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USDA Progress Report

Progress Report:

United States Department of Agriculture

Secretary Thomas J. Vilsack

 

 

Contents

 

 

Introduction...................................................................................page 1

 

American Reinvestment and Recovery Act (ARRA) overview...........page 2

ARRA-Providing a Safety Net

ARRA-Assisting Communities

ARRA-Improving the Environment

 

Reform...........................................................................................page 5

Payment Limits and Program Eligibility

Program Fraud and Improper Payments

 

Policy Initiatives............................................................................page 7

Childhood Health and Nutrition

Civil Rights

Emboldened approaches to the Environment, Climate Change

   And Energy Independence

The Peoples

Food Safety

Country of Origin Labeling

Afghanistan

G8-FoodSecurity

Biotechnology

 

Interagency Efforts and Miscellaneous.........................................page 14

Middle Class Task Force

DOE/DOI/USDA/FERC-Transmission Grid Expansion, Renewable Energy

USDA/DOE Collaboration on Streamlining Loan Guarantees

Energy and Environment Cabinet Working Group

 

 

Introduction

 

Under the leadership of President Barack Obama and Secretary Tom Vilsack, the United States Department of Agriculture (USDA) has taken great strides in the first 100 days of the Administration through actions and examples to bring about needed change in food and agriculture.  From the first day of the Obama Administration, USDA set a new course and applied resources to meet key national priorities.  In a departure from the past, USDA is ensuring that the needs of consumers are front and center in the focus of the Department.  USDA utilized innovative policies and taken creative steps to ensure healthier lives for America's children and foster the nation's future workforce.  These actions will chart the path to combat childhood hunger and reduce childhood obesity.  For the first time, spurring economic development through biofuels and focusing on mitigating climate change have become key priorities of the Department.  USDA has also taken groundbreaking actions on progressive conservation improvement and has begun to set a new direction for forest policy.

 

 

To better respond to the nation's economic troubles, USDA took swift action to implement the Farm Bill and the American Reinvestment and Recovery Act.  These actions have resulted in bold new projects and initiatives that will spur rural economic activity and contribute to the nation's overall financial health.  The Department has also broken political doctrine of past Administrations and taken action to establish a stronger and more appropriate safety net for American Agriculture.  And, a new tone has been established for civil rights at USDA.  At the close of the Administration's first 100 days, USDA has the most diverse leadership cadre among all Executive Branch Departments and the process of resolving civil rights claims at USDA has been shifted back into gear by the new Administration.  At the close of the first 100 Days, USDA is better positioned to assist the public on a much broader scale than ever before.

 

  

         

American Reinvestment and Recovery Act (ARRA)

 

 

USDA has taken bold and decisive action to implement provisions of the American Recovery and Reinvestment Act in aid to the nation's ailing economy.  These actions encompass a broad range of tools including funding to ensure that farmers continue to contribute to local economies, steps to build and preserve critical infrastructure, as well as new resource conservation measures.  Under Secretary Vilsack's leadership, the Department is also ensuring transparency of funding, full accountability for projects and streamlined delivery of services. 

 

ARRA- Providing a Safety Net

 

By the beginning of April, 2009, USDA successfully distributed all of the funding provided for direct farm operating loans in the Recovery Act.  As part of providing a better Farm Safety Net, USDA has obligated loans totaling $168.8 million to 2,521 producers in 47 States, Puerto Rico, and the Western Pacific Territories.  Nearly half of the loans are going to beginning producers, and nearly 20 percent are going to socially disadvantaged producers, some of whom are also beginning producers.  On March 17th, USDA also announced the availability of a new crop disaster assistance buy-in for farmers.

 

ARRA- Assisting Communities

 

USDA has obligated a loan level of $743.3 Million for Single Family Housing ARRA funds, totaling 6,492 loans.  These will be used to help low-income individuals or households purchase homes in rural areas. These funds are being used to build, repair, and renovate homes, and purchase and prepare new home sites.

 

Secretary Vilsack and Vice President Biden travelled to Pikeville, North Carolina on April 1, 2009 to announce the first wave of the $10 billion in guaranteed housing loan funding provided in the Recovery Act. The Pikeville fire station, where the announcement was made is receiving ARRA funding to build a larger fire station that will accommodate trucks to better serve the community and keep it safe from fires.  The community will benefit from direct operating loans to farmers and ranchers, single family housing loans to rural residents and infrastructure support.  

