Transcript The Key Changes of Interest to Farmers and Ranchers  Authorizes virtually every USDA program.  Farmers, ranchers – farm programs (16%;

The Key Changes of Interest to
Farmers and Ranchers
 Authorizes virtually every USDA program.
 Farmers, ranchers – farm programs (16%; $24.8 billion), conservation/forestry
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(6%; $9.3 b), trade, research, crop insurance (included in farm program costs);
Nutrition programs – SNAP, WIC, School Lunch, senior programs, nutrition
standards – over 70 ($111.6 b) percent of USDA budget.
Conservation and Forestry programs, both voluntary and regulatory.
Rural Development has broadest mission authorities – build a town from the
ground up.
Research, Education, Extension – Land Grant University System (1862’s; 1890’s;
1994’s, HSI’s).
Food Safety.
Animal and Plant Health and Safety.
 Today, 97 percent of all U.S. farms are family owned.
 Ag Census data counts over 2 million “farmers” – but
roughly 200,000 farmers raise nearly 80 percent of
food, feed and fiber.
 Farming is capital intensive business – bankers want
certainty; farmers need strong risk management tools.
 Conserving natural resources and caring for livestock
essential to sustained economic return.
 Farm Bureau is a general farm organization – we
represent farms of all sizes, all crops and all methods
of production.
 Typically Reauthorized every 5 years.
 Current farm bill expires September 30 (some exceptions).
 New vs. Extension vs. Permanent Law.
 Agriculture’s defense weakened by robust farm economy –
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reformers sense opportunity.
Farm program reforms contribute most of Senate bill’s
savings -- $15 billion of the $23.6 billion over 10 years.
House poised to markup July 11 – savings expected to top
Senate with larger cuts to conservation and nutrition.
Farm and commodity groups still differ on Title I approach.
Is there time?
 Farm Program Changes:
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Eliminates Direct payments, ACRE & SURE;
Replaced with ARC, STAX & SCO;
Program based on actual production – plant for market;
SCO option could strengthen risk management for specialty crops;
Dairy programs eliminated; replaced with insurance approach;
Means testing expanded; limits lowered;
House likely to take different approach on row crops.
 Senate bill consistent with Farm Bureau core principles – not our
preferred approach, but moves process forward.
 Bipartisan vote appreciated – amendment votes highlighted
interesting political alignments.
 Expect similar bipartisan approach in House Committee.
 Conservation Programs consolidated:
 Voluntary working lands programs streamlined;
 Conservation compliance re-linked to crop insurance;
 Not new to program commodities (corn, cotton, feed grains,
soy and other oilseeds, wheat, barley, oats, pulse crops) ;
 Specialty crop growers in for new experience.
 Nutrition reforms aimed at “waste, fraud and abuse.”
 Savings scored at $4 billion;
 Some eligibility criteria tightened to prevent double
accounting of household expenses;
 Tough debate expected in House due to much higher
savings targets.
 Committee Markup July 11.
 May see draft bill late next week.
 House Ag Appropriations on hold.
 Floor time a precious commodity.
 Maybe during lame duck?
 And, again, we need a farm bill completed to provide
certainty.
Dale W. Moore
Deputy Executive Director
Public Policy Division
American Farm Bureau Federation
[email protected]
202-406-3668