Issue Papers

Food Safety

Background: The E. coli O157:H7 outbreak traced to fresh spinach in September 2006 caused illness in 199 people in 26 states. The outbreak caused the death of three people, including a two year old child.

In response, major food retailers notified the lettuce and leafy greens industry that if they did not develop their own set of practices to minimize food safety risks, the food retailers would take unilateral action to develop their own mandatory practices.

As a result, Western Growers Association, United Fresh and the leafy greens industry developed standards to be used as best practices to reduce risk in the production and processing of leafy greens. Western Growers formed a state marketing agreement that requires mandatory food safety inspection for participants, and verification of good agricultural practices, harvesting, and processing methods.

The United Fresh Produce Association and the Produce Marketing Association embraced a set of principles calling for federal food safety standards that are mandatory, risk-based and allow for commodity-specific regulation.

The spinach outbreak coupled with widespread contamination of pet foods from China, the largest beef recall in history, and a Salmonella outbreak in peanut butter rocked consumer confidence and put the FDA under intense scrutiny from Congress, the media and consumer "watch dog" groups.

In 2007 a number of food safety bills were introduced in Congress. Senator Richard Durbin (D-IL) and Representative Rosa DeLauro (D-CT) introduced legislation to create a single food safety agency and Agriculture Chairman Tom Harkin (D-IA) introduced a produce food safety bill mandating food safety plans and implementation of good agricultural practices. Senator Chuck Schumer (D-NY) and Rep. Diana DeGette (D-CO) introduced legislation calling for greater traceability.

Update: This summer's Salmonella Saint Paul outbreak sickened over 1400 people in 43 States, the District of Columbia, and Canada. The inability of FDA to correctly determine the source of the Salmonella has further eroded consumer and Congressional confidence in our food safety system.

FDA's erroneous warning about tomatoes devastated the industry. Early estimates put the losses at $100 million for Florida alone, with many growers going out of business. In response, Representative Tim Mahoney (D-FL) introduced legislation to provide compensation to growers.

Though the Salmonella Saint Paul Outbreak has drawn further attention to the issue and scrutiny of FDA, many Members of the House and Senate were already working on various pieces of legislation before the outbreak occurred.

House Energy and Commerce Chairman John Dingell (D-MI) is developing wide-reaching legislation which could be introduced as early as September. Dingell's Oversight and Investigations Subcommittee has held seven hearings on food safety issues alone since January of 2007.

In April, Representatives Jim Costa (D-CA) and Adam Putnam (R-FL) introduced the "Safe Food Enforcement, Assessment, Standards and Targeting Act (SAFE FEAST Act)." Costa and Putnam both come from agricultural districts that are largely comprised of specialty crop producers. Both consulted with their constituents and representatives of the produce industry in developing their legislation.

On July 31, Senators Richard Durbin (D-IL) , Richard Burr (R-NC), Judd Gregg (R-NH), Lamar Alexander (R-TN) and Agriculture Chairman Tom Harkin (D-IA) introduced the "FDA Food Safety Modernization Act." The legislation calls for new science-based standards, increased inspections, trace-back and mandatory recall authority for FDA.

Chairman Edward Kennedy (D-MA) had planned to introduce food safety legislation in his Senate Health, Labor and Pensions Committee, however that was put on hold when he was diagnosed with a malignant brain tumor in May. Senator Kennedy is reportedly supporting Senator Durbin's legislation.

USApple participates in a coalition of producer and agribusiness groups, organized by the American Farm Bureau Federation (AFBF), working to find industry consensus on food safety issues and advocate with Congressional leaders. The coalition strongly supports a risk-based system.

Food safety legislation is likely to be top on the list for the next Congress and the new President regardless of the outcome of this fall's elections. USApple will continue working with key Members of Congress, the new Administration and our allies in the produce sector including the United Fresh Produce Association, AFBF Coalition, and the Northwest Horticultural Council to argue for a risk-based commodity specific approach to the issue.

The Association of Food and Drug Officials (AFDO), representing state governments, continues to develop its model food code for fresh produce. It is expected to include commodity-specific good agricultural practices when completed. The model food code is being developed as a template for state and local food safety agencies to adopt if desired.

Position: USApple believes food safety practices should be risk-based , commodity-specific and reflect sound science to help ensure consumers are provided healthy and nutritious apples and other produce items.

