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The 20122013Farm Bill        Donn Teske    Kansas Farmers Union
The Farm Bill
Franklin Roosevelt    The Agricultural Adjustment ActCommonly credited as the original Farm Program, 1933
Evolution of the Farm Program •Parity, (market safety net) •Market distorting •Market non-distorting (1996 Freedom to Farm...
Tom BuisNational FU President        Stepped down        to serve as        CEO of Growth Energy
Federal Spending on Farm Safety NetSource:Congressional Budget Office                                         14
Farm Safety Net Spending 2011-2020     Marketing Loan Dairy/Specialty     Export      Benefits, $1.7 Crops, $3.7    Progra...
Senator Stabenow of Michigan
Congressman Frank Lucas       Oklahoma
Make-up of the Ag Committee          •Lot of new faces   •Every farm bill the committee   structure is getting more urban ...
Last second Farm Bill extension   Tied to the Fiscal Cliff Bill
MitchMcConnellPa
The extension really wasn’t so much an “extension” as a rewrite of the      Farm Bill with no debate         •Extended to ...
•REAP program in USDA RuralDevelopment gone. (Extended but not               funded)•Conservation Security program (CSP)  ...
A couple of “okay” things in the          extension       •Crop Insurance still there  •With the Direct Payments still ful...
Senator Thad CochranNew Ranking member of the Senate         Ag Committee
The fight is on!!!!!!
Effects of Farm Bill Expiration    Continuing Provisions            Expiring Provisions Crop Insurance                   ...
Effects of Farm Bill Expiration More Expiring Provisions Beginning Farmer and Rancher Development Organic Agriculture Rese...
Parity index
Why hasn’t the Farm Bill passed?• Republican leadership of the House hasn’t allowed  the bill to be voted on  – Speaker Bo...
Farm Bill Spending Comparisons to2013-2022 Baseline                      Senate      HouseCommodity Programs   -$19,428   ...
Differences between Farm BillsSenate Farm Bill (S. 3240)     House Farm Bill (H.R. 6083)Saves $23 billion              Sav...
Differences between Farm BillsSenate Farm Bill (S. 3240)      House Farm Bill (H.R. 6083)Cuts $6.3 billion from          C...
In both farm bills… • Direct and countercyclical payments, ACRE, and   SURE areeliminated • Crop insurance becomes the lar...
Existing     House PLCPrice Protection                                  Target Prices   Target Pricesin Existing Law      ...
An Alternative Safety Net• Farmer-Owned Reserves – includes a combination of farmer-owned   reserves, increased loan rates...
South Korea Free Trade Agreement                      65 / 35
Just    asuggestion
From the ETC group
HB 2575 Immigrant ID bill. This is a weirdone, it will allow illegal immigrants living herefor 5 years, or employed by a m...
Beginning Farmer Workshop: January             26, 2013   Nelson’s Landing Restaurant -          Leonardville, KS
9 AM – Welcome & Introductions9:15 AM – Donn Teske, KFU President and former farmer financial adviser    10 AM – Char Hent...
1 PM – Charlie Griffin – Kansas Rural             Family Helpline       1:30 PM – Bernard Irvine –    agricultural law inc...
3-5 PM – Producer Panel Darrell Parks of Manhattan, sustainable pasture porkEd Reznicek of Goff, Kansas Organic Producers ...
Food Hubs / Food Co-ops          April 6th, 2013         Hiawatha KansasHow Local Family Farms can feed our           comm...
A good wife brings balance to your life!
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
2012 farm bill, updated 1 22-13
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2012 farm bill, updated 1 22-13

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U.S. Farm Policy: Today and Tomorrow
Don Teske, President of Kansas Farmers Union.

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2012 farm bill, updated 1 22-13

