COUNTY OFFICIALS should focus on their overall goals when revising wind development ordinances, two experts advise. ............2
THE ETHANOL INDUSTRY continues to fight for policy support amid high corn prices and legislative resistance. ......................4
THE PORK sector faces mounting public and regulatory pressures, the Illinois Pork Producers Association’s new president warns. ..................5
Monday, February 21, 2011
Two sections Volume 39, No. 8
Could president’s plan lead to farm bill reopening? Proposed budget targets direct payments BY MARTIN ROSS FarmWeek
Faced with a dual White House/congressional threat of major ag budget cuts, producers last week feared potential “reopening” of the current farm bill before Congress can develop solid program spending priorities for the next one. President Obama’s fiscal 2012 USDA budget seeks $4 billion in cuts in discretionary spending over last year’s fiscal 2011 request. Total USDA outlays would be reduced by $7 billion to help bring down the budget deficit, Ag Secretary Tom Vilsack reported. Obama proposes eliminating farm payments to producers with higher adjusted gross incomes (AGI). After a proposed three-year phase-in period, payments would be made only to those with less than $500,000 in AGI from agriculture or less than $250,000 off-farm AGI. Obama’s plan reportedly would save $2.6 billion over 10 years and affect 30,000 current payment recipients. USDA’s new 2011 farm income forecasts show “overall income growth,” but “it’s not necessarily distributed among all sizes of operations,” said Vilsack, who defend-
ed targeting the payments. The USDA budget also seeks a cut in maximum annual perfarm direct payments, from $80,000 to $60,000, and reduced premium assistance to crop insurers who sell catastrophic “CAT” coverage. CAT cuts, a follow-up to $6 billion in 2010 cuts, aims to save an added $1.8 billion over 10-years. Vilsack also cited proposed cuts in so-called research and conservation “earmarks,” such as watershed flood protectionrehabilitation, wildlife, and grasslands programs. American Farm Bureau Federation analyst Tara Smith finds “nothing unusual on that front,” given the president’s push for potentially “painful” cuts. “Presidential budgets get filed away pretty quickly,” said Smith, who saw Congress’ debate over the current budget continuing resolution (CR) drawing attention even more rapidly away from Obama’s plan. However, House Republicans proposed even more aggressive CR cuts, including what Smith termed an estimated 22 percent “hit” in discretionary ag funds and conserva-
reopening of the 2008 farm bill. She stressed “we don’t write farm policy for one year,” arguing the current crop price situation that’s spurred sentiments toward payment cuts eventually could sour. “I don’t suspect there’s going to be a lot of desire within the ag committees
either on the House side or the Senate side to open up the farm bill any earlier than we have to,” Smith said. “The 2008 farm bill was a commitment to farmers and ranchers and the nutrition community and the conservaSee President, page 4
PORK EXPO INFO
Art Kuhn, left, a pork producer from DeKalb County, and his son, Hayden, center, a senior at GenoaKingston High School, view corn samples and discuss the importance of feed particle size for improved digestibility in livestock with Lee Drewelow at the Illinois Pork Expo in Peoria. Drewelow was promoting IFA roller-grinder systems at the expo. More from the Pork Expo appears on page 5. (Photo by Ken Kashian)
Quinn seeks more cuts, borrowing to pay bills BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
tion program cuts for the remainder of fiscal 2011. That was versus an average 10 percent cut in other non-defense areas, and she argued ag has been asked to shoulder “more than our fair share.” Further, Smith told FarmWeek near-term cuts could force a “short-sighted”
Illinois must tighten its belt and address billions in overdue bills that will remain despite an income tax increase, Gov. Pat Quinn said last week. Quinn warned lawmakers they must make difficult choices when he unveiled his $52.7 billion budget Gov. Pat Quinn for fiscal year 2012 that starts July 1. The governor’s proposal includes borrowing to pay $8.75
billion in overdue bills. “We need to keep investing in essential, necessary services while cutting programs that don’t work,” Quinn told legislators gathered in the House. Illinois Farm Bureau President Philip Nelson pointed out Quinn’s proposed budget “reflects the serious challenges that the state’s fiscal situation continues to present.” “There is, unfortunately, no escaping the reality that cuts need to be made, and that will cause a lot of pain. That pain needs to be shared by everyone,” Nelson said. Quinn’s staff emphasized his proposed budget included no
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new programs but is larger than previous budgets because it included $1.7 billion in higher pension costs and other expenses. A larger budget is necessary “because we’re fixing the system ... We have to include everything in the budget,” Jack Lavin, Quinn’s chief of staff, told reporters during a briefing. State Budget Director David Vaught estimated the state may face a $9 billion to $10 billion deficit if no cuts are made or borrowing is not approved. Lavin and Vaught claimed the budget included accountability measures and goals for agencies. They also conceded some programs are more easily
measured by accountability yardsticks than others. “Continued fiscal reform and changes need to occur,” IFB’s Nelson said. “The state needs to get back on the right track for the future and once again make it a desirable place to live and work.” Illinois is paying the price for delaying payments to service providers. Lavin estimated the state is paying as much as $700 million more each year because vendors are charging more to offset the long delay in state reimbursements and contractors have withdrawn See Quinn, page 3
Illinois Farm Bureau®on the web: www.ilfb.org