Ag Policy, Lecture 18

1. Ag Policy, Lecture 18 • Environmental Policy (Knutson Chapter 9) • Food Safety & Security (Knutson Chapter 10) • Food Assistance & Nutrition (Knutson Chapter 11) • Agricultural Policy Stakeholders (Knutson Chapter 12)

2. Environmental Policy • What economic principle creates the policy motivation concerning environmental regulation?

3. Environmental PolicyGovernment Contributors • Development and Implementation • Congress • Policy Development • Environmental Protection Agency (1972) • Implementation • Writes Regulations & Rules • State EPA’s • Enforcement • Handles Permits • Cities • Zoning • Courts also play a role in dispute settlement

4. Environmental Policy Concepts • Pollution • Point Source vs. Non-Point Source • Willingness to Pay for a Environment

5. Environmental Policy Issues • Water Quality • Air Quality • Global Warming • Policy Options • Common Law • Proscribing vs. Prescribing • Practices vs. Performance • Cost Sharing (EQIP, CSP) • Cross-Compliance • Taxation • Right-to-farm laws

6. Who is responsible for a food safety? • Buyer beware • Government • Food Supply Chain

7. Who is responsible for a food safety? • FDA • Processed • Food service • USDA • A number of other agencies participate • Some have recommended a single food agency (would agriculture support this idea?)

8. Protecting Food Safety • Who’s job is it? • USDA – inspects red meats, poultry, and processed eggs (1/4 of food) domestic • 8,000 inspectors • FDA – inspects seafood, cooked, canned and baked products, whole eggs, produce and animal feed (3/4 of food) both domestic and imported. Also inspects animal feed and its label. • 1,550 inspectors

9. Protecting Food Safety • USDA meat inspectors • Inspector on site during operating hours at packing plants • 6,500 slaughter houses in the USA • Monitor meat for signs of fecal matter and other problems • USDA can not force plant closure • But it can withhold USDA inspection stamp • USDA can also remove inspectors

10. Hierarchy of Concerns • Matters of Life & Death • Consumer’s Right to Know

11. Safety Concerns/Policy Standards • Naturally occurring substances • Buyer beware • Education • Labeling • Health problems • Education • Labeling • Self-regulation • Chemical residues and additives • Self-regulation • No significant risk • Negligible risk • Reasonable certainty of no harm • Biosafety/Food-borne pathogens • Negligible risk • Reasonable certainty of no harm • Zero Tolerance • Bio-Terrorism

12. Range of Options • How far should the government (society) go in assuring food safety • What is the trade-off?

13. Pesticides and Food Additive Safety • Delaney Clause (1958 Food Additives Amendment) • Zero tolerance • Proved unworkable due to technology • Food Quality Protection Act of 1996 • Reasonable certainty of no harm as the standard for determining an acceptable level of risk

14. Animal ID and COOL • National Animal Identification System • Tracking Animals • Controlling/Containing Disease Outbreaks • Tracking ends at slaughter • Country Of Origin Labeling • Tracing food products through retail • Most products will be exempt

15. Food Assistance and Nutrition Policy • Most severe hunger problems: • India, China, Southeast Asia and much of Africa • Even affluent countries have hunger problems • Hunger: Insufficient protein and calorie intake to maintain normal growth, health, and body function. 24

16. Factors Contributing to Hunger Problems • Low Income • Income Distribution • Price of Food • Lack of Education • Poor Health • War 24

17. Perspectives on Hunger Intervention • Activist • Every human has a right to food that those who are not suffering have an obligation to supply even if it means self sacrifice • Adapter • World scarcity decisions must be made balancing short and long-term needs • Acceptor • Does not acknowledge there is a problem or need for intervention • Any intervention will likely create bigger problem

18. Reducing World Hunger • Food Self-Sufficiency • Food Price Controls • Food Aid (short term) • Food Assistance (longer term, programmatic) • Education • Health Care • Private Land Ownership • Infrastructure development • Research

19. U.S. Hunger & Nutrition Policy • U.S. total population 300 million • U.S. Hunger • 36 million labeled Food Insecure • 9.6 million experienced hunger

20. U.S. Hunger & Nutrition Policy Options • Food Assistance • Commodity Distribution • Food Stamps • Child Nutrition • Women, Infants, and Children (WIC) • Senior Nutrition • Education • Dietary Guidelines • Labeling

21. Lecture 18, Wrap up • Can you answer these? • Who contributes to environmental policy, and what is the role of each? • What is the difference between point source and non-point source pollution? • How does income affect a countries attitudes toward environmental policies? • Can you describe the primary environmental issues and policy options? • Can you describe the primary food safety concerns and policy standards? • Explain the trade-offs associated with achieving extremely high levels of food safety. • Explain how tolerance levels and technology have interacted over the years to change the way we approach pesticide residue and other contamination levels in food products. • What is the difference between the tracking of Animal ID and the traceability concept involved with COOL? • Can you discuss the factors that contribute to the hunger problem? • Can you discuss the options to help reduce world hunger? • What are the positives and negatives of Food Aid? • Can you discuss the primary components of U.S. Hunger & Nutrition policy? • Can you analyze the position of the 5 key stakeholder groups relative to various agricultural and food policies?