"The budget that we're releasing today reflects my priorities and the priorities that I believe will help advance security and prosperity in America for many years to come," said Obama.Those priorities include increased research funding, nutrition and renewable energy programs, and cuts to crop insurance. Some of the key provisions of the budget include:
- $700 million for Agriculture and Food Research Initiative (AFRI) grants
- $12 billion over 10 years to expand the Summer Electronic Benefits Transfer for Children (Summer EBT)
- $450 million for the Rural Energy for America Program
- Cut $18 billion over 10 years to crop insurance subsidies and payments
The budget received support from Agriculture Secretary Tom Vilsack and the Union of Concerned Scientists (UCS), but legislators from agriculture states expressed their unwillingness to support the president's cuts to crop insurance. Obama received criticism from Senate and House members and Republicans and Democrats alike.
"The harmful changes to U.S. farm policy contained in the Obama Administration budget come on the heels of attempts by the Administration last year to kill federal crop insurance," said Rep. Michael Conaway (R-TX), the chairman of the House Agriculture Committee.
"While this budget request moves us forward on many fronts, I disagree with the President's suggestion that we make additional cuts to crop insurance," said Sen. Debbie Stabenow (D-MI), the ranking minority member on the Senate Agriculture Committee.
Proposals to cut crop insurance have increased since 2008 but have been largely unsuccessful. The Agricultural Act of 2014 set the most recent funding levels (see left).The crop insurance industry has defended the need for federal subsidies. Farmers pay in advance for insurance protection that manages risk in a timely, efficient system which minimizes taxpayer harm, said a joint statement by the industry.
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| Sen. Roberts and Rep. Conaway |
Sen. Pat Roberts (R-KS), chairman of the Senate Agriculture Committee, said these cuts come after the USDA estimated a 56 percent decline in farm income over the past three years. Roberts called the budget "dead on arrival."
Vilsack defended the budget cuts, stating he believes the government and farmers should share the cost of crop insurance premiums 50/50 and the majority of Americans support the President's position.
For a complete discussion of the budget by Vilsack, follow this link.
The budget's other provisions received more support. The Summer EBT program will provide summer food benefits to families who qualify for free or reduced school meals to ensure children have access to healthy food options year-round.
The biggest change in Obama's last budget was a significant increase in research funding. The proposal doubles discretionary spending for AFRI grants, which look for innovative solutions to farm challenges such as climate change, pollinator health, bacteria, and bioenergy.
After nearly 350 researchers from agriculture universities and other institutions asked for increased USDA support, the UCS said it is thrilled with the President's decision to prioritize research.
"President Obama's budget shows he has his eye on the right priorities," said Ricardo Salvador, director of UCS's Food and Environment program.
Budget Process Overview
The President proposes a budget each spring for Congressional review. Members of the budget and appropriations committees submit final limits in the annual spending bills, which are voted on by Congress and signed into law by the President. In the past, Congress has not supported the President's attempts to cut crop insurance, and FY2017 is unlikely to differ.
Industry leaders, government agencies, and researchers will have to wait for the final spending bills to celebrate or denounce the budget. You can share your opinion by contacting your state delegation.
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