Vol. 3, No. 15 - November 2, 2005
 

Budget Reconciliation Bill Cuts Array of Ag Programs

To Members of the NASULGC System:

This week the Senate is considering legislation to effect $39 billion in cuts to mandatory spending programs over the next five years, in compliance with the F.Y. 2006 congressional budget resolution. Next week the House is scheduled to consider its $50 billion version of the budget reconciliation measure.

As you know, the 2002 Farm Bill provided funding for the Initiative for Future Agriculture and Food Systems (IFAFS) of $160 million in F.Y. 2006 and $200 million annually thereafter. While funds for IFAFS have not been allowed to be spent for this program in recent years, the IFAFS budget "baseline" serves as an important source of funding for other important agriculture research initiatives.

Earlier this year, it became clear that the IFAFS program was likely to be a target for being zeroed out as part of the budget reconciliation process. In response, leaders of the Budget and Advocacy Committee (BAC) worked with The BRT to urge key Members of Congress to protect the IFAFS budget baseline.

Initially, the House Agriculture Committee's reconciliation proposal reportedly would have achieved about $970 million in savings by zeroing out the IFAFS program altogether. After protests regarding the IFAFS cuts and other issues, the committee scaled back the IFAFS cuts to $620 million by zeroing out the program in fiscal years 2007 through 2009. The IFAFS funding baseline would be preserved at $200 million in F.Y. 2010 and thereafter.

The Senate Agriculture Committee's reconciliation proposal would reduce IFAFS funding by $336 million over the next five years, by reducing funding to $104 million in F.Y. 2006, and to $130 million in each of fiscal years 2007 through 2010. Under the Senate proposal, the IFAFS funding baseline would be preserved at $200 million in F.Y. 2011 and thereafter.

A table summarizing the year-to-year current IFAFS funding, and funding under the House and Senate budget reconciliation proposals follows for your information:

IFAFS Level ($millions) FY'06 FY'07 FY'08 FY'09 FY'10 FY'11+
Current Law 160 200 200 200 200 200
House Reconciliation 160 0 0 0 200 200
Senate Reconciliation 104 130 130 130 130 200

The House and Senate Agriculture reconciliation proposals include reductions in commodity, conservation, nutrition, rural development, energy, and agriculture research programs over the next five years. The specifics of these program cuts, including the agriculture research cuts, will change as the measure moves through the legislative process.

The BRT and the BAC will continue to monitor this situation and will keep you apprised of developments in the weeks ahead.

Fred J. Clark
Cornerstone Government Affairs

BRT Report from Washington is edited by Fred H. Hutchison on behalf of the BRT. The BRT, comprised of Fleishman-Hillard Government Relations, Fleishman-Hillard Inc., and Cornerstone Government Affairs, represents the Budget and Advocacy Committee of NASULGC's Board on Agriculture Assembly before Congress and executive branch agencies. © 2006, Fleishman-Hillard Government Relations. For more information: www.nasulgc-bac.com