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Agriculture affects our environment in significant ways, but farms are largely exempt from US environmental laws. The Farm Bill guides US farm policy, yet impacts the business choices farmers make.

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Transcript
00:00Hello, I'm Susan Schneider, the William H. Enfield Professor at the University of Arkansas
00:12School of Law and the Director of the LLM Program in Agricultural and Food Law.
00:18Our topic today is the Farm Bill, the major environmental law you've never heard of.
00:25The Farm Bill is an omnibus, multi-year law that governs an array of agricultural and
00:29food programs.
00:31Enacted approximately every five years, it essentially sets farm policy.
00:37It's one of the last remnants of bipartisan agreement, with that agreement only reached
00:42because of the careful balancing of interests between the farm and nutrition communities.
00:49Its impacts are diverse and significant.
00:53Our current Farm Bill was enacted in 2018, and negotiations are already underway for
00:58its replacement in 2023.
01:03Today we're going to explore the Farm Bill and environmental law with two very distinguished
01:07environmental law attorneys.
01:10Peter Lehner is a managing attorney at Earth Justice, directing the Sustainable Food and
01:16Farming Program.
01:18And Michael Drysdale is of counsel with the law firm of Dorsey and Whitney, where he has
01:23practiced environmental law for over 25 years.
01:28Peter and Mike, could you each tell us a little bit about your environmental law and agriculture
01:33experience?
01:34Peter, let's begin with you.
01:37Sure.
01:38I started off working for the city of New York, where we have a water supply that is
01:44upstate, and one of the challenges was keeping that enormous surface water supply clean.
01:51And I found that the environmental laws gave me a great tool, me in the city of New York,
01:58a powerful tool to prevent pollution from most human sources into our drinking water.
02:03But it was a real challenge to address the waste from, for example, a number of the dairies
02:08and other agricultural operations.
02:11I later worked and ran the Environmental Bureau for the New York State Attorney General's
02:16Office, and I saw the same thing statewide, that the environmental laws provide a really
02:22strong tool for addressing pollution from, for example, sewage treatment plants or industrial
02:28sources, but a much less powerful tool for addressing agricultural pollution.
02:36And later, when I was running NRDC, a national environmental group, we saw the same thing
02:42nationally.
02:43And each time, I saw the mismatch between the pollution caused by much of industrial
02:48agriculture and the challenges that environmental law faces in addressing that pollution.
02:57The key to all of this is the Farm Bill.
02:59The Farm Bill is the one bill that addresses agriculture in both its positive and its negative
03:05aspects, and that's why I turned to start focusing on that.
03:12Mike, could you share with us your environmental and agricultural law experience?
03:17Sure.
03:18I've sort of been on the other side of the table.
03:20I've worked with agricultural industry clients my whole career.
03:26These can run the range from pretty small family operations to quite large crop processors.
03:32And across that range, there's a great deal of variation in how much their operations
03:38are constrained and regulated by the traditional environmental laws.
03:42But nearly all of them have a very large stake in the Farm Bill, and indeed often structure
03:47their entire businesses around what the Farm Bill supports, subsidizes, disincentivizes,
03:54et cetera.
03:55So it really is a major gravitational force in their entire industry.
04:03And thank you both for being with us.
04:05Before we jump into unpacking the Farm Bill and its impact on environmental law, we really
04:10need to explore the environmental impact of agriculture here in the United States.
04:14Peter, can you provide some explanation?
04:17Sure.
04:18I think it's important first to recognize that agriculture in the U.S. is actually quite
04:24good at doing what it is largely designed to do, designed, as Mike said, by the Farm
04:28Bill, which is to say it produces tremendous quantities of food, fiber, and even fuel,
04:34bio corn for ethanol.
04:37And food is now cheaper than it's been in decades.
04:40We export a lot of food.
04:42And so it has been successful.
04:45It's doing exactly what it meant to do.
04:48However, that production has consequences.
04:50It uses a vast amount of land.
04:52There's about 800 million acres used for grazing, 400 million acres used for crops,
04:59only about half of which are actually eaten by humans.
05:01The others are used for animal feed.
05:03That's about 62% of the contiguous U.S. is used for agriculture.
05:09It also uses about 80% of our water, as you can probably imagine.
05:14And on the other side, it actually is a major pollution source.
05:18As I mentioned earlier, the Clean Water Act, for example, has done a great job cleaning
05:22up industrial sources of pollution, but much less so from agricultural water pollution.
05:27So agriculture now is one of the dominant sources of water pollution, runoff from fields
05:33and animal operations, especially excess fertilizer and pesticides in manure, soil erosion.
05:41You've probably heard of the dead zone in the Gulf of Mexico, eutrophication in Chesapeake
05:46Bay or drinking water contamination, algae blooms.
