Wes Harris and Curt Lacy
Center for Agribusiness & Economic Development
Agricultural & Applied Economics


More money for conservation and farmland protection programs

Consolidation/simplification of programs

Land Retirement Programs
3,000
2,500
2,000
1,500
1,000
500
0
1997 19
98
199
9
2000 2001 2002 2003 2004 2005 2006*200
Fiscal Year *est. **budgeted
7*
*
Wetland Reserve Program
Conservation Reserve Program

Working-Land Programs
1,600
1,400
1,200
1,000
800
600
400
200
0
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06*
200
7*
*
Fiscal Year *est. **budgeted
Conservation Security Program
Wildlife Habitat Incentives Program
Ground & Surface Water
Conservation
EQIP

Agricultural Land Preservation and Other Programs
160
140
120
100
80
60
40
20
0
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
*
200
7**
Fiscal Year *est. **budgeted
Farm and Ranch Land Protection
Program
Emergency Conservation Program
Grassland Reserve Program

Technical Assistance
900
800
700
600
500
400
300
200
100
0
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06*
200
7*
*
Fiscal Year *est. **budgeted
Farm Bill Technical Assistance
Conservation Technical Assistance

All Conservation Programs
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006* 2007**
Fiscal Year * est. **budgeted
Technical Assistance
Other Programs
Land Preservation
Working Land
Land Retirement





Increase conservation funding by $7.8 billion
Consolidate existing cost-share programs into a newly designed Environmental Quality Incentives
Program (EQIP)






EQIP
WHIP
AMAP
FLEP
Ground and Surface Water Conservation
Klamath Basin Program
Increase total funding by $4.2 billion
Includes $1.7 billion for a Regional Water Program
8




Streamline working lands easement programs into one Private Lands Protection Program


Farm and Ranch Land Protection
Grassland Reserve Program

Healthy Forest Reserve Program
Increase funding by $900 million
Eliminate redundancies
9


Increase Wetlands Reserve Program funding by $2.1 billion

Increase enrollment cap from 2.3 to 3.5 million acres

Increase funding for the Conservation
Security Program by $500 million

Provide incentives for increased conservation
10



Reauthorize the Conservation Reserve
Program with added focus on the most environmentally sensitive lands

Give priority within whole field enrollments to lands utilized for biomass production
Authorize Federal agencies to accelerate the development of private markets for the trading of ecosystem benefits associated with conservation



Consolidate two emergency response programs into a new Emergency Landscape
Restoration Program

Provide a one-stop source when emergency conservation assistance is needed
Set aside 10 percent of all farm bill conservation program spending for beginning and socially disadvantaged farmers
12

All funding reflects 10-year totals unless otherwise noted

20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Historical Production Projected
Source: Renewable Fuels Association/Cattle-Fax

2500
2000
1500
1000
500
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Historical Production Projected
Source: USDA/ERS


Provide $500 million to create a Bioenergy and Bioproducts Research Program

Increase cost-effectiveness through cooperation between university and Federal scientists

Provide $500 million for rural alternative energy and energy efficiency grants

Directly assists farmers, ranchers, and rural small businesses

Source: Greg Doud, NCBA


Provide $2.1 billion in loan guarantees to support cellulosic ethanol projects in rural areas

Provide $150 million for biomass research competitive grants, focusing on cellulosic ethanol





Much of future emphasis related to ethanol will focus on cellulosic (biomass) not starch (grain) production.
Recently NCBA passed a resolution calling for an end to the $0.51/gal blender subsidy
(VEETCH).
Expect similar actions from dairy, pork and poultry producers.
Eventually economics will come into play.

U.S. Energy Secretary Samuel Bodman at the World
Economic Forum in Davos, Switzerland recently:

The U.S. “will need to have more imports of ethanol”

He does not see a 51-cent/gallon subsidy to U.S. farmers remaining in place beyond 2010 or an import tariff of 54 cents/gallon on ethanol beyond 2008.

”The idea is that at some point in the future all these technologies need to stand the test of the free market.”

Asked whether he would consider waiving the new ethanol mandate if price pressure made ethanol severely uneconomic, Bodman said that it would be waived only if the push toward more ethanol use failed.


More money for conservation programs

Consolidation of existing programs

Less reliance on foreign oil

More money for energy research

Focus on cellulosic ethanol