Compiled by the Pennsylvania Farm Bureau and provided through the Pennsylvania Department of Agriculture and the United States Department of Agriculture
Last updated: Summer 2006
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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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Agricultural Acts
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 - The Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127) significantly changed U.S. agriculture policy. It removes the link between income support payments and farm prices by providing for production flexibility contract payments. Now a farmer may receive government payments independent of farm prices. The Act also set up a committee, the Basic Formula Price (BFP) Committee, to study a replacement for the current BFP, and to recommend alternatives for price determination of Class I and Class II milk.
Fair information practices — A set of standards developed in the early 1970s to describe how information should be used and protected; usually stated as eight principles in this country and including openness, individual access, collection limitations, data quality, use limits, disclosure limits, security, and accountability. The agriculture community is starting to consider whether it needs such a set of standards, and whether this set is the best model.
Fair market value (FMV) — The amount in cash, or on terms reasonably equivalent to cash, for which in all probability something might be sold by a knowledgeable owner to a knowledgeable purchaser. Several federal statutes state that the federal government should receive fair market value when exchanging or selling federal lands and resources.
Fallow cropland — Cropland left idle during the growing season, sometimes called summer fallow. It may be tilled or sprayed to control weeds and conserve moisture in the soil. The amount of cultivated summer fallow has ranged between 22 and 32 million acres over the past 10 years, or 7 to 10% of the cropland used for crops.
Family Farm - An agricultural business which (1) produces agricultural commodities for sales in such quantities so as to be recognized as a farm rather than a rural residence; (2) produces enough income (including off-farm employment) to pay family and farm operating expenses, to pay debts and to maintain the property; (3) is managed by the operator; (4) has a substantial amount of labor provided by the operator and family; and (5) may use seasonal labor during peak periods and a reasonable amount of full-time hired labor.
Farm - Any agricultural tract of land, with improvements, that generates $1000 or more in sales can be listed in the U.S. census as a farm. There are 1.9 million farms in the U.S. and 48,000 in Pennsylvania in 1996.
Farm acreage base — The total of the crop acreage bases (wheat, feed grains, cotton, and rice) for a farm for a year, the average acreage planted to soybeans and other non-program crops, and the average acreage devoted to conserving uses (excluding Acreage Reduction Program land). The FAIR Act of 1996 eliminated the need to calculate a farm acreage base.
Farm and risk management (FARRM) accounts — A proposal that would permit farmers and ranchers to put aside money in good (higher-income) years without having to pay taxes on the savings until it is withdrawn at a later time, presumably in lower-income years when taxable income also would be lower. Bills to create these accounts have been introduced in Congress in recent years.
Farm Bill - The omnibus agricultural legislation that expires every four or five years. The Federal Farm Bill provides the funding for all USDA programs.
Farm Credit Administration (FCA) — The independent federal regulator responsible for examining and insuring the safety and soundness of all Farm Credit System institutions. The FCA is governed by a 3-member, Presidentially-appointed board of directors, one of whom serves as chairman.
Farm Credit Banks — Institutions within the Farm Credit System (FCS) that make direct long-term agricultural loans secured by farm real estate through Federal Land Bank Associations. They provide wholesale loan funds to direct FCS lending associations — Production Credit Associations, Federal Land Credit Associations, and Agricultural Credit Associations.
Farm Credit System Assistance Board — A temporary board created by the Agricultural Credit Act of 1987 and responsible for approving Farm Credit System lender requests for federal financial assistance. Members of the Board consisted of the Secretary of Agriculture, Secretary of Treasury (or their appointees), and an agricultural producer with financial experience.
Farm Credit System - The Farm Credit System (FCS) is a nationwide farmer-owned system of lending institutions and affiliated service organizations that provides credit and related services to farmers, farm-owned supply, marketing and processing cooperatives, including agribusinesses, agricultural and aquatic cooperatives, rural utilities and certain foreign or domestic entities.
Farm Credit System Insurance Corporation (FCSIC) — An entity of the Farm Credit System (FCS), established by law in 1987, to insure the timely repayment of principal and interest on FCS debt securities.
Farm equity — The net worth of the farm sector’s assets (i.e., farmland, machinery, equipment, facilities, crop and livestock inventories) against which there is no debt. This represents all farm proprietors’ residual claims to farm assets. Increases in farm equity in the late 1970s became increasingly important for most agricultural producers as a source of additional collateral against which to obtain credit for operating and expansion purposes. The level of farm equity ranges widely from one farm to another. The overall debt-asset ratio is a measure of the farm sectors financial condition.
