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U.S. SENATOR PATRICK LEAHY

CONTACT: Office of Senator Leahy, 202-224-4242

VERMONT


Much More Than Dairy

The Rest Of The Farm Bill Story For Vermont

WASHINGTON (Wed., May 8) – The new national dairy program in the farm bill is a big win for Vermont. But Sen. Patrick Leahy says Vermont also scores well with dozens of other features of the bill, including a huge boost in conservation funds, hunger and nutrition program help, organic farming promotion, specialty crop assistance, and support for home satellite viewers interested in local-into-local TV service. The bill also promotes broadband and telecommunications access in Vermont and rural America.

The U.S. Senate Wednesday completes its debate on the final version of the new farm bill, with a vote expected late in the day. It passed the House last week. If the Senate approves the bill, it goes to the desk of President Bush, who has said he will sign it.

Leahy, a Senate conferee on the farm bill and former Agriculture Committee chairman, led on a wide range of issues important to Vermont in the bill. He worked to maintain and expand bill language guaranteeing that Vermont will receive the highest levels of conservation, specialty crop, rural development and nutrition funding levels ever included in federal farm legislation.

"The new dairy program is a hard-fought win for Vermont, but we also got several other major victories on our other priorities," said Leahy. "It adds up to the best farm bill ever for Vermont. In several ways, this bill will immensely benefit our farms and communities and create Vermont jobs. It will bring millions of dollars to Vermont each year to support our dairy programs, our specialty crops, our farmers’ markets and our low-income nutrition assistance programs. The conservation programs targeted to our region will mean cleaner waterways, better soils, help in maintaining open space, and the preservation of family farm businesses."

Throughout the writing of and debate on the Farm Bill, Leahy, a founder and leader of a bipartisan alliance of senators from the Northeast and Mid-Atlantic states -- nicknamed the "Eggplant Caucus" -- worked to ensure that the final Farm Bill contained provisions ensuring regional equity in the final allocation of agricultural funds. Leahy is the only senator from the Northeast and Mid-Atlantic states on the Senate Agriculture Committee and was one of only a few Northeastern conferees in the House-Senate conference. During debate on the Senate version of the Farm Bill earlier this year, Leahy and the regional caucus held swing votes critical for passage of the national dairy program and of other key components of the bill.

ATTACHMENTS BELOW: 1) Top Non-Dairy Home Runs For Vermont In The 2002 Farm Bill
                                                 
2) (Table) Farm Bill Highlights For Vermont

NEWS BACKGROUNDER –

TOP NON-DAIRY HOME RUNS FOR VERMONT IN THE 2002 FARM BILL

VERMONT NUTRITION PROGRAMS SAVED --

President Bush has proposed terminating two highly successful and popular programs which help Vermont farmers, local communities, seniors and families on the WIC (Women, Infants and Children) Program -- more than 15,000 Vermonters participate in those programs. The new farm bill overrides those cuts and strengthens Vermont’s nutritional safety net.

More than one thousand Vermont seniors were going to be denied participation in the senior farmers' market nutrition program if the Bush Administration’s plan to terminate the program had survived. Funded at $15 million per year for seven years under the farm bill, the program ensures that Vermont’s senior citizens will be able to continue receiving vouchers to purchase fresh, locally grown farm products at farmers’ markets in Vermont. The assistance also helps local farmers by expanding demand for their products and helps communities by providing incentives to maintain these farmers' markets.

Also, several thousand Vermont families on the WIC program were going to be thrown off the WIC Farmers' Market Nutrition Program – created by Sen. Patrick Leahy in an earlier law, passed in 1989 – that provides vouchers to purchase fresh Vermont food products for families on the WIC Program. This program has been a major incentive for communities throughout Vermont to establish farmers' markets, by offering an outlet for the coupons while helping Vermont farmers sell directly to consumers without having to pay a middleman.

In addition, 1,000 Vermont seniors were at risk of being taken off a food assistance program called the Commodity Supplemental Food Assistance Program. The farm bill provides a one-time boost in funding for Vermont so that the state does not have to terminate participation in this senior meals program. The law also gives Vermont additional time to build caseloads, allowing Vermonters to fully participate in this program in future years.

Leahy has long been a leader on nutrition and hunger issues. Leahy as chairman restored "Nutrition" to the title of the Committee on Agriculture, Nutrition, and Forestry and currently chairs the Nutrition Subcommittee.

