Tag Archives: organic

Tobacco: Top User of Agriculture Guest Worker (H-2A) Visa Program

With the run up to the 2016 presidential election, we have seen a growing debate on the need for border security versus the shortage of agriculture workers. Tales of apples rotting on trees and produce left in the field are offered as evidence of jobs Americans won’t do. Yet, according to the U.S. Department of Labor’s (DOL) Office of Foreign Labor Certification program, we have a record number of guest worker visa holders. In agriculture alone, the number of H-2A visa holders has risen nearly 35% in the past decade.

Visa Certifications

Considering the increase of H-2A visa holders, how is it those who grow our food are struggling to bring in their crops? Where are all the workers? Well, according to DOL reports, a majority are harvesting tobacco, working in landscape nurseries, and operating equipment. Annual reports show the tobacco industry is consistently the largest single sector employer of agriculture guest worker visa holders. In fact, a tobacco trade organization, the North Carolina Growers Association (NCGA), touts itself as the nation’s largest user of the H-2A agricultural “guest worker” program. And, though the Center for Disease Control (CDC) reports a steady decline in U.S. smokers, the industry is experiencing a growth in acres planted and yields.Visa Top 10

The resurgence comes after an initial dramatic decline in tobacco farming following the implementation of the Fair and Equitable Tobacco Reform Act of 2004 (FETRA). That legislation ended nearly 70 years of farm subsidies and marketing quotas. Then, beginning with the following year (2005), the feds stepped in with the Tobacco Transition Payment Program (TTPP). A program that paid nearly $9.6 billion to farmers for the lost value of their marketing quotas over a ten-year period. Also, with the low costs guest workers and the benefit of federal export assistance, the industry has gained a world of new consumers through exporting. For those health conscious consumers, tobacco now qualifies for certification under the USDA’s National Organic Program (NOP).

As well, according to a recent report by the Federal Trade Commission (FTC), in 2012, tobacco companies spent $9.6 billion marketing cigarettes and smokeless tobacco in the United States alone. An amount of about $26 million each day, or more than $1 million an hour. Not to mention federal funds at work to assist in identifying medicinal uses for tobacco.

It may appear the relationship between tobacco farming and the government makes no sense, but it actually makes an awful lot of cents. In 2014 alone, federal revenue from tobacco tax amounted to $15.56 billion dollars. Projections through 2020 show an anticipated $157.12 billion into government coffers (no pun intended). American tobacco farming is a windfall tax source for the federal government.

In summary, tens of thousands of agriculture guest workers are designated to work in tobacco while food products go unharvested. The government spends billions to burn food for fuel in its failed ethanol experiment. We have an unprecedented amount of illegal immigration due to a broken system. It goes to show, even a practical program, as is the H-2A visa, government involvement inevitably distorts the original intent.

Organics: Another Fine Government Mess

The Organic Foods Production Act (OFPA), as part of the 1990 Farm Bill, established the National Organic Program (NOP). The program, as administered by the United States Department of Agriculture (USDA), oversees uniform standards governing the marketing of organically produced products. The NOP’s mission is to assure consumers of consistent organic standards of production and to facilitate the interstate commerce of organically produced food.

At the time of the NOP’s inception, the organic market for farm products had an estimated annual value of $1 billion.  By 2012, U.S. certified organic sales were at $28.4 billion and according to the USDA’s Economic Research Service (ERS), the sales for 2014 are estimated at $35 billion. It is clear that organic sales are showing significant growth, but at what costs?

The current Chipotle E. coli outbreak offers an opportunity for shoppers to understand the true nature of the USDA’s organic certification program. Numerous studies and public opinion polls find consumers overwhelmingly believe the higher priced, organically certified food is a healthier, safer choice.  However, experts, consumer groups and scientific research does not support that view.

In one example, a 14-page letter dated October 8, 2015, by the Consumer Reports National Research Center details many of the failings of the NOP. The letter criticizes the National Organic Standards Board (NOSB) for approval of synthetic and non-organic nutrient additives and synthetic pesticide material, even in baby formulas. The letter states, “We support the proposal to remove nonylphenol ethoxylates (alkylphenol ethoxylates) or NPEs/APEs from the list of “inerts” allowed in organic production because of their toxic and endocrine-disrupting effects.”

The Consumer Reports letter demonstrates the discrepancy between what the NOP entails and what the public believes the program offers. The NOP outlines the rules and processes to create uniformity for organic labeling. Although there are restrictions and prohibitions of a variety of chemical applications, the program allows for many waivers and exemptions. Nowhere in the program does it suggest certification assures a safer or more nutritious food choice. In fact, Dr. Stuart Smyth, a food safety expert and agriculture biotechnology researcher calls the National Organic Standards, “an illusion of food safety.” As Smyth explains, “These organic standards pertain to seed, fertilizer, and chemicals that are allowed to be used to produce a crop that will be certifiably organic when it is ready to be harvested. These production standards have absolutely nothing to do with increasing food safety.”