Farm income — Several measures are used to gauge the earnings of a farming operation over a given period of time: Gross cash income is the sum of all receipts from the sale of crops, livestock, and farm related goods and services as well as all forms of direct payments from the government. Gross farm income is the same as gross cash income with the addition of nonmoney income, such as the value of home consumption of self-produced food and the imputed gross rental value of farm dwellings. Net cash income is gross cash income less all cash expenses such as for feed, seed, fertilizer, property taxes, interest on debt, wages to hired labor, contract labor and rent to nonoperator landlords. Net farm income is gross farm income less cash expenses and noncash expenses, such as capital consumption, perquisites to hired labor, and farm household expenses. Net farm income is a longer term measure of the ability of the farm to survive as a viable income-earning business, while net cash income is a shorter term measure of cash flow.
Farm income and balance sheet — The income statement measures the profitability of a farm business for a particular period of time, usually one year. The balance sheet measures the wealth or financial position of the business at a particular point in time by reporting the farm’s assets, debt, and net worth. The Economic Research Service publishes the income statement and balance sheet of the Nation’s farm sector, and the farm sector financial statement each state.
Farm inputs — The resources that are used in farm production, such as chemicals, equipment, feed, seed, and energy. Most farm inputs are purchased (a change from the days when animals powered most operations), making production costs susceptible to nonfarm economic conditions. Over time, prices of farm inputs have increased relative to commodity prices, creating what farmers describe as a cost-price squeeze. The relationship between prices paid for inputs compared to prices received for output is quantified in the parity ratio.
Farm loan programs of the FSA — Loan programs, administered by the Farm Service Agency (replacing FmHA), providing both direct and guaranteed real estate, operating loans, and direct emergency disaster loans to individuals whose primary business is farming and ranching. Loans are targeted to family farms whose operators are unable to obtain sufficient credit from private commercial lenders on reasonable terms. Under the FAIR Act of 1996, farm lending programs are permanently reauthorized, with new restrictions on the purposes for which loans can be used and on the length of time borrowers are eligible for new credit assistance. Provisions are extended that reserve a portion of loan funds for new and beginning farmers.
Farm labor housing grants — Section 516 grants are available through the Rural Housing Service to qualified nonprofit organizations to providing housing to farm workers.
Farm labor housing loans — Section 514 loans are available through the Rural Housing Service to qualified farm owners for the purpose of providing housing to domestic farm labor.
Farm Operating (OL) Loans — Subtitle B of the Consolidated Farm and Rural Development Act, as amended, authorizes the Farm Service Agency (formerly FmHA) to make direct and guaranteed farm operating loans. Applicants must be family-sized farmers, who are denied credit by private and cooperative sources, and have reasonable prospects for success in the farm operation. Operating loans are made to farmers to help them pay their operating expenses for such productions costs as feed, seed, fertilizer, and pesticides, and to meet other essential operating expenses. The loan limit is $200,000 for a direct loan and $400,000 for a guaranteed loan, and the scheduled repayment is usually over 1 to 7 years depending on loan purposes. The interest rate on direct loans is determined by the Farm Service Agency and does not exceed the federal cost of borrowing plus 1 percentage point. However, loans to "limited resource" borrowers can be made at significantly below market rates. The interest rate on guaranteed loans is negotiated between the borrower and the lender. USDA guarantees the timely repayment of 90% of principal and interest on guaranteed loans, and in some cases can subsidize the interest rate on these loans. The amount USDA can directly lend or guarantee each year is determined in the annual congressional appropriations process.
Farm operator — A person who operates a farm, either by doing or supervising the work or by making the day-to-day management decisions. Nationally, farm operators own about 57% of their land and lease or rent the remainder.
Farm ownership (FO) loans — Subtitle A of the Consolidated Farm and Rural Development Act, as amended, authorizes the Farm Service Agency (formerly FmHA) to make direct and guaranteed farm ownership loans to eligible family farmers. One of the functions of the FO loan program is to assist farmers, especially beginning farmers, in the purchase and enlargement of farms. An eligible borrower must be unable to obtain sufficient credit from a commercial lender, but must assure reasonable prospects of success in the farm operation. Loans are made for up to 40 years and cannot exceed $200,000 for a direct loan, or $300,000 for a guaranteed loan. The interest rate for a direct loan is determined by USDA, and cannot exceed the cost of funds to the Government plus 1 percentage point. However, direct loans to "limited resource" borrowers can be made at significantly below the federal cost of funds. The interest rate on guaranteed loans is negotiated between the borrower and the lender. USDA guarantees the timely repayment of 90% of principal and interest on guaranteed loans, and in some cases can subsidize the interest rate on these loans. The amount USDA can directly lend or guarantee each year is determined in the annual congressional appropriations process.
Farm price — The price that farmers receive for the commodities they market. Sometimes the term farm-gate price is used to emphasize that the price does not include transportation or processing costs.
Farm programs — This term is generally meant to include the commodity programs administered by the Farm Service Agency, as well as the other USDA programs that directly benefit farmers. Some examples of the other programs include farm loans, federal crop insurance, the noninsured assistance program (NAP), the Conservation Reserve Program (CRP), and conservation cost sharing.
