The White House released its detailed proposed budget for Fiscal Year 2018 that included deep cuts to agricultural and rural related agencies and programs, including a cut farm bill programs of nearly $230 billion and a 21% decrease in the U.S. Department of Agriculture.
?The American Farm Bureau Federation and its members are concerned about the federal budget deficit. However, we also know that agriculture has done its fair share to help reduce the deficit. Going back to the early 1980s, agriculture often has been targeted to generate budget savings, from the reconciliation bills in the late 1980s and 1990s to farm bill reforms as recently as 2014,? said Zippy Duvall, American Farm Bureau Federation president. ?The administration?s budget proposal fails to recognize agriculture?s current financial challenges or its historical contribution to deficit reduction. It would gut federal crop insurance, one of the nation?s most important farm safety-net programs. It would drastically reshape important voluntary conservation programs and negatively impact consumer confidence in critical meat and poultry inspection. This proposal would hamper the viability of plant and animal security programs at our borders and undermine the nation?s grain quality and market information systems. It would stunt rural America?s economic growth by eliminating important utility programs and other rural development programs.?
The budget proposal cuts include:
- Cutting the federal crop insurance program by $28.56 billion over the 2018-2027 period
- Eliminating funding for the Market Access Program (MAP) ($200 million per year) and Foreign Market Development (FMD) program ($34.5 million per year)
- Reducing conservation program funding by $5.8 billion over the 2018-2027 period.
?The time and place to debate farm bill programs is during the farm bill reauthorization, not the annual budget process. The farm bill represents a five-year commitment to America?s farmers and ranchers, which Congress made in 2014. We are counting on Congress to honor that commitment, and reject cuts that would be harmful for rural America. These proposed budget cuts would hurt farmers? ability to manage risk, grow their revenues, and farm more sustainably,? said the National Corn Growers Association in a statement. ?Targeting the federal crop insurance program is extremely shortsighted. It is especially harmful during an extended period of low commodity prices. NCGA members consistently tell us that crop insurance is their most important risk management tool. This public-private partnership helps farmers manage their risk, and it saves taxpayers money in the long run by reducing reliance on ad hoc disaster assistance.?
NCGA also pointed out the importance of MAP and FMD.
?MAP and FMD are successful programs that build global demand for U.S. farm products, and increase income and jobs in our communities. MAP and FMD create an average return on investment of $28 for every $1 spent, and account for 15% of all U.S. ag export revenue ? making them a solid investment. At a time when the farm economy is struggling, we should be investing more in these programs, not less,? NCGA said. ?Finally, the budget calls for streamlining conservation programs, which includes eliminating any new enrollment into the Conservation Stewardship Program (CSP). Voluntary conservation programs such as CSP help farmers to be good environmental stewards, which benefits everyone.?
USDA Secretary Sonny Perdue acknowledged the budgetary challenge, but supports the decision.
?President Trump promised he would realign government spending, attempt to eliminate duplication or redundancy, and see that all government agencies are efficiently delivering services to the taxpayers of America. And that?s exactly what we are going to do at the U.S. Department of Agriculture,? Perdue said. ?Having been the governor of Georgia from 2003 to 2011 ? not during the best economic times ? we did what it took to get the job done, just like the people involved in every aspect of American agriculture do every single day. While the President?s budget fully funds nutrition programs, wildland fire suppression and food safety, and includes several new initiatives and increases for Rural Development, whatever form the final budget takes, it is my job as Secretary of Agriculture to manage and implement that plan, while still fulfilling the core mission of USDA.?
