Ag Policy Update–27 Mar 03       

 

1.      The Iraqi War is dominating the news.  Any early indications of how this is affecting the ag sector?  

–The economy continues to react mostly negative.

–Congressional actions are being affected that could reduce support for ag programs.

–The trade picture is unsettled at this time.

–Anti-war rallies in many countries suggests that political instability could increase, and that could affect some of our markets.

 

 

2.      You mentioned the economy.  Any signs of improvement?  

–This week’s reports indicated that growth in the final quarter of 2002 slowed to 1.4%, suggesting stagnation, and many analysts think the first quarter of 2003 that ends this week will be worse.

–unemployment benefit claims fell last week, but remain relatively high.

–Oil prices have come down after peaking last week, but it is uncertain where they will head next.

–The Stock Market doesn’t seem to be indicating support for the war.

 

 

3.      What about how Congress is responding to the war?  

–They remain generally supportive.

–They supported the first supplemental request from Bush that includes $65 billion for the war effort, $5 billion to spread among many of those countries who say they are part of the “coalition of the willing”, and the rest is for homeland security.

–The Senate Democrats with a few moderate Republicans managed to gain approval of a budget resolution to slash the President’s request for over $700 billion in tax cuts, reducing it to about $350 billion. 

–This may allow some reconsideration of over $18 billion in ag program spending cuts approved in a House budget resolution.

 

 

4.      Speaking of Congress, Senator Grassley’s bill to have lower payment limitations for ag programs seems to be gaining bipartisan support.  What can you tell us?  

–Grassley proposed a $275,000 limit ($40,000 direct, $60,000 on ccp’s, $175,000 on combined ldp/mlg’s; $175,000 on generic certs).

–Democrats Daschle (SD), Johnson (SD) & Dorgan (ND), &  Republican Hagel (NB) support the proposal.

 

5.      Remind us again of some important pending deadlines:  

–3 Apr: extended final date for public comment on CSP (originally 20 Mar)

–April 1: final date to select base and yield options in commodity support programs

–Mar 31: deadline to request LDP or loan for wool & mohair

–Mar 31: deadline for peanut producers to designate base/yield to farm/farms

–June 2: complete signup for direct and counter-cyclical commodity support programs  

–The Livestock Compensation Program Disaster Assistance opens for signup 1 Apr. All 77 OK counties are eligible.

6.      Other ag-policy-related news:  

a.      A bipartisan group of Senators and Reps in Congress are seeking an end to the Cuban embargo, seeing it as both good for US ag & other business, as well as promoting democratic and free market principles in Cuba.  

b.      USDA has announced grants to 40 state agencies and tribal organizations for the Senior Farmers’ Market Nutrition Program.

While Oklahoma is not included, the Osage Tribe did receive $22,720.

c.       Food Stamp Program benefits for newly qualified legal immigrants become effective 1 Apr.

Check with the Food and Nutrition Service, USDA, for details.

7.     Congress:

a.     Recent activity:

–Congress continues work on the FY04 budget; budget resolutions approved to set framework for later decisions

–Senate Ag Committee hearing on nomination of Vernon Parker as USDA Assistant Secretary of Civil Rights; recommended approval of nomination (20 Mar)

–Senate Ag Committee reviews child nutrition programs cancelled 26 Mar; reschedule tba.

–House Ag Appropriations Subcommittee reviewed 2004 budget for food, nutrition and consumer services programs (20 Mar)

–House Ag Committee reviewed artificial trade barriers to US ag trade (26 Mar)  

b.     Current/upcoming:  

c.     2003 schedule:

–to be announced  

d.     Key issues not completed

–work on the fy04 budget

–Healthcare reform

–Prescription drug benefits

–Merger activities, especially in agriculture

–Response to economic slump

–Comprehensive energy legislation (& status of renewable fuel standards)

–Restoration of full CSP funding

  

| Wrap-Up Home |