SAFSF Conference Call 2012 Farm Bill: Budget Context & New Policy Building Blocks Ferd Hoefner NSAC...
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Transcript of SAFSF Conference Call 2012 Farm Bill: Budget Context & New Policy Building Blocks Ferd Hoefner NSAC...
SAFSF Conference Call
2012 Farm Bill: Budget Context & New Policy Building
Blocks
Ferd HoefnerNSAC Policy Director
fhoefner@sustainableagriculture.netwww.sustainableagriculture.net
Why the Farm Bill Matters
Funding and policies that impact:
– How food is grown – What kind of food is grown – Who grows it– Health & wellbeing of
farmers, farm workers– Rural communities– Rural landscapes– Environment and natural
resources – Our diets and public health– Food availability worldwide
15 “titles” in 2008 – titles are not static - 5 new ones in 2008 Farm Bill
• Commodity Programs • Conservation• Trade and Food Aid • Nutrition• Credit • Rural Development • Research • Forestry
• Energy (new in 2002)• Horticulture & Organic Agriculture (new in 2008)• Livestock and Competition (new in 2008)• Crop Insurance & Disaster Assistance (somewhat new in
2008)• Commodity Futures (new in 2008)
• Miscellaneous• Trade & Tax Provisions (new in 2008)
– provided rest of bill $14.5 B in new $$ (this last title via Ways & Means and Finance Committees;
unlikely to happen again)
2008 Farm Bill By Title
Farm BillBudget Context
TRIP DOWN
MEMORY
LANE
Distribution of the $73.5 Billion Net Increase in 2002 Farm Bill Spending
65%
23%
9%
1%
2%
1%
Commodity
Conservation
Nutrition
Research
Rural Development
Energy
Distribution of the $14.5 Billion Net Increase in 2008 Farm Bill Spending
26%
46%
1%
5%
5%
9%
Conservation
Nutrition
Rural Development
Energy
Speciality Crop
Disaster
Comparison of Mandatory Conservation Spending 1990, 1996, 2002, and 2008
1.852.2
3.5
4.9
0
1
2
3
4
5
6
1990 FB PerYear Average
1996 FB PerYear Average
2002 FB PerYear Average
2008 FB PerYear Average
Bill
ion
s o
f Do
llars
Total Mandatory Funding for Rural Development, Research, Forestry, Energy, Organic, Beginning/Minority Farmers
1996, 2002, and 2008 Farm Bills
0
300
2000 2000
0
500
1000
1500
2000
2500
All PreviousFarm Bills
1996 FB 6 yeartotal (entirely theFund for Rural
America)
2002 6 yeartotal (includes
IFAFS)
2008 5 yeartotal (excludes
deletion ofIFAFS)
Millio
ns
of
Do
llars
Farm BillBudget Context
Looking onDown
The Road
The 10-Year Budget Baselines for 2011-2020
• $696 billion = SNAP & Nutrition Programs
• [$204 billion = Child Nutrition school meal programs (not Farm Bill)]
• $83 billion = Crop Insurance Subsidies• $65 billion = Conservation Programs• $64 billion = Commodity Subsidies• $16 billion = Everything Else Combined
in Ag Co jurisdiction (not all Farm Bill)(note – these numbers, especially the top two, will change when new budget baseline released by Congressional Budget Office)
Multiple Bites at Farm Bill $$$
1. FY 11 Continuing Resolution
2. FY 12 Appropriations
3. Budget Reconciliation
4. Farm Bill Proper
Off to Rough Start - Approps
• House FY 11 CR – preposterous 22% in USDA/FDA discretionary appropriations– Plus $642 million in cuts to mandatory
conservation and renewable energy programs• Obama FY 12 Budget Proposal – worse
yet on conservation -- $1 billion cut to mandatory conservation programs– While Obama’s proposed conservation cuts in
FY 09 and 10 were largely rejected by Congress, the politics has now shifted
Reaction is Swift• NSAC plays the lead role in analyzing the House
and Senate bill and President’s budget on food & ag
• NSAC organizes letter to Senate opposing the Food and Ag cuts in HR 1; works with Rural Coalition – 154 grassroots and national organizations sign-on
• NSAC helps organize Conservation Coalition letter opposing HR 1 conservation cuts – 35 primarily national green groups sign on
• NSAC helps organize AFRI Coalition letter opposing REE cuts in HR 1 and supporting small AFRI increase in Senate bill – 35 national science and ag groups sign
Outcome Uncertain
• Senate Votes 3/9/11 –56-44 against HR 1–58-42 against Senate
alternative• March 18 deadline – likely to be
extended• Prelude to FY 12• Possible prelude to Budget
Reconciliation
More Multiple Bites
Question #1
WHAT DO THE FOLLOWING YEARS ALL HAVE IN COMMON ???
