A new USDA study is sure to stir a hornet's nest.(SPECIALTY CROPS)

Kiplinger Agriculture Letter, The, November, 2006

A new USDA study is sure to stir a hornet's nest in Congress as lawmakers take up debate on a new farm bill next year. It will also gain notice in global discussions about farm subsidies.

Despite a ban on growing specialty crops on subsidized acres... land used for grains, oilseeds, cotton and other "program" crops...

The USDA report says the constraint is having little effect. Of all specialty crops...vegetables, fruits, nuts and nursery crops... 54% are being raised on farms with subsidized acres. That includes about 80% of vegetables, USDA says. And this applies to a huge wedge of agriculture: Specialty crops are over half of all crops by value.

What gives? USDA analysts offer several points of explanation:

Farmers with program...

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