Ag Policy, Lecture 4 Knutson 6th Edition, Chapter 2 & 3

Policy Process, Theories and Concepts

Policy Process, Specifics

The U.S. Policy Process

A lot like making sausage Why? Many different players

− Congress− Special interests− Constituents− Whiners− Academics

Have to understand the process if you want to influence policy

Ex. Information is good to a point

05

Critical Policy Questions

• What is ?– Facts, observation

• What should be?– Value judgments, normative

• What can be?– What are politics?– Can it be done?

• What will be?– Predictions

Economic Theory of Public Choice

Private Choices Key principles:

− All resources are scarce or limited− Assumes rational behavior− Prices signal consumption and production decisions

Public Choices Key principles:

− 1 & 2 above but votes are the market signals of public choice instead of price

Trade-offs (i.e. log rolling, horse trading) on an issue by issue basis

Process

Issue/Problem

Facts

Values

Myths

Policy Decision

Programs

GovernmentProcess

Facts

Known with Certainty Objectively Proven

• Rational people tend to agree on facts• But may not agree on the relevance or

importance

Myths

Agrarian Myths• Economic prosperity depends on agricultural

prosperity• Rural community well-being depends on farmer well-

being• Land is the source of all wealth• Farm programs are good food programs• Farmers are environmentalists

What do you think? Can a myth be true? Myths are popular. What people want to hear.

Become part of policy rhetoric. Do not have to be true to affect policy.

Values

Jefferson Agrarianism Values• Agriculture is the basic occupation of mankind• Rural life is morally superior to urban life• A nation of small, independent farmers is the

proper basis for a democratic society Are these true? Can they be proven? Do

we still hold these values?

The war on Terrorism?• Torture• Patriot Act

Political Spectrum

Liberal Conservative(more government) (less government)

Influence Triangle

Kingmakers

Kings

Active group

Interested group

Apatheticgroup

Politics of the Minority

Find allies issue by issue. Not philosophy by philosophy

Build coalitions, compromise, find common ground

Be positive, reasonable, work within system

Base case on facts, not myths or emotions

Adopt non-partisan strategy

Where is The Power in Agricultural and Food

Policy?• Government

– Executive Branch– Legislative Branch– Judicial Branch

• Other Organizations– General farm organizations– Commodity organizations– Agribusinesses– Public interest groups

• Other departments and agencies

Chapter 3 Knutson, Penn, and Flinchbaugh

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Executive Branch

President

VP

Cabinet

CEA

Cabinet

• Vice President• Heads of 15 Executive Departments• Attorney General• Under G.W. Bush also includes

– EPA– OMB– National Drug Control Policy– USTR

Executive Departments• Agriculture (USDA)• Commerce (DOC)• Defense (DOD)• Education • Energy (DOE)• Health & Human Services (HHS)• Homeland Security • Housing & Urban Development (HUD)• Interior (DOI)• Justice (DOJ)• Labor (DOL)• State (DOS)• Transportation (DOT)• Treasury• Veteran Affairs

Agriculture’s Iron Triangle

Interest Groups

USDASecretary of Agriculture

Legislative

Branch

Structure of USDA

NASS

Secretary

Deputy

Food, Nutrition & Consumer Services

FNS CNPP

Food SafetyFSIS

Farm & Foreign Ag Services

FSA

FAS

RMA

Marketing & Regulatory ProgramsAMS APHIS GIPSA

Rural Development

RBSOCD RHS RUS

Natural Resources & Environment

FS NRCS

Research, Education & Economics

ARS CSREES

ERS

Legislative Branch

• “All Legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.” Article I, Section 1

• Membership– House

• 435 elected for 2 year terms• Census determines number from each state• Continually seeking re-election

– Senate• 100 elected for 6 year terms

Functions of Congress

• Authorization (legislation/programs)

• Appropriation (who gets what?)

• Oversight (chastise Executive)

How a Bill Becomes a LawConstituentsCongress

Executive/DepartmentsPolicy Proposals

SubcommitteeHearings <> Mark-up

CommitteeDebate <> Approval

Floor

Debate <> Amend <> Approval

Conference CommitteeHammer out differences between House & Senate

Floor Approval in Both

PresidentSign <> Veto <> Pocket Veto

House and/or Senate

Committee

Also referred to as the third chamberConferees work out differences

“Enrolled”

If signed becomes effective immediately2/3 vote in both houses can override veto

Executive Communication

Majority vote

Have to be offered by a memberHouse – bin or hopper, Senate - clerk

Senate debate is unlimited may speak at any length on any subjectAny senator can stop debate with a Filibuster

Can “table” killing it at once

Floor of other ChamberDebate <> Amend <> Approval

A Simplified Overview of Budget Authorization and Appropriations

Process

Congress

President's Budget

BudgetCommittees

AuthorizingCommittees

AppropriationsCommittees &Subcommittees

Tax Committees

OMB andExec. Agencies

Floor

Final Budget Through Conference

Committee(Oct 1)

(Late Jan.)

BudgetResol.(Apr. 15)

Recommendations(March 15)

AuthorizingBills (May 15)

Adopted Budget

Resolution

Appropriations Bills

Majority is really important

• Elects leadership of Congress (control agenda)

• Has majority membership of committees and subcommittees

• Elects chairs of committees and subcommittees (control agenda)

• Has the most staff

Interest Groups

Key part of iron triangle

Interest Groups

USDA Congress

More often than not, the well organized interest groups are the ones that get the attention of USDA and/or Congress

Farm Organizations

• General farm/agribusiness organizations– American Farm Bureau Federation– National Farmers Union

• Commodity organizations– National Corn Growers– National Cotton Council– Every commodity has one, and some have

multiple

All other things equal, the more specific the cause/interest, the more effective the group.

But all other things are seldom equal!

Commodity Organizations

• Most effective organizations in agriculture because of focused commodity interests

• Most effective are those that represent an entire industry (National Cotton Council [NCC])

• Beef has had conflicts among cattlemen and cattle feeders (NCBA)

• If producer organization goes head-to-head with agribusiness, agribusiness normally wins (ex., packers in beef)

• Almost always have related state organizations

• Party alignment is an interesting issue

Public Interest Groups

Typically focus on only 1 issue• Environment (Sierra Club, National

Resources Defense Council, Environmental Working Group)

• Hunger lobby (Bread for the World)• Animal rights (P.E.T.A.)• Consumer lobby (CFA, CW, CU, Center

for Science in the Public Interest)

Agribusinesses/Trade Associations

• Restaurant Associations• Equipment dealers• Chemical Applicators• International Dairy Foods Association

• Conceptual Theories of How Policy is formed• Specifics

– Structure of Government– How a bill becomes a law– Where is the power and influence

• All material Chapters 1 – 3

• Next Class – Trade, International StageChapters 4, 5, & 6

Lecture 4, Wrap up