02/09/05 Next year`s budget, Part one

When President Bush announced his proposed Fiscal Year 2006 budget, many were, well, surprised by the significance of across the board reductions proposed. In some ways, the surprise came even as analysts and media were reporting that next year's federal budget, as proposed by the President would include more monies for defense and homeland security spending, and reductions in other areas. And the sweeping budget proposal means some areas of both praises and concern from those involved in many aspects of the Northwest, whether it be in agriculture, energy, environmental, or economical. So where to begin? Let's start with one area that if reports are true, will be right in the middle of the budget debate in Congress & agriculture. U.S.D.A. is expected to receive a $200 million budget increase over fiscal year 2005. Now that is contrary to several media reports that ag is facing significant budget cuts. According to U.S.D.A. Secretary Mike Johanns, the increase in the overall budget comes from an increase in spending in mandatory programs such as the school lunch and food stamp programs. JOHANNS: The budget includes resources to fully fund estimated food stamp participation. The estimated 2006 participation level is the highest ever. But the shouting on the ag budget comes as the President has proposed major reductions in discretionary spending, specifically in the area of Farm Bill crop payment programs. JOHANNS: The proposal to reform farm support programs accounts for savings of $587 million. Now over a ten year period these reforms are expected to save about $5.7 billion dollars. And that has already resulted in declarations of Congressional fights over the farm budget, even from members of the President's own political party. To ag state senators like Senate Ag Chair Saxby Chambliss of Georgia, this means a reopening of the 2002 Farm Bill in the middle of the current program, which could have tremendous affects to producers. Several commodity and farm groups also say they take serious issue with the President's budget. Expressing their views is Mark Maslen of the American Farm Bureau Federation. MASLEN: We are opposed to reducing payment limits. Our delegates have spoken pretty clearly on that. In addition, the commission that studied this as a result of the 2002 Farm Bill recommended that payment limits not be changed again outside of a larger discussion on farm policy. More in our next program.