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« RETURN TO 2008 BUDGET ANALYSIS OVERVIEW

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Agriculture
The budget for USDA programs takes on additional significance this year because funding levels will influence this year’s Farm Bill reauthorized levels. The Administration has proposed $89 billion for agriculture programs, a roughly 5 percent drop from 2006 outlays. Much of the savings would come from reduced pay-outs for commodity crops, since the high prices for the crops mean fewer government subsidies. Many in Congress, including Senate Agriculture Chairman Tom Harkin (D-IA), believe those savings should be invested instead in conservation, rural development, and renewable energy. They are particularly concerned about the lower budget figure since it forms a spending baseline for the upcoming Farm Bill debate.

Among the conservation programs, the Wetlands Reserve Program is slated for a major boost in funding. The large EQIP program would remain essentially unchanged from expected FY07 levels with a cut of $17 million to $1 billion. But several smaller conservation programs, including the Grasslands Reserve Program and the Wildlife Habitat Program, are zeroed out. Under the Administration’s Farm Bill proposal these programs would be folded into EQIP.

The budget proposes $15 million for renewable energy grants and $19 million for renewable energy loans. The proposal represents a shift from grants toward loans. House Agriculture Appropriations Subcommittee Chair Rosa DeLauro (D-CT) has expressed concerns about the energy provisions of the proposal.

Watershed Planning
FY08 Budget: 6 million
FY07 Expected (H.J. Res 20): 6 million
FY06 Enacted: 0

Flood Prevention
FY08 Budget: 74 million
FY07 Expected (H.J. Res 20): 40 million
FY06 Enacted: 0

Environmental Quality Incentives Program (EQIP)
FY08 Budget: 992 million
FY07 Expected (H.J. Res 20): 1.017 billion
FY06 Enacted: 1 billion

Wetlands Reserve Program
FY08 Budget: 191 million
FY07 Expected (H.J. Res 20): 264 million
FY06 Enacted: 455 million

Conservation Security Program
FY08 Budget: 257 million
FY07 Expected (H.J. Res 20): 259 million
FY06 Enacted: 316 million

Forest Service – Land Management Planning
FY08 Budget: 58 million
FY07 Expected (H.J. Res 20): 58 million
FY06 Enacted: 53 million

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