WASHINGTON, D.C. — Action in the House and Senate last week could impact future farm bill discussions, including the treatment of the SupplementalNutrition Assistance Program (SNAP) and cotton and dairy programs.

 

The House Budget Committee last week passed a 2018 budget resolution including language calling for cuts to target USDA nutrition programs. The resolution calls for budget savings and reform for mandatory spending programs, including SNAP.

The resolution, which last week did not move to the House floor, charges the House Agriculture Committee to find $10 billion in appropriations savings. Democrats quickly criticized the resolution.

“The cuts as outlined in the Majority’s budget resolution will make it much more difficult, if not near impossible, to pass a new farm bill,” said Rep. Collin Peterson (D-Minn.), Agriculture Committee ranking member. He called the resolution “more of a political exercise than a serious debate, but it could have a very real impact on the fate of the farm bill.”

Cutting SNAP would likely erode farm bill support from urban lawmakers. “If this is the budget and this is what we’re going to see in the farm bill, a cut of $10 billion, then I predict right here and now that we will not have a farm bill,” said Rep. Jim McGovern (D-Mass.), ranking member on the House Agriculture Subcommittee on Nutrition.

“And I will certainly do everything I can to kill a farm bill that has a $10 billion cut in it.”

The farm bill has long wed rural and urban lawmakers, who have long thrown their weight behind farm bill nutrition programs while supporting rural lawmaker priorities. But those demographics are changing, according to Craig Gundersen, University of Illinois Soybean Industry Endowed Professor in Agricultural Strategy, who studies federal nutrition programs.

“It’s an interesting case now because a lot more people are participating (in SNAP) in rural areas than in the past,” he said. “It’s politically difficult to say, ‘Let’s cut SNAP, but not farm programs.’”

House Nutrition Subcommittee Chair Glenn Thompson (R-Pa.) at a hearing July 18 appeared to downplay the significance of any proposed cuts in a budget resolution.

“I want (to) remind everyone it’s up to this committee to decide – the Agriculture Committee – how any required savings could be achieved, not the budget committee and not folks that are freelancing in the press,” he said.

“I would also note that we are only required to respond to reconciliation instructions that make it through the Senate and into a conference joint budget resolution. So for the time being, we’re going to keep our eye on the ball – and that means staying focused on the next farm bill.”

It is unlikely the Senate would support the deep cuts in SNAP that the House resolution apparently moves toward. According to a farm bill update published last week by the National Sustainable Agriculture Coalition (NSAC), Senate Agriculture Chair Pat Roberts (R-Kan.) views it impossible for a budget with deep SNAP cuts to pass the Senate.

“Without agreement from the Senate, the reconciliation instructions for mandatory spending would ultimately fizzle,” stated the NSAC.

If the budget resolution passes the full House, its Agriculture Committee would have to determine how to make the cuts outlined in the resolution by October. Senate action on dairy, cotton The Senate Committee on Appropriations last week unanimously approved the bill that funds farm bill programs in 2018.

“This legislation maintains a robust safety net and rejects cuts to crop insurance and commodity programs, while also making strong investments in farm service programs, ag research and rural development to support our producers and rural communities,” said Sen. John Hoeven (R-N.D.), chair of the Agriculture Appropriations Subcommittee.

The appropriations bill includes language to change cotton and dairy farm bill programs. Cotton would be designated as an “other oilseed” under Title 1 of the farm bill, which could allow cotton farmers to receive Price Loss Coverage (PLC) payments.

Dairy farmers would pay lower premiums for the first 5 million pounds of milk coverage in the Marginal Price Protection program, under the appropriations bill.

The USDA calculation of the actual margin would also change from a two-month average to monthly margin.

“The enhancements to the dairy Margin Protection Program contained in the bill would strengthen the program and help pave the way for additional necessary improvements in the upcoming farm bill,” said Jim Mulhern, National Milk Producers Federation president and CEO.

The cotton industry sought the cotton language in recent “cromnibus” legislation, action to maintain funding for government operations. Dairy-state Democrats reportedly blocked cotton program changes without dairy program changes.

“I’m very pleased to see that this bill includes a bipartisan agreement to support both dairy and cotton farmers,” said Sen. Debbie Stabenow (D-Mich.).