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Highlights
Title X
Miscellaneous
Modifies crop insurance and organic agriculture programs. Includes new provisions on country-of-origin labeling, animal health and welfare, and some support for specialty commodities.

Key provisions

Crop insurance and disaster assistance
Country-of-origin labeling
Specialty crops
Animal and plant protection
Food safety
Organic agriculture
 
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Provisions 1996-2001 farm legislation 2002 Farm Bill
Crop insurance and disaster assistance
Crop insurance is available for a wide variety of crops, but not always in each locality where a crop is grown. Premiums are federally subsidized. Beginning with the 1997 crop year, dual delivery of crop insurance by the Farm Service Agency and private insurance agents was eliminated in States (or portions of States) that had adequate access to private crop insurance providers.

Supplemental ad hoc assistance in 1999 and 2000 provided additional insurance subsidies.

No changes to basic program.
Agricultural Risk Protection Act of 2000 (ARPA) provided an additional $8.2 billion for insurance premium subsidies for FY 2001-05. ARPA raised premium subsidies with the goal of increasing insurance participation and encouraging use of higher coverage levels. ARPA also set revenue insurance subsidies at the same premium subsidy rates as for yield insurance. ARPA provision (scheduled to go into effect in 2006) that allowed selection of continuous levels, rather than coverage level at fixed intervals, was eliminated.
Adjusted Gross Revenue (AGR) Pilot Crop Insurance Program The Risk Management Agency initiated a pilot AGR insurance program in 1999 to offer coverage for crops for which traditional crop insurance is not available. Insurance coverage under AGR, based on Adjusted Gross Revenue on Internal Revenue Service Schedule F, covers gross revenue from all farm commodities. AGR was initially offered in selected counties in 5 States; its availability was increased in 2001 to 17 States. In 2002, it was available in these 17 States. Requires that AGR Pilot Program be continued through at least 2004 in the counties where it was offered in 2002. Requires that at least 8 counties in California and at least 8 counties in Pennsylvania be added to the pilot program in 2003.
Study feasibility of producer indemnification from government-caused disasters No similar provisions. The Secretary of Agriculture is required to conduct a study of the feasibility of expanding crop insurance and noninsured crop assistance coverage to include disaster conditions caused primarily by Federal action restricting access to irrigation water.

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Provisions 1996-2001 farm legislation 2002 Farm Bill

Country-of-origin labeling

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Federal law (the Tariff Act of 1930 as amended, the Federal Meat Inspection Act as amended, and other legislation) requires most imports, including many food items, to bear labels informing the "ultimate purchaser" of their country of origin. Generally, the "ultimate purchaser" is the last U.S. person who received the article in the form in which it was imported.

Requires retailers to inform consumers of the country of origin at the final point of sale for covered commodities. Food-service establishments are exempted.

The Secretary is required to issue guidelines for voluntary country-of-origin labeling by September 30, 2002. The Secretary is required to promulgate mandatory regulations by September 30, 2004.

Coverage Retail-ready packages—e.g., a can of Danish ham, a slab of Dutch cheese, and shrink-wrapped English cucumbers—each have to carry a country-of-origin label. In contrast, if the article is substantially transformed by a U.S. processor or manufacturer, that processor or manufacturer is considered the ultimate purchaser. For example, meat and other items are not required to carry a country-of-origin mark after cutting or processing in the U.S.

Current Food Safety and Inspection Service (FSIS) regulations allow voluntary labeling of fresh beef products using terms such as "U.S.A. Beef," and "Fresh American Beef" (products born, raised, and slaughtered in the U.S.), or "Product of the U.S.A." (products that, at a minimum, have been prepared in the U.S.).

Covered commodities are muscle cuts of beef, lamb, and pork; ground beef, ground lamb, and ground pork; farm-raised fish and shellfish; wild fish and shellfish; perishable agricultural commodities (fresh fruits and vegetables as defined by the Perishable Agricultural Commodities Act); and peanuts.

For covered meat to have a U.S. country-of-origin label, it must be exclusively from an animal that is born, raised, and slaughtered in the U.S.

Provides new seafood labeling responsibilities to USDA, while all other seafood labeling responsibilities remain with the Food and Drug Administration. The label must distinguish between farm-raised and wild-harvest seafood products.

Content and placement of labels U.S. customs laws require each imported article produced abroad to be marked for the ultimate purchaser in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits. The required country-of-origin information is provided to consumers by a label, stamp, mark, placard, or other clear and visible sign on the commodity or on the package, display, holding unit, or bin containing the commodity.
Compliance and verification Customs laws require that if the article is not properly marked at the time of importation, a marking duty equal to 10% of the customs value of the article be assessed.

FSIS regulations on voluntary labeling require that all such geographic claims be substantiated before label approval through records documenting adherence to a producer's operational protocol, and through testimonials and affidavits.

Provides for compliance audit trails and requires participants in the marketing chain to supply information to retailers. Retailers may be fined up to $10,000 for willfully failing to comply.

The Secretary "shall not use a mandatory identification system to verify the country of origin..." but may use "…as a model certification programs in existence."