 

 

As a result of the Administration's initiative in the Recovery Act,  Supplemental Nutrition Assistance Program (SNAP) increased the maximum benefit by 13.6 percent. As a result, low-income and unemployed households will be better able to put nutritious food on their tables, spending will increase in grocery stores and local communities, and the food and agriculture supply economy will be positively impacted.  Under this Obama Administration initiative, an eligible household of four will receive an increase of $80 in monthly benefits for a total of $668 dollars per month.   

 

 

 

 

     The Obama Administration's work on the Recovery Act will result in historic investments in rural telecommunications and connectivity.  Just as past federal initiatives brought rural communities into economic prosperity through investments in highways and physical infrastructure, the ARRA will prepare rural communities for the future with improved telecommunications.  $2.5 billion has been made available to USDA for expanding rural broadband into communities that otherwise might not have access.  USDA has begun implementation in concert with the U.S. Department of Commerce and is determining the best targeted utilization of the funding.

 

ARRA- Improving the Environment

 

In the area of the environment and natural resource conservation, significant strides have been made.  An additional $33 million has been made available for wildland fire protection.  USDA anticipates creating 25,000 new jobs over the next two years on projects relating to land stewardship and watershed restoration, green infrastructure repair and in the production of energy from wood. Many of the most affected communities of the economic downturn are located near national forests. Rural jobs are being created on millions of acres in need of restoration work so that money can flow into local communities.

 

For example, $1.5 million of Recovery Act funding will create jobs across Northern California. The project work includes fuel reduction work near communities, Forest Service recreation facilities, and access routes and will also maintain facilities to reduce deferred maintenance while making crews available for fires suppression when needed.  In Colorado, $5 million of Recovery Act funding has been targeted to remove dead trees along 150 miles of roadsides affected by the large-scale mountain pine beetle infestation. In addition, fire prevention projects to remove hazardous fuels around private property and communities-at-risk and critical municipal watersheds serving Denver and the Front Range.   In Florida, a state-wide hazardous fuels reduction program and a public safety and educational campaign are underway because of Recovery Act funding. Not only will this reduce threats to communities at risk from wildfire, but it also provides protection to the large number of vacant and foreclosed property around the state. Direct stimulus through contracts, services, supplies and salaries will help the hard-hit economy throughout the state. The USDA Forest Service has also made available $100 million for forest health and the reduction of hazardous forest fuels.  $400 million has been made available for rural water and wastewater grants.  

 

The ARRA provides to USDA $145 million for floodplain easements. This funding will restore frequently flooded land to its natural state; create jobs in rural communities nationwide when landowners establish floodplain easements; and will restore and protect an estimated 60,000 acres of flood-prone lands nationwide.  USDA has also provided $45 million for the rehabilitation of watersheds, many of which are nearing the end of their 50-year design life. Recovery funds will be used to upgrade the structure to current safety standards, thereby protecting life, property and infrastructure downstream for more than 90 years and resulting in 910 jobs.  USDA has also provided $85 million for 53 new flood prevention project efforts in 21 states and territories.

 

Reform

 

USDA has set a clear course for reform in the first 100-Days of the Administration.  Secretary Vilsack has established and articulated the need for transparency and strong accountability within the Administration.  One of the first actions at the US Department of Agriculture was to extend the comment period on rulemaking associated with payment limits and program eligibility for farm programs.  The extension was part of a comprehensive effort to fully review rulemaking that had been hastily completed at the close of the previous Administration.   The extension allowed 60 days of additional review and comment by the public and additional transparency of the rulemaking process.  This step was undertaken by USDA without adversely affecting the farm payment program for 2009.  The Department also extended the comment period on a myriad of additional pre-existing rules, including a forest products rule, and several conservation programs in order to provide more opportunity for public input.

 

      

     Another historic reform that USDA has taken in the first 100 Days is to ensure collaboration between the Department of Treasury and USDA to identify potential fraud and improper payments in farm programs.  Beginning with the 2009 crop year and in successive years, all farm program payment recipients will be required to sign a form which grants the Treasury Department the authority to provide income information to USDA for verification purposes.  The reform proposal institutes better accountability in programs and would render those out of compliance ineligible for USDA payments.  In terms of savings, according to the U.S. Government Accountability Office, between 2003 and 2006, USDA made more than $49 million in payments to ineligible famers.  The Administration also proposed historic and wide sweeping reform to the nation's program of crop subsidies and farm programs as part of the FY 2010 Budget request and.  In total, the reforms contained in the Obama Administration budget would result in $10.8 billion in savings over a ten-year period.  The Department has pushed for overall reform of the federal crop insurance program.