05:50All of these water pollution problems are significantly contributed to by agricultural
05:56runoff.
05:57There's also, in another way, you probably don't think of agriculture as a major source
06:02of air pollution, but actually that's also true.
06:05There are some toxic gases such as hydrogen sulfide and ammonia that come from animal
06:09operations, smog producing nitrogen oxides from fertilizers, fine dust, contaminating
06:17often local communities.
06:19And much of this often will carry the pathogens, the disease causing organisms, or even antibiotics
06:26from farms.
06:27Also, of course, all the truck emissions.
06:30So it's a major source of air pollution.
06:33And then because it uses all that land, it has changed a tremendous amount of habitat.
06:37It's the dominant reason why natural habitats, which says maybe wetlands or a forest or native
06:44grasslands have been converted into agricultural land, which causes tension with wild species,
06:51whether it be wolves or bears, where ranchers want to be, or aquatic creatures, whether
06:57it be salamanders or mussels, and all of these thriving from this enormous amount of land
07:05and water that agriculture uses.
07:08And finally, it's a major user of water, as I said earlier, which in some places, I'm
07:12in the fairly rainy Northeast where that's less of an issue.
07:16But in dry California, the use of water by agriculture puts a real stress on, for example,
07:23municipal water supply needs.
07:25And in the Midwest, agriculture is often draining some of the important aquifers.
07:31So we've got agriculture that, on the one hand, produces a tremendous amount of food
07:36very cheaply, and on the other hand, has these environmental consequences that haven't fully
07:41been addressed.
07:42Unfortunately, many of these impacts particularly affect communities of color.
07:47For example, pesticides obviously affect farm workers, two-thirds of whom are people of
07:52color.
07:53And in North Carolina, another example, which is one of the top pork-producing states, almost
07:59all of the major swine facilities are located in communities of color.
08:05And I would just add to that, that among those enormous numbers that Peter was just referring
08:10to, you have a tremendous diversity of practices and companies, everything from very small
08:19operations to quite large operations, all of which have very disparate impacts.
08:26And also within that range of operations, you also have a tremendous degree of sophistication
08:33and technical resources in terms of people's ability to be sensitive and to be responsive
08:41to the environmental issues that may be causing.
08:44I don't know of anybody in the industry who is looking to cause environmental impacts,
08:49but these are operations that are often functioning on razor-thin margins.
08:55Their dominant objective is to produce food that they can then earn a living from.
09:01And if there are environmental consequences associated with that that are allowed, either
09:05because they're not regulated or they are expressly permitted, that's going to happen
09:12to a certain degree.
09:13So this isn't a situation of bad actors or evil intent or anything like that.
09:21It's simply consequences of the system we have set up.
09:26We also need to raise the issue of climate change.
09:30How does agriculture and our food system contribute to climate change?
09:34And what risks are there for our food system in a changing climate?
09:37Peter?
09:38Well, let me address the risks first, which is, I think, something that every farmer or
09:44rancher is seeing more now.
09:47Climate is changing.
09:48And whether it be more floods and more droughts, more extreme storms, increased range of pests
09:54and heat waves, which are terrifically damaging to both animals and, of course, workers, wildfires,
10:01all of these probably affect agriculture more than almost any other form of sector of our
10:07economy because agriculture is so dependent on the weather.
10:10And it's not just extreme events, it's regular patterns.
10:14Climate change really depends on regular patterns, which are changing.
10:18In terms of agriculture's contribution to climate change, it's tricky because most people
10:23think about climate change as caused by the burning of fossil fuels, which releases carbon
10:28dioxide.
10:29And agriculture's primary contribution to climate change is really not so much carbon
10:35dioxide, although there is some carbon dioxide from all the farm equipment and energy used
10:39on farms.
10:40One of the main ways agriculture contributes to climate change is through emissions of
10:44methane.
10:46Methane come from emissions from manure and from cattle themselves, that every time they
10:52breathe out, they breathe a significant amount of methane.
10:54So the cattle industry, the agricultural industry, produces about as much methane in the U.S.
11:00as the oil and gas industry.
11:02But we rarely think of that.
11:04And methane, as you probably know, is a potent greenhouse gas over 20 years.
11:11It's more than 80 times more powerful a greenhouse gas than carbon dioxide.
11:16The other major way that agriculture contributes to climate change is through emissions of
11:20nitrous oxide, another greenhouse gas that's about 300 times more potent than carbon dioxide.
11:28And that largely comes from excess fertilizers.
11:31American farmers, for a variety of reasons, tend to put more fertilizer on their plants
11:36than the plants can actually take up.
