The 2018 federal U. S. budget received good news on Feb. 9, when an agreement was reached with the House and Senate to avoid a long-term government shutdown. Due to timing of the agreement there was a temporary shutdown, but it occurred overnight with little or no impact.
The Bipartisan Budget Act of 2018 which was signed by President Donald Trump, while good news, is still only a continuing resolution.
RJ Karney, director of congressional relations at the American Farm Bureau Federation (AFBF), explained to WLJ that if Congress doesn’t complete an omnibus bill by March 23 another continuing resolution will be needed to avoid a shutdown.
He also said the Bipartisan Budget Act raised the spending limits on discretionary spending for FY 2018 and FY 2019. “These new caps will allow congressional appropriators to write the omnibus spending bill by March 23,” Karney said.
Allison Cooke, executive director of government affairs at National Cattlemen’s Beef Association (NCBA), told WLJ that NCBA supported the bill especially because it provides critical funding for ranchers and beef producers harmed by natural disasters in 2017. She explained, “Changes to the Livestock Indemnity Program—which are being made retroactive for 2017—will benefit cattlemen and women who suffered severe losses during hurricanes and wildfires.”
Asked how the bill may impact upcoming farm bill talks, Cooke said, “The spending caps for the farm bill are set, but it is far too early to know how the money will be allocated. We will not know about the proposals for specific funding levels until we see draft text of the legislation.”
FY 2019 budget
Adding to the budget confusion, at least for those outside the D.C. Beltway, Trump released his FY 2019 plan on Feb. 12. With the current budget still not completely resolved, lawmakers are already looking ahead to next year.
Similar to Trump’s proposal last year, his 2019 plan also calls for cuts to agricultural programs including conservation programs.
Ethan Lane, executive director of the Public Lands Council and NCBA Federal Lands, was asked about conservation cuts and what it could mean for farmers and ranchers. He told WLJ, “If the cuts were to be implemented, it would absolutely have an impact on ranchers—many of whom use these programs to help ensure they can create the best possible product on the healthiest rangeland.”
He noted that the budget proposal is just the start of the conversation as actual spending levels will be determined by Congress.
As the planning moves ahead, Karney said, “AFBF looks forward to working with our allies from both parties in Congress to protect those programs and services critical to farmers’ and ranchers’ ability to manage the risks inherent in production agriculture.” He added that AFBF will advocate for protecting programs that are vital to small towns and rural communities.
The proposed FY19 budget also calls for cuts to crop insurance programs. Karney said AFBF opposes the proposal because “cuts of this magnitude in the current economic cycle are unwarranted and unwise.”
He went on to say that farmers and ranchers have always been concerned about a high budget deficit and have done more than their fair share over the years to reduce red ink. “The farm bill was the only reauthorization bill that voluntarily offered savings during the 113th Congress,” he said.
Talking about safety net provisions, Karney said, “We need a strong safety net that will ensure U.S. farmers and ranchers have the wherewithal to continue to farm and ranch until market conditions improve. Making these cuts only adds to the financial pressures farmers and ranchers are currently facing and does nothing to improve their ability to farm and ranch.”
Finally, Karney said, “Administration budget proposals may make for good headlines, but in effect are little more than suggestions for congressional action.” He concluded, “Congress writes the budget; not the president.” — Rae Price, WLJ editor