 

USDA has undertaken several reform based steps amounting to approximately $1.6 million dollars in savings through reduced unnecessary travel, reduced postage by utilizing electronic communications, and reorganization of existing processes.  For example, USDA eliminated the federal funds supporting first-point testing of cattle for brucellosis in low-risk states (based on evaluations and surveillance in those states) saving $1.5 million, which will be immediately available for activities in the brucellosis program.    

Following a review of qualified data center hosting services, USDA has also selected the National Finance Center, run by the Office of the Chief Financial Officer, to provide data center hosting services for USDA's new financial system, the Financial Management Modernization Initiative, because it can provide the services most cost-effectively.  Under this contract, NFC will be providing full hosting services to include hardware, system software, engineering services, system administration, security, operations and maintenance and disaster recovery.  This will cost the Department $17.5 million less over the next three years than contracting out for those services. 

 

 

 

Policy Initiatives

 

 

 

Childhood Health and Nutrition    

 

 

As illustration of the Administration's comprehensive approach to simultaneously addressing both the economy and health and nutrition concerns, USDA announced in March the transfer of approximately 200 million pounds of nonfat dry milk to USDA's Food and Nutrition Service for use in domestic feeding programs. The goal of this effort is to help support both low-income families struggling to put nutritious food on their tables and dairy farmers who have been challenged by high feed costs and low dairy prices.

 

USDA has also instituted a new planting flexibility pilot for farmers.  The pilot will permit producers in Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, and Wisconsin to plant such vegetables as cucumbers, green peas, lima beans, pumpkins, snap beans, sweet corn, or tomatoes for processing on base acres under the Direct and Counter-Cyclical Program (DCP).  The initiative will result in additional supplies of healthy fruits and vegetables.

 

On April 7, 2009, USDA announced that an additional 51,700 tons of agricultural commodities, valued at nearly $80 million, will be provided to children in low-income, food-deficit countries under USDA's McGovern-Dole International Food for Education and Child Nutrition Program for fiscal year 2009.  This assistance is in addition to $95.5 million allocated for fiscal 2009 for the McGovern-Dole Program that was announced in December 2008.  The program helps support education, child development, and food security in low-income, food-deficit countries that are committed to universal education.  It provides for donations of U.S. agricultural products, as well as financial and technical assistance for school feeding and maternal and child nutrition projects.  To date, the McGovern-Dole program has provided meals to more than 22 million children in 41 countries and boosted school attendance by an estimated 14 percent overall, and by 17 percent for girls.

 

Also, in a clear departure from the past, on January 26, 2009, Secretary Vilsack announced the reversal of the previous Administration's proposal to cut $3.2 million for the Specialty Crop Block Grant Program.  This program is a successful and popular initiative that supports the increased production and consumption of healthy fruits and vegetables.

 

 

Another illustration of the Department of Agriculture's innovative approach to meeting key strategic goals during the first 100 days is the Secretary's creative partnerships regarding health and nutrition for children.  Through creative collaboration with Sesame Workshop, Secretary Vilsack partnered with Cookie Monster and other characters to produce two public service announcements (PSA) promoting healthier diets and better food choices.  The advertisements are being aired nationwide.

 

 

 

On March 10, at the National Women Infants and Children (WIC) Association 19th Annual Leadership Conference, Sesame Workshop and National WIC Association held a joint press conference announcing the overall Healthy Habits educational campaign which was created to support the nutritional and health efforts that WIC clinics provide to WIC mothers and children.  WIC delivered child and family-friendly messages from the Sesame Street Muppets to aid in implementing the new WIC Food package program.

 

 

USDA also launched a new campaign phase with the Ad Council designed to inspire parents to adopt healthier lifestyles for their families. The campaign features characters from Disney's beloved Pinocchio and encourages parents to visit USDA MyPyramid.gov to find the right balance for a healthy lifestyle for their children.  The interviews conducted the day of the launch reached an audience of over 37 million

 

 

Civil Rights

 

Under new management, USDA has begun to turn around decades of problems associated with Civil Rights in both employment practices and service to customers. Immediately upon the beginning of the Administration, Secretary Vilsack provided strong and thorough leadership to the Department by issuing clear policy on Civil Rights and requiring accountability and performance among all Department leaders and employees.  Under the new Administration, contractors and additional expertise has been brought to bear to identify, analyze and resolve existing Civil Rights cases at USDA.  At the close of the Administration's first 100 days, USDA now has the most diverse leadership cadre among all Executive Branch Departments and the process of resolving civil rights claims at USDA has resumed progress - a clear departure from the recent track record of the Department.

