Lesson 3Iowa and USA situationAnd some historical background

Learn about today’s US agricultural output in a global context

Discover the history of US agricultural policy especially for Iowa

Consider the current influences and components of food policy

Review the problems that US agriculture and its food system faces

Main Point US agricultural policy has succeeded in feeding the

population but failed to respect the environment. As US democracy has increasingly been influenced by corporate interest groups, policy has become more fragmented, without coherent direction other than to support corporate interests. It is also delivering progressively less healthy food.

We see an urgent need to raise consciousness and take action in the nation so that government can act in a more intelligent way, in tune with common sense and nature.

Generalized types of US farming

Breakdown of farm produce by value

Agriculture as a part of US GHG emmissons

Agriculture’s contribution to US exports

What food the USA exports

Value of exports

Interesting example

http://faostat.fao.org/site/342/default.aspx

Stories of US Agriculture The patriotic, productive farmer Great efficient system Great way of taking soil to the Gulf Great way to spread toxins into rivers &

Gulf Great way to poison people

Over 400 globally, total size = NZ

Beginnings Iowa landscape has been industrialized

more than any other state This is the outcome of design

intentionality

Two design intentions in agriculture Mechanize to get rid of drudgery Profit and production maximization

Design objectives With different objectives we can design

a new Iowa

More on Iowa Native Americans groomed IA

grasslands for buffalo Also some river-bottom agriculture Perfect for corn

Spring and other rain that can be banked in deep soil

Cold winters to kill critters Drainage engineering triumph

IA policy Indian Removal Act – 1830 – mainly

focused on the South at the time Mixture of bullying and legal

maneuvering to send Indians West of Mississippi

Later set precedent to remove Indians for agriculture in IA

Andrew Jackson

Ceded land Native American tribes ceded land in

East IA in 1837 and 1842 leading to ‘land rushes.’

Homestead Act 1862 For land West of Mississippi Granted for free to each male typically

160 acres for 5 years (or more for dryer land later on)

If successfully farmed then farmer given title

40% success rate, 1.6 million titles granted on 10% of US land area

Agriculture as part of a nation

Obvious key role for food security Sensitive to vagaries of climate Sensitive to poor farming practices

especially in early phases of development Lobby power of agriculture sector

Historically a huge sector Heavy weighting in low populationStates Farmers are practical people!

Farm lobbyists in DC event

1933 Agricultural Adjustment Act (first Farm Bill) It reduced farm agricultural output to

eliminate surplus and thereby raise prices of farm products

Subsidies paid to farmers to leave land fallow and reduce herd sizes

1936 Soil Conservation and Domestic Allotment Act

Allowed the government to pay farmers to reduce production so as to conserve soil and prevent erosion.

1938 Agricultural Adjustment Act

Made price support mandatory for corn, cotton, and wheat along with several other farm products, to help maintain a sufficient supply in low production periods along with marketing quotas to keep supply in line with market demand

Paid for from central federal budget

1954 Agricultural Act Established a flexible price support for

basic commodities Not clear on the procedures this

followed

1962 An Adaptive Program for Agriculture An influential statement on national policy

for agriculture Perceived need to move people out of

agriculture Three approaches identified:

Laissez faire Protectionism Adaptive program

Recommended adaptive but in practice all thee used

Regular Flow of Legislation 1970 Agriculture Act - Changed commodity

support policy and limit of $55k per producer per crop

Agriculture act 1973 – more changes plus set up disaster relief fund

Food and Agriculture Act 1977 – Food stamps reformed, increased supports, USDA became lead agency for research, extension work and teaching

1985 Food Security Act – 5 year omnibus farm bill – lowered supports, more for conservation

North American Free Trade Agreement – NAFTA - 1994

USA, Canada and Mexico All agricultural and investment tariffs to be phased

out About half immediately then progressively through to 2008 completion.

Two stories promoted Free trade / comparative advantage, great success,

trade and investment boom Corporate agenda, investment flows, US job losses,

stagnant US wages, increased US income inequality, trade deficit, new world order global agenda

1996 Federal Agriculture Improvement and Reform Act $35.6 billion over 7-year through ‘production flexibility

contract payments’ Provided participating producers with fixed

government payments independent of current farm prices and production.

Tied to conservation practices – soil cons., ground water recharge, wildlife habitat, flood damage prevention, marginal land protection (plant trees, windbreaks, grasslands etc

Established Fund for Rural America $100 m pa later dropped to $60m - for competitive grants, Rural Dev. projects. USDA R&D,

2002 Farm Security and Rural Investment Act $190 billion over 10 years $16.5 billion pa of production subsidies Big boost for feed grain, wheat oilseeds, upland

cotton and rice (about $7 billion) $17.1 billion total for conservation Issues debated at the time and since

Over production Impact on developing countries agriculture Need to spend more on conservation, less on

subsidies Biggest beneficiary: fast food industry raw materials

Ann Veneman

2008 Food, Conservation and Energy Act and comparison to 2002 Farm Bill

$57 billion per annum for five years

http://www.ers.usda.gov/FarmBill/2008/Titles/TitleIcommodities.htm

Roles of USDA USDA has responsibility for farm, rural

development, research, protection and conservation programs; international food and agriculture trade; the nation’s nutrition programs including school lunch and breakfast, food stamps and Women Infants and Children (WIC); and the U.S. Forest Service.

111,000 employees, 25,000 buildings around the world; a program level of $113 billion (6th in US government)

Crop Insurance Crop Hail Insurance from private

companies Multi Peril Crop Insurance (MPCI)

federally subsidized. Drought, excessive rain, disease.

Started in 1938, going stronger than ever The Federal Crop Insurance Corporation

paid out $21 billion between 1981 and 2000

US agricultural Subsidies

Unequal Distribution

International Comparison of Farming Subsidies 2008

Component shares of Agriculture 1910 and 2000

Inputs Farming Marketing

1910 5% 45% 50%

2000 30% 20% 50%

Dr Ricardo Salvador, Kellogg Institute

Farm Bill 2012 In absence of super committee agreement by

Nov 1, 2011 automatic cuts will kick in from 2013.

This will involve cuts to all programs Likely dollar break down: about 75% nutrition

and stamps, 7$ commodities, 9% insurance, 6% conservation

Other ideas: Tie crop insurance to compliance soil conservation, anti-erosion plans, nutrient management program, minimum set back from streams

Main Point US agricultural policy has succeeded in feeding

the population but failed to respect the environment. As US democracy has increasingly been influenced by special interest groups, policy has descended into competition for handouts and is currently fragmented and without coherent direction other than to support corporate interests.

We see an urgent need to raise consciousness in the nation so that government can act in a more intelligent way, in tune with nature

Learn about today’s US agricultural output in a global context

Discover the history of US agricultural policy especially for Iowa

Consider the current influences and components of food policy

Review the problems that US agriculture and its food system faces

Class review of general Issues facing US agriculture Your turn! See also handouts: Iowa farm facts and

Top ten things adversely affected by poor land use decisions; and Lesson 3 ideas listing

Assignment Take your allotted topics and develop

about a page of talking points around each topic

Include relevant punchy facts Be ready to present them to the class

for discussion and review on xxxx