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Farm Bill Reauthorization & Implementation

Update: After months of negotiations and two Presidential vetoes, the 2008 Farm Bill finally became law on June 18, 2008. The legislation is historic in that it marks the first time that specialty crops have been fully recognized in a Farm Bill. Specialty crop growers account for nearly half of all cash crop receipts in America but have been underrepresented in previous Farm Bills. The 2008 Farm Bill includes strong specialty crop provisions reflecting the priorities of the Specialty Crop Farm Bill Alliance (SCFBA), in which USApple is an active member.

In addition to reauthorizing the Market Access Program (MAP) and conservation programs including the Environmental Quality Incentives Program (EQIP), the legislation provides new funding for specialty crop research and significantly expands the Specialty Crop Block Grant Program and the Fresh Fruit and Vegetable Program.

The Farm Bill includes language on mandatory Country of Origin Labeling (COOL) which will take effect on October 1. USDA published an interim final rule on COOL in the August 1 Federal Register. The rule updates previous burdensome regulations and includes requirements for consumer notification and product marking, and recordkeeping responsibilities for both retailers and suppliers.

The Farm Bill legislation also creates a new permanent disaster program which includes mandatory funding for the Tree Assistance Program (TAP). This could prove especially important to apple growers this year as weather-related damages have been reported in all of the major growing regions.

USApple and other members of the SCFBA formed an Implementation Committee to ensure that the programs included in the Farm Bill are implemented correctly by USDA and accessible to the specialty crop industry, including apples. SCFBA subcommittees dealing with specific issues, including nutrition, trade, disaster assistance, and research, have also been named and members are meeting regularly with USDA and congressional offices. USApple is an active member of the Implementation Committee and the subcommittees.

Since many of the specialty crop programs are either new or significantly expanded, USDA will go through a formal rulemaking process. USApple and other members of the SCFBA will comment on these proposed rules as appropriate. We are also communicating regularly regarding funding as it becomes available. Many programs included FY08 funding which has made for a very fast turnaround. The FY09 funding cycle begins on October 1.

Farm Bill implementation is expected to be quite lengthy and is just as important as the legislative work leading up it. USApple will continue to work closely with the SCFBA to ensure U.S. apple growers have access to the funding in these historic programs that the industry worked so hard to secure.

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Agricultural Labor and Immigration Reform

Update: AgJOBS champion Senator Dianne Feinstein (D-CA) has followed through on her promise to keep agriculture labor issues before Congress and to push for a vote on meaningful legislation this year.

After spending much of last fall and early winter reaching out to her Senate colleagues in an effort to find a middle ground, Senator Feinstein notified the leadership of the Agriculture Coalition for Immigration Reform (ACIR) in early March that she was developing a stop-gap proposal.

The Emergency Agricultural Relief Act (EARA) is a temporary five-year program comprised of the basic tenants of AgJOBS including significant H-2A reforms and a means to retain valued employees. Senator Feinstein believes that taking away the option of permanent residency would bring a number of, mostly Republican, Senators on board who had been sympathetic to agriculture but were "anti-amnesty."

It is widely expected that the new Congress and Administration will take another crack at comprehensive immigration reform in the near future. Even if the EARA is passed, agriculture will continue to work toward those efforts since a permanent solution would still be needed past the five years. For many Democrats and the Hispanic Caucus, keeping agriculture at the table, working toward a permanent solution, is very important.

The USApple Board of Trustees endorsed the EARA at the March Board meeting and directed staff to tell ACIR and Senator Feinstein that the industry would have serious concerns with any effort to cap the H-2A program.

A few weeks later Senator Feinstein came back to the ACIR Executive Committee, which USApple is a member of, with a fully developed EARA proposal that did not include any caps.

USApple and other members of ACIR reached out to key allies in Congress to educate them on the EARA and seek their support. We have participated in dozens of meetings over the past five months with Senate offices and Committee staff on our own and with our ACIR partners.

Though the response has been mostly favorable, most offices are also skeptical that any legislation will be passed before the fall elections. Senator Feinstein continues to seek out appropriate legislative "vehicles" ("must pass" legislation) to which she could attach the EARA. USApple continues to keep our Congressional allies informed and to keep the issue top of mind.

While Congress has been slow to take action, the White House is pushing to finalize a number of regulatory immigration priorities.

USApple worked with ACIR and the National Council of Agricultural Employees (NCAE) in support of positive H-2A reforms. USApple submitted comments to the Department of Homeland Security (DHS) and the Department of Labor (DOL) regarding the Administration's proposed H-2A reforms. Though comments were due in late April, a final rule has yet to be published and it is not known when that might occur or to what extend the recommendations of USApple, NCAE and others will be incorporated.

