Public Policy and Agriculture
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1 Public Policy and Agriculture Dr. Jeff Burkhardt With Dr. John VanSickle Food & Resource Economics Department University of Florida Florida Outlook Conference November 13, 2012
2 Why Public Policy?
3 Why Public Policy? Establish & maintain public order
4 Why Public Policy? Establish & maintain public order Address issues/concerns that are out of reach of individual action
5 Why Public Policy? Establish & maintain public order Address issues/concerns that are out of reach of individual action Address changes in economic, social & cultural norms
6 Why Public Policy? Establish & maintain public order Address issues/concerns that are out of reach of individual action Address changes in economic, social & cultural norms Address natural and social emergencies
7 Why Public Policy for Food & Agriculture?
8 Why Public Policy for Food & Agriculture? Economic instability
9 Why Public Policy for Food & Agriculture? Economic instability Globalization
10 Why Public Policy for Food & Agriculture? Economic instability Globalization Technological changes
11 Why Public Policy for Food & Agriculture? Economic instability Globalization Technological changes Food safety concerns
12 Why Public Policy for Food & Agriculture? Economic instability Globalization Technological changes Food safety concerns Environmental concerns
13 Public Policy for Food & Agriculture
14 Public Policy for Food & Agriculture US Budget FY 2012 $3.796 Trillion USDA Budget FY 2012 $23.9 Billion (Decrease of $3.2 Million from 2011)
15 Public Policy for Food & Agriculture RE: Economic instability
16 Public Policy for Food & Agriculture RE: Economic instability Government needs to
17 Public Policy for Food & Agriculture RE: Economic instability Government needs to Ensure there is enough food (Quantity)
18 Public Policy for Food & Agriculture RE: Economic instability Government needs to Ensure there is enough food (Quantity) Ensure a safe and secure food supply (Quality)
19 Public Policy for Food & Agriculture RE: Economic instability Government needs to Ensure there is enough food (Quantity) Ensure a safe and secure food supply (Quality) Ensure profitable and affordable food (Price)
20 Public Policy for Food & Agriculture RE: Economic instability Government needs to Ensure there is enough food (Quantity) Ensure a safe and secure food supply (Quality) Ensure profitable and affordable food (Price) QQP
21 Policy for Food & Agriculture Farm Bill
22 Policy for Food & Agriculture Farm Bill Legislation designed to
23 Policy for Food & Agriculture Farm Bill Legislation designed to Help farmers reduce risk
24 Policy for Food & Agriculture Farm Bill Legislation designed to Help farmers reduce risk Increase competitiveness, expand domestic and international demand
25 Policy for Food & Agriculture Farm Bill Legislation designed to Help farmers reduce risk Increase competitiveness, expand domestic and international demand Promote sustainable land, air, energy and water use
26 Policy for Food & Agriculture Farm Bill Legislation designed to Help farmers reduce risk Increase competitiveness, expand domestic and international demand Promote sustainable land, air, energy and water use Provide for food security, safety and homeland security
27 Policy for Food & Agriculture Farm Bill Legislation designed to Help farmers reduce risk Increase competitiveness, expand domestic and international demand Promote sustainable land, air, energy and water use Provide for food security, safety and homeland security Expand agriculture s contribution to energy production
28 Policy for Food & Agriculture Farm Bill Title I: Commodity Programs Title II: Conservation Title III: Trade Title IV: Nutrition Programs Title V: Credit Title VI: Rural Development Title VII: Research Title VIII: Forestry Title IX: Energy Title X: Horticulture & Organic Agriculture Title XI: Livestock Title XII: Crop Insurance Title XIII: Commodity Futures Title XIV: Miscellaneous Title XV: Trade & Taxes
29 Policy for Food & Agriculture Farm Bill Title I: Commodity Programs Title II: Conservation Title III: Trade Title IV: Nutrition Programs Title V: Credit Title VI: Rural Development Title VII: Research Title VIII: Forestry Title IX: Energy Title X: Horticulture & Organic Agriculture Title XI: Livestock Title XII: Crop Insurance Title XIII: Commodity Futures Title XIV: Miscellaneous Title XV: Trade & Taxes
30 Farm Bill Expenditures 2012 Budget
31 Farm Bill Title I: Commodity Programs
32 Farm Bill Title I: Commodity Programs Support Program Crops Wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, oilseeds, peanuts, wool, honey, peas, lentils, sugar, dairy Livestock
33 Farm Bill Title I: Commodity Programs Support Program Crops Wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, oilseeds, peanuts, wool, honey, peas, lentils, sugar, dairy Livestock Direct Payments Counter-cyclical payments Marketing assistance Subsidized crop insurance Herd health assistance
34 Farm Bill Title I: Commodity Programs Support Program Crops Wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, oilseeds, peanuts, wool, honey, peas, lentils, sugar, dairy Livestock Direct Payments Counter-cyclical payments Marketing assistance Subsidized crop insurance Herd health assistance House and Senate Farm Bills eliminate direct and counter-cyclical payments for most program crops
