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Policy Positions
USA Dry Pea & Lentil Council Policy Positions
2009
FARM PROGRAMS
The USADPLC seeks to be included and treated equally with other farm program commodities in the area of farm and conservation program support.
1. Farm Bill Implementation - USADPLC is working for fair treatment of pulse crops when the 2008 Farm Bill is implemented. The USADPLC supports:
a. Pulse Base Acre Establishment - The USADPLC supports the establishment of pulse crop base acres on production years (2004-2007). The 2008 Farm Bill states that USDA is to follow the 2002 Farm Program model established for oilseeds which used the previous four years of production (1998-2001) to establish oilseed base acres. In late December 2008, USDA announced it would establish Pulse Crop Base Acres based on planted acreage from 1998 through 2001. We strongly object to this determination by USDA and request that pulse crop base acres be established on the most recent four-year production period (2004-2007). The result of this decision by USDA is significant. The total average planted acreage of pulse crops during the 1998-2001 time period is 533,300 acres versus the average acreage from 2004-2007 of 1,296,275 acres. The USADPLC believes that using the time period of 2004-2007 to be a better reflection of the actual pulse base being planted across the northern tier.
b. Payment Yield Calculation - The USADPLC supports establishment of the pulse payment yield based on the average yield during the period of 1998-2001. The 2008 Farm Bill establishes the pulse crop payment yield based on national average yields from 1998-2001. The payment yield is to be adjusted by dividing the national average yields from 1981-1985 by the national average yields from 1998-2001. Unfortunately, the USDA dropped the annual production and yield report for dry peas and lentils during the period of 1981-1985. There are no USDA/NASS national average yields to establish the factor. The law gives the Secretary of Agriculture the authority to establish those national average yields if none exist in a "fair and equitable" manner. Given the lack of data to establish the "factor" we support the USDA basing the pulse payment yield on the national average yields from 1998-2001.
2. Conservation Security Program (CSP). The USADPLC supports equal access and full funding of the CSP program to provide incentives to farmers to achieve improvements in soil, air and water quality. USADPLC supports continuing the CSP with the following improvements:
a. Fully fund the Program. CSP should provide equal opportunity to all producers without artificial restrictions to access based on funding limitations. Restricting the program to a limited number of watersheds every eight to ten years gives significant economic advantage to those producers in the watersheds selected.
b. Realistic Nitrogen Credit. The current credits for planting a nitrogen-fixing crop like legumes are not realistic in an annual cropping system. The base requirement exceeds the value of any crop planted for nitrogen replenishment. There should be a credit to the producer for any reduction of nitrogen use due to the rotation.
c. Develop a wildlife credit for annual cropping. Annual cropping provides year-round cover for many animals. Producers should be encouraged to utilize measures that provide increased wildlife habitat.
d. Increase technical staffing for CSP. USDA is implementing this new program while cutting staff. The data collection requirements and the self evaluation process required by the program are daunting for most producers. In addition, NRCS is tasked to provide technical support and distribute funds. USADPLC supports at least maintaining current staff levels at NRCS offices to facilitate full implementation of the CSP program.
3. Federal Crop Insurance Reform. The USADPLC supports establishing Federal Crop Insurance programs for all dry peas, lentils and chickpeas that manage risk for US pulse producers at an affordable price. To improve crop insurance for our industry, RMA/USDA needs to:
a. Shorten Time for Yield Establishment. Pulse crops planted in rotation with other crops take many years to develop the needed level of production history. USADPLC supports expansion of the use of "master yields" or personal "T" yields to reduce that time period.
b. Pulse Average Revenue History (ARH) Insurance Program. USADPLC supports the creation of an Average Revenue History policy for dry peas, lentils and chickpeas similar to CRC insurance for wheat. The USADPLC supports a pilot program in both the western and eastern growing regions.
c. Credit for Small Grains Premiums. Production risks are reduced when producers plant small grains following pulse crops. The USADPLC supports premium credits on small grains if planted in pulse crop stubble.
d. Winter Pea Coverage in Non-Traditional Counties. Current winter legume coverage is only available in traditional counties with existing spring pea coverage. USADPLC supports expanding coverage in other counties which do not have spring pea coverage.
4. Trade Sanction Policy. The USADPLC opposes any trade sanctions on food, except in cases of extreme national emergency or a declaration of war.