MORE THAN $72 MILLION FOR VERMONT CONSERVATION PRIORITIES --

The conservation title of the 2002 Farm Bill includes $17.1 billion in new funding for national conservation assistance for working farms and forests -- funds to protect open space, fertile soils, wildlife habitat, and water and air quality. Though the overall amount is less than the $21.3 billion championed by Senator Leahy in the Senate version of the bill, Leahy worked closely with House and Senate conferees to protect key provisions ensuring record levels of funding for the Northeast.

One of the most important provisions is language making Vermont and other low-population states eligible to have first priority to receive at least $12 million in conservation assistance each year – a level of funding more than twelve times the current Vermont allocation, which will greatly aid the state to address a conservation assistance backlog estimated at over $16 million.

Leahy also successfully doubled funding for a flexible conservation and risk management assistance program he had created for Vermont and 14 other states in the 2001 crop insurance bill. Last year, Vermont received $500,000 from this program.

Also within the package of conservation programs lies an historic increase in Leahy’s Farmland Protection Program – a working farmland conservation program he authored in the 1996 Farm Bill. Previously funded at $35 million and hugely oversubscribed by interested farmers, the Farmland Protection Program (FPP) now will be funded at almost $1 billion over the next 10 years. Last year, when Leahy inserted $17.5 million in farmland protection funds into the crop insurance bill, Vermont received $3.3 million. Since 1996, the FPP program in Vermont has protected more than 80,000 acres of Vermont’s most precious farmland.

Other programs already popular in Vermont include the Environmental Quality Incentives Program (EQIP), increased in the new farm bill from $200 million a year to more than $9 billion over 10 years, and the Wildlife Habitat Incentive Program, increased from $50 million a year to $700 million over 10 years. EQIP has been used extensively by Vermonters in the Lake Champlain basin to protect water quality and, prior to this new funding, was critically oversubscribed with applications for assistance outstripping available funds by over five-to-one.

Senator Leahy also supported establishing the new Conservation Security Program, a program that could send thousands of dollars a year in direct payments to Vermont farmers practicing strong conservation programs on their working lands. Finally, Leahy worked closely with House and Senate conferees to create a new $100 million conservation forestry program in the bill that will provide needed assistance to private forestland owners throughout Vermont.

NEW HELP AND NEW MARKETS FOR VERMONT SPECIALTY CROPS AND ORGANICS --

The Vermont delegation worked to add $94 million to the bill for direct aid for apple growers who have suffered crop losses in recent years. National apple growers, including several orchards in Vermont, have sustained losses totaling $1.5 billion over the past five years, including an estimated $500 million during the past year.

Senator Leahy, the "father" of the national organic standards program (which was included in the 1990 farm bill and will be fully implemented this October), championed several provisions that will greatly benefit Vermont’s organic farmers. Included in the farm bill is $15 million for organic research and extension initiatives, as well as $5 million for a national organic certification cost-share program which will provide assistance to farms becoming certified under the national organic standards program.

Also, certified organic farmers who produce and market only organic products will be exempted from paying assessments collected under commodity promotion laws. Vermont has been a leader in the organic industry: In 1997 nearly a quarter of the state’s vegetable acreage was in organic production, and the number of certified organic farms in Vermont has quadrupled in the past decade.

Vermont farmers and small businesses will also get a boost from $240 million included for Value-Added Agricultural Market Development Grants in the bill. Modeled after the successful pilot program currently run by USDA, this program will give Vermonters access to grants of up to $500,000 to develop, promote and market value-added goods throughout the state and the nation. Leahy also ensured that the final bill includes authorization of a new program to encourage and sustain local farmers’ markets – a program originally introduced in a bill authored by Leahy and Sen. Harry Reid (D-Nev.), which they introduced last fall.

UNPRECEDENTED ASSISTANCE FOR VERMONT’S RURAL COMMUNITIES

The final bill contains an unprecedented $1 billion in mandatory funds to assist rural areas in improving rural infrastructure, attracting jobs and improving high-speed internet access to businesses and homes, as well as improved satellite TV programming offering all local network television stations (in addition to the whole range of superstations, premier channels and other choices) to those with satellite dishes. These provisions are part of Leahy’s ongoing work to bring local TV stations to rural America for satellite home viewers and is related to the earlier Hatch-Leahy Satellite Home Viewer Act and the Burns-Leahy Local TV Act.

The bill provides $360 million to close the backlog of pending rural development water and waste disposal loans and grants. It also includes two new programs to help promote economic development and create wealth and job opportunities in the most economically challenged regions: Modeled after the Small Business Investment Program, a new $100 million Rural Business Investment Program will help provide equity investment for businesses in underserved areas, and another $100 million will go to the Rural Strategic Investment Program, a pilot program to assist communities in developing and implementing comprehensive development strategies.

