Four GOP members of the House Agriculture Committee (Chairman, Frank Lucas (Okla.), Randy Neugebauer (Tex.), Marlin Stutzman (Ind.), and Rick Crawford (Ark.)) held a Farm Bill field hearing on Friday at Arkansas State University in Jonesboro, Ark.
At the opening of the hearing, Chairman Lucas pointed out that, “Today, we’ll hear from a wide variety of producers from across the Southeast. I expect we’ll hear a different perspective than we got in the Northeast and Midwest.
“That’s why it’s so important that we offer a choice of policy options. The broad range of agricultural production makes our country strong, but it also creates challenges when we’re trying to write a single Farm Bill to support so many different regions and commodities.”
Naftali Bendavid and Damian Paletta reported in today’s Wall Street Journal that, “The House approved a Republican budget Thursday after a heated two-day debate that underlined the nation’s political divide and forecast a battle at year’s end over an array of scheduled spending cuts and tax increases.”
The article noted that, “The plan almost certainly won’t become law, given opposition by President Barack Obama and Senate Democrats, but both parties say it will help frame the campaign for the White House and control of Congress. Each side is counting on the November election to give them an upper hand in the debate.
“The vote was 228-191, with all Democrats and 10 Republicans opposing the GOP budget.”
Jonathan Weisman reported in today’s New York Times that, “Under the Ryan plan, spending would be cut $5.3 trillion below President Obama’s budget through 2022. Medicare would be reduced by $205 billion. Medicaid and other health programs would be cut $770 billion. Other entitlement programs, including welfare, food stamps, agriculture subsidies and transportation, would be cut by nearly $2 trillion.”
David Rogers reported yesterday at Politico that, “Republicans pushed toward House passage on Thursday of their new budget plan after crushing a bipartisan alternative Wednesday night and smoothing out internal GOP differences over the handling for future funding for disasters.
“Prodded by party leaders, the Budget Committee backtracked from its earlier demands that all such emergency assistance be fully offset within the strict spending caps set in the resolution.”
Pete Kasperowicz reported yesterday at The Hill’s Floor Action Blog that, “The House meets Thursday at 9 a.m., and after taking up a few last alternatives, members will approve the budget resolution offered by House Budget Committee Chairman Paul Ryan (R-Wis.).
“Members rejected three budget alternatives on Wednesday night — that included the 0-414 drubbing of a plan based on the Obama administration’s budget plan.”
Farm Bill: House Agriculture Committee Field Hearing- Illinois
Producers Seek Certainty- While Advising, “Do No Harm.”
After a mild winter and unseasonably warm spring, in which a few Midwestern producers have already started to plant corn, five members of the House Agriculture Committee (Chairman, Frank Lucas (R., Okla.), Leonard Boswell (D., Iowa), Mike Conaway (R., Tex.), Randy Hultgren (R., Il.) and Bobby Schilling (R., Il.)) came to the 17th Congressional District on Friday to hear farm policy testimony from grain and livestock producers as the 2008 Farm Bill’s expiration draws closer.
Producers sought to assist lawmakers in an effort to bring policy clarity and direction in the midst of an increasingly volatile agricultural environment. Illinois farmer David Erickson stated that, “I encourage your continued work to complete the farm bill legislation this year and to make it a five-year program that doesn’t rely on temporary extensions,” while Bill Gerard indicated that, “I’d like to see us pass a five year farm bill this year. We farmers are businessmen, and we depend on the stability and certainty of long term farm policy.” Minnesota farmer John Mages added that, “We need a five year farm bill for the same reason we need long term tax policy. We need to be able to go to the banker and be able to make plans for the future.”
David Rogers reported yesterday at Politico that, “Did no one learn anything from last summer? Did 2011 not happen?
“It can seem that way in Congress these days as Republicans bring their new budget resolution to the House floor next week, hoping to push the reset button on Medicare reform and score a trifecta by rewriting the debt deal struck with President Barack Obama last August.”