5. Conservation Reserve Program Policy (CRP). The current CRP policy does have a detrimental effect on the pulse industry and the rural communities that support our industry. We oppose the expansion of the CRP and the acceptance of whole farm bids on historically productive farm ground.
6. USDA Export Credit Programs. The USADPLC supports improved USDA export credit programs. The USDA needs to improve specialty crop export credit programs to allow our producers and exporters to effectively compete in the world market. We believe the Suppliers Credit Guarantee Program should be increased from the current 65% coverage level.
7. Domestic MAP Program. USADPLC supports establishment of a Domestic Market Access Program to promote healthy dietary choices for US consumers and public school students. Competitive grants would make funds available to commodity groups to encourage the healthy uses of products in schools and across the nation.
8. Farm Bill Policy. USADPLC is working for full equality for pulse crops as commodities under Federal Farm Policy. The USADPLC supports:
a. Pulse Marketing Loan/LDP program for dry peas, lentils and chickpeas. The marketing assistance loan and loan deficiency payment (LDP) program provide the best safety net for US farmers facing dips in market prices.
b. Pulse Direct Payment program. The USADPLC supports a direct payment for dry peas, lentils and chickpeas equal to other program crops.
c. Pulse Counter-Cyclical program. The USADPLC supports continuation of the pulse counter cyclical program equal to other program crops.
d. Pulse ACRE program. The USADPLC supports the inclusion of pulse crops in the ACRE program.
e. Pulse Energy Conservation Incentive Payment. The USADPLC supports a Pulse Energy Conservation Incentive Payment (PECIP) to producers of dry peas, lentils and chickpeas that require no nitrogen fertilizer.
RESEARCH
Research is the backbone of any successful farm commodity. If Congress and the Administration want to help farmers and America's economy, their investment in agricultural research needs to be increased.
1. Pulse Quality Lab/End-Use Research Program located at NDSU, Fargo, ND $1,100,000. The USADPLC supports the establishment of a pulse quality testing facility as a part of the End-Use Research Program located at NDSU. The establishment of a joint pulse/oilseeds/wheat quality lab has been proposed in the 2009 North Dakota Governor's budget to be located at the NDSU Main Station in Fargo, ND. The $1.1 million proposal would include a Research FTE and Assistant FTE designated to the testing of pulse crop quality. USADPLC requests $1.1 million to fund the NDSU Pulse crops/oilseeds/wheat quality lab located in Fargo, ND.
2. USDA/ARS Cool Season Grain Legume (Pulse) End-Use Research Program $500,000. The USADPLC supports the creation of a USDA/ARS program to develop new uses for pulse crops through the evaluation of end-use characteristics such as cooking time, canning quality, frying traits, extrusion consistency, protein, starch and other nutrient factors important to end-users. This USDA/ARS program would partner with the state funded pulse quality lab being created at the NDSU campus in Fargo, ND. The USADPLC requests a $500,000 appropriation in FY 2010 to fund a new USDA/ARS scientist dedicated to developing new food and industry end uses for dry peas, lentils and chickpeas at the USDA/ARS facility in Fargo, ND.
3. Cool Season Food Legume (CSFL) Research Program $1,200,000. Pulse crops are environmentally sound, creating their own nitrogen and requiring less energy to produce. The CSFL Research Program is a critical tool for the industry to enhance breeding and genetics, find more effective crop management strategies and develop new products and end-uses for pulse crops. Using a team approach encouraging collaboration across disciplines and institutions, CSFL employs scientists from WA, ID, OR, MT, ND, SD, NE and WY. Both university and USDA-ARS scientists work together to conduct research answering the needs of producers across the northern tier states. Results include new crop protection materials, new products and varieties with improved performance. The Continuing Resolution reduced this grant to zero in FY 2007, stopping all progress for that year. In FY 2008, the appropriation is for $416,000 to support the 21 proposals received. The USADPLC requests a $1,200,000 appropriation in FY 2010 to fund the Cool Season Food Legume research program.
4. USDA/ARS Winter Grain Legume Plant Geneticist Position $300,000. Dry pea, lentil and chickpea growers have a need for winter-sown cool season legumes in their crop rotation. Development of high-yielding winter pulse varieties will help US growers remain competitive with rapidly expanding pulse acreage in Canada and Australia. This position would be established at the USDA/ARS Grain Legume Genetics and Physiology Research (GLGPR) Unit at Washington State University, Pullman, WA. In FY 2006, Congress appropriated $120,000 for this position. In FY 2007 and 2008, the partial funding of this critical position continued. The USADPLC requests a $300,000 appropriation in FY 2010 to fund a new USDA/ARS Winter Grain Legume Plant Geneticist located in Pullman, WA.
