 — for one season alone! And this was in a year when the high price of grain meant that only one of the government’s three crop-support programs was in effect; the total bill might be much worse in the future.

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http://www.nytimes.com/2008/03/01/opinion/01hedin.html?em&ex=1204606800&en=dd5832c47ea07bc0&ei=5087%0A