Nutrition and Public Policy Exam 2

Subsidy

Government money granted and support of a particular cause

Mandatory Farm Subsidy

• Required by federal law

• 80% agriculture programs

Discretionary Farm Subsidy

• More open to change per current federal spending bill

• 20% of agriculture programs

5 Categories of Commodity Specialization

• Grain and oilseeds

• Fruits, vegetables, and nuts

• Cattle

• Dairy

• Hogs, poultry, and eggs

Grain and Oilseeds

• 40% cash farm income

• Corn has the greatest field value

• Soybeans are the next biggest

• Wheat

• Rice

• Receives large subsidies

• Competitive

• Major exporter

Tensions with Grains and Oilseeds

• Ethanol policy

• Environmental groups vs. agricultural interests

Fruits, Vegetables, and Nuts

• 20% cash farm income

• 2% of U.S. farmland

• High value crops

• Subsidies are limited

Tensions with Fruits, Vegetables, and Nuts

• Debates over farmworker wages

• Controversy over market control

Cattle

• 20% cash farm income

• 40% farmland

• Few direct subsidies

Tensions with Cattle

• Concerns about market power

• Environmental debates on grazing land

Dairy

• 12% cash farm income

• Converts animal feed into milk, cheese…etc

• High prices due to trade barriers

Hogs, Poultry, and Eggs

• 7-8% cash farm income

• Changes in technology, geography, structure, and environment

• Coordination between growers and food manufacturers

Tensions with Hogs, Poultry, and Eggs

• Concerns about manufacturer control overproduction

• Debate on fairness

• Concerns about concentrated animal feeding operations

Agricultural Policies

• Price supports

• Supply controls

• Deficiency payments

• Direct payments

• Countercyclical payments

• Crop insurance

Price Supports

Government tries to increase price of good to help food producers

Supply Controls

Government caps supply so supply isn’t too high (large supply lowers demand and price)

Deficiency Payments

If farmers don’t meet the price they want, the government pays them so they don’t go out of business

Direct Payments

Directly give a check to farmers based on historical production

Countercyclical Payments

If prices get disrupted, this helps to offset the difference

Crop Insurance

• Private insurance that helps government subsidize

• Government supports farmers through factors that are out of their control

Market Goods

Goods are produced, bought, and sold in the private sector

Fundamental Policy Considerations within Agriculture Policymaking

• Make sure we produce/have enough food

• Promote public health

• Mitigate risks associated with farming, animal food production, and competitive market forces

Economic Conditions for Farm Owners

• Large family farms receive 26% of federal funding, as well as more annual incomes

• Production output skews heavily in favor of large family farms

• Great Depression, Dust Bowl, and racial discrimination affect farming

Federal Programs for Farm Owners

• Section 2501

• Pigford cases of 1999 and 2010

Farmer Demographics

• Young, Mexican men whose citizenship statuses are in question

• Poor conditions

• No overtime pay

• Maximum pay is $9.17

Policy Initiatives for Farmers

• Raise wages

• Pay bonuses per round of fruits/vegetables harvested

• Award overtime

  • Raise public awareness on poor working conditions

Hindrances to Change with Farmer Initiatives

• Opposing perspectives

• Disagreement in how to address the problem

• Incompatible priorities

• Political aspirations

Why Should Federal Policy Rethink How Large Prosperous Farms Receive a Significant Amount of Agricultural Subsidies?

• Resources can be better used to help sustain and promote small family farms

• Larger scale farms may be less compliant/supportive, making it more difficult to ensure compliance with regulations in public interest

Why Shouldn’t Federal Policy Rethink How Large Prosperous Farms Receive a Significant Amount of Agricultural Subsidies?

• Dealing primarily with larger farms = greater opportunity to produce a desired policy outcome

• Federal funding can be viewed as an investment, more uncertainty and risk with smaller farms

Why Should Federal Law Require Farm Workers to be Paid Overtime?

• Other occupations are paid overtime

• Not having competitive enough wages can cause farm worker shortages

Why Should Federal Law Not Require Farm Workers to be Paid Overtime?

• Overtime requires more resources from farmers, which could negatively impact small farmers who can’t afford this

• Farm work is seasonal and inherently time intensive during certain seasons

Policy Approaches

• Process rules

• Performance standards

• Liability enforcement

• Food labeling rules

• Basic scientific research

• Consumer education

Process Rules

Describe exactly what practice and ingredients a farmer or manufacturer uses

Performance Standards

Describe how food safety quality will be measured and what level of safety must be achieved

Liability Enforcement

• Court systems strengthen the incentive for producers to maintain a high standard of food safety

• Courts may help victims collect damages from producers in the event of a food safety failure

Food Labeling Rules

Encourage or require manufacturers to include certain information on food packages

Basic Scientific Research

The government can supply a public good that private firms might not have sufficient incentive to provide

Consumer Education

Provides consumers with information about the safety of different foods

Principles of Food Safety

• Co-management principle

• Precautionary principle

Co-Management Principle

• Food safety and ecological health objective together

• Burden of proof is split

• Advocates for safety measures must show evidence that the measure is effective and not too harmful to the environment

Precautionary Principle

Food producers carry the burden of proof

Symmetric Imperfect Information

Producer and consumer lack important information about food safety qualities

Asymmetric Imperfect Information

One party has more information about the safety of a product

Basic Considerations in Governing Food Safety

• Frequency and scope

• Uncertain information

Risk Assessment

How to understand a problem or challenge

4 Steps to Risk Assessment

• Hazard identification

• Hazard characterization

• Exposure assessment

• Risk characterization

Hazard Identification

Is it hazardous?

