Failed acreage - Tracts of properly-planted and managed crops that did not grow or were destroyed due to a natural disaster. Failed acreage is eligible for indemnification if covered by the federal crop insurance program.
FAIR Act of 1996 - Federal Agriculture Improvement and Reform Act of 1996; the 1996 omnibus farm bill.
Fair information practices - A set of standards developed in the early 1970s to describe how information should be used and protected; usually stated as eight principles in this country and including openness, individual access, collection limitations, data quality, use limits, disclosure limits, security, and accountability. The agriculture community is starting to consider whether it needs such a set of standards, and whether this set is the best model.
Fair market value (FMV) - The amount in cash, or on terms reasonably equivalent to cash, for which in all probability something might be sold by a knowledgeable owner to a knowledgeable purchaser. Several federal statutes state that the federal government should receive fair market value when exchanging or selling federal lands and resources.
Fallow cropland - Cropland left idle during the growing season, sometimes called summer fallow. It may be tilled or sprayed to control weeds and conserve moisture in the soil. The amount of cultivated summer fallow has ranged between 22 and 32 million acres over the past 10 years, or 7 to 10% of the cropland used for crops.
Family Farm - As defined by USDA regulations, a farm that (1) produces agricultural commodities for sale in such quantities so as to be recognized in the community as a farm and not a rural residence; (2) produces enough income (including off-farm employment) to pay family and farm operating expenses, pay debts, and maintain the property; (3) is managed by the operator; (4) has a substantial amount of labor provided by the operator and the operator’s family; and (5) may use seasonal labor during peak periods and a reasonable amount of full-time hired labor.
Farm - As defined for purposes of the Census of Agriculture since 1978, a farm is any place that has, or has the potential to produce, $1,000 or more in annual gross sales of farm products. According to the 1992 Census of Agriculture, there are about 1.925 million farms in the United States. This number includes all farm sizes and ownership structures, including corporate farms, partnerships, and family farms.
Farm acreage base - The total of the crop acreage bases (wheat, feed grains, cotton, and rice) for a farm for a year, the average acreage planted to soybeans and other non-program crops, and the average acreage devoted to conserving uses (excluding Acreage Reduction Program land). The FAIR Act of 1996 eliminated the need to calculate a farm acreage base.
Farm and risk management (FARRM) accounts - A proposal that would permit farmers and ranchers to put aside money in good (higher-income) years without having to pay taxes on the savings until it is withdrawn at a later time, presumably in lower-income years when taxable income also would be lower. Bills to create these accounts have been introduced in Congress in recent years.
Farm bill - A phrase that refers to a multi-year, multi-commodity federal support law. It usually amends some and suspends many provisions of permanent law, reauthorizes, amends, or repeals provisions of preceding temporary agricultural acts, and puts forth new policy provisions for a limited time into the future. Beginning in 1973, farm bills have included titles on commodity programs, trade, rural development, farm credit, conservation, agricultural research, food and nutrition programs, marketing, etc. These are referred to as omnibus farm bills. The following is a generally agreed chronological list of farm bills: (1) Food and Agriculture Act of 1965, P.L. 89-321; (2) Agricultural Act of 1970, P.L. 91-524; (3) Agriculture and Consumer Protection Act
of 1973, P.L. 93-86; (4) Food and Agriculture Act of 1977, P.L. 95-113; (5) Agriculture and Food Act of 1981, P.L. 97-98; (6) Food Security Act of 1985, P.L. 99-198; (7) Food, Agriculture, Conservation, and Trade Act of 1990, P.L. 101-624; (8) Federal Agriculture Improvement and Reform Act of 1996, P.L. 104-127.
Farm Credit Act of 1971 - P.L. 92-181 (December 10, 1971) recodified all previous acts governing the Farm
Credit System (FCS, or System), a cooperatively owned government sponsored enterprise that provides credit primarily to farmers and ranchers. The Act eliminated earlier provisions relating to government capitalization of the System, and expanded the lending authorities of many System institutions. The Act, as amended, currently serves as the authorizing statute for the Farm Credit System. Major legislation that has modified the 1971 Act in recent years include: Agricultural Credit Act of 1987 (P.L. 100-233, January 6, 1988) authorized up to $4 billion in federal financial assistance to FCS institutions to assist in their recovery from the agricultural credit crisis of
the 1980s. The Act created a System entity to issue up to $4 billion in federally guaranteed bonds, required the U.S. Treasury to pay a portion of the interest on these bonds, and also required the FCS to ultimately repay the Treasury for this assistance. The Act also mandated the merger of certain System banks within each farm credit district and expanded other merger authorities, and gave delinquent FCS borrowers certain rights. A separate System institution was established by the Act to insure the timely repayment of principal and interest on consolidated Systemwide debt issues. Farm Credit Banks and Associations Safety and Soundness Act of 1992 (P.L. 102-552, October 28, 1992) was designed to enhance the financial safety and soundness of FCS banks and associations by establishing new mechanisms to ensure repayment of Farm Credit System debt resulting from federal financial assistance provided to the System under the 1987 Act. The Farm Credit System
Reform Act of 1996 (P.L. 104-105, February 10, 1996) includes numerous provisions that provide regulatory relief for the FCS.
Farm Credit Administration (FCA) - The independent federal regulator responsible for examining and insuring the safety and soundness of all Farm Credit System institutions. The FCA is governed by a 3-member, Presidentially-appointed board of directors, one of whom serves as chairman.
Farm Credit Banks - Institutions within the Farm Credit System (FCS) that make direct long-term agricultural loans secured by farm real estate through Federal Land Bank Associations. They provide wholesale loan funds to direct FCS lending associations — Production Credit Associations, Federal Land Credit Associations, and Agricultural Credit Associations.
Farm Credit System - A network of cooperatively owned lending institutions and related service organizations serving all 50 states and the Commonwealth of Puerto Rico. The FCS specializes in providing farm real estate and rural homeowner loans, operating credit, and related services to farmers, ranchers, and producers or harvesters of aquatic products. The FCS may also finance the processing and marketing activities of these borrowers, certain farm-related businesses, and agricultural, aquatic, and public utility cooperatives. It is chartered under authorities in the Farm Credit Act of 1971, as amended, but does not receive any direct government funding. The System provides about one-fourth of the total credit used by U.S. farmers, ranchers,
and cooperatives. Historically, the FCS consisted of a Federal Land Bank (FLB), a Federal Intermediate Credit Bank (FICB) and a Bank for Cooperatives (BC) in each of the 12 districts across the nation. Within each district, Federal Land Bank Associations (FLBA) and Production Credit Associations (PCA) served as local lenders for the FCS providing farm real estate and operating credit, respectively. A severe financial crisis led to the enactment of the Agricultural Credit Act of 1987, which provided federal financial assistance to weak institutions in the FCS, but required the FCS to streamline its operations as a condition for assistance. As a result, each district was required to merge its FLB and FICB to form a Farm Credit Bank (FCB). For FLBAs and PCAs that
share a similar geographical territory, stockholders were given the option of merging institutions to form an Agricultural Credit Association (ACA). The Central Bank for Cooperatives and 10 of the 12 BCs also agreed to a merger forming a National Bank for Cooperatives (CoBank).
Farm Credit System Assistance Board - A temporary board created by the Agricultural Credit Act of 1987 and responsible for approving Farm Credit System lender requests for federal financial assistance. Members of the Board consisted of the Secretary of Agriculture, Secretary of Treasury (or their appointees), and an agricultural producer with financial experience.
Farm Credit System Insurance Corporation (FCSIC) - An entity of the Farm Credit System (FCS), established by law in 1987, to insure the timely repayment of principal and interest on FCS debt securities.
Farm equity - The net worth of the farm sector’s assets (i.e., farmland, machinery, equipment, facilities, crop and livestock inventories) against which there is no debt. This represents all farm proprietors’ residual claims to farm assets. Increases in farm equity in the late 1970s became increasingly important for most agricultural producers as a source of additional collateral against which to obtain credit for operating and expansion purposes. The level of farm equity ranges widely from one farm to another. The overall debt-asset ratio is a measure of the farm sectors financial condition.
