Not just for farmers: Six ways that agriculture programs affect food, nutrition, and the environment Virginia Tech – March, 2013 Parke Wilde.

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Presentation transcript:

Not just for farmers: Six ways that agriculture programs affect food, nutrition, and the environment Virginia Tech – March, 2013 Parke Wilde

Outline 1.Inter-disciplinary and multi-sectoral 2.Six categories of agriculture policies 3.Demand expansion 4.Nutrition assistance

Outline 1.Inter-disciplinary and multi-sectoral 2.Six categories of agriculture policies 3.Demand expansion 4.Nutrition assistance

3 A social ecological framework for nutrition and physical activity decisions Source: Dietary Guidelines for Americans, 2010.

Source: USDA/ERS.

Source: USDA Economic Research Service 5 The USDA Economic Research Service food marketing dollar

Source: Adapted from Monke (2012a). 6 Authorizing legislation: mandatory programs in a new Farm Bill for 10 fiscal years

Outline 1.Inter-disciplinary and multi-sectoral 2.Six categories of agriculture policies 3.Demand expansion 4.Nutrition assistance

Source: Wilde, Six broad categories of farm policy interventions

Source: Wilde, Six broad categories of farm policy interventions

Price supports 11

Source: Wilde, Six broad categories of farm policy interventions

Source: Wilde, Six broad categories of farm policy interventions

Deficiency payments 14

Source: Wilde, Six broad categories of farm policy interventions

Source: Wilde, Six broad categories of farm policy interventions

Source: Wilde, Six broad categories of farm policy interventions

Source: Wilde, Six broad categories of farm policy interventions

Government payments from U.S. farm programs Source: Organization for Economic Cooperation and Development (OECD), Producer Support Estimates (PSE), Note: Payments based on output are identified separately, because of their implications for overproduction and for trade policy (see Chapter 4).

U.S. conservation programs Source: Organization for Economic Cooperation and Development (OECD), Producer Support Estimates (PSE), Note: Payments based on output are identified separately, because of their implications for overproduction and for trade policy (see Chapter 4).

U.S. Producer Support Estimate Source: Organization for Economic Cooperation and Development (OECD), Producer Support Estimates (PSE), Note: Payments based on output are identified separately, because of their implications for overproduction and for trade policy (see Chapter 4).

Outline 1.Inter-disciplinary and multi-sectoral 2.Six categories of agriculture policies 3.Demand expansion 4.Nutrition assistance

MyPlate

Checkoff program annual revenue, 2010

Outline 1.Inter-disciplinary and multi-sectoral 2.Six categories of agriculture policies 3.Demand expansion 4.Nutrition assistance

Supplemental Nutrition Assistance Program (SNAP) a.k.a. Food Stamp Program

SNAP benefits / food-at-home sales Source: Wilde, AJAE, Data source: USDA/FNS (SNAP) and USDA/ERS (food spending).

SNAP benefits / food-at-home sales Source: Wilde, AJAE, Data source: USDA/FNS (SNAP) and USDA/ERS (food spending).

Google Gadgets

Why do reasonable people disagree about the cost of healthy food? Differences in: Definitions of “healthy” Time constraints and cooking abilities Reference populations and geographic locations Policy objectives Ways of learning about the world

Nutrition criteria and other constraints Tolerance for difference from current consumption Cost required Choosing the cost of a healthy diet (in the spirit of the Thrifty Food Plan)

It all depends on what constraints you impose... Source: Wilde and Llobrera, Journal of Consumer Affairs, 2009.

Source: Wilde, Troy, and Rogers, American Journal of Agricultural Economics, Food at home

Source: Wilde, Troy, and Rogers, American Journal of Agricultural Economics, Food away from home

Healthy Incentives Pilot

For more information … Food Policy in the United States: An Introduction (Routledge/Earthscan, March 2013)

Government role in checkoff programs Increasing oversight from USDA/AMS Absence of producer referenda “Government Speech”

Pork industry organizations National Pork Board (NPB) –semi-governmental “checkoff” program –may not lobby the government –funded by $64 million in mandatory checkoff payments National Pork Producers Council (NPPC) –private trade association –may lobby the government

Sale of “Other White Meat” In 2006, NPB (checkoff) agrees to pay NPPC (trade association) $60 million. Appraised cost to rebuild a new slogan: $38 million over 7 years. Terms: $3 million per year for 20 years, with interest.

Questions about “Other White Meat” appraisal and terms Was discounting handled correctly? Were there any other buyers?