Farm Bill Spending
It is not an uncommon reaction, when suggesting that federal spending be reduced, to hear a retort which comments that the subsidies paid to farmers should also be cut. When considering the costs of federal government programs and the huge deficit that our elected leaders are deciding we should incur, cuts in all program areas have to be in the mix.
Under normal circumstances the idea is that only the big, rich, (decide whichever additional populists expressions you want to use in order to demean the chosen target) farmers should be impacted by the reductions in government payments. In some materials I've read their are those who say that the entire United States Department of Agriculture (USDA) should be abolished for cost saving and improved government reasons, but that type of a consideration doesn't seem to be a high enough priority for anyone to actually move it forward for action. If it were to be given attention there would be a host of additional government agencies that would also be on the lists for getting rid of as well...
For the sake of getting some type of understanding regarding the money spent under the legislative titles known as the Farm Bill, I offer this pictorial overview of the Breakdown of 2011 Outlays...
Thank you to the American Farm Bureau Federation for providing these additional specifics...
Discretionary spending for 2011 decreased from 2010 spending forcommodities, research, rural development, conservation and marketingaccounts. Discretionary spending for nutrition, forestry andadministration all increased from 2010 to 2011. These discretionaryincreases and decreases do not take into account changes proposed inmandatory spending programs such as the commodity safety net. USDA’sdiscretionary outlays are expected to decrease $1 billion from 2010 to2011, while mandatory outlays are expected to increase $5 billion.
The USDA budget once again makes significant cutsto farm programs. Specifically, the proposal calls for $8 billion incuts to crop insurance over 10 years and reduces both payment limitsand adjusted gross income (AGI) limits. Direct payment limits arereduced from $40,000 to $30,000, and the adjusted gross income limitsfor both on-farm and off-farm incomes are decreased by $250,000 (to$250,000 off-farm and $500,000 on-farm). The payment limit andadjusted gross income cap reductions save $2.3 billion over 10 years.
Thepayment limit and AGI limit changes would require re-opening the 2008farm bill. Farm Bureau strongly opposes re-opening the farm bill, andSenate Ag Committee Chairman Blanche Lincoln (D-Ark.) and House AgCommittee Chairman Collin Peterson (D-Minn.) have both alreadyexpressed their unwillingness to re-open the farm bill.
Thebig winner in the USDA budget was once again nutrition, with a $10billion increase in spending for nutrition programs to improve programaccess, establish higher standards for the nutritional quality of foodsavailable in schools, and explore new strategies for reducing hunger.
Other Highlights Include:
- $54 million in additional discretionary funding for export promotion programs supported by Farm Bureau.
- An increase in funding for EQIP over last year’s enacted levels of spending, but USDA proposes spending $380 million less than the maximum amount permitted under the 2008 farm bill.
- User fees to fund food safety inspections. Farm Bureau opposes these user fees.
- Reduces funding for farm lending programs. Farm Bureau is extremely concerned about these cuts during a time of tightening credit and falling farm incomes.
- $95.3 million to upgrade computer systems for FSA. Farm Bureau supports upgrading these outdated computer systems to provide better service to farmers and ranchers.
- $429 million in competitive grant funding for research focused on climate change, bioenergy, childhood obesity, world hunger, and food safety. While Farm Bureau strongly supports research funding for agriculture, we are concerned that production agriculture is not clearly defined as a priority, while political issues such as climate change are a key areas of focus.
- Fully funds the Voluntary Public Access and Habitat Incentive Program (“Open Fields”) at $50 million, which encourages private landowners to voluntarily open their land to the public for hunting and fishing. Farm Bureau has concerns with this program due to liability issues.
- $479 million to fund the Biomass Crop Assistance Program and $15 million for the Forest Biomass for Energy Program. Farm Bureau supports these efforts as well as research and development efforts for all forms of renewable energy.
Categories: Government
Tags: United States Department of Agriculture Farm Programs Federal Spending
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