Richard G. Lugar, United States Senator for Richard G. Lugar, United States Senator for Indiana
Richard G. Lugar, United States Senator for Indiana
Home > Senator Lugar's Farm Bill > Agriculture: A Glossary of Terms, Programs, and Laws

Agriculture: A Glossary of Terms, Programs, and Laws

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FAC — Food and Agriculture Council.
FACA — Federal Advisory Committee Act.
Facility Credit Guarantee Program (FGP) — This is a Commodity Credit Corporation (CCC) credit guarantee program to encourage the construction or improvement of agriculture-related storage, processing, or handling facilities in emerging markets. The CCC provides repayment guarantees (95% of the covered value of the project, and a portion of interest on a variable rate basis) on loans of 1 to 10 years. The longer term goal of the FGP is to expand sales of U.S. agricultural commodities and products to emerging markets. The CCC agrees to pay exporters or their assignee (e.g., financial institution) in the event a foreign bank fails to make payment pursuant to the terms of an irrevocable letter of credit.
FACT Act of 1990 — Food, Agriculture, Conservation, and Trade Act of 1990 (P.L. 101-624); the 1990 farm bill.
FACT — Food Animal Concerns Trust. www.fact.cc.
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 Labor Standards Act (FLSA) — P.L. 75-718 (June 25, 1938, as amended) is the primary federal statute governing minimum wages, overtime pay, child labor, and related labor standards. Initially focused upon industrial workers involved in interstate commerce, the statute has gradually been extended to workers in agriculture and immediately related activities, though with many exemptions built into the statute. The Act is administered by the U.S. Department of Labor.
Fair market value (FMV) — The amount in cash, or on terms reasonably equivalent to cash, for which something might be sold by a knowledgeable owner to a knowledgeable purchaser. Several federal statutes specify that the federal government should receive fair market value when exchanging or selling federal lands and resources.
FAIR Act of 1996 — Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127); the 1996 farm bill.
FAIR — National Farm Animal Identification and Records.
Fallow cropland — Cropland usually in semi-arid regions that is purposely kept out of production during a cropping season, mainly to conserve moisture for the next season; sometimes called summer fallow. It may be tilled or sprayed to control weeds and conserve moisture in the soil. The 1997 Census of Agriculture reported that 20.9 million acres, almost 5% of the 431 million acres of all cropland, was fallow that year.
FAMC — Federal Agricultural Mortgage Corporation (Farmer Mac). www.farmermac.com.
Family farm — As defined by USDA regulations related to farm loan programs, a family farm is one 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. (For exact language, see 7 U.S.C. 1941.4,1943.4).
FAO — Food and Agriculture Organization of the United Nations. www.fao.org.
FAPRI — Food and Agricultural Policy Research Institute. www.fapri.missouri.edu.
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 1996 farm bill (P.L. 104-127) and the 2002 farm bill (P.L. 107-121) eliminate the need to calculate a farm acreage base.
Farm and ranch 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, but no program has been authorized.
Farm and Ranch Lands Protection Program (FRPP) — The Natural Resources Conservation Service (NRCS) renamed the Farmland Protection Program (FPP) to the Farm and Ranch Lands Protection Program in 2003 to accurately reflect the resources eligible to participate in the program. The program established by the 1996 farm bill (P.L. 104-127) 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. The 2002 farm bill (P.L. 107-171, Sec. 1241) reauthorized the program through FY2007 and provided mandatory funding from the Commodity Credit Corporation (CCC) that was $50 million in FY2002 and will rise to $125 million in FY2004, then slowly decline to $97 million in FY2007. Other changes expanded the definition of eligible land to include cropland, rangeland, grassland, pasture land, incidental forest land, and historic and archeological sites; expanded the list of eligible participants to include Indian tribes and non profit organizations that meet specified qualifications; and directed an unspecified portion of the program funds to carry out a farm viability program. According to the NRCS FY2005 budget request document, more then 306,000 acres in 42 states have or soon will have easement contracts.
Farm bill — A phrase that refers to a multi-year, omnibus law that contains federal commodity and farm support policies, as well as other farm-related provisions. It usually amends some and suspends 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; (9) Farm Security and Rural Investment Act of 2002, P.L. 107-171.
Farm Bureau — American Farm Bureau Federation (AFBF). www.fb.com.
Farm Credit Act of 1971 — This Act, as amended, currently serves as the authorizing statute for the Farm Credit System (12 U.S.C. 1200 et seq.). 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 Agricultural Credit Act of 1987 (P.L. 100-233, January 6, 1988), a major piece of legislation modifying the 1971 Act, 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) 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) included numerous provisions to 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. www.fca.gov.
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 (FCS) — A nationwide financial cooperative that lends to agricultural producers, rural homeowners, farm-related businesses, and agricultural, aquatic, and public utility cooperatives. Congress established FCS as a government sponsored enterprise when it enacted the Federal Farm Loan Act in 1916. Current authority is in the Farm Credit Act of 1971 (P.L. 92-181, as amended; 12 U.S.C. 1200 et seq.). The fundamental purpose is to provide a permanent, reliable source of credit at competitive interest rates, and related services to agricultural producers, their cooperatives, and related businesses in rural America. FCS is composed of six regional Farm Credit Banks (FCB) and one Agricultural Credit Bank. These banks provide funds and support services to Federal Land Bank Associations (FLBA), Federal Land Credit Associations (FLCA), Production Credit Associations (PCA), and Agricultural Credit Associations (ACA). These associations in turn, provide loans to eligible borrowers. Lending associations are governed by boards of directors elected from FCS borrowers. Funds are raised through the sale of bonds and notes. Federal oversight by the Farm Credit Administration is designed to provide for the safety and soundness of FCS institutions.
Farm Credit System Assistance Board — A temporary board created by the Agricultural Credit Act of 1987 (P.L. 100-233, Title II) 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 the Agricultural Credit Act of 1987 (P.L. 100-233, Title III), 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 sector's financial condition or solvency.
Farm gate price — See Producer price.
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 for each state.
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 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 labor housing grants — Section 516 grants are available through the Rural Housing Service (RHS) to qualified nonprofit organizations to providing housing to farm workers.
Farm labor housing loans — Section 514 loans are available through the Rural Housing Service (RHS) to qualified farm owners for the purpose of providing housing to domestic farm labor.
Farm Labor Contractor Registration Act (FLCRA) — P.L. 88-582 (September 7, 1964, as amended) regulated the activities of farm labor contractors, that is, agents who recruit and are otherwise engaged in the transport, housing, and employment of migratory agricultural workers. Under FLCRA, farm labor contractors were required to secure certification through the U.S. Department of Labor. Strengthened by amendment in 1974, the Act became a target of grower criticism and, in 1983, was repealed and replaced with the Migrant and Seasonal Agricultural Workers Protection Act (P.L. 97-470).
Farm link (land link) — A program concept that would match retiring farmers who want to keep their land in agriculture with beginning farmers, almost always unrelated, who want to buy a farm. Efforts to implement such an effort rest at the state and local level. There is no federal program.
