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ALETA BOTTSAGRICULTURAL POLICY OUTREACH DIRECTOR UNIVERSITY OF KENTUCKY COLLEGE OF AGRICULTUREHARDIN 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
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
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 64-35.
$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 35-11.
$958 billion over ten years, $35.1 billion saved
COMPARISON OF SENATE AND HOUSE NUMBERS
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 BABYHow did THIS BILL become the farm bill?
WORKING TOWARD A 2013 FARM BILL
$AVINGSGenerated by the billLessons
Learned in 2012?
Marketing Quota
announcement from USDA
But how much???
COMPARISON OF SENATE AND HOUSE NUMBERS
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, 1790-1950
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.
QUESTIONS, COMMENTS, SUGGESTIONS, AND YOUR ANSWERS…
Follow up: [email protected] or at agpolicy.uky.ag
