1. National Pork Board Pork Management Conference Washington Policy Update June 2014 Chris Wall NPPC Assistant Vice President, Public Policy

2. 2 Presentation Summary  Budget  Elections  Operation 218  PEDv  Unfinished Business RFS MCOOL Tax Reform Min Wage/ Unemployment Insurance  Regulations to Watch Immigration Reform GIPSA USDOT Hours of Service

3. 3  Mid-December: 2013 Budget Agreement: –FY 2014 and FY 2015: Cancelled Automatic Discretionary Spending Cuts –Set Spending Caps for FY2014 & FY2015  First Bipartisan Budget Agreement Reached by a Divided Congress in 27 Years  FY2015 Appropriations Should Be More Regular Order –No Government Shutdown Expected Budget

4. 4  Social Security$813 billion  Defense$651 billion  Medicare$504 billion  Medicaid$267 billion  Interest on the Debt $223 billion Subtotal (71% of Budget)$2.45 trillion FY 2013 Revenues $2.7 trillion FY 2013 Outlays $3.45 trillion $680 billionDeficit  The FY2013 Federal Budget

5. 5  113 th & 114 th will Look Same;  R Majority  House Stable; Senate in Play: Battle For Congress In Senate  D’s Must Defend 14 of 16 Competitive Seats; Need 6 To Win Majority  WV, SD, AL Almost Givens  Arkansas Gone from R Pickup to D Hold  KY Potential D Pickups…Not So Much in GA  Watch NC 2014 Elections Outlook

6. 6  March Special Election Tampa Bay Area:  Jolly (R) 48.4% vs. Sink (D) 46.6%  Half The Voters Than in 2012  R’s Say Repeat of 2010 When D’s Lost House  Then There Was Cantor  House Leadership Better?  Speaker Race Just Got Interesting in 2015 2014 Elections Outlook

7. 7 Operation 218

8. 8 73 Ag Votes in House On a Good Day –77% Of Those Votes Represented By R’s –R’s Represent Less Than Half Of Urban Votes Total –Majority Of Pork Issues Going Through Committees Outside of Agriculture Committee Have To Engage Urban/Suburban Members –Most Of These Are Democrats With No Production –Most Have Historically Opposed NPPC On 1 or More Issues

9. 9 Operation 218 Expanding to Non-Traditional Members –Congressional Black Caucus –Congressional Hispanic Caucus –Women in Congress Identified Champions In Each To Be a Force Multiplier For Pork Entering Into Non-Traditional Issues –Obesity –Immigration –Charitable Giving

10. 10 Operation 218

11. 11 USDA PEDv Program So Far So Good $26.2 Million For: –$7.8 Million for Research, Testing, and Lab Work –$11.1 For Biosecurity Measures –$500,000 For Herd Management Plans Concerns –Protecting Producer’s Privacy –Penalties for Mandatory Reporting Violations

12. 12  GIPSA  MCOOL  RFS Reform  Tax Reform  Immigration Reform  Unemployment/Minimum Wage  USDOT: Hours of Service: Completed!  Farm Bill Implementation:  PEDv Livestock Disaster  Catastrophic Study 113 th Congress: Unfinished Business

13. Post Farm Bill: MCOOL & GIPSA  MCOOL –June WTO Decision –To Appeal or Not –Expanded Coalition Base –Potential Action End of Year  GIPSA –2015 Approps Language in Place –Fewer Congressional Players –Hopefully, Competition Fatigue

14. 14  Challenges for Comprehensive Reform in 2014: –Sen. Baucus (Senate Finance Chairman) Now Ambassador to China – Sen. Wyden New Chair; New Priorities –Rep. Camp (House Ways & Means Chairman) Term Limited as Chair –Last Two Major Reform Efforts (1963 & 1986) Occurred with Strong Presidential Leadership –Release Draft Last Week  Outcome: — Not Likely Until 114 th Congress — Camp Proposal To Lower Corporate & Individual Rates – Must Take Away Popular Credits, Deductions NPPC Pushed to Exempt Pork/Farming Cash Accounting Required  Other Issues: 179 Deductions; Conservation Easements Tax Reform

15. Questions? Chris Wall wallc@nppc.org 202-870-7253 twitter: @cwall1313 wallc@nppc.org