Budget battle shifting to agricultural appropriations subcommittee in the Senate

  • The House Appropriations Committee has approved draconian cuts in spending for farm programs in the budget proposal it reported out on May 31.
  • Those cuts would reduce federal crop insurance outlays by 59 percent and chop funding for direct payments, research, nutrition and alternative energy programs.
  • Three Iowa Congressmen are asking the Senate Susbcommittee to avoid the path followed by the House Appropriations Committee for the most part.

The 2011 Battle of the Ag Budget continues to heat up as attention shifts toward the spending cuts that are expected to be made when the Senate Appropriations Subcommittee on Agriculture, Rural Development, FDA and Related Agencies begins its deliberations.

On May 31, the House Appropriations Committee passed a $125.5 billion agricultural appropriations bill that would reduce spending by more than $7 billion below what the Obama administration requested for fiscal year 2012. The Republican-controlled House is expected to adopt the bill.

Among the cuts are language that puts a $250,000 adjusted gross income cap on eligibility for farm program payments; a $354-million reduction in research dollars that can be spent by USDA; chopping federal crop insurance program outlays by 59 percent; and a sharp curtailment in conservation and nutrition programs.

Farm organizations have already begun lobbying members of the Senate Appropriations Committee and Committee on Agriculture, Nutrition and Forestry to try to keep those provisions out of the Senate bill.

Meanwhile, Iowa’s three Democratic members of Congress are asking the Appropriations Agriculture Subcommittee to revisit spending for crop insurance and on alternative energy programs, a major issue in Iowa where much of the state’s corn crop goes into ethanol production.

The three – Bruce Baley, Leonard Boswell and Dave Loebsack – also asked that funding be restored for the U.S. Commodity Futures Trading Commission that the House Committee stripped out to delay implementation of the Dodd-Frank Finance Reform Law.

“Gas prices are climbing and crippling family budgets all over this country, but Washington politicians are trying to undercut the alternative fuel industry that helps lower gas prices and creates thousands of jobs,” said Braley. “Hard-working families and thousands of good-paying jobs depend on this funding.”

Boswell noted the House Appropriations Committee spending bill pulls funding from renewable energy programs while the federal government continues to provide billions of dollars in subsidies to oil companies.

“The House FY 2012 agriculture appropriations bill is short-sighted, and embodies what happens when appropriators legislate without talking to members of the Agriculture Committee who come from agriculture states and understand what it requires to run a farm and get food to our tables,” said Boswell.

To see a copy of the Braley-Boswell-Loebsack letter to Sens. Herb Kohl, D-Wis., and Roy Blunt, R-Mo., the chairman and ranking member of the Senate Agricultural Appropriations Subcommittee, go to http://go.usa.gov/Dm7.

The Iowa Congressmen endorsed the House Committee’s placement of a means test on farm program eligibility, however, noting that more than 30,000 farmers with farm income of $750,000 and off-farm income of $500,000 continue to receive direct payments.

“This is unacceptable, and we encourage you to continue to work on behalf of farmers, ranchers and producers who make under $250,000 adjusted gross income,” the congressmen said. “Maintaining this language secures a safety net by limiting support to only those who need it.

 

 

  

Discuss this article 2

Wwe are borrowing 40 cents of every federal dollar spent from our children and grandchildren. I'd say Chinese, but WSJ reports this week that Chinese are dumping their US Treasury notes as quickly as they can.

Given the above, in what wild sense can $7B in cuts out of ~$130B in ag spending be considered 'draconian'? Are you serious Forest? I doubt that $7B in cuts gets ag spending even back to what we were spending in 1998 before the deluge of federal spending increases the Democrat congress and this President have given us.

That federal spending must be cut should be clear to anyone. That we could expect it to be cut without ag deptartment cuts as part of the plan is not serious. Generally speaking, growers are currently making more money than they have made in decades. My family is heavily involved in farming, but to tax young working families to supply ever larger subsidies to ever larger growers is not serious. Please write about how Ag could be part of the budget solution while allowing agriculture more free market flexibility to take care of itself. That is a more difficult task I know, but all Americans should be part of the solution. All who receive federal largess should be prepared to do with less until we can pay our bills without borrowing.

By Tom Quade (not verified)  on Jun 6, 2011

If those numbers are true, then why are we cutting taxes for certain segments of the population? If we are really in those dire straits, then everyone in America should be rushing to their local IRS to help pay down that debt. Funny how I don't see that happening. Instead, we have folks in Congress targeting programs that account for far less than 1 percent of total federal spending.

By flaws  on Jun 7, 2011
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