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

Nutrition is our Agendanutrition.tufts.edu

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

4

A social ecological framework for nutrition and physical activity decisions

Source: Dietary Guidelines for Americans, 2010.

Source: USDA/ERS.

Source: USDA Economic Research Service

6

The USDA Economic Research Service food marketing dollar - 2010

Source: Adapted from Monke (2012a).

7

Authorizing legislation: mandatory programs in a new Farm Bill for 10 fiscal years 2013-2022

Outline

1. Inter-disciplinary and multi-sectoral2. Six categories of agriculture policies3. Demand expansion4. Nutrition assistance

Source: Wilde, 2013. 10

Six broad categories of farm policy interventions

Source: Wilde, 2013. 11

Six broad categories of farm policy interventions

Price supports

12

Source: Wilde, 2013. 13

Six broad categories of farm policy interventions

Source: Wilde, 2013. 14

Six broad categories of farm policy interventions

Deficiency payments

15

$1.40

$1.50

$1.60

$1.70

$1.80

$1.90

$2.00

$2.10

$2.20

9 9.2 9.4 9.6 9.8 10 10.2 10.4 10.6 10.8 11

Pri

ce

of

Co

rn (

$ p

er

Bu

sh

el)

Quantity of Corn (Billion Bushels)

Target Price

Consumer Price

Price DifferencePaid by theGovernment

Supply Demand

Source: Wilde, 2013. 16

Six broad categories of farm policy interventions

Source: Wilde, 2013. 17

Six broad categories of farm policy interventions

Source: Wilde, 2013. 18

Six broad categories of farm policy interventions

Source: Wilde, 2013. 19

Six broad categories of farm policy interventions

Government payments from U.S. farm programs 1996 - 2010

20

Source: Organization for Economic Cooperation and Development (OECD), Producer Support Estimates (PSE), 2012. 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 1996 - 2010

21

Source: Organization for Economic Cooperation and Development (OECD), Producer Support Estimates (PSE), 2012. 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 Estimate1996 - 2010

22

Source: Organization for Economic Cooperation and Development (OECD), Producer Support Estimates (PSE), 2012. 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-sectoral2. Six categories of agriculture policies3. Demand expansion4. 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, 2012. Data source: USDA/FNS (SNAP) and USDA/ERS (food spending).

SNAP benefits / food-at-home sales

Source: Wilde, AJAE, 2012. Data source: USDA/FNS (SNAP) and USDA/ERS (food spending).

Google Gadgets

• http://usfoodpolicy.blogspot.com/search/label/Food%20Stamp%20Program

• http://www.tinyurl.com/snap-vis/

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)

Energy

Energy,MyPyramidEnergy,

Nutrients

All

0

1

2

3

4

5

6

7

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00

Dis

tanc

e Fu

nctio

n

Cost in 2001 dollars

Variable Cost Constraints

$3.89

TFP=6.7

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, 2009.

Food at home

Source: Wilde, Troy, and Rogers, American Journal of Agricultural Economics, 2009.

Food away from home

Healthy Incentives Pilot

Healthy Incentives Pilot

For more information …

Food Policy in the United States: An Introduction

(Routledge/Earthscan, March 2013)

www.usfoodpolicy.com

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?