May 6, 2002

In late February, partners within the National Campaign for Sustainable Agriculture developed a summary of what the
National Campaign would actively fight for in the farm bill conference committee.  The following summary of our wins and
losses in this farm bill is built upon this summary.  We had many major wins, and a few stinging losses.

The National Campaign does not support the farm bill that has passed the House and that will soon be voted upon by the
Senate because we feel the huge subsidies for the biggest farming and factory livestock operations are glaring examples of
corporate welfare policy that will hurt farm and ranch communities and that is not in our true national interest.

However, the sustainable agriculture movement achieved some major victories and had a profound impact on the quality of the
farm bill debate.  The issues that were the biggest sources of debate -- real payment limitations, contract agriculture reforms,
prohibition against large meatpacker ownership of livestock, the important new Conservation Security Program -- were our
issues.  We won the Conservation Security Program and many other important provisions, and we will continue to fight for
those issues we lost.  The farm bill fight is not over yet.

Thanks to all of the groups that have graciously shared their farm bill summaries among one another including the Campaign
for Contract Agriculture Reform, the Campaign for Family Farms, the Community Food Security Coalition, Midwest
Sustainable Agriculture Working Group/Sustainable Agriculture Coalition, National Family Farm Coalition, and Rural
Coalition/Coalicion Rural.

Farm Bill Victories

Conservation Security Program  Support the higher funding for conservation in the Senate farm bill, especially the
Conservation Security Program. The Conservation Security Program is a visionary new farm program that bridges a gap
between commodity programs and land retirement programs, providing financial incentives for conservation on working lands,
needed support for family farms and ranches, and  environmental benefits such as clean water and air for all Americans, both
rural and urban alike.

WIN:  Full Conservation Security Program will be established as an entitlement program, making it the first conservation
program to be on par with commodity programs (i.e. if a farmer or rancher qualifies, she or he can participate in the program).

Beginning Farmer and Rancher Provisions  To secure a new generation of farmers and ranchers, support the beginning
farmer and rancher development program, credit program reforms and targeted incentives in the Senate bill. There are twice
as many farmers over age 65 than under age 35, and in the 140 years of USDA’s existence there has not been a USDA
program for new farmers or ranchers (except FSA loan programs). $15 million per year mandatory spending on this program
is a small but vital investment in the future of U.S. agriculture.

WIN:  The farm bill establishes the Beginning Farmer and Rancher Development Program but funding will be discretionary
(we’ll have to fight for it in annual appropriations process).  The farm bill also reforms the credit title to improve programs for
beginning farmers and ranchers, and the bill includes cost-share assistance to help beginning farmers and ranchers participate
in conservation programs.

Value-Added Market Development Program  Support Senate provisions that make the Value-Added Market
Development Program work for small and mid-size farms that are trying new and alternative ways to increase farm income.
Support $75 Million per year in mandatory funding for this program and support the Senate policy language.

WIN:  Hard-won language was adopted to allow the Value-Added Market Development Program to include how an item is
produced (e.g. grass-fed, free range, organic, etc.) to qualify as value-added.

Mandatory Country of Origin Labeling  Adopt Senate provisions requiring mandatory labeling of meat, produce, peanuts
and farm raised fish by its country of origin to allow U.S. consumers to know and choose the origin of their food.

WIN:  Country of origin labeling will be voluntary this year and next, but will become mandatory for all beef, lamb, pork, wild
and farm-raised fish, peanuts, and produce (fruits and vegetables).

Food Stamps for Legal Immigrants  Support restoration of food stamp benefits to legal immigrants in the Senate farm bill.

WIN:  This provision is in the farm bill.

USDA Equity and Justice Reforms  Support provisions that increase accountability and transparency in all USDA
programs and services, including support for the USDA Assistant Secretary for Civil Rights.

WIN:  The farm bill authorizes the creation of a USDA Assistant Secretary for Civil Rights and puts in place important
reforms for County Committee election procedures.  The USDA will also be required to better track and evaluate
participation by limited resource and socially disadvantaged farmers in USDA programs.

Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers  Support Senate provisions to strengthen
and expand support for Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers (often referred to as
Section 2501) and the Indian Extension Program.

WIN:  Funding increased (but still discretionary) for Outreach and Assistance for Socially Disadvantaged Farmers and
Ranchers and historically black land-grant colleges and other minority-serving land-grant institutions, including the Indian
Extension Program.

National Organic Certification Cost Share Program  Adopt the National Organic Certification Cost Share Program in the
Senate bill that would provide assistance to small farmers who choose to implement environmentally sound practices in
compliance with the USDA’s National Organic Program. $3.5 million per year.

WIN:  National Organic Certification Cost Share Program funded at $3.5 million per year 2002-2004 and $3 million in
2005.

Community Food Projects  Support House increased funding for assistance to Community Food Projects beginning at $4
million and moving to $7.5 million.

WIN:  Community Food Projects will receive $5 million in mandatory funding per year for the six years of the Farm Bill.  The
farm bill also improves the program by allowing for planning grants for comprehensive, multi-stakeholder solutions including
policy councils, mini-grants and support for a national clearinghouse on "Innovative Programs to Address Common
Community Problems.”
 