1982, 1987, 1989, 1990, 1993, 1996,
2005
ANSWER
• In each of those years there were Budget Reconciliation bills (deficit reducing budget cut bills) that reduced Farm Bill spending.
• Two of those occurred simultaneously with the Farm Bill (1990 and 1996)
• Until the 2005 version, most of the budget cuts were to commodity programs, but in 2005 conservation got hit hard.
QUESTION #2
WHAT IS 38 PROGRAMS WIDE & $9 BILLION DEEP?
ANSWER
• The Number of Programs with Direct Mandatory Farm Bill Funding in Current Farm Bill Cycle with No Funding Baseline after 2012
• And the Dollar Value of those programs– Permanent Disaster “SURE” Payments
Accounts for Half of the dollar volume– But also in the mix are ….(next slide)
Zero Baseline Problem
Wetlands Reserve Program Rural Energy for America Program
Grasslands Reserve Program Biomass Crop Assistance Program
CRP-Transition Incentives ProgramValue-Added Producer GrantsRural Micro-Enterprise AssistanceOrganic Data InitiativeNational Organic Certification Cost ShareFarmers Market Promotion ProgramOutreach and Assistance for Minority FarmersBeginning Farmer and Rancher Development
ProgramOrganic Agriculture Research and Extension
ProgramSpecialty Crop Research Initiative
Zero Baseline - Strategy
• Minimize Bleeding• Educate, educate, educate – then:
– Pick and Choose – Consensus if Possible
– Make each case on merits– But also package into a reinvestment
portfolio– Intense focus – PROTECT OUR BASE!
Markers, Trial Balloons, & Strategic Initiatives
• But we also need to get our best shots out there with strategically chosen sponsors to push the envelope
• In some cases, introduce as separate bills for purposes of:– Getting public discussion– Congressional organizing– Grassroots organizing– Creating sense of inevitability where
possible
Beginning Farmer Package
• Work with Vilsack’s “100,000 New Farm” Goal
• Chief Sponsors Already Lined Up• Increase Funding for the Development
Program• Further Improve Credit, Risk
Management, and Conservation Provisions
• Improve Office of Advocacy & Outreach
Local-Regional Food Package
• Win back funding for direct marketing, value-added, organic, micro-lending
• Coordinated set-asides within existing economic development programs for food infrastructure
• Provide new funding avenues food hubs• Create an enterprise facilitation emphasis
within Extension
Conservation Package
• Funding for Wetlands Reserve Program• Perfecting Conservation Stewardship
Program• Putting Tech Ass’t. in Sync with Financial
Ass’t.• Targeting – Project-Based, Resource-
Focused• Streamlining & Consolidation• Climate & Energy• Sodsaver
Rural Community Prosperity Fund
• Dedicated, Flexible $500 Million Fund
• Geared to Poverty, Outmigration, Need
• Inclusive of Regional Food Development
• Half of One Percent of Total Funding
Commodity Reform and Reinvestment Package
• Comprehensive Payment Limit Reform +
• Progressive Counter-Cyclical Reductions =
• Deficit Reduction + Reinvestment Fund
Stay Informed!
www.sustainableagriculture.net
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Farm Bill Implementation Center
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