Mr. Rogers stated that, “Leading the charge is House Budget Committee Chairman Paul Ryan, who is most passionate about getting Washington refocused on long-range entitlement changes. But to protect himself on the right, the Wisconsin Republican risks taking the House in the opposite direction, back to the same divisive fights over appropriations that consumed much of last year.
“In a single stroke, Ryan would unilaterally lower the spending caps set for 2013, shift billions more to defense than prescribed under the 2011 Budget Control Act and roll back across-the-board spending cuts due in January by substituting a new formula — also designed to shield the Pentagon.”
DTN Markets Editor Katie Micik reported yesterday that, “The commodity title remains the most contentious piece of the farm bill and is making it difficult for the Senate Agriculture Committee to reach an agreement by Memorial Day, Chairwoman Debbie Stabenow said Monday.
“Stabenow, a Michigan Democrat, gave the keynote address Monday at the National Grain and Feed Association annual conference.
“‘I think the biggest challenge is getting the commodity title right because we have so many different regions and so many different commodities that when we move from direct payments to a risk-based model not every commodity has the same access to crop insurance, the same coverage in crop insurance. So we really have to work that through,’ Stabenow told DTN on the sidelines of the meeting.”
Thirteen witnesses in four separate panels testified yesterday at a Senate Agriculture Committee hearing in Washington, D.C. highlighting risk management issues. Lawmakers and producers repeatedly indicated that federal crop insurance has emerged as the cornerstone of the farm safety net and should be preserved from additional budgetary cuts.
As the November elections draw closer, and the legislative calendar moves forward, stakeholders and lawmakers are remaining optimistic that work on an updated farm policy framework will be passed through the Senate Agriculture Committee this spring.
The House Agriculture Committee is expected to follow Senate action; however, farm policy observers have expressed concern that moving the new farm law off of the floor in both chambers could represent a significant challenge. And even if successful, there will likely be differences to iron out between the Senate and House versions of the new law.
Separately, one lawmaker recently suggested that an option to pass the farm bill was to attach it to another piece of legislation.
Katy O’Donnell reported yesterday at National Journal Online that, “At $1.2 trillion, the federal deficit will be $93 billion larger than previously expected in fiscal year 2012, due almost entirely to the cost of a payroll tax cut, the Congressional Budget Office projected Tuesday in its March baseline update.
“The 10-year deficit accumulated by 2022 will fall by $186 billion, according to the CBO.
“The deeper fiscal hole could hurt the GOP’s ability to brag about slashing deficits during election season. But Democrats are unlikely to gain advantage either because they fought against Republican efforts to identify new spending cuts that would offset the cost of the payroll tax cut.”
On yesterday’s AgriTalk radio program with Mike Adams, the topic of crop insurance was a featured part of a discussion with David Graves, the Manager and Secretary of the American Association of Crop Insurers.
To listen to a portion of this conversation with Mike Adams and David Graves, just click here (MP3- 7:57).
During yesterday’s discussion, Dr. Graves explained that, “We now have arrived at a point where a lot of people are pleased with the program, but it doesn’t mean that is the end of the road. There are still opportunities to have the program continue to grow and expand.
“We are aware, specialty crops is an example, have a lot of questions about how it can be extended to them in a more effective way. Crops such as peanuts and rice continue to look at it. I think it is one of those situations where at this juncture, we believe the old phrase, ‘Do no harm,’ should be the order of the day.”
Dr. Graves added that, “The job is not finished, we have come a long way; the program has paid out over $10 billion in indemnities this year without Congress having to fight through ad hoc disaster assistance battles. The moneys were made available to farmers in a very, very short period of time- often as little time as two or three weeks.”
AgriTalk host Mike Adams noted that the executive branch budget proposal for the next fiscal year contained reductions to the crop insurance program. Dr. Graves pointed out that, “Everything that is included in this administration’s budget proposal this time around is of great concern. But, as we all know, these proposals are not new; they have been advanced by this administration in previous years, and frankly, Mike, many of these ideas have been advanced by other administrations in years gone by.
