Farmers and Philanthropists – Proposed tax incentives to stimulate food donations

The American Farm Bureau Federation (AFBF) is working to implement a tax code that would allow farmers to receive enhanced tax breaks for charitable donations.

The Good Samaritan Hunger Relief Tax Incentive Extension Act of 2009 was reintroduced by U.S. Sen. Dick Lugar, R-Ind., June 22 to promote charitable food contributions by American farmers and ranchers. The current bill is set to expire in December.

"Despite the wealth of our country, affordable food prices and ongoing government food assistance programs, some people still have difficulty purchasing food for a proper diet," said AFBF President Bob Stallman in a letter to Congress.

America’s recession is further encouraging the bill’s passage, as the nation’s food banks report a 30-percent increase in need.

Only farmers and ranchers who use the accrual method of accounting may benefit from incentives for charitable donations of food. Bill supporters believe that an amended tax system with increased deductions could incite farmers to offer more of their surplus product to Americans in need. According to the California Farm Bureau Federation, the bill proposal increases the valuation to full market value of the donation and makes this provision a permanent part of the Internal Revenue Code.

"It has been my experience that farmers generally make the donation of food out of their desire to support their communities and the less fortunate, and any enhanced deduction was not the primary motivation of such a contribution," said Jim Bates, Fowler Packing Co. chief of financial operations and committee chair of Community Food Bank in Fresno, California. "The legislation does make it easier for farmers to take such an enhanced deduction and will result in increased donations of food should the bill pass."

Stallman concurs with Bates’ sentiment and notes the established benevolence of America’s farming community but believes more opportunity exists, “Many more would donate if they were able to bear the costs of harvesting, processing and transportation.”

The bill currently resides with the Committee on Finance.

Farm Share, a nonprofit organization based in Florida, recovers food that has been rejected in the retail sector because of minor imperfections and delivers excess food to social-service agencies throughout the eastern U.S. The organization asserts that its efforts “saves the farmers the added expense of disposal fees and related labor costs. In addition, field productivity is increased, sales are potentially increased as a result of product exposure, and food is donated and distributed to needy people without interfering with normal marketing channels.”

Feeding America, a nationwide network of member food banks, is America’s leading domestic hunger-relief charity. The organization provides tax breaks to corporate partners and details how entities can become involved. AFBF is an industry advocate of this aid organization.

To learn more and to voice your opinion about the bill, visit http://www.opencongress.org/bill/111-s1313/actions_votes.

Would farmers respond to further tax breaks or is more motivation necessary? Should Congress consider similar legislation for other industry groups such as meatpacking companies and food processors and distributors? Should the federal government provide additional support to organizations such as Farm Share and Feeding America?

Food Inc. – Stirring the Pot

“You’ll never look at dinner the same way again” is “Food Inc.’s” tagline, a documentary with strong thoughts about corporate farming and the mechanics of the U.S. food system.

Director Robert Kenner created an aggressive film to offer Americans a detailed peek into food production from farm to plate. “Food Inc.” tackles several controversial issues related to our society’s food industry and unsubtly encourages vegetarianism and large-scale commercial organic production.

The documentary faults a food system dedicated to efficiency by highlighting divisive topics.

“Corn has conquered our world,” the film declares, citing that 90 percent of grocery-store goods contain corn or soybean ingredients, or both. The film contends that subsidizing such commodity crops is making the U.S. overweight. Consumers pay less for foods created from these food bases, which are higher in fat and calories, than they do for healthier options that are more costly to produce, preserve and store for farmers and companies.

“Food Inc.” also targets Monsanto, an agriculture company that sells seeds and other agricultural products, as monopolizing the seed industry. The company has patented multiple seed varieties that are staples within the industry. Monsanto is portrayed as an evil bully forcing farmers to purchase its seed to remain in business. The company is accused of wrongfully suing those that save and replant its year-to-year contracted seed instead of buying a new supply as legally obligated.

Of course Kenner showcases graphic scenes of animals in slaughterhouses and images of animals that are seemingly suffering on farms to lecture on the animal-cruelty angle.

Reactions have been mixed. Film critic Elizabeth Oppriecht wrote, “Personally? I left ‘Food, Inc.’, went straight to lunch and had a big ole’ fried-chicken salad. Much more reliable research should be and needs to be done to support or refute many of the insinuations made by the film. There are many obvious holes in the information presented.”

Advocates of the film include restaurant chain Chipotle, which is advertising the film throughout its nationwide locations, as well as cooking gurus Martha Stewart and Alice Walters and other celebrities.

Monsanto counteracted the “one-sided, biased” film with a Web site dedicated to presenting facts about misinformation presented by movie producers at (http://www.monsanto.com/foodinc/), where consumers can also e-mail the company with their questions. The company refutes an allegation that it declined to be interviewed and says that it actually invited the film crew to a trade show of which they chose not to attend.