Farm size — Although a standard definition is not available, the most common way to measure farm size is by the value of gross farm sales. USDA defines small farms as those having less than $50,000 in sales annually, representing 73% of the 2.1 million farms counted in 1992. It considers the remaining 27% of all farms (with sales of $50,000 or more) to be commercial farms. Although the 558,000 commercial farms counted in 1992 were a relatively small portion of all farms, they accounted for 88% of gross farm sales.
Farm Service Agency - A division of the USDA that oversees the administration of all federal farm programs. Programs include farm commodities, crop insurance, conservation programs and farm loans. Offices are located in strategic counties in every state in the U.S. Formerly known as ASCS, Agricultural Stabilization and Conservation Services.
Farm to retail price spread — The difference between the farm price and the retail price of food, reflecting charges for processing, shipping, and retailing farm goods. The current spread accounts for about three-fourths of the retail price for a market basket of foods, according to USDA. The farm value accounts for about 51% of the retail cost of eggs, compared to 19% for processed fruits and vegetables.
Farmed wetlands — Under the swampbuster program, these are wetlands that were partially drained or altered to improve crop production before swampbuster was enacted as part of the December 23, 1985, farm law. Farmed wetlands may be farmed as they were before the 1985 date, and the drainage that was in place before that date can be maintained, but no additional drainage is allowed.
Farmer Cooperative - A business whose membership is limited to persons producing agricultural and aquacultural products that are marketed by the co-op. They provide business related services, sell farm production supplies, and can process farm products for sale. Cooperatives are regulated by the state and federal government.
Farmer Mac (Federal Agricultural Mortgage Corporation) — Created by the Agricultural Credit Act of 1987 as a federally chartered, private corporation responsible for guaranteeing the timely repayment of principal and interest to investors in a new agricultural secondary market. The secondary market allows a lending institution to sell a qualified farm real estate loan to an agricultural mortgage marketing facility, or pooler, which packages these loans, and sells to investors securities that are backed by, or represent interests in, the pooled loans. Farmer Mac guarantees the timely repayment of principal and interest on these securities and, under authorities granted in 1995, can also serve as a loan pooler.
Farmer-Owned Grain Reserve (FOR) — A program, established under the Food and Agriculture Act of 1977, designed to buffer sharp price movements and to provide reserves against production shortfalls by allowing wheat and feed grain farmers to participate in a subsidized grain storage program. Farmers who placed their grain in storage received an extended nonrecourse loan for at least 3 years. Under certain conditions, interest on the loan could be waived and farmers could receive annual storage payments from the government. The FAIR Act of 1996 repealed this program.
Farmers Home Administration (FmHA) — Formerly an agency of USDA that provided direct and guaranteed credit to family-sized farmers who were denied credit by a commercial lender. The 1994 USDA reorganization transferred FmHA’s farm loan programs to the newly formed Farm Service Agency.
Farmers Market Nutrition Program — Authorized through FY2003 under Section 17 of the Child Nutrition Act of 1966, this program provides funding for grants to selected states that develop programs promoting the use of farmers markets by WIC recipients.
Farmland — Land used for agricultural purposes. The federal government recognizes prime farmland and unique farmland as the most important categories. According to USDA, the United States has had roughly 1 billion acres of farmland. Farmland consists of cropland, pastureland, and grazing land.
Farmland Preservation — A program instituted by a governmental body or land use organization that is designed to ensure the continuation and future use of farms and lands in agricultural production.
Farrow - To give birth to a litter of pigs.
Farrow-to-finish — Typically, a confinement operation where pigs are bred and raised to their slaughter weight, usually 200-250 pounds. Facilities that have 2,500 or more swine are considered by the Environmental Protection Agency to be a concentrated animal feeding operation (CAFO) subject to point source pollution permit requirements.
Fast track authority — A legislative procedure that may be adopted by Congress for considering bills to implement trade agreements. The procedure calls for consultation between the President and Congress as trade agreements are negotiated. Once an implementing bill is introduced, it may not be amended, time for debate is limited, and the bill is subject to an up or down vote. Many agricultural interests support fast track legislation on the grounds that it will facilitate negotiations for enhancing trade and hence possible export markets for farm products.
Fat free lean index — One of several measures of hog quality (in this case, leanness) that can be used in determining value. The index was developed by the National Pork Producers Council, an industry trade group.
Fecal coliform bacteria — Bacteria found in the intestinal tracts of mammals. Their presence in water or sludge is an indicator of pollution and possible contamination by pathogens.
Fed cattle — Animals leaving a feedlot, after fattening on a high protein ration, that are ready to be sold to a packing plant for slaughter. Beef cattle are typically sold to packers at about 1,100 pounds, which yields a carcass weight of about 660 pounds.
