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!

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