Hazard Characterization

How likely are the effects?

Exposure Assessment

How many people are affected?

Risk Characterization

How great is the effect?

Risk Management

How best to manage or handle the problem

Steps to Risk Management

• Policy development

• Balancing risks and benefits

• Regulatory control and monitoring

• Hazard analysis critical control points

• Public communication

Policy Development

How to mitigate the problem

Balancing Risks and Benefits

Pros and cons

Regulatory Control and Monitoring

Implementation

Hazard Analysis Critical Control Points

Keep control over food production system

Public Communication

Warnings

Risk Assessment vs. Risk Management

• Risk assessment is science based

• Risk management involves policy and political decisions

Pesticides

• Used in order to control weeds, repel bugs, and prevent mold and fungi from growing on crops

• All pesticides sold in the U.S. must be registered with the EPA

  • FDA and USDA test different products to make sure they are within standards

GMOs

• When a GMO is introduced it is generally recognized as safe (GRAS)

• Government doesn’t test every chemical for safety

1986 Coordinated Framework for the Regulation of Biotechnology

• FDA: sets and enforces food safety standards that those who produce, process, store, ship or sell food must follow

• EPA: Not only monitors pesticides used on GMOs, but regulates the safety of the substances that protect GMO plants to make them resistant to insects and diseases

• USDA: APHIS makes sure GMOs are not harmful to other plants

Plant Biotechnology Consultation Program

• GMO developer meets with FDA about potential new product for use in human and animal food

• GMO developer submits food safety assessment data and information to the FDA

• FDA evaluates the data and information

• Consultation is complete once the FDA has no more questions

USDA

• Resonsible for safety of most meat, poultry, and processed eggs

• Prevent food borne illness

• FSIS

FDA

• Responsible for the safety of most food products (except meat, poultry, and processed eggs)

• Oversees animal drugs and livestock feed

• FSMA expands FDA authority

CDC

• Monitoring and investigating foodborne diseases

• Conduct epidemiologic and scientific research

EPA

• Regulate and set tolerances for pesticides

• Safety standards for drinking water

Department of Health and Human Services

Similar to the FDA

Animal and Plant Health Inspection Service (APHIS)

• Oversees prevention of animal and plant diseases, including foreign diseases and pests

• GMOs

Agricultural Marketing Service

Establishes quality and marketing grades and standards for dairy products, fruits, and vegetables, as well as meat and other products

Department of Commerce

Oversees voluntary seafood safety and quality inspection services on a free-for-service basis

National Oceanic and Atmospheric Administration

Similar to the Department of Commerce

Department of Homeland Security

Conduct border inspections and coordinate other activities to protect food from intentional harm such as bioterrorism

U.S. Customs and Border Protection

Similar to the Department of Homeland Security

Key Agencies

• USDA —> FSIS

• HHS —> FDA and CDC

• EPA

Food Policy

Laws, regulations, decisions, and actions by governments and other institutions that influence food production, distribution, and consumption

Aspects of Food Policy

• Federalism

• Electoral outcomes

• Geography based congress

Food Industry

• Agriculture

• Manufacturing

• Sales and Advertising

• Consumption

Public Policy Issues

• Hunger

• Safety

• Environment

• Health

Farm Bill

Omnibus Bill (big with many parts)

SNAP

• Supplemental Nutrition Assistance Program

• Constitutes 80% of mandatory spending in whole Farm Bill

• Main focus to provide food to people dealing with food scarcity

Poverty

Society’s success or failure to provide concrete basic needs like shelter, health care, and food

Official Poverty Measure

• 3x the cost of a minimum food diet

• Resources defined as pre-tax income

• Tax credits such as the earned income tax credit or SNAP do not count as resources

Supplemental Poverty Measure

• 1.2x the cost of a larger bundle of basic needs

• Goes beyond food

• Resources defined as cash income plus benefits, minus basic expenses, minus net taxes

Controllable Causes of Poverty

• Single parenthood

• Failures in education attainment

• Labor market participation

Uncontrollable Causes of Poverty

• Discrimination

• Disability

• Decline in wages for workers with no high school diploma

Food Insecurity

A condition of struggling with hunger

Fighting Food Insecurity

• WIC

• SNAP

Food Security

Access at all times to enough food for an active, healthy life

Food Insecurity

Availability of nutritionally adequate and safe foods is limited or uncertain

Hunger

Initially defined as the uneasy or painful sensation caused by a lack of food or the recurrent and involuntary lack of food

Federal Government Measurement Approach

• 18 survey questions about symptoms of food insecurity on one or more occasions within the last 12 months

• 10 questions asked for respondents with or without children

Thrifty Food Plan

• Reflects the economic conditions and dietary guidance

• Revises the necessary quantity of food

• Requires nutritionists and economists

Thrifty Food Plan Constraints

• Cost

• Energy

• Nutrient

• MyPyramid Food

The Distance Function

• How much a proposed food plan differs from current consumption

• When the distance function is small, the food plan is similar to current consumption patterns

• When the distance function is large, the food plan is different from current consumption patterns