Specialty crops such as fruits and vegetables gained considerable support with the authorization of the 2014 Farm Bill.

In prior farm bill legislation, the share of federal spending in the U.S. specialty crop industry has been small compared with support for commodity crops, says Alba J. Collart, Mississippi State University Extension economist, speaking at the most recent Southern Region Outlook, held in Atlanta.

“The bill increased funding levels for specialty crops by 55 percent to about $4 billion over 10 years,” says Collart. “Most programs to solve critical needs of the specialty crop industry have been reauthorized and their funding levels have either increased or remained unchanged. Some of the existing programs were expanded and new programs were created.

Key provisions affecting specialty crops include the following:

◦ $1 billion to purchase specialty crops for schools and service institutions.

◦ $400 million for specialty crop research initiative.

◦ $375 million for specialty crop block grants.

◦ $325 million for Consolidated Clean Plant Network.

◦ Up to $200 million for farmers’ markets and local food promotion program.

◦ $167.5 million for organic agriculture.

◦ Up to $140 million for Food Insecurity Nutrition Incentive.

◦ $45 million for technical assistance for specialty crops.

Overall, says Collart, the Farm Bill may increase the demand for fruits and vegetables and direct-to-consumer marketing.

“Efforts to improve access for vulnerable populations may have the potential to change eating habits, thereby helping address public health concerns,” she says, adding that both conventional and organic agriculture will benefit from research and Extension initiatives and provisions to facilitate lending.

What's new for specialty crops?

New provisions in the Farm Bill relevant to the specialty crop industry are much more numerous than the provisions revoked, says Collart.

“The grant program established to improve the movement of specialty crops to markets was discontinued. The nutrition title, however, contains important changes and new provisions with great potential for specialty crop producers, Supplemental Nutrition Assistance Program

(SNAP) eligible households, and school feeding programs,” she says.

Changes in the definition of a “retail food store” in the nutrition title allow agricultural producers who market directly to consumers to accept SNAP benefits, implying that not only farmers’ markets but also CSAs and roadside stands will be able to accept electronic benefit transfer (EBT) cards as forms of payment when selling fruits and vegetables or seeds and plants for eligible household use, according to Collart.

“The feasibility of households redeeming SNAP benefits through online and mobile transactions will be tested through new pilot projects that seek to help retail food stores adopt new technologies. To participate in the mobile pilot project, retail food stores and producers selling directly to consumers will need to apply to the Secretary of Agriculture, specifying the technology to be used and the manner in which the household will be given proof of the transaction.”

Regarding school feeding programs, says Collart, three new provisions were created to facilitate the inclusion of fruits and vegetables in the National School Lunch and National School Breakfast programs.

The bill’s inclusion of provisions that benefit locally or regionally produced agricultural products translates into direct support for small and medium agricultural businesses, she says.

“Ways to determine the value of crops used in locally or regionally produced agricultural products will be determined to facilitate lending of operating loans to local and regional food producers. Also, exploring ways for producers to establish a price history for these crops has been added to the agenda.”

In addition to credit-related solutions, the bill offers incentives for the consumption of locally or regionally produced agricultural products.

Provisions for the rapidly expanding organic agriculture sector received broad support from both major political parties, says Collart.

“The bill expands the definition of ‘agricultural commodity’ to include certified organics, it mandates a technology upgrade for the database and technology systems of the National Organic Program, it creates permission for an Organic Commodity Promotion Order, and it grants specific powers to the Secretary of Agriculture to investigate products that are being fraudulently marketed as organic.”

Importantly, she adds, three key farm bill programs that have helped shape the success of U.S. organic farmers over the past decade have been reauthorized including the Organic Agriculture Research and Extension Initiative (OREI), the Organic Production and Market Data Initiatives (ODI), and the National Organic Certification Cost-Share Program (NOCCSP).

“The latter program seeks to help U.S. organic crop and livestock producers defray the costs of obtaining an organic certification by reimbursing as much as 75 percent of certification costs. Funding for the cost-share program was increased to $11.5 million for each year from FY 2014 through 2018.”

Finally, says Collart, although the lack of federal crop insurance remains a major issue for specialty crop producers, the Farm Bill attempts to help level the field for organic farming.

“The bill mandates increased efforts in developing and improving federal crop insurance for organic crops and in implementing price elections for organic products. No later than the 2015 reinsurance year, certified producers of organic crops will be offered price elections that reflect their retail or wholesale prices.”

The Agricultural Act of 2014, says Collart, advances many priorities of the U.S. specialty crop industry. Not all concerns of the industry were addressed, but this Farm Bill did significantly broaden the scope of U.S. agricultural policy. The bill’s provisions likely will benefit different stakeholders in the specialty crop industry.

“Conventional and organic producers of specialty crops may benefit from greater consumer demand, as well as from provisions designed to facilitate lending and conduct research and Extension initiatives. These incentives may serve to strengthen existing local farms, but also to bring new farms to market.