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 1996 farm bill (P.L. 104-127), 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 operating (OL) loans — The Consolidated Farm and Rural Development Act (P.L. 92-419, Subtitle B, as amended; 7 U.S.C. 1941-1943), authorizes the Farm Service Agency (FSA) (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 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 56% of their land and lease or rent the remainder from landlords according to the 2002 Census of Agriculture.
Farm ownership (FO) loans — The Consolidated Farm and Rural Development Act (P.L. 92-419, Subtitle A, as amended, 7 U.S.C. 1922-1925), 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. The interest rate 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 Security and Rural Investment Act of 2002 — Referred to as the 2002 farm bill (and sometimes abreviated FSRI Act or FSRIA), this 407 page omnibus law (P.L.107-171) signed by President Bush on May 13, 2002, revised and extended (in most cases, through 2007) many major government programs and policies related to agriculture. It included titles on commodity programs, conservation, trade, nutrition programs, credit, rural development, research and extension services, forestry, energy, as well as miscellaneous provisions relating to crop insurance, disaster assistance, animal health protection, livestock, specialty crops and general provisions, studies and reports. The total 6-year cost of this law projected by CBO at the time of its enactment was $273.9 billion. This reflected $51.7 billion in new spending, most of which was for payments to farmers under commodity programs (+$37.6 billion) and conservation programs ($+9.2 billion). This law substantially altered the farm commodity policy direction taken by the Agriculture Market Transition Act in the 1996 farm bill (P.L.104-127). Among other things, it increased support for covered commodities (formerly called contract commodities) by raising loan rates and adding counter-cyclical payments to direct payments, and also by expanding the scope to include soybeans, other oilseeds, and pulse crops. Other notable commodity policy changes included: (1) the creation of a new counter-cyclical dairy payment program to replace the Northeast Dairy Compact; (2) the termination of the peanut quota program with compensation for peanut quota holders, and the addition of peanuts to the crops eligible for marketing loan assistance, and direct and counter-cyclical payments; (3) the restoration of federal support for honey, wool, and mohair through marketing assistance loans and loan deficiency payments. Among the noteworthy changes made in the conservation title were significant funding increases for conservation activities, allowance for third-party vendors to carry out technical services, and the creation of a new conservation security program that pays farmers for conserving practices on land that is in production.
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. www.fsa.usda.gov/pas/default.asp.
Farm size — The most common way to measure farm size is by the value of gross farm sales. Acreage is not used for comparisons across differing kinds of farms because in some cases a farm need not have land (i.e., bee hives may be in constant rotation among parcels not belonging to the beekeeper). There are about 2.1 million farms in the United States. For 2003, according to analysis by the Economic Research Service, commercial farms, which include those having sales of $250,000 or more annually, constituted 9% of all farms and accounted for nearly 72% of production. Intermediate farms constituted 24% of all farms and accounted for 19% of production. The largest number of farms, characterized as rural residence farms, constituted 68% of all farms and accounted for 8% of production.
Farm Storage Facility Loan Program — A loan program for the construction and remodeling of storage facilities on farms producing grains, oilseeds, and pulses. The loan limit for each borrower is $100,000 for up to 7 years. The interest rate is equivalent to the rate on comparable term Treasury securities. The program is administered by the Farm Service Agency (FSA). The 2002 farm bill (P.L. 107-171, Sec. 1402) newly mandated storage facility loans for raw and refined sugar.
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 (sometimes called the marketing spread). The current spread accounts for about three-fourths of the retail price for a market basket of foods, according to USDA. The farm value varies for each type of food; for example, in 2004 it accounted for about 35% of the retail cost of eggs, compared to about 19% for fresh fruit and vegetables, and about 6% for cereal and bakery products.
Farm typology — The USDA's Economic Research Service (ERS) has developed a farm classification that divides the 2.1 million U.S. farms into 8 mutually exclusive and relatively homogeneous groups: limited resource farms, retirement farms, residential/lifestyle farms, farming occupation/lower sales, farming occupation/high sales, large family farms, very large family farms, and nonfamily farms. Also, the eight categories can be collapsed into 3: rural residence farms, intermediate farms, and commercial farms. Data for 2003 indicate that Commercial farms, those having sales of $250,000 or more annually, constitute 9% of all farms and account for 72% of production. Intermediate farms, constituting 24% of all farms, account for 19% of production. The largest number of farms, characterized as rural residence farms, constitute 68% of all farms and account for 8% of production. See Small farm.
Farm Viability Program — A new program option under the Farmland Protection Program, aimed to increase economic sustainability of farms, enacted in the 2002 farm bill (P.L. 107-171, Sec. 2503), to be funded through appropriations with "such funds as may be necessary" through FY2007.
Farm — Since 1850, when minimum criteria defining a farm for census purposes were first established, the farm definition has changed nine times. A farm currently is defined, for statistical purposes, as any place from which $1,000 or more of agricultural products were produced or sold or would have been sold during the agriculture census year. This was the official U.S. Commerce definition used in the agricultural censuses from 1974 to 1992. It was maintained when the USDA took over the responsibility and cost for the agricultural census of 1997 after the Bureau of Census proposed changing the farm sales minimum to $10,000. In 1995 when this was proposed, the change would have reduced the counted number of farms by nearly half, and was strongly opposed by many agricultural interests. The issue was resolved by permanently transferring the responsibility and cost for agricultural censuses to the USDA, which thus far has maintained the $1,000 threshold.
FARM — Farm Animal Reform Movement. www.farmusa.org.
Farmable Wetlands Program — First authorized as a pilot program in Title XI of the FY2001 agriculture appropriations legislation (P.L. 106-387) to enroll up to 500,000 acres of farmable wetlands smaller than 5 acres in 6 upper Midwestern states (with no more than 150,000 acres in a single state) into the Conservation Reserve Program. The 2002 farm bill (P.L. 107-171, Sec. 2101) made this a 2 million acre national program (with an enrollment limit of 100,000 acres per state), and made changes in eligibility requirements, such as increasing the maximum size of eligible wetlands from 5 acres to 10 acres.
Farmaceuticals — This term is a melding of the words farm and pharmaceuticals. It refers to medically valuable compounds produced from modified agricultural crops or animals (usually through biotechnology). Proponents believe that using crops and possibly even animals as pharmaceutical factories could be much more cost effective than conventional methods (i.e., in enclosed manufacturing facilities) and also provide agricultural producers with higher earnings. Worldwide, hundreds of genetically modified, agricultural-based pharmaceuticals are being developed and tested, but as of early 2003, none had yet been approved for commercial use. At issue in the United States has been whether the current system for regulating biotechnology is adequate for ensuring the safety (to humans, animals and crops, and the environment) of newly emerging applications, such as farmaceuticals. The terms nutraceuticals and farmaceuticals are sometimes used interchangeably to describe components isolated from foods that can be provided in dosage form for some medical purpose beyond nutrition. The term farmaceuticals is more frequently associated, in agricultural circles, with medical applications of genetically engineered crops or animals. The term nutraceuticals, on the other hand, appears to be associated more with the extraction of naturally occurring components for medical uses.