11:39Some of that fertilizer runs off, as I mentioned earlier, and creates nutrient pollution.
11:44But other of it is converted by bacterial mechanisms into nitrous oxide, which also,
11:52which as I said, is a potent greenhouse gas.
11:55And finally, the last contribution of agriculture to climate change is through the conversion
12:00of land itself.
12:02Healthy lands, forests or grasslands, for example, have a tremendous amount of carbon
12:07in the soil.
12:09When that land is converted into agriculture and plowed every year and tilled every year,
12:14all of that carbon or much of that carbon is lost to the atmosphere, mixes with oxygen
12:19in the atmosphere and is lost as carbon dioxide.
12:22So the soils are depleted and less fertile, and it's lost a lot of carbon dioxide.
12:28So those are the three or four main ways that agriculture contributes to climate change.
12:35Yeah, and I, you know, the other thing that's important about the climate change impact
12:39of agriculture is how recent and rapidly evolving our understanding of these impacts are.
12:46I mean, most of the environmental laws that we'll be talking about a little bit later
12:51date from the 1970s, when climate change wasn't really on the radar at all.
12:57And even as recently as a couple of farm bills ago, there wasn't that, the kind of understanding
13:02of the impacts of agriculture and the climate that we have today, even by year by year,
13:09we learn more about the interaction of soils and carbon, the carbon cycle, how different
13:17practices may increase emissions or reduce them or modify them.
13:24And so not only do we have a sector that has a large impact, but it's sort of the least
13:28understood in many ways of the big sectors.
13:31We've kind of known about the power industries impacts for quite some time, and those are
13:36pretty straightforward.
13:37Same for the transportation sector.
13:40But agricultural sector is, again, very diverse with very diverse impacts, and only recently
13:46and understood and with a very growing understanding.
13:51So that's another very important component to this whole issue.
13:55And I would just add, to be fair, it's also tougher to measure.
13:59We may have a couple of hundred power plants, and you can know exactly what's going on in
14:04the power plant and figure out the carbon dioxide emissions.
14:07It's pretty hard to both model and measure what's coming off of hundreds of millions
14:12of acres of land.
14:14And for example, I mentioned nitrous oxide.
14:16The amount of nitrous oxide can depend on a lot of factors, whether it rains shortly
14:21after fertilizer application, how close, the time of year, the crop, the region.
14:27So our understanding, as Mike said, is changing, and biological systems are frankly more complicated
14:33than burning a hunk of rock, like coal.
14:38This paints a dark picture for us.
14:41What structural issues are there that have allowed these problems to develop to this extent?
14:46Mike, could you explain a little bit about the structure of agriculture today and why
14:50it's hard to regulate for these types of environmental problems?
14:54Sure.
14:55I think there's a few factors at play here.
14:59One is, as we mentioned before, the sector is extremely diverse.
15:03There are a tremendous number and type of different operations that have tremendous
15:08variability in the types of impacts that they have.
15:11That means you can't adopt one-size-fits-all solutions, at least not as much as you can
15:16for some other sectors.
15:18Another thing that's very important is, while there still is a tremendous amount of diversity
15:23and there are many very small operations, in recent, the past couple of decades in particular,
15:30the industry has gotten much more concentrated.
15:33A much higher percentage of agricultural products are produced by very large operations and
15:41a very small number of operations.
15:43That tends to make the impacts and the emissions more concentrated and more impactful than
15:50when we think back to our older vision of agriculture as just a bunch of tiny farms
15:57scattered across the landscape.
16:01Then finally, on certain issues like climate change, agriculture and agriculture's impacts
16:07have simply not been a regulatory or technological priority up until very recently.
16:13As we were just talking about, the impacts of the sector have only recently been understood
16:18and that understanding is changing pretty rapidly.
16:21In that context, it makes sense that it has not been much of a focus of our regulators
16:27and our technological innovators on how to deal with it.
16:31All these things contribute to making it a uniquely difficult area to regulate.
16:36I want to emphasize, though, that at the same time that what makes it difficult, what Mike
16:42just said also provides a bit of hope, which is that even though there are a couple million
16:48farmers in the U.S. and even though maybe half of those are really not commercial farmers
16:54there for tax or lifestyle or other benefits, that's still a lot of farmers.
16:59It's a relatively small number of farmers, though, that cause or form operations, I should
17:05say, that cause the bulk of the pollution, that produce most of the product and produce
17:11most of the pollution.
17:13And that smaller number actually, I think, provides us a ray of hope.
17:18You don't have to work with hundreds of thousands or millions of operators.
17:22There's a much smaller number.
17:24For example, the top 10% of dairies produce 70% of the milk product.
17:29Those will be the ones you want to work with, not the other 90% and from a number of different
17:35perspectives.
