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

18%

6%

75%

1%

CommoditiesConservationNutritionOther

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 10.348 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