ALETA BOTTSAGRICULTURAL POLICY OUTREACH DIRECTOR UNIVERSITY OF KENTUCKY COLLEGE OF AGRICULTUREHARDIN COUNTY FARM BUREAU – MARCH 27, 2013

Federal Agricultural Legislation Update –

Farm Bills, Budgets and Grand Bargains:

Where Do We Go From Here?

Appropriations Process

Farm Bill

“Grand Bargain”

Other Discussions – Regulatory decisions, immigration, and other noncontroversial issues

Source: Congressional Budget Office

Sequester brought on by Budget Control Act Generally 5-8% across-the-board decrease

Includes all programs/payments except crop insurance, Conservation Reserve Program, and SNAP

Continuing Resolution through September 30, 2013

Debt Limit Increase

President’s Budget proposal released just yesterday

Is this “President proposes and Congress disposes”?

A Simplified Overview of Budget Authorization and Appropriations

Process

Congress

President's Budget

BudgetCommittees

AuthorizingCommittees

AppropriationsCommittees &Subcommittees

Tax Committees

OMB andExec. Agencies

Floor

Final Budget Through Conference

Committee(Oct 1)

(Late Jan.)

BudgetResol.(Apr. 15)

Recommendations(March 15)

AuthorizingBills (May 15)

Adopted Budget

Resolution

Appropriations Bills

WHERE THE “FARM BILL” SPENDING GOES

Source: CBO Baseline 2013

The 2008 Farm Bill extended for one crop year.

Commodity Programs Conservation Programs Other Programs

Within Tax Bill

How did we get to January 1 without a farm bill???

FARM BILL ACTION IN 2012

Senate passes the Agriculture Reform, Food, and Jobs Act (ARFJA?) on June 21 by a vote of 64-35.

$970 billion over ten years, $23.1 billion saved

House Agriculture Committee passes the Federal Agriculture and Risk Management Act (FARRM) on July 11 by a vote of 35-11.

$958 billion over ten years, $35.1 billion saved

COMPARISON OF SENATE AND HOUSE NUMBERS

Where does the rubber hit the road?•Commodities•Crop Insurance•Nutrition•Bottom Line Number

WHAT HAPPENED IN 2012?

House Agriculture Committee reports bill

Conference report presented to President for either signature or

veto.

Senate and House conference to resolve differences between the bills

House passes bill on the floor

Senate passes bill on the floor

Senate Agriculture Committee reports bill

Senate passes bill on the floor

House passes bill on the floor

Effect: The simplest one-year “Farm Bill”

Inability to reach

the magic number in the House

Lack of support

where it is most

needed

Election Year

No bills moving

Fiscal Cliff – The

Good and the Bad

THE NEW YEAR’S FARM BILL BABYHow did THIS BILL become the farm bill?

WORKING TOWARD A 2013 FARM BILL

$AVINGSGenerated by the billLessons

Learned in 2012?

Marketing Quota

announcement from USDA

But how much???

COMPARISON OF SENATE AND HOUSE NUMBERS

NEW NUMBERS as of February 2013: Senate bill now saves only $13 billion. House bill now saves only $26.6 billion.

Inability to reach

the magic

number in the House

Lack of support where it is most needed

Election Year

No bills moving

Fiscal Cliff

More Spending Cuts

Spending Cuts Trigger

Debt Limit

Increase

LOOKING AHEAD: SHOULD WE CHANGE THE WAY WE PASS FARM BILLS?

139 Districts

Source: Lexington Herald-Leader, July 28, 2011

“As the urban population has increased, however, the majority of Americans have come to be completely divorced from the land and, as a result, the general public understanding of agriculture and its problems has declined.” by Murray Benedict, 1953, Farm Policies of the United States, 1790-1950

May – Debt limit expected to be hit, with increased needed by July. Negotiations center around additional spending cuts

September 30 – End of the fiscal year

December 31 – Another expiration of farm programs

Farm Labor Issues

Food Safety and Meat Inspection

FINAL THOUGHTS

Policymakers are only as good as the information they are provided and are only as responsive as their constituents demand.

QUESTIONS, COMMENTS, SUGGESTIONS, AND YOUR ANSWERS…

Follow up: aleta.botts@uky.edu or at agpolicy.uky.ag