Farm income - Several measures are used to gauge the earnings of a farming operation over a given period of time: Gross cash income is the sum of all receipts from the sale of crops, livestock, and farm related goods and services as well as all forms of direct payments from the government. Gross farm income is the same as gross cash income with the addition of nonmoney income, such as the value of home consumption of self-produced food and the imputed gross rental value of farm dwellings. Net cash income is gross cash income less all cash expenses such as for feed, seed, fertilizer, property taxes, interest on debt, wages to hired labor, contract labor and rent to nonoperator landlords. Net farm income is gross farm income less cash expenses and
noncash expenses, such as capital consumption, perquisites to hired labor, and farm household expenses. Net farm income is a longer term measure of the ability of the farm to survive as a viable income-earning business, while net cash income is a shorter term measure of cash flow.
Farm income and balance sheet - The income statement measures the profitability of a farm business for a particular period of time, usually one year. The balance sheet measures the wealth or financial position of the business at a particular point in time by reporting the farm’s assets, debt, and net worth. The Economic Research Service publishes the income statement and balance sheet of the Nation’s farm sector, and the farm sector financial statement each state.
Farm inputs - The resources that are used in farm production, such as chemicals, equipment, feed, seed, and energy. Most farm inputs are purchased (a change from the days when animals powered most operations), making production costs susceptible to nonfarm economic conditions. Over time, prices of farm inputs have increased relative to commodity prices, creating what farmers describe as a cost-price squeeze. The relationship between prices paid for inputs compared to prices received for output is quantified in the parity ratio.
Farm loan programs of the FSA - Loan programs, administered by the Farm Service Agency (replacing FmHA), providing both direct and guaranteed real estate, operating loans, and direct emergency disaster loans to individuals whose primary business is farming and ranching. Loans are targeted to family farms whose operators are unable to obtain sufficient credit from private commercial lenders on reasonable terms. Under the FAIR Act of 1996, farm lending programs are permanently reauthorized, with new restrictions on the purposes for which loans can be used and on the length of time borrowers are eligible for new credit assistance. Provisions are extended that reserve a portion of loan funds for new and beginning farmers.
Farm labor housing grants - Section 516 grants are available through the Rural Housing Service to qualified nonprofit organizations to providing housing to farm workers.
Farm labor housing loans - Section 514 loans are available through the Rural Housing Service to qualified farm owners for the purpose of providing housing to domestic farm labor.
Farm Operating (OL) Loans - Subtitle B of the Consolidated Farm and Rural Development Act, as amended, authorizes the Farm Service Agency (formerly FmHA) to make direct and guaranteed farm operating loans. Applicants must be family-sized farmers, who are denied credit by private and cooperative sources, and have reasonable prospects for success in the farm operation. Operating loans are made to farmers to help them pay their operating expenses for such productions costs as feed, seed, fertilizer, and pesticides, and to meet other essential operating expenses. The loan limit is $200,000 for a direct loan and $400,000 for a guaranteed loan, and the scheduled repayment is usually over 1 to 7 years depending on loan purposes. The interest rate on direct loans is determined by the Farm Service Agency and does not exceed the federal cost of borrowing plus
1 percentage point. However, loans to "limited resource" borrowers can be made at significantly below market rates. The interest rate on guaranteed loans is negotiated between the borrower and the lender. USDA guarantees the timely repayment of 90% of principal and interest on guaranteed loans, and in some cases can subsidize the interest rate on these loans. The amount USDA can directly lend or guarantee each year is determined in the annual congressional appropriations process.
Farm operator - A person who operates a farm, either by doing or supervising the work or by making the day-to-day management decisions. Nationally, farm operators own about 57% of their land and lease or rent the remainder.
Farm ownership (FO) loans - Subtitle A of the Consolidated Farm and Rural Development Act, as amended, authorizes the Farm Service Agency (formerly FmHA) to make direct and guaranteed farm ownership loans to eligible family farmers. One of the functions of the FO loan program is to assist farmers, especially beginning farmers, in the purchase and enlargement of farms. An eligible borrower must be unable to obtain sufficient credit from a commercial lender, but must assure reasonable prospects of success in the farm operation. Loans are made for up to 40 years and cannot exceed $200,000 for a direct loan, or $300,000 for a guaranteed loan. The interest rate for a direct loan is determined by USDA, and cannot exceed the cost of funds to the Government plus 1 percentage point. However, direct loans to "limited resource" borrowers can be made at significantly below the federal cost of funds. The interest rate on guaranteed loans is negotiated between the borrower and the lender. USDA guarantees the timely repayment of 90% of principal and interest on guaranteed loans, and in some cases can subsidize the interest rate on these loans. The amount USDA can directly lend or guarantee each year is determined in the annual congressional appropriations process.
Farm price - The price that farmers receive for the commodities they market. Sometimes the term farm-gate price is used to emphasize that the price does not include transportation or processing costs.
Farm programs - This term is generally meant to include the commodity programs administered by the Farm Service Agency, as well as the other USDA programs that directly benefit farmers. Some examples of the other programs include farm loans, federal crop insurance, the noninsured assistance program (NAP), the Conservation Reserve Program (CRP), and conservation cost sharing.
Farm Service Agency (FSA) - One result of the 1994 legislative reorganization of USDA was the consolidation of the ASCS, FCIC and FmHA into a single agency, the FSA. This agency is responsible for administering farm income-support programs, conservation cost-sharing programs, noninsured crop assistance (NAP), and the former FmHA farm loan programs. FSA services are provided through field service centers located throughout the agricultural areas of the nation.
Farm size - Although a standard definition is not available, the most common way to measure farm size is by the value of gross farm sales. USDA defines small farms as those having less than $50,000 in sales annually, representing 73% of the 2.1 million farms counted in 1992. It considers the remaining 27% of all farms (with sales of $50,000 or more) to be commercial farms. Although the 558,000 commercial farms counted in 1992 were a relatively small portion of all farms, they accounted for 88% of gross farm sales.
Farm to retail price spread - The difference between the farm price and the retail price of food, reflecting charges for processing, shipping, and retailing farm goods. The current spread accounts for about three-fourths of the retail price for a market basket of foods, according to USDA. The farm value accounts for about 51% of the retail cost of eggs, compared to 19% for processed fruits and vegetables.
Farmed wetlands - Under the swampbuster program, these are wetlands that were partially drained or altered to improve crop production before swampbuster was enacted as part of the December 23, 1985, farm law. Farmed wetlands may be farmed as they were before the 1985 date, and the drainage that was in place before that date can be maintained, but no additional drainage is allowed.
Farmer Mac (Federal Agricultural Mortgage Corporation) - Created by the Agricultural Credit Act of 1987 as a federally chartered, private corporation responsible for guaranteeing the timely repayment of principal and interest to investors in a new agricultural secondary market. The secondary market allows a lending institution to sell a qualified farm real estate loan to an agricultural mortgage marketing facility, or pooler, which packages these loans, and sells to investors securities that are backed by, or represent interests in, the pooled loans. Farmer Mac guarantees the timely repayment of principal and interest on these securities and, under authorities granted in 1995, can also serve as a loan pooler.
Farmer-Owned Grain Reserve (FOR) - A program, established under the Food and Agriculture Act of 1977, designed to buffer sharp price movements and to provide reserves against production shortfalls by allowing wheat and feed grain farmers to participate in a subsidized grain storage program. Farmers who placed their grain in storage received an extended nonrecourse loan for at least 3 years. Under certain conditions, interest on the loan could be waived and farmers could receive annual storage payments from the government. The FAIR Act of 1996 repealed this program.
Farmers Home Administration (FmHA) - Formerly an agency of USDA that provided direct and guaranteed credit to family-sized farmers who were denied credit by a commercial lender. The 1994 USDA reorganization transferred FmHA’s farm loan programs to the newly formed Farm Service Agency.