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Provisions 1996-2001 farm legislation 2002 Farm Bill
Specialty crops
Market loss assistance for apple producers Ad hoc emergency payments were made to apple producers in 2000 and 2001. Provides $94 million of Commodity Credit Corporation (CCC) funds for fiscal year (FY) 2002 to make payments to apple producers who suffered market losses during crop year (CY) 2000. The maximum quantity of apples for which producers on a farm are eligible for payments is 5 million pounds.
Fruit and vegetable domestic promotion program No similar provisions. A new $10-million-per-year cost-share pilot program is established to create demonstration projects aimed at increasing fruit and vegetable consumption and promoting healthy eating.
Purchase of specialty crops for schools and military service institutions USDA purchases commodities for school lunches and for service institutions. Purchase of fruits and vegetables was not specified. Requires the Secretary to purchase at least $200 million in fruits, vegetables, and other specialty food crops.
Cranberry Acreage Reserve Program No similar provisions. Authorizes $10 million for a Cranberry Acreage Reserve Program. The program entails purchase of permanent easements on wetlands or on buffer strips adjacent to wetlands that are environmentally sensitive and have been or are currently used for cranberry cultivation.
Market loss assistance for onion producers No similar provisions. Provides $10 million of CCC funds as a grant to the State of New York to support onion producers in Orange County who suffered losses to onion crops during 1 or more CY 1996-2000.

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Provisions 1996-2001 farm legislation 2002 Farm Bill
Animal and plant protection
Animal health protection provisions consolidate and enhance authority of the Secretary relating to protection of animal health. No similar provisions. The Secretary may prohibit or restrict entry of any animal or related material if necessary to prevent spread of any livestock pest or disease. The Secretary may also prohibit or restrict exports if necessary to prevent the spread of livestock pests or diseases from or within the U.S. The Secretary has express authority to hold, seize, treat, or destroy any animal, as well as to limit interstate livestock movement. The Secretary shall compensate owners based on fair market value of destroyed animals and related material. The Secretary may also take measures to detect, control, or eradicate any pest or disease of livestock.
Commercial fisheries failure No similar provisions. The Secretary, in consultation with the Secretary of Commerce, can make funds available for emergency disaster relief to the commercial fishery industry in the Northeast. Funds would be used to reduce fishing capacity in the Northeast by buying up fishing permits. The program terminates in May 2003.
Market names for catfish and ginseng No similar provisions. The term "catfish" (for labeling and advertising purposes) is restricted to fish within the family Ictaluridae. For labeling or advertising of herbs or herbal ingredients, the term ''ginseng'' may only be considered to be a common or usual name for any herb or herbal ingredient that is derived from a plant classified within the genus Panax.
Animal welfare provisions No similar provisions. Provisions of the Animal Welfare subtitle clarify definitions for animals covered under the Animal Welfare Act, prohibit interstate movement of animals for animal fighting, and include a "Sense of Congress" that the Secretary should fully enforce the Humane Methods of Slaughter Act.
Penalties for violations of the Plant Protection Act The Plant Protection Act of 2000 defined USDA's authorities and responsibilities concerning plant protection, including actions to prevent the introduction and interstate movement of alien plant pests. It amended and superceded provisions in 10 laws, providing 1 statutory framework. It defines criminal and civil violation. Increases criminal penalties for persons who knowingly destroy records, move pests in commerce, or commit multiple violations of the Plant Protection Act.

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Provisions 1996-2001 farm legislation 2002 Farm Bill
Food safety
Animal health research Mandated that animal health and disease research should focus on protecting humans from animal diseases that can be transmitted to humans, as well as other objectives. Scientific studies allowed on transmission of spongiform encephalopathy in deer, elk, and moose, and chronic wasting disease.
Non-ambulatory animals No similar provisions. The Secretary shall investigate and submit a report to Congress on non-ambulatory animals (downed livestock that are too sick or injured to stand), promulgate regulations, and enforce them.
Food Safety Commission No similar provisions. Establishes a national Food Safety Commission that will make specific recommendations to improve food safety. The 15 commission members will be appointed by the President, and will include consumers, food scientists, food industry representatives, and health professionals, but no more than 3 Federal employees.
Irradiation No similar provisions. The Federal Food, Drug, and Cosmetic Act defined misbranded (improperly labeled) food, but did not specify which foods could be labeled as "pasteurized." The term "pasteurization" is redefined to include other processes for eliminating microbial pathogens besides heat treatment, potentially allowing foods treated with irradiation, high pressure, or ultraviolet light to be labeled as pasteurized. The Secretary of Health and Human Services will issue a final rule to regulate labeling of irradiated foods. Until the rule is issued, proposed labels will be promptly reviewed.
Biotechnology education No similar provisions. The Secretary will implement a public education program to provide information about the safety of foods produced using biotechnology. Scientific data from the program will be collected and made available.

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Provisions 1996-2001 farm legislation 2002 Farm Bill

Organic agriculture

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Organic provisions The Agricultural Risk Protection Act of 2000 authorized cost-share assistance for organic certification to producers in not more than 15 States that have a historically low participation rate in the Federal crop insurance program. Establishes a National Organic Certification Cost-Share Program to assist producers and handlers of agricultural products in obtaining certification under the National Organic Program established under the Organic Foods Production Act of 1990. Provides $5 million in FY 2002, to remain available until expended. Maximum Federal cost share is 75% annually with up to $500 paid to an individual producer or handler.
Exemption from commodity assessments No similar provisions. Farmers who produce and market solely 100% organic products and do not produce any nonorganic products are exempt from assessments under commodity promotion laws.

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