Friday, Aug. 22, 2008

Farm bill excludes dried fruits and nuts as snacks

Action could slam the door on potentially lucrative markets

WASHINGTON - Congress dissed California dried fruits and nuts in the latest farm bill, and growers are feeling ambushed.

In a last-minute maneuver that is only now coming to light, farm bill authors cut out dried fruits and nuts from an ambitious school snack program. The action could slam the door on some potentially lucrative markets.

"This is a real problem with the bill, excluding an entire industry," said Dan Haley, a lobbyist for California specialty crops.

It also illustrates how Capitol Hill works, sometimes in the dead of night.

Congress in June overcame President Bush's veto to overwhelmingly approve the new five-year farm bill. The Congressional Budget Office estimates the package of subsidies, food stamps, conservation programs and more will cost upward of $307 billion.

The bill includes record spending for the fruit, vegetable and nut industries that banded together as a specialty crop alliance.

Notably, the new farm bill expanded an existing fresh fruit and vegetable snack program previously limited to 14 states.

Starting Oct. 1, selected schools in all 50 states will be able to partake in the fresh fruit and vegetable snack program. The new farm bill adds some $500 million for the purchases over the next five years.

"There was a general assumption that nuts and dried fruits would be included in this program; they are considered to be healthy," noted Rep. Jim Costa, D-Fresno.

Californians reckoned on multiple benefits. Specialty crop producers would gain new customers. Berries, bananas, apples and grapes were among the most popular fruits purchased in previous years.

Carrots, celery and broccoli were the most popular vegetables, the Agriculture Department reported.

Students, in turn, are supposed to eat healthier. The new snack grants will emphasize schools with a high proportion of students eligible for free or reduced-price meals.