17:36One other thing I would add to that, too, that I think it's important to consider is
17:40that while many of these are very large operations, many of the people who are the owners and
17:45operators are one or at most two generations removed from being the person on a small family
17:54farm.
17:55And so they come from a perspective where they don't often see the impacts that they
18:00have or are accustomed to the kind of regulations that other industries are.
18:06And that very much affects their willingness to engage in more environmentally sustainable
18:13practices, their receptiveness to new regulation, and their perception of their role in the
18:20overall environmental context.
18:22Well, what kind of agricultural practices or systems could we incorporate to resolve
18:30some of those problems and to lessen the carbon footprint of agriculture and better protect
18:35our food system?
18:36Peter, do you have some good news for us on that?
18:40I do.
18:41And the good news is really due to the work of many farmers around the country who have
18:49used sometimes relatively old approaches and then modernized them, but have refined a whole
18:58suite of what are sometimes known as agroecological practices that have a tremendous number of
19:04benefits.
19:06They dramatically reduce water pollution.
19:07They increase the carbon stored in the soil that I mentioned earlier can be released by
19:12agricultural operations.
19:14They can reduce the greenhouse gas emissions.
19:16They often reduce the need for chemicals and pesticides and thus significantly reducing
19:22costs.
19:24And they can also build resilience to climate change, resilience to the floods and droughts
19:29and heat waves.
19:30So these are great practices.
19:31Other things that you may have heard of, cover crops, making sure the ground isn't bare in
19:36the winter, rotating crops so that nature's diversity can build strength, not tilling
19:43the ground as much, adding trees to cropland or to grazing land, trees that have much bigger
19:48roots or other perennial crops, making sure you're rotating your cattle grazing rather
19:54than leaving them out there for a long time.
19:58All of these are well known at this point.
20:02They've been developed in many parts of the country, very often proven to be both terrific
20:08from an environmental perspective, but also much more profitable for the producer.
20:13Our challenge is that they're only used on a small portion of U.S. land, maybe two or
20:19three percent or a little more for some practices.
20:22So our goal should be to dramatically accelerate the adoption of these practices that have
20:28proven to be so effective.
20:31Yeah.
20:32And it's important also in terms of why many of these very creative practices are employed
20:38on such a small number of farms, is you have some really big obstacles to widespread implementation.
20:46And I would point to scaling, tailoring and financing.
20:50From a scaling perspective, it's how do we take something that's been demonstrated to
20:55be effective on a particular farm or particular pilot study or particular set of conditions
21:00and then scale that up to an industry that has very diverse practices around the country?
21:07Secondly, this question of tailoring, that where these innovative strategies are most
21:13effective is when they are very carefully structured and tailored to the particular
21:19operation.
21:20What does the contour of the land look like?
21:22Where is the drainage look like?
21:23What is the character of the soils?
21:26What are the particular crops and rotation of crops or other practices that are occurring?
21:30Having all that information together and factored into the design of a remedial measure is really
21:36important to making it work.
21:38But that requires a really deep understanding and consideration of the particulars of any
21:42specific farm.
21:44And then finally, financing.
21:46As I mentioned before, most agricultural operations, even some very large ones, operate
21:52on very small margins.
21:54And they are always vulnerable to the next bad crop cycle, the next downturn in the market,
22:02the next change in availability of credit, et cetera.
22:06And when push comes to shove, these operations are going to do what they need to do to survive.
22:10And if that means that they're going to plant some more on marginal land or they're going
22:14to apply fertilizers a little bit more aggressively than might be called for for environmental
22:19protection, they're going to do it if they're allowed to do it.
22:22And there's no way to make it economical for them to employ some more robust practices.
22:28So putting those three things together in a package that can then be used in a widespread
22:34way is a real, it's an opportunity, but it's a real difficult challenge.
22:41Well, as we work our way toward the Farm Bill and farm policy specifically, I think it's
22:48important to consider what major U.S. environmental laws we have and how these either apply to
22:54agriculture or don't apply to agriculture.
22:57Mike, could you start us off on this?
23:00Sure.
23:01Now, we don't really lack for environmental laws in this country, mostly stemming from
23:07the great burst of legislative activity that occurred in the 1970s.
23:11We have a wide array of environmental laws that cover a wide array of emissions and in
23:16many ways could cover most of the impacts of all agriculture.
23:19I'm going to throw up a slide here that sort of lists eight major environmental statutes.
23:25And as you can see from these, they go from sort of the traditional big hitters that we
23:29think of like the Clean Water Act and the Clean Air Act to more sophisticated and tailored
23:36evidence-based laws like the Pesticide Acts and the Toxic Substances Acts.