Farmed wetlands — Under the swampbuster program, these are wetlands that were partially drained or altered to improve crop production before swampbuster was enacted on December 23, 1985. Farmed wetlands have undergone less alteration than prior converted wetlands, and are therefore subject to more stringent rules about further change. 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 (P.L. 100-233) 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. www.farmermac.com.
Farmer to Farmer Program — see John Ogonowski Farmer to Farmer Program.
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 1996 farm bill (P.L. 104-127) 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 markets — Farmers markets are venues where agricultural and food producers sell directly to consumers. In the past 20 years, farmers markets have increased significantly in the United States as demand has increased for locally grown products. According to USDA, from 1994 to 2002 the number of farmers' markets increased 79%, to over 3,100 markets across the country. In 2000, 19,000 farmers sold their produce only at farmers markets. There is variation among farmers markets: (1) producers-only markets where vendors sell only produce grown on their own farms; (2) markets where producers sell their own produce along with produce from other local farms; and (3) vendors who sell produce they purchase, locally or not. Some markets have only a few vendors, but the more successful farmers markets may have a large number of venders offering locally and regionally grown produce, meat and poultry, fruits, and value-added agricultural products, e.g., cheese, maple sugar, cut-flowers, breads and pastries, meat and dairy products. The WIC Farmers Market Nutrition Program (FMNP), established by Congress in 1992, provides fresh, unprepared, locally grown fruits and vegetables to WIC recipients, and expands the awareness, use of, and sales at farmers' markets. A similar program, the Senior Farmers Market Nutrition Program (SFMNP), provides locally-grown produce for low-income senior citizens.
Farmers' market programs — Two farmers' market programs operate under current law. One makes grants to agencies serving applicants/recipients under the Special Supplemental Nutrition Program for Women, Infants, and Children (the WIC program). The other supports local agencies serving seniors. In both cases, they provide funds for vouchers that can be used by WIC applicants / recipients or seniors for fresh fruits and vegetables purchased through farmers markets. They are typically operated under the auspices of state agriculture departments.
Farmers Market Promotion Program — A USDA program established by the 2002 farm bill (P.L. 107-171, Sec. 10605) to improve or expand existing farmers' markets, roadside stands, community-supported agriculture programs, and other direct producer-to-consumer market opportunities, and to develop or aid in the development of new farmers' markets, etc. The farm bill authorized unspecified amounts of appropriations for FY2002 through FY2007 for this program.
Farmers Union — National Farmers Union (NFU). www.nfu.org.
Farming-dependent county — The Economic Research Service (ERS) of USDA categorizes non-metropolitan counties by their dominant economic foundation and by characteristic policy type. The 2004 County Typology Codes were developed for all 3,141 counties, county equivalents, and independent cities in the United States. Farming-dependent counties (440 total, 403 nonmetro) are those with either 15 percent or more of average annual labor and proprietors' earnings derived from farming during 1998-2000 or 15 percent or more of employed residents worked in farm occupations in 2000.
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 provides tax relief through differential (preferential) assessment, and has right-to-farm laws. Less common approaches include establishing agricultural districts, using zoning to protect agricultural land, purchasing development rights, and transferring development rights.
Farmland Protection Program (FPP) — See Farm and Ranch Lands Protection Program (FRPP) for a definition. This became the new name for the program in 2003.
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.
FARRM — Farm and ranch risk management accounts.
Farrow-to-finish — Typically, a confinement operation where pigs are bred and raised to their slaughter weight, usually 225-300 pounds. Facilities with a capacity of 2,500 or more swine are considered by the EPA to be concentrated animal feeding operations (CAFOs) subject to point source pollution permit requirements. Other types of hog operations include farrow-to-feeder pig, feeder pig-to-finish, weanling-to-feeder pig, and farrow-to-weanling.
FAS — Foreign Agricultural Service. www.fas.usda.gov.
FASS — Federation of Animal Science Societies. www.faseb.org.
FASFAS — Federation of American Societies of Food Animal Sciences. www.fass.org.
Fast track authority — See Trade promotion authority.
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.
FATUS — Acronym for Foreign Agricultural Trade System of the United States, FATUS is a system of more than 200 trade codes created and maintained by USDA's Economic Research Service to summarize U.S. agricultural trade in a form accessible to the public. FATUS codes aggregate more than 4,000 import and 2,000 export, 10-digit agricultural trade codes from the Harmonized Tariff Schedule of the U.S. (HTS), under which all U.S. trade data are originally collected by the Census Bureau of the U.S. Department of Commerce. FATUS groupings are similar to, but tend to be more detailed than, those provided to the public through the BICO data system maintained by USDA's Foreign Agricultural Service. See also BICO, and U.S. Trade Internet System.
FB — Farm Bureau (American Farm Bureau Federation). www.fb.com.
FCA — Farm Credit Administration. www.fca.gov.
FCB — Farm Credit Bank.
FCC — Farm Credit Council. www.fccouncil.com.
FCIC — Federal Crop Insurance Corporation. www.act.fcic.usda.gov.
FCOJ — Frozen concentrated orange juice.
FCS — Farm Credit System. www.fccouncil.com.
FCS — Food and Consumer Service. www.fns.usda.gov/fncs.
FCSIC — Farm Credit System Insurance Corporation.
FDA — Food and Drug Administration. www.fda.gov.
FDPIR — Food Distribution Program on Indian Reservations.
Fecal coliform bacteria — Bacteria found in the intestinal tracts of mammals. Their presence in water or sewage sludge may be an indicator of pollution and possible contamination by pathogens.
Fed cattle — Animals leaving a feedlot, after fattening on a concentrated 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 (P.L. 100-233). www.farmermac.com.
Federal Agriculture Improvement and Reform (FAIR) Act of 1996 — 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 provided 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 support was to be phased down for milk over 4 years and then eliminated, but subsequent legislation continued this program. Had dairy support ended, processors could have obtained recourse loans on dairy products. 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. The 2002 farm bill (P.L. 101-171) superceded many of the 1996 farm bill provisions before they expired.
Federal crop insurance — See Crop insurance
Federal Crop Insurance Corporation (FCIC) — The wholly owned federal corporation within USDA that administers the federal crop insurance program. The 1996 farm bill (P.L. 104-127) created an Office Of Risk Management, which USDA has renamed the Risk Management Agency, and which houses the FCIC. www.act.fcic.usda.gov.
Federal Crop Insurance Fund — The fund within USDA through which all mandatory expenses of the federal crop insurance program (i.e., premium subsidy, program losses, and the reimbursement to participating private insurance companies for their administrative and operating expenses) are funded. Each budget cycle, USDA estimates the amount required to fund the program, but the fund receives an annual appropriation of "such sums as are necessary", since program expenses particularly program losses are contingent on weather and other variables, thus making it difficult to budget in advance.
Federal Crop Insurance Program — See Crop insurance.