A new broadband program will offer low-interest loans to improve broadband access in communities with populations of 20,000 or fewer. The bill also includes $50 million to help train firefighters and emergency medical personnel in rural areas.

The bill also authorizes a $60 million grant program to promote e-commerce initiatives in rural areas, a program championed by Leahy and Sen. Jeff Bingaman (D-N.M.); up to $1.5 billion annually in funding for rural water and waste disposal systems, including targeted spending to small systems; $5 million annually for grants to build rural broadcasting systems; and $10 million annually for the National Rural Development Partnership.

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Farm Bill Highlights for Vermont

Dairy

 

ü               National Dairy Program: providing payments comparable to the Northeast Dairy Compact whenever the price for fluid milk falls below $16.94 per hundredweight on up to 2.4 million pounds of milk annually per producer.  Payments will be made retroactively to December 1, 2001, and continue through September 2005.

ü              Milk price support program: reauthorized through 2007 at $9.90 per hundredweight.

ü              Dairy Research and Promotion: requires importers of dairy products to pay their fair share.

ü              Dairy Export Incentives Program: (DEIP) reauthorized to boost U.S. milk product exports.

ü              Johnes disease research initiative: Authorizes a new program to address problems associated with this chronic wasting disease.

 

Vermont dairy farmers will receive an estimated $9 million this year, and $46 million through 2005.

Specialty Crops

ü               Honey:  Establishes a new marketing assistance loan for honey producers.

ü               Apples: provides $94 million in payments to compensate for market losses due to low prices in 2000. 

ü               USDA Purchases: Requires USDA to purchase at least $200 million worth of fruits, vegetables, and other specialty crops annually for school lunch and food assistance programs.
 

ü               Exports: Increases Market Access Program to promote high-value products to $200 million annually by 2006 and provides exporter assistance to address barriers that restrict U.S. specialty crop exports.

 


Nationally, apple growers, including several orchards in Vermont, have sustained losses totaling $1.5 billion over the past five years, including an estimated $500 million during the past year. 


This program is used to promote exports of Vermont agricultural products.

Corn, Soybeans& Others

ü              Boosts payments to corn, soybean producers and others under traditional farm programs.  Creates a new counter-cyclical target price program.  Allows producers to update yields.


Vermont produces nearly 100,000 acres of corn each year.

 

Conservation

The conservation title of the Farm Bill includes $38.5 billion, including $17.1 billion in new funding for national conservation assistance for working farms and forests -- funds to protect open space, fertile soils, wildlife habitat, and water and air quality.

ü              Farmland Protection (FPP): Created by Senator Leahy in the 1990 Farm Bill and made a national program in 1996, FPP will receive $985 million over 10 years to help farmers purchase permanent agricultural easements on farmland threatened by sprawl.  The program now includes authorization for new “farm viability” grants to farmers.

ü              Environmental Quality Incentives Program (EQIP): Provides $9 billion over 10 years to address water quality problems associated with crops, dairy, and other livestock production.

ü              $150 million targeted to VT and 14 other States: Created by Senator Leahy in crop insurance legislation of 2001, the Agriculture Management Assistance program receives an additional $50 million.

ü              Priority for Under-Served States: Gives priority for annual funding of conservation programs to states that have not received at least $12 million in cumulative conservation funding in that fiscal year. 

ü              Provides $2 billion in new mandatory funding for a Conservation Security Program that makes incentive payments of up to $50,000 per farm to those adopting and expanding natural resource stewardship practices.


 

ü              Forest Lands Enhancement Program:  Creates a new $100 million program to provide needed assistance to private forestland owners adopting good conservation practices on their land.

 

 

 


Since 1996, the FPP program in Vermont has protected more than 80,000 acres of the state’s most precious farmland.


EQIP has been used extensively in VT to protect water quality throughout the state, particularly in the Lake Champlain Basin. 

Vermont received $500,000 under this program last year.

 

 

 


This level of funding is 10 to 12 times Vermont’s current funding allocation.  The state’s conservation backlog is estimated to be over $16 million.


Vermont has almost 4 million acres of privately owned, eligible forest land.

Organics

ü                Promotion: Exempts farmers who produce and market 100 percent organic products from paying assessments under commodity promotion laws.



 

ü                Certification: Provides $5 million to help pay producers’ costs (up to $500 per farmer) of becoming a certified organic producer.

ü                Research: Provides $15 million for the Organic Agriculture Research and Extension Initiative and directs USDA to facilitate access to organic research conducted outside of the United States.

