Farm Bill Workshop & GOVERNMENT Affairs Meeting
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NATIONAL COUNCIL OF FARMER COOPERATIVES 2 0 WASHINGTON 1 7 CONFERENCE JUNE 26-28, 2017 HYATT REGENCY WASHINGTON, DC Farm Bill Workshop & GOVERNMENT aFFAIRS mEETING Farm Bill Workshop: Agenda NCFC Washington Conference Farm Bill Workshop Hyatt Regency Hotel Washington, DC June 26, 2017 AGENDA Columbia A/B Room 7:30 AM Registration Open & Breakfast Served 8:00 AM Welcome & Introductions 8:05 AM Balancing Priorities Against a Challenging Baseline Guest Speaker: Jonathan Coppess Clinical Assistant Professor University of Illinois 8:50 AM Crop Insurance & Risk Management Guest Speaker: Tara Smith Torrey & Associates 9:20 AM Priorities for Commodities, Specialty Crops & Livestock Guest Panelist: Sam Willett National Corn Growers Association Reece Langley National Cotton Council Ben Mosely USA Rice Federation John Hollay National Milk Producers Federation Robert Guenther United Fresh Produce Association Bill Davis National Pork Producers Association Representing the Business Interests of Agriculture 10:45 AM Break 11:00 AM Nutrition – Not a slush fund! Guest Speaker: Julian Baer Committee on Agriculture, Nutrition & Forestry U.S. Senate 11:30 AM Conservation, Energy & Research – Areas for Refocus Guest Panelists: Jason Weller Land O’Lakes, Inc. Former Chief, Natural Resources Conservation Service, U.S. Department of Agriculture Bobby Frederick National Grain & Feed Association Josh Maxwell Committee on Agriculture U.S. House of Representatives John Goldberg Science Based Strategies 12:30 PM Lunch 1:00 PM Trade, Rural Development & Credit – Opportunities for Market Access Program Expansion and Infrastructure Investment Guest Panelists: Steve Mercer U.S. Wheat Associates Melissa Kessler U.S. Grains Council Todd Van Hoose Farm Credit Council 1:45 PM Break 2:00 PM Reflecting on Farmer Co-op Farm Bill Priorities 3:00 PM Workshop Concludes (NCFC Government Affairs Committee Business Meeting to follow at 3:30 PM) Farm Bill Workshop: Background Materials Farm Bill Primer Information Compiled for NCFC by National Journal The farm bill was created after the devastating impacts of the dust bowl and has expanded ever since Evolution of jurisdiction of the farm bill Timeline 1933 1960s 1973 1985 1990 1996 2002 2008 Economic Great Society The first New Organic Research The farm bill Horticulture depression and reforms draw omnibus bill conservation agriculture is programs are includes and local dust bowl attention to that included programs are included for new bioenergy food systems prompt the first food issues and reauthorization added to the the first time additions to programs become a farm bill create and tailor for food stamps farm bill the farm bill part of the commodity bill subsidies What is covered in the latest farm bill? The twelve titles (sections) of the 2014 farm bill Commodity programs – Provides farm Research, extension and related matters – 1 payments when prices or revenues decline for 7 Offers a wide range of agricultural research major commodity crops. and extension programs. Conservation – Encourages environmental Forestry – Supports forestry management 2 stewardship and improved management 8 programs run by USDA’s Forest Service. practices. Trade – Provides support for agricultural Energy – Encourages development of farm and 3 export programs and international food 9 community renewable energy systems through assistance. grants and loan guarantees. Nutrition – Provides nutrition assistance for Horticulture – Supports specialty crops 4 low-income households. 10 through a range of initiatives including market promotion and public research. Credit – Offers direct gov’t loans to farmers Crop insurance – Enhances the permanently 5 and ranchers and guarantees loans from 11 authorized federal crop insurance program. commercial lenders. Rural development – Supports rural business Miscellaneous – Covers other types of 6 and community development programs in 12 programs including livestock and poultry collaboration with local and state programs. production. 1 Negotiations over the 2018 farm bill are expected to be complicated and lengthy Preparing for the 2018 farm bill The most contentious issues to be Key Agricultural Committee members discussed for the 2018 farm bill House Chairman: K. Michael Conway (R-TX) 1. Demands to reduce SNAP spending Ranking member: Collin Peterson (D-MN) Vice-chairman: Glenn Thompson (R-PA) 2. Low commodity prices across the board 3. Cotton and dairy program fixes are expensive Senate Chairman: Pat Roberts (R-KS) Ranking member: Debbie Stabenow (D-MI) Analysis • Ranking member of the House Agricultural Committee, Collin Peterson, has said if the problems in the farm economy reach crisis proportions in 2017, Congress’s only option may be to enact a new farm bill a year ahead of schedule • Farm-state lawmakers are holding out hope that the current (2014) farm bill can carry producers through a period of low commodity prices, weak global demand, and soaring production of grains and other commodities; there is also a hope that the markets will turn around on their own • Other key negotiators of the current bill are skeptical about the prospects of getting the bill ready early even if that was deemed necessary because of the extra year it took to pass the last farm bill when it was time to update it in 2013 1 Nutrition programs account for more than three-fourths of farm bill spending Costs of programs under the farm bill for FY 2014-2023 In billions of dollars ■ Food stamps and nutrition ■ Crop insurance ■ Conservation ■ Commodity programs ■ Everything else Analysis • The biggest part of the farm bill is a 10-year funding allocation for food stamps and nutrition • At $756 billion, the 2014 farm bill reduced spending by $8 billion over 10 years • The 2014 bill took away direct payments, which would provide funds to the farmer regardless of how much they planted • The farm bill authorizes either mandatory or discretionary programs, but mandatory programs tend to dominate the debate surrounding the farm bill Outlays under the 2014 farm bill are projected to decrease for nutrition spending, but crop insurance will increase Actual and projected outlays for the 2014 farm bill In billions of dollars ■ Food stamps and nutrition ■ Crop insurance ■ Conservation ■ Commodities and disasters Projected Outlays under the 2014 farm bill are projected to decrease for nutrition spending, but crop insurance will increase Funding and share of total bill for the nutrition title In billions of dollars ■ Nutrition ■ Rest of the farm bill Share of the farm bill Funding amounts 2008 farm bill 2014 farm bill Outlays under the 2014 farm bill are projected to decrease for nutrition spending, but crop insurance will increase Funding for farm bill titles, without nutrition In billions of dollars ■ 2008 farm bill ■ 2014 farm bill Farm bill – Legislative Forecast Timeline of key recent federal actions on the farm bill 2014 Farm bill passes two years late: Provisions included an $8 billion cut to SNAP and a loosening of th restrictions on growing industrial hemp Potential actions in 115 Congress Witnesses at the initial farm bill hearings have July 2016 Hearing on fraud and errors in SNAP: The House Financial Services Committee passed the • Financial CHOICE Act by a vote of 30 to 26 supported the current insurance and conservation frameworks, but have suggested Nov. 2016 Hearing on innovation in SNAP: The House Committee on Agriculture held a hearing to evaluate some technical changes the innovative strategies retailers are utilizing to improve access to nutritious food and on how they can integrate these systems into SNAP •If cotton and dairy receive support prior to the farm bill, it would bode well for permanent Feb. 15, 2017 Hearing on “Setting the Stage for the Next Farm Bill”: The House Committee on Agriculture updates in the 2018 Farm Bill held a hearing on the state of the American farm economy with testimony by the USDA chief •The process of renegotiating NAFTA was kick- economist and academics from major agriculture research institutions started by bipartisan uproar against Canadian Feb. 16, 2017 Hearing on the “Pros and Cons of Restricting SNAP Purchases”: The House Committee on dairy pricing Agriculture heard about limiting SNAP benefits with testimony by researchers from AEI, Brookings •Trump’s tax proposal eliminates the estate tax and the Food Marketing Institute •With Secretary Perdue now in office, ag will Feb. 23, 2017 First Senate field hearing on the farm bill in Kansas: Senate Ag Committee Chairman Pat have a stronger voice in debates and media Roberts led a hearing with producers and agribusiness representatives at Kansas State •Insurance subsidies and SNAP benefits may Feb.-April Hearings on “The Next Farm Bill”: House Committee on Agriculture subcommittee hearings on: come under fire from budget hawks in the 2017 conservation policy; rural development and energy programs; specialty crops; livestock and dairy; Freedom Caucus commodity markets; SNAP; and the Farm Credit System •17 posts in USDA that require Senate approval remain unfilled Mar. 16, 2017 President Trump’s budget requests for FY2018: If enacted, the USDA would lose funding for some research and certain programs would be completely eliminated •President Trump’s budget request for FY2018 would cut the USDA’s research grants by $25 April 25, 2017 Sonny Perdue sworn in as secretary of agriculture: He immediately attends a roundtable with million and would eliminate the McGovern- the president and a group of farmers to discuss ag issues, including the Farm