 

We recognize that in the past, very serious concerns were raised about the discriminatory nature by which USDA delivered programs.  As part of an aggressive and comprehensive plan to address civil rights abuses in the future, USDA will seek an outside, independent review of the delivery of USDA's financial assistance programs by the USDA "service center agencies"  (FSA, RD, and NRCS) at the state office and county office level.  This review will develop an assessment of existing policies, practices, resources and mechanisms within the Department.  Based on this assessment, we will seek and implement recommendations for the top leadership of USDA to assure USDA's field structure administers these programs in a fair, equitable, accountable and non-discriminatory manner.

 

 

Emboldened approaches to the Environment, Climate Change and Energy Independence

 

    Within the Administration's first 100 days, USDA has set a new tone and established a new commitment toward addressing climate change and energy independence.  In March, USDA announced that for the first time ever, USDA has made grant funding available through the Rural Energy for America Program to help agricultural producers and rural small businesses obtain energy audits to identify ways to improve energy efficiency.  The audits are intended to help rural small businesses and agricultural producers determine where to make changes in their operations to enable them to reduce energy consumption. Audits are required for energy efficiency projects funded through REAP that exceed $50,000.

 

Working in collaboration with the Department of Energy, Secretary Vilsack has made $25 million available for research and development of technologies and processes to produce biofuels, bioenergy, and high-value biobased products.  The projects will strengthen the economy and address climate change by broadening the nation's energy sources as well as improving the efficiency of renewable fuels.  The projects will place special emphasis on

·         Feedstocks development;

·         Biofuels and biobased products development; and,

·         Biofuels development analysis.

 

The Obama Administration's support for the conservation of open space, sustainable landscapes, and the development of green jobs has been exemplified in the first 100 days through the establishment of a new People's Garden initiative at USDA.  On February 12, 2009, Secretary Vilsack initiated the removal of more than 1,200 square feet of pavement at USDA (with a jackhammer) to make way for a new People's Garden at headquarters and to initiate a goal of community gardens at USDA facilities around the nation and globally. 

 

 

The People's Garden will be organic, and will grow vegetables, herbs, and fruit utilizing compost from the USDA cafeteria and other facilities.

Food will be donated to local food banks, and the garden and landscaping will be maintained through a partnership between USDA, community volunteers, and contractor Melwood, resulting in green job skills for people with disabilities. The landscaped area will include a "bioswale" and rain garden to collect stormwater runoff from the adjacent Farmers market parking lot and provide benefits to the Chesapeake Bay.  The raised organic planting beds and walkways will be constructed from salvaged urban Black Locust timber  collected within the District of Columbia, and pollinator habitat is being integrated into the garden site.  Education markers and plaques will be included to demonstrate how conservation practices can improve natural resources

 

 

In total, The People's Garden sustainable landscape project features the complete updating of the landscape and structure improvements at the USDA headquarters building on the Mall setting a new direction for USDA in the future.  As part of the initiative, stormwater will be collected and reused, invasive landscape species will be replaced with natives.  The USDA Farmer's market will also be expanded with healthy and locally produced food displays.

 

Food Safety

 

Within the Administration's first 100 days, USDA announced a final rule to amend the federal meat inspection regulations to require a complete ban on the slaughter of cattle that become non-ambulatory disabled after passing initial inspection by Food Safety and Inspection Service (FSIS) inspection program personnel.   The final rule requires that all cattle that are non-ambulatory ("downer") cattle at any time prior to slaughter at an official establishment, including those that become non-ambulatory disabled after passing ante-mortem inspection, be condemned and properly disposed of according to FSIS regulations. Additionally, the final rule requires that establishments notify inspection program personnel when cattle become non-ambulatory disabled after passing the ante-mortem, or pre-slaughter, inspection. The rule will enhance consumer confidence in the food supply and improve the humane handling of cattle. 

 

Country of Origin Labeling

 

USDA implemented the Final Rule on Country of Origin Labeling on March 16, 2009.  The rule establishes mandatory country of origin labeling for beef, pork, lamb, goat, chicken, fish and shellfish, fresh and frozen fruits and vegetables, and certain nuts.  The rule will provide consumers with access to additional information.  In addition, on February 19, 2009, Secretary Vilsack sent an open letter indicating that the final rule would go into effect, that USDA would be closely monitoring compliance with the rule, and encouraging voluntary practices that could provide additional information to consumers.