35 Farm Bill & Florida Title I: Commodity Programs Title II: Conservation Title III: Trade Title IV: Nutrition Programs Title V: Credit Title VI: Rural Development Title VII: Research Title VIII: Forestry Title IX: Energy Title X: Horticulture & Organic Agriculture Title XI: Livestock Title XII: Crop Insurance Title XIII: Commodity Futures Title XIV: Miscellaneous Title XV: Trade & Taxes
36 Title II: Conservation Farm Bill & Florida
37 Farm Bill & Florida Title II: Conservation Conservation Stewardship Program Encourages agricultural and forestry producers to address resource concerns by additional conservation activities and improving and maintaining existing conservation systems $1.2 million in payments in fiscal year 2011
38 Farm Bill & Florida Title II: Conservation Conservation Stewardship Program Encourages agricultural and forestry producers to address resource concerns by additional conservation activities and improving and maintaining existing conservation systems $1.2 million in payments in fiscal year 2011 Conservation Reserve Program (CRP) Rental payments to help agricultural producers safeguard environmentally sensitive land STATE NUMBER OF NUMBER ACRES RENTAL CONTRACTS OF FARMS ENROLLED PAYMENTS FLORIDA 1,324 1,070 56,729 $2,275,180
39 EQIP financial and technical help to install or implement structural and management practices improving environmental quality Farm Bill & Florida
40 Farm Bill & Florida Title IV: Nutrition Programs
41 Farm Bill & Florida Title IV: Nutrition Programs Supplemental Nutrition Assistance Program (SNAP) Food Stamps
42 Farm Bill & Florida Title IV: Nutrition Programs Supplemental Nutrition Assistance Program (SNAP) Federal Funding for Florida SNAP/Food Stamps 2010 $4,416,942, $5,148,715,738 16%
43 Farm Bill & Florida Title IV: Nutrition Programs Women, Infant & Children (WIC) Federal Funding for WIC in Florida 2010 $348,063, $373,023,984
44 Farm Bill & Florida Title IV: Nutrition Programs Women, Infant & Children (WIC) Federal Funding for WIC in Florida 2010 $348,063, $373,023,984 Child and Adult Care Food Program (CACFP) Federal Funding for CACFP in Florida 2010 $150,163, $160,491,669
45 Farm Bill & Florida Title IV: Nutrition Programs Women, Infant & Children (WIC) Federal Funding for WIC in Florida 2010 $348,063, $373,023,984 Child and Adult Care Food Program (CACFP) Federal Funding for CACFP in Florida 2010 $150,163, $160,491,669 National School Lunch Program Federal Funding for School Lunches in Florida 2010 $606,298,517
46 Title VII: Research Farm Bill & Florida
47 Farm Bill & Florida Title VII: Research Hatch Act Formula Funding University of Florida 2012 Funds -- $2,968,878 University of Florida 2011 Funds -- $2,973,395
48 Farm Bill & Florida Title VII: Research Hatch Act Formula Funding University of Florida 2012 Funds -- $2,968,878 University of Florida 2011 Funds -- $2,973,395 Specialty Crop Block Grants Marketing research for fruits and tree nuts, vegetables, culinary herbs and spices, medicinal plants, nursery, floriculture, and horticulture crops USDA partner with UF, DACS, industry groups Amount Awarded 2011: $4,385,465 Number of Projects: 24
49 Farm Policy Outlook
50 Farm Policy Outlook
51 The Fiscal Cliff Farm Policy Outlook
52 Farm Policy Outlook The Fiscal Cliff Sequestration Automatic spending cuts Budget Control Act (BCA) of 2011 End of tax reduction
53 Farm Policy Outlook The Fiscal Cliff Sequestration Automatic spending cuts Budget Control Act (BCA) of 2011 End of tax reduction $28-35 billion reduction in USDA budget
54 Farm Policy Outlook Nutrition Programs will continue (reduced $$)
55 Farm Policy Outlook Nutrition Programs will continue (reduced $$) Direct & Counter-cyclical payments ended risk management policies implemented
56 Farm Policy Outlook Nutrition Programs will continue (reduced $$) Direct & Counter-cyclical payments ended risk management policies implemented Some subsidies remain Crop insurance & dairy & livestock (reduced $$)
57 Farm Policy Outlook Nutrition Programs will continue (reduced $$) Direct & Counter-cyclical payments ended risk management policies implemented Some subsidies remain Crop insurance & dairy & livestock (reduced $$) Conservation Programs continue (reduced $$)
58 House vs. Senate Farm Policy Outlook
59 House vs. Senate Farm Policy Outlook House: Federal Agriculture Reform and Risk Management Act of 2012 Cuts ~ $35 billion
60 House vs. Senate Farm Policy Outlook House: Federal Agriculture Reform and Risk Management Act of 2012 Cuts ~ $35 billion Senate: Agriculture, Food Reform & Jobs Act of 2012 Cuts ~ $23 billion
61 Farm Policy Outlook House vs. Senate Points of Contention Supplemental Nutrition Assistance Program -$1.6 b vs. -$400 m
62 Farm Policy Outlook House vs. Senate Points of Contention Supplemental Nutrition Assistance Program -$1.6 b vs. -$400 m Crop insurance to replace direct payments (commodities)
63 Farm Policy Outlook House vs. Senate Points of Contention Supplemental Nutrition Assistance Program -$1.6 b vs. -$400 m Crop insurance to replace direct payments (commodities) Conservation incentive programs
64 Farm Policy Outlook House vs. Senate Points of Contention Supplemental Nutrition Assistance Program -$1.6 b vs. -$400 m Crop insurance to replace direct payments (commodities) Conservation incentive programs Trade and marketing support programs
65 Thank you
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