Federal Crop Insurance Reform Act of 1994 — This Act is Title I of P.L. 103-354. Beginning with the 1995 crops, it modified 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% (now, 55%) 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 (since raised to $100 per crop). The Act allows farmers to purchase additional insurance coverage providing higher yield or price protection levels, with the premium on this buy-up coverage partially subsidized by the government. The Act also created the Noninsured Assistance Program (NAP), a permanent disaster payments program for crops not covered by crop insurance. The 1994 Act amended and in many cases suppressed major portions of the Federal Crop Insurance Act of 1980 (P.L. 96-365) 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 USDA to subsidize farmer premium payments. The Agriculture Risk Protection Act of 2000 (P.L. 106-224) made subsequent enhancements and reforms to the crop insurance program.
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. www.farmcredit-ffcb.com/ffcx/owa/ffcweb.home.
Federal Food, Drug, and Cosmetic Act (FFDCA) of 1938 — P.L. 75-717 is the basic authority intended to ensure that foods (other than meat and poultry, which USDA inspects) are pure and wholesome, safe to eat, and produced under sanitary conditions; that human and animal drugs and devices are safe and effective for their intended uses; that cosmetics are safe and made from appropriate ingredients; that animal feeds are safe,and that all labeling and packaging is truthful, informative, and not deceptive (21 U.S.C. 321 et seq.). The Food and Drug Administration (FDA) is primarily responsible for enforcing the FFDCA, although USDA also has some enforcement responsibility. The EPA 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) — P.L. 80-104 (June 25, 1947, as amended; 7 U.S.C. 136 et seq.), is the basic authority that requires the EPA to regulate the sales and uses of pesticides. 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 (FLBA) — Institutions within the Farm Credit System that take applications for and service long-term real estate loans for the Farm Credit Banks, but do not have direct lending authority.
Federal Land Credit Associations (FLCA) — 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 plans, 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 Meat Inspection Act (FMIA) of 1906 — Enacted June 30, 1906, (Chapter 3913, 34 Stat. 674), and substantially amended by the Wholesome Meat Act 1967 (P.L. 90-201), FMIA requires USDA to inspect all cattle, sheep, swine, goats, and horses when slaughtered and processed into products for human consumption (21 U.S.C. 601 et seq.). 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 (as well as poultry) are slaughtered and processed under sanitary conditions. These requirements also apply to imported meat and poultry products, which must be inspected under equivalent foreign standards. The Food and Drug Administration (FDA) is responsible for all meats not listed in the FMIA, including venison and buffalo, although USDA does offer a voluntary, fee-for-service inspection program for buffalo.
Federal Noxious Weed Act 1975 — P.L. 93-629 was adopted to prevent foreign weeds from entering and becoming established to the detriment of U.S. crops, livestock, and natural resources. Under this act, the Animal and Plant Health Inspection Service (APHIS) inspected incoming international passengers, baggage, and cargo at U.S. ports of entry to intercept noxious weeds (as listed by the Act), and worked with federal, state, and local agencies to confine, eradicate, or control them if any entered the country. Most of the provisions of the Federal Noxious Weed Act were incorporated into the Plant Protection Act of 2000 (Title IV of P.L. 106-224; 7 U.S.C. 7701 et seq.). Subsequently, the Homeland Security Act of 2002 transferred APHIS border inspections for noxious weeds (among many other things) to the Department of Homeland Security (DHS); cooperative programs for control or eradication remain in APHIS at USDA. Other agencies' programs related to noxious weeds (e.g., the Fish and Wildlife Service of the Department of the Interior, and the Environmental Protection Agency) now also operate under the authority of the Plant Protection Act of 2000.
Federal Plant Pest Act of 1957 — P.L. 85-36 prohibited the movement of plant pests from a foreign country into or through the United States unless authorized by USDA was superseded by the Plant Protection Act of 2000 (P.L. 106-224, Title IV). Under the new law, Animal and Plant Health Inspection Service (APHIS) retains 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. (7 U.S.C. 7701 et seq.).
Federal Register (FR) — 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 and application. USDA publishes its rules, notices and other documents in the Federal Register www.gpoaccess.gov/fr/index.html. Final regulations are organized by agency and program in the Code of Federal Regulations www.gpoaccess.gov/cfr/index.html.
Federal Seed Act — P.L. 76-354 (August 9, 1939) 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 Plant Protection Act of 2000 to authorize the Animal and Plant Health Inspection Service (APHIS) to regulate the importation of field crop, pasture and forage, or vegetable seed that may contain noxious weed seeds. USDA's Agricultural Marketing Service is responsible for enforcing the labeling and purity standard provisions.
Federal Water Pollution Control Act — See Clean Water Act.
Federal-State Marketing Improvement Program (FSMIP) — 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 recently has been funded at just over $1 million annually. www.ams.usda.gov/tmd/fsmip.htm.
Feed ban — Usually a reference to the Food and Drug Administration (FDA) regulations that since 1997 have prohibited the feeding of most mammalian-derived proteins to cattle as a method of preventing the spread of bovine spongiform encephalopathy (BSE). Feeding of infected ruminant material back to ruminants is believed to be the most likely means of transmission of the disease. Exceptions to the FDA ban have existed for mammalian blood and blood products; gelatin; inspected cooked meat products for humans; milk products; and products containing pork and equine (and avian) proteins. On January 26, 2004, FDA officials said they would expand the feed ban by prohibiting, from ruminant feeds, ruminant blood and blood products, poultry litter, and restaurant plate waste. At issue are whether recommendations by some scientific experts to ban additional products from feed are necessary, as some foreign countries do where BSE is much more widespread.
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 commodity program support. They qualify for marketing assistance loans, direct payments, and counter-cyclical payments under the 2002 farm bill (P.L. 101-171, Title I).
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 — Steers or cows mature enough to be placed in a feedlot where they 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 EPA to be concentrated animal feeding operations (CAFOs) and therefore subject to rules requiring permits setting effluent standards for discharges into rivers, streams, lakes.
Feedstuffs — A general term for commercial animal feeds that includes all commercial animal feeds such as silage, hay, feed grains, the many oilseed meals, bone meal, feather meal, beet pulp, grape pomace, etc.
FERM — Forest Ecosystem Restoration and Management.
Fertigation — The application of fertilizer to crops through drip irrigation systems. Both drip irrigation and the application of fertilizer through this system is intended to conserve on the use of these inputs by delivering them to the target crops with minimal loss.
Fertilizer — Any organic or inorganic material, either natural or synthetic, used to supply elements (such as nitrogen (N), phosphate (P2O5), and potash (K2O)) essential for plant growth. If used in excess or attached to eroding soil, fertilizers can become a source of water pollution.
FFA — Future Farmers of America. www.ffa.org.
FFCBFC — Federal Farm Credit Banks Funding Corporation. www.farmcredit-ffcb.com/farmcredit.
FFDCA — Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 et seq.).
FFLI — Fat free lean index.
FGP — Facility Credit Guarantee Program.
FIA — Futures Industry Association. www.fiafii.org.
FICB — Federal Intermediate Credit Bank. (See Federal Farm Credit System)
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. The guide can be viewed electronically at www.nrcs.usda.gov/technical/efotg .
