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Budget Developments
Reuters writer Missy Ryan reported yesterday that, “The U.S. Senate’s senior voice on agriculture said on Wednesday he would protect American farmers by pushing a broad interpretation of limits on farm subsidies under the World Trade Organization…Sen. Tom Harkin, the chairman of the Senate Agriculture Committee, told the Corn Refiners Association that some farmers tell him to ‘forget about the WTO’ as he prepares to overhaul farm policy.”
I. Budget Developments
II. Farm Bill News
III. Harkin on WTO – “Green Box”
IV. Bills
V. Food Stamps
I. Budget Developments
Edmund L. Andrews reported in today’s New York Times that, “House and Senate Democratic leaders reached agreement on Wednesday on a $2.9 trillion budget for 2008 that envisions a return to budget surpluses by 2012 and assumes that some of President Bush’s tax cuts will be allowed to expire.
“The five-year blueprint, which is primarily a declaration of basic principles, represents a broad alternative to President Bush’s agenda. It calls for more money for children’s health care, education and a wide variety of other domestic programs.”
Mr. Andrews indicated that, “The House and Senate are expected to vote on Thursday on the plan, and both are likely to pass it. That in itself would be a significant accomplishment, one that eluded Republicans, torn over spending cuts, when they were in control of Congress last year.”
Lori Montgomery added in today’s Washington Post that, “The White House has threatened to veto spending bills that exceed President Bush’s targets, a threat budget director Rob Portman reiterated yesterday. Democratic budget leaders defended their proposal, saying an administration that has increased federal spending by more than 40 percent since 2001 and added more than $3 trillion to the federal debt has little standing to complain about a 2 percent increase over Bush’s goals for domestic programs.”
More specifically with respect to the Farm Bill, the Conference Report stated on pages 30-31 (Section 307- Deficit-Neutral Reserve Fund for the Farm Bill), that a “reserve fund” for the 2007 Farm Bill in the amount of $20 billion is included. However, as Phillip Brasher noted yesterday at the Cash Crops blog, “The budget agreement that congressional Democrats announced Wednesday has no extra money for the 2007 farm bill, only a $20 billion reserve fund that lawmakers can spend if they find spending cuts or tax increases to offset it.
“This is no surprise. It’s the reason there is increasing talk of cannibalizing existing programs, namely direct payments, to pay for new initiatives.”
II. Farm Bill News
Kevin Bogardus and Ian Swanson reported this morning at The Hill webpage that, “House Agriculture Committee Chairman Collin Peterson (D-Minn.) and reform-minded House Democrats are rolling up their sleeves for a summer-long battle over the next farm bill.
“Peterson, who is expected to announce subcommittee markups next week, wants the farm bill to be controlled as much as possible by his committee. He hopes to secure House passage of a new farm bill before the August recess.
“‘I think people are somewhat misguided if they think the farm bill is going to be written on the floor,’ he told reporters on May 11, in a recording posted on the Brownfield Network website” (MP3).
The Hill article indicated that, “Keeping committee control over the bill would also make it easier for commodity groups to retain existing farm subsidy payments, farm lobbyists say. The committee is stacked with members sympathetic to corn, cotton, rice and grain farmers. On the floor, those interests have less power.”
Bogardus and Swanson also stated that, “One agriculture lobbyist said Peterson’s tactics could help him argue later this summer that the bill reported by his committee represents a careful balance between commodity funding, conservation, nutrition and energy. Furthermore, a committee-reported bill could be invulnerable to attack under a closed rule.
“But Peterson has received no assurances from House Speaker Nancy Pelosi (D-Calif.) that a committee-reported bill would be protected on the floor, according to a committee aide. ‘There’s no indication we’ve seen that there will be a closed rule,’ the aide said.
“Still, Pelosi’s actions will be watched closely during the debate. Peterson is a leading member of the conservative Blue Dog Democrats, a coalition critical to leadership on certain House votes. At the same time, Pelosi comes from a state that could benefit from a shifting of farm-bill funds, particularly if more money is targeted toward conservation or fruit and vegetable growers.
“[Rep. Earl Blumenauer (D-Ore.), an opponent of the 2002 farm bill] said he thinks the farm bill is something that Pelosi will have a serious interest in this year because of what he described as California’s relative disadvantage in past farm bills.”
In a separate Hill article from today, Ian Swanson and Kevin Bogardus reported that, “The AFL-CIO and other major labor unions for the first time are aiming to influence farm policy by partnering with conservation groups that seek greater funding for programs benefiting U.S. hunters and fishers.