23:42And if you add these all together, you really touch upon just about everything that agriculture
23:47could do.
23:49But as it turns out by both design and practice, agriculture gets off pretty lightly under
23:54these laws.
23:56First of all, from a design perspective, most of these statutes focus on what we call in
24:03the lingo point sources, pipes and stacks, define things through which pollutants come
24:10out of.
24:11And when these laws were passed, that was where most of the environmental pollution
24:16was coming from and most of the cleanup action could occur from.
24:21But as it turns out, most agricultural emissions don't come from pipes and stacks.
24:25They come from runoff from fields and very diverse and diffuse emissions from a whole
24:31variety of places that aren't pipes, aren't emission sources in that sense.
24:37In other cases, the law would seem to apply to certain emissions but have been interpreted
24:42by court decisions more narrowly.
24:44For example, combined or concentrated animal feeding units are a major source of emissions
24:50throughout the country and many of their emissions do come what would appear to be from pipes.
24:55But as the laws have been interpreted, in many cases they have been exempted.
25:00And so in that case, even though it would appear that the law covers a particular emission
25:04in practical reality and through judicial interpretation, it does not or does not as
25:08much as it could have.
25:11And finally, even where there is pretty clear statutory authority, oftentimes agriculture
25:16has gotten off lightly just as a practical and political matter.
25:21Both the Clean Water Act and the Clean Air Act have provisions that allow for the regulation
25:26of more diffuse non-point sources.
25:29But they're largely left to the states.
25:32And in general, agriculture has been lower profile in the targets for that kind of regulatory
25:38activity.
25:39That's for a variety of reasons.
25:41It's hard to do.
25:42The agricultural sector is well-motivated and politically powerful in most states.
25:48And so states have generally found it to their advantage to focus on other areas in lieu
25:53of agriculture.
25:54You add all these things up together, and even though we have an awful lot of regulatory
25:59authority to theoretically control agricultural emissions, in practice, it's not as great
26:06as one might imagine.
26:09I would simply add that one of the key factors of all of these environmental laws is some
26:14amount of transparency.
26:15An industrial source needs to have a permit and measure its emissions.
26:19And all of that is public.
26:21If you're not in the system, as most agriculture is not in the system, there's much less monitoring
26:28of the impacts.
26:29And whatever monitoring there is, is probably not publicly available.
26:33And so even though we know through EPA and other studies that as nationwide agriculture
26:40is having these tremendous environmental impacts, it's much tougher to get that down to a specific
26:46source or specific water body and get the type of evidence that, for example, I needed
26:51when I worked at the New York Attorney General's Office to enforce our pollution laws.
26:57So that secrecy or that lack of transparency, maybe better, puts a real barrier into addressing
27:06agricultural pollution through our environmental laws, as Mike pointed out.
27:13So clearly, we've got environmental problems associated with agricultural production.
27:19We've got an array of laws that, for one reason or another, are not applicable to the ag industry
27:25or are not being implemented in that way.
27:31And we've got transparency issues in terms of what's going on.
27:35What about the Farm Bill?
27:37How does the Farm Bill influence farming practices?
27:40And what impact does this have or can this have on environmental issues?
27:46So the Farm Bill, in many ways, sets the agenda for farming over the next five-year cycle.
27:55And while it has a number of titles and does quite a wide variety of things, I think it
28:01can be summarized as really three major, as it relates to the environment, three major
28:07activities.
28:09First, what the Farm Bill does is promote and support demand for agricultural products.
28:16That's through a variety of things, like food nutrition, food stamps, other things of this
28:21nature that try to get food on the table for Americans.
28:26And while that doesn't directly relate to environmental protection, it defines how we
28:33eat in a large measure, how a large percentage of this country eats.
28:37And what the Farm Bill, in doing so, does or does not do is define then what the emissions
28:43are going to be from that style of eating.
28:46To the extent the Farm Bill promotes the American diet, that means it's going to be promoting
28:51a diet that's rich in protein, that has a lot of animal products, and then has the emissions
28:57associated with animal products.
28:59Second thing that the Farm Bill does is promote and support the supply of agricultural products.
29:05The two big ways it does through that are things like crop insurance and price support
29:10programs.
29:11And what those do is those help farmers reliably and consistently get food to the market.
29:19That can be through protecting them through the adverse effects of weather and market
29:23cycles.
29:24It can be through giving a better price for their products so that production is higher
29:30than it would otherwise be.
29:32And then, of course, the crops that are supported, and there's really about 14 crops that are
29:37considered commodity crops that get the lion's share of the support, those are the ones that
29:41we're going to produce, and those are the ones that we're going to see impacts from.
29:45And the final and really important part of the Farm Bill that directly relates to environmental
29:49protection is the conservation programs.
