Table of Contents:

• House Approves Agriculture Spending Bill
• Industry Raises Concerns on Future Loss of Methyl Bromide
• Produce Packaging Committee Members Announced
• Senate Acts to Repeal Death Tax
• Florida Ag Communicators Focus on Biotechnology
• United Joins Health Advocates in School Health Briefing
• What are you doing next St. Patrick's Day?

House Approves Agriculture Spending Bill

This week, the House passed H.R. 4461, The FY2001 Agriculture Appropriations Bill, which provides $75.4 billion in farm spending, including $14.3 billion in discretionary spending. The legislation, overwhelmingly approved by a vote of 339-82, provides approximately $6 billion more than FY2000 spending levels, including $32.2 million for the Agriculture, Plant and Health Inspection Service (APHIS).   "Increased funding for APHIS has been a top priority for United and is critical in preventing the spread of invasive plant pests such as the Asian long horned beetle, citrus canker, Mexican and Mediterranean fruit flies, plum pox virus, and other invasive pests threatening the produce industry," said Donna Denison, Director of Legislative Affairs. In addition, to increased funding for APHIS, the bill also included language at the request of Rep. Sam Farr (D-CA) directing the U.S. Department of Agriculture (USDA) to broaden the Women, Infants and Children (WIC) program to include a variety of fruits and vegetables. "This is a major victory that could substantially increase produce purchases with over 7 million participants benefiting from the WIC program each month," added Denison. Additionally, major produce amendments considered and all rejected during the bill's debate included: Rep. Edward Royce's (R-CA) amendment to cut USDA's Market Access Program (MAP), Rep. Dennis Kucinich's (D-OH) amendment to require labeling of genetically engineered food; and, Rep. Joel Hefley's (R-CO) amendment to eliminate funding for a grant for "international asparagus competitiveness."

Details: Donna Denison, ddenison@uffva.org

Industry Raises Concerns on Future Loss of Methyl Bromide

With the scheduled 50% phaseout of methyl bromide next year and complete elimination of the product by 2005, House Agriculture Subcommittee on Livestock and Horticulture Chairman Richard Pombo (R-CA) held an oversight hearing to further examine the economic impact to the U.S. produce industry. Witnesses at the July 13, 2000 hearing included representatives of the fruit and vegetable industry as well as economists and scientists from the National Center for Food and Agriculture Policy in Washington, DC, University of California at Davis, Citrus Research and Education Center in Lake Alfred, Florida and Auburn University. Growers testified that the loss of methyl bromide with no alternative in sight is "a wreck waiting to happen." "With an estimated annual impact of nearly $500 million and no effective or practical alternative on the horizon, efforts need to be mobilized to ensure a viable alternative is developed and that Administration officials are held accountable in addressing this serious issue," said United Vice President Robert Guenther.

Congressman Pombo as well as other members of the Subcommittee voiced strong concerns about the economic consequences due to the unavailability of transitional products needed for the production, shipment and processing of over 100 agricultural crops including major produce crops such as tomatoes, strawberries, beans, potatoes, and watermelons among other important produce commodities. "Methyl Bromide phase-out and FQPA implementation leave producers and millers with few, if any options," Ranking Subcommittee Member Collin Peterson (D-MN) said. "Immediate attention must be taken to mitigate this problem before the combined pressures of low prices, disaster, and disease tie the hands of farmers and, ultimately, consumers."   
     
Details: Robert Guenther, rguenther@uffva.org

Produce Packaging Committee Members Announced

The Produce Marketing Association and United Fresh Fruit & Vegetable Association have confirmed which members will serve on the associations' Joint Produce Packaging Committee. The committee was announced in May to serve as a forum to bring better understanding and coordination to the challenges associated with the rapidly changing climate in packaging available for fresh produce.

The committee is co-chaired by an officer of each association: United Chairman-Elect Fred Heptinstall, Chiquita Fresh North America and PMA Secretary-Treasurer, Tim York, Markon Cooperative. United President Tom Stenzel and PMA President Bryan Silbermann serve as staff liaisons to the committee.

The committee membership includes broad-based representatives from the industry, consisting of shippers, retailers, foodservice, wholesalers, and brokers, as well as one representative each from the plastic and corrugated packaging industries. The new members of the joint committee include:

• Roger Askey, Bob Evans Farms Inc.;
  
• Mike Dameron, Ahold USA, Inc.;
  
• Cynthia Forsch, Albertson’s, Inc.;
  
• Dan Hamilton, HEB Grocery Company;
  
• Horace Hamilton, The Kroger Company;
  
• Rick Hanas, A. Duda & Sons, Inc.;
  
• Don Harris, Safeway Inc.;
  
• Mark Hayes, Twin Garden Sales, Inc.;
  
• Cindy Jewell, California Strawberry Commission;
  
• Mike Kemp, SUPERVALU INC;
  
• Keith Mathews, Rainier Fruit Company;
  
• Richard Matoian, California Grape and Tree Fruit League;
  
• Dick Mead, Sunkist Growers, Inc.;
  
• Jim Nolan, Fibre Box Association;
  
• Bruce Peterson, Wal-Mart Supercenters;
  
• Howard Phillips, Nonpareil Corp.;     
  
• Joe Procacci, Procacci Bros. Sales Corp.;
  
• Mike Rempe, C.H. Robinson Company;
  
• Norman Shiffman, Dole Fresh Vegetables, Inc.;
  
• Bob Spence, Reusable Pallet & Container Coalition; and,
  
• Craig Stauffer, Vanguard International, Inc.
  