  1. 1. The 20122013Farm Bill Donn Teske Kansas Farmers Union
  2. 2. The Farm Bill
  3. 3. Franklin Roosevelt The Agricultural Adjustment ActCommonly credited as the original Farm Program, 1933
  4. 4. 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
  5. 5. Tom BuisNational FU President Stepped down to serve as CEO of Growth Energy
  6. 6. Federal Spending on Farm Safety NetSource:Congressional Budget Office 14
  7. 7. Farm Safety Net Spending 2011-2020 Marketing Loan Dairy/Specialty Export Benefits, $1.7 Crops, $3.7 Programs, $3.5 ACRE, $3.2 Disaster, $0.8 Counter- Total: Cyclical $150.2 billion Payments, $5.5 Direct Payments Crop Insurance $49.1 $82.8 15
  8. 8. Senator Stabenow of Michigan
  9. 9. Congressman Frank Lucas Oklahoma
  10. 10. 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
  11. 11. Last second Farm Bill extension Tied to the Fiscal Cliff Bill
  12. 12. MitchMcConnellPa
  13. 13. 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)
  14. 14. •REAP program in USDA RuralDevelopment 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.
  15. 15. 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
  16. 16. Senator Thad CochranNew Ranking member of the Senate Ag Committee
  17. 17. The fight is on!!!!!!
  18. 18. Effects of Farm Bill Expiration Continuing Provisions Expiring Provisions Crop Insurance Direct and Countercyclical Payments Supplemental Nutrition New sign-ups for Conservation Reserve Assistance Program (SNAP) Program (CRP) and Wetlands Reserve Noninsured Crop Disaster Program (WRP) Assistance (NAP) Grassland Reserve Program (GRP) Agricultural Management Rural Energy for America Program Assistance (AMA) Value-Added Product Development Emergency Conservation Program Grants Program Resource Conservation and Milk Income Loss Contract (MILC) Development (RC&D) Program All 2008 Farm Bill Disaster Programs Fresh Fruit and Vegetable Program
  19. 19. Effects of Farm Bill Expiration More Expiring Provisions Beginning Farmer and Rancher Development Organic Agriculture Research and Extension Initiatives Local and Regional Food Aid Procurement Projects Farmers’ Market Promotion Program Specialty Crop Research Initiative …and many more
  20. 20. Parity index
  21. 21. 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
  22. 22. Farm Bill Spending Comparisons to2013-2022 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
  23. 23. Differences between Farm BillsSenate Farm Bill (S. 3240) House Farm Bill (H.R. 6083)Saves $23 billion Saves $35 billionIncludes farm-level revenue Does not include farm levelcoverage option (ARC) optionDoes not include much Includes reasonable levels ofprotection against long-term protection against long-termprice collapse price collapse (PLC)Tightens payment limits Doesn’t change payment limitsFunding levels & the safety net
  24. 24. Differences between Farm BillsSenate Farm Bill (S. 3240) House Farm Bill (H.R. 6083)Cuts $6.3 billion from Cuts $6 billion fromconservation title conservation titleIncludes sodsaver provision Doesn’t include sodsaverTies conservation compliance No conservation complianceto crop insurance eligibility restrictions for crop insuranceAllows funding for REAP Prohibits funding for REAPProvides $780 million in Doesn’t provide any mandatorymandatory funding for energy funding for energy programsEnergy & conservation
  25. 25. In both farm bills… • Direct and countercyclical payments, ACRE, and SURE areeliminated • 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 sugarprogram is extended
  26. 26. Existing House PLCPrice Protection Target Prices Target Pricesin Existing Law Wheat (bu.) $4.17 $5.50 Corn (bu.) $2.63 $3.70and House Bill Grain sorghum (bu.) $2.63 $3.95Payment amount = Barley (bu.) $2.63 $4.95Target price X 85% oftotal acres planted to Oats (bu.) $1.79 $2.40crop (30% for Upland Cotton (lb.) $0.7125 STAXprevented plant) Rice, med &lg (cwt.) $10.50 $14.00X existing CCP yield or Soybeans (bu.) $6.00 $8.4090% of 2008-2012 avg. Other oilseeds (cwt.) $12.68 $20.15yield/planted acre Dry peas (cwt.) $8.32 $11.00 Lentils (cwt.) $12.81 $19.97 Peanuts (ton) $495 $535
  27. 27. 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
  28. 28. South Korea Free Trade Agreement 65 / 35
  29. 29. Just asuggestion
  30. 30. From the ETC group
  31. 31. HB 2575 Immigrant ID bill. This is a weirdone, it will allow illegal immigrants living herefor 5 years, or employed by a multi-statecompany, to legally work in Kansas and to applyfor a Kansas driver’s license. I think it iscommendable that the state is finallyrecognizing this very large hidden part of oursociety but am disappointed that itintentionally does not make this a step towardcitizenship. Long time opponents, corporate Agand social welfare groups, are allied in supportof this bill. Labor unions are opposed.
  32. 32. Beginning Farmer Workshop: January 26, 2013 Nelson’s Landing Restaurant - Leonardville, KS
  33. 33. 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 Service 10:45 AM – Barb Depew, Kansas Farm-To-School Program 11:15 AM – Rhonda Janke, K-State Sustainable Agriculture 12 PM – Lunch by Nelson’s Landing Restaurant
  34. 34. 1 PM – Charlie Griffin – Kansas Rural Family Helpline 1:30 PM – Bernard Irvine – agricultural law including farm leases/terminations, fencing and boundary disputes,regulatory issues, business/succession planning and secured transactions2:15 PM – Chuck Otte – Geary County agricultural extension agent
  35. 35. 3-5 PM – Producer Panel Darrell Parks of Manhattan, sustainable pasture porkEd 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 produce Dale 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
  36. 36. Food Hubs / Food Co-ops April 6th, 2013 Hiawatha KansasHow Local Family Farms can feed our communities
  37. 37. A good wife brings balance to your life!

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