Still, the organic industry, as a marketing ploy, perpetuates the myth to consumers that organic certification implies safer foods. Moreover, with the ever-growing market share, one would assume conscientious shoppers increasingly prefer organic foods. Do they or is that another false assumption? What has changed in the past 15 years to drive the annual market value of organic food products from $1 billion to $35 billion if not consumer preference? How about the huge increase in consumer prices for the organic products, the increased volume of the labeled products, and the massive increase in program funding? To explain, let’s consider just some of the taxpayer dollars pumped into the NOP by means of the most recent farm bill, the 2014 Farm Act.

  • $20,000,000 for each fiscal year 2014 through 2018 for program operation
  • $5,000,000 to the Secretary of Agriculture for data collection and distribution to National Agriculture Statistics Service (NASS) and Agricultural Marketing Service (AMS).
  • $15,000,000 for each fiscal year 2014 through 2018 for modernization and technology upgrade
  • $5,000,000 upgrade collaboration with Commodity Credit Corporation (CCC).
  • $11,500,000 for each fiscal year 2014 through 2018 for cost-share programs with CCC.
  • $7,000,000 for each of the fiscal years 2014 through 2018 for natural products research.

In the above designated funding commitments alone, the federal government will spend $277.5 million through the term of the current agriculture authorization bill. An astonishing amount, considering the original 1990 Organic Foods Production Act stipulated the program costs will be covered entirely by fees gleaned from the program’s participants.

The growth of the organic market follows the growth in federal dollars pumped into the program. Food safety is not improved. Consumers have no assurance they are purchasing a more nutritious product. Third party certifiers charge upwards of $3,000 to farmers for label use creating an incentive for fraud. Foreign products are certified outside of the U.S. by foreign agents with no USDA oversite. Contemporary farmers are at a competitive disadvantage as a result of the marketing, promotion, and price difference of organically labeled product. Organic foods can potentially be less safe than their uncertified counterpart. And, in the end, the taxpayers are again burdened with an unproductive, fraud-laden, market manipulating program that offers no demonstrative benefit.

NE Expanding Waste Management Program

In places like Nebraska, a city’s trash could become one group’s treasure. A new project from Nebraska Organic Waste Energy (NOW) and Uribe Refuse Services Inc. is looking to turn a portion of the city’s organic waste into energy, compost and fertilizer.

The project will take 1,450 of the 52,000 tons of organic waste produced by Lincoln residents and convert it into electricity, as well as compost and liquid fertilizer for lawn care, gardens and golf courses, reports The Journal Star.

Uribe Refuse predicts that the project will save them $39,000 in landfill gate fees and $20,000 in electricity bills per year. The overall return from the 20-year project is estimated to total $1.2 million.

Currently, Nebraska is a net-exporter of energy. But the state’s energy expenditures have been steadily rising over the last decade, from $4.4 billion in 2000 to $9.1 billion in 2008. The total cost for the Lincoln project is unknown, and the verdict on the efficiency of waste-to-energy programs is still out. If the profits outweigh the costs, the program could be a good way to generate clean energy and eliminate waste.

The project intends to target commercial customers, including restaurants, schools and corporations, and will offer sign-up incentives to customers who commit to becoming “zero waste” businesses.

Another aspect of the project excites city planners: the corporate involvement. As part of the state’s energy plan, Nebraska is seeking to address more energy issues through public-private partnerships. Gene Hanlon, Lincoln’s City Recycling Coordinator, says he’s pleased to see private companies taking initiative.

“Local governments can’t do it alone,” says Hanlon. “We need to work in full partnership with the private sector to develop innovative efforts to conserve resources and reduce waste sent to the landfill.”

To get the project up and running, NOW Energy has applied for a $735,000 grant from the Nebraska Environmental Trust to cover its start-up costs. Uribe Refuse and NOW intend to push through with a scaled-down version of the project if the grant doesn’t come through.

Megan Simons is a research associate at the National Center for Policy Analysis

Chipotle’s Assault on Farms

Chipotle has recently come into the news as the creator of a new TV series, ‘Farmed and Dangerous’. The series sets out to portray a satirical look at industrialized agriculture, but when the satire is created by a corporation set on organic foods it creates more harm than good. Declaring war on “big farms” is a misguided agenda that can only serve to hurt small farms more than hurt big farms. According to a previous blog post that explored the USDA Census of Agriculture, a survey stated that 75% of farms in the U.S. are still operating under 50k a year.

Farm Size

‘Farmed and Dangerous’ is beyond misleading in that what it attempts as satire is actually misguided facts about industrial agriculture. The series takes the smallest portion of the industry and distorts it to relay a message. Chipotle makes attempts to bring in customers by advocating for local farming. Since the majority of farms are still small and local, it is hurting them more than helping them. The only winner in this scenario is chipotle, as the marketing plan is not about eating responsibly — but to eat at Chipotle.

While it is important to utilize sustainable agriculture and conservative techniques, it is also important to gain truth based on facts and information. In the U.S., there is a good chance that you are eating locally grown food, so keep on eating. Just remember that you are already helping out the local farmer without having to buy at Chipotle.