Congress funds grapegrowers; Farm Bill funds research, pest prevention and more

Wines & Vines, July, 2008 by Bill Nelson

The latest U.S. Farm Bill, which defines farm policy for a period of five years, for the first time seriously addresses the needs of specialty crop producers--including those of grapes and wine. The legislation includes numerous new assistance opportunities for specialty crop industry needs, including marketing, research and pest management. These provisions form a basis for partnerships involving industry members and organizations, the U.S. Department of Agriculture, state agriculture departments and universities. Those best able to form creative partnerships will be at an advantage for tapping the new funding sources.

The following descriptions of Farm Bill provisions contain mentions of "mandatory" and "authorized" funding. Congressional committees typically authorize funding subject to action by appropriations committees, which pass annual spending bills. Exceptions include mandatory funding, which usually is based on a funding formula. About three-quarters of USDA spending is mandatory, including crop subsidies, food stamps, nutrition, conservation reserve (CRP), and now specialty crop grants and research. This is good news for the wine industry, as Congress has made a powerful statement in favor of new spending to support the needs of specialty crop farmers.

However, in the last few years the appropriations committees have resorted to a process cleverly called "chimping," which stands for "changes in mandatory programs." Committees determine that certain mandatory funds won't be spent, thereby gaining more funds than have been allocated to them by the budget resolution. So while the funding gains made by specialty crops in the Farm Bill are significant and very helpful, industry representatives will need to work hard to preserve these gains throughout the yearly appropriations processes.

The five-year bill, which will expire at the end of fiscal year 2012, contains several provisions of great importance to the table grape and wine industries. A major achievement of SCFBA lobbying was the first-time inclusion in the Farm Bill of a "horticulture and organic" title. This title addresses important needs of all specialty crop farmers, including block grants, the National Clean Plant Network, and important pest and disease control provisions.

Specialty crop block grants to the states

The centerpiece of the horticulture title is significant funding for specialty crop block grants to the states, administered by state departments of agriculture, to improve the competitiveness of specialty crops. Block grants will have mandatory funds of $224 million over five years. These funds will be disbursed to the states with a per-state minimum of $100,000, or one-third of 1%, whichever is greater, with the remainder allocated proportionally to the size of each state's specialty crop industry.

The Specialty Crop Block Grant program now has mandatory funding levels that are greater than any since the program first was funded in 2001. That year, it was a one-time program that received a funding infusion of $133 million. The Specialty Crop Block Grants have been funded through appropriations the last three years, receiving approximately one-fifth of the funding provided in the new Farm Bill. These grants previously have been used for marketing, research, wine trails, establishing wine and cuisine partnerships, development of online educational manuals for new and existing wineries and growers, procurement of more efficient wine processing equipment and other projects to help industry producers.

Since the states will be awarding grants, it is absolutely critical that state wine and grape industries make a concerted effort to contact their state departments of agriculture, develop strong relationships, stress the importance of industry priorities and mutually develop strategies for supporting the growth and profitability of each state's wine and grape industry. The stronger the cases that are made, and the closer industries coordinate with their states, the better the chances of receiving a grant.

Other avenues for states to explore are multi-state and regional projects. The Farm Bill conference report specifically mentions the need for solutions to problems that cross state boundaries, such as those that address good agricultural practices, research on crop productivity or quality and pest and disease management. It asks the USDA to give strong consideration to grant applications that involve multi-state or regional partnerships. Additionally, the conference report requests that USDA keep these types of proposals in mind when reallocating the unobligated block grant funding.

National Clean Plant Network

The bill establishes a new National Clean Plant Network, with $20 million in mandatory funding over five years. This network will be made up of clean plant centers for diagnostic and pathogen-elimination services to produce clean plant material--including vines for propagation--and maintain blocks of pathogen-tested plant material in sites located throughout the United States. The clean plant material will be made available to states for certified plant programs, as well as to private nurseries and growers.