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 (P.L. 103-354). 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.
FIFRA — Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.).
Filter strip — A type of buffer strip that is 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 by settling out. Filter strips reduce erosion and the accompanying stream pollution, and can be a best management practice.
Findley payments — Under the so-called Findley Provision authorized by the Food Security Act of 1985, P.L. 99-198, (and first sponsored by former Illinois Representative 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 were superseded by the marketing loan repayment provisions of the 1996 farm bill (P.L. 104-127).
FIP — Forestry Incentives Program.
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 (APHIS) 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.
Fire protection — Activities that encompass both silvicultural activities to reduce fuels (and thus to reduce the risks and likely damage of wildfires) and fire suppression operations to halt the spread of wildfires. The Forest Service provides fire protection for the national forests and assists with fire protection for non-federal lands through the State Fire Assistance, Volunteer Fire Assistance, and Community Fire Protection Programs.
Fire suppression operations — Activities intended to halt the spread of wildfires, from the outset of a fire (called initial attack) through final control, with the fire being extinguished. Typically, these activities include prescribed burning. Funding, especially in severe fire seasons, may be borrowed from any unobligated funds, which are typically repaid in a supplemental appropriation.
Fish and Wildlife Service (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 migratory birds and endangered and threatened species. It generally works closely with state agencies, which have management primacy for most of these species. It manages the National Wildlife Refuge System, and cooperates with private landowners in habitat conservation. www.fws.gov.
Fish farming — Usually, freshwater commercial aquaculture; catfish farms are an example.
Flaxseed — Flaxseed is one of the "other oilseed" crops eligible for support from marketing assistance loans and loan deficiency payments, direct payments and counter-cyclical payments under the 2002 farm bill (P.L. 107-171, Title I). North Dakota accounts for about 94% of national production (based on 2003 crop data). Flaxseed oil, like other vegetable oils, contains linoleic acid, an essential fatty acid needed for survival. It also contains significant amounts of alpha linolenic acid (ALA), an omega-3 fatty acid, which has caught the attention of health investigators. Linseed oil, a wood finish and preservative, is made from flaxseed. Another type of flax produces fibers used in paper and fabric (linen). Canada is the largest producer and exporter of flax, and is a major supplier to the U.S. market.
FLB — Federal Land Bank.
FLBA — Federal Land Bank Association.
FLCA — Federal Land Credit Association.
FLCRA — Farm Labor Contractor Registration Act (P.L. 88-582; 7 U.S.C. 2041 et seq.).
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 1996 farm bill (P.L. 104-127)effectively provided total flexibility among all commodities, except for fruits and vegetables, and this policy was continued by the 2002 farm bill (P.L. 101-171, Sec. 1106).
Flood Risk Reduction Program — Though authorized, this program was not implemented. The 1996 farm bill (P.L. 104-127) authorized that contract acreage subject to frequent flooding receive up to 95% of transition payments and projected crop insurance payments in lieu of market transition payments. In return, producers would have complied with swampbuster and conservation compliance provisions and forgone future conservation program payments and disaster payments.
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.
FLPMA — Federal Land Policy and Management Act (P.L. 94-579).
Fluoroquinolones — Members of the quinolone group of antibiotics licensed to treat diseases in humans and animals. These are considered to be one of the most valuable antimicrobial drug classes available to treat human infections because of their spectrum of activity, safety, and ease of administration. The use of these types of antibiotics has been approved by the FDA for therapeutic treatment of animals, but is prohibited for extralabel use in food-producing animals because of the possible transmission to humans of resistant microorganisms (21CFR Part 530). In October 2000, the FDA issued a notice proposing to withdraw its approval of the fluoroquinolone antimicrobial enrofloxacin for poultry after determining that its use led to the development of flouroquinolone-resistant Campylobacter, a major foodborne pathogen in humans. As of February 2004, this proposal is in the review process.
FLSA — Fair Labor Standards Act of 1938 (P.L. 75-718; 29 U.S.C. 201 et seq.).
Flue-cured tobacco — A type of cigarette tobacco that along with burley tobacco account for more than 90% of U.S. tobacco production. Flue-cured farming is centered in North Carolina. Production was limited by national marketing quotas and acreage allotments, and was eligible for nonrecourse price support loans until 2005, when the quota buyout program ended these programs (P.L. 108-357, Title VI).
Fluid differential — In federal milk marketing orders, the fluid differential (or Class I differential) is the amount added to the base price of milk to determine a region's minimum price for milk used for fluid (drinking) purposes.
Fluid Milk Processor Promotion Program — A national program authorized by the Fluid Milk Promotion Act of 1990 (Subtitle H of Title XIX of P.L. 101-624, called the 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¢/cwt. 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 program originally required periodic reauthorization by Congress. However, the 2002 farm bill (P.L. 107-171, Sec. 1506) gave the program permanent authority. www.ams.usda.gov/dairy/dairyrp.htm.
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 (P.L. 101-624). Subtitle H authorized the establishment of a national fluid milk processor promotion program, or check-off program for fluid milk promotion. The program is funded through a 20¢/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. The program originally required periodic congressional reauthorization. However, the 2002 farm bill (P.L. 107-171, Sec. 1506) gave the program permanent authority.
FMD — Foot-and-mouth disease.
FMDP — Foreign Market Development Program; Cooperator Program.
FmHA — Farmers Home Administration.
FMI — Food Marketing Institute. www.fmi.org.
FMIA — Federal Meat Inspection Act (21 U.S.C. 601 et seq.).
FMMO — Federal milk marketing orders.
FMV — Fair market value.
FNS — Food and Nutrition Service. www.fns.usda.gov/fns.
FO — Farm ownership loans.
FOB — Free on board.
FOIA — Freedom of Information Act (P.L. 89-554; 5 U.S.C. 552).
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.
Fonterra Cooperative Group — In 2001, the New Zealand Dairy Board (a state trading agency) was merged with two New Zealand dairy cooperatives to form one of the world's top 10 dairy companies, Fonterra Cooperative Group. Fonterra claims to have a third of all international dairy trade, 95% of all New Zealand dairy exports, and to generate 20% of all (agricultural and nonagricultural) export receipts for the country. Fonterra Cooperative is not a state trading agency. www.fonterra.com/default.jsp.
Food additives — Any substance or mixture of substances added to the primary food component during 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 (FDA) safety approval. Food additives are regulated under the authority of the Federal Food Drug and Cosmetic Act (21 U.S.C. 321 et seq.).
Food, Agriculture, Conservation, and Trade (FACT) Act of 1990 — P.L. 101-624 (November 28, 1990) was a 5-year omnibus farm bill. This 1990 farm bill 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 1990 farm bill 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 1990 farm bill (P.L. 101-624) (7 U.S.C. 1725) to review and address issues concerning the effectiveness of regulations and procedures that govern U.S. food aid programs. The 2002 farm bill (P.L. 107-171) extended the authority for the Food Aid Consultative Group through 2007.
