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- Fruit and Vegetable Growers
Need Farm Bill Provisions
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While I have not polled every asparagus grower in the state, I have spoken with many industry leaders and sought their opinions regarding whether minor crops, such as asparagus, should be included under a new Federal Farm Bill.
The response I consistently received was that there should indeed be some provision in a new Farm Bill to provide a safety net for minor farm crops such as fruits and vegetables. The Michigan asparagus industry is in need of a safety net at the present time. The industry is going through a transition period in terms of crop usage, which is being driven by market forces far beyond grower control.
Traditionally, the majority of Michigan asparagus has been processed with only a small portion going into the fresh market. The demand for processed asparagus has been steady in most years and supplies have, for the most part, been in balance with this demand. The balance is now being disrupted by imports.
In the past, importation of processed asparagus was generally limited to white asparagus from Peru or China. Recently, a trend has developed of importing green asparagus in addition to the white. Every pound of green asparagus imported displaces one pound of processed Michigan asparagus since the market for processed asparagus has no growth potential.
Greater quantities of imported green asparagus are directly related to two trade agreements implemented by our government. Those agreements are NAFTA as it benefits Mexican-produced asparagus, and the Andean Trade Preference Act (ATPA) as it benefits Peruvian produced asparagus.
With this loss of market share, it is imperative that the Michigan asparagus industry pursue other marketing avenues more aggressively, while at the same time, seek help from a federal farm program to help carry the industry through this transition period.
It is our belief that inclusion in a new Farm Bill should be commodity specific. Many leaders in the asparagus industry have stated that they want asparagus to be included under a new Farm Bill. However, I have also spoken with growers of other crops and they are adamant that they do not want any type of government program.
A Farm Bill should include some provision that would allow growers of a particular commodity, such as asparagus, to gain relief or protection in an area where they cannot be competitive with foreign producers. For example, in growing asparagus, the price of labor is a big issue.
In many past farm programs, payments were based on what a producer did or did not harvest. In the future, we may need to focus these payments on a more highly defined target, such as the disparity between labor costs, as in the example I just cited. In other instances, the focus may need to be on how strong the U.S. dollar is compared to the currency of another country or some other market variable.
Another provision under a new Farm Bill that would benefit asparagus growers would be to expand the CRP to allow entry of old asparagus fields. Many old asparagus fields that are no longer profitable are on highly erodible ground. These could best serve the grower and the community by being in the CRP.
In a new Farm Bill, the prerequisites for USDA purchases of commodities should be redefined. USDA has many feeding programs that benefit millions of people, both in and out of the country.
These purchases should be accelerated in years when a particular commodity is in excess, especially when the excess is due to loss of market share caused by importation of cheaper, offshore product.
Finally, as an additional safety net in a new Farm Bill, a provision should be made in the annual ag budget process to provide money for market loss payments to specific commodity growers when unusual situations cause a loss of income greater than what they are able to sustain and continue a viable farming operation. Many different situations could prompt market loss payments such as weather-related problems, depressed markets or undue pressure from imports of that commodity. Whatever methods are used to attain a safety net, they must be able to respond quickly and decisively.
In closing, I would ask that you stop and consider where we want our food to be produced in the future. Do we want this country to become dependent on foreign producers for our foodstuffs, similar to the way we depend on overseas crude oil, or do we want to put in place some sensible farm programs that will enable U.S. farmers growing specialty crops to remain viable for the long run.
The previous testimony was given by Perry De Kryger, executive director of Michigan Asparagus Advisory Board, at a field hearing of the U.S. Senate Ag Committee on Aug. 13.
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