2012 farm bill, updated 1 22-13
description
Transcript of 2012 farm bill, updated 1 22-13
![Page 1: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/1.jpg)
Donn TeskeKansas Farmers Union
The 2012 2013Farm Bill
![Page 2: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/2.jpg)
![Page 3: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/3.jpg)
![Page 4: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/4.jpg)
![Page 5: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/5.jpg)
![Page 6: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/6.jpg)
![Page 7: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/7.jpg)
![Page 8: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/8.jpg)
![Page 9: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/9.jpg)
The Farm Bill
![Page 10: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/10.jpg)
![Page 11: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/11.jpg)
Franklin RooseveltThe Agricultural Adjustment Act
Commonly credited as the original Farm Program, 1933
![Page 12: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/12.jpg)
Evolution of the Farm Program
•Parity, (market safety net)•Market distorting•Market non-distorting (1996 Freedom to Farm) (Direct Payments) (welfare?)•Market safety net•Crop insurance
![Page 13: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/13.jpg)
Tom BuisNational FU President
Stepped down to serve as CEO of Growth Energy
![Page 14: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/14.jpg)
Federal Spending on Farm Safety Net
Source: Congressional Budget Office
14
![Page 15: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/15.jpg)
Farm Safety Net Spending 2011-2020
Total: $150.2 billion
Crop Insurance$82.8
Direct Payments$49.1
Counter-Cyclical
Payments; $5.5
ACRE; $3.2
Marketing Loan Benefits; $1.7 Dairy/Specialty Crops; $3.7
Export Programs, $3.5 Disaster; $0.8
15
![Page 16: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/16.jpg)
Senator Stabenow of Michigan
![Page 17: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/17.jpg)
Congressman Frank Lucas Oklahoma
![Page 18: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/18.jpg)
Make-up of the Ag Committee
•Lot of new faces•Every farm bill the committee structure is getting more urban•Many of the traditional, powerful
rural politicians are gone
![Page 19: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/19.jpg)
Last second Farm Bill extensionTied to the Fiscal Cliff Bill
![Page 20: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/20.jpg)
Mitch McConnell
Pat Roberts
![Page 21: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/21.jpg)
The extension really wasn’t so much an “extension” as a rewrite of the Farm Bill with
no debate
• Extended to the end of September• Preserved Direct Payments• Dairy pretty well got screwed
• Livestock indemnity payments gone, not funded• Livestock forage disaster program gone, not funded• Livestock emergency assistance gone, not funded
• Crop disaster gone.•Beginning Farmer Program gone. (Extended but not funded)
![Page 22: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/22.jpg)
•REAP program in USDA Rural Development gone. (Extended but not
funded)•Conservation Security program (CSP)
gone, not funded.•Grassland Reserve Program (GRP)
gone.•Wetlands Reserve Program (WRP)
gone.•McGovern-Dole International Food
Program, gone.
![Page 23: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/23.jpg)
A couple of “okay” things in the extension
•Crop Insurance still there•With the Direct Payments still fully
funded the budget baseline is protected for the next round of
negotiations on the farm bill
![Page 24: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/24.jpg)
Senator Thad CochranNew Ranking member of the Senate Ag Committee
![Page 25: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/25.jpg)
The fight is on!!!!!!
![Page 26: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/26.jpg)
![Page 27: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/27.jpg)
Effects of Farm Bill ExpirationExpiring ProvisionsDirect and Countercyclical PaymentsNew sign-ups for Conservation Reserve Program (CRP) and Wetlands Reserve Program (WRP)Grassland Reserve Program (GRP)Rural Energy for America ProgramValue-Added Product Development Grants ProgramMilk Income Loss Contract (MILC)All 2008 Farm Bill Disaster Programs
Continuing ProvisionsCrop InsuranceSupplemental Nutrition Assistance Program (SNAP)Noninsured Crop Disaster Assistance (NAP)Agricultural Management Assistance (AMA)Emergency Conservation ProgramResource Conservation and Development (RC&D) ProgramFresh Fruit and Vegetable Program
![Page 28: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/28.jpg)
Effects of Farm Bill ExpirationMore Expiring ProvisionsBeginning Farmer and Rancher DevelopmentOrganic Agriculture Research and Extension InitiativesLocal and Regional Food Aid Procurement ProjectsFarmers’ Market Promotion ProgramSpecialty Crop Research Initiative …and many more
EXPIRED
![Page 29: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/29.jpg)
Parity index
![Page 30: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/30.jpg)
Why hasn’t the Farm Bill passed?• Republican leadership of the House hasn’t allowed
the bill to be voted on– Speaker Boehner has never supported a Farm Bill– Ranking Member Peterson says there are enough votes
• Disagreement over depth of cuts to nutrition– Senate SNAP cuts = $4 billion– House Ag Committee SNAP cuts = $16 billion– “Ryan Budget” SNAP cuts = $134 billion
![Page 31: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/31.jpg)
![Page 32: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/32.jpg)