ü                Data Collection: Requires USDA to collect segregated data on the production and marketing of organic agricultural products.

 Organic farming is among the fastest growing segments of agriculture. Leahy, “father” of the national organic standards, led on the organic provisions of this bill.

Vermont currently has more than 200 organic farmers.

This program was first authorized in 1990 but never before received funding.


This could help in the development of special programs and products targeted to organic producers, such as crop insurance.

 

Nutrition

 

 

 

 

 

 

 

 

 

 

ü              WIC & Seniors Farmers’ Markets Programs: Provides $15 million annually for a program to assist low-income seniors in buying fresh produce at farmers markets and extends WIC farmers markets program one additional year.

ü              Commodity Supplemental Food Program: Provide a one-time boost in funding for Vermont to prevent the state having to terminate participation in this senior meals program. The law also gives Vermont additional time to build caseloads, allowing Vermonters to fully participate in this program in future years.

ü              Food Banks: Increases funding for the purchase of fruits, vegetables, and other commodities to be distributed through State programs and food banks.

ü              Food Stamps: Reauthorizes all expiring food stamp authorities through FY2007, increases benefits for working families, and broadens eligibility for children, the disabled, and legal immigrants.

 

Several thousand Vermonters participate in these programs, created by Leahy, which the Bush Administration planned to terminate.

1,000 Vermont seniors were at risk of losing food assistance through CSFP.

 

 

Vermonters could receive over $1 million per year in additional nutrition benefits.

Rural Economic Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The bill contains an unprecedented $1 billion in mandatory funds to assist rural areas in improving the rural infrastructure, attracting jobs, and improving high-speed internet access to businesses and homes, as well as assistance to finance improved satellite TV programming which will offer all local network television stations to those with satellite dishes.

ü              Water & Waste Water Grants:   $1.5 billion annually in funding for rural water and waste disposal systems, including targeted spending to small systems, plus $360 million additional funding for this year to address the backlog of pending requests for funding.

 

ü              Value-added grants: Provides $40 million per year for new value-added agriculture market development grants.

 

 

ü              National Rural Development Partnership: authorizes this successful program for up to $10 million per year which provides funds for rural development councils throughout 40 states.

 

ü              Local-to-Local Television: The provision provides $80 million in federal funding to further implement the LOCAL TV Act sponsored by Senator Leahy and enacted in 2000. The new law is likely to finance the construction of two satellites designed to offer local network television to satellite dish owners in addition to offering all of the other programming packages.

 

ü              Rural Broadband: A new broadband program will provide $100 million for low-interest loans to improve broadband access in rural communities.

 

ü              Firefighters: $50 million will be spent to help train firefighters and emergency medical personnel in rural areas. 

 

ü              Rural Business Investment Program:  Modeled after the Small Business Investment Company Program, $100 million will be administered jointly by USDA and SBA to help attract private equity in rural areas.

 

ü              Rural Strategic Investment Program:  $100 million for this new pilot programs to assist rural areas between 50,000 – 150,000 in developing and implementing comprehensive development strategies.

 

ü              E-Commerce:  Authorizes a $60 million grant program to promote e-commerce in rural areas.

 

 

 

 




Vermont applications for water and waste water grants and loans still pending at the end of this fiscal year will be eligible for these funds.

 

Originally a pilot program last year, the Farm Bill increases funds available and redrafts the language to better work for Vermont’s producers.



Shores up long term viability for the Vermont Council on Rural Development

 


Right now, for most of Vermont, local residents without access to cable cannot watch local network television stations such as WCAX, WNNE, FOX, WPTZ, WVNY, or other local stations. 

Farm Credit

ü              Reauthorizes USDA farm lending programs and provides greater access to USDA farm credit programs for beginning farmers and ranchers.

 

Disaster Assistance

ü              Emergency Assistance for Livestock Producers:  Authorizes a new program to provide assistance to dairy and other livestock producers to cover economic losses due to natural disasters.

 

ü              Emergency Haying and Grazing:  Establishes more flexible rules for haying and grazing on land enrolled in the Conservation Reserve Program.

 

ü              Tree Assistance Program (TAP) Establishes a new program to provide assistance to eligible orchardists that planted trees for commercial purposes but lost such trees as a result of a natural disaster.

 

Other Provisions

 

ü              Renewable energy and energy efficiency: Establishes a loan, loan guarantee and grant program to assist farmers in purchasing renewable energy systems and making energy efficiency improvements, funded at $115 million.

 

ü              Historic Barn Preservation: Authorizes USDA to make grants to farmers to help protect historic barns that are at least 50 years old.

 

 

 

 

 

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