Federal Agricultural Mortgage Corporation — An organization more commonly referred to as Farmer Mac, which is a secondary (resale) market for agricultural mortgages. Farmer Mac was authorized by the Agricultural Credit Act of 1987.
Federal Crop Insurance Program - A subsidized insurance program providing producers with tools to manage the risk of production losses resulting from natural disasters. Protection is available on a wide variety of crops. Revenue protection for crops, animals and animal products is available on a whole-farm revenue plan. Coverage choices vary from 50 to 75 percent (limited higher coverages are also available). Program details are available from licensed crop insurance agents (list available at http://www.rma.usda.gov)
Federal Farm Credit Banks Funding Corporation (FFCBFC) — An entity within the Farm Credit System (FCS) that manages and coordinates the sale of system-wide bonds and notes in the national financial markets. Since the FCS, by law, is not permitted to accept customer deposits, these bonds and notes are the FCS’s primary source of loanable funds.
Federal 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) - A Federal law signed into effect in 1947 that requires the registration of pesticide products to ensure that they meet stated health, safety, and environmental criteria. The Environmental Protection Agency (EPA) administers FIFRA. They can cancel registration of any pesticide that does not meet the required criteria, require label changes or order immediate termination of use.
Federal Land Bank Associations (FLBAs) — 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 — 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 Marketing Orders - USDA is authorized to issue marketing orders and agreements for a variety of agricultural commodities and their products. Marketing orders have been established for milk, fruits and vegetables, and other commodities. The order may regulate the handling of products, including limiting quantities, or establishing grade, size, maturity, or quality.
Federal Register (FR) — Each federal working day, this federal document publishes current Presidential orders or directives, agency regulations, proposed agency rules, notices and other documents that are required by statute to be published for wide public distribution. USDA publishes its rules, notices and other documents in the Federal Register. Final regulations are organized by agency and program in the Code of Federal Regulations.
Federal-State Marketing Improvement Program — Sometimes referred to in budget documents as Payments to States and Territories, the program provides matching funds to states for research and innovative projects aimed at identifying new market opportunities for producers or at improving the efficiency of agricultural marketing systems. The program is administered by AMS and has been funded federally at just over $1 million per year recently.
Feed Grain - Any of several grains most commonly used for livestock or poultry feed, such as corn, sorghum, oats, rye and barley.
Feed ratio — The relationship of the cost of feeding animals to their market weight, expressed as a ratio to the sale price of animals, such as the hog/corn ratio. This serves as an indicator of the profit margin or lack of profit in feeding animals to market weight.
Feeder cattle — A steer or cow mature enough to be placed in a feedlot where it will be fattened prior to slaughter. Feeder calves are less than 1 year old; feeder yearlings are between 1 and 2 years old.
Feedlot — A confined cattle feeding facility where feeder cattle (usually less than a year old) are put on higher protein rations to prepare them for slaughter as fed cattle at "good" or better grades. Commercial feedlots of 1,000 head or more are considered by the Environmental Protection Agency to be concentrated animal feeding operation (CAFO) and therefore subject to rules requiring permits setting effluent standards.
FEMA - The Federal Emergency Management Agency maintains facilities in each state in the U.S., and monitors potential disasters, such as flood plains and other areas subject to flooding. It responds when there are natural disasters by coordinating disaster relief programs. It is known as PEMA in Pennsylvania
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 - An organization for high school students studying vocational agriculture. Formerly known as Future Farmers of America, the organization is open to all youths with an interest in agriculture.
Field office technical guide — A manual placed in all Natural Resources Conservation Service district offices and field service centers that gives the technical specifications and guidelines for all approved conservation practices.
Field service agency — Generally refers to any one of the following USDA agencies that administer programs and provide services to farmers and other rural residents through an extensive network of state and local offices: the Farm Service Agency, Risk Management Agency, Natural Resources Conservation Service, Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service. The Foreign Agricultural Service, because of its overseas offices, also is considered a field service agency under the Administrative Convergence plan being developed by USDA in 1998. Although other USDA agencies and mission areas also have field offices nationwide and overseas, they generally are not considered field service agencies by the Department.
Field service center — A centralized location for a variety of USDA agency field offices. These have been reduced in number from about 3,700 to about 2,600 through closures and consolidations initiated as part of a USDA reorganization and streamlining effort mandated by the Department of Agriculture Reorganization Act of 1994. In 1999, USDA was still considering the closure of some additional offices. The centers are intended to provide "one-stop shopping" for clients of the Farm Service Agency, the Natural Resources Conservation Service, and USDA’s rural development agencies.
Filter strip — An area of vegetation, generally narrow and long, that slows the rate of runoff, allowing sediments, organic matter, and other pollutants that are being conveyed by the water to be removed. Filter strips reduce erosion and the accompanying stream pollution, and can be a best management practice.
