Affecting a Changing Economy
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Transcript of Affecting a Changing Economy
1 | Southern Region PLN Conference | August 24, 2010
Affecting a Changing Economy
SOUTHERN REGION PLN CONFERENCE
2 | Southern Region PLN Conference | August 24, 2010
Presentation Summary• Authorization and Appropriations• Appropriations Situation and Outlook• Appropriations Track Record• Future Appropriations Challenges• 2012 Farm Bill Outlook & Challenges• Politics as Usual?
AFFECTING A CHANGING ECONOMY
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Authorization & Appropriations
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Land-Grant System and USDA• Single largest Federal source of funding for
land-grant ag colleges is U.S. Department of Agriculture (USDA)
• Two USDA agencies fund most agriculture research, education, extension:– Agricultural Research Service (intramural)– National Institute of Food and Agriculture
(extramural)• NIFA provides most land-grant funding
AUTHORIZATION AND APPROPRIATIONS
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NIFA Funding Mechanisms• NIFA funding flows to land-grant universities
via three mechanisms:– Directly to eligible institutions (for capacity
programs) under statutory formulas– Competitively awarded, peer-reviewed grants– Congressional earmarks
AUTHORIZATION AND APPROPRIATIONS
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Authorization and Appropriations• General Rule: USDA funding for land-grant
universities takes two steps:– Programs periodically authorized (Farm Bill) – Funds annually appropriated for each program
• Exception: Four NIFA programs receive “mandatory” funds, meaning no appropriation is required
AUTHORIZATION AND APPROPRIATIONS
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BAA’s Overarching NIFA Objectives• Increase AFRI to reach its full authorized
level by F.Y. 2012• Increase funding to grow all NIFA capacity
programs listed in 2008 Farm Bill• Sustain full funding for mandatory programs
established in 2008 Farm Bill• Funding at no less than F.Y. 2010 level or
President Budget for all other programs
APPROPRIATIONS UPDATE/OUTLOOK
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Current Status• House Agriculture Appropriations
Subcommittee marked up its bill on June 30• Senate Appropriations Committee marked up
its bill on July 15• House Appropriations Committee markup
not yet scheduled
APPROPRIATIONS UPDATE/OUTLOOK
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NIFA Lines Targeted for EnhancementNIFA Budget Line F.Y. 2010 APLU House* Senate
Ag and Food Research Initiative 262.482 428.845 312.400 310.074
Smith Lever 3(b) and 3(c) 297.500 350.000 305.000 297.500
Hatch Act 215.000 240.000 220.00 215.000
Evans-Allen 48.500 55.000 51.000 48.500
1890 Institutions Extension 42.677 50.000 46.700 42.677
McIntire-Stennis 29.000 35.000 29.500 29.000
1994 Institutions Extension 4.321 8.000 5.321 5.321
Total Increase over F.Y. 2010 >> 70.441 48.592
APPROPRIATIONS UPDATE/OUTLOOK
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NIFA Programs with Mandatory FundingNIFA Mandatory Program Authorized APLU House* Senate
Organic Research/Extension 20 20 20 20
Specialty Crops Research 50 50 50 50
Beginning Farmer/Rancher 19 19 19 19
Biomass R&D 30 30 30 30
Total ($Millions) 119 119 119 119
APPROPRIATIONS UPDATE/OUTLOOK
*Tentative (Subcommittee) Results
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Agency / Program Increases (House)*
APPROPRIATIONS UPDATE/OUTLOOK
Agency / Program F.Y. 2010 F.Y. 2011 Change ($M) Change (%)
McGovern-Dole 209.500 266.500 57.000 27.2%
Food and Drug Administration 2,357.089 2,571.282 214.193 9.1%
Farm Service Agency 1,724.847 1,832.515 107.668 6.2%
Food Safety Inspection Service 1,018.520 1,036.900 18.380 1.8%
National Institute of Food & Ag. 1,358.768 1,382.601 23.833 1.8%
Natural Resources Cons. Service 1,008.520 1,012.129 3.609 0.4%
P.L. 480 1,690.000 1,690.000 0 0%
Special Supp. Nutrition Prog. (WIC) 7,252.000 7,127.000 (125.000) -1.7%
Agricultural Research Service 1,250.512 1,219.203 (31.309) -2.5%
Animal Plant Health Inspection Serv. 909.665 884.639 (25.026) -2.8%
Rural Development Programs 2 ,977.877 2,850.221 ( 127.656) -4.3%*Tentative (Subcommittee) Results
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Agency / Program Changes (Senate)
APPROPRIATIONS UPDATE/OUTLOOK
Agency / Program F.Y. 2010 F.Y. 2011 Change ($M) Change (%)
Food and Drug Administration 2,344.656 2,503.849 159.193 6.8%
