Title: Specialty Crop Policy Options and Consequences: Metropolitan Growth and the Specialty Crops Industri
1Specialty Crop Policy Options and Consequences
Metropolitan Growth and the Specialty Crops
Industries in the U.S.
The Cornell Team Jerry White Nelson Bills Brent
Gloy Wen-fei Uva Mei-Luan Cheng Department of
Applied Economics and Management
2Problem Identification-alternative views of
farming in Metro areas
- Farming on the Edge, American Farmland Trust
(ca. 1990). Haphazard urban growth is
threatening an important part of American
agriculture - Farming in the Citys Shadow, Heimlich and
Brooks, ERS, (1989) - Emerging trends in metro agriculture present
growers of specialty crops with new alternatives
and opportunities. This is extremely important
for the Northeast (with 6 of land area, 22 of
population)
3Our Definition of Specialty Crops
- Fruits fruits, tree nuts, and berries
- Vegetables vegetables, melons, potatoes and
sweet potatoes - Nursery and Greenhouse Crops bedding plants,
bulbs, cut flowers, flower seeds, foliage plants,
mushrooms, nursery potted plants, nursery stock,
live Christmas trees, tobacco transplants, sod,
etc.
4Definition of Metropolitan Statistical Areas
(MSA)
- MSAs are now defined as counties with a densely
settled urbanized area containing a population of
50,000 or more, along with outlaying counties
economically and socially connected to it - Outlaying counties are included if 25 or more of
its workers commute to the urban core - The Office of Management and Budget (OMB) makes
the MSA designations and periodically revises
them - In 2005, OMB also began designating micropolitan
areasnonmetro counties with an urbanized area of
at least 10,000 persons or more
52002 U.S Agricultural Production in Metropolitan
Counties
2002 Census of Agriculture
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9Sales of Specialty Crops in the Northeast U.S. by
Metro Status, 2002
2002 Census of Agriculture
10Average Farm Size and Average Sales by Metro
Status, 2002
11Advantages of Metro areas for production of
specialty crops
- Close to the consumer gt opportunities for direct
marketing. In these markets, producers are
favored by consumers environmental awareness,
concern for food quality and safety, distrust of
factory agriculture, and interest in farmland
protection - Opportunities to provide more freshness and
quality in produce - Certain green industry firms benefit from being
near to suburban development (e.g. bedding plant
producers, sod producers, nurseries)
12Advantages of Metro areas for production of
specialty crops
- Rising metro land values increase producers
equitygtopportunities to invest in high value
crops, i.e. specialty crops - Producers can generate adequate income with
small acreages - Metro areas provide better opportunities for
off-farm employment for spouses of producers or
for part time producers
13Policy options that are well suited to specialty
crops farms
- Farm savings accounts with a government match or
tax deferred incentives (or both) - Subsidized crop/revenue insurance (such as AGR
and AGR-Lite) - Incentive payments for traceability programs,
food safety programs, organic production, and
payments tailored to smaller family farms
14Policy options for specialty crops
- There is generally strong support for
conservation type programs that are better
tailored for Specialty Crops resource situations
15Other comments on policy options
- In general, specialty crops interests in the
Northeast ARE NOT in favor of traditional program
crop policy instruments such as price supports,
deficiency payments, counter-cyclical payments,
etc. - There were mixed results regarding disaster
assistance. Specialty Crops interests see the
need for a continuation of disaster assistance
(according to the results of our survey). - There is, however, a strong minority who view
disaster assistance as being ad hoc, making it
difficult for producers to make rational business
planning decisions about risk management.
16Final Thought on Policy Options
- Our analysis suggests that if programs are
primarily directed toward traditional program
crops, and hence mostly toward non-metro areas,
farm programs DO NOT have an impact on an
important component of American agriculture!
17Contact Information
- Prof. Gerald B. White
- Tel 607-255-2299
- E-mail gbw2_at_cornell.edu
- Web access to bulletins
- http//www.aem.cornell.edu/research/sp.htm
(Staff Papers 06-01 and 06-03) - http//www.aem.cornell.edu/research/
- researchpdf/rb0603.pdf
- (Research Bulletin 06-03)