• A representative from Food Lion Stores will be announced at a later date.
  

Current plans are to provide a summary of the committee's discussions online so that members of both associations can respond to issues raised by the committee representatives. Workshops are planned for PMA's convention in Anaheim in October, and at United's convention in Tampa in March to present updates on the committee's discussions and provide face-to-face forums for discussion.   

The committee's first meeting is scheduled for August 28-29 in Dallas, TX, at which time the membership will examine its scope of work and time lines.

Details: Diane Cullo, dcullo@uffva.org

Senate Acts to Repeal Death Tax

On July 14, the Senate voted to repeal the "death tax" and generation skipping taxes by a vote of 59-39 as a part of H.R. 8, The Death Tax Elimination Act of 2000. This legislation would be phased in over a 10-year period and when fully implemented would ensure that the death of the property owner is no longer a taxable event. "The produce industry has worked long and hard to eliminate this unfair tax which only raises between one-to-two percent of federal revenues overall," said United Director of Legislative Affairs Donna Denison. The bill also includes a number of provisions that would affect estate tax collections over the 10-year phase-out, including:

• Rate Reductions: Prior to repeal of the estate, gift, and generation-skipping transfer taxes in 2010, H.R. 8 would reduce the estate tax rates across-the-board. Rates would be reduced to no less than the lowest individual income tax rate for unmarried individuals.

• Unified Exemption: Under current law, estates subject to the death tax are eligible for a unified tax credit, which has the effect of exempting estates valued up to $675,000 from taxation. This exemption is scheduled to rise to $1 million by 2006.

  H.R. 8 would change the unified tax credit into a unified tax exemption, equal to $675,000 in 2001 and growing to $1 million by 2006. The shift from the credit to exemption has the effect of reducing the estate tax rates on smaller taxable estates by a considerable amount. For example, under current law, an estate valued just above $675,000 is subject to a marginal tax rate of 37 percent. With a unified exemption, the marginal rate falls to 18 percent.

• Step-Up Basis: The bill would replace the current unlimited step up in basis with a limited step up for transferred assets up to a certain amount. Currently, all assets transferred, following the death of their owner, receive a step-up in basis. H.R. 8 would replace this universal step-up with a step-up limited to $1.3 million of the total assets transferred. For assets transferred to a spouse, the limit would be $3 million.
  

Details: Donna Denison, ddenison@uffva.org

Florida Ag Communicators Focus on Biotechnology

The Florida Agriculture Institute, an organization of professional communicators from fruit and vegetable companies and associations, nursery growers, other ag industries and university representatives, met July 11 at Disney’s Epcot Center to focus on biotechnology and tour Monsanto’s Beautiful Science exhibit at the Innoventions Pavilion. United President Tom Stenzel joined the group as a guest of Susan Howard, A. Duda and Sons. During the session, the ag communicators met with the Public Information Committee of the Council for Biotechnology Information (CBI). CBI was formed by a number of technology companies to launch a public information and education campaign on the value of biotechnology. “Biotechnology holds great promise for the fruit and vegetable industry,” Stenzel said. “But, our technology partners have to recognize that fresh fruits and vegetables are more like branded consumer products in the marketplace, than commodities such as soybeans used in food processing. Our products have the potential to take the mystery and fear out of the biotech debate, but the fresh produce aisle may just as easily become a “no-biotech” zone if growers, marketers or grocery retailers lack confidence in our ability to sell these products without damaging existing markets,” Stenzel said.

Details: Diane Cullo, dcullo@uffva.org

United Joins Health Advocates in School Health Briefing

United, as a member of the National Alliance for Nutrition Activity (NANA), joined Reps. Connie Morella (R-MD) and Lois Capps (D-CA), July 13, in sponsoring a Congressional Briefing to educate Members of Congress and policy makers about the important role of school health in the nation as well as addressing specific strategies for strengthening initiatives to prevent chronic disease. The briefing, School Health in the New Millennium: Preventing Heart Disease, Cancer, Diabetes and Obesity in America's Youth, highlighted speakers who tackled the poor nutritional state of our nation's youth and that 77% of our country's young people are not eating five or more servings of fruits and vegetables per day, as recommended, for optimal health. Reps. Morella and Capps both pledged their support for improving the nutritional and health status of our nation's children through enhanced federal polices that ensure our youth will be fit and ready to learn.

Details: Donna Denison, ddenison@uffva.org

What are you doing next St. Patrick's Day?

Attending United 2001 International Convention & Exposition in Tampa, Florida!!! Make plans now to join your fellow United members and industry colleagues to visit the ultimate showcase of tools, technology equipment, goods and valuable services of the global fruit and vegetable industry. Excellent networking opportunities abound, from United's Research & Education Foundation Golf Tournament, expanded New Variety & Research Showcase and critical business meetings that will shape our industry's policies for the coming years. For additional information on exhibiting or attending United 2001, visit http://www.uffva.org/ or call United's Convention Team at 703-836-3410.

Details: Jeff Oberman, joberman@uffva.org