A New Framework for Farm Policy

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A New Framework for Farm Policy
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Farm Bill 101

• Introduction
• What is the Farm Bill?
• Why should we care?
• Why it might change in 2007?
• Farm Bill Players - Jimmy
• Farm Bill Policies - Joe
• Farm Bill Politics - Dennis
• QA

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American Farmland Trust

• Transforms U.S. farm policy
• Protects the best land
• Plans for agriculture
• Keeps the land healthy

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The Farm Bill

• An omnibus piece of legislation negotiated every
  5 to 7 years
• Sets federal policy on
• Title I Commodities
• Title II Conservation
• Title III Trade
• Title IV Nutrition
• (Food Stamps, WIC, school lunches)
• Title V Credit
• Title VI Rural Development
• Title VII Research
• Title VIII Forestry
• Title IX Energy
• Title X Misc.

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2007 Farm Bill
2006 Budget-Proposed Spending Levels
Commodity Programs Food Stamps and Nutrition
Programs Rural Development, Research, Marketing,
and Administration Natural Resources and
Conservation Programs
Source Monitoring Agri-Trade Policy, March 2005
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The Farm Bill

• Why should we care?
• Health and Preservation of Land
• Vitality of Rural Communities
• Sustainable and Viable Farm Sector
• Impact on the Environment
• Supply of Fresh and Local Foods

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Farm Bill
Federal Farm Payments
1995-2004
Source Environmental Working Group
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Conservation Programs, 1995-2004
Source Environmental Working Group
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Farm Bill Conservation
Source CBO 5-year average baseline 2006-2010
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Forces of Change

• Change is inevitable due to
• Globalization/WTO
• Budget deficits
• Poor perception of farm subsidies
• Unmet needs of agriculture
• Interest in renewable energy
• Future price of corn
• Growing outside interest

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Globalization

• Change is coming
• with or without a Doha Round
• World Trade Organization dispute cases
• Bilateral trade agreements
• Long-term trend toward freer trade

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Budget Deficit
Future Deficits Will Shape the New Farm Bill
Projected Deficit 3.9 Trillion
Projected Surplus 5.6 Trillion
Source Ten-Year CBO Budget Projections
(cumulative)
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Increased Transparency

• Distribution of Benefits
• 93 of all payments go to wheat, rice, corn,
  soybean, and cotton producers
• Only 39 of all farms received payments in 2004
• 9 of farms receiving payments had incomes
  greater than 200,000
• The same 9 of farms received 23 of all payments
  in 2004

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Forces for Change

• Ive been in the unholy agricultural alliance
  for 33 years. Ive voted for every damned
  ridiculous agricultural program and subsidy
  conceived by the minds of men. But I may not
  anymore.
• -Senator Trent Lott, July 2005

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Unmet Needs of Agriculture

• Most farmers and ranchers are not getting the
  support they require to remain competitive
• New market development
• Conservation Needs
• Deteriorating infrastructure
• Research, pest management, etc.
• Rural development

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Past Coalitions

• Program crops (Commodity Title I) and anti-hunger
  groups (Nutrition Title IV)
• Program crops (Commodity Title I) and anti-hunger
  groups (Nutrition Title IV) and
  environmental/conservation groups (Conservation
  Title II)

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Growing Outside Interest

• New Ag Players 2007 Farm Bill
• Specialty crop producers
• NASDA (State Departments of Ag)
• Regions (Northeast, Mid-Atlantic, West)
• Direct marketing/local food systems

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Growing Outside Interest

• New Participants in 2007 Farm Bill
• International development
• Health and nutrition
• Fiscal conservatives
• Energy
• Rural development
• Environmentalists
• You?

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AFTs Farm Policy Campaign

• Agenda 2007 New Framework and Direction
  for U.S. Farm Policy
• Release May 2006
• Represents a plausible, alternative approach to
  farm policy in which every farmer and rancher
  will have the opportunity to succeed

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A New Framework forU.S. Farm Policy
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AFTs Farm Policy Campaign

• Four Major Policy Proposals
• Revenue Protection Program
• Green Payments (CSP)
• Strengthen and Expand Conservation
• Double funding for working lands
• Create Cooperative Conservation Initiative
• Establish the conservation loan guarantee program
• Farm and Ranch Profitability Grants

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Principles

• A real safety net protects
• against real losses
• Revenue Protection not Price Support
• Payments based on actual losses rather than
  politically set targets
• Risk should be shared between government,
  producers, and the private sector

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Revenue Protection - Rationale

• Effects of Revenue Protection
• Better protection for farmers
• Lower cost for the government
• More market-oriented
• Less vulnerable to WTO attack
• Allows private insurance to be more effective

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Green Payments

• Green payments would reward all farmers and
  ranchers for sound land management and resource
  conservation.
• Rewarding environmental stewardship

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Green Payments

• 2001 AFT public opinion poll found 85 percent of
  voters willing to pay farmers and ranchers for
  providing environmental benefits

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Farm Ranch Profitability Grants

• A 1 billion state level program that combines
  new funding for
• marketing strategies
• new business ventures
• product promotion
• consumer education
• on-farm improvements

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Conservation Initiative

• Double funding and improve working lands programs
• Establish cooperative conservation partnership
• Establish the conservation loan guarantee program

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Marker Bills
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Marker Bills

• Healthy Farms, Foods and Fuels Act of 2006House
  conservation bill (30 co-sponsors)
• Senate conservation billSalazar, Harkin,
  Stabenow
• EAT for A Healthy America ActHouse specialty
  crop alliance bill (50 co-sponsors)
• Northeast marker billconservation and new market
  development
• Rural developmentClinton, Durbin

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Extension of 02 Farm Bill

• Farm Groups Are NOT on the
• Same Farm Bill Page
• The House hearing could well have been the
  deathblow to those groups pushing for a farm bill
  extensionIt was not a good day for those seeking
  the status quo.
• Jim Wiesmeyer, Informa Economics, Inc. on
  AgWeb.com

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2007 Farm Bill

• Together, we can
• Enhance farm profitability and competitiveness
• Improve environmental stewardship
• Advance rural prosperity
• Excite new constituencies for future farm support

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Learn More www.farmland.org