Affecting a Changing Economy SOUTHERN REGION PLN CONFERENCE 1

SOUTHERN REGION PLN CONFERENCE

Affecting a Changing Economy

1 | Southern Region PLN Conference | August 24, 2010

AFFECTING A CHANGING ECONOMY

Presentation Summary

• Authorization and Appropriations

• Appropriations Situation and Outlook

• Appropriations Track Record

• Future Appropriations Challenges

• 2012 Farm Bill Outlook & Challenges

• Politics as Usual?



Authorization & Appropriations


AUTHORIZATION AND APPROPRIATIONS

Land-Grant System and USDA

• Single largest Federal source of funding for land-grant ag colleges is U.S. Department of

Agriculture (USDA)

• Two USDA agencies fund most agriculture research, education, extension:

– Agricultural Research Service (intramural)

– National Institute of Food and Agriculture

(extramural)

• NIFA provides most land-grant funding



NIFA Funding Mechanisms

• NIFA funding flows to land-grant universities via three mechanisms:

– Directly to eligible institutions (for capacity programs) under statutory formulas

– Competitively awarded, peer-reviewed grants

– Congressional earmarks



Authorization and Appropriations

• General Rule: USDA funding for land-grant universities takes two steps:

– Programs periodically authorized (Farm Bill)

– Funds annually appropriated for each program

• Exception: Four NIFA programs receive

“mandatory” funds, meaning no appropriation is required


APPROPRIATIONS UPDATE/OUTLOOK

BAA’s Overarching NIFA Objectives

• Increase AFRI to reach its full authorized level by F.Y. 2012

• Increase funding to grow all NIFA capacity programs listed in 2008 Farm Bill

• Sustain full funding for mandatory programs established in 2008 Farm Bill

• Funding at no less than F.Y. 2010 level or

President Budget for all other programs



Current Status

• House Agriculture Appropriations

Subcommittee marked up its bill on June 30

• Senate Appropriations Committee marked up its bill on July 15

• House Appropriations Committee markup not yet scheduled



NIFA Lines Targeted for Enhancement

NIFA Budget Line F.Y. 2010 APLU House* Senate

Ag and Food Research Initiative 262.482

428.845

312.400

310.074

Smith Lever 3(b) and 3(c)

Hatch Act

297.500

215.000

350.000

240.000

305.000

220.00

297.500

215.000

Evans-Allen

1890 Institutions Extension

McIntire-Stennis

1994 Institutions Extension

48.500

42.677

29.000

4.321

55.000

50.000

35.000

8.000

51.000

46.700

29.500

5.321

48.500

42.677

29.000

5.321

Total Increase over F.Y. 2010 >> 70.441

48.592



NIFA Programs with Mandatory Funding

NIFA Mandatory Program Authorized APLU House* Senate

Organic Research/Extension

Specialty Crops Research

Beginning Farmer/Rancher

Biomass R&D

Total ($Millions)

20

50

19

30

119

20

50

19

30

119

20

50

19

30

119

20

50

19

30

119

*Tentative (Subcommittee) Results



Agency / Program Increases (House)*

Agency / Program

McGovern-Dole

Food and Drug Administration

Farm Service Agency

Food Safety Inspection Service

National Institute of Food & Ag.

Natural Resources Cons. Service

P.L. 480

Special Supp. Nutrition Prog. (WIC)

Agricultural Research Service

Animal Plant Health Inspection Serv.

Rural Development Programs

*Tentative (Subcommittee) Results

F.Y. 2010

209.500

2,357.089

1,724.847

F.Y. 2011 Change ($M) Change (%)

266.500

2,571.282

1,832.515

57.000

214.193

107.668

27.2%

9.1%

6.2%

1,018.520

1,358.768

1,036.900

1,382.601

1,008.520

1,012.129

1,690.000 1,690.000

7,252.000

1,250.512

7,127.000

1,219.203

909.665

2 ,977.877

884.639

2,850.221

18.380

23.833

3.609

0

(125.000)

(31.309)

(25.026)

( 127.656)

-2.8%

-4.3%

1.8%

1.8%

0.4%

0%

-1.7%

-2.5%



Agency / Program Changes (Senate)

Agency / Program

Food and Drug Administration

Natural Resources Cons. Service

Food Safety Inspection Service

Animal Plant Health Inspection Svc.

