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Mary Sobba Agriculture Business Specialist

USDA Programs. Mary Sobba Agriculture Business Specialist. Allocation of U.S. Budget Outlays by Function, FY 2001. Human Resources includes: health, medicare, social security, etc. Physical Resources includes: transportation, community and regional development, etc.

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Mary Sobba Agriculture Business Specialist

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  1. USDA Programs Mary SobbaAgriculture Business Specialist

  2. Allocation of U.S. Budget Outlays by Function, FY 2001 Human Resources includes: health, medicare, social security, etc. Physical Resources includes: transportation, community and regional development, etc. Source: Budget of the U.S. Government www.whitehouse.gov/omb/budget/fy2003/pdf/hist.pdf

  3. Share of Mandatory Program Spending by Farm Bill Title Budget Authority, FY 2002-2011. $782 Billion Total Does not include funding for discretionary programs which is provided through annual appropriations. Based on CBO’s March 2002 Baseline.

  4. Nominated - U.S. Sec. of Ag Dec. 2, 2004 Gov. Mike Johanns, Nebraska Awaiting Senate Confirmation

  5. Gov. Mike Johanns • Son of Iowa Dairy Farmers • H.S. in Iowa, college St. Mary’s – Winona, MN and law school Creighton Univ. NE • Private law practice until 1982, then started public career with Lancaster County Board of Commissioners

  6. Gov. Mike Johanns • 1989 Lincoln, NE City Council • 1991 Lincoln, NE Mayor, reelected 1995 • 1999 – Elected Gov. of NE • 2002 – Reelected Gov. of NE

  7. Gov. Mike Johanns • Has led five delegations of Nebraska government, business, and agriculture leaders on trade missions to eight countries including Japan, Taiwan, China, Hong Kong, Australia, Korea, Singapore, Malaysia, Brazil, and Chile. He has also been a strong advocate for Nebraska agriculture producers during a period of depressed commodity prices and severe drought

  8. Gov. Mike Johanns • Mike Johanns has two children and is married to Stephanie Johanns, a former Lancaster County Commissioner and former State Senator. Stephanie Johanns is currently Vice President of External Relations for Nebraska, Kansas and Missouri, for ALLTEL, a communications company

  9. County USDA Offices Farm Service Agency (FSA) – works with the commodity programs – Soybeans, Corn, Wheat and more Natural Resource Conservation Center (NRCS) – works more with programs dealing with land and environment

  10. Farm Service Agency (FSA) Deals with the Farm Bill program, as it is commonly called. Programs to deal with dairy, honey, peanuts, wool and mohair, cotton and rice and much more

  11. Nationally - FSA Loan Deficiency Program is just one program and the impact it has federally is…………

  12. Farm Service Agency (FSA) Audrain County predominantly uses the programs that work with commodities (soybeans, wheat, corn, grain sorghum) – LDP, DP, CCP and Marketing Loans. How much?

  13. Farm Security and Rural Investment Act of 2002

  14. Three-Legged Stool • Marketing loans or LDP • Direct (fixed) payments • Counter-cyclical payments

  15. Leg #1: Marketing Loan Program/LDP’s • Mechanics are similar to previous farm bill • Changes • Loan Rates fixed for 2002-03, decrease for most commodities for 2004-07 • National average loan rates “locked in”

  16. Current LDP rates in Audrain

  17. LDP Rates – 12-6-04 • Soybeans – None (listed sometimes as -$0.03) • Corn - $0.23 / bu. • Barley - $0.29 / bu. • Oats – None (may be listed as -$0.18) • Grain Sorghum - $0.68 / bu.

  18. Leg # 2 – Direct (Fixed) Payments • Direct Payments (DP) now do not confuse this DP with the acronym used by elevators which DP= delayed payment Direct Payments are fixed payments and do not vary with production or price

  19. FSA Programs – Direct Payments • Primary income support feature of 1996 Farm Bill • Payments include commodities covered under 1996 Production Flexibility Contract (PFC) plus oilseeds

  20. Leg #3: Counter-Cyclical Payments • Nearly identical to target price/deficiency payment system in farm programs prior to 1996 • CCP are decoupled from production, but not from price

  21. Leg #3: CCP ……..…continued • CCP make up the difference between the target price minus the direct payment and the higher of the loan rate or market price • Target prices fixed for 2002-2003, rise for most commodities for 2004-2007 • Payments include commodities covered under 1996 Production Flexibility Contract (PFC) plusoilseeds

  22. Three-Legged StoolSummary • The three legs of the stool sum together to support income based on the “target price”

  23. Not Tied To Prod Structure of Paymentsfor Corn, Sorghum, Barley, Oats, Wheat, Cotton, Rice, Soybean, Sunflowers, Canola, Peanuts Target Price Direct Payment Counter-Cyclical Payment Loan Rate Loan Deficiency Payment Prod Req.

  24. Natural Resource Conservation Service - NRCS • Work with programs that are environmentally friendly - help prevent erosion and improve water drainage • Example EQIP – Environmental Quality Incentives Program

  25. Natural Resource Conservation Service - NRCS • WHIP – Wildlife Habitat Incentives Program • WRP – Wetlands Reserve Program • CRP – Conservation Reserve Program

  26. State Funded • Within the NRCS office is the Audrain Soil and Water Conservation District (SWCD) • SWCD oversees the State Cost share program to distribute funds. Audrain County – mostly terracing, waterways, lagoon structures • More requests than funds. On these projects the landowner pays a percentage and state cost share funds pay a percentage of project costs. • Funded through the state Soils & Parks Tax

  27. Questions? Mary Sobba(573) 581-3231sobbam@missouri.edu

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