Report examines how Affordable Care Act will revive and sustain small towns, farms and ranches

REPORT EMBARGOED UNTIL 6:00 a.m.

Wednesday, July 6, 2011

Lyons, Nebraska - According to a new report to be released July 6, 2011 by the Center for Rural Affairs, nearly 15 million young adults (19-29 years of age) in America are without health insurance. However, the report estimates that over 12 million of that young adult uninsured population will obtain coverage under provisions of the Affordable Care Act. These provisions are especially important for small towns and rural areas.

A full copy of the embargoed report can be viewed and downloaded immediately at:http://files.cfra.org/pdf/heal th-care-young-adults.pdf  and will remain available after the embargo is lifted.

"Access to affordable, quality health insurance means more young adults can stay, return, or relocate to rural communities," said Alyssa Charney with the Center for Rural Affairs and the author of the report.

The report examines how the Affordable Care Act significantly benefits young adults, specifically those in rural areas, with provisions that include the ability to remain on their parents' policies, the creation of health insurance marketplaces, the elimination of pre-existing conditions, and incentives for employers to provide coverage. 

According to Charney's report, of the approximately 7 million rural residents between 20 and 29 years of age, 600,000 will be eligible to remain on their parents' health insurance until age 26 pursuant to the Affordable Care Act. Nationally it is estimated that 3.4 million young adults will be eligible for coverage under this provision. 

"The Affordable Care Act benefits rural young people in ways that extend well beyond individual health and affordability, because supporting the younger generation means supporting our rural communities for generations to come," explained Charney. 

"The places where young people choose to live, the work they pursue, and the passions they follow shouldn't be decided by limitations on how or where to find health insurance. The Affordable Care Act addresses these limitations," Charney added.

Rural communities are quickly declining in population, with many young adults leaving in search of outside opportunities and benefits. However, it would be incorrect to assume that this migration is driven by a lack of desire to live in rural places.

Forty percent of Americans would prefer to live in a rural area or small town, compared to the less than 20 percent who currently do, according to a survey from the National Association of Realtors. 

The author concludes that access to affordable, quality health insurance means more young adults can stay, return, or relocate to rural communities. Young farmers, entrepreneurs, and rural health care providers not only have much to gain from the Affordable Care Act, but they also have valuable skills and knowledge to contribute to rural communities.

This is the 13th report in a series dealing with how health care reform and the Affordable Care Act will impact rural America. Visit http://www.cfra.org/policy/hea lth-care/research  to review or download earlier Center for Rural Affairs health care reports.

In the United States 803 counties are classified as "food deserts," where the average resident of the county lives 10 or more miles from a full-service grocery store. The Great Plains has the highest concentration of "food desert" counties, with 418, and 98 percent of those counties are rural.

Fortunately, USDA has made addressing the food desert challenge a priority for the 2011 Farmers Market Promotion Program. Proposals are due July 1, 2011, which is a tight timeline, but priority will be granted to projects that expand healthy food choices in food deserts.

Moreover, $10 million in funding is available nationally for Farmers Market Promotion grants, which provide an excellent opportunity for market farmers, market gardeners and rural communities to recoup some of the costs of establishing a local farmers market, promoting an existing market or other direct-to-consumer food marketing as well as satisfying the need for fresh, nutritious food in places where people hunger for that access the most.

The Center for Rural Affairs has always tried to assist rural communities with this application process because farmers markets are good for rural communities.  They bring farmers and consumers together to create a stronger local economy, opportunities for farmers and ranchers and they provide consumers with fresh, nutritious, affordable local food. We have been disappointed in the past because too few rural communities have applied for these grants and too few have been awarded grants. However, we are hopeful that prioritization of food deserts will shift that trend.

For more information and how to apply visit -http://www.ams.usda.gov/AMSv1.0/FMPP - or contact John Crabtree at johnc@cfra.org or 402-687-2100. The Food Desert Finder athttp://www.ers.usda.gov/data/fooddesert/fooddesert.html will help you find food desert locations across the country.

###

Center for Rural Affairs applauds introduction of crucial farm program reform 

"This legislation represents the most important step congress can take to strengthen family farms - limit the subsidies that mega farms use to drive smaller operations out of business," said Chuck Hassebrook, Executive Director at the Center for Rural Affairs. "The Act includes measures to close the loopholes in farm payment limitations that others in Washington know how to close but won't, because of the political clout of mega farms."

"There's no problem with a farmer growing his operation, but the taxpayer should not have to subsidize it. There comes a point where some farms reach levels that allow them to weather the tough financial times on their own.  Smaller farms do not have the same luxury, but they play a pivotal role in producing this nation's food," said Senator Grassley in his statement on the Senate floor.

Senator Johnson concurred in his statement, saying, "Farm payments need to be targeted to those who need it, the small and mid-size family farmers in South Dakota and across the nation."

"The original intent of the federal farm programs was not to help the big get bigger.  But, the safety net has veered sharply off course," added Grassley.

According to Hassebrook, the legislation would set a limit of $250,000 for married couples for farm payments in an attempt to better target farm program payments to family farmers.  Specifically, the bill caps direct payments at $40,000; counter-cyclical payments at $60,000; and marketing loan gains - including forfeitures, loan deficiency payments, and commodity certificates - at $150,000.  It also closes loopholes that people are using to maximize their take from the federal government. The bill improves the standard which the Department of Agriculture would use to determine that program recipients are actually farmers who are actively engaged in their operations.

"The bill would tighten rules that are supposed to limit payments to active farmers who work the land and their landlords. Current law is weak. Investors who participate in one or two conference calls are considered active farmers, allowing mega-farms to get around payment limitations by claiming uninvolved investors as partners," explained Hassebrook.

The legislation would save the federal treasury more than $1 billion over 10 years, according to the Congressional Budget Office.

According to the National Sustainable Agriculture Coalition, current law requires a contribution of 1,000 hours of labor on the farm or involvement in its management to receive payments.  However, the vague, unenforceable regulatory standard for "actively managing" farm operations has foiled lawmakers' attempts to target payments to working farmers.  This bill would clarify the definition of management to require ongoing and direct involvement in farm activities to stop the current evasion of payment limits.  Closing the current management loophole is widely viewed by experts as the linchpin to any attempt to stop abusive practices that allow mega farms to receive millions of dollars in taxpayer subsidies.

Senator Grassley has previously championed similar legislation, co-sponsored for many years by former Senator Byron Dorgan (D-ND) and in the last Congress by former Senator Russ Feingold (D-WI).  The bill received strong bipartisan support in the Senate, winning the votes of a majority of Senators in 2002 and again in 2007.  It did not, however, become law...

The bill text can be found here:

http://grassley.senate.gov/iowa/upload/Agriculture-06-09-11-Payment-Limits-Bill-Text.pdf

###