Lesson 3 Iowa and USA situation

1. Lesson 3Iowa and USA situation And some historical background

2. 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

3. 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.

4. Generalized types of US farming

5. Breakdown of farm produce by value

6. Agriculture as a part of US GHG emmissons

7. Agriculture’s contribution to US exports

8. What food the USA exports

9. Value of exports

11. Interesting example

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

13. 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

14. Beginnings • Iowa landscape has been industrialized more than any other state • This is the outcome of design intentionality

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

16. Design objectives • With different objectives we can design a new Iowa

17. 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

18. 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

19. Ceded land • Native American tribes ceded land in East IA in 1837 and 1842 leading to ‘land rushes.’

20. 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

21. 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 population States • Farmers are practical people! Farm lobbyists in DC event

22. 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

23. 1936 Soil Conservation and Domestic Allotment Act • Allowed the government to pay farmers to reduce production so as to conserve soil and prevent erosion.

24. 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

25. 1954 Agricultural Act • Established a flexible price support for basic commodities • Not clear on the procedures this followed

26. 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

27. 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

28. 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

29. 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,

30. 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

31. 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

32. 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)

33. 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

35. US agricultural Subsidies

36. Unequal Distribution

37. International Comparison of Farming Subsidies 2008

38. Component shares of Agriculture 1910 and 2000 Dr Ricardo Salvador, Kellogg Institute

39. 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

40. 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

41. 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

42. 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

43. 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