You%20Make%20the%20Call:%20To%20Subsidize%20or%20Not?%20%20U.S.%20Farm%20Policy:%202007%20Farm%20Bill%20Debate

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You Make the Call To Subsidize or Not? U.S.
Farm Policy 2007 Farm Bill Debate

• Dr. Mark A. Edelman, Director
• Community Vitality Center
• Professor of Economics and Extension Economist
• Iowa State University
• Leadership Iowa Farm Bill Panel
• December 6, 2007

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How Public Policy Problems are Different

• Key Differences
• Group Rather than Individual Decisions
• People Have Different Circumstances
• People Hold Different Values on What Should Be
• People Differ in Goals and Objectives
• Conflicting Views on What Ought to be Done

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Advocate vs Educator

• An Advocate believes they have the best solution
  to a problem, tries to convince others, and
  encourages others to support their cause in the
  political process.
• An Educator enhances learning and understanding,
  assists others in making their own decisions, and
  facilitates participation in the process

4
Science Cant Always Solve Problems

• Science solves problems when
• Single objective and relatively few goals
• Objective is clearly revealed and measurable
• Everyone in group agrees with objective goals
• Public Policy Issues have
• Multiple objectives and goals
• Objectives that are unknown or not revealed
• Differing value judgments on what should be done
• Science is only a decision tool

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Role of Public Policy Educators in a Democracy

• Present Facts
• (evidence of what exists)
• Destroy Myths
• (incorrect notions that people believe are facts)
• Allow citizens leaders to apply their own
  values
• Facilitate understanding of areas of agreement
  differences
• Facilitate participation in process

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Edelmans Top 10

1. Farm Bills are temporary extensions of 1940s era
   permanent farm law
2. Farm Bills are the way they are because they are
   written by the Ag Committees

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Who Sits on the Ag Committees?

• Senate Members - 21
• North Central - 11
• IA, ND, MI, NE, OH, MN
• IN, KS, MN, SD, IA
• South - 5
• AR, GA, MS, KY, SC
• Northeast - 2
• VT, PA
• West - 3
• MT,CO, ID

• House Members - 46
• North Central - 18
• MN, IA, SD, IN, KS, OH, MN, WI, ND, IN
• KS, IL, MO, IA, NE, OH, NE, MI
• South - 19
• NC, NC, GA, GA, TX, TN, GA, TX, FL
• VA, AL, OK, NC, AL, AL, TX, LA, NC, TX
• Northeast - 3
• PA, NY, NY
• West - 6
• CA, CA, CA, CO
• CO, CA

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Edelmans Top 10

• 3. The Farm Bill coalition has changed over time
  
• Farm Bloc in 1930s
• Food programs added in 60s
• Environment Rural Development in 70s
• 4. About 75 of Farm Bill spending is food
  programs

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Edelmans Top 10

• 5. Farm Bill spending has increased as farm
  numbers have declined.
• Some suggest less farmers less clout
• Others fewer farmers easier to organize
• 6. Market oriented system with a safety net and
  increasing incentives for multifunctional
  objectives
• Environment water quality
• Renewable Energy

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Edelmans Top 10

• 7. U.S. Food Ag System is one of few remaining
  industries where dispersed family operations sell
  into a much more concentrated processing and
  distribution system that also relies on
  international markets where significant
  protectionism has existed since prior to WWII.
• 8. Iowa relies more on Ags contribution to the
  states economy than almost all other states
  except perhaps the Dakotas
• 25 of Iowa GDP

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Edelmans Top 10

• U.S. Farm Safety Net provides 2 billion
  injection into Iowas economy when times are bad.
  
• No other state benefits more 4-5 of GDP
• So question is What to do with Budget Baseline if
  it does not go to Farm Supports?
• If 2 doesnt come to Iowa, where will it go?
• Do we elect Iowa Delegation to keep score?
• Maybe the Iowa debate is not whether or not there
  ought to be farm subsidies, but what form should
  the safety net be to achieve multiple farm and
  nonfarm objectives.
• Start with Farmer Preferences

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Knowing Farm Bill Processes

• Troika (3 horse hitch)
• Interest Groups (Ag, Environment, Food, Rural
  Dev)
• Executive Agencies
• Congressional Committees
• Legislative Process
• Leadership Control (Majority Rules)
• Content Control (Authorization and Oversight)
• Budget Control (Appropriations)
• Best Practices for Communication Building
  Relationships

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The Farm Bill Legislative Process

• Administration Hearings and Proposals
• Ag Ag Approps Committee Assignments
  (Leadership)
• Budget Targets and Appropriations (Budget)
• House Senate Ag Committees (Authorization)
• Subcommittee Hearings Proposals
• Markup to Committee Proposal
• Floor Debate
• Passage by Both Houses
• Conference Committee to Iron out Differences
• Concurrence by Both Houses
• Presidential Signature or Veto

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Funds Available

• Senate Target
• Tax Revenues for increasing targets Baseline
• Revenue Insurance Pilot versus Disaster
  Assistance
• Number of Amendments
• House Target
• 15 billion over 5 years above Baseline

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CVC Web Site www.cvcia.org

• 2007 Farm Bill Issues and Resources
• Iowa Farmer Preferences on 2007 Farm Bill Issues
  (PDF file)
• The 2007 Farm Bill U.S. Producer Preferences,
  2006
• USDA 2007 Farm Bill Page
• Senate Committee on Agriculture, Nutrition and
  Forestry
• House Agriculture Committee
• Policy Centers specializing in Farm Bill Issues
  Analysis
• CARD (Iowa State University)
• Agriculture and Food Policy Center (Texas AM)
• Agricultural Policy Analysis Center (University
  of Tennessee)
• Food and Agricultural Policy Research Institute
  (Missouri)
• Rural Policy Research Institute (Missouri)
• Farm Foundation (Chicago)
• Extension Public Policy Education Principles
• Public Policy Education by Richard Barrows (PDF
  file)