Findley payments — Under the so-called Findley Provision authorized by the Food Security Act of 1985 (and first sponsored by former Congressman Paul Findley), USDA was able to reduce the basic, formula-set nonrecourse loan rate for major crops by up to an additional 20% if that was necessary to keep the United States competitive in international markets. If done, direct compensatory payments were made to producers equal to the amount of the loan rate reduction. These "Findley Payments," limited to $200,000 per person, essentially added to the larger direct deficiency payment. The Findley provisions are superseded by the marketing loan repayment provisions of the FAIR Act of 1996.
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 endangered and threatened species. It generally works closely with state agencies, which have management primacy for most species. (The federal government has assumed responsibility for marine mammals, migratory birds, and endangered and threatened species). It manages the National Wildlife Refuge System, and cooperates with private landowners in habitat conservation.
Fish farming — Usually, freshwater commercial aquaculture; catfish farms are an example.
Flex acreage — The Omnibus Budget Reconciliation Act of 1990 mandated that deficiency payments not be made on 15% of a farm’s crop acreage base, called normal flex acres. The acreage could be planted to any program crop (called flexing), but not fruits and vegetables. An additional 10% of the farm’s base acreage could be flexed at the option of the operator. Flexing did not diminish the crop acreage base of a farm. The FAIR Act of 1996 effectively provides total flexibility among all commodities, except for fruits and vegetables.
Flood risk reduction program — Provides for contracts for producers on farms that have contract acreage under Title I of the FAIR Act of 1996 that are frequently flooded. Individuals can receive up to 95% of transition payments and projected crop insurance payments in lieu of market transition payments. In return, producers must comply with swampbuster and conservation compliance provisions and forego future conservation program payments and disaster payments. Though authorized, this program has not yet been implemented.
Floriculture - The cultivation and management of ornamental and flowering plants.
Flow to market — A quantity provision in a fruit or vegetable marketing order that does not change the total quantity that can be marketed during a season, but rather controls the rate or time period that quantities can be shipped to markets by means of shipping holidays and prorates.
Flue-cured tobacco — A type of cigarette tobacco, it and burley tobacco account for more than 90% of U.S. tobacco production. Flue-cured tobacco production is limited by national marketing quotas and acreage allotments, and is eligible for nonrecourse price support loans. Flue-cured production is centered in North Carolina.
Fluid differential — In federal milk marketing orders, the Class I differential is the amount added to the basic formula price to determine a region’s minimum price for milk used for fluid (drinking) purposes.
Fluid Milk Processor Promotion Program — A national program authorized by the Fluid Milk Promotion Act of 1990 (Fluid Act) with the purpose of increasing consumption of milk and dairy products and reducing milk surpluses by developing generic advertising programs. The program is funded by a mandatory 20-cent per hundredweight assessment on processors for all fluid milk processed in the contiguous 48 states and marketed commercially. The program is administered by the National Fluid Milk Processor Promotion Board. It should not be confused with the dairy farmer funded Dairy Promotion Program. The FAIR Act of 1996 extends the Fluid Milk Promotion Program through 2002.
Foliar nutrient — Any liquid substance applied directly to the foliage of a growing plant for the purpose of delivering an essential nutrient in an immediately available form.
Food additives — Any substance or mixture of substances other than the basic foodstuff present in a food as a result of any phase of production, processing, packaging, storage, transport or handling. USDA allows food additives in meat, poultry and egg products only after they have received Food and Drug Administration safety approval. Food additives are regulated under the authority of the Federal Food Drug and Cosmetic Act and are subject to the Delaney Clause.
Food Aid Consultative Group — A group created by the FACT Act of 1990 to review and address issues concerning the effectiveness of regulations and procedures that govern U.S. food aid programs. The FAIR Act of 1996 extended the authority for the Food Aid Consultative Group through 2002.
Food and Agriculture Councils (FACs) — These councils were instituted in 1982 by USDA to function as interagency coordinating groups on three levels: national, state, and local. The state FACs are composed of senior level officials of individual USDA agencies within each state, and in recent years they have played a major role in managing the reorganization and "downsizing" of USDA’s field office structure. Local FACs have consisted of USDA representatives at county or area-wide levels; and a national FAC at USDA’s Washington headquarters has served as a liaison with the state and local FACs.
Food and Agriculture Organization of the United Nations (FAO) — A UN organization, founded in 1945, that collects and disseminates information about world agriculture. FAO also provides technical assistance to developing countries in agricultural production and distribution, food processing, nutrition, fisheries, and forestry. The FAO’s Global Information Early Warning System (GIEWS) monitors for famine conditions in regions of risk.
