FARM BILL 2007

It affects us ALL

Farm Bill Overview

• Federal legislation authorizing and guiding our agriculture, rural development, soil and water conservation, and domestic food and foreign aid programs.

• 2002 Farm Bill will expire in 2007 and must be re-authorized in 2007

• Now is the time to begin discussing and developing strategies to address current and future needs

• USDA, PDA and others currently embarking on “listening sessions” designed to gather perspectives and priorities for 2007

2002 Farm Bill Goals

• Support the production of reliable, safe, and affordable supply of food and fiber

• Promote stewardship of land and water resources• Facilitate access to American farm products here

and abroad• Encourage economic and infrastructure

developments in rural America• Ensure continued research to maintain an efficient

and innovative agriculture and food sector• Provide persons in need with access to food and an

improved diet Source: USDA

Ten Farm Bill Titles

I. Commodity Programs - income support for wheat, feed grains, cotton, rice, oilseeds, peanuts, sugar & dairy etc

II. Conservation – EQIP, CRP, CREP, othersIII. Trade – develop and expand export marketsIV. Nutrition – wide range of food programs: Food

Stamps, school lunch, domestic nutrition programs, farmers’ market WIC coupons, commodity distribution, others

V. Credit – loan programs for farmers and rural businesses

Ten Farm Bill Titles

VI. Rural Development – rural business development, services, water and wastewater programs, value-added product development programs, others

VII. Research – agricultural research and extensionVIII. Forestry – Forest Service programs; Forest Land

Enhancement, Sustainable Forestry Outreach, Community Based Forestry

IX. Energy – research and development for bio-based fuels

X. Miscellaneous – animal wealth and health programs, food safety, organic agriculture programs, country of origin labeling, crop insurance, disaster assistance, others

2002 Farm Bill - $782 Billion(Figures in millions, 2002-2007)

$142,079

$39,168$3,784

$555,367

$0 $1,030 $1,563$100

$405

$38,529

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Comm

odity

Pro

gram

s

Conse

rvat

ion

Trade

Nutrit

ion

Credit

Rural

Develo

pmen

t

Resea

rch

Fores

try

Energ

y

Misc

ellan

eous

Source: CBO estimates

2002 Farm Bill Allocations –excluding Nutrition

Credit0%

Trade2%

Research1%

Conservation17%

Forestry>1%

Rural Development

>1%

Energy>1%

Miscellaneous 17%

Commodity Programs

63%

Issues and Considerations

• Northeast received just 2.9% of commodity and 3.4% of conservation payments in 2002 bill

• Total funding is very likely to remain flat or fall –reallocation of current levels and priorities will be the key discussion focus!

• Numerous title-specific considerations

USDA Listening Sessions

1. Address unintended consequences and ensure that new and next generation farmers are not discouraged from entering farming?

2. Be designed to maximize U.S. competitiveness?3. Be designed to effectively and fairly distribute

assistance to producers?4. Best achieve conservation and environmental goals?5. Ensure that federal rural and farm programs provide

effective assistance to rural areas?6. Ensure that ag product development, marketing and

research related issues be addressed?

How should farm policy:

PDA Listening Sessions

• Six USDA questions…plus

• How can PA best leverage state and federal investments in agriculture?

• Given PA’s unique programming needs, (e.g. specialty crop support, unique demographics, dependence on MILC etc.) how can we best ensure our needs are accounted for in the upcoming bill?

Research and Extension Considerations

• $1.56 Billion 2002-2007 – approximately 1% of non-nutrition Farm Bill funding

• What should research and extension funding priorities be in the next 6 year period?

• How (and on what basis) should this funding be accessed and allocated?

• How can we best engage clientele and the public regarding FB discussions? What considerations should we be aware of?

• How best should we engage FB policy discussions in the coming year? What should our priorities be?

• What do the various funding scenarios mean for the Extension system? How can we best position ourselves to take advantage of these emerging considerations?

Other Issues and Considerations

• What are the most important long-term goals or outcomes that should guide the next farm bill?

• What are some of the most important emerging trends or needs in agriculture to which the next farm bill ought to respond?

• What are some of the most important emerging trends or needs in our communities to which the next farm bill ought to respond?

• What are some of the most important emerging consumer trends or needs to which the next farm bill ought to respond?