2012 Farm Bill forums - MO 5-1-11


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Powerpoint presentation on the 2012 Farm Bill process and agricultural policy and market conditions influencing the legislation. Presented at multiple events throughout Missouri in April and May 2011.

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2012 Farm Bill forums - MO 5-1-11

  1. 1. Brad Redlin, Director IWLA Agricultural Programs Upper Mississippi River Initiative Missouri River Initiative Agricultural Conservation 2012 Farm Bill: Stewardship, Prosperity, and Fairness
  2. 2. IWLA Agricultural Programs <ul><li>Federal Farm Policy </li></ul><ul><li>The “Three Means” </li></ul><ul><li>3. Compliance Covenant </li></ul><ul><li>4. 2012 Farm Bill </li></ul>
  3. 3. <ul><li>52 percent of total U.S. land is in agricultural use. </li></ul><ul><li>Urban land use is 2.6 percent. </li></ul><ul><li>USGS found 90% of streams had elevated levels of ag nutrients; annual dead zone in Gulf size of MA. </li></ul>
  4. 4. <ul><li>Farm numbers and sizes have changed, but not the acreage. </li></ul>
  5. 5. Outmigration is related to a lack of scenic amenities (not poverty or education); programs that enhance residents’ access to scenic amenities could help slow or reverse net outmigration . -USDA Economic Research Service, November 2010 -Farmers Markets have tripled in last 15 years; -In 1986 there were two CSAs, now 4000+; -In 1996 there were two Farm-to-School programs, now 2200+ (in 48 states) -USDA, April 2011
  6. 6. <ul><li>Title I Commodity Programs </li></ul><ul><li>Title II Conservation </li></ul><ul><li>Title III Trade </li></ul><ul><li>Title IV Nutrition Programs </li></ul><ul><li>Title V Credit </li></ul><ul><li>Title VI Rural Development </li></ul><ul><li>Title VII Research </li></ul><ul><li>Title VIII Forestry </li></ul><ul><li>Title IX Energy </li></ul><ul><li>Title X Horticulture and Organic Agriculture </li></ul><ul><li>Title XI Livestock </li></ul><ul><li>Title XII Crop Insurance and Disaster Assistance </li></ul><ul><li>Title XIII Commodity Futures </li></ul><ul><li>Title XIV Miscellaneous </li></ul><ul><li>Title XV Tax Provisions </li></ul>2008 <ul><li>Farm Bill reauthorized every 5 years--or will revert to 1949 law. </li></ul>
  7. 7. <ul><li>There are 3 means for delivering $ to agriculture via Farm Bill. </li></ul><ul><li>Commodity Subsidies, Conservation Programs, Crop Insurance. </li></ul>2008-2012
  8. 8. <ul><li>USDA Nutrition - Spending: </li></ul><ul><li>72% SNAP (food stamps). </li></ul><ul><li>Non-Farm Bill: National School Lunch Program; Women, Infants and Children (WIC); Child and Adult Care Food Program; School Breakfast Program. </li></ul><ul><li>More than 1600 Farmers Markets & direct farm sales accept SNAP. </li></ul><ul><li>70% more purchases in FY10 to FY09. </li></ul><ul><li>FY10 total of $7.5 million; or 0.012% of total SNAP. </li></ul>
  9. 9. IWLA Agricultural Programs <ul><li>Federal Farm Policy </li></ul><ul><li>The “Three Means” </li></ul><ul><li>3. Compliance Covenant </li></ul><ul><li>4. 2012 Farm Bill </li></ul>
  10. 10. <ul><li>Commodity production supports paid on floor & target prices… </li></ul><ul><li>and at a standard rate de-coupled from production. </li></ul>$12.68/cwt Other oilseeds $6.00/bu Soybeans $495/ton Peanuts $10.50/cwt Medium-grain rice $10.50/cwt Long-grain rice $0.7125/lb Upland cotton $1.79/bu Oats $2.63/bu Barley $2.63/bu Grain sorghum $2.63/bu Corn $4.17/bu Wheat CYs 2010-12 CCP   $355/ton Peanuts $0.7977/lb ELS cotton $0.52/lb Upland cotton $10.09/cwt Other oilseeds $5.00/bu Soybeans $6.50/cwt Medium-grain rice $6.50/cwt Long-grain rice $1.39/bu Oats $1.95/bu Barley $1.95/bu Grain sorghum $1.95/bu Corn $2.94/bu Wheat CYs 2010-12 Loan Rate   $0.44/bu Soybeans $2.35/cwt Long-grain rice $0.0667/lb Upland cotton $0.024/bu Oats $0.24/bu Barley $0.35/bu Grain sorghum $0.28/bu Corn $0.52/bu Wheat Direct Payment rate  
  11. 11. Direct and Countercyclical Payment Program - planting provisions - <ul><li>DCP paid on registered “base” for program crops…but </li></ul><ul><li>prohibits and penalizes fruit, vegetables, and tree nuts. </li></ul>
  12. 12. <ul><li>Conservation Title contains a suite of programs. </li></ul><ul><li>Programs meet different goals and utilize different methods. </li></ul>
  13. 13. <ul><li>Without USDA Conservation: </li></ul><ul><li>450 million tons of topsoil lost every year. </li></ul><ul><li>170,000 miles of unprotected streams. </li></ul><ul><li>48 million more tons of carbon dioxide. </li></ul><ul><li>40 million fewer acres of wildlife habitat. </li></ul><ul><li>2.2 million fewer ducks. </li></ul><ul><li>Authorized funding cut each year in White House budget, Congressional appropriations. </li></ul>
