farm bill 5 22-10

Brad Redlin, DirectorBrad Redlin, DirectorIWLA Agricultural ProgramsIWLA Agricultural Programs

Upper Mississippi River Upper Mississippi River InitiativeInitiative

Missouri River Missouri River InitiativeInitiative

AgriculturalAgriculturalConservationConservation

Introduction Introduction to the to the

Farm BillFarm Bill

IWLA Agricultural Programs

1. Background

2. Federal Farm Bill

3. Agricultural Conservation

52 percent of total U.S. land is in agricultural use.52 percent of total U.S. land is in agricultural use.

Urban land use is 2.6 percent.Urban land use is 2.6 percent.

Parks and wildlife areas are 13.1 percent.Parks and wildlife areas are 13.1 percent.

Farm policy directly impacts environment.Farm policy directly impacts environment.

5,200 square mile average Hypoxic zone 1985-2010.5,200 square mile average Hypoxic zone 1985-2010. 7,722 square miles in 2010.7,722 square miles in 2010.

US EPA Office of Water

IWLA Agricultural Programs

1. Background

2. Federal Farm Bill

3. Agricultural Conservation

Title ICommodity 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 and Organic Agriculture Title XI Livestock Title XII Crop Insurance and Disaster Assistance Title XIII Commodity Futures Title XIV Miscellaneous Title XV Tax Provisions

2008

2008 Farm Bill spends $35 billion Title I, $25 billion Title II.2008 Farm Bill spends $35 billion Title I, $25 billion Title II.

2008 Farm Bill increased conservation $4 billion 2008 Farm Bill increased conservation $4 billion

Highest payments per acre correspond to highest runoff risk.Highest payments per acre correspond to highest runoff risk.

2010 Gulf Hypoxic zone forecast 7,776 sq. miles (52010 Gulf Hypoxic zone forecast 7,776 sq. miles (5thth largest) largest)

May-June 2008 Mississippi basin nitrogen 7,761 metric tons/dayMay-June 2008 Mississippi basin nitrogen 7,761 metric tons/day

Nitrogen

“Simply put, commodity programs wed farming regions to an ongoing pattern of economic consolidation. It should not be surprising, therefore, that the very places that depend most on federal farm payments also happen to be places where economic consolidation is happening apace…. Traditional programs simply do not provide the economic lift that farming regions need going forward.” -Federal Reserve Bank, Center for the Study of Rural America, 2005

Five crops dominate commodity programs; regional participation.Five crops dominate commodity programs; regional participation.

Conservation Title contains a suite of programs.Conservation Title contains a suite of programs.

Programs meet different goals and utilize different methods.Programs meet different goals and utilize different methods.

Conservation ComplianceConservation ComplianceHighly Erodible Land Conservation / Sodbuster, Wetland Conservation (Swampbuster)

Reduce soil erosion on the Nation’s cropland; Protect the Nation’s long-term capability to produce food and fiber; Reduce sedimentation and improve water quality; and, Preserve and protect the Nation’s wetlands.

Penalties are reduction or loss of farm program payments.Penalties are reduction or loss of farm program payments.

Ducks Unlimited photo

NRCS photoNRCS photo

Farm participation in Farm Bill programs.Farm participation in Farm Bill programs.

Conservation cut $5 billion from ‘02 Farm Bill authorization.Conservation cut $5 billion from ‘02 Farm Bill authorization.White House, Senate, House all proposed FY11 conservation White House, Senate, House all proposed FY11 conservation cutscuts

2002

80% of compliance violations were waived on appeal.80% of compliance violations were waived on appeal.

• Sodbuster no deterrentSodbuster no deterrent

• Crop insurance is Crop insurance is incentive to convertincentive to convert

• Grassland conversion Grassland conversion counties netted double counties netted double insurance benefits of insurance benefits of other countiesother counties

““Sodsaver”Sodsaver”•Sodsaver provision: Any land without a prior cropping history will be ineligible for crop insurance and disaster payments.

•Applies only in Prairie Pothole Region of IA, MN, MT, ND and SD -- and only by enactment of the Governor.

Ducks Unlimited photo

Ducks Unlimited photo

Ethanol Dependency -- 2-2-09 A new South Dakota State University study highlights the ethanol industry and its importance for economic viability. In South Dakota, 60%of the corn produced went into ethanol production. In Iowa, that figure is 50%. Forty percent of Nebraska's corn goes to ethanol production; in Minnesota and Illinois, that figure is 30%. SDSU economists say this study implies a growing level of dependency on the ethanol industry for the health of the rural economy.

Energy Independence and Security Act of 2007Energy Independence and Security Act of 2007 (P.L. 110-140) (P.L. 110-140) signed Dec. 19, 2007

36 billion gal. total in 2022; max 15 billion from corn

21 billion in 2022 from “advanced biofuel” GHG < 50%

IWLA Agricultural Programs

1. Background

2. Federal Farm Bill

3. Agricultural Conservation

2008 Food, Conservation, and Act retained and revised2008 Food, Conservation, and Act retained and revised

Conservation programs.Conservation programs.

All Good Faith determinations must be reviewed at state level.All Good Faith determinations must be reviewed at state level.

Graduated Penalties established for HELC violations.Graduated Penalties established for HELC violations.

FAPRI

FAPRI

FAPRI

FAPRI

Participation pays off.Participation pays off.

Without USDA Conservation:Without USDA Conservation:

►450 million tons of topsoil lost every year.

►170,000 miles of unprotected streams.

►48 million more tons of carbon dioxide.

►40 million fewer acres of wildlife habitat.

►2.2 million fewer ducks.

►13.5 million fewer pheasants.

USDA NASS August 2008

“Natural Amenities”Economic Research Service/USDA:

Protecting and enhancing naturalProtecting and enhancing natural

amenities—pleasant landscapes, outdooramenities—pleasant landscapes, outdoor

recreation, community life—drawsrecreation, community life—draws

population and economic vitality.population and economic vitality.

Natural amenities are highly correlatedNatural amenities are highly correlated

with population and employment growthwith population and employment growth——

they even shape agriculture. The numberthey even shape agriculture. The number

of farms has increased in counties withof farms has increased in counties with

high levels of natural amenities.high levels of natural amenities.

USDA photo

USDA photo

USDA photo

www.iwla.orgwww.iwla.org

Stewardship, Prosperity, and Stewardship, Prosperity, and FairnessFairness

The Izaak Walton League of America’s values-based vision of agriculture for all

of America

Brad RedlinDirector, Agricultural Programs651.649.1446 ex 13bredlin@iwla.org

CSP contracts 2010 #1