“It is almost as if, invoking an old term we used back in my early days of computer programing, as though the administration is stuck in a ‘do loop.’ And for those who tried to write programing they will understand what that means- you get on a path and you just cannot get off. They are stuck with this general idea that there needs to be something done about the federal budget and that agriculture has got to contribute every time around, and they can’t seem to shed themselves of that simplistic idea.”
The AgriTalk conversation also turned to issues regarding crop insurance premiums and participation, (Related audio, (MP3- 3:25)), as well as to a look at changes in the program for this year (Related audio, (MP3- 0:58)).
At a Senate Agriculture Committee hearing yesterday in Washington, D.C., Secretary of Agriculture Tom Vilsack testified on a variety of Farm Bill issues relating to local food production and nutrition.
At the opening of the hearing, Committee Chairwoman Debbie Stabenow noted that, “Local food programs represent a very small percentage of the Farm Bill, but they make a very big impact in our communities: Creating jobs and improving access to locally grown foods.”
The Michigan Democrat, who is up for reelection this year, emphasized that, “The continued success of the agricultural economy and the continued growth of jobs in agriculture require both, not either or – both- traditional production agriculture, as well as local efforts.” (related audio (MP3- 0:44)).
Chris Clayton reported yesterday at the DTN Ag Policy Blog that, “House Agriculture Committee Ranking Member Collin Peterson told members of the National Farmers Union on Sunday he was optimistic about chances for passing a farm bill this year, but there are hurdles such as a push for steeper cuts in the agriculture budget.
“Peterson, a Democrat from Minnesota, spoke Sunday night as the National Farmers Union opened its 110th annual convention in Omaha.
“The Senate and House Agriculture Committees are operating under the assumption that they will cut $23 billion out of the baseline spending on agricultural programs over the next 10 years. But House Speaker John Boehner, R-Ohio, has not committed to a number and President Obama’s budget proposal last month aimed for closer to $32 billion in agricultural cuts. The president’s budget proposal may push other lawmakers to demand even more cuts from the Agriculture Committees.”
DTN Political Correspondent Jerry Hagstrom reported yesterday that, “Senate Agriculture Committee Chairwoman Debbie Stabenow said Tuesday that she moved up the dates of the last two farm bill hearings so that her committee can move more quickly toward marking up the bill.
“‘We just want a little bit more time to negotiate,’ Stabenow, D-Mich., told reporters after a hearing on conservation, and noting that she would like to finish the markup as soon as possible.
“Senate Agriculture Committee ranking member Pat Roberts, R-Kan., has said he believes the committee will finish its work by Memorial Day.”
An update posted yesterday at the Oklahoma Farm Report Online stated that, “One of the biggest challenges facing Oklahoma Representative Frank Lucas as he works to forge a farm bill is how to get all the disparate groups to pull in the same direction. In an interview with Ron Hays, the House Committee on Agriculture Chairman said the obstacles facing his committee as they work on farm legislation are enormous.
“Lucas said he and Senate Agriculture Food and Forestry Committee Chairman Debbie Stabenow had agreed in December to write legislation anticipating $23 billion in cuts. Since then, the President’s budget shows a $32 billion reduction in spending for farm programs. That budget, declared dead on arrival by both the House and Senate is off the table. Lucas said one proposal for a new budget being floated in the House by Paul Ryan entails $40 billion dollars in cuts.”
(FarmPolicy Note: Recall that the House GOP budget framework from last year contained a total of $178 billion in cuts to agricultural programs over 10 years, a target that was significantly greater than any other of the other comprehensive budget proposals that contained reductions in Farm Bill spending ($10 billion- President’s Fiscal Commission, $11 billion- Gang of Six, $23 billion- House and Senate Ag Committees, $30 billion- Domenici-Rivlin Proposal, and $32 billion- President’s Deficit Reduction Plan). If the House proposal for this year contains a similar level of cuts ($178 billion), which is possible, it could add to the difficulty of reconciling a Senate Farm Bill with a House passed measure).