“AFL-CIO Secretary-Treasurer Richard Trumka said his organization became involved after learning from an informal poll that 70 percent of the membership of 20 unions hunt and fish, and that those members were worried about access to land and a lack of habitat.
“Increasing conservation funding ‘is a very high priority for us,’ said Trumka, who described himself as an active outdoorsman. He described the 2007 farm bill as ‘absolutely’ the No. 1 conservation issue for the AFL-CIO.”
Bogardus and Swanson reported that, “The unions are just one of several new players in the debate over farm policy, which could complicate efforts by House Agriculture Committee Chairman Collin Peterson (D-Minn.) and others to craft a farm bill.
“‘I think there is certainly a change in the air that I never experienced before and people want to move onto reform,’ said Rep. Ron Kind (D-Wis.), a leading proponent for reform who opposed the 2002 farm bill.”
In addition, The Hill article noted that, “Another new player is Oxfam America, which recently hired Clinton administration Agriculture Undersecretary Jim Lyons as its vice president and is making the farm bill its U.S. agency priority for the year. It is also bringing Oscar-nominated actor Djimon Hounsou (‘Blood Diamond’) to Washington today for a lobbying session with members of Congress.
“Oxfam ‘sends shudders down the spine of the agriculture community,’ said one farm lobbyist, who noted the group’s influence in raising attention to U.S. farm subsidies.”
In other news, an update posted earlier this week at the Senate Ag Committee webpage stated that, “With the national average price for a gallon of regular unleaded gasoline at $3.07, Senator Tom Harkin (D-IA) today said this highlights the need to develop new, renewable energy sources. The energy title in the new farm bill can play a key role in reaching that goal.
“As Chairman of the Senate Agriculture Committee, Harkin included an energy title in the farm bill for the very first time in 2002 and is now pushing for a much more ambitious energy title in the new bill.”
To listen to expanded comments from Sen. Harkin on the Energy Title of the Farm Bill, where he outlines four main goals for this aspect of the farm legislation, just click here (MP3).
***
Ohio State University Professor Carl Zulauf has provided an excellent two-page summary of some specific farm bill proposals regarding revenue insurance.
The paper (“Comparison of Revenue Proposals”) “[C]ompares key characteristics of the Integrated Farm Revenue Program, National Corn Growers Association’s proposal, Administration’s Counter-Cyclical Revenue Program, and American Farm Bureau Federation’s Counter-Cyclical Revenue Program. The Integrated Farm Revenue Program was conceived by Carl Zulauf, Ohio State University, and adopted by American Farmland Trust as part of their Farm Bill proposals. While these programs are gross revenue (yield times price) programs rather than price programs, major differences exist.”
This summary is a great resource.
III. Harkin on WTO – “Green Box”
Meanwhile, Reuters writer Missy Ryan reported yesterday that, “The U.S. Senate’s senior voice on agriculture said on Wednesday he would protect American farmers by pushing a broad interpretation of limits on farm subsidies under the World Trade Organization.
“Sen. Tom Harkin, the chairman of the Senate Agriculture Committee, told the Corn Refiners Association that some farmers tell him to ‘forget about the WTO’ as he prepares to overhaul farm policy.
“‘Don’t pay any attention to it,’ the farmers say. Well, the Iowa Democrat quipped, ‘I would,’ except for U.S. treaty obligations to the WTO limits on farm spending.”
Ms. Ryan went on to report that, “Harkin, who will lead the Senate’s drafting of the 2007 farm bill, the umbrella legislation that sets subsidies and a host of other agriculture policies for five years, pledged not to roll over and sacrifice farmers’ cherished supports.
“‘I’ll nip at the edges a little bit here and there, and I’ll push a little bit’ in advancing a broad interpretation of what kinds of farm subsidies are allowed under WTO rules.
“‘I think certain things are under green box … some of our trading allies don’t agree with that,’ Harkin said, referring to the subsidies whose spending levels are not limited by WTO rules. If the new farm bill has provisions other countries feel violate rules, ‘we’ll see what the WTO court has to say.’”
The article also stated that, “The lawmaker singled out direct payments to farmers as potentially vulnerable to WTO challenges. ‘Quite frankly, the way it’s structured now, we’ll probably lose’ any case unless there are changes related to fruit and vegetable production.”
In a related item regarding the Green Box, the International Food & Agricultural Trade Policy Council (IPC) recently posted a summary at their webpage regarding an event the organization hosted entitled, “Should the Green Box be Modified? An Experts’ Discussion.”