Farmers Market - A market where producers, generally farmers, sell their goods directly to consumers.
Farmers Market Nutrition Program - Authorized through FY2003 under Section 17 of the Child Nutrition Act of 1966, this program provides funding for grants to selected states that develop programs promoting the use of farmers markets by WIC recipients.
Farmers stock
peanuts - Picked or threshed peanuts produced in the United
States, which have not been changed (except for removal of foreign
material and excess moisture) from the condition in which picked or
threshed peanuts are customarily marketed by producers.
Farmland - Land used for agricultural purposes. The federal government recognizes prime farmland and unique farmland as the most important categories. According to USDA, the United States has had roughly 1 billion acres of farmland. Farmland consists of cropland, pastureland, and grazing land.
Farmland protection - Programs, operated mostly at state and local levels by government agencies or private entities such as land trusts, that are designed to limit conversion of agricultural land to other uses that otherwise might have been more financially attractive to the landowner. Every state has at least one such program; the most popular programs are tax relief through preferential or differential assessment, and right-to-farm laws. Easements are used in some states.
Farmland Protection Program (FPP) - A program established by the FAIR Act of 1996 to fund the purchase of conservation easements of 170,000-340,000 acres of land having prime or unique soil or other desirable production qualities that are threatened by urban development. Eligibility depends upon already having a pending offer from a state or local government to protect qualifying land by limiting nonagricultural use. USDA is authorized to use up to $35 million of funds from the CCC. During the first year of operation, USDA awarded almost $15 million to 18 states to protect an estimated 50,000 acres of farmland.
Farrow-to-finish - Typically, a confinement operation where pigs are bred and raised to their slaughter weight, usually 200-250 pounds. Facilities that have 2,500 or more swine are considered by the Environmental Protection Agency to be a concentrated animal feeding operation (CAFO) subject to point source pollution permit requirements.
Fast track authority - A legislative procedure that may be adopted by Congress for considering bills to implement trade agreements. The procedure calls for consultation between the President and Congress as trade agreements are negotiated. Once an implementing bill is introduced, it may not be amended, time for debate is limited, and the bill is subject to an up or down vote. Many agricultural interests support fast track legislation on the grounds that it will facilitate negotiations for enhancing trade and hence possible export markets for farm products.
Fat free lean index - One of several measures of hog quality (in this case, leanness) that can be used in determining value. The index was developed by the National Pork Producers Council, an industry trade group.
Fecal coliform bacteria - Bacteria found in the intestinal tracts of mammals. Their presence in water or sludge is an indicator of pollution and possible contamination by pathogens.
Fed cattle - Animals leaving a feedlot, after fattening on a high protein ration, that are ready to be sold to a packing plant for slaughter. Beef cattle are typically sold to packers at about 1,100 pounds, which yields a carcass weight of about 660 pounds.
Federal Agricultural Mortgage Corporation - An organization more commonly referred to as Farmer Mac, which is a secondary (resale) market for agricultural mortgages. Farmer Mac was authorized by the Agricultural Credit Act of 1987.
Federal Agriculture Improvement and Reform Act of 1996 (FAIR) - P.L. 104-127 (April 4, 1996) was the omnibus 1996 farm bill that removed the link between income support payments and farm prices. It authorized 7-year production flexibility contract payments that provide participating producers with fixed government payments independent of current farm prices and production. The law specified the total amount of money to be made available through contract payments under production flexibility contracts for each fiscal year from 1996 through 2002. Payment levels were allocated among contract commodities according to specified percentages, generally derived from each commodity’s share of projected deficiency payments for fiscal 1996-2002. The law increased planting flexibility by allowing participants to plant 100% of their total contract acreage to any crop,
except with limitations on fruits and vegetables. The authority for acreage reduction programs was eliminated, while nonrecourse loans (with marketing loan repayment provisions) were continued in a modified form. Minimum loan rates generally were calculated each year at 85% of recent past market prices. Authority for the Farmer-Owned Reserve Program was suspended through the 2002 crop year. Authority for the honey program was eliminated. Dairy price supports were phased down for milk over 4 years and then eliminated. A new recourse loan program was initiated for dairy products starting in the year 2000. The peanut program was continued but revised to reduce the likelihood of the federal government incurring loan program costs due to loan forfeitures. The minimum national poundage quota was eliminated. The sugar program also was continued but modified. Trade and food aid programs were reoriented toward greater market development, with increased emphasis on high-value and value-added products. Other provisions established a Commission to conduct a comprehensive review of changes to production agriculture under the 1996 Act, required USDA to
conduct research on futures and options contracts through pilot programs, capped expenditures for the Export Enhancement Program, and changed the name of the Market Promotion Program to the Market Access Program. The 1996 Act also reauthorized the Food Stamp Program for 2 years and commodity donation programs for 7 years, and established a Fund for Rural America to augment existing resources for agricultural research and rural development. Other research authorities were revised and extended, some only for 2 years rather than 7 years. The 1996 Act authorized new enrollments in the Conservation Reserve Program to maintain total acreage at up to 36.4 million acres. Other conservation programs were also revised and extended. The Act also contained numerous provisions in the areas of farm credit, rural development, and generic commodity promotion through check-off programs, among others.
Federal crop insurance - A voluntary risk management tool, available to
farmers since the thirties, that protects them from the economics
effects of unavoidable adverse natural events. Administrative costs
are appropriated by the Congress and 30 percent of the insurance
costs are federally subsidized.
Federal Crop Insurance Corporation (FCIC) - The wholly owned federal corporation within USDA that administers the federal crop insurance program. The FAIR Act of 1996 created an Office Of Risk Management (which USDA has renamed the Risk Management Agency), which houses the FCIC.
Federal Crop Insurance Reform Act of 1994 - This Act is Title I of P.L. 103-354 (October 4, 1994). Beginning with the 1995 crops, it modifies the federal crop insurance program by authorizing a new catastrophic (CAT) coverage level available to farmers. The premium on this level of coverage (crop losses in excess of 50% receiving a payment of 60% of the market price of the insured crop) is 100% subsidized by the government, but requires a farmer to pay a $50 per crop per county administrative fee. The Act allows farmers to purchase additional insurance coverage providing higher yield or price protection levels, with the premium on this buyup coverage partially subsidized by the government. The Act also creates the Noninsured Assistance Program
(NAP), a permanent disaster payment program for crops not covered by crop insurance. The 1994 Act amends and in many cases suppresses major portions of the Federal Crop Insurance Act of 1980 (P.L. 96-365, September 26, 1980) which serves as the authorizing statute for the federal crop insurance program. The 1980 Act expanded the scope of the crop insurance program and permitted USA to subsidize farmer premium payments.
Federal Farm Credit Banks Funding Corporation (FFCBFC) - An entity within the Farm Credit System (FCS) that manages and coordinates the sale of system-wide bonds and notes in the national financial markets. Since the FCS, by law, is not permitted to accept customer deposits, these bonds and notes are the FCS’s primary source of loanable funds.
Federal Food, Drug, and Cosmetic Act (FFDCA) of 1938 - P.L. 75-717 (June 25, 1938) is the basic authority intended to ensure that foods are pure and wholesome, safe to eat, and produced under sanitary conditions; that drugs and devices are safe and effective for their intended uses; that cosmetics are safe and made from appropriate ingredients; and that all labeling and packaging is truthful, informative, and not deceptive. The Food and Drug Administration is primarily responsible for enforcing the FFDCA, although USDA also has some enforcement responsibility. The Environmental Protection Agency establishes limits for concentrations of pesticide residues on food under this Act.
Federal grain inspection program - The grain inspection program administered by the Grain Inspection, Packers and Stockyards Administration. The program establishes official U.S. standards for grain and certain other commodities such as rice, hops, and processed grain products. The program offers a user-financed nationwide inspection and weighing system to certify that grain meets approved standards. By law, all grain exported from the United States must be officially inspected.
Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) - The federal government began regulating pesticides in 1910 for the purpose of preventing the exploitation of farmers from adulterated and ineffective products. The original 1947 FIFRA was the first effort to address potential risks to human health. FIFRA was completely revised in 1972 (P.L. 92-516) to become the basis for current federal policy. The law directs EPA to restrict the use of pesticides to prevent unreasonable adverse effects on people and the environment taking into account the costs and benefits of various uses. The sale of any pesticide is prohibited unless it has gone through registration and is labeled to show the approved uses and restrictions.
Federal land bank associations - Local farmer-owned organizations through which
farmers obtain long-term (up to 40 years) loans on land. The
associations are an integral part of the Farm Credit System.
Federal Land Credit Associations - Institutions within the Farm Credit System (FCS) that have authority to make long-term real estate loans to eligible retail customers. FLCAs receive their funds directly from the Farm Credit Banks.
Federal Land Policy and Management Act of 1976 (FLPMA) - P.L. 94-579 (October 21, 1976) 1) set out for the Bureau of Land Management standards for managing public land, including land-use planning, sales, withdrawals, acquisitions, and exchanges; 2) authorized local advisory councils to represent major citizens groups interested in land use planning and management; 3) established criteria for review of proposed wilderness areas; and 4) provided guidelines for other aspects of public land management such as grazing. This law is also known as the BLM "organic" act.
Federal marketing and agreements - Promote orderly marketing, a means
authorized by legislation for agricultural producers to collectively
influence the supply, demand, or price of particular commodities.
Approved by a required number of a commodity's producers -- usually
two-thirds -- the marketing order is binding on handlers of the
commodity. It may limit total marketings, prorate the movement of a
commodity to market, or impose site and grade standards.
Federal Meat Inspection Act of 1906 - Enacted June 30, 1906, as chapter 3913, 34 Stat. 674, and substantially amended by the Wholesome Meat Act 1967 (P.L. 90-201), requires USDA to inspect all cattle, sheep, swine, goats, and horses when slaughtered and processed into products for human consumption. The primary goals of the law are to prevent adulterated or misbranded livestock and products from being sold as food, and to ensure that meat and meat products are slaughtered and processed under sanitary conditions. These requirements apply to animals and their products produced and sold within states as well as to imports, which must be inspected under equivalent foreign standards. The Food and Drug Administration is responsible for all meats considered "exotic" at this time, including venison and buffalo.
Federal Noxious Weed Act - P.L. 93-629 (January 3, 1975) was adopted to prevent foreign weeds from entering and becoming established to the detriment of U.S. crops and livestock. Under this act, the Animal and Plant Health Inspection Service inspects incoming passengers, baggage, and cargo at international airports, seaports and border stations to intercept any of 2,300 listed noxious weeds before they enter the country. If a noxious weed does become established, APHIS has the authority under this act to work with federal, state, and local agencies to confine, eradicate, or control it.
Federal Plant Pest Act - P.L. 85-36 (May 23, 1957) prohibits the movement of plant pests from a foreign country into or through the United States unless authorized by USDA. The law gives USDA’s Animal and Plant Health Inspection Service broad authority to inspect, seize, quarantine, treat, destroy or dispose of imported plant and animal materials that are potentially harmful to U.S. agriculture, horticulture, forestry, and, to a certain degree, natural resources.
Federal Register (FR) - Each federal working day, this federal document publishes current Presidential orders or directives, agency regulations, proposed agency rules, notices and other documents that are required by statute to be published for wide public distribution. USDA publishes its rules, notices and other documents in the Federal Register. Final regulations are organized by agency and program in the Code of Federal Regulations.
Federal Seed Act - Originally enacted by Congress in 1939, the Act requires accurate labeling and purity standards for seeds in commerce, and prohibits the importation and movement of adulterated or misbranded seeds. The law works in conjunction with the Federal Noxious Weed Act to authorize the Animal and Plant Health Inspection Service to regulate the importation of field crop, pasture and forage, or vegetable seed that may contain noxious weed seeds.
Federal-State Marketing Improvement Program - Sometimes referred to in budget documents as Payments to States and Territories, the program provides matching funds to states for research and innovative projects aimed at identifying new market opportunities for producers or at improving the efficiency of agricultural marketing systems. The program is administered by AMS and has been funded federally at just over $1 million per year recently.
Federal Water Pollution Control Act Amendments of 1972 (FWPCA) - The original
name for what is now the Clean Water Act (CWA), which contains the
main federal law controlling water pollution. [33 U.S.C.
§§1251-1387]
Feed grain - Any of several grains most commonly used for livestock feed, including corn, grain sorghum, oats, rye, and barley. These grains and the farms producing them historically have received federal price and income support. They qualify as contract commodities and receive production flexibility contract payments.
Feed ratio - The relationship of the cost of feeding animals to their market weight, expressed as a ratio to the sale price of animals, such as the hog/corn ratio. This serves as an indicator of the profit margin or lack of profit in feeding animals to market weight.
Feeder cattle - A steer or cow mature enough to be placed in a feedlot where it will be fattened prior to slaughter. Feeder calves are less than 1 year old; feeder yearlings are between 1 and 2 years old.
Feedlot - A confined cattle feeding facility where feeder cattle (usually less than a year old) are put on higher protein rations to prepare them for slaughter as fed cattle at "good" or better grades. Commercial feedlots of 1,000 head or more are considered by the Environmental Protection Agency to be concentrated animal feeding operation (CAFO) and therefore subject to rules requiring permits setting effluent standards.
Fertilizer - Any organic or inorganic material, either natural or synthetic, used to supply elements (such as nitrogen, phosphate and potash) essential for plant growth. If used in excess or attached to eroding soil, fertilizers can become a source of water pollution.
Field gleaning - The collection of remaining crops from farmers' fields that have already been mechanically harvested or from fields where it is not economically profitable for the farmer to harvest.
Field office technical guide - A manual placed in all Natural Resources Conservation Service district offices and field service centers that gives the technical specifications and guidelines for all approved conservation practices.
Field service agency - Generally refers to any one of the following USDA agencies that administer programs and provide services to farmers and other rural residents through an extensive network of state and local offices: the Farm Service Agency, Risk Management Agency, Natural Resources Conservation Service, Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service. The Foreign Agricultural Service, because of its overseas offices, also is considered a field service agency under the Administrative Convergence plan being developed by USDA in 1998. Although other USDA agencies and mission areas also have field offices nationwide and overseas, they generally are not considered field service agencies by the Department.
Field service center - A centralized location for a variety of USDA agency field offices. These have been reduced in number from about 3,700 to about 2,600 through closures and consolidations initiated as part of a USDA reorganization and streamlining effort mandated by the Department of Agriculture Reorganization Act of 1994. In 1999, USDA was still considering the closure of some additional offices. The centers are intended to provide "one-stop shopping" for clients of the Farm Service Agency, the Natural Resources Conservation Service, and USDA’s rural development agencies.
Filter strip - An area of vegetation, generally narrow and long, that slows the rate of runoff, allowing sediments, organic matter, and other pollutants that are being conveyed by the water to be removed. Filter strips reduce erosion and the accompanying stream pollution, and can be a best management practice.
Final Act - Formally called the "Final Act Embodying the Results of the
Uruguay Round of Multilateral Trade Negotiations", the Final
Act is the legal document containing the texts of all provisions
agreed upon during the UR. The signing and adoption of the Final Act
initiate the transition from the GATT to the WTO.
Findley payments - Under the so-called Findley Provision authorized by the Food Security Act of 1985 (and first sponsored by former Congressman Paul Findley), USDA was able to reduce the basic, formula-set nonrecourse loan rate for major crops by up to an additional 20% if that was necessary to keep the United States competitive in international markets. If done, direct compensatory payments were made to producers equal to the amount of the loan rate reduction. These "Findley Payments," limited to $200,000 per person, essentially added to the larger direct deficiency payment. The Findley provisions are superseded by the marketing loan repayment provisions of the FAIR Act of 1996.