29:52Peter will talk a little bit more about those, but there's a variety of programs that are
29:56expressly designed to reduce the environmental impact of the agricultural sector.
30:02Now, I'll throw up another slide here that sort of shows the relative balance of these
30:06three things.
30:07And what you can see here is that over this nine-year cycle of the last nine years or
30:12so of expenditures, or goes into 2023, that about 80% of all the money spent in the Farm
30:19Bill goes to that demand-side expenditure, the nutrition-type programs that define what
30:27we eat and therefore what we produce.
30:29The next big chunk, which is quite a bit less, is the programs designed to support supply,
30:38the crop insurance and commodity programs.
30:40And then finally, smallest of all, are the conservation programs.
30:44That doesn't mean that the environmental effect and bang for the buck of each of these programs
30:48is exactly dollar-for-dollar equal, but it shows you the relative importance of these
30:53things.
30:55And altogether, these three things, by defining what we're eating, what we're producing, and
31:00related to what the effects are, all in a way that's as important as any direct environmental
31:07law influences the impact of the sector.
31:10Peter, you want to add something on the conservation programs and other points?
31:13Sure.
31:14Actually, I'll go back a bit and say it's helpful to remember that the Farm Bill really
31:19started during the Depression, after the Dust Bowl, and so there were two major goals.
31:25One was to address the environmental consequences of the Dust Bowl, and the other was to deal
31:31with the Depression, which had two parts.
31:34One was people were hungry and needed to be fed, and the other was that the prices that
31:40farmers were receiving for their crops was very, very low.
31:45So the early Farm Bill had some programs where they would limit the supply of food to keep
31:55the price high by either the government buying that food and providing it to the poor, or
32:01by just making sure farmers didn't plant.
32:04Those programs that originally stuck together a little bit now are separate programs, but
32:11politically they're still very necessary in order to get the Farm Bill, because very different
32:15constituencies tend to focus on the feeding programs, the Supplemental Nutrition Assistance
32:20Program, and the Farm Program.
32:23In order to get this through, and it has to get through every five years, you need these
32:28broad constituency.
32:30I think it's helpful to look at some of these programs in a little more detail, like Mike
32:35mentioned, the commodity programs, which farmers get paid just based on historical plantings.
32:42It's not crop insurance, they don't have to pay a premium for about 14 or 15 commodity
32:49crops, and they get paid if the price drops a certain amount, or if the yields drop a
32:53certain amount.
32:56Because it's based on historical plantings, of course, it essentially creates a bit of
33:00a break on changing what you do, whether a farmer is going to plant something new.
33:08Because it's based on historical plantings also, you want to have a lot of historical
33:12plantings, which has been encouraging, as Mike said, planting perhaps on marginal lands.
33:18That program gives out about $6.5 billion every year.
33:23Crop insurance is similar, but farmers have to pay some, the premium like insurance, although
33:28actually the taxpayer subsidizes about two-thirds of that premium.
33:33Right now, that's about $7.5 billion every year.
33:37This covers, unlike commodity, which covers only 14 or 15 crops, this covers about 130
33:42crops, but still 80% of the payments go to corn and soybean.
33:49So it covers other crops, but still the vast majority goes to these major commodity crops.
33:56And now let's turn to the conservation programs, because all of them have, you will see, some
34:01history.
34:04One is the, and perhaps the best known, is the Conservation Reserve Program, which pays
34:09farmers usually in 10-year contracts to take land out of production.
34:15That program is about $2 billion a year.
34:19And of course, when the land is out of production, it has these, it doesn't produce as much water
34:25pollution or air pollution and provides some habitat.
34:29So on the one hand, that's great.
34:30On the other hand, sometimes they don't pay farmers enough, so it's not, it doesn't make
34:35sense for them to take the land out of production.
34:39Sometimes the land is not the most ecologically valuable land.
34:44And perhaps most importantly, very often after the 10-year contract is up, the land
34:48goes back into production.
34:50So if you, for example, have stored more soil in the carbon during that 10-year period,
34:55it can be lost when the land is put back into production.
34:59Another of the major conservation programs is called the Conservation Stewardship Program.
35:05This gets about a billion a year.
35:07And this is more for practices where usually five-year contracts, the government will assist,
35:14pay a portion of a shift to better, more ecologically sound practices.
35:21And this is generally gets favorable reviews, although not all the practices supported as
35:27we know more are necessarily that good for the environment.
35:33Another of the major conservation programs is called EQIP, the Environmental Quality
35:38Improvement Program.
35:40And this is for capital projects, really, for infrastructure, where the government will
35:44pay a significant portion, usually 70% or more, of costs of infrastructure upgrades.