Food and Drug Administration (FDA) — An agency within the Public Health Service of the Department of Health and Human Services. FDA is a public health agency, charged with protecting consumers by enforcing the Federal Food, Drug, and Cosmetic Act and several related public health laws. Importantly for agriculture, a major FDA mission is to protect the safety and wholesomeness of food. In this regard, its scientists test samples to see if any substances, such as pesticide residues, are present in unacceptable amounts, it sets food labeling standards, and it sees that medicated feeds and other drugs given to animals raised for food are not threatening to the consumer’s health.
Food and fiber system — That sector of the U.S. economy that includes agricultural production and all economic activities supporting or utilizing that production, including farm machinery and chemical production, and processing, manufacturing, transportation, and retailing. In 1995, the food and fiber system employed 22.9 million workers, or 17.3% of the U.S. workforce, and accounted for $983 billion, or 13.5% of the gross domestic product.
Food and Nutrition Services - A domestic nutritional assistance program included in the USDA budget. Sixty percent of the USDA budget goes for 15 Federal food assistance programs designed for low-income Americans. They include the Food Stamp program; Women, Infants & Children (WIC); The National School Lunch Program; The School Breakfast Program; The Emergency Food Assistance Program; The Special Milk Program; The Nutritional Program for the Elderly; The WIC Farmers Market program; The Commodity Distribution to Charitable Institutions and to Soup Kitchens and Food Banks, and The Nutritional Assistance Program in Puerto Rico and the Northern Marianna Islands. It also includes Federal Disaster Food Programs.
Food-borne illnesses — Illnesses caused by pathogens that enter the human body where food is the carrier. In order of the incidence of cases, the leading pathogens are Campylobacter (bacteria commonly found in poultry), Salmonella (bacteria commonly found in poultry, eggs, meat, and milk), Shigella (bacteria transmitted through direct contact with an infected person, or from food or water contaminated by an infected person), E. coli 00157 (bacteria often found in cattle and transmitted through undercooked, contaminated ground beef), Yersinia (cause of diarrheal illness known to be most frequently associated with undercooked pork), Listeria (bacteria found in a variety of raw food, such as uncooked meats and vegetables, as well as in processed foods that become contaminated after processing), Vibrio (bacteria that can cause disease in those who eat contaminated seafood or have an open wound that is exposed to seawater).
Food Code — The code, published by the Food and Drug Administration, consists of model requirements for safeguarding public health that may be adopted and used by various parts of local, state, and federal governments, if desired. It is used by officials who have compliance responsibilities for food service, retail food stores, or food vending operations.
Food Distribution Program on Indian Reservations (FDPIR) — This program allows Indian Tribal Organizations to operate a food distribution program as an alternative to the food stamp program for those living on or near an Indian reservation. Eligibility for benefits is the same as that for the food stamp program and funds for the program are drawn from food stamp appropriations. Foods contained in packages include frozen and/or canned meats and poultry, canned fruits and vegetables and juices, dry cereals, cornmeal, flour, butter, macaroni, cheese, evaporated and nonfat dry milk, oats, peanuts and peanut butter, shortening and oils.
Food donations to charitable institutions, soup kitchens, and food banks — Donations of food by the Commodity Credit Corporation to help provide meals to needy people. Foods donated are from agricultural surpluses acquired by USDA as part of its price stabilization and surplus removal activities. Eligible charitable groups range from churches operating community kitchens for the homeless to orphanages and homes for the elderly. Other eligible groups include meals-on-wheels programs, soup kitchens, temporary shelters, correctional institutions offering rehabilitative activities, group homes for the mentally retarded, and hospitals that offer general and long-term health care.
Food for Peace Program — A label given to the food donation activities carried out overseas under P.L. 480.
Food for Progress Program (FPP) — A food aid program originally authorized by the Food Security Act of 1985 to provide commodities on credit terms or on a grant basis to developing countries and emerging democracies to assist in the introduction of elements of free enterprise into the countries’ agricultural economies. Commodities may be provided under authority of P.L. 480 (Title I) or Section 416(b); the CCC may purchase commodities for use in Food for Progress if the commodities are currently not held in CCC inventories. The FAIR Act of 1996 extends authority for the FPP through 2002.
Food guide pyramid — A graphic developed by USDA as the consumer guide to implementing the dietary guidelines in their own food choices. It consists of a six food groups and suggests the foods and number of servings from each group that should be consumed daily. At the bottom is the grains group, of which 6-11 servings should be consumed daily. The next level up contains the vegetable group (3-5 servings) and the fruits group (2-4 servings). The third level contains the dairy group (2-3 servings) and the protein group (2-3 servings). At the top of the pyramid is the group that should be eaten sparingly, which includes fats, oils and sweets. USDA published a Kids’ Food Pyramid in the spring of 1999.
Food package — Generally refers to foods contained in the package of specific items provided to those participating in the WIC program or CSFP. Also may refer to foods distributed by food banks and pantries, and by Indian Tribal agencies distributing commodities in lieu of food stamps.