Food Aid Convention (FAC) — See International Grains Agreement.
Food and Agricultural Act of 1965 — P.L. 89-321 was the first multi-year farm legislation, providing for 4-year commodity programs for wheat, feed grains, and upland cotton, and is generally characterized as the first farm bill. 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 was an omnibus farm bill. This 1977 farm bill 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 the mid-90s the played a major role in managing the reorganization 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 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 charged with protecting consumers by enforcing the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 et seq.) as it pertains to the safety, wholesomeness, and labeling of food. FDA regulates food additives, inspects food manufacturing companies and food imports (all except for meat and poultry), conducts product sampling for pesticide and other residues, investigates outbreaks of foodborne illness, and sets food labeling standards. FDA also regulates animal feeds and veterinary medicines to ensure their safety for use in livestock that will be slaughtered for eventual human consumption. www.fda.gov.
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 2000, the food and fiber system employed 24.1 million workers, or 17.1% of the U.S. employment, and accounted for $1,264 billion, or 12.8% of the gross domestic product. Farming is one of the smaller components of the system, accounting for 1.2% of U.S. employment and $82 billion in value added to GDP.
Food and Nutrition Service (FNS) — This USDA agency is the federal organization responsible for overseeing virtually all USDA food assistance programs and the USDA's contributions to the establishment of dietary standards. www.fns.usda.gov
Food Code — Published by the Food and Drug Administration (FDA), the Food Code consists of model requirements for safeguarding public health. Local and state food safety agencies commonly use the Food Code as a guide to judging the performance of restaurants, food services, retail food stores, and food vending operations with regard to food safety and quality.
Food Distribution Program on Indian Reservations (FDPIR) — This program provides food commodities and administrative cost assistance through Indian Tribal Organizations that choose to operate a food distribution program as an alternative to the food stamp program. www.fns.usda.gov/fdd/programs/fdpir.
Food donations — The USDA provides food items that it acquires, under its surplus removal and agriculture support authorities, to various food assistance providers--like the schools and emergency food assistance agencies.
Food Emergency Response Network (FERN) — FERN is a network of state and federal laboratories that are committed to analyzing food samples in the event of a biological, chemical, or radiological terrorist attack in this country. The federal partners in the FERN are the FDA, USDA, CDC and EPA. The biological section of the FERN has some overlap with the CDC's Laboratory Response Network (LRN).
Food for Peace Program — A label given to the food donation activities carried out overseas under P.L. 480.
Food for Progress Program (FFP) — A food aid program originally authorized by the Food Security Act of 1985 (P.L. 99-198) 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 Commodity Credit Corporation (CCC) may purchase commodities for use in Food for Progress if the commodities are currently not held in CCC inventory. The 2002 farm bill (P.L. 107-171) extends authority for the FFP through 2007. www.fas.usda.gov/excredits/FoodAid/FFP/ffp.html.
Food guide pyramid — A graphic developed by USDA and first published in 1992 as the consumer guide to implementing the dietary guidelines in their own food choices. The 2005 release, called MyPyramid, translates the principles of the 2005 Dietary Guidelines for Americans and other nutritional standards to assist consumers in making healthier food and physical activity choices. www.nal.usda.gov/fnic/Fpyr/pyramid.html.
Food insecurity — See Food security.
Food label — A food label is a display of written, printed, or graphic matter upon the immediate container (not including package liners) of any food product, and which bears, in accordance with 21 U.S.C. 343(i)(2), the ingredients in the food contained in the package. Food labels are regulated by the Food and Drug Administration (FDA) under the authority of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321 et seq.)and by the Food Safety and Inspection Service (FSIS) under its statutes, for most meat and poultry products.
Food package — This term generally refers to items included in assistance provided by the Special Supplemental Nutrition Program for Women, Infants, and Children (the WIC program), the Commodity Supplemental Food Program (CSFP), or the Food Distribution Program on Indian Reservations (FDPIR).
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 safety initiative — An interagency initiative begun under the Clinton Administration in 1997 to coordinate the activities of the Food and Drug Administration (FDA), the Centers For Disease Control and Prevention (CDC), EPA, and the USDA to reduce the annual incidence of foodborne illness. www.foodsafety.gov.
Food Safety and Inspection Service (FSIS) — A 9,300 employee agency within USDA responsible for ensuring food safety in some 6,000 meat and poultry plants throughout the United States. The agency also has a program to ensure that imported meat and poultry has been inspected under a system at least equivalent to that of the United States. Most of the cost of meat and poultry inspection is borne by the government, in contrast to the costs of border inspection of meat product imports by the Department of Homeland Security (DHS), and inspection and grading related to marketing standards by the Agricultural Marketing Service (AMS) and the Grain Inspection Packers and Stockyards Administration (GIPSA), which are fee-based services. www.usda.gov/agency/fsis/homepage.htm.
Food security, domestic — The degree to which households are "food secure" is surveyed under projects sponsored by the USDA's Economic Research Service. These surveys cover the degree to which American households experienced "food security," "food insecurity," or "hunger"--as originally defined in work done by the American Institute of Nutrition. Food security is defined as access at all times to enough food for an active, healthy life and includes (at a minimum): the ready availability of nutritionally adequate and safe foods and the assured ability to acquire acceptable foods in socially acceptable ways (e.g., without resorting to emergency food supplies, scavenging, stealing, or other coping strategies). Food insecurity is defined as the limited or uncertain availability of nutritionally adequate and safe foods or the limited or uncertain ability to acquire acceptable foods in socially acceptable ways. Hunger is defined as the uneasy or painful sensation caused by a lack of food and the recurrent and involuntary lack of access to food; hunger may produce malnutrition over time and is a potential, although not necessary, consequence of food insecurity. Food insecurity and hunger are surveyed as conditions connected to financial resource constraints, not choice. Food security has taken on an alternate meaning since the terror attacks of 2001, referring to programs and practices designed to protect the food supply from adulteration resulting from acts of terrorism, vandalism, or other crimes. These programs may be enhancements of existing food safety activities, or may be novel programs focused entirely on preventing certain human activities. In this newer context, there are programs for "food safety and security" at FDA and USDA/FSIS. Some of the FDA programs are mandated in the Public Health Security and the Bioterrorism Preparedness and Response Act of 2002, P.L. 107-188. See Agroterrorism, Bioterrorism, Food security, international.
Food security, international — 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 has taken on an alternate meaning since the terror attacks of 2001, referring to programs and practices designed to protect the food supply from adulteration resulting from acts of terrorism, vandalism, or other crimes. These programs may be enhancements of existing food safety activities, or may be novel programs focused entirely on preventing certain human activities. In this newer context, there are programs for "food safety and security" at FDA and USDA/FSIS. Some of the FDA programs are mandated in the Public Health Security and the Bioterrorism Preparedness and Response Act of 2002, P.L. 107-188. See Agroterrorism, Bioterrorism, Food security, domestic.