According to the IPC webpage, “The International Food & Agricultural Trade Policy Council (IPC) and the Woodrow Wilson International Center for Scholars hosted an experts’ discussion on the issues raised by IPC’s recently published Discussion Paper, “Should the Green Box be Modified?” by Timothy Josling and David Blandford. The paper analyzes current Green Box criteria, which have been until now instrumental in moving away from trade-distorting support, but also raises salient questions about the production effects of Green Box support, and whether it allows for the implementation of a full range of legitimate environmental and conservation programs. Consensus on these issues is important for the stability of the WTO negotiations, and discussion focused on what can be done to effectively balance the needs of developing countries through reducing trade-distorting support, and meeting domestic policy goals of providing public goods. Commentators also discussed these issues in the context of the current Farm Bill debate.”
A more detailed summary of this event is available here, while a link to the Josling / Blandford paper is available here.
I would highly recommend reading this paper, which is particularly relevant in the current policy debate.
IV. Bills
A press release issued yesterday by the Sustainable Agriculture Coalition stated that, “The Sustainable Agriculture Coalition praised the introduction today of the Beginning Farmer and Rancher Opportunity Act of 2007, a cross-cutting initiative to help the next generation of farmers and ranchers enter into agriculture and take advantage of emerging markets. The bill is sponsored by Representatives Stephanie Herseth Sandlin (D-SD) and Tim Walz (D-MN) in the House and, in the Senate, by Agriculture Committee Chairman Tom Harkin (D-IA) [Harkin press release] along with Committee Members Chuck Grassley (R-IA), Max Baucus (D-MT), and Sherrod Brown (D-OH). Other original co-sponsors may be added today as the bill is dropped.
“The bill will be included in Chairman Harkin’s farm bill proposal likely to be released in the coming month. House champions Herseth Sandlin and Walz both sit on the Conservation, Credit, Energy, and Research Subcommittee of the House Agriculture Committee, which is scheduled to mark-up its titles of the farm bill next week. The beginning farmer bill includes conservation, credit, and research title provisions.”
The release added that, “‘The Beginning Farmer and Rancher Opportunity Act seeks to address the challenges and opportunities the next generation of farmers and ranchers face,’ said Ferd Hoefner, policy director of Coalition. ‘By providing tools and resources such as training in farm management, down payment loans, matched savings accounts, and conservation incentives and set-asides, the Beginning Farmer and Rancher bill promises to help new farmers and ranchers get started in agriculture and become economically viable stewards of the land.’”
A news release issued yesterday by the Center for Rural Affairs indicated that, “The Beginning Farmer and Rancher Opportunity Act of 2007 includes:
* Establishing the Beginning Farmer and Rancher Development Program, a beginning farmer and rancher training and support initiative that would provide $25 million per year in competitive grants to community-based organizations training and mentoring beginning farmers and ranchers.
* Creating savings and lending provisions that help beginning farmers and ranchers access credit and establish a pattern of savings.
* Providing conservation incentives to assist beginning farmers and ranchers and socially disadvantaged farmers to establish conservation practices and sustainable farming systems on their farms.”
V. Food Stamps
Reuters writer Charles Abbott reported yesterday that, “For lunch on Tuesday, Janice Schakowsky spread flakes of tuna on two slices of white bread. Jim McGovern ate a bowl of home-cooked lentils and Jo Ann Emerson’s salad was mostly shredded iceberg lettuce.
“‘I couldn’t afford the mayo,’ said Schakowsky, so she did not make tuna salad. Schakowsky, McGovern and Emerson — all members of the U.S. House of Representatives — are on what could be called the Food Stamp diet, spending $1 on food per meal, for a week.
“Their spell on ‘the Food Stamp Challenge’ will end on Monday, just before the House Agriculture Committee is expected to begin overhauling U.S. farm law. Food stamps and other public nutrition programs account for two-thirds of the spending governed by the ‘farm bills’ written every few years.
“Food stamp benefits are roughly $1 a meal or $3 a day. With that budget, the U.S. representatives said, they found starchy foods are attractively priced and little chance for variety. ‘I kept taking things out of my (shopping) cart,’ said Schakowsky, an Illinois Democrat.”
Ken Cook, President of the Environmental Working Group, wrote about this issue yesterday at the Mulch blog, “When Food Stamp Challenge participant Rep. Jan Schakowski (IL-9) says ‘hold the Mayo’, it’s not out of choice.
“‘For lunch, Rep. Jan Schakowsky, Illinois Democrat, had tuna fish — no mayonnaise — on white bread bought for 89 cents a loaf. ‘I couldn’t afford the mayo,’ she said, adding that she sliced tomatoes she bought razor-thin to make them last but ‘splurged on some broccoli.’”
“Here’s the link to the Congressional Food Stamp Challenge.”
Keith Good
