Farmers Face Severe Penalties When Trying to Convert Commodity-Designated Farm Land to Organic Fruit or Vegetable Production

If you've stood in line at a farmers' market recently, you know that the local food movement is thriving, to the point that small farmers are having a tough time keeping up with the demand.

March 1, 2008 | Source: New York Times | by Jack Hedin

If you’ve stood in line at a farmers’ market recently, you know that the local food movement is thriving, to the point that small farmers are having a tough time keeping up with the demand.

But consumers who would like to be able to buy local fruits and vegetables not just at farmers’ markets, but also in the produce aisle of their supermarket, will be dismayed to learn that the federal government works deliberately and forcefully to prevent the local food movement from expanding. And the barriers that the United States Department of Agriculture has put in place will be extended when the farm bill that House and Senate negotiators are working on now goes into effect.

As a small organic vegetable producer in southern Minnesota, I know this because my efforts to expand production to meet regional demand have been severely hampered by the Agriculture Department’s commodity farm program. As I’ve looked into the politics behind those restrictions, I’ve come to understand that this is precisely the outcome that the program’s backers in California and Florida have in mind: they want to snuff out the local competition before it even gets started.

Last year, knowing that my own 100 acres wouldn’t be enough to meet demand, I rented 25 acres on two nearby corn farms. I plowed under the alfalfa hay that was established there, and planted watermelons, tomatoes and vegetables for natural-food stores and a community-supported agriculture program.

All went well until early July. That’s when the two landowners discovered that there was a problem with the local office of the Farm Service Administration, the Agriculture Department branch that runs the commodity farm program, and it was going to be expensive to fix.

The commodity farm program effectively forbids farmers who usually grow corn or the other four federally subsidized commodity crops (soybeans, rice, wheat and cotton) from trying fruit and vegetables. Because my watermelons and tomatoes had been planted on “corn base” acres, the Farm Service said, my landlords were out of compliance with the commodity program.

I’ve discovered that typically, a farmer who grows the forbidden fruits and vegetables on corn acreage not only has to give up his subsidy for the year on that acreage, he is also penalized the market value of the illicit crop, and runs the risk that those acres will be permanently ineligible for any subsidies in the future. (The penalties apply only to fruits and vegetables – if the farmer decides to grow another commodity crop, or even nothing at all, there’s no problem.)

In my case, that meant I paid my landlords $8,771 – for one season alone! And this was in a year when the high price of grain meant that only one of the government’s three crop-support programs was in effect; the total bill might be much worse in the future.

In addition, the bureaucratic entanglements that these two farmers faced at the Farm Service office were substantial. The federal farm program is making it next to impossible for farmers to rent land to me to grow fresh organic vegetables.

Why? Because national fruit and vegetable growers based in California, Florida and Texas fear competition from regional producers like myself. Through their control of Congressional delegations from those states, they have been able to virtually monopolize the country’s fresh produce markets.