Fire ants - A South American stinging ant that has become established in southern states from North Carolina to Texas. The Animal and Plant Health Inspection Service quarantines nursery products from affected states and conducts research to find promising biological control agents in South America that could be imported to combat the pest in the United States.
First handler -
Shellers, warehouses, or independent dealers, registered with USDA,
that provides cleaning, drying, inspection, grading, and marketing
services.
Fish and Wildlife (FWS) - FWS, in the Department of the Interior, is the federal agency charged with managing and protecting the nation’s wild plants and animals, including endangered and threatened species. It generally works closely with state agencies, which have management primacy for most species. (The federal government has assumed responsibility for marine mammals, migratory birds, and endangered and threatened species). It manages the National Wildlife Refuge System, and cooperates with private landowners in habitat conservation.
Fish farming - Usually, freshwater commercial aquaculture; catfish farms are an example.
Flex acreage - The Omnibus Budget Reconciliation Act of 1990 mandated that deficiency payments not be made on 15% of a farm’s crop acreage base, called normal flex acres. The acreage could be planted to any program crop (called flexing), but not fruits and vegetables. An additional 10% of the farm’s base acreage could be flexed at the option of the operator. Flexing did not diminish the crop acreage base of a farm. The FAIR Act of 1996 effectively provides total flexibility among all commodities, except for fruits and vegetables.
Flood plains - Lowland and relatively flat areas adjoining inland and coastal
waters, including floodprone areas of islands. This land includes,
at a minimum,, those areas that are subject to a 1 percent or
greater chance of flooding in any given year.
Flood risk reduction program - Provides for contracts for producers on farms that have contract acreage under Title I of the FAIR Act of 1996 that are frequently flooded. Individuals can receive up to 95% of transition payments and projected crop insurance payments in lieu of market transition payments. In return, producers must comply with swampbuster and conservation compliance provisions and forego future conservation program payments and disaster payments. Though authorized, this program has not yet been implemented.
Flow to market - A quantity provision in a fruit or vegetable marketing order that does not change the total quantity that can be marketed during a season, but rather controls the rate or time period that quantities can be shipped to markets by means of shipping holidays and prorates.
Flue-cured tobacco - A type of cigarette tobacco, it and burley tobacco account for more than 90% of U.S. tobacco production. Flue-cured tobacco production is limited by national marketing quotas and acreage allotments, and is eligible for nonrecourse price support loans. Flue-cured production is centered in North Carolina.
Fluid differential - In federal milk marketing orders, the Class I differential is the amount added to the basic formula price to determine a region’s minimum price for milk used for fluid (drinking) purposes.
Fluid Milk Promotion Act of 1990 - This is the designation given to Subtitle H of Title XIX of the Food, Agriculture, Conservation, and Trade Act of 1990. Subtitle H authorized the establishment of a national milk processor check-off program for fluid milk promotion. The program is funded through a 20-cent per hundredweight (cwt.) assessment on all milk processed for fluid consumption. The Act required USDA to conduct a referendum among fluid milk processors to determine if a majority favored implementing the program. The Fluid Milk Order was approved by processors and became effective December 10, 1993.
Fluid Milk Processor Promotion Program - A national program authorized by the Fluid Milk Promotion Act of 1990 (Fluid Act) with the purpose of increasing consumption of milk and dairy products and reducing milk surpluses by developing generic advertising programs. The program is funded by a mandatory 20-cent per hundredweight assessment on processors for all fluid milk processed in the contiguous 48 states and marketed commercially. The program is administered by the National Fluid Milk Processor Promotion Board. It should not be confused with the dairy farmer funded Dairy Promotion Program. The FAIR Act of 1996 extends the Fluid Milk Promotion Program through 2002.
Foliar nutrient - Any liquid substance applied directly to the foliage of a growing plant for the purpose of delivering an essential nutrient in an immediately available form.
Food additives - Any substance or mixture of substances other than the basic foodstuff present in a food as a result of any phase of production, processing, packaging, storage, transport or handling. USDA allows food additives in meat, poultry and egg products only after they have received Food and Drug Administration safety approval. Food additives are regulated under the authority of the Federal Food Drug and Cosmetic Act and are subject to the Delaney Clause.
Food, Agriculture, Conservation, and Trade Act of 1990 (FACT) - P.L. 101-624 (November 28, 1990) was a 5-year omnibus farm bill. It continued to move agriculture in a market-oriented direction by freezing target prices and allowing more planting flexibility. New titles included rural development, forestry, organic certification, and commodity promotion programs. The law established a Rural Development Administration (RDA) in the USDA to administer programs relating to rural and small community development. It extended and modified the Food Stamp Program and other domestic nutrition programs and made major changes in the operation of P.L. 480. It revised existing law involving agricultural trade credits and guarantees. The FACT Act was soon altered by the Food, Agriculture, Conservation, and Trade Act Amendments of 1991 (P.L. 102-237) to correct errors and alleviate problems in implementing the law. The amendments allowed the Farm Credit Bank for Cooperatives to make loans for agricultural exports and established a new regulatory scheme and capital standards for the Federal Agricultural Mortgage Corporation (Farmer Mac). The law also established new handling requirements for eggs to help prevent food-borne illness. More policy changes were made by the Omnibus Budget Reconciliation Act (OBRA) of 1993 (P.L. 103-66). This law intended to reduce federal farm spending by $3 billion over 5 years by eliminating USDA’s authority to waive minimum acreage set-aside requirements for wheat and corn, reducing deficiency payments to farmers participating in the 0/92 and 50/92 programs from 92% to 85% of the normal payment level, reducing the acreage to be enrolled in the Conservation Reserve Program and Wetlands Reserve Program, and requiring improvement in the actuarial soundness of the federal crop insurance program. The measure also provided for a temporary moratorium on sales of synthetic bovine
growth hormone and reduced the loan rate for soybeans. It reduced Market Promotion Program (MPP) funding through fiscal 1997 and provided for a series of significant MPP operational reforms. It also provided, among other provisions, for the designation of a series rural (and urban) empowerment and enterprise zones, eligible for special federal aid and tax credits.
Food Aid Consultative Group - A group created by the FACT Act of 1990 to review and address issues concerning the effectiveness of regulations and procedures that govern U.S. food aid programs. The FAIR Act of 1996 extended the authority for the Food Aid Consultative Group through 2002.
Food and Agricultural Act of 1965 - P.L. 89-321 (November 3, 1965) was the first multi-year farm legislation, providing for 4-year commodity programs for wheat, feed grains, and upland cotton. It was extended for 1 more year, through 1970, by enactment of P.L. 90-559. It authorized a Class I milk base plan for the 75 federal milk marketing orders and a long-term acreage diversion under a Cropland Adjustment Program. The law also continued payment and acreage diversion programs for feed grains and cotton, and certificate and diversion programs for wheat.
Food and Agriculture Act of 1977 - P.L. 95-113 (September 9, 1977) was an omnibus farm bill. It increased price and income supports and established a farmer-owned reserve for grain. It also established a new two-tiered pricing program for peanuts. Under the peanut program, producers were given an acreage allotment on which a poundage quota was set. Growers could produce in excess of their quota, within their acreage allotment, but would receive the higher of the two price-support levels only for the quota amount. Peanuts in excess of the quota are referred to as "additionals." Title XIII was designated the Food Stamp Act of 1977 and replaced the original 1964 Act with a new law making significant changes, including the elimination of the purchase requirement and simplification of eligibility requirements. Title XIV was designated the National
Agricultural Research, Extension, and Teaching Policy Act and made USDA the leading federal agency for agricultural research, extension, and teaching programs. It also consolidated the funding for these programs.
Food and Agriculture Councils (FACs) - These councils were instituted in 1982 by USDA to function as interagency coordinating groups on three levels: national, state, and local. The state FACs are composed of senior level officials of individual USDA agencies within each state, and in recent years they have played a major role in managing the reorganization and "downsizing" of USDA’s field office structure. Local FACs have consisted of USDA representatives at county or area-wide levels; and a national FAC at USDA’s Washington headquarters has served as a liaison with the state and local FACs.