35:54And those, it sounds good, but actually the Natural Resource Conservation Service, which
36:00implements the program, has itself found that many of the programs that EQIP supports actually
36:06are not really beneficial for the environment.
36:09And yet they're still significantly supported.
36:11So there's a tremendous opportunity to take this good idea and tailor it much better.
36:18And finally, there's a couple programs that will pay really for permanent easements, agricultural
36:26conservation easements.
36:28That only gets about a half a billion dollars a year.
36:32And that will essentially buy the agricultural rights of the land is put longer term or permanently
36:39into perhaps more ecologically beneficial purposes.
36:44I think it is important in all of this to note that that is very often the environmental
36:50community has focused almost entirely in the Farm Bill debates on the conservation programs.
36:57And I think that's something that we hope this program will alert more people to the
37:01importance of all the programs, because all the programs have a real impact on what happens
37:06in the environment.
37:07And so all the programs are important.
37:09I should mention just quickly at the end that Farm Bill, as Mike mentioned at the beginning,
37:14has a whole series of other titles, including trade promotion.
37:20Much of our food is exported to other countries, and the U.S. does a lot to promote trade.
37:25So we can export grain, feed grains and meats.
37:30There are provisions dealing with credit.
37:32Farmers need both long term and short term credit.
37:35Every year you need some working capital to plant, and you may need longer term credit
37:40in order to be able to expand or build a new operation.
37:44There's research titles.
37:46There's titles dealing with rural energy.
37:49There's titles dealing with bioenergy, organic agriculture and horticulture.
37:54So there's a lot in this bill.
37:55Last bill was over 800 pages long.
37:58An additional problem with all these programs, both the supply and the conservation programs,
38:03is that they were implemented for decades in a highly discriminatory fashion.
38:09This has led to a terrible loss of farmland by Black and Indigenous farmers and other
38:14farmers of color.
38:16And moreover, when we think about all of these programs as providing a farm safety net, there's
38:21virtually no part of the Farm Bill that provides a safety net to farm workers, again, who are
38:26mostly people of color and who do most of the work on our farms.
38:30As we look forward to the next Farm Bill, and as I mentioned in the introduction, we're
38:37already beginning some negotiation on that.
38:40Are there some of the provisions that come out to you that we should be looking at for
38:45additional environmental protections and an additional environmental impact?
38:50Sure.
38:51I'll offer a couple quick thoughts.
38:55As Mike mentioned earlier, one of the challenges to scale up these agricultural, agroecological,
39:03more sustainable practices is we don't know that much about them.
39:08They've been used successfully, but only in some areas.
39:14Agricultural research has been starved in the last couple of decades.
39:18It is now less than half of what it used to be.
39:20The U.S. used to be a leader in agricultural research, and now we are not.
39:24And private agricultural research does not take the place of public agricultural research.
39:30It looks into different things.
39:32And even when there was agricultural research, very little of it went into issues relating
39:37to sustainability or climate change.
39:39It largely went into productivity.
39:41So there's a great opportunity to significantly increase the research into sustainable agriculture
39:48practices so we just frankly know much more about them and have a much bigger arsenal.
39:56Another opportunity is in the outreach programs.
39:59I mentioned these conservation programs.
40:02All of those are to some extent accompanied by outreach.
40:06The Natural Resource Conservation Service has thousands of employees in virtually every
40:11county in the country.
40:14And they can provide much more technical assistance, outreach, and education on these more sustainable
40:22practices.
40:23And as Mike said earlier, the second challenge to scaling up is tailoring.
40:28What works in Georgia will not work in New York, will not work in Illinois or Washington.
40:34And so it's really important that we have this extraordinary opportunity of technical
40:40specialists in every county.
40:42That's very regional, that's very specific, who can help farmers figure out what are the
40:47cover crops that work for my soil in my region.
40:51And that is an opportunity just with the existing program to dramatically scale up.
40:56Mike, you want to mention some others?
40:59Yeah, and I would add that I wouldn't look away from some of the big ticket items as
41:04well too.
41:05So to give you a concrete example of kind of how a lot of this plays together, I do
41:09a lot of legal work for a sugar beet cooperative in northern Minnesota.
41:13Minnesota, believe it or not, produces a lot of sugar.
41:16And that entire operation is structured around the farm bill.
41:22Sugar is one of the commodity crops.
41:24It's a price-supported crop.
41:27The entire facility and the entire array of farmers who are participants in that facility
41:33is defined around how much price-supported sugar they can produce.
41:39So if that were adjusted in one fashion, up or down, that would affect how much sugar
41:46is produced and the impacts of that sugar.
41:49They've also been very reliant on crop insurance.