Natural Resources Cons. Service 1,008.520 1,044.600 36.080 3.6%
Food Safety Inspection Service 1,018.520 1,047.200 28.680 2.8%
Animal Plant Health Inspection Svc. 909.665 931.321 21.656 2.4%
Agricultural Research Service 1,250.512 1,260.825 10.313 0.8%
McGovern-Dole 209.500 209.500 0.000 0.0%
Food for Peace (P.L. 480) 1,690.000 1,690.000 0.000 0.0%
Special Supp. Nutrition Prog. (WIC) 7,252.000 7,252.000 0.000 0.0%
National Institute of Food & Ag. 1,358.768 1,326.108 -32.660 -2.4%
Farm Service Agency 1,724.847 1,659.728 -65.119 -3.8%
Rural Development Programs 2,936.000 2,768.000 -168.000 -5.7%
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Factors Behind the Numbers• House able to “capture” more money through
limitations on mandatory programs• WIC not a “problem” (first time since 1997)• Senate 302(b) allocation $300 M less than
F.Y. 2010
APPROPRIATIONS UPDATE/OUTLOOK
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What’s the End Game?• Great uncertainty surrounds House and
Senate floor debate, joint House-Senate conference, and other “regular order steps”
• Continuing Resolution(s) / Omnibus likely
APPROPRIATIONS UPDATE/OUTLOOK
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Appropriations Track Record
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CSREES / NIFA Appropriated
APPROPRIATIONS TRACK RECORD
$Millions
2002 2008 2009 2010 2011-H 2011-S
1,200
1,600
1,0381,177 1,238
1,359 1,383 1,326
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NIFA Appropriated + Mandatory
APPROPRIATIONS TRACK RECORD
$Millions
2002 2008 2009 2010 2011-H 2011-S
1,000
1,500
2,000
1,0381,177 1,238 1,359 1,383 1,326
30
106117 119 119
NIFA Top LineMandatory
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Growth in 1890 Land-Grant Programs
APPROPRIATIONS TRACK RECORD
$Millions
2002 2008 2009 2010 2011-H 2011-S
50
100
150Evans-Allen1890s Extension1890s Facilities1890s Capacity
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Growth in Key Extension Programs
APPROPRIATIONS TRACK RECORD
$Millions
2002 2008 2009 2010 2011-H 2011-S
300
400Smith-Lever 3(b)(c)EFNEP
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Growth in Key Research Programs
APPROPRIATIONS TRACK RECORD
$Millions
2002 2008 2009 2010 2011-H 2011-S
200
300Hatch ActMcIntire-Stennis
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Growth in NRI / AFRI
APPROPRIATIONS TRACK RECORD
$Millions
2002 2008 2009 2010 2011-H 2011-S
100
200
300
400NRI / AFRI
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Future Funding Challenges
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BAC Priorities, Earmarks, etc.
FUTURE FUNDING CHALLENGES
$Millions
2006 2007 2008 2009 2010 2011-H 2011-S0
500
1,000
1,500
727908
766 814 899 970 948
20217
151 141155 94 94
266 271 275 283305 318 284
BAC PrioritiesEarmarksOther NIFA Lines
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Looking Over the Horizon• 2010 elections loom large; control of both
House and Senate at stake• Political mood across the country is both
anti-incumbent and anti-government• Republicans likely to go after spending in
general and earmarks in specific• Then there’s 2012: Presidential election year
and congressional redistricting
FUTURE FUNDING CHALLENGES
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What’s at Risk for System?• NIFA earmarks likely to remain problematic• Earmark “reductions” not automatically
matched with increases in NIFA capacity or competitive programs
• Agency top line likely to shrink without concerted campaign to maintain what we have and grow strategically
• NIFA mandatory funding also at high risk
FUTURE FUNDING CHALLENGES
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Farm Bill Status & Challenges
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• House Agriculture Committee has already held 12 hearings across the country to review agriculture policy in anticipation of 2012 Farm Bill
• Senate Committee has held one hearing with more planned in coming months
Status of Farm Bill
FARM BILL STATUS & CHALLENGES
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Challenge is Budget, Budget, Budget
FARM BILL STATUS & CHALLENGES
• Likely Best Case Scenario: A “Baseline Bill”– Only Ag Committee baseline funding– No funding from other committees (as occurred in 2008)
• Ag Committees starting in huge hole– No post-2012 baseline for 37 programs/provisions– $9 billion required to provide similar funding through
F.Y. 2017– Reconciliation?
