2018 White House Budget Proposes Deep Cuts to Agriculture over the Next Decade
On Monday 22nd May, the release of the 2018 White House budget confirmed plans to drastically reduce federal funding and support for the agricultural sector under the Trump administration 1. Savings in the region of $46.54 billion over the next decade are proposed, achieved through deep cuts and reforms to current government led programmes and subsidies related to farming 2.
WHATS BEING CUT?
Crop insurance reform is a key part of this. Current figures state that $16.2 billion can be saved through proposals to limit government shares of crop insurance premiums. The State currently pays an average of 62 cents of each $1 in premiums for crop insurance policies 3. This new budget will deny subsidies in this form to farmers with an income above $500,000 per annum, with those that do qualify limited to $40,000 per year in total 4.
On top of this, plans to eliminate the harvest price option will slash a further $11.9 billion from current spending. It is hoped that this, along with further cutbacks (as mentioned above), will bring about $38 billion in savings from farm supports.
The removal and reduction of several USDA programmes will also limit federal spending and support within the agricultural sector 5. Programmes to be eliminated include:
The Rural Business-Cooperative Service
The McGovern-Dole International Food for Education Programme
The Rural Water and Waste programme
Supplementary documents to the 2018 budget confirm that a lack of perceived efficiency and cost-benefit are the main driving factors behind the majority of these cuts, fuelled by the perception that the private sector can do more to support US agriculture 6.
The 2018 budget opens up a lot of important developmental questions for American agriculture when looking at the future. A key part of this development, in whatever form it takes, will be the necessity to ensure sustainable practices and management strategies are implemented throughout the entire agricultural value chain. This must be holistic sustainability, covering economic, environmental, social, and political variables.
The 2018 White House budget confirmed plans to drastically reduce federal funding and support for the agricultural sector under the Trump administration. ”
In line with this, Challenge Advisory have developed Agriculture 4.0, to be held in San Francisco from 9th-10th October 2017. Along with key stakeholders, namely, the USDA, NIFA, NCFC and NFPA, the summit will tackle key issues that will shape the future of US agriculture, with topics ranging from new technologies to regulatory changes.
The event will bring together a multitude of representatives from government, civil