“‘Food Inc.’ is counter-productive to the serious dialogue surrounding the critical topic of our nation’s food supply,” states the company’s Web site.

The documentary ends with a call-to-action for consumers, inciting them to practice animal-rights and environmentally conscious food purchasing with the motive, “You can change the world with every bite.”

Agriculture provides millions of industry-related jobs to Americans and is responsible for feeding not only our nation, but foreign countries as well. Corporate farming is designed to produce a low-cost, convenient and abundant food supply in a way that organic farming cannot compete with.

Will “Food Inc.” jeopardize the success of meatpacking companies and commodity crops? Will the U.S. witness an influx of organic spending at the supermarket? Will the federal government attempt to modify food-production laws?

Obama Nationalizes Organic Interest

President Obama expressed interest in the organic farming industry May 5 when he secured $50 million in United States Department of Agriculture (USDA) funds for organic food production.

Funding is available to farmers in all 50 states as administered by USDA’s Environmental Quality Incentives Program. To qualify, a producer must be in the process of transitioning to organic production or be certified with the National Organic Program (NOP), an organization that develops, implements, and administers national production, handling, and labeling standards for organic agricultural products.

Farmers must commit to furthering organic practices in conservation comprising crop rotation, cover crops, nutrient management, pest management, prescribed grazing and/or forage-harvest management to be eligible for funding. Financial allotment is $20,000 per producer. The application process ends May 29.

There is no doubt that organic farming is a huge growth industry, not only as a sector of agriculture, but also as a stand-alone business. The Obama’s have personally advocated organics by planting an organic garden on the White House’s South Lawn.

Multiple groups exist that champion the development and expansion of organic farming methods. The Organic Trade Association (OTA), a membership-based business association for the organic industry in North America, is one such group.

“OTA believes that this funding will further encourage farmers to use such practices and help increase the U.S. production of organic food to meet growing consumer demand,” said Christine Bushway, OTA executive director.

Other industry groups include the Organic Consumer’s Association, The New Farm, Acres USA, and the Northeast Organic Farming Association.

As proof of the farming segment’s increased growth, the USDA intends to create a division within the agency that is solely dedicated to organic agriculture.

Industry Stats (OTA)
• Organics have grown at a rate of nearly 20 percent per year for the past seven years
• Organic food sales grew in 2008 by 15.8 percent to reach $22.9 billion, accounting for 3.5 percent of all food-product sales in the U.S.
• Mass-market grocery stores represent the largest single distribution channel of organic products

Proponents of organic agriculture highlight that organic food products are healthier and less costly to both producers and the environment than food produced by conventional farming methods.

Organic opponents assert that organic products are more costly for food distributors and retailers and ultimately, restaurateurs and consumers. Some argue that organic farming is jeopardizing traditional agricultural in regards to agribusiness success and independent farmers utilizing technology.

Does organic farming warrant more or less federal money? Does it pose a threat to commercial farmers? What are the benefits and disadvantages of organic-agricultural methods?

May is National Beef Month

The National Cattlemen’s Beef Association (NCBA) celebrates beef all month long as beef farmers nationwide are gearing up for grilling season and an increased demand from consumers.

As backyard gourmets fire up their grills, the summer season witnesses a surge in retail beef sales. It’s prime time for outdoor cooking, especially with the observance of three major holidays – Memorial Day, Independence Day and Labor Day.

Seventy percent of grill owners barbecue on Fourth of July. Memorial Day is the second most-popular grilling day at 62 percent, while Labor Day is third at 55 percent (NCBA).

With the economy in recession, beef prices have been significantly reduced, with some cuts experiencing a 3-to-12 percent cost decrease, according to the Beef Checkoff, a producer-funded marketing and research program designed to increase domestic and international demand for beef.

With beef costs on the decline, coupled with the emerging grill season, beef producers and industry partners are ardently promoting their products with aggressive advertising, trade-show appearances, grocer promotions and partnerships.

BeefUSA is a Web site dedicated to furthering the success of the beef industry with links to health and farming information for consumers, producers, retailers, restaurateurs and industry partners.

Industry Beef Bites (Source: NCBA unless otherwise noted)

• Christopher Columbus brought cattle to America during his second visit in 1943.
• The U.S. beef industry is worth an estimated $175 billion with cattlemen conducting business in all 50 states and operating 800,000 individual farms and ranches.
• A smaller cowherd and fewer cattle in feedlots have provided generally smaller beef supplies in 2009 (Chris Hurt, Purdue Extension agricultural economist).
• 2009 retail beef prices have averaged $4.33 per pound compared to 2008’s $4.16 per pound price but are still greater than foodservice beef sales (Hurt).
• Fifty percent of beef sales come from foodservice (Hurt).
  

