2012 Farm Bill Update Georgia Soil and Water Conservation District Supervisor Training August 17, 2012

Budget Challenges 2008 Farm Bill (Budget Deficit $438 Billion Dollars) 2012 Farm Bill (Current Budget Deficit $1.1 Trillion) Congress voted to cut $1.2 Trillion by January 1, 2013 Ag Committee was Tasked with $23 Billion in Cuts Must Sustain Cuts by Protecting Safety Net and Integrity of Conservation Programs

Current Farm Bill Spending

Can 2012 Farm Bill Be like 2008? Direct Payments Not Popular and Will be Eliminated in New Farm Bill Brazilian Cotton Case Cotton Must have a New Program Many Farm Groups Call for Expanded Crop Insurance

Senate Version of Farm Bill $23 billion cuts over 10 years $13 billion (Commodity) $6 billion (Conservation), $4 billion (Nutrition) No direct or counter-cyclical payments Expanded crop insurance (ARC) Very little for peanuts STAX for cotton without a reference price.

House Ag Committee Version $35 billion in cuts over 10 years $14 billion (Commodity) $6 billion (Conservation) $16 billion (Nutrition) Includes Price Loss Coverage (PLC) program Wht $5.50, Corn $3.70, SB $8.40, Pnuts $535 STAX Program Includes Ref Price 68 cents/lbs H.R. 872 Language included GFB Supported

Conservation Title in Both Versions Both versions include $6 billion in cuts CRP acres reduced from 32 to 25 million acres EQIP funding $1.65 billion in Senate. $1.75 billion in House WHIP folded into EQIP 60% funds livestock based CSP acres reduced to million a year in Senate. 9 million acres a year in House

Now What? House Leadership Has Avoided Bringing Bill to the Floor Don’t Have the Votes Emotional Political Issue Passed Disaster Relief Package Not Much Time (Sept. 30 Deadline) Elections and Sequestration