Farm Bill Spending Comparisons to 2013-2022 Baseline
Senate HouseCommodity Programs -$19,428 -$23,584Crop Insurance $5,036 $9,524Conservation -$6,374 -$6,062Nutrition -$4,000 -$16,075Energy $780 $0Rural Development $115 $105Research $681 $546Other $50 $482Total -$23,140 -$35,064
![Page 33: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/33.jpg)
Differences between Farm BillsSenate Farm Bill (S. 3240) House Farm Bill (H.R. 6083)Saves $23 billion Saves $35 billionIncludes farm-level revenue coverage option (ARC)
Does not include farm level option
Does not include much protection against long-term price collapse
Includes reasonable levels of protection against long-term price collapse (PLC)
Tightens payment limits Doesn’t change payment limits
Funding levels & the safety net
![Page 34: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/34.jpg)
Differences between Farm BillsSenate Farm Bill (S. 3240) House Farm Bill (H.R. 6083)Cuts $6.3 billion from conservation title
Cuts $6 billion from conservation title
Includes sodsaver provision Doesn’t include sodsaverTies conservation compliance to crop insurance eligibility
No conservation compliance restrictions for crop insurance
Allows funding for REAP Prohibits funding for REAPProvides $780 million in mandatory funding for energy
Doesn’t provide any mandatory funding for energy programs
Energy & conservation
![Page 35: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/35.jpg)
In both farm bills…• Direct and countercyclical payments, ACRE, and
SURE are eliminated• Crop insurance becomes the largest of the farm
safety net programs• Conservation programs are restructured and
strengthened for effective delivery• Dairy programs shift to margin insurance and weak
supply management• The sugar program is extended
![Page 36: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/36.jpg)
Price Protection in Existing Law and House Bill
Existing Target Prices
House PLC Target Prices
Wheat (bu.) $4.17 $5.50Corn (bu.) $2.63 $3.70Grain sorghum (bu.) $2.63 $3.95Barley (bu.) $2.63 $4.95Oats (bu.) $1.79 $2.40Upland Cotton (lb.) $0.7125 STAXRice, med & lg (cwt.) $10.50 $14.00Soybeans (bu.) $6.00 $8.40Other oilseeds (cwt.) $12.68 $20.15Dry peas (cwt.) $8.32 $11.00Lentils (cwt.) $12.81 $19.97Peanuts (ton) $495 $535
Payment amount = Target price X 85% of total acres planted to crop (30% for prevented plant) X existing CCP yield or 90% of 2008-2012 avg. yield/planted acre
![Page 37: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/37.jpg)
An Alternative Safety Net
• Farmer-Owned Reserves
– includes a combination of farmer-owned reserves, increased loan rates, set-asides, the elimination of direct payments, and reduced reliance on other government payment instruments.
37
![Page 38: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/38.jpg)
South Korea Free Trade Agreement
65 / 35
![Page 39: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/39.jpg)
Just asuggestion
![Page 40: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/40.jpg)
From the ETC group
![Page 41: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/41.jpg)
![Page 42: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/42.jpg)
![Page 43: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/43.jpg)
HB 2575 Immigrant ID bill. This is a weird one, it will allow illegal immigrants living here for 5 years, or employed by a multi-state company, to legally work in Kansas and to apply for a Kansas driver’s license. I think it is commendable that the state is finally recognizing this very large hidden part of our society but am disappointed that it intentionally does not make this a step toward citizenship. Long time opponents, corporate Ag and social welfare groups, are allied in support of this bill. Labor unions are opposed.
![Page 44: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/44.jpg)
Beginning Farmer Workshop: January 26, 2013Nelson’s Landing Restaurant - Leonardville, KS
![Page 45: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/45.jpg)
9 AM – Welcome & Introductions9:15 AM – Donn Teske, KFU President and former farmer financial adviser
10 AM – Char Henton & Becky O’Donnell, KS Ag Mediation Service10:45 AM – Barb Depew, Kansas Farm-To-School Program11:15 AM – Rhonda Janke, K-State Sustainable Agriculture
12 PM – Lunch by Nelson’s Landing Restaurant
![Page 46: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/46.jpg)
1 PM – Charlie Griffin – Kansas Rural Family Helpline1:30 PM – Bernard Irvine – agricultural law including farm leases/terminations, fencing and boundary
disputes,regulatory issues, business/succession planning and secured transactions
2:15 PM – Chuck Otte – Geary County agricultural extension agent
![Page 47: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/47.jpg)
3-5 PM – Producer PanelDarrell Parks of Manhattan, sustainable pasture pork
Ed Reznicek of Goff, Kansas Organic Producers general manager
Jason Schmidt and Herb Bartel of Hillsboro, organic farming and grazing partnership
Warren Sutton of Norway, green bean growerDan Kuhn of Courtland, “Depot Market” growing and
marketing wholesale and retail produceDale Strickler of Jamestown, grazing specialist
Robert Nutsch of Norway, produce growing on less than one acre
Norm Oeding of Hillsboro, organic farm managerChris Janssen of Scandia, high tunnel produce grower
![Page 48: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/48.jpg)
Food Hubs / Food Co-ops
April 6th, 2013Hiawatha Kansas
How Local Family Farms can feed our communities
![Page 49: 2012 farm bill, updated 1 22-13](https://reader033.fdocuments.net/reader033/viewer/2022061223/54c5165a4a79592e188b466c/html5/thumbnails/49.jpg)
A good wife brings balance to your life!