 

Afghanistan

 

The Obama Administration has highlighted the important role of agriculture in securing social and economic stability in Afghanistan.  USDA plans to expand its role in Afghanistan by helping build the capacity of the Afghan Government at the national, provincial, and local levels to deliver services to the Afghan people, particularly in rural areas where most of the population lives and where the Taliban are most active.  USDA's efforts will include providing ministerial advisors with expertise in subjects such as agricultural extension, animal health, plant health, and data collection and analysis.  USDA is increasing the number of agricultural advisors assigned to Provincial Reconstruction Teams.  Technical assistance will include in-country and U.S.-based training.  USDA's work will help to facilitate development of a dynamic food and agricultural system in Afghanistan that is characterized as competitive, sustainable, and globally integrated.

 

G8 - Ag Ministerial on Food Security

 

Secretary Vilsack led the U.S. delegation to the G8 Agricultural Ministerial in Treviso, Italy, April 18-20, 2009.  This meeting was called for by G8 leaders at the Tokyo (Japan) Summit in July 2008 where they recognized the need for mid to long-term measures to tackle the issue of food insecurity and poverty and asked ministers of agriculture to develop sound and shared proposals on food security.  At the Agricultural Ministerial meeting, the Secretary discussed America's proud legacy of leading the world in providing emergency humanitarian assistance and President Obama's recent pledge to double agriculture development spending.  He offered substantive proposals to reduce hunger through USDA's food assistance programs and increased agricultural development in affected countries.   The main outcome of the meeting was a strong Ministerial Declaration of support for the critically important task of promoting food security which will form one of the pillars for the next G8 leaders meeting in La Madallena, Italy, in July 2009.

 

Biotechnology

 

Under Secretary Vilsack's leadership, the USDA has begun an intensive review of current policy to further ensure the promotion and understanding of biotechnology as a safe and appropriate use of science to help meet agricultural challenges both domestically and abroad.  Included within this framework is the recognition of the diverse range of opinions and stakeholders related to biotechnology.  

 

In January 2009, USDA reopened a public comment period for proposed revisions to regulations governing introduction of genetically engineered organisms (mostly plants).  A public meeting on the proposal was scheduled for April 29-30, 2009, providing opportunity for stakeholders including the biotechnology industry, public interest groups, and commodity and food producer groups with varying views to dialogue with USDA regulators and to work collaboratively toward consensus.

 

Interagency Efforts and Miscellaneous

 

Middle Class Task Force -- Secretary Vilsack has helped lead the efforts of the Vice president's Middle Class Task Force.  Secretary Vilsack accompanied Vice president Biden and the Task Force to Philadelphia, PA on February 27th and to St. Cloud, MN on March 19th for sessions aimed at establishing better approaches to assist America's working families.  For agriculture, recent statistics show increasing numbers of small and very large farming operations, with a decline in the number of medium sized operations.  USDA's participation in the Task Force has been a key approach to ensuring that farmers and ranchers have a seat at the table and reflects the Obama Administration's Commitment to Rural America.

 

 

Working Group on Transmission Grid Expansion for Renewable Energy - Departments of Energy and Interior, USDA and Federal Energy Regulatory Commission - USDA has participated in an initiative to develop, coordinate, and streamline Federal process among USDA/DOI/DOE and FERC for planning, siting and developing a national electric grid overlay.  The goal is to build on the existing work for transmission grid planning to facilitate the wise use of the nation's renewable resources to meet the President's energy and environmental goals.

 

This working group is preparing an overview for the President of the existing challenges and what is needed going forward to achieve a national transmission grid capable of meeting the goals of 10% of our electricity coming from renewable sources by 2012 and 25% by 2025.

 

 

USDA/Treasury - An historic reform step that USDA has taken in the first 100 Days is to ensure collaboration between the Department of Treasury and USDA to identify potential fraud and improper payments in farm programs.  As part of the Administration's reform action, beginning with the 2009 crop year and for successive years, all farm program payment recipients will be required to sign a form which grants the Treasury Department the authority to provide income information to USDA for verification purposes.  The reform proposal institutes better accountability in programs and would render those out of compliance ineligible for USDA payments.  In terms of savings, according to the U.S. Government Accountability Office, between 2003 and 2006, USDA made more than $49 million in payments to ineligible famers.  Savings under this proposal could reach $16 million.

 

                  

Energy and Environment Cabinet Working Group - USDA has been a key participant in an Energy and Environment Cabinet Working Group.  The group encompasses agencies that have authorities and responsibilities for conservation of private and public lands, as well as energy, climate and other natural resource concerns.  The group reflects a new approach within the Obama Administration of bringing key Departments and agencies together to exchange views, better coordinate, and communicate actions within the Executive Branch.