USApple has also weighed in on a number of proposed enforcement measures including the Social Security "no match" rule and the proposal to require E-Verify for federal contracts.

The proposed rule on E-Verify was published in the June 12 Federal Register. If enacted it would require all businesses entering into contracts with the Federal government to use the E-Verify system to check the status of their employees. USApple submitted comments in opposition to the proposal, stating that enforcement without reform will result in growers going out of business and an increased dependence on imported food. The comment period on E-Verify closed on August 11; it is not yet known when a final rule is likely to be issued.

Implementation of the "no match" rule was initially delayed by a San Francisco court last fall, and the recent postponement of a status conference from August 1 until September 12 means that a hearing on the merits of the case isn't likely to occur until at least mid-October.

Position: USApple continues to make agricultural labor reform our top legislative priority. We will continue to work within the Agriculture Coalition for Immigration Reform (ACIR), the National Council of Agricultural Employers, the H-2B Coalition and with Congress to pass meaningful agricultural labor reform. USApple supports passage of agricultural labor legislation that meets the following objectives:

1) provides a stable, adequate, able and predictable supply of agricultural labor able to participate legally in the U.S. workforce; and
2) addresses the high level of H-2A wage rates, simplifies the program and provides legal reform to remove unreasonable employer sanctions.

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Appropriations

National Apple Rootstock Breeding Program
The apple industry's national rootstock breeding research program is located in Geneva, New York. This research is conducted by the U.S. Department of Agriculture's (USDA) Agricultural Research Service (ARS), which serves all apple growing regions.

The program is an existing ARS program and funded at a level of approximately $129,000 by ARS. However, this funding is barely enough to fund the lead scientist and a minimal amount of research. The program needs $400,000 in additional funding to be productive and fully functional.

Rootstocks are important to apple growers because of their prominence in determining tree size, when the trees bear fruit, disease resistance and tree architecture. There is a growing demand for hearty rootstocks that reduce the size of the apple tree, lend disease resistance and improved tree structures that are more efficient and profitable to manage. Growers presently rely on rootstocks bred in the early 20th Century and are in need of new technology to improve their competitiveness and productivity.

The additional funding would be used to upgrade the propagation capacity, hire a field technician and laboratory technician along with a post doctoral fellow and several college summer interns. Funding will be used to purchase new equipment and improve the green house propagation capacity.

USApple Position:
$400,000 Agriculture Research Service (ARS) - Geneva, New York

SENSORS AND SENSING FOR ASSESSING AND ASSURING QUALITY AND CONDITION OF SPECIALTY CROPS
The East Lansing, Michigan, ARS facility is conducting research critical to the future survival of the apple industry. Using a series of new sensing technologies, researchers at this facility are developing techniques that would allow apple packers to measure the sugar content and firmness of each apple before it is offered to consumers. Research indicates consumer purchases will increase when apples consistently meet and exceed their expectations, suggesting consumers will eat more apples once this technology is fully developed and employed by our industry. While Congress appropriated $330,028 in FY08 for this critical research, the Administration's proposed budget for FY09 recommends closure of this facility. In addition to the loss of this critical research, the closure would eliminate 40 full time positions.

USApple Position:
USApple urges Congress to maintain the current funding of $330,028 in the USDA Agricultural Research Service's FY09 budget for the Sensors And Sensing For Assessing and Assuring Quality and Condition Of Specialty Crops research at the Sugarbeet and Bean Research Unit in East Lansing, Michigan.

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Chinese Fresh Apple Imports

China produces over 50 percent of the world's apples and exports 52.5 million cartons of apples annually as compared to U.S. exports of 33 million cartons in 2006. China's capacity to produce and to market government-encouraged agricultural commodities suggests it may have the ability to displace a significant quantity of American apple production, jeopardizing the economic viability of U.S. apple growers.

Under U.S. law, apple imports must be certified to be free of damaging pests and diseases before imports are allowed into the United States. This is to prevent introduction of potentially devastating insect and plant disease threats to the U.S. apple industry. This sanitary-phytosanitary (SPS) mandate to protect public health, safety and domestic production is recognized and accepted as a standard of the World Trade Organization.

Consequently, before Chinese apples can be imported into the United States, the U.S. Department of Agriculture (USDA) must approve an SPS import protocol to ensure this standard is met. USDA's Animal and Plant Health Inspection Service (APHIS) is responsible for rigorous scientific assessment to ensure that any imported produce, including apples, is free of harmful pests and diseases.

CHINESE APPLES: PESTS AND DISEASES
In December of 2003, APHIS sent a list of over 300 pests and diseases of concern to the quarantine inspection agency of the Chinese government. The Chinese government responded in April of 2004, and in December 2004 APHIS requested additional information on 52 of the pests and diseases from its Chinese counterparts. The Chinese government submitted some information on the 52 pests to APHIS in July 2005. However, the submission was incomplete, so APHIS continues to encourage its Chinese counterparts to supply the data needed to continue the review process. Insect and plant diseases that would threaten the U.S. apple industry should not be allowed to enter the United States under any circumstances.

Congress is urged to closely monitor the broad threat posed by Chinese apple imports. As developments occur in APHIS' review process, the U.S. apple industry will continue to communicate and develop input. Coordinated action, with a science-based approach, can enable interested Members of Congress and the industry to effectively work together to address this issue.

Key policy makers at USDA are aware of the concerns of the U.S. apple industry, and are proceeding in a satisfactory and scientific manner. However, the future is far from certain. USApple will continue to stay abreast of this issue with APHIS, and looks forward to working with interested Members of Congress.

WHY U.S APPLE GROWERS ARE CONCERNED
USApple is discussing this issue now to keep Members of Congress informed. Why U.S. apple growers are concerned:

1. China is the world's leading apple producing country, growing over 50 percent of the world's apples.
2. China has the capacity and ability to supply a large amount of apples into the U.S. market at prices below the U.S. cost of production.
3. The U.S. apple industry is gravely concerned about China's potential entry into the U.S. market based on the apple industry's experience with imports of apple juice concentrate, which has significantly diminished the market for juice apples.
4. China's entry into the U.S. market could cause depressed apple prices which would force a significant number of apple growers and marketers into bankruptcy.
5. APHIS suspended imports of Chinese Ya pears in 2004, which were contaminated with Alternaria, an exotic disease causing fruit rot on pears with potential to infect apples and cherries. However, APHIS has recently allowed Ya pear imports that comply with an APHIS designed work plan.

POLITICAL CONSIDERATIONS

• APHIS could take years to proceed with its review, or the situation could abruptly accelerate for political reasons.
• The apple industry seeks to inform Members of Congress about our concern and the political uncertainty surrounding this issue.

USApple Position:
USApple plans to alert interested Members of Congress of any political or regulatory development that would threaten the viability of the U.S. apple industry.

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Food Quality Protection Act & Crop Protection

• $16.0 million for the Pesticide Data Program, administered by the Agricultural Marketing Service (AMS);
• $8.4 million for the National Agricultural Statistics Service (NASS) pesticide-usage surveys;
• $2.0 million for the Office of Pest Management Policy administered by the Agricultural Research Service (ARS);
• $11.1 million for minor-use registration of crop protection tools (IR-4) administered by Cooperative State Research, Education and Extension Service (CSREES);
• $1.4 million for Crops Affected by FQPA Implementation also administered by CSREES;
• $10.8 million for minor-use registration of crop protection tools (IR-4) administered by CSREES;
• $12.5 million for the Pest Management Alternatives Program, Regional Pest Management Centers, Crops at Risk and Risk Avoidance and Mitigation Program also administered by CSREES.

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The U.S. Apple Association

The association was formed as the International Apple Institute by the merger of two apple industry associations, one representing the U.S. apple packers and shippers since 1895 and the other representing U.S. apple growers since 1935. The association was renamed USApple in 1996.

USApple's members include the following state and regional apple associations representing 7,500 apple growers throughout America, as well as more than 300 individual firms involved in the apple business.

Arizona Apple Growers Association Arkansas State Horticultural Society California Apple Commission Colorado Apple Admin. Committee Columbia Gorge Fruit Growers Connecticut Apple Marketing Board Delaware Fruit Growers Association Idaho Apple Commission Illinois State Horticultural Society Indiana Horticultural Society Iowa Fruit & Vegetable Growers Assoc. Kentucky State Horticultural Society Maine Apple Marketing Committee Maryland Apple Promotion Board Massachusetts Fruit Growers Assoc. Michigan Apple Committee Minnesota Apple Growers Association

Missouri State Horticultural Society New Hampshire Fruit Growers Assoc. New Jersey Apple Industry Council New Mexico Apple Commission New York Apple Association North Carolina Apple Growers Assoc. Ohio Apple Marketing Program Pennsylvania Apple Marketing Board South Carolina Apple Growers Assoc. Tennessee Fruit and Vegetable Assoc. University of Tennessee Utah Apple Marketing Board Vermont Apple Marketing Board Virginia Apple Growers Association Washington Apple Commission West Virginia Horticultural Society Wisconsin Apple Growers Association

Mission
To advocate for American apple growers and the industry partners on national issues in order to promote the profitable production and marketing of apples and apple products. The association unifies a diverse industry to achieve three primary goals:

• To represent the entire industry on national issues;
• To increase demand for apples and apple products; and
• To provide information on matters pertaining to the apple industry.

