Affecting a Changing Economy

1. Affecting a Changing Economy

2. Presentation Summary • Authorization and Appropriations • Appropriations Situation and Outlook • Appropriations Track Record • Future Appropriations Challenges • 2012 Farm Bill Outlook & Challenges • Politics as Usual?

3. Authorization & Appropriations

4. Land-Grant System and USDA • Single largest Federal source of funding for land-grant ag colleges is U.S. Department of Agriculture (USDA) • Two USDA agencies fund most agriculture research, education, extension: • Agricultural Research Service (intramural) • National Institute of Food and Agriculture (extramural) • NIFA provides most land-grant funding

5. NIFA Funding Mechanisms • NIFA funding flows to land-grant universities via three mechanisms: • Directly to eligible institutions (for capacity programs) under statutory formulas • Competitively awarded, peer-reviewed grants • Congressional earmarks

6. Authorization and Appropriations • GeneralRule: USDA funding for land-grant universities takes two steps: • Programs periodically authorized (Farm Bill) • Funds annually appropriated for each program • Exception: Four NIFA programs receive “mandatory” funds, meaning no appropriation is required

7. BAA’s Overarching NIFA Objectives • Increase AFRI to reach its full authorized level by F.Y. 2012 • Increase funding to grow all NIFA capacity programs listed in 2008 Farm Bill • Sustain full funding for mandatory programs established in 2008 Farm Bill • Funding at no less than F.Y. 2010 level or President Budget for all other programs

8. Current Status • House Agriculture Appropriations Subcommittee marked up its bill on June 30 • Senate Appropriations Committee marked up its bill on July 15 • House Appropriations Committee markup not yet scheduled

9. NIFA Lines Targeted for Enhancement

10. NIFA Programs with Mandatory Funding *Tentative (Subcommittee) Results

11. Agency / Program Increases (House)* *Tentative (Subcommittee) Results

12. Agency / Program Changes (Senate)

13. Factors Behind the Numbers • House able to “capture” more money through limitations on mandatory programs • WIC not a “problem” (first time since 1997) • Senate 302(b) allocation $300 M less than F.Y. 2010

14. What’s the End Game? • Great uncertainty surrounds House and Senate floor debate, joint House-Senate conference, and other “regular order steps” • Continuing Resolution(s) / Omnibus likely

15. Appropriations Track Record

16. CSREES / NIFA Appropriated

17. NIFA Appropriated + Mandatory

18. Growth in 1890 Land-Grant Programs

19. Growth in Key Extension Programs

20. Growth in Key Research Programs

21. Growth in NRI / AFRI

22. Future Funding Challenges

23. BAC Priorities, Earmarks, etc.

24. Looking Over the Horizon • 2010 elections loom large; control of both House and Senate at stake • Political mood across the country is both anti-incumbent and anti-government • Republicans likely to go after spending in general and earmarks in specific • Then there’s 2012: Presidential election year and congressional redistricting

25. What’s at Risk for System? • NIFA earmarks likely to remain problematic • Earmark “reductions” not automatically matched with increases in NIFA capacity or competitive programs • Agency top line likely to shrink without concerted campaign to maintain what we have and grow strategically • NIFA mandatory funding also at high risk

26. Farm Bill Status & Challenges

27. Status of Farm Bill • House Agriculture Committee has already held 12 hearings across the country to review agriculture policy in anticipation of 2012 Farm Bill • Senate Committee has held one hearing with more planned in coming months

28. Challenge is Budget, Budget, Budget • Likely Best Case Scenario: A “Baseline Bill” • Only Ag Committee baseline funding • No funding from other committees (as occurred in 2008) • Ag Committees starting in hugehole • No post-2012 baseline for 37 programs/provisions • $9billion required to provide similar funding through F.Y. 2017 • Reconciliation?

29. NIFA Mandatory Funding • Four NIFA programs authorized in 2008 Farm Bill have nobaseline beyond F.Y. 2012 *F.Y. 2008 to F.Y. 2012 Totals

30. POLITICS AS USUAL?

31. 2010 Elections Could Change Everything • Member changes on Agriculture and Appropriations Committees cause changes in priorities • 112th Congress will have many “freshmen”, with many ending up on Ag Committee as new Farm Bill drafted • Republicans could control one or both chambers; Dem. majorities surely reduced • Budget deficit concerns likely to rise

32. Overview • All 435 Members of House up for reelection • 36 Senate seats up (normally 33-34) • Midterm election often seen as referendum on President • Strong anti-incumbent mood • Evident in primary defeats and opinion polls • Failure of government to address “big” issues (oil spill, deficit spending, economy, terror, etc.)

33. State of Play: House of Representatives • Current split: 255 DEM / 178 GOP • Retiring, defeated, etc: 18 DEM / 22 GOP • Present CQ outlook: • “Safe” 171 D / 162 R • “Likely” 027 D /008 R • “Leans” 030 D / 08 R • Leaving 29 “toss up” races • Some predict up to 100 new House members • 214-181-40—Not a locker code!

34. House Ag Appropriations Subcommittee

35. State of Play: Senate • Current split: 59 DEM / 41 GOP • Retiring, defeated, etc: 6 DEM / 7 GOP • Present CQ outlook (36 races): • “Safe” 06 D / 10 R • “Likely” 01 D / 04 R • “Leans” 03 D / 04 R • Leaving 8 “toss up” races • Senate almost certainly more evenly split

36. Senate Ag Appropriations Subcommittee

37. Senate Agriculture Committee

38. BottomLine: We face a period of significant budgetary challenges where protecting what we’ve fought so hard to create in NIFA will take center stage, and where speaking with a single voice will be more important than ever before if we are to continue to be able to serve our stakeholders.