Health-conscious consumers tend to stray away from beef and opt for chicken and seafood fare instead. Many Americans link beef with cardiovascular health issues, but eating beef in moderation is healthy. The NCBA works to promote the health benefits of beef at BeefNutrition.org. The USDA has classified 29 cuts of beef as “lean,” including round, sirloin and flank, though the most popular cut of beef consumed in the U.S. is ground beef.

Nutrition Beef Bites (Source: NCBA)

• A serving qualifies as "lean" if it has less than 10 grams of total fat, 4.5 grams or less of saturated fat and less than 95 milligrams of cholesterol per 3.5-ounce serving.
• A 3-ounce serving of lean beef provides 51 percent of the daily value for protein total.
• A 3-ounce serving of lean beef contributes less than 10 percent of daily calories to a 2,000-calorie diet.
• Beef provides 10 essential nutrients, including iron, phosphorous and selenium and is the No. 1 food source for including zinc, protein and vitamin B.
• Beef is a source of creatine, an acid that helps in supplying energy to the nerve cells and muscle.

As temperatures rise, have you thought about what you’ll be grilling this season? For recipe ideas, visit BeefItsWhatsforDinner.com.

How does beef stack up compared to other protein options in terms of taste, cost and availability? Do you think health facts about beef contribute to beef sales? What can the beef industry and beef-industry partners do to increase sales?

Farmers, food banks create partnership

In this trying economy, Americans are facing more than the prospect of losing their jobs. They’re being hit hard by high food prices and other difficulties, which is leading them to seek out other resources such as food banks for assistance.

Sadly, supply is not keeping up with this surge. Because of the current recession and higher food costs, food banks have seen a steady decline in donated packaged foods from manufacturers and grocery stores, which are historically their biggest donors.

Due to an increased need, food banks also require support from additional vendors. Ross Fraser, a spokesman for Feeding America, formerly America’s Second Harvest, reported a 30 to 40 percent rise in demand from a year ago. Feeding America’s is the nation's leading domestic hunger-relief charity. Its network of more than 200 distribution centers serves all 50 states, the District of Columbia and Puerto Rico.

To tackle the rising demand, many food banks and nonprofits are trying to partner with farmers, fishermen and schools while continuing partnerships with their usual allies.

Ohio food banks are benefiting from a first-time partnership between the Ohio Department of Natural Resources and Farmers and Hunters Feeding the Hungry (FHFH).

FHFH is a non-profit organization whose mission is to fight human hunger and deer overpopulation by contributing deer meat to church pantries, the Salvation Army, community food banks, emergency assistance programs and children's homes.

The Mid-Ohio Foodbank, which serves agencies in 20 counties, received a truckload of 800 pounds of animal meat from the FHFH earlier this month, according to a Columbus Dispatch article.

“It’ll make a substantial difference,” said Evelyn Behm, Mid-Ohio Foodbank’s vice president of strategic initiatives. “Our pantries are always in need of protein.”

In other parts of the country, fishermen in Southern California have donated boats, bait and deck hands for a deep-sea fishing excursion, which helped supply FOOD Share, Ventura County’s food bank.

In Vermont, the Foodbank plans to close on the purchase of a 20-acre farm by May, according to Judy Stermer, the food bank’s spokeswoman. The purchase will do more than add food to the needy. It will prevent commercial development, preserve farmland and restore the farm as a working farm to provide a center for agricultural education efforts and community activity. According to an Associated Press article written earlier this year, Foodbank officials plan to farm the land for root crops, renovate the aging barn into a four-season facility that can serve as a community meeting place, a winter farmer's market and an educational exhibit that focuses on the link between agriculture and hunger.

"Our intent is to raise 150,000 pounds of produce on the farm (annually) and make it available -- first and foremost -- locally in the Mad River Valley and Washington County and then to other food shelves and pantries around the state," said Doug O'Brien, CEO of the Barre Town-based food bank. “The short-term gain is significant, and the long-term gain is we'll continue to have the fresh produce and the educational opportunities to better understand the issue of hunger."

Fortunately, along with these new partnerships, there are still many programs and corporations, including grocers and food manufacturers, who have stepped in to help. Their contributions are usually in the form of money and transportation services. Last month in an Associated Press article, Wal-Mart Stores, Inc. stated it will donate more meat and dairy products plus $2.5 million, while Kraft Foods, Inc. will fund a $4.5 million mobile pantry program.

Partnerships across the country are helping in large and small ways and every bit helps. What else can be done to help the hungry during the recession? Please comment below.