Agricultural Research Service

F.Y. 2010

2,344.656

1,008.520

1,018.520

909.665

1,250.512

McGovern-Dole

Food for Peace (P.L. 480)

209.500

1,690.000

Special Supp. Nutrition Prog. (WIC) 7,252.000

National Institute of Food & Ag.

Farm Service Agency

Rural Development Programs

1,358.768

1,724.847

2,936.000

F.Y. 2011 Change ($M) Change (%)

2,503.849

1,044.600

159.193

36.080

6.8%

3.6%

1,047.200

931.321

28.680

21.656

10.313

2.8%

2.4%

0.8% 1,260.825

209.500

1,690.000

7,252.000

0.000

0.000

0.000

0.0%

0.0%

0.0%

1,326.108

1,659.728

2,768.000

-32.660

-65.119

-168.000

-2.4%

-3.8%

-5.7%



Factors Behind the Numbers

• House able to “capture” more money through limitations on mandatory programs

• WIC not a “problem” (first time since 1997)

• Senate 302(b) allocation $300 M less than

F.Y. 2010



What’s the End Game?

• Great uncertainty surrounds House and

Senate floor debate, joint House-Senate conference, and other “regular order steps”

• Continuing Resolution(s) / Omnibus likely



Appropriations Track Record


APPROPRIATIONS TRACK RECORD

CSREES / NIFA Appropriated

$Millions

1,600

1,200

1,038

1,177

1,238

1,359 1,383

1,326

2002 2008 2009 2010 2011-H 2011-S



NIFA Appropriated + Mandatory

$Millions

2,000

NIFA Top Line

Mandatory

1,500

117

119

119

106

30

1,000

1,383

1,238

1,359 1,326

1,177

1,038

2002 2008 2009 2010 2011-H 2011-S



Growth in 1890 Land-Grant Programs

$Millions

150

Evans-Allen

1890s Extension

1890s Facilities

1890s Capacity

100

50

2002 2008 2009 2010 2011-H 2011-S



Growth in Key Extension Programs

$Millions

400

Smith-Lever 3(b)(c)

EFNEP

300

2002 2008 2009 2010 2011-H 2011-S



Growth in Key Research Programs

$Millions

300

Hatch Act

McIntire-Stennis

200

2002 2008 2009 2010 2011-H 2011-S



Growth in NRI / AFRI

$Millions

400

NRI / AFRI

300

200

100

2002 2008 2009 2010 2011-H 2011-S



Future Funding Challenges


FUTURE FUNDING CHALLENGES

BAC Priorities, Earmarks, etc.

$Millions

1,500

BAC Priorities

Earmarks

Other NIFA Lines

318

305

284

283

266 271 275

1,000

94

94

155

17

141

202 151

500

727

908

766

814

899

970 948

0

2006 2007 2008 2009 2010 2011-H 2011-S



Looking Over the Horizon

• 2010 elections loom large; control of both

House and Senate at stake

• Political mood across the country is both anti-incumbent and anti-government

• Republicans likely to go after spending in general and earmarks in specific

• Then there’s 2012: Presidential election year and congressional redistricting



What’s at Risk for System?

• NIFA earmarks likely to remain problematic

• Earmark “reductions” not automatically matched with increases in NIFA capacity or competitive programs

• Agency top line likely to shrink without concerted campaign to maintain what we have and grow strategically

• NIFA mandatory funding also at high risk



Farm Bill Status & Challenges


FARM BILL STATUS & CHALLENGES

Status of Farm Bill

• House Agriculture Committee has already held 12 hearings across the country to review agriculture policy in anticipation of 2012

Farm Bill

• Senate Committee has held one hearing with more planned in coming months



Challenge is Budget, Budget, Budget

• Likely Best Case Scenario: A “Baseline Bill”

– Only Ag Committee baseline funding

– No funding from other committees (as occurred in 2008)

• Ag Committees starting in huge hole

– No post-2012 baseline for 37 programs/provisions

– $9 billion required to provide similar funding through F.Y.

2017

– Reconciliation?



