lesson 3 iowa and usa situation and some historical background
TRANSCRIPT
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