Food and Agriculture Organization of the United Nations (FAO) - A UN organization, founded in 1945, that collects and disseminates information about world agriculture. FAO also provides technical assistance to developing countries in agricultural production and distribution, food processing, nutrition, fisheries, and forestry. The FAO’s Global Information Early Warning System (GIEWS) monitors for famine conditions in regions of risk.
Food and Drug Administration (FDA) - An agency within the Public Health Service of the Department of Health and Human Services. FDA is a public health agency, charged with protecting consumers by enforcing the Federal Food, Drug, and Cosmetic Act and several related public health laws. Importantly for agriculture, a major FDA mission is to protect the safety and wholesomeness of food. In this regard, its scientists test samples to see if any substances, such as pesticide residues, are present in unacceptable amounts, it sets food labeling standards, and it sees that medicated feeds and other drugs given to animals raised for food are not threatening to the consumer’s health.
Food and fiber system - That sector of the U.S. economy that includes agricultural production and all economic activities supporting or utilizing that production, including farm machinery and chemical production, and processing, manufacturing, transportation, and retailing. In 1995, the food and fiber system employed 22.9 million workers, or 17.3% of the U.S. workforce, and accounted for $983 billion, or 13.5% of the gross domestic product.
Food and Nutrition Service (FNS) - The USDA agency whose goals are to provide needy people with access to a more nutritious diet, to improve the eating habits of the nation’s children, and to stabilize farm prices through the distribution of surplus foods. It administers 15 domestic food assistance programs (including the food stamp program, child nutrition programs (e.g., school feeding programs), and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC)). FNS works in partnership with the states and reimburses most of the administrative costs the states incur for carrying out local program administration.
Food-borne illnesses - Illnesses caused by pathogens that enter the human body where food is the carrier. In order of the incidence of cases, the leading pathogens are Campylobacter (bacteria commonly found in poultry), Salmonella (bacteria commonly found in poultry, eggs, meat, and milk), Shigella (bacteria transmitted through direct contact with an infected person, or from food or water contaminated by an infected person), E. coli 00157 (bacteria often found in cattle and transmitted through undercooked, contaminated ground beef), Yersinia (cause of diarrheal illness known to be most frequently associated with undercooked pork), Listeria (bacteria found in a variety of raw food, such as uncooked meats and vegetables, as well as in processed foods that
become contaminated after processing), Vibrio (bacteria that can cause disease in those who eat
contaminated seafood or have an open wound that is exposed to seawater).
Food Code - The code, published by the Food and Drug Administration, consists of model requirements for safeguarding public health that may be adopted and used by various parts of local, state, and federal governments, if desired. It is used by officials who have compliance responsibilities for food service, retail food stores, or food vending operations.
Food Distribution Program on Indian Reservations (FDPIR) - This program allows Indian Tribal Organizations to operate a food distribution program as an alternative to the food stamp program for those living on or near an Indian reservation. Eligibility for benefits is the same as that for the food stamp program and funds for the program are drawn from food stamp appropriations. Foods contained in packages include frozen and/or canned meats and poultry, canned fruits and vegetables and juices, dry cereals, cornmeal, flour, butter, macaroni, cheese, evaporated and nonfat dry milk, oats, peanuts and peanut butter, shortening and oils.
Food donations to charitable institutions, soup kitchens, and food banks - Donations of food by the Commodity Credit Corporation to help provide meals to needy people. Foods donated are from agricultural surpluses acquired by USDA as part of its price stabilization and surplus removal activities. Eligible charitable groups range from churches operating community kitchens for the homeless to orphanages and homes for the elderly. Other eligible groups include meals-on-wheels programs, soup kitchens, temporary shelters, correctional institutions offering rehabilitative activities, group homes for the mentally retarded, and hospitals that offer general and long-term health care.
Food for Peace Program - A label given to the food donation activities carried out overseas under P.L. 480.
Food for Progress Program (FPP) - A food aid program originally authorized by the Food Security Act of 1985 to provide commodities on credit terms or on a grant basis to developing countries and emerging democracies to assist in the introduction of elements of free enterprise into the countries’ agricultural economies. Commodities may be provided under authority of P.L. 480 (Title I) or Section 416(b); the CCC may purchase commodities for use in Food for Progress if the commodities are currently not held in CCC inventories. The FAIR Act of 1996 extends authority for the FPP through 2002.
Food guide pyramid - A graphic developed by USDA as the consumer guide to implementing the dietary guidelines in their own food choices. It consists of a six food groups and suggests the foods and number of servings from each group that should be consumed daily. At the bottom is the grains group, of which 6-11 servings should be consumed daily. The next level up contains the vegetable group (3-5 servings) and the fruits group (2-4 servings). The third level contains the dairy group (2-3 servings) and the protein group (2-3 servings). At the top of the pyramid is the group that should be eaten sparingly, which includes fats, oils and sweets. USDA published a Kids’ Food Pyramid in the spring of 1999.
Food grain -
Cereal seeds most commonly used for human food, chiefly wheat and
rice.
Food insecurity - Life Sciences Research Office (LSRO) defines food insecurity as when the availability of nutritionally adequate and safe foods in socially acceptable ways is limited or uncertain.
Food Insecurity and Vulnerability Information Mapping System (FIVIMS) - An interagency initiative that aims to bring together data from various sources into one information system, reflecting key food-security indicators at the national, regional and household levels. These systems will indicate the areas and populations affected by or at risk of hunger and malnutrition - the elements contributing to food insecurity. Five basic classes of indicators were recommended for use: income and income sources, food production, food prices, income distribution and impoverishment.
Food package - Generally refers to foods contained in the package of specific items provided to those participating in the WIC program or CSFP. Also may refer to foods distributed by food banks and pantries, and by Indian Tribal agencies distributing commodities in lieu of food stamps.
Food pantry - A service that collects and distributes unprepared food and grocery products to the needy.
Food power - The act of withholding or making available agricultural commodities for export or aid by an exporting nation or group of nations for the purpose of influencing the actions of another country or group of countries. Food power implies a foreign policy motivation rather than a financial or humanitarian motivation to export activities.
Food recovery - The collection of wholesome food for distribution to the poor and hungry. This includes field gleaning; perishable food rescue or salvage; the collection of perishable produce from wholesale and retail sources; food rescue, the collection of prepared foods from the food service industry; and nonperishable food collection, the collection of processed foods with long shelf lives.
Food safety initiative - A 1997 interagency initiative among the Food and Drug Administration, Center For Disease Control, Environmental Protection Agency, and U.S. Department of Agriculture to implement a series of coordinated efforts to reduce the annual incidence of food borne illness and resultant economic losses to consumers and industry by enhancing the safety of the U.S. food supply.
Food Safety and Inspection Service (FSIS) - A 10,000 employee agency within USDA responsible for ensuring food safety in some 6,400 meat and poultry plants throughout the United States; the agency also certifies the safety programs operated for state and foreign plants. Most food safety inspection costs are borne by taxpayers rather than the industry, in contrast to user fees for inspection and grading related to marketing standards.
Food security - Access by all people at all times to enough food for an active healthy life. Food security at a minimum includes the ready availability of nutritionally adequate and safe food, and an assured ability to acquire acceptable foods in socially acceptable ways, that is, without having to resort to emergency food supplies, scavenging, stealing, or other coping strategies. The World Food Summit, convened in Rome in November 1996 by the Food and Agriculture Organization of the United Nations, estimated that 800 million people worldwide do not have enough food to meet their basic nutritional needs. Representatives of the more than 180 nations attending the Summit pledged to work to reduce this number by half by no later than 2015. Causes of food insecurity may include poverty, civil conflict, governmental corruption, environmental degradation, and natural disasters. A U.S. position paper on international (world) food security, released in October 1997, argues that food security also requires "...social and economic conditions which empower individuals to gain access to food, either by producing food themselves or earning income to buy food."