  14. 14. <ul><li>Federal Crop Insurance is subsidized for producers and insurance companies. </li></ul><ul><li>National average is 60% of premium is paid by subsidy, often even higher. </li></ul><ul><li>Major commodity crops well covered; challenges exist for new, organic, or locally/regionally atypical crops. </li></ul><ul><li>Crop Insurance exempted from compliance* in 1996 Farm Bill. </li></ul>
  15. 15. <ul><li>Participation in Crop insurance is high across major commodities. </li></ul><ul><li>Premiums and indemnities have been growing rapidly. </li></ul>
  16. 16. IWLA Agricultural Programs <ul><li>Federal Farm Policy </li></ul><ul><li>The “Three Means” </li></ul><ul><li>3. Compliance Covenant </li></ul><ul><li>4. 2012 Farm Bill </li></ul>
  17. 17. <ul><li>The Conservation Compliance </li></ul><ul><li>Highly Erodible Land (HEL) Compliance, Sodbuster, Wetland Conservation (Swampbuster) </li></ul><ul><li>Covenant </li></ul><ul><li>Public provides financial support via USDA payments. </li></ul><ul><li>Recipients protect soil and wetlands for the public. </li></ul><ul><li>Penalties are reduction or loss of farm program payments for </li></ul><ul><li>draining existing wetlands or not maintaining soil protections. </li></ul>Ducks Unlimited photo NRCS photo NRCS photo
  18. 18. <ul><li>HEL Conservation: </li></ul>
  19. 19. <ul><li>Swampbuster/WC: </li></ul>
  20. 20. IWLA Agricultural Programs <ul><li>Federal Farm Policy </li></ul><ul><li>The “Three Means” </li></ul><ul><li>3. Compliance Covenant </li></ul><ul><li>4. 2012 Farm Bill </li></ul>
  21. 21. <ul><li>Commodity prices... </li></ul>… have been... ...doing well.
  22. 22. <ul><li>The type of insurance has also undergone a change. </li></ul>
  23. 24. <ul><li>‘ 12 Farm Bill baseline shows shift to insurance. </li></ul>
  24. 25. <ul><li>Commodity program crop prices are high: production </li></ul><ul><li>subsidies largely absent, Crop Insurance is dominant. </li></ul><ul><li>Federal deficits are driving budget cuts & Conservation </li></ul><ul><li>programs are continually being cut. </li></ul><ul><li>Economic conditions driving need for employment and </li></ul><ul><li>food security. </li></ul><ul><ul><li>The 2012 Farm Bill Convergence: </li></ul></ul>
  25. 26. <ul><li>Protecting and enhancing natural amenities—pleasant landscapes, outdoor recreation, community life—draws population and economic vitality. </li></ul><ul><li>The current $4 billion Local Food market will grow to $7 billion as soon as 2012. </li></ul><ul><li>Natural amenities are highly correlated with population and employment growth—they even shape agriculture. The number of farms has increased in counties with high levels of natural amenities. </li></ul><ul><li>Garden-based education programs in schools improve science test scores, environmental awareness, and attitudes toward and consumption of fruits and vegetables </li></ul><ul><li>-USDA </li></ul>USDA photo USDA photo USDA photo What should guide the 2012 Farm Bill reauthorization:
  26. 27. <ul><li>Programs working at cross purposes: in South Dakota, over the same time period, 1.69 million acres were enrolled in CRP , while 1.82 million acres of grassland were converted to cropland.” </li></ul><ul><li>increases in crop insurance subsidies motivated producers to expand cropland by an estimated 2.5 million acres </li></ul><ul><li>The 2012 Farm Bill must support Stewardship, </li></ul><ul><li>Prosperity, and Fairness… </li></ul>
  27. 28. <ul><li>Require Compliance for Crop Insurance; and expand no-cost Compliance provisions. </li></ul><ul><li>Prioritize conservation to support diversity in production and economic development. </li></ul><ul><li>The 2012 Farm Bill must support Stewardship, Prosperity, and Fairness </li></ul><ul><li>Develop local food production, markets, and infrastructure. </li></ul><ul><li>Expand garden-based education and farm-to-school programs. </li></ul>
  28. 29. “ The number of farms has increased in counties with high levels of natural amenities. While these amenities are not the only factor affecting farm numbers, it is clear that many beginning farmers want to farm—and live—in a pleasant outdoor setting.” Economic Research Service, USDA
  29. 30. www.iwla.org/farmbill Stewardship, Prosperity, and Fairness The Izaak Walton League of America’s values-based vision of agriculture for all of America Brad Redlin Director, Agricultural Programs 651.649.1446 ex 13 [email_address]