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NCGA Gives President's FY 2005 Budget Mixed Review (2-3-04)

While the National Corn Growers Association (NCGA) is pleased that President George W. Bush's fiscal year (FY) 2005 budget request does not propose to cut farm program spending, the association expresses concern over limited funding for conservation and rural development programs.

Many conservation and rural development programs would be funded below the levels authorized by the 2002 farm bill. The president's budget proposes $82 billion in total spending for the U.S. Department of Agriculture (USDA), an increase of $4 billion, or approximately 5 percent, compared to FY 2004 levels. Bush's budget also calls for funding increases for bioterrorism defense and BSE-related programs, two initiatives of concern to farmers nationwide.

But the growth is primarily in mandatory spending programs, like food stamps and school lunches. More than 70 percent of the 2005 USDA budget, or nearly $61 billion, will be dedicated to these mandatory programs. Bush is proposing to limit spending increases to less than 1 percent across the board to address the growing budget deficit, now estimated at $521 billion.

"To make this budget plan a reality, nearly every program will feel the squeeze," said Betsy Croker, NCGA's director of public policy. "But the budget's failure to recognize Congress' clear intent for conservation and rural development spending is a serious concern."

One of the bright spots in the budget is the allotment of $6.6 billion to USDA's international programs. The FY 2005 budget continues a strong commitment to export promotion and foreign market development. Initiatives for market development, market access and cooperator programs are maintained at current-year levels. U.S. farmers may also benefit from a 50 percent funding increase for the McGovern-Dole International Food for Education and Child Nutrition Program, a global food aid initiative.

USDA Secretary Ann Veneman said the president's budget focuses funds on key priorities for the agency, the first of which is, "Ensuring a safe and wholesome food supply and safeguarding America's homeland and continued administration of the 2002 Farm Bill, the major provisions of which we have implemented in the past year. This includes providing historic increases for conservation funding and protecting natural resources."

Other top initiatives include funding for a food and nutrition safety net, expanding agricultural trade, expanding housing for rural citizens, strengthening forest health and firefighting capabilities and improving USDA's program delivery and customer service.

 

Last reviewed February 3, 2004

 



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