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NIFA Mandatory Funding • Four NIFA programs authorized in 2008
Farm Bill have no baseline beyond F.Y. 2012
FARM BILL STATUS & CHALLENGES
NIFA Mandatory Program F.Y. 2012 Beyond 5-Years*
Organic Research/Extension 20 0 78
Specialty Crops Research 50 0 230
Beginning Farmer/Rancher 19 0 75
Biomass R&D 40 0 118
Total ($Millions) $129 M $0 $501 M
*F.Y. 2008 to F.Y. 2012 Totals
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POLITICS AS USUAL?
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2010 Elections Could Change Everything• Member changes on Agriculture and
Appropriations Committees cause changes in priorities
• 112th Congress will have many “freshmen”, with many ending up on Ag Committee as new Farm Bill drafted
• Republicans could control one or both chambers; Dem. majorities surely reduced
• Budget deficit concerns likely to rise
FARM BILL STATUS & CHALLENGES
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Overview• All 435 Members of House up for reelection• 36 Senate seats up (normally 33-34)• Midterm election often seen as referendum
on President• Strong anti-incumbent mood
– Evident in primary defeats and opinion polls– Failure of government to address “big” issues
(oil spill, deficit spending, economy, terror, etc.)
NATIONAL POLITICAL LANDSCAPE
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State of Play: House of Representatives• Current split: 255 DEM / 178 GOP
• Retiring, defeated, etc: 18 DEM / 22 GOP
• Present CQ outlook:– “Safe” 171 D / 162 R– “Likely” 027 D /008 R – “Leans” 030 D / 08 R
• Leaving 29 “toss up” races
• Some predict up to 100 new House members
• 214-181-40—Not a locker code!
NATIONAL POLITICAL LANDSCAPE
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House Ag Appropriations Subcommittee
NATIONAL POLITICAL LANDSCAPE
Democrats Republicans
Rosa DeLauro (CT)Sam Farr (CA)Allen Boyd (FL) *Marcy Kaptur (OH)Chet Edwards (TX) *Maurice D. Hinchey (NY)Sanford D. Bishop, Jr. (GA)Lincoln Davis (TN) *David R. Obey (WI), Ex Officio *
Jack Kingston (GA)Tom Latham (IA)Jo Ann Emerson (MO)Rodney Alexander (LA)Jerry Lewis (CA), Ex Officio
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State of Play: Senate• Current split: 59 DEM / 41 GOP• Retiring, defeated, etc: 6 DEM / 7 GOP• Present CQ outlook (36 races):
– “Safe” 06 D / 10 R– “Likely” 01 D / 04 R – “Leans” 03 D / 04 R
• Leaving 8 “toss up” races• Senate almost certainly more evenly split
NATIONAL POLITICAL LANDSCAPE
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Senate Ag Appropriations Subcommittee
NATIONAL POLITICAL LANDSCAPE
Democrats Republicans
Herb Kohl (WI) Tom Harkin (IA) Byron Dorgan (ND) * Dianne Feinstein (CA) Richard Durbin (IL) Tim Johnson (SD) Ben Nelson (NE) Jack Reed (RI) Mark Pryor (AR) Arlen Specter (PA) *
Sam Brownback (KS) * Robert Bennett (UT) * Thad Cochran (MS) Christopher Bond (MO) * Mitch McConnell (KY) Susan Collins (ME)
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Senate Agriculture Committee
NATIONAL POLITICAL LANDSCAPE
Democrats Republicans
Blanche Lincoln (AR) *Patrick J. Leahy (VT)Tom Harkin (IA)Kent Conrad (ND)Max Baucus (MT)Debbie Stabenow (MI)Ben Nelson (NE)Sherrod Brown (OH)Robert Casey, Jr. (PA)Amy Klobuchar (MN)Michael Bennet (CO) *Kirsten Gillibrand (NY)
Saxby Chambliss (GA)Richard G. Lugar (IN) Thad Cochran (MS)Mitch McConnell (KY)Pat Roberts (KS)Mike Johanns (NE)Charles Grassley (IA)John Thune (SD)John Cornyn (TX)
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Bottom Line:We face a period of significant budgetary
challenges where protecting what we’ve fought so hard to create in NIFA will take center stage, and where speaking with a single voice will be more important than ever before if we are to continue to be
able to serve our stakeholders.
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