Vilsack On Budget

Vilsack On Budget. I’m Greg Martin with today’s Line On Agriculture.

President Obama released the proposed FY 2012 Budget and of course now it is being torn apart to see what and how it will effect you and I. Ag Secretary Tom Vilsack talked with reporters yesterday to provide an overview of the USDA’s budget from the ag perspective and he began by noting that there are definitely some challenges to deal with.

VILSACK: In fact there are several different challenges or realities that the USDA budget has to face in this year. I think it’s no surprise that folks at USDA and across the country have become very concerned about the deficits and the President has instructed us to take a very close look at our budget t find ways in which we can provide opportunities for reducing the deficit. USDA stepped up to the plate last year and stepped up to the plate this year as well 

He says that when you talk about reducing a budget you have difficult and tough choices.

VILSACK: Another reality is that the ag economy across the board is relatively strong, there’s strong demand. Prices are good for many commodities. We’ve seen a record amount of ag exports in the last year and expansion of value added opportunities. We obviously need to continue that momentum so the budget has to reflect resources directed in that area. Unfortunately not every operation in agriculture and not every segment of agriculture is experiencing good times.

One of those challenges is of course feed costs for the livestock industry.

VILSACK: Our specialty crop producers are obviously challenged as well and certainly the size of the operations matters. When we look at the inter-mediate sized or medium sized operations in the recent farm income projections we note that they are still very much in need of assistance and help and particularly off farm income. And so it’s necessary for us to have a strong safety net.

VIlsack does add that we are in a recovering economy.

VILSACK: One of the great challenges in rural America is how we continue to promote job growth. That obviously has to be a top priority as this economy continues to recover and so that means we have to focus our resources in the most effective way we can to promote rural development and economic development in rural America. Because we are in a recovering economy there are still families and people who are in need so part of our budget has to reflect that reality.

He says they are proposing some targeted reductions in farm program payments which would save $2.5 billion over 10 years, while only affecting 2 percent of participants and we’ll look more at that tomorrow.

That’s today’s Line On Agriculture. I’m Greg Martin on the Ag Information Network.