Food Safety Institute of the Americas (FSIA) — FSIA, based in Miami, Florida, is a cooperative educational and research organization established in 2004 to promote food safety and identify and develop educational programs in the Western Hemisphere. Cooperating organizations include USDA's Food Safety and Inspection Service, Miami-Dade College, the University of Florida, the Pan American Health Organization, and agriculture and food safety agencies in various American countries. www.fsis.usda.gov/Fact_Sheets/FSIA/index.asp.
Food Security Act of 1985 — P.L. 99-198, a 5-year omnibus farm bill, allowed lower commodity price and income supports and established a dairy herd buyout program. This 1985 farm bill made changes 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 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), 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 buy-out) 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). 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 Commodity Reserve — See Bill Emerson Humanitarian Trust.
Food Security Wheat Reserve (FSWR) — Title III of the Agricultural Act of 1980 (P.L. 96-494) 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 1996 farm bill (P.L. 104-127, Sec. 225), which has since been renamed the Bill Emerson Humanitarian Trust. The 2002 farm bill (P.L. 107-171, Sec. 3202) extended the Trust through 2007.
Food Service Management Institute — This permanently authorized institute provides instruction, research, and materials in support of better food service management practices by child nutrition providers receiving federal support. It receives "entitlement/mandatory" funding. www.nfsmi.org.
Food Stamp Act — This law (originally enacted in 1964 (P.L. 88-525) and completely rewritten in 1977 (P.L. 95-113, Title XIII; and with subsequent amendments, 7 U.S.C. 2011 et seq.)) provides authority and "entitlement/mandatory" funding for the regular food stamp program (in the 50 states, the District of Columbia, the Virgin Islands, and Guam), special nutrition assistance block grant programs in Puerto Rico, American Samoa, and the Northern Mariana Islands, and commodity assistance through the emergency food assistance program. The House and Senate Agriculture Committees have jurisdiction over this law; reauthorization normally coincides with the farm bill.
Food Stamp Program (FSP) — This program supplements the food-buying power of eligible low-income households. Eligibility primarily is governed by a household's financial status (income and assets). In general, households with gross income less than 130% of the federal poverty income guidelines are eligible for aid. Benefits are based on their net income--after deductions. States are responsible for operating the program and share half the cost of administration. The federal government is responsible for benefit costs and half of administrative expenses. Funding for this program is "entitlement/mandatory." www.fns.usda.gov/fsp.
Food standards — See Standards of identity for food.
Foodborne illnesses — Human illnesses caused by foodborne pathogens.
Foodborne 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. Meat, poultry, shell eggs, dairy products, seafood, and produce are the foods in which these microorganisms most commonly occur.
Foods of minimal nutritional value — USDA regulations define these as foods that may not be sold in competition with school meals (in food service areas). They include sugar candies, many carbonated beverages, chewing gum, and limited list of certain other items.
Foot-and-mouth disease (FMD) — A major disease of cloven-footed animals (e.g., cattle and pigs) that currently does not exist in the United States. The Animal and Plant Health Inspection Service (APHIS) conducts a surveillance program to track the disease in foreign countries, regulates the importation of animal products from countries where FMD exists, tests imported animals in quarantine, and would lead eradication efforts if FMD were detected in domestic livestock.
FOR — Farmer-Owned Grain Reserve.
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.
Forage — A plant, other than the separated grain, that is grazed or harvested for use as feed for animals. Generally, the term forage includes pasture vegetation, hay, and silage. Forage production is the largest use of land in farms. All types of forage production involves 60 % of land in farms, with pastureland accounting for the most. Pastureland of all types is a combination of cropland pasture, pasture and rangeland, and woodlands pastured.
Foreign Agricultural Service (FAS) — The USDA agency that administers agricultural export and food aid programs. FAS also is responsible for formulating agricultural trade policy, helping negotiate reductions in 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.
Foreign Market Development Program (FMDP) — More commonly called the Cooperator Program.
Forest and Rangeland Renewable Resources Planning Act of 1974 (RPA) — P.L. 93-378 directs the Forest Service to prepare and update an assessment every 10 years: to inventory and monitor the status and trends of all forest lands and range lands; to prepare a long-range plan every 5 years to guide Forest Service policies; and, to prepare interdisciplinary forest plans for units of the National Forest System. Since FY1999, provisions in the annual Interior appropriations acts have prevented completion of the 2000 Resource Planning Act (RPA) assessment.
Forest Ecosystem Restoration and Management (FERM) — System designed to facilitate the recovery or re-establishment of native ecosystems to conditions consistent with their evolutionary environments in order to prevent further degradation and conserve native plants and animals. Related to rehabilitation, reclamation, and bioremediation.
Forest health — A term used for a collection of concerns over 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 combination of tree species in mixed stands).
Forest Land Enhancement Program (FLEP) — The Forest Land Enhancement Program (FLEP) was adopted in the 2002 farm bill (P.L. 107-171, Sec. 8002) as an amendment to the Cooperative Forestry Assistance Act of 1978 (P.L. 95-313; 16 U.S.C. 2101 et seq.). FLEP replaces the Stewardship Incentives Program (SIP) and the Forestry Incentives Program (FIP). FLEP is optional in each state and is a voluntary program for non-industrial private forest (NIPF) landowners. It provides for technical, educational, and cost-share assistance to promote sustainability of the NIPF forests. The law provided FLEP with $100 million from the CCC through FY07. Half of these funds were diverted to wildfire control in 2003, and $40 million of those funds have not been replenished and the spending authority has been cancelled. www.fs.fed.us/spf/coop/programs/loa/flep.shtml.
Forest plans — Land and resource management plans for units of the National Forest System under the Forest and Rangeland Renewable Resources Planing Act (P.L. 93-378) and the National Forest Management Act (P.L. 94-588). The Acts specify a detailed process and numerous requirements, including public participation and periodic revision, intended to achieve multiple use and sustained yield of the national forests.
Forest Service (FS) — The largest USDA agency in terms of employees (35,492 staff years, 31% of the total USDA) responsible for administering the National Forest System, for providing financial and technical forestry assistance to states and to private landowners under State & Private Forestry, and for conducting Forestry Research. The gross value of all Forest Service program activities in FY2003 was $4.945 billion. The Forest Service has been funded in the annual Department of the Interior and Related Agencies appropriations acts since 1955. www.fs.fed.us.
Forest Stewardship Council (FSC) — An international organization that sets standards for sustainable forest management and that accredits other organizations to assess sustainable forest management by forest landowners. www.fscus.org.
Forestland — A classification of land use in the Natural Resources Inventory (NRI). It includes areas where trees that will be at least 13 feet tall at maturity cover at least 10% of the land and must be at least an acre in size. Forestland was found on 407 million acres, almost 30% of all private lands, in the 1997 NRI. Compare with timberland.
Forestry Incentive Program (FIP) — Initiated in 1975 and administered by the Natural Resources Conservation Service, FIP provided financial assistance for up to 65% of the cost of silvicultural activities on nonindustrial private forest land of generally less than 1,000 acres. The program was terminated in the 2002 farm bill (P.L. 107-171), and replaced with the Forest Land Enhancement Program (FLEP).