Yesterday’s Oklahoma Farm Report update noted that, “Lucas said he thinks the action taken by the Senate Ag Committee to accelerate its hearings on the conservation title of the farm bill is a positive step, but given the way Washington works, it may mean little. Questions about the possibility of having a farm bill before Easter, may be optimistic, Lucas said, but Senate Committee Chairwoman Debbie Stabenow ‘wants to move quicker rather than later and she told me early on if she had everything together in her chamber, she would move heaven and earth to get it done. I think there is an indication by moving up those hearing dates that perhaps the pieces are coming together. But that is only speculation on my part.’
“Some of the dissension on how to proceed with a comprehensive farm bill, Lucas said, is differences in approach on how the bill should work. There are those who advocate for a ‘shallow loss’ approach and those who prefer crop insurance as the major policy initiative. With money difficulties on the horizon, Lucas said a bill that provides for both may be difficult to achieve.
“‘That’s the real question, will we have enough money to do both. If you’re going to have cuts that are 30 billion or 40 billion dollars or more, it makes it really, really difficult to do both and you can’t just halfway do one or the other. You’ve got to have both elements if you’re going to have a real safety net as some seem to think by stepping off direct payments.’
“‘I have regions that are more focused on the revenue side of the equation. I have regions that are more focused on the crop side of the equation.’”
To listen to the complete interview yesterday with Ron Hays and Chairman Lucas, just click here.
Paula Peterson reported late last week at the Altus Times Online (Altus, Okla.) that, “With the deficit exploding, [House Agriculture Committee Chairman Frank Lucas (R., Okla.)] said we need a safety net for our food system. This Farm Bill will be different, with a focus on crop insurance. The Direct Payment plan is not ‘do-able’ anymore. Some are talking about having revenue insurance, but that’s hard to make equitable for all regions.
“Lucas said conditions in Washington are not conducive to getting things accomplished right now. The House is controlled by the Republicans, the Democrat President is on the liberal side, and the Senate is 53 to 47.”
On yesterday’s Agriculture Today radio program (The Red River Farm Network) Mike Hergert conducted an interview with House Agriculture Committee Ranking Member Collin Peterson (D., Minn.).
An audio replay of the Red River Farm Network interview is available here (MP3- 8:07), while an unofficial transcript of their conversation is available here.
Farm Bill: Legislative Timing, Budget Variables, Safety Net and Crop Insurance Issues
Late last week, Mike Hergert of the Red River Farm Network spoke with Senate Agriculture Committee Chairwoman Debbie Stabenow (D., Mich.) about the 2012 Farm Bill. In part, their discussion focused on regional issues and the safety net, budget concerns, and legislative timing of the Farm Bill- the full interview can be heard here (MP3- 5:33).
Meanwhile, Agri-Pulse Senior Editor Stewart Doan spoke with Senate Agriculture Committee Ranking Member Pat Roberts (R., Kans.) on this week’s Agri-Pulse Open Mic program.
An Agri-Pulse summary of the discussion indicated that, “The top Republican on the Senate Ag Committee bristles at the suggestion that he’s blocking a legislative fix to a court order requiring EPA to regulate aquatic pesticide applications, and he says the Labor Department’s child labor in agriculture proposal should be withdrawn. Speaking the day after the Senate Ag panel’s first farm bill hearing of 2012, Sen. Pat Roberts says he and Chairman Debbie Stabenow are working in a bipartisan fashion to markup a bill ASAP containing a ‘crop insurance-plus’ commodity title that serves the needs of all of U.S. agriculture.”
To listen to the Open Mic interview with Sen. Roberts, just click here.
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Posted by Keith Good • March, 30, 2012 • 12:59 pm 