NIFA Mandatory Funding

• Four NIFA programs authorized in 2008

Farm Bill have no baseline beyond F.Y. 2012

NIFA Mandatory Program

Organic Research/Extension

Specialty Crops Research

Beginning Farmer/Rancher

Biomass R&D

Total ($Millions)

F.Y. 2012 Beyond 5-Years*

20

50

19

40

$129 M

0

0

0

0

78

230

75

118

$0 $501 M

* F.Y. 2008 to F.Y. 2012 Totals



POLITICS AS USUAL?



2010 Elections Could Change Everything

• Member changes on Agriculture and

Appropriations Committees cause changes in priorities

• 112th Congress will have many “freshmen”, with many ending up on Ag Committee as new Farm Bill drafted

• Republicans could control one or both chambers; Dem. majorities surely reduced

• Budget deficit concerns likely to rise


NATIONAL POLITICAL LANDSCAPE

Overview

• All 435 Members of House up for reelection

• 36 Senate seats up (normally 33-34)

• Midterm election often seen as referendum on President

• Strong anti-incumbent mood

– Evident in primary defeats and opinion polls

– Failure of government to address “big” issues

(oil spill, deficit spending, economy, terror, etc.)



State of Play: House of Representatives

• Current split: 255 DEM / 178 GOP

• Retiring, defeated, etc: 18 DEM / 22 GOP

• Present CQ outlook:

– “Safe” 171 D / 162 R

– “Likely”

– “Leans”

0

0

27 D

30 D

/ 00

/ 0

8 R

8 R

• Leaving 29 “toss up” races

• Some predict up to 100 new House members

• 214-181-40—Not a locker code!



House Ag Appropriations Subcommittee

Democrats

Rosa DeLauro (CT)

Sam Farr (CA)

Allen Boyd (FL) *

Marcy Kaptur (OH)

Chet Edwards (TX) *

Maurice D. Hinchey (NY)

Sanford D. Bishop, Jr. (GA)

Lincoln Davis (TN) *

David R. Obey (WI), Ex Officio *

Republicans

Jack Kingston (GA)

Tom Latham (IA)

Jo Ann Emerson (MO)

Rodney Alexander (LA)

Jerry Lewis (CA), Ex Officio



State of Play: Senate

• Current split: 59 DEM / 41 GOP

• Retiring, defeated, etc: 6 DEM / 7 GOP

• Present CQ outlook (36 races):

– “Safe”

0 6 D / 10 R

– “Likely” 0 1 D / 0 4 R

– “Leans” 0 3 D / 0 4 R

• Leaving 8 “toss up” races

• Senate almost certainly more evenly split



Senate Ag Appropriations Subcommittee

Democrats

Herb Kohl (WI)

Tom Harkin (IA)

Byron Dorgan (ND) *

Dianne Feinstein (CA)

Richard Durbin (IL)

Tim Johnson (SD)

Ben Nelson (NE)

Jack Reed (RI)

Mark Pryor (AR)

Arlen Specter (PA) *

Republicans

Sam Brownback (KS) *

Robert Bennett (UT) *

Thad Cochran (MS)

Christopher Bond (MO) *

Mitch McConnell (KY)

Susan Collins (ME)



Senate Agriculture Committee

Democrats

Blanche Lincoln (AR) *

Patrick J. Leahy (VT)

Tom Harkin (IA)

Kent Conrad (ND)

Max Baucus (MT)

Debbie Stabenow (MI)

Ben Nelson (NE)

Sherrod Brown (OH)

Robert Casey, Jr. (PA)

Amy Klobuchar (MN)

Michael Bennet (CO) *

Kirsten Gillibrand (NY)


Republicans

Saxby Chambliss (GA)

Richard G. Lugar (IN)

Thad Cochran (MS)

Mitch McConnell (KY)

Pat Roberts (KS)

Mike Johanns (NE)

Charles Grassley (IA)

John Thune (SD)

John Cornyn (TX)


Bottom Line:

We face a period of significant budgetary challenges where protecting what we’ve fought so hard to create in NIFA will take center stage, and where speaking with a single voice will be more important than ever before if we are to continue to be able to serve our stakeholders.


Affecting a Changing Economy SOUTHERN REGION PLN CONFERENCE 1

Affecting a Changing Economy

Authorization & Appropriations

Appropriations Track Record

Future Funding Challenges

Farm Bill Status & Challenges

POLITICS AS USUAL?

Related documents

Products

Support

Affecting a Changing Economy SOUTHERN REGION PLN CONFERENCE 1