• Public affairs: representing industry views to the legislative and executive branch, and operating USApple's political action committee, USApplePAC;
• Education: consumer outreach and public education, as well as crisis communications on the industry's behalf;
• Industry information: industry information collection and dissemination, and industry education; and
• National Apple Month: USApple operates the industry's only national, generic retail and foodservice promotion program

Goverence
The U.S. Apple Association's activities are overseen by a 24-member Board of Trustees whose members geographically and demographically represent the industry. Many association activities are also conducted under the oversight of permanent committees.

For information
For more information about USApple and our activities on behalf of America's apple industry, please contact us via telephone at (703) 442-8850, or visit our Web site at www.USApple.org.

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Child Nutrition Reauthorization & Implementation of Dietary Guidelines

Background: Every five years, federal nutrition programs such as the National School Lunch Program, School Breakfast Program and the Special Supplemental Nutrition Program for Women Infants and Children (WIC) must be renewed under the Child Nutrition Reauthorization Act. This process gives lawmakers the chance to review the programs and make needed adjustments and improvements. The 2004 Act made what had been the "Fruit and Vegetable Pilot Program" permanent. As a result what is now called the "Fruit and Vegetable Snack Program" greatly expand over the past five years. The 2004 reauthorization also expanded the amount of money allocated for USDA purchase of fruits and vegetables through the Section 32 program.

Congress will focus on reauthorization early next year when the Senate Agriculture Committee and the House Education and the Workforce Committee begin holding hearings and drafting legislation. In preparation for the reauthorization, USDA is holding nationwide "listening sessions" designed to gather input from major stakeholders. USApple testified at the public meeting held in Baltimore, MD on August 6th.

Schools will also be working to comply with the USDA Dietary Guidelines (DGAs), which is due to be implemented this year. Compliance will require major changes to school menus, including a substantial increase in the number of servings of fruits and vegetables offered in school meals. The Institute of Medicine (IOM), National Institutes of Health, has also been holding listening sessions to gather information and suggestions for how best to accomplish this. USApple testified at an IOM listening session in Washington, DC in July.

USApple is a member of the National Alliance for Nutrition and Activity (NANA) a coalition of nutrition, agriculture, and public health organizations working on the 2009 Child Nutrition Reauthorization. USApple attends regular NANA meetings where strategy is being developed for the upcoming reauthorization process.

As the Child Nutrition Reauthorization process continues, USApple plans to work on our own and with NANA, the United Fresh Produce Association and other allies in strong support of increased funding for fruit and vegetable purchases in federal feeding programs. In addition, we will work in strong support of expanding the DOD Fresh program and the Fruit and Vegetable Snack Program.

USApple Position: USApple supports an increase in the reimbursement rates for school meals tied to implementation of the Dietary Guidelines and funding for non-food assistance grants to help schools purchase equipment such as refrigeration. USApple also supports expansion of the DOD Fresh Program, Fruit and Vegetable Snack Program and Sect. 32 purchases as part of the 2009 Child Nutrition Reauthorization Act.

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International Trade

Strong MAP funding is critical to the U.S. apple industry's efforts to increase grower profitability by expanding exports. Congress recognized the importance of MAP by authorizing increased funding in the 2002 Farm Bill. During the Farm Bill debate, USApple urged Congress to increase the program to $325 million. The House and Senate versions of the Farm Bill both provided increases while the Administration's FY09 budget proposal would hold the program at $200 million.

The Foreign Agriculture Service (FAS) plays a critical role in the administration of MAP funds and the successful implementation of export programs. Full funding of FAS is required in order for the agency to maintain their oversees presence and properly support export efforts.

USApple Position:
USApple urges Congress to expand the MAP program and to fully fund the Foreign Agriculture Service (FAS).

Market-Opening Trade Negotiations
The future of the U.S. apple industry may be determined in large part by the industry's ability to improve its access to foreign markets through negotiation of free trade agreements with overseas customers. Approximately 25 percent of the U.S. fresh apple crop is exported each year. Since Congress granted the President renewed trade promotion authority in 2002, the Administration has been moving forward to negotiate bilateral and regional trade agreements, as well as world trade liberalization through a new round of World Trade Organization (WTO) negotiations.

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