FEDERAL ISSUE

Farm Bill

The Council supports Farm Bill Programs that enhance the viability and growth of the agribusiness industry which in return ensures that rural economies thrive.

General Farm Bill Programs

The Council supports the following policies for the Farm Bill Programs:

· Reliable funding and fulfillment of program contracts with producers for Farm Bill programs throughout the entire term of the Farm Bill authorization. Farm Bill programs are regarded as multi-year contracts with the government, resulting in long-term business and investment decisions for producers, bankers, and others in rural economies.

· Recognition of the important regional and commodity based differences that exist in U.S. agriculture and equitable program benefits for all traditional and specialty crops, dairy, livestock and poultry producers.

· Programs that promote market-based crop production decisions and provide both a safety net and risk-management tools for agriculture.

· Programs that maintain a crop insurance program to protect farmers in a volatile market or season, and continue a cost-share system to assist in obtaining crop insurance coverage at a reasonable premium price.

· Programs which will promote stability for Virginia producers in times of disaster, and timely disaster assistance for all producers on a regional basis.

· Provisions to allow for a strong and competitive Farm Credit System with authorities that meet the evolving financial needs of rural communities, agriculture and agribusiness.

· No increased government intervention or regulation of private contracts such as those between producers, integrators, and processors.

· Equitable funding and complete implementation of environmental and conservation programs in which farmers participate in voluntary, incentive based cost-share programs to meet Total Maximum Daily Load allocations through actions that improve soil and water quality, protect open spaces and wildlife habitat, and prevent flooding, drought losses and erosion. The Council supports adequate funding for technical assistance to implement these conservation programs.

· Coordinated programs that encourage energy conservation and renewable fuels production in the Farm Bill with similar programs and initiatives established by Congress.

· Passage of a new Farm Bill rather than an additional short-term extension of the current Farm Bill, recognizing that farmers need certainty as they make substantial long-term planting and business decisions.

Commodity Programs

· The Council supports maintaining the Adjusted Gross Income payment limitation for farm programs; however, the Council recognizes that payment limitations that include off-farm income and are set to an artificially low limit would have a negative impact on Virginia agribusinesses.

· The Council supports efforts to ensure an abundant and affordable supply of highly nutritious fruits, vegetables, and other specialty crops for American consumers and international markets and enhances the competitiveness of U.S. grown specialty crops.

Forestry Programs

· The Council supports an emphasis on sustainable private forest conservation and management, including planning, technical assistance, education, and outreach to landowners.

· The Council supports funding assistance to states for forest assessment and planning, and to restore private forests after disasters.

OVER

Other Critically Important Programs for Virginia Agribusiness

· The Council supports efforts to ensure an abundant and affordable supply of highly nutritious fruits, vegetables, and other specialty crops for American consumers and international markets and enhance the competitiveness of U.S. grown specialty crops.

· The Council encourages funding and assistance for domestic and foreign market development, including the Market Access Program (MAP).

· The Council supports sound agricultural research critically important for agricultural production practices and for providing a safe, reliable, and affordable supply of food, fiber, and energy. The Council urges greater priority, attention, and funding to this critical need.

Impacts on Agribusiness

· Farm Bill programs are regarded as multi-year contracts with the government, resulting in long-term business and investment decisions for producers, bankers, and others in rural communities. Once a Farm Bill is enacted, consistent funding for these programs is critical.

· Virginia is home to a diverse agribusiness economy that consists of row crops, livestock and poultry operations, specialty crops, aquaculture, agritourism, and emerging agribusiness industries. As such, a variety of Farm Bill programs are needed to meet the different needs of our industry in Virginia, including commodity, conservation, trade and marketing, rural services, specialty crop research, disaster assistance, and energy development programs.

· Virginia producers have found that risk-management tools, such as crop insurance, are critical for their business planning. In an instant, a farmer can lose an entire season’s worth of work, inputs, and profits. Critically important to Virginia farmers, crop insurance can help to manage the risks taken by farmer.

· Disasters such as drought, floods, winds, etc. can strike an entire state, region, county, or small area. No matter the size of the disaster, farmers on an individual level are those who deal with the impacts. Disaster assistance for all scenarios must be timely and adequate.

· Conservation programs such as EQIP and the Chesapeake Bay Watershed Initiative (CBWI) and FRPP (farmland preservation programs) are heavily utilized by many farmers in Virginia, and year after year, oversubscribed. These programs protect our valuable natural resources and leverage the investment of farmers with federal and state funds to implement conservation practices.

· Increased efforts to address our nation’s energy needs offer a variety of benefits for the agribusiness industry. However, it is important to seek coordination between energy programs enacted in the Farm Bill and others that Congress may establish.

· The Farm Credit system plays a critical role in our agribusiness industry, providing services to all sectors of agriculture and forestry. The Farm Bill should continue to include necessary provisions that will allow the Farm Credit System to adapt to changes in our agribusiness economy.

Actions Requested

· In an era of “doing with less”, support the critical programs of importance to Virginia’s agribusiness industry in the Farm Bill. Recognize the significant decline in funding that has already taken place in recent years for agricultural programs.

· Advance Farm Bill programs that recognize Virginia’s diverse agribusiness interests, which may be different from the needs of other states.

· Maintain funds for programs throughout the life of contracts with farmers, local governments, and universities.

· Work to pass of a new Farm Bill rather than an additional short-term extension of the current Farm Bill.

· Utilize the Council and our members as a resource for information on Farm Bill programs and impacts to Virginia’s agriculture and forestry industry.

For more information, contact the Virginia Agribusiness Council at (804) 643-3555 or .

July, 2013