ALETA BOTTS AGRICULTURAL POLICY OUTREACH DIRECTOR UNIVERSITY OF KENTUCKY COLLEGE OF AGRICULTURE HARDIN COUNTY FARM BUREAU – MARCH 27, 2013 Federal Agricultural Legislation Update – Farm Bills, Budgets and Grand Bargains: Where Do We Go From Here?

 Appropriations Process  Farm Bill  “Grand Bargain”  Other Discussions – Regulatory decisions, immigration, and other noncontroversial issues

Source: Congressional Budget Office

 Sequester brought on by Budget Control Act  Generally 5-8% across-the-board decrease  Includes all programs/payments except crop insurance, Conservation Reserve Program, and SNAP  Continuing Resolution through September 30, 2013  Debt Limit Increase

 President’s Budget proposal released just yesterday  Is this “President proposes and Congress disposes”?

A Simplified Overview of Budget Authorization and Appropriations Process Congress President's Budget Budget Committees Authorizing Committees Appropriations Committees & Subcommittees Tax Committees OMB and Exec. Agencies Floor Final Budget Through Conference Committee (Oct 1) (Late Jan.) Budget Resol. (Apr. 15) Recommendations (March 15) Authorizing Bills (May 15) Adopted Budget Resolution Appropriations Bills

WHERE THE “FARM BILL” SPENDING GOES Source: CBO Baseline 2013

The 2008 Farm Bill extended for one crop year.  Commodity Programs  Conservation Programs  Other Programs Within Tax Bill How did we get to January 1 without a farm bill???

FARM BILL ACTION IN 2012  Senate passes the Agriculture Reform, Food, and Jobs Act (ARFJA?) on June 21 by a vote of $970 billion over ten years, $23.1 billion saved  House Agriculture Committee passes the Federal Agriculture and Risk Management Act (FARRM) on July 11 by a vote of $958 billion over ten years, $35.1 billion saved

COMPARISON OF SENATE AND HOUSE NUMBERS  SENATE: $23.1 billion saved $ Title I (Commodities): -$19.4 billion $ Title II (Conservation): -$6.4 billion $ Title IV (Nutrition): -$4.0 billion $ Title VI (Rural Devt): +$115 million $ Title VII (Research): +$681 million $ Title IX (Energy): +$780 million $ Title X (Horticulture): +$360 million $ Title XI (Crop Ins): +$5.04 billion $ Title XII (Misc): -$319 million  HOUSE: $35.1 billion saved $ Title I (Commodities): -$23.6 billion $ Title II (Conservation): -$6.15 billion $ Title IV (Nutrition): -$16.0 billion $ Title VI (Rural Devt): +$105 million $ Title VII (Research): +$546 million $ Title IX (Energy): +$0 million $ Title X (Horticulture): +$435 million $ Title XI (Crop Ins): +$9.5 billion $ Title XII (Misc): +$50 million Where does the rubber hit the road? Commodities Crop Insurance Nutrition Bottom Line Number

WHAT HAPPENED IN 2012? House Agriculture Committee reports bill Conference report presented to President for either signature or veto. Senate and House conference to resolve differences between the bills House passes bill on the floor Senate passes bill on the floor Senate Agriculture Committee reports bill Senate passes bill on the floor House passes bill on the floor  

 Effect: The simplest one-year “Farm Bill” Inability to reach the magic number in the House Lack of support where it is most needed Election Year No bills moving Fiscal Cliff – The Good and the Bad

THE NEW YEAR’S FARM BILL BABY How did THIS BILL become the farm bill?

WORKING TOWARD A 2013 FARM BILL $AVINGS Generated by the bill Lessons Learned in 2012? Marketing Quota announcement from USDA But how much???

COMPARISON OF SENATE AND HOUSE NUMBERS  SENATE: $23.1 billion saved $ Title I (Commodities): -$19.4 billion $ Title II (Conservation): -$6.4 billion $ Title IV (Nutrition): -$4.0 billion $ Title VI (Rural Devt): +$115 million $ Title VII (Research): +$681 million $ Title IX (Energy): +$780 million $ Title X (Horticulture): +$360 million $ Title XI (Crop Ins): +$5.04 billion $ Title XII (Misc): -$319 million  HOUSE: $35.1 billion saved $ Title I (Commodities): -$23.6 billion $ Title II (Conservation): -$6.15 billion $ Title IV (Nutrition): -$16.0 billion $ Title VI (Rural Devt): +$105 million $ Title VII (Research): +$546 million $ Title IX (Energy): +$0 million $ Title X (Horticulture): +$435 million $ Title XI (Crop Ins): +$9.5 billion $ Title XII (Misc): +$50 million NEW NUMBERS as of February 2013: Senate bill now saves only $13 billion. House bill now saves only $26.6 billion.

Inability to reach the magic number in the House Lack of support where it is most needed Election Year No bills moving Fiscal Cliff More Spending Cuts Spending Cuts Trigger Debt Limit Increase

LOOKING AHEAD: SHOULD WE CHANGE THE WAY WE PASS FARM BILLS? 139 Districts Source: Lexington Herald-Leader, July 28, 2011

 “As the urban population has increased, however, the majority of Americans have come to be completely divorced from the land and, as a result, the general public understanding of agriculture and its problems has declined.” by Murray Benedict, 1953, Farm Policies of the United States,

 May – Debt limit expected to be hit, with increased needed by July. Negotiations center around additional spending cuts  September 30 – End of the fiscal year  December 31 – Another expiration of farm programs

 Farm Labor Issues  Food Safety and Meat Inspection

FINAL THOUGHTS Policymakers are only as good as the information they are provided and are only as responsive as their constituents demand.

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