5. USDA/ARS Legume Agronomist/Breeding Program Manager in Montana $300,000. Expanding acreage in growing regions in MT, ND, SD and NE have created a growing need for coordination of the Grain Legume Genetics and Physiology Research Unit (GLGPR) Breeding Program based in Pullman, WA. Rapid development of superior varieties with improved yield, quality and disease resistance is the top research priority for USADPLC producers. Planting trials located across the entire US require additional support to coordinate a national breeding program which includes the Northern Plains. An Agronomist/Scientist stationed in Sidney, MT, would be able to coordinate planting, collection of data, evaluation and selection of early and advanced breeding lines developed at the USDA/ARS GLGPR Unit at WSU in Pullman. USADPLC requests a $300,000 appropriation in FY 2010 to fund a new USDA/ARS Agronomist/Breeding Program Manager to be stationed at the USDA/ARS facility in Sidney, MT, and assigned to the GLGPR Unit.
6. Sclerotinia Initiative $500,000. For the past five years, the pulse industry has joined with soybeans, dry beans, canola, sunflowers and the USDA-ARS to manage an Initiaitve currently funded at $1.7 Million to combat Sclerotinia or "white mold". This project provides competitively selected research based on scientific merit, an outside review of the progress being made and a forum to report and discuss the results provided to the industry. Reported outcomes include finding sources of resistance, improving basic knowledge about the pathogen, and exploring efficacay of management tools. Since formation of the initiative, genetic resources have become available like the complete map of the soybean and medicago truncatula genomes in addition to the map of the Sclerotinia genome. The participants in the initiative request funding be increased $500,000 to expand the program to utilize these resources. USADPLC requests an increase to funding of $500,000 to the Sclerotinia Initiative to a total of $2.2 million for FY 2010.
7. Pulse Nutrition and Global Climate Change Initiative $2.5 Million. Global health issues like diabetes, obesity and infant mortality can be prevented by improved nutrition. Legumes are high in protein, low in fat and provide many important nutrients for good health. In addition, legumes generate nitrogen in the soil, reducing the reliance on commercial fertilizer. This reduces the amount of energy required to produce food and improves the global environment. USADPLC requests $2.5 million (for each of the next four years) in FY 2010 for the next four years to improve the nutritional quality, end uses and nitrogen fixing ability of dry peas, lentils and chickpeas.
8. USDA/ARS Pulse Breeding Program at WSU, Pullman, WA $350,000 - The Grain Legume Genetics and Physiology Research Unit (GLGPR) at USDA/ARS in Pullman, WA, provide critical germplasm development for dry peas, lentils and chickpeas for the nation. This unit supports variety development and disease research for WA, ID, OR, MT, ND, NE and SD. Acreages of pulse crops have increased dramatically over the past five years, particularly in MT and ND, growing from 10,000 acres to over 700,000 acres in the two states. Funding levels for the scientists attached to the research unit has not increased in spite of this increase in the scope of their responsibilities. USADPLC requests a $350,000 appropriation in FY 2010 to fully fund the ARS GLGPR Unit at WSU, Pullman, WA.
9. Increase Funding to USDA/ARS Vegetable and Forage Legume Research Unit at WSU, Prosser, WA $180,000. The Vegetable and Forage Legume Research Unit at WSU Prosser, WA, currently supports the following two scientists: Senior Plant Breeder for Dry Edible Beans and a Legume Plant Pathologist for Root Diseases of Edible Legumes (peas, lentils and chickpeas). Funding levels for the scientists attached to the research unit have not been increased in 12 years. The Plant Pathologist is the only root pathologist working on peas, lentils and chickpeas in the US. USADPLC requests a $180,000 appropriation in FY 2010 to fully fund the ARS Vegetable and Forage Legume Research Unit (VFLRU) at WSU, Prosser, WA. We further request that the Legume Plant Pathologist and his share of the unit funding be moved to the Grain Legume Genetics and Physiology Research Unit (GLGPR) at USDA/ARS in Pullman, WA.