Food Security Act of 1985 - P.L. 99-198 (December 23, 1985), a 5-year omnibus farm bill, allowed lower commodity price and income supports and established a dairy herd buyout program. Changes were made in a variety of other USDA programs. Several enduring conservation program were created, including sodbuster, swampbuster, and the Conservation Reserve Program. Shortly after enactment, the Technical Corrections to Food Security Act of 1985 Amendments (P.L. 99-253, February 28, 1986) gave USDA discretion to require cross-compliance for wheat and feed grains instead of mandating them, changed acreage base calculations, and specified election procedures for local Agricultural Stabilization and Conservation committees. Technical changes and other modifications were enacted by the Food Security Improvements Act of 1986 (P.L. 99-260, March 20, 1986), including limiting the non-program crops that could be planted under the 50/92 provision, permitting haying and grazing on diverted wheat and feed grain acreage for a limited period in regions of
distress, and increasing deductions taken from the price of milk received by producers to fund the dairy termination program (also called the whole herd buyout) program. Again in 1986, the Omnibus Budget Reconciliation Act (P.L. 99-509) made changes in the 1985 Act requiring advance deficiency payments to be made to producers of 1987 wheat, feed grains, upland cotton, and rice crops at a minimum of 40% for wheat and feed grains and 30% for rice and upland cotton. The 1985 Act also amended the Farm Credit Act of 1971. Further commodity program changes were made in the FY1987 agricultural appropriations bill (P.L. 99-591, October 30, 1986). In addition to its funding provisions, P.L. 99-591 set the annual payment limitation at $50,000 per person for deficiency and paid land diversion payments, and included honey, resource adjustment (excluding land diversion), disaster, and Findley payments under a $250,000 aggregate payment limitation. Once again, the Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203) not only set the 1988 fiscal year
budget for agriculture and all federal agencies, but also set target prices for 1988 and 1989 program crops, established loan rates for program and non-program crops, and required a voluntary paid land diversion for feed grains. P.L. 100-203 further defined who could receive farm program payments by defining a "person" in terms of payment limitations.
Food Security Advisory Committee - A Federal advisory committee established as a subcommittee on the Board on International Food and Agricultural Development (BIFAD) to provide private sector and civil society support to the Interagency Working Group on Food Security.
Food Security Commodity Reserve - A special reserve of up to 4 million metric tons of wheat, corn, sorghum, and rice to be used for international humanitarian purposes. This reserve created by the FAIR Act of 1996 is an expansion and replacement of the Food Security Wheat Reserve established by the Agriculture Act of 1980. The reserve is to be used to provide famine relief and other emergency relief when commodities are not available for programming under P.L. 480.
Food Security Wheat Reserve (FSWR) - Title III of the Agriculture Act of 1980 established a reserve of up to 4 million metric tons of wheat for use in meeting emergency food needs in developing countries. This reserve generally was to be used to meet famine or other urgent or extraordinary relief requirements during periods of tight supplies and high prices when commodities are not available under the provisions of P.L. 480. The FSWR was replaced by the Food Security Commodity Reserve under the FAIR Act of 1996.
Food Service Management Institute - This institute provides instruction, research, and materials in support of better food service management practices by child nutrition providers receiving federal support (e.g., schools operating school meal programs). It is permanently authorized under Section 21 of the National School Lunch Act, with an annual entitlement funding level of $3 million.
Food Stamp Act of 1964 - P.L. 88-525 (August 31, 1964) provided permanent legislative authority to the Food Stamp Program, which had been administratively implemented on a pilot basis in 1962. It was later replaced and completely rewritten and revised by the food stamp provisions of the Food and Agricultural Act of 1977 (Title XIII), which eliminated the purchase requirement and simplified eligibility requirements. Amendments were made to this Act in 1981-82, 1984-85, 1988, 1990, and 1994. Most recently, the 1996 omnibus welfare reform law (the Personal Responsibility and Work Opportunity Reconciliation Act, PRWORA) incorporated the most extensive changes to the food stamp program since the 1977 rewrite of the law. This was followed by more changes including the 1997 Balanced Budget Act (P.L. 105-33) and the 1998 agricultural, research, extension,
and education reform law (P.L. 105-185). The current Food Stamp Act includes authority through FY2002 for the regular food stamp program, for nutrition assistance grants to Puerto Rico and American Samoa (in lieu of food stamps), and for commodity purchases for the emergency food assistance program.
Food Stamp Program - This program supplements the food buying power of eligible low-income households by providing them with monthly benefits through coupons or electronic benefit transfer (EBT) cards. Eligibility is governed primarily by a household’s financial resources (e.g., income eligibility generally is limited to those with total cash income below 130% of the federal poverty guidelines). However, applicants and recipients also must meet some non-financial requirements — e.g., the eligibility of noncitizens is limited, work requirements are imposed on most adults. In general, benefits may be used to purchase any food item for home consumption in an approved food concern. The regular food stamp program operates in the 50 states, the District of Columbia, Guam, and the Virgin Islands. Variants of the regular program (funded through nutrition
assistance grants) operate in Puerto Rico, American Samoa, and the Northern Marianas. Food stamps and nutrition assistance grants are administered by the Food and Nutrition Service and are funded as entitlements by annual agriculture appropriations acts.
Food borne pathogens - Disease-causing microorganisms found in food, usually bacteria, fungi, parasites, protozoans, and viruses. The top ten pathogens are: Salmonella; Staphylococcus Aureus; Campylobacter jejuni; Yersinia enerocolitica; Listeria monocytogenes; Vibrio cholerae non-01; Vibrio Parahemolyticus; Bacillus cereus; Escherichia coli - enteropathogenic; and Shigella. Many of these pathogens may be found in contaminated meat, poultry, shell eggs, dairy products, and seafood.
Foot-and-mouth disease (FMD) - A major disease of cloven-footed animals (e.g., cattle and pigs) that does not exist in the United States. The Animal and Plant Health Inspection Service conducts a surveillance program to track the disease in foreign countries, regulates the importation of animal products from countries where FMD exists, and tests imported animals in quarantine.
Forage - Vegetable matter, fresh or preserved, that is gathered and fed to
animals as roughage includes alfalfa hay, corn silage, and other hay
crops.
Forage value index (FVI) - A derived index of the relative change in the previous year’s average monthly rate per head for pasturing cattle on privately owned land in the West. Used in calculating federal grazing fees.
Foreign Agricultural Service (FAS) - The USDA agency that administers agricultural export and food aid programs. FAS is also responsible for formulating agricultural trade policy, negotiating to reduce foreign agricultural trade barriers, and carrying out programs of international cooperation and technical assistance. The agency maintains a global network of agricultural officers (counselors and attaches) as well as a Washington-based staff to analyze and disseminate information on world agriculture and trade, develop and expand export markets, and represent the agricultural trade policy interests of U.S. producers in multilateral forums.
Forest and Rangeland Renewable Resources Planning Act of 1974 (RPA) - Provides authority to the Forest Service to prepare and update an assessment every 10 years to inventory and monitor the status and trends of the forest lands and range lands in the National Forest System, and to prepare a long-range plan every 5 years to guide Forest Service policies.
Forest health - A term used for a collection of concerns over the alleged deterioration in forest conditions, including both current problems (e.g., insect and disease infestations, wildfires, and related tree mortality) and risks of future problems (e.g., too many small-diameter trees (overstocking), excessive biomass, and an unnatural mix of tree species in mixed stands).
Forest plans - Land and resource management plans for units of the National Forest System under the National Forest Management Act. The Act specifies a detailed process and numerous requirements, including public participation and periodic revision, intended to achieve multiple use in the national forests.
Forest Service (FS) - The largest USDA agency in terms of employees (about 37,000) with responsibility for administering the National Forest System, for providing financial and technical forestry assistance to states and to private landowners under State and Private Forestry, and for conducting Forestry Research.
Forestland - A classification of land use in the Natural Resources Inventory (NRI). It includes areas where trees cover at least 10% of the land and must be at least an acre in size. Forestland was found on 395 million acres, almost 30% of all private lands, in the 1992 NRI.