Purchase of Locally Produced Foods  Adopt Section 458 of the Nutrition Title in the Senate bill providing for Purchase of
Locally Produced Foods.

WIN:  Institutions participating in the National School Lunch and Breakfast programs are encouraged to purchase local foods
where practicable, and a seed grant fund was authorized at $400,000 for 200 institutions.  This funding will need to be
appropriated by a separate appropriations bill.

Farmers’ Market Nutrition Programs  Support provisions in the Senate bill that provide $15 million for the WIC Farmers
Market Nutrition Program this year and raise funding for the Senior Farmers Market Nutrition Program to at least $25 million.

WIN:  The WIC FMNP will receive an additional $15 million in the current fiscal year 2002  to substitute for funds that were
withheld to support caseload in the regular WIC Program. Along with the $10 million released in January, this infusion of
funding will take the program to a $25 million funding level, thus allowing current states and tribes to expand their programs
and potentially allowing five new jurisdictions (Arizona, Five Sandoval Indian Pueblos in New Mexico, Hawaii, Montana, and
Puerto Rico) that applied for federal funds this year to join the FMNP.  The Senior FMNP is authorized for the full six years
of the bill, with mandatory funding of $15 million per year. For fiscal year 2002, an additional $5 million will be provided
which, on top of the $10 million distributed in early March, will bring total funding for this year to $15 million.

Farmworker Assistance  Adopt Senate provisions to increase funding for emergency grants to assist low-income migrant
and seasonal farmworkers.

WIN:  Removes restrictions on the amount of money that can be put into emergency grants to assist low-income migrant and
seasonal farmworkers in the case of disasters and authorizes up to $10 million dollars for grants to nonprofit organizations,
coalitions and institutions to train farmworkers in new technologies and specialty skills necessary for high value crops.

Farmers Market Promotion Program  Support the $25 million mandatory funding in the Senate bill for the Farmers Market
Promotion Program.

WIN:  The Farmers Market Promotion Program is established in the farm bill to make grants to eligible entities to establish,
expand and promote farmers’ markets but the funding is discretionary (we’ll have to fight for it in the annual appropriations
process).
 

Farm Bill Losses

Real Payment Limitations  Support payment limitations in the Senate bill because they set real limits, close loopholes
and restore a measure of fairness, integrity and equity to farm programs. We are concerned about the amount of farm income
that is dependent upon government payments. We need to close loopholes, and enforce real limits (as the Senate bill does),
and go in the direction of farmers getting a fair price from the marketplace.

LOSS:  Despite that fact that these payment limitation provisions were passed by a large majority on the Senate floor and the
House voted by a large margin to urge the House conferees to support the Senate provisions, these real payment limitations
were dropped from the farm bill.
 

Ban Against Meatpacker Ownership of Livestock  Adopt Senate provisions banning ownership of livestock by large
meatpackers to limit their market power and price manipulation, and improve market competition for cattle, hogs and lamb.

LOSS:  Despite being passed as an amendment twice on the Senate floor and growing bi-partisan support in the House, the
farm bill conferees dropped this provision.

Contract Agriculture Reforms  Contract farmers need basic standards in fairness: adopt the Senate contract reform
provisions to permit farmers to share terms of contracts with family and trusted advisors, and prohibit forced arbitration
clauses.

LOSS and WIN:  The most significant contract ag reform  prohibition against the use of forced arbitration clauses in
contracts (or giving farmers a choice in resolution of disputes with industry  arbitration or lawsuit)  was dropped.  However, in
a partial win new reforms that will allow producers to share contract information with family and key advisors, and that will
give the Grain Inspectors, Packers and Stockyards Administration oversight over pork production contracts, are in the farm
bill.
 
Rural Entrepreneurs and Microenterprise Assistance Program  Adopt the Rural Entrepreneurs and Microenterprise
Assistance Program in the Senate bill because it helps low and moderate income individuals acquire the skills and financing
necessary to establish new, small businesses in rural areas and receive continuing technical assistance as the individuals begin
operating their new businesses. Support $10 million per year mandatory funding of this essential program.

LOSS:  Included in the Senate farm bill, this provision was dropped by the conferees.

Organic Research Program  Adopt the Organic Research Program in the Senate bill that would provide federal funds for
research on production practices that protect land and water resources and help producers access growing markets. - $45
million total

LOSS and WIN:  The farm bill will not establish the Organic Research Program but we did win funding for the Organic
Research Initiative which will include organic breeding, marketing, and policy research as priority areas within USDA
Research, Education and Economics programs make available $3 million (mandatory) annually for grants.

EQIP (Environmental Quality Incentives Program)  Issues surrounding this program were not included on our list of
issues created back in February because the battle to maintain its integrity and keep it from becoming a major subsidy for the
biggest factory livestock production operations was lost in the House and Senate.  In the end, hard work throughout the
movement kept the program from becoming a complete giveaway with no effective limitation on payments.  EQIP now has a
$450,000 per producer payment limit over life of the bill (6 years).  This is obscenely high, but the movement fought an
attempt by the conferees to effectively remove limits whereby some large operations would be able to capture more than $1
million in EQIP dollars to subsidize their waste management costs.  Our position is that if big industry insists on further
concentrating livestock production and producing animals in massive confinement operations, they should pick up the tab for
meeting environmental standards  not the taxpayer.