Food 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 — A 1997 interagency initiative among the Food and Drug Administration, Center For Disease Control, Environmental Protection Agency, and U.S. Department of Agriculture to implement a series of coordinated efforts to reduce the annual incidence of food borne illness and resultant economic losses to consumers and industry by enhancing the safety of the U.S. food supply.
Food Safety and Inspection Service (FSIS) — A 10,000 employee agency within USDA responsible for ensuring food safety in some 6,400 meat and poultry plants throughout the United States; the agency also certifies the safety programs operated for state and foreign plants. Most food safety inspection costs are borne by taxpayers rather than the industry, in contrast to user fees for inspection and grading related to marketing standards.
Food security — Access by all people at all times to enough food for an active healthy life. Food security at a minimum includes the ready availability of nutritionally adequate and safe food, and an assured ability to acquire acceptable foods in socially acceptable ways, that is, without having to resort to emergency food supplies, scavenging, stealing, or other coping strategies. The World Food Summit, convened in Rome in November 1996 by the Food and Agriculture Organization of the United Nations, estimated that 800 million people worldwide do not have enough food to meet their basic nutritional needs. Representatives of the more than 180 nations attending the Summit pledged to work to reduce this number by half by no later than 2015. Causes of food insecurity may include poverty, civil conflict, governmental corruption, environmental degradation, and natural disasters. A U.S. position paper on international (world) food security, released in October 1997, argues that food security also requires "...social and economic conditions which empower individuals to gain access to food, either by producing food themselves or earning income to buy food."
Food Security Wheat Reserve (FSWR) — Title III of the Agriculture Act of 1980 established a reserve of up to 4 million metric tons of wheat for use in meeting emergency food needs in developing countries. This reserve generally was to be used to meet famine or other urgent or extraordinary relief requirements during periods of tight supplies and high prices when commodities are not available under the provisions of P.L. 480. The FSWR was replaced by the Food Security Commodity Reserve under the FAIR Act of 1996.
Food Service Management Institute — This institute provides instruction, research, and materials in support of better food service management practices by child nutrition providers receiving federal support (e.g., schools operating school meal programs). It is permanently authorized under Section 21 of the National School Lunch Act, with an annual entitlement funding level of $3 million.
Food borne pathogens — Disease-causing microorganisms found in food, usually bacteria, fungi, parasites, protozoans, and viruses. The top ten pathogens are: Salmonella; Staphylococcus Aureus; Campylobacter jejuni; Yersinia enerocolitica; Listeria monocytogenes; Vibrio cholerae non-01; Vibrio Parahemolyticus; Bacillus cereus; Escherichia coli - enteropathogenic; and Shigella. Many of these pathogens may be found in contaminated meat, poultry, shell eggs, dairy products, and seafood.
Foot-and-mouth disease (FMD) — A major disease of cloven-footed animals (e.g., cattle and pigs) that does not exist in the United States. The Animal and Plant Health Inspection Service conducts a surveillance program to track the disease in foreign countries, regulates the importation of animal products from countries where FMD exists, and tests imported animals in quarantine.
Forage - Vegetable matter, fresh or preserved, that is gathered and fed to animals as roughage; includes alfalfa hay, corn silage, and other hay crops.
Forage value index (FVI) — A derived index of the relative change in the previous year’s average monthly rate per head for pasturing cattle on privately owned land in the West. Used in calculating federal grazing fees.
Foreign Agricultural Service (FAS) — The USDA agency that administers agricultural export and food aid programs. FAS is also responsible for formulating agricultural trade policy, negotiating to reduce foreign agricultural trade barriers, and carrying out programs of international cooperation and technical assistance. The agency maintains a global network of agricultural officers (counselors and attaches) as well as a Washington-based staff to analyze and disseminate information on world agriculture & 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 health — A term used for a collection of concerns over the alleged deterioration in forest conditions, including both current problems (e.g., insect and disease infestations, wildfires, and related tree mortality) and risks of future problems (e.g., too many small-diameter trees (overstocking), excessive biomass, and an unnatural mix of tree species in mixed stands).
Forest plans — Land and resource management plans for units of the National Forest System under the National Forest Management Act. The Act specifies a detailed process and numerous requirements, including public participation and periodic revision, intended to achieve multiple use in the national forests.
Forest Service (FS) — The largest USDA agency in terms of employees (about 37,000) with responsibility for administering the National Forest System, for providing financial and technical forestry assistance to states and to private landowners under State and Private Forestry, and for conducting Forestry Research.
Forestland — A classification of land use in the Natural Resources Inventory (NRI). It includes areas where trees cover at least 10% of the land and must be at least an acre in size. Forestland was found on 395 million acres, almost 30% of all private lands, in the 1992 NRI.
