Seeking a bigger piece of the pie

Is there any industry, state or city that is not seeking some kind of economic stimulus money from the federal government? Last month California Gov. Arnold Schwarzenegger warned state lawmakers if they didn’t shore up the state’s $24 billion budget deficit that the state would run out of money by the end of July and would be unable to secure the annual loans necessary to keep the state operating. California is not alone.

Declining tax revenues are putting a big hurt on many states. More than 30 states have raised taxes or are considering tax increases to balance their budgets. Numerous states have already raised taxes on alcohol and cigarettes. But in some states the revenue shortfalls have gotten so bad that raising sales and personal income taxes are now up for discussion among lawmakers.

Expanding the ornamentals market
Even as states struggle to balance budgets by cutting programs and raising taxes, the federal government appears to have plenty of money to go around. USDA has announced that $49 million in specialty crop block grants are now available for application for fiscal year 2009. The amount of funding is scheduled to increase to $55 million in the next fiscal year.

The Specialty Crop Block Grant Program assists state departments of agriculture in enhancing the competitiveness of U.S. specialty crops, including floriculture and nursery crops. USDA-Agriculture Marketing Service has developed a list of issues that qualify for grants, including increasing crop consumption (something our industry desperately needs), improving distribution system efficiency (something our industry desperately needs), developing new and improved seed varieties, organic research, pest and disease control and sustainability. Grant applications are being accepted through Aug. 26, 2009. John Esser, executive secretary of the Commercial Flower Growers of Wisconsin, said the organization is submitting applications for two grants. One project is for field and container vegetative annual trials, field-grown cut flowers and organic fertilizers. The other is to develop a state greenhouse/garden center location map and Web site for residents and tourists.

California Cut Flower Commission executive director Kasey Cronquist said his organization along with the rest of the state’s commodity commissions and marketing boards are competing heavily for these dollars. He said since the funding has become available, CCFC has submitted at least five applications and received funding for one project last year.

 For more: Specialty Crop Block Grant Program, (202) 690-4942, http://edocket.access.gpo.gov/2009/E9-12094.htm.