By Andi Anderson
Agriculture Secretary Tom Vilsack has expressed concerns over attempts in Congress to reduce the USDA's budget. He anticipates that Congress may need to extend the current farm bill or risk severe consequences for farmers.
Secretary Vilsack and USDA Rural Development staff convened an event in Lime Springs, Iowa, to highlight an $8.8 million grant benefiting the expansion plans of Upper Iowa Beef, a local 400-head-a-day packing plant.
In addition to discussing farm income and support for small and medium-sized farmers, Vilsack engaged with community leaders who rely on USDA Rural Development funding for various essential services, including wastewater treatment, rural electricity, broadband access, housing, community infrastructure, loans for small businesses, and child care in rural areas.
The fate of many USDA programs hangs in the balance due to delays in passing the fiscal year 2024 USDA appropriations bill, which failed to gain approval in late September.
Vilsack, addressing residents at the Lime Springs community center, expressed his concern about the proposed budget cuts. He questioned how long it would take for a new House Speaker to provide direction and resolve the budgetary impasse.
The ongoing short-term funding extension, which keeps the government operational until November 17, is a significant concern. Vilsack highlighted the need for Congress to consider an extension of farm bill programs. Failure to address the farm bill by December 31 could lead to complications.
Without a farm bill extension, farm policy would revert to "permanent law" dating back to 1938 and 1949. In the dairy market, this could trigger the "dairy cliff," resulting in soaring government milk prices and substantial costs to taxpayers.
Vilsack stressed that Congress would need to pass an extension of the existing bill or a new farm bill to avoid this scenario.
One of the key issues hindering a new farm bill relates to reference prices for Agricultural Risk Coverage and Price Loss Coverage programs. Raising these reference prices would require substantial funding.
To address this dilemma, Vilsack proposed exploring creative use of the Commodity Credit Corporation (CCC), which already funds several programs. However, legislation in the House appropriations bill aims to restrict the use of CCC funds for emergencies.
Vilsack also emphasized the need to protect $19.5 billion allocated in the Inflation Reduction Act for USDA conservation programs focused on carbon sequestration and greenhouse gas reduction.
The secretary stressed the importance of rural economic development initiatives and preserving the farm bill's provisions and flexibility for the Commodity Credit Corporation to support farmers.
Secretary Vilsack called for a farm bill extension and advocated against budget cuts that could have adverse effects on vital USDA programs and farmers across the country.
Photo Credit: gettyimages-lishanskyphotography
Categories: Iowa, Government & Policy