Forestry Incentive Program (FIP) — Initiated in 1975 as an independent program and currently administered by the Natural Resources Conservation Service, FIP provides financial assistance for up to 65% of the cost of tree planting and timber stand improvement on private forest stands of less than 1,000 acres. Payments are limited to $10,000 per year. More than 4,500 forest owners with 165,000 acres participated in 1995. The program now is authorized under the Cooperative Forestry Assistance Act of 1978, as amended.
Forfeiture penalty (sugar) — A penalty paid to the Commodity Credit Corporation by a processor of sugar beets or sugarcane who, having taken out a nonrecourse loan, decides to hand over sugar pledged as collateral to the CCC rather than accept the then-market price (see loan forfeiture). The penalty is 1 cent/lb. on raw cane sugar, 1.072 cents/lb. on refined beet sugar. Some view this penalty as lowering the price support levels authorized by the FAIR Act of 1996 by the penalty amount (i.e., for raw cane sugar, from 18 cents/lb. to 17 cents/lb.).
Formula funds — Federal dollars distributed to the land grant colleges of agriculture through formulas found in the Hatch Act, the Smith-Lever Act, the McIntire-Stennis Act, and the Evans-Allen Act for (1) agricultural research at the state agricultural experiment stations, (2) extension programs and (3) forestry research at the land grant colleges of agriculture, and (4) research at the 1890 institutions, respectively.
Formula pricing — An arrangement where a buyer and seller agree in advance on the price to be paid for a product delivered in the future, based upon a pre-determined calculation. For example, a packer might agree to pay a hog producer the average cash market price on the day the hogs will be delivered, plus a 2-cent per-pound premium. Such transactions have been used widely in agriculture, particularly for livestock. Users believe that formula pricing brings efficiency and predictability to market transactions. However, as the use of formula pricing expands, fewer animals are sold in cash markets, where prices are more widely reported and understood by producers. Some of these producers believe that formula pricing makes it harder to determine the true value of their animals in the marketplace, and creates greater opportunity for buyers to manipulate and pay lower prices.
Forward Contracting - A method of selling crops before harvest, by which the buyer agrees to pay a specific price to a grower for a portion, or all, of the grower's crop.
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.
4-H - A club for young people (8-19 yrs old) sponsored by the Agricultural Extension Service to foster skills that develop self-esteem, problem-solving, personal development, and global understanding. The program encourages youth to explore science, technology, and citizenship. The 4-H's stand for Head, Heart, Hands, and Health.
Free lunch (or breakfast, snack, or milk) — Refers to a federally subsidized meal (or snacks or half-pint of milk) that is offered under a child nutrition program at no cost to children who apply for and whose family income qualifies them for it. Income eligibility for free meals is set at 130% or less of the federal poverty income level, and substantially higher subsidies generally are provided for these meals than for paid meals, or reduced price meals.
Free market — A system in which the market forces of supply and demand determine prices and allocate available supplies, without government intervention. The concept of a free-market approach in agricultural policy, in its purest form, is no government price and income support programs, supply management programs, export subsidies, or barriers to international trade.
Free rider — In agricultural policy, the term generally refers to a firm or person who benefits from a collectively funded activity (such as a generic advertising and promotion, or check-off, program) without contributing to its costs.
Free stocks — Commodity stocks owned by farmers or others in the trade, rather than by those owned or controlled by the government. (Supplies in the Food Security Commodity Reserve are government-controlled and not considered free stocks.).
Free trade area — A group of countries that have removed trade barriers among the members, but each country may maintain its own trade regime with nonmember countries. The best known current example is the North American Free Trade Agreement (NAFTA).
Free Trade Agreement of the Americas (FTAA) — A proposed multilateral agreement that would establish free trade in all products, including agricultural products, for all the countries of the Western Hemisphere, except Cuba. Launched at the Summit of the Americas in Santiago, Chile, in March 1998, the negotiations to establish the FTAA are expected to be completed by 2005.
Freedom-to-farm — A phrase that was used in the congressional arena to characterize the production flexibility contract provisions of the FAIR Act of 1996.
Full-cost water — An annual rate for water delivered from Bureau of Reclamation facilities, which includes project construction costs attributed to irrigation, as well as outstanding deficits on operation and maintenance charges, with interest on both accruing from October 12, 1982. The term is defined in Section 202 of the Reclamation Reform Act of 1982. The Bureau charges full-cost for water delivered to lands above the acreage limitation.
Fumigant — A vaporized pesticide used to control pests in soil, buildings and greenhouses, and chambers holding products such as fruits to be treated. Methyl bromide is an example.
Fumonosin — A mycotoxin that can cause liver and brain damage in horses.
Fund for Rural America - The 1996 FAIR Act provides funding to augment existing resources for agricultural research and rural development.
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.
Futures Contract - An agreement between two people, one who sells and agrees to deliver and one who buys and agrees to receive a certain kind, quality, and quantity of product to be delivered during a specified delivery month at a specific price.
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.
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