Affecting a Changing Economy

1 | Southern Region PLN Conference | August 24, 2010

Affecting a Changing Economy

SOUTHERN REGION PLN CONFERENCE


Presentation Summary• Authorization and Appropriations• Appropriations Situation and Outlook• Appropriations Track Record• Future Appropriations Challenges• 2012 Farm Bill Outlook & Challenges• Politics as Usual?

AFFECTING A CHANGING ECONOMY


Authorization & 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

AUTHORIZATION AND APPROPRIATIONS


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



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

APPROPRIATIONS UPDATE/OUTLOOK


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 EnhancementNIFA 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) 297.500 350.000 305.000 297.500

Hatch Act 215.000 240.000 220.00 215.000

Evans-Allen 48.500 55.000 51.000 48.500

1890 Institutions Extension 42.677 50.000 46.700 42.677

McIntire-Stennis 29.000 35.000 29.500 29.000

1994 Institutions Extension 4.321 8.000 5.321 5.321

Total Increase over F.Y. 2010 >> 70.441 48.592



NIFA Programs with Mandatory FundingNIFA Mandatory Program Authorized APLU House* Senate

Organic Research/Extension 20 20 20 20

Specialty Crops Research 50 50 50 50

Beginning Farmer/Rancher 19 19 19 19

Biomass R&D 30 30 30 30

Total ($Millions) 119 119 119 119


*Tentative (Subcommittee) Results


Agency / Program Increases (House)*


Agency / Program F.Y. 2010 F.Y. 2011 Change ($M) Change (%)

McGovern-Dole 209.500 266.500 57.000 27.2%

Food and Drug Administration 2,357.089 2,571.282 214.193 9.1%

Farm Service Agency 1,724.847 1,832.515 107.668 6.2%

Food Safety Inspection Service 1,018.520 1,036.900 18.380 1.8%

National Institute of Food & Ag. 1,358.768 1,382.601 23.833 1.8%

Natural Resources Cons. Service 1,008.520 1,012.129 3.609 0.4%

P.L. 480 1,690.000 1,690.000 0 0%

Special Supp. Nutrition Prog. (WIC) 7,252.000 7,127.000 (125.000) -1.7%

Agricultural Research Service 1,250.512 1,219.203 (31.309) -2.5%

Animal Plant Health Inspection Serv. 909.665 884.639 (25.026) -2.8%

Rural Development Programs 2 ,977.877 2,850.221 ( 127.656) -4.3%*Tentative (Subcommittee) Results


Agency / Program Changes (Senate)


Agency / Program F.Y. 2010 F.Y. 2011 Change ($M) Change (%)

Food and Drug Administration 2,344.656 2,503.849 159.193 6.8%

Natural Resources Cons. Service 1,008.520 1,044.600 36.080 3.6%

Food Safety Inspection Service 1,018.520 1,047.200 28.680 2.8%

Animal Plant Health Inspection Svc. 909.665 931.321 21.656 2.4%

Agricultural Research Service 1,250.512 1,260.825 10.313 0.8%

McGovern-Dole 209.500 209.500 0.000 0.0%

Food for Peace (P.L. 480) 1,690.000 1,690.000 0.000 0.0%

Special Supp. Nutrition Prog. (WIC) 7,252.000 7,252.000 0.000 0.0%

National Institute of Food & Ag. 1,358.768 1,326.108 -32.660 -2.4%

Farm Service Agency 1,724.847 1,659.728 -65.119 -3.8%

Rural Development Programs 2,936.000 2,768.000 -168.000 -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



CSREES / NIFA Appropriated

APPROPRIATIONS TRACK RECORD

$Millions

2002 2008 2009 2010 2011-H 2011-S

1,200

1,600

1,0381,177 1,238

1,359 1,383 1,326


NIFA Appropriated + Mandatory


$Millions

2002 2008 2009 2010 2011-H 2011-S

1,000

1,500

2,000

1,0381,177 1,238 1,359 1,383 1,326

30

106117 119 119

NIFA Top LineMandatory


Growth in 1890 Land-Grant Programs


$Millions

2002 2008 2009 2010 2011-H 2011-S

50

100

150Evans-Allen1890s Extension1890s Facilities1890s Capacity


Growth in Key Extension Programs


$Millions

2002 2008 2009 2010 2011-H 2011-S

300

400Smith-Lever 3(b)(c)EFNEP


Growth in Key Research Programs


$Millions

2002 2008 2009 2010 2011-H 2011-S

200

300Hatch ActMcIntire-Stennis


Growth in NRI / AFRI


$Millions

2002 2008 2009 2010 2011-H 2011-S

100

200

300

400NRI / AFRI


Future Funding Challenges



BAC Priorities, Earmarks, etc.

FUTURE FUNDING CHALLENGES

$Millions

2006 2007 2008 2009 2010 2011-H 2011-S0

500

1,000

1,500

727908

766 814 899 970 948

20217

151 141155 94 94

266 271 275 283305 318 284

BAC PrioritiesEarmarksOther NIFA Lines


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



• 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

Status of Farm Bill

FARM BILL STATUS & CHALLENGES


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 F.Y. 2012 Beyond 5-Years*

Organic Research/Extension 20 0 78

Specialty Crops Research 50 0 230

Beginning Farmer/Rancher 19 0 75

Biomass R&D 40 0 118

Total ($Millions) $129 M $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



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.)

NATIONAL POLITICAL LANDSCAPE


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” 027 D /008 R – “Leans” 030 D / 08 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 Republicans

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 *

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” 06 D / 10 R– “Likely” 01 D / 04 R – “Leans” 03 D / 04 R

• Leaving 8 “toss up” races• Senate almost certainly more evenly split



Senate Ag Appropriations Subcommittee



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) *

Sam Brownback (KS) * Robert Bennett (UT) * Thad Cochran (MS) Christopher Bond (MO) * Mitch McConnell (KY) Susan Collins (ME)


Senate Agriculture Committee



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)

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.


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Affecting a Changing Economy