Forestry Incentive Program (FIP) - Initiated in 1975 as an independent program and currently administered by the Natural Resources Conservation Service, FIP provides financial assistance for up to 65% of the cost of tree planting and timber stand improvement on private forest stands of less than 1,000 acres. Payments are limited to $10,000 per year. More than 4,500 forest owners with 165,000 acres participated in 1995. The program now is authorized under the Cooperative Forestry Assistance Act of 1978, as amended.
Forfeiture penalty (sugar) - A penalty paid to the Commodity Credit Corporation by a processor of sugar beets or sugarcane who, having taken out a nonrecourse loan, decides to hand over sugar pledged as collateral to the CCC rather than accept the then-market price (see loan forfeiture). The penalty is 1 cent/lb. on raw cane sugar, 1.072 cents/lb. on refined beet sugar. Some view this penalty as lowering the price support levels authorized by the FAIR Act of 1996 by the penalty amount (i.e., for raw cane sugar, from 18 cents/lb. to 17 cents/lb.).
Formula-based tariff reductions - A method of negotiating tariff reductions using an
agreed-upon formula applied to tariff rates (with limited exceptions
being granted for very sensitive items) by all contracting parties.
Formula funds - Federal dollars distributed to the land grant colleges of agriculture through formulas found in the Hatch Act, the Smith-Lever Act, the McIntire-Stennis Act, and the Evans-Allen Act for (1) agricultural research at the state agricultural experiment stations, (2) extension programs and (3) forestry research at the land grant colleges of agriculture, and (4) research at the 1890 institutions, respectively.
Formula pricing - An arrangement where a buyer and seller agree in advance on the price to be paid for a product delivered in the future, based upon a pre-determined calculation. For example, a packer might agree to pay a hog producer the average cash market price on the day the hogs will be delivered, plus a 2-cent per-pound premium. Such transactions have been used widely in agriculture, particularly for livestock. Users believe that formula pricing brings efficiency and predictability to market transactions. However, as the use of formula pricing expands, fewer animals are sold in cash markets, where prices are more widely reported and understood by producers. Some of these producers believe that formula pricing makes it harder to determine
the true value of their animals in the marketplace, and creates greater opportunity for buyers to manipulate and pay lower prices.
Forward contract - A cash transaction common in many industries, including agricultural commodity merchandising, in which a commercial buyer and seller agree upon delivery of a specified quality and quantity of goods at a specified future date. A price may be agreed upon in advance, or there may be agreement that the price will be determined at the time of delivery. Forward contracts, in contrast to futures contracts, are privately negotiated and are not standardized.
Forward market - This refers to informal (non-exchange) trading of commodities to be delivered at a future date. Contracts for forward delivery are "personalized" (i.e., delivery time and amount are determined between seller and customer).
Forward selling - Forward contracting in which the price is fixed at the time the contract is entered.
Four-firm ratio - It is common to express the degree of concentration within an industry, including agriculture (that is, the degree to which a few firms dominate sales or production) as a ratio, by stating the share (%) held by the top four firms.
Framework Convention on Climate Change (FCCC) - A 1992 United Nations agreement in which signatory nations recognized the problem posed by climate change. They also agreed to the objective of stabilizing greenhouse gases in the atmosphere at a level that is not dangerous, and committed to doing this soon enough to ensure that food production is not threatened by changing climates.
Free on board (F.O.B. or f.o.b.) - Indicates that the seller assumes all responsibilities and costs up to the specific point or stage of delivery named including transportation, packing, insuring, etc. A wide variety of f.o.b. terms is used, such as f.o.b. factor Detroit, f.o.b. cars New York, f.o.b. ship Norfolk. "Free on board vessel," under most P.L. 480 grain contracts, means delivery at the discharge end of the loading spout.
Free lunch (or breakfast, snack, or milk) - Refers to a federally subsidized meal (or snacks or half-pint of milk) that is offered under a child nutrition program at no cost to children who apply for and whose family income qualifies them for it. Income eligibility for free meals is set at 130% or less of the federal poverty income level, and substantially higher subsidies generally are provided for these meals than for paid meals, or reduced price meals.
Free market - A system in which the market forces of supply and demand determine prices and allocate available supplies, without government intervention. The concept of a free-market approach in agricultural policy, in its purest form, is no government price and income support programs, supply management programs, export subsidies, or barriers to international trade.
Free rider - In agricultural policy, the term generally refers to a firm or person who benefits from a collectively funded activity (such as a generic advertising and promotion, or check-off, program) without contributing to its costs.
Free stocks - Commodity stocks owned by farmers or others in the trade, rather than by those owned or controlled by the government. (Supplies in the Food Security Commodity Reserve are government-controlled and not considered free stocks.).
Free Trade Area - A group of countries that have removed trade barriers among the members, but each country may maintain its own trade regime with nonmember countries. The best known current example is the North American Free Trade Agreement (NAFTA).
Free Trade Agreement of the Americas (FTAA) - A proposed multilateral agreement that would establish free trade in all products, including agricultural products, for all the countries of the Western Hemisphere, except Cuba. Launched at the Summit of the Americas in Santiago, Chile, in March 1998, the negotiations to establish the FTAA are expected to be completed by 2005.
Freedom-to-farm - A phrase that was used in the congressional arena to characterize the production flexibility contract provisions of the FAIR Act of 1996.
Full-cost water - An annual rate for water delivered from Bureau of Reclamation facilities, which includes project construction costs attributed to irrigation, as well as outstanding deficits on operation and maintenance charges, with interest on both accruing from October 12, 1982. The term is defined in Section 202 of the Reclamation Reform Act of 1982. The Bureau charges full-cost for water delivered to lands above the acreage limitation.
Fumigant - A vaporized pesticide used to control pests in soil, buildings and greenhouses, and chambers holding products such as fruits to be treated. Methyl bromide is an example.
Fumonosin - A mycotoxin that can cause liver and brain damage in horses.
Fund for Rural America - A fund established by the FAIR Act of 1996 to augment existing resources for agricultural research and rural development through an annual transfer of funds from the U.S. Treasury to USDA. One-third of the fund is designated for competitive agricultural research grants, one-third for rural development projects, and one-third for either research or rural development, at the Secretary’s discretion. The FAIR Act authorized the U.S. Treasury to transfer $100 million annually to the Fund for 3 years. The Agricultural Research, Extension, and Education Reform Act of 1998 extended the authority for the program through FY2003 with an
annual transfer to USDA of $60 million. However, the omnibus appropriations act for FY1999 (P.L. 105-277, October 21, 1998) prohibited the expenditure of the $60 million for Fund grants and projects.
Fungibility - The characteristic of interchangeability. Bulk commodities are generally described as fungible, whereas those with special characteristics may be marketed as identity preserved. Futures contracts for the same commodity and delivery month are fungible due to their standardized specifications for quality, quantity, delivery date and delivery locations.
Fungicide - Any pesticide used to control, deter, or destroy fungi, which are forms of plant life (including molds and yeasts) that lack chlorophyll and are unable to make their own food (such as the plant pathogen, powdery mildew).
Furrow irrigation - Small, shallow channels guide water across the surface of a leveled field. Crops are typically grown on a ridge or raised bed between the furrows. This is the major irrigation system that is based on gravity.
Future Farmers of America (FFA) - An organization for high school students
studying vocational agriculture.
Futures contract - A standardized agreement calling for deferred delivery of a commodity, or its equivalent, entered through organized futures exchanges. Most agricultural futures contracts call for physical delivery, but feeder cattle futures contracts call for cash settlement at contract maturity. In fact, contracts are usually liquidated before delivery. Traders are classified as hedgers or speculators. The FAIR Act of 1996 requires USDA to conduct research through pilot programs to determine if futures and options contracts can provide producers with reasonable protection from the financial risks of fluctuations in price, yield, and income inherent in the production and marketing of agricultural commodities.
Futures price - (1) Commonly held to mean the price of a commodity for future delivery that is traded on a futures exchange. (2) The price of any futures contract.