Forfeiture penalty (sugar) — This refers to a penalty mandated by the 1996 farm bill (P.L. 104-127) on the forfeiture of sugar pledged as collateral by processors for nonrecourse loans from the Commodity Credit Corporation (see Loan forfeiture). The penalty was 1¢/lb. on raw cane sugar, and 1.072¢/lb. on refined beet sugar. This penalty effectively lowered the price support levels by the penalty amount (i.e., for raw cane sugar, from 18¢/lb. to 17¢/lb.). The 2002 farm bill (P.L. 107-171) repealed this provision.
Formula funds — Federal dollars distributed to the land grant colleges of agriculture through formulas found in the Hatch Act (7 U.S.C. 361a et seq.), the Smith-Lever Act (7 U.S.C. 341 et seq.), the McIntire-Stennis Act (16 U.S.C. 582a et seq.), and the Evans-Allen Act (7 U.S.C. 3222) for (1) agricultural research at the state agricultural experiment stations, (2) Extension Service programs, (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.
FPP — Food for Progress Program. www.fas.usda.gov/excredits/FoodAid/FFP/ffp.html.
FPP — Farmland Protection Program, renamed to the Farm and Ranch Lands Protection Program (FRPP).
FPPA — Farmland Protection Policy Act (P.L. 97-98; 7 U.S.C. 4201 et seq.).
FR — Federal Register. www.gpoaccess.gov/fr/index.html.
FR — Final rulemaking.
FRAC — Food Research and Action Center. www.frac.org.
Franc-Zone Africa — Countries in West and Central Africa, all former French colonies, who maintain a common currency, the CFA franc.
Free lunch, breakfast, snack, or milk — This term refers to situations under which the federal government subsidizes meals and requires that the operating agency (e.g., a school or summer food service provider) provide the meal free of cost if the recipient child is from a household with an income below federal income standards, 130% of the federal poverty income guidelines.
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 milk — This term refers to situations under which the federal government subsidizes half-pints of milk served to children in settings that do not offer regular school meal programs, and the provider chooses to offer the milk free of charge to those with household income below federal income standards (below 130% of the federal poverty guidelines). Providers also may receive subsidies for milk for which they charge.
Free on board (FOB or fob) — A commercial trade term indicating that the seller assumes all responsibilities and costs up to the specific point or stage of delivery named (usually a vessel designated by the buyer) including transportation, packing, insuring, etc. A wide variety of fob terms are used, such as fob factor Detroit, fob cars New York, fob ship Norfolk. Free on board vessel, under most P.L. 480 grain contracts, means delivery at the discharge end of the loading spout.
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 snack — This term refers to situations under which the federal government subsidizes snacks (supplements) offered to children in day-care or after-school settings, and the snacks are served free of direct charge to those from households with an income below certain federal income standards (generally, below 130% of the federal poverty guidelines).
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).
Freedom-to-farm — A phrase that was used in the congressional arena to characterize the production flexibility contract provisions of the 1996 farm bill (P.L. 104-127).
Freight density — Thousands of gross ton-miles of freight per mile of railroad owned.
Fresh Fruit and Vegetable Program — See DOD Fresh Fruit and Vegetable Program. www.fns.usda.gov/fdd/programs/dod/default.htm.
FRPP — Farm and Ranch Lands Protection Program, formerly the Farmland Protection Program (FPP).
FS, USFS — U.S. Forest Service. www.fs.fed.us.
FSA — Farm Service Agency. www.fsa.usda.gov/pas/default.asp.
FSCR — Food Security Commodity Reserve. See Bill Emerson Humanitarian Trust (7 U.S.C. 1736f-1).
FSIA — Food Safety Institute of the Americas. www.fsis.usda.gov/Fact_Sheets/FSIA/index.asp.
FSIS — Food Safety and Inspection Service. www.fsis.usda.gov.
FSMIP — Federal-State Marketing Improvement Program. www.ams.usda.gov/tmd/fsmip.htm.
FSP — Food Stamp Program. www.fns.usda.gov/fsp.
FSRIA — Farm Security and Rural Investment Act of 2002, P.L. 107-171; commonly called the 2002 farm bill.
FSU — Former Soviet Union.
FSWR — Food Security Wheat Reserve (P.L. 96-494, Title III). See Bill Emerson Humanitarian Trust (7 U.S.C. 1736f-1).
FTA — Free trade area, or free trade agreement.
FTAA — Free Trade Area of the Americas.
FTE — Full-time equivalent (generally refers to agency staffing levels).
Fuel cell — A device that combines hydrogen (or a hydrogen-bearing compound) with oxygen to produce an electric current. Currently, fuel cells are being studied as a replacement for the internal combustion engine in transportation applications, and as a source of power for stationary applications. Because fuel cells could be used in distributed power systems, there is interest in their use for agricultural applications, as well.
Full-cost water — An annual fee for water delivered from Bureau of Reclamation facilities that 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 (P.L. 97-293). 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. Phosphine is a fumigant often used in stored grain and cargo shipments of grain.
Fumonisin — A mycotoxin that can cause liver and brain damage in horses.
Functional foods — Agribusinesses and consumers increasingly view food not only for its basic nutrition, but also for more specific health benefits. Functional foods and nutraceuticals contain active, naturally occurring components that have shown, or promise to show, physiological benefits or reduced risk of disease, in addition to their traditional nutritional uses. A functional food can be the same as or similar to a conventional food. A nutraceutical is this component isolated from a food and sold in dosage form. Governments, industry, and researchers are keenly interested in nutraceuticals and functional foods both for their potential consumer health benefits and for their ability to help farmers economically. Policy questions revolve around their efficacy, safety and regulation. See Nutraceuticals, and Farmaceuticals.
Fund for Rural America — A fund established by the 1996 farm bill (P.L. 104-127, Sec. 793) to augment existing resources for agricultural research and rural development through an annual transfer of funds from the U.S. Treasury to USDA. The Fund was notable for being the first time that mandatory money (in the form of a mandatory annual transfer to USDA from the U.S. Treasury) was provided for research programs, which traditionally receive discretionary funds as provided annually by Congressional appropriators. One-third of the fund was 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 1996 farm bill (P.L. 104-127) authorized the U.S. Treasury to transfer $100 million annually to the Fund for 3 years, but a recision reduced that to $80 million. The Agricultural Research, Extension, and Education Reform Act of 1998 (P.L.105-185 )extended the authority for the program through FY2003 with an annual transfer to USDA of $60 million. However, the omnibus appropriations law for FY1999 (P.L. 105-277, October 21, 1998) prohibited the expenditure of the $60 million for Fund grants and projects. The program was repealed in 2002 by the 2002 farm bill (P.L. 107-172, Sec. 6043).
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 flow.
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 1996 farm bill (P.L. 104-127)required 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.
FVI — Forage value index.
FW — Farmed wetlands.
FWPCA — Federal Water Pollution and Control Act (Clean Water Act) (33 U.S.C. 1251 et seq.).
FWS — Fish and Wildlife Service. www.fws.gov.
FY — Fiscal year.