2015 NACS-FSA/NASE National Convention June 28 - July 3, 2015 St. Louis, MO

Scope of Work to Date: Advocacy and Government Affairs Hill Days: April 15 th, September 16 th –Staffing, office closure and program delivery –Efficiency and technology upgrades to modernize FSA field offices –FSA/USDA reorganization (after the passage of the Farm Bill) –Maintain integrity of loan program delivery to ensure quality/uniformity Met with National Farmers Union: October 24 th Provided strategic advice and analysis in the following areas: –Farm Bill 2014 –Agricultural credit, term limits on loans, loan limits –Appropriations

Scope of Work to Date: Advocacy and Government Affairs Hill Day: April 22 nd ‒ Ben Herink, John Gehrke, Brandon Waldron, Bardell Faux, Robert Parris, and Greg Koerner ‒ Met with National Young Farmers Coalition (NYFC) ‒ Met with National Sustainable Agriculture Coalition (NSAC) ‒ Met with American Bankers Association (ABA) Preliminary outreach to National Rural Lenders Association (June 12) NACS 2015 Convention: St. Louis, MO ‒ Media Strategy Brief: Jill Colgan ‒ Legislative Update: Andy Quinn Monitoring of U.S. House of Representatives and Senate Hearings

Outlook for 2015: Potential Issues Increasing loan limits Abolishing term limits on direct loans Downturn in the farm economy and subsequent increase in loan defaults Protecting program integrity and USDA Reorganization

Outlook for 2015/2016: Projected Agenda Meeting with Agriculture groups/Agencies –Western Growers Association, Farm Bureau, Farmer Veteran Coalition (FVC) Develop Proactive Media Strategy Monitor Congressional Schedule for FSA audit hearing (expected late June-mid July)

Proactive Media Strategy: Benefits : Increased visibility of NACS to augment legislative efforts Recruitment and retention of NACS members Strengthen position with the Administration Raise visibility and understanding among producers and industry Mechanics: Inform USDA – maintain positive relationship with USDA Training and Implementation –Choose spokesperson: Ben Herink and John Gehrke –In-house client media training program

Proactive Media Strategy cont.: Main Actions: Pro NACS/FSA Loan program stories –Increase support for the work that NACS members are doing with producers –Target local media/trade press with positive, informative stories Issue targeted stories in support of specific policy issues –For example: raise the issue of direct term limit legislative repeal now for USDA report to Congress in Summer 2015 McAllister & Quinn to draft a specific media plan for each issue –Strategy –Target markets –Messaging More video for NACS websites (Ben and John)

FY 2016 House Agriculture Appropriations: The FY2016 discretionary spending in this bill totals $20.65 billion ($175 million below FY2015 enacted levels and ~$1.14 billion below the FY2016 President’s budget request) Farm and Foreign Agricultural Services Agency Highlights: ‒ For the Office of the Under Secretary for Farm and Foreign Agricultural Services, the Committee provides an appropriation of $893, Appropriation……………..…………………….……………………...……...… ……………...$898, Budget Estimate…………………………………………..…….…………...…………… …....$907,000 Provided in the Bill…………………………………………..……………………...……………… …...$893,000 Comparison: 2015 Appropriation………………..………………………………………………...… ……………... –$5, Budget Estimate…………………………………………………..………...………………... –$14,000

FY 2016 Agriculture Appropriations cont.: Farm Service Agency Salaries and Expenses (Including Transfers of Funds): ‒ For Salaries and Expenses of the Farm Service Agency, the Committee provides an appropriation of $1,183,025,000 and transfers of $309,880,000 for a total program level of $1,492,905,000. Appropriatio n Transfer from Program Accounts Total, FSA S&E 2015 Appropriation $1,200,180,000 $309, 880,000$1,510,060, Budget Estimate $1,185,251,000 $312,873,000$1,498,124,000 Provided in the Bill $1,183,025,000 $309,880,000$1,492,905,000 Comparison 2015 Appropriation -$17,155, $17,155, Budget Estimate -$2,226,000 -$2,993,000-$5,219,000

FY 2016 Agriculture Appropriations cont.: Agricultural Credit Insurance Fund Program Account – Estimated Loan Levels: ‒ For the Agricultural Credit Insurance Fund program account, the Committee provides a loan level of $6,402,114, Loan Level…………………………………………………..………………………….... $6,402,114, Budget Estimate……………………...………………….………………………….... $6,402,114,000 Provided in the Bill…………………………………………….…….………………………... $6,402,114, Loan Level………………………………………………..…….………………………... $6,402,114, Budget Estimate……………………...……………….…………………………….... $6,402,114,000 Provided in the Bill……………………………………………..……………………………... $6,402,114,000

FY 2016 Agriculture Appropriations cont.: Estimated loan levels for the Agricultural Credit Insurance Fund Program Account Farm Loan ProgramsFY 2013 LevelFY 2016 Estimate Committee Provisions Farm Ownership: Direct$1,500,000,000 Unsubsidized Guaranteed $2,000,000,000 Farm Operating: Direct$1,252,004,000 $1,252,0047,000 Unsubsidized Guaranteed$1,393,443,000 Emergency Loans:$34,667,000 Indian Tribe Acquisition Loans $2,000,000 Conservation Loans: Unsubsidized Guaranteed$150,000,000 Indian Highly Fractionated Land $10,000,000 Boll Weevil Eradication$60,000,000 Total$6,402,114,000 $6,401,114,000

FY 2016 Agriculture Appropriations cont.: Estimated Loan Subsidy and Administrative Expenses Levels Direct Loan Subsidy Guaranteed Loan Subsidy Grants Administrative Expenses 2015 Appropriation $63,101,000$14,770, $314,918, Budget Estimate $53,961,000 $14,352,000$2,500,000$317,911,000 Provided in the Bill $53,961,000 $14,352, $314,918,000 Comparison 2015 Appropriation -$9,140,000 -$418, Budget Estimate $2,500,000$2,993,000

FY 2016 Agriculture Appropriations cont.: The following table reflects the costs of loan programs under credit reform: Farm Loan Subsidies:FY 2013 LevelFY 2016 Estimate Committee Provisions Farm Operating: Direct$63,101,000 $53,961,000 Unsubsidized Guaranteed$14,770,000 $14,352,000 Emergency Loans$856,000 $1,262,000 Indian Highly Fractioned Land Individual Development Accounts $2,500, Total$78,727,000 $72,075,000$69,575,000 ACIF Expenses: Salaries and Expenses$306,998,000 $309,991,000$306,998,000 Administrative Expenses$7,920,000 Total, ACIF Expenses$314,918,000 $317,911,000$314,918,000

Contact: Andy Quinn Founding Partner Phone: (202) Web: