- Consider proposals from organizations representing small,
family and minority farmers in drafting farm policy, and
- Open up the Farm Bill process so there can be a Full and Open Debate on the future of farm policy.
As the wounds of the farm crisis deepen, more and more long time family farmers are leaving the industry - many by force, some by choice. Despite this trend, there is a pocket of new farmers, who are not yet deterred by diminishing farm prices. The next generation of farmers is eager to be part of a sustainable system that connects them to the land, supports their families, enriches their communities and supplies consumers with safe food.
This next generation is largely comprised of immigrant and minority farmers, closely linking the future of a sustainable community-based food system to their success. Like the Lee family [featured in Food and Faces], these farmers have the skill and commitment to be successful, but struggle against the hurdles of getting started. Access to land and credit create obstacles for all farmers but for new farmers, especially immigrants or minority producers, these obstacles often serve as barriers.
Like most start-up businesses, farming requires a substantial amount of start up capital. The profit calendar of farming, however, is quite different. Farmers must make a large investment at the beginning of the season for seeds, equipment and field preparations, but must wait until the end of the harvest to know how much will be recovered. Often, it takes several seasons before a farmer will begin to see profits from a new crop. The biggest problem facing small and new farmers is the long and tedious loan process which in many cases delivers funds long after they are needed.
Farmers rely heavily on loans to purchase seed, fertilizer, and equipment. Many beginning farmers have difficulty in securing loans. This is particularly challenging for new immigrants who may not have a documented credit history, prior experience with U.S. financial institutions, or even a bank account. Lack of credit history excludes most new, minority and immigrant farmers from being able to secure bank loans, leaving them dependent on USDA lending programs. New Euro-American farmers along with immigrant and minority farmers have special difficulty qualifying for these lending programs as well because they must demonstrate prior experience in managing a farm. If a loan is secured, it is often a monitored loan that requires all spending requests be submitted for approval (or disapproval). Minority farmers are disproportionately given supervised loans, often with higher interest rates or other restrictions.
Loan programs that meet the needs of small farmers and promote a strong network of family farms would include lower interest rates, longer payback terms, and a deferred payback option for new crops. The application process would be simplified and loan decisions given with in 30 days. In addition, farmers who are struck by three consecutive disaster years would be eligible for debt forgiveness.
Credit barriers coupled with the rising cost of farmable land due to scarcity and development trends keep many farmers from being able to own land. Land lost by farmers who retire or go bankrupt is frequently removed from the pool of productive family farmland because other farmers cannot afford to purchase it. Land that does remain in production is often bought up to expand huge corporate or contract farms or sold to local insiders who are given first pick of land that USDA-Farm Service Agency has confiscated from farmers who have defaulted on government loans. In the interest of preserving farms, minority, beginning and limited resource farmers should be given priority to purchase land in USDA inventory.
Little assistance is available to help beginning farmers navigate government agencies and other possible resources. Likewise, educational outreach to assist in financial, conservation or agriculture training is limited. When these services are offered other barriers such as location, transportation and language create additional obstacles. These obstacles are highlighted in the introduction to this months feature article "Coming to America: How Immigrant Farmers Could Become A Chef's New Best Friend."
THE JUICY TRUTH
Credit programs are just one example of how farm policies put small farmers at a disadvantage. Right now in Washington, DC commodity groups with ties to agribusiness are being given an open forum to share their policy proposals and suggestions for the 2002 Farm Bill with Congress. The House Agriculture Committee has excluded small farmers from their recent series of "invitation only" hearings, which will determine the future of government loan and payment programs. Commodity groups with ties to agribusiness represented all but two of the fourteen groups who were invited to testify.
The Administration and key members of Congress are pushing for the farm bill to move through Congress this summer. While small and family farmers have been the most adversely affected by the poor policies of the 1996 farm bill, they have not been invited to formally share their policy proposals and solutions to the current farm crisis with Congress. If we want to preserve our family farms and nurture the upcoming generation of new farmers, our policy makers must consider the needs of small, minority, and limited resource farmers and the proposals of groups like the Rural Coalition who represent them.
THE MAY SQUEEZE
Stop Corporate Agribusiness from Writing the 2002 Farm Bill
We are asking the Senate to:
What you can do:
- Contact and visit your Representative in their home office
and tell them that Commodity groups are not the only ones
with farm bill proposals. Ask them to consider the needs of
small, family and people of color farmers and the proposals
of groups, like the Rural Coalition, that represent them.
- Educate and Motivate! Share the Juicer, Food & Faces and monthly feature articles with family and friends. Link them to the Food n' Justice Campaign through the RC website and to our producers through the SuperMarketcoop.com.
Also included this month is the feature article mentioned in April's Juicer, "Freedom to Fail" by Ben Lilliston and Neil Ritchie overviewing the 1996 Farm Bill and its effects on small farmers.
Be Part of Our Campaign for Food n’ Justice,
visit www.ruralco.org.
Questions on food and farm policy?
Contact Heather Fenney at (202) 628-7160.
To join or support our work:
Rural Coalition/Coalición Rural
1012 14th Street, NW Suite 1100
Washington, DC 20005
(202) 628-7160
Visit www.Ruralco.org or
www.SuperMarketCoop.com.