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Federal price and income support programs do not directly cover
fruit and tree nuts. Some outlays, however, stem from a variety
of general, non-crop specific programs, including:
- Federal production assistance programs such as Federal crop
insurance, the Noninsured Crop Disaster Assistance Program, and
western irrigation subsidies;
- Export programs, such as the Market Access Program (MAP), include
several fruit and tree nuts;
- Federal food purchase programs, such as the School Lunch Program,
also include fruit and tree nuts;
- Federal Marketing Orders; and
- A federally sanctioned national research and promotion program
in place for cultivated blueberries, Hass avocadoes, and mangos.
  
Commercial fruit and tree nut growers always
face production or yield risk, mostly associated with
adverse weather, and federal assistance is provided through
ad hoc (or emergency) federal disaster assistance and
Federal crop insurance. Congress periodically has provided
ad
hoc disaster assistance that encompasses fruit and
tree nut production. During the 2000s, ad hoc disaster
assistance included assistance for some fruit and tree
nut producers. Crop insurance is obtained prior to the
growing season and provides an indemnity payment if the
farmer's actual yield falls below a predetermined guarantee.
Although crop insurance is not free to farmers, the government
subsidizes a significant portion of the cost.
USDA's Risk Management Agency
(RMA) also has pilot programs
in selected counties for newly developed insurance programs. Most
operate for 2 to 3 years before conversion to permanent status.
Pilot programs currently in place for fruit include: California
avocados, Florida avocados,
cherries, California citrus, Florida fruit trees, Hawaii tropical fruit, Hawaii tropical trees, and strawberries. A pilot program is also in place
for pecans.
The Market
Access Program, administered by USDA's Foreign Agricultural
Service, uses funds from USDA's Commodity Credit Corporation to
help U.S. producers, exporters, private companies, and other trade
organizations finance activities such as consumer promotions, market
research, technical assistance, and trade servicing for agricultural
products.
Marketing orders,
administered by the USDA's Agricultural Marketing Service (AMS),
are designed to collectively solve instability within fruit and
vegetable markets. That goal is accomplished by enforcing product
quality standards, regulating the flow of product to the market,
standardizing packages and containers, creating reserve pools for
storable commodities, and authorizing production and marketing research
and advertising. Industries participate voluntarily and agree to
Federal oversight over certain aspects of their operations. Once
established, a marketing order becomes binding on all individuals
or businesses serving as "handlers" in a geographic area
covered by the order. Imports may be directly affected by these
marketing orders. Under the Agricultural Marketing Agreement Act
of 1937, Section 8e, imports of commodities for which domestic marketing
orders are in effect are required to comply with the same or comparable
regulations on grade, size, quality, or maturity issued in the marketing
order.
For example, the only Federal marketing order in force for avocados
covers fruit produced in South Florida between June and March. It
authorizes grade, size, quality, maturity, container, and pack requirements
and authorizes regulations on size, capacity, and weight of the
containers used in shipping. Minimum grade, size, and maturity also
are applied to imported avocados. See the AMS list of Federal Marketing Orders for the orders currently in effect.
Federally sanctioned research and promotion programs are self-help
programs, requested and funded by the industry groups that they
serve. The goal of these programs is to expand, maintain, and develop
markets for individual agricultural commodities in the United States
and abroad. The Secretary of Agriculture appoints national program
boards composed of producers, handlers, importers, and processors
(depending on which industry members pay assessments to fund the
programs), as well as public members. The boards conduct promotion,
market research, production research, and new product development
under the supervision of AMS. See the AMS web pages on cultivated
blueberries, Hass avocadoes, and mangos for more information on these current programs.
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