02/03/06 Ag budgets, Farm Bill, and elections

The debate over the federal ag budget for fiscal year 2006, from the standpoint of final adoption, ended this week when the House of Representatives narrowly approved a budget reconciliation package that included close to $3 billion dollars in reductions in spending to federal agriculture programs. The measure went back to the House for final approval after the Senate made minor modifications last year. The resulting ag budget contains across the board cuts in areas like research, conservation, direct payments, rural development, and energy. But according to the Congressional Relations Director for the American Farm Bureau Federation, Dana Brooks, compared to the original budget proposal made by the Bush Administration, U.S. agriculture got off easy. BROOKS: We still wish that we could have gotten by without cuts to agriculture, but realizing that we're in a deficit. We are going to continue this deficit in the short term, and possible, long term future. I'd say that we're $2.7 billion than the initial $9 billion that we were very concerned about. But before Brooks and other proponents of federal ag spending can breath easier, President Bush is scheduled next week to send his proposed fiscal year 2007 budget to Congress. And speculation is that the President may again ask for $9 billion dollars in ag spending cuts. BROOKS: The rumors are floating around that its going to be even more. Will the cuts be greater than last year? We also assume that he's going to include a payment limit provision for the cuts or the lowering of agriculture spending. Now keep in mind that there is a lot going on this year leading up to 2007. Debate on farm spending will not just be limited to the next budget, but beyond as Congress begins crafting the next Farm Bill with discussions and public hearings. Then note that all House members and one third of Senators are up for re-election this year. Factor in all those political aspects, and Brooks believes Congressional types will be very open to listen to their rural and farm based constituents when its comes to fiscal matters related to agriculture and federal ag programs. BROOKS: The chambers are still very closely divided. A lot of political sensitivity right now in Washington D.C. in regard to travel and different things are priority right now. I think there's a lot of concerns they are looking at. I think we might have a short year, and I think that definitely the election cycle is going play into all this.