41:52They had a freeze a number of years ago that would have devastated the operation were it
41:56not available for crop insurance.
41:58And so were there terms and conditions associated with crop insurance provisions that were related
42:03to environmental practices, that would have an influence on their behavior.
42:07They've also done some really creative things with the state in terms of management of their
42:11wastewater, but that was through a state initiative.
42:16Similar kinds of initiatives could be done at the federal level, again, as part of the
42:21basic commodity support structure that could promote creative things more widely.
42:28So while there's a lot of, Peter identified a number of really great technical research-based
42:34stuff that could be done, there's also room for innovation on the basic structure of the
42:38bill that could have some very positive impacts going forward.
42:42Yeah, I want to really emphasize and agree with Mike on that.
42:46We mentioned earlier that commodity payments are based on historical plantings.
42:50Exactly how that is linked creates, as I mentioned, a barrier to innovation.
42:56That can be changed in a new farm bill.
42:58There's also an important provision called conservation compliance.
43:01For any farmer that accepts money from the commodity programs, the crop insurance of
43:07the conservation programs, they have to comply with a few conservation requirements.
43:13In reality, those conservation of compliance requirements are very, very modest.
43:17They only apply to about a quarter of cropland and not really to grazing land.
43:22They don't require much in terms of sustainability, but they do represent a deal that is really
43:29quite fair, that if the producer is going to get a lot of support from the government,
43:35which is appropriate because we are concerned about having a farm safety net, but we want
43:40to make sure that that producer isn't producing in a way that is harming their neighbors,
43:45whether downstream or downwind or their communities.
43:49There's a great opportunity, I think, to increase that conservation compliance program, increase
43:57its coverage, increase what is required, provide more outreach and support for oversight so
44:05it's implemented much better than it currently is.
44:09There's a conservation programs that can be better targeted.
44:11There's conservation compliance that can be expanded and better targeted.
44:15These core commodity programs that have hidden in them formulas that create disincentives
44:25for better practices often or incentives for practices that have impact, all of that can
44:31be adjusted in a new farm bill.
44:34In a way, I think that would be actually beneficial, not only to the environment and to people
44:40eating, but also to the producers themselves.
44:43We're almost out of time now, but I'd like to give each one of you a chance to provide
44:49a final comment about the issues that we've discussed and where we should go from here.
44:55Peter, could you start us off?
44:58Sure.
44:59I'm first going to mention one thing that some of the folks who are actually now in
45:03the USDA have suggested using the government's trade authority, what's called the Commodity
45:10Credit Corporation or something like that, essentially to pay farmers to implement climate-friendly
45:16practices.
45:18It's another version of what I was saying earlier, perhaps a deal that instead of just
45:22paying them, pay them to make sure their practices are more sustainable.
45:27I think there's great opportunity there.
45:29It takes a lot to change practices.
45:33We need our food and we should be willing to pay to assist that transition.
45:40In terms of my last comment, I would just say, as we've tried to emphasize, the farm
45:45bill affects all of us.
45:46It's the food we eat, it's the land we live on, it's the water we drink.
45:50Too often, environmental interests and others really don't pay much attention to it.
45:56We are hopeful through this program and through learning more about the farm bill, people
46:00will realize that the farm bill is really one of the most important environmental issues
46:05that they can get engaged with, and we will have a better result the more people that
46:10engage with it.
46:11As I noted, most of these US farm programs have been implemented for years in a highly
46:16discriminatory fashion.
46:18Fortunately, there's now a lot more attention to these issues and awareness of the need
46:23to address this, and it is going to be critical that all of these reforms we discuss are implemented
46:29in a way that benefit all farmers, and particularly those who have been historically excluded
46:35or disadvantaged by farm programs.
46:37Yeah, and I would end on a fairly hopeful note as well.
46:44It's the reality of our times that it's almost impossible to pass most legislation.
46:51As we saw, the major environmental laws date back from the 1970s.
46:55But the farm bill is an exception.
46:57It's a must-pass piece of legislation, and it will pass.
47:01No state can afford to not have its delegation work very hard to do the farm bill, and that
47:10gives a tremendous leverage to all entities, including environmental interests.
47:15So it's a rare and unique opportunity to employ some creative policy initiatives that both
47:21continue to put good, abundant food on the American table, and yet also lessen the impact
47:27of the sector of the landscape and the climate.
47:30It's really one of our current most important policy laboratories, and I echo Peter's call
47:35that people should be engaged and be involved as the next farm bill is developed.
47:45What a fascinating discussion.
47:47Thank you to Michael Drysdale from Dorsey & Whitney.
47:51Thank you to Peter Lehner from Earthjustice, and thank you for joining us today to learn
47:56more about this very important topic.

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