10. (On Hold) Legume Genome Mapping Initiative, $1.5 million. The USADPLC supports the establishment of a national genome mapping project similar to the human genome mapping effort for all legume crops. This project would be a multi-state and multi-industry effort administered by the USDA-ARS to develop strategies and share information developed by the breeding geneticists and scientists associated with all legume crops. In FY 2006, Congress approved language requesting the National Research Institute (NRI) consider legume genomics. In response, the NRI allocated $5.0 million in FY 2006 to the Legume Genome Mapping Initiative. While a step in the progress to map the genome, the volume of information and the complexity of the project will still require an ongoing effort to complete the goal of providing useful genetic tools to legume breeders and scientists. The USADPLC requests a $1.5 million appropriation in FY 2010 to establish a Legume Genome Mapping Initiative.
(on hold because the position is now permanent)
11. USDA/ARS Grain Legume Pathologist Position $250,000. In FY 2001-02, Congress approved $250,000 to fund a new Grain Legume Plant Pathologist within the USDA/ARS Grain Legume Genetics and Physiology Research Unit located on the campus of WSU. This position is dedicated to researching foliar diseases of dry peas, lentils and chickpeas. The USADPLC strongly supports permanent funding of $250,000 for the USDA/ARS Grain Legume Plant Pathologist at WSU in Pullman, WA.
MARKET PROMOTION
The US pea, lentil and chickpea industry consists primarily of small, family-owned businesses that provide value-added jobs in rural and export communities. Over 60% of these legumes are exported overseas. In order to keep our rural economies strong, we need the Federal Government to join with our industry to aggressively promote our product. Congress and the Administration need to increase funding for market promotion for US farm commodities. Last year the pea, lentil and chickpea industry contributed over $475,000 to MAP and FMD market promotion activities.
1. Market Access Program (MAP) $300 million. MAP is an effective program for the US pea, lentil and chickpea industry. Strong market promotion programs are critical to increasing the demand for our commodities around the world. MAP promotional efforts also resulted in increased sales to India, Latin America, Asia and Europe. The USADPLC fully supports the continuation of MAP. Effective market promotion programs are critical to the long-term financial health of US farmers. The USADPLC requests an appropriation of $300 million in FY 2010 to fully fund the Market Access Program (MAP).
2. Foreign Market Development (FMD) Program $45 million. The USADPLC has been a USDA Foreign Ag Service (FAS) Cooperator since the late 1960s. This market development program is jointly funded between the industry and the Federal Government to provide technical and trade service assistance to our overseas customers. FMD funds have been used effectively to develop new markets for dry peas, lentils and chickpeas in Asia Pacific, Europe, the Indian Sub-continent and Latin America. The USADPLC requests an appropriation of $45 million in FY 2010 to fully fund the Foreign Market Development (FMD) program.
3. P.L. 480 Title II Funding $2.5 billion. P.L. 480 is a food aid program designed to assist those in need around the world. The American people have a long history of sharing their wealth with those facing natural disasters and economic hardship. The program builds goodwill and strengthens the relationship between the US and developing countries. P.L. 480 also sets the stage for future commercial trade and benefits national security interests. Peas, lentils and chickpeas provide a cheap source of protein, vitamins and minerals to those P.L. 480 recipients facing food shortages. The USADPLC strongly supports the P.L. 480 program for humanitarian purposes and as a tool for developing future markets for US commodities. We should not forget that India, Brazil, Colombia, South Korea, Taiwan and Greece were P.L. 480 countries not so many years ago. Today, each of these countries is a regular commercial buyer of US peas, lentils and chickpeas. The USADPLC requests an appropriation of $2.5 billion in FY 2010 to fully fund the P.L. 480 Title II program.
4. Free Trade Agreements. The USADPLC supports free and fair trade between countries. Over 60% of the peas and lentils produced in the US are exported overseas. Reducing trade barriers is vital to the continuing growth of our industry. However, free trade agreements negotiated in the past 10 years have failed to adequately address important phytosanitary issues, environmental concerns, harmonized tariff rate quotas, unfair production and/or export subsidies and currency manipulation. The USADPLC strongly supports ratification of the FTA's with Colombia, Korea and Panama. The USADPLC supports the current WTO negotiation if the result is an agreement that puts US agriculture on an equal playing field with other countries.
5. Trade Barriers. The USADPLC will continue to work toward its goal of reducing and/or eliminating unfair trade barriers. The following are of top priority: a) Eliminating the phytosanitary impediments in China, India, Chile and Brazil and b) the elimination of all trade barriers with Cuba.
6. Country of Origin Labeling. The USADPLC recommends that food packagers list on their labels the product's country of origin.
CROP PROTECTION REGULATIONS
Over the past several years the Administration and Congress have repeatedly passed regulations that have increased the cost of producing farm commodities. If US pea, lentil and chickpea growers are to compete effectively, these regulations need to be reviewed and modified to reach the environmental goal without sacrificing the industry's competitiveness.
1. Crop Protection Labels. The Council plans to forward the following emergency and special label requests to EPA for the upcoming crop year. It is critical that these crop protection materials be approved by EPA prior to spring planting:
a. Section 18 Emergency Use for Lorox® (Linuron) in Lentils as a pre-emergent control of chamomile mayweed and Pursuit® (imazethapyr) resistant prickly lettuce.
b. Section 3 Federal Label for Lorox (Linuron) in lentils, dry peas, and chickpeas.
c. Section 3 Federal Label for Butyrac® (2,4-DB) in Lentils as post emergent control of broadleaf weeds.
d. Continued support for the Section 3 Federal Label for Dimethoate to control aphid in peas and lentils.
2. Crop Protection Harmonization. The USADPLC is currently involved in the NAFTA Technical Working Group for Harmonization. The Technical Working Group is tasked to harmonize the crop protection regulation systems between the NAFTA participants to enhance trade and reduce unfair competition. The USADPLC priorities for this working group are as follows:
a. NAFTA Label. A NAFTA label honored by all participants would enable equal access to crop protection materials, prevent trade barriers created by differences in maximum residue levels (MRL) and establish uniform safety measures across the trade zone.
b. Expedite Labeling Process. The USADPLC supports the use of expanded international crop zones or crop use patterns to evaluate residue data for labeling crop protection. Expediting labeling processes allow producers in North America to be the most cost effective producers. In addition, the registrant would benefit by faster commercial availability for their products.
c. Harmonization of MRL's. Differences in MRL's between exporting countries are a potential trade barrier. The TWG should strive to equalize differences between NAFTA and worldwide participants to establish protocols for countries to use when MRL's do not exist for one participant.
d. Expansion of Crop Groupings. USADPLC supports continued work by EPA to expand the use of crop groupings in other countries. This will encourage work sharing, joint release of crop protection materials, and improve access to crop protection by pulse growers worldwide.
3. IR-4 Program & Pesticide Registration-$13.7 million. The USADPLC supports funding for the IR-4 program to assist in the registration of crop protection products for specialty crops. The USADPLC supports an appropriation of $13.7 million in FY 2010 to fund IR-4 programs. In addition, the USADPLC also supports other regional programs to register new products for minor crops.
TAXES
Pea, lentil and chickpea farmers are facing escalating competition from around the world. There is increased pressure to lower the cost of producing these products in order to compete. If US farmers are to compete in this new world order, then production costs must be lowered and incentives to reinvest in their businesses encouraged. The USADPLC feels the following changes to the US tax code would help farmers compete in today's marketplace.
1. Inheritance Tax Reform. Family farms are one of many small, family-owned businesses that would benefit from reforms in the inheritance tax laws. The current law is a financial burden on those trying to pass their small businesses on to their children. The USADPLC supports the reform of the inheritance tax system so that family farms can remain in the family.
2. Investment Tax Credit. In order to compete, farmers need to invest in new technology. The USADPLC supports the return of an investment tax credit.
3. Depreciation Allowance $250,000 - The USADPLC supports an increase of the depreciation allowance for agriculture to $250,000 per tax year.
4. Biofuel Energy Tax Credit. USADPLC supports the use of an income tax credit to promote the use of biofuels in the nation.
TRANSPORTATION ISSUES
Transportation - The USADPLC supports fair, efficient and cost effective movement of dry peas, lentils and chickpeas in the US transportation system. Specifically, the USADPLC endorses:
1. Rail Transportation
a. Quoted Rates - Honoring published and/or quoted rates for rail service.
b. Railcar Supply - Increasing railcar supply and service to all shipment sizes.
c. Short line railroads - Increase State and Federal funding of short line railroads.
d. Northern Tier Double Track - The USADPLC supports the construction of a double track across the northern tier of the US (Chicago to Seattle) to assist our industry in moving its product to market.
2. River Transportation
a. Dredging - Increase funding for maintenance and dredging of water transportation channels.
b. Dam Removal - The USADPLC supports maintaining the current Pacific Northwest (PNW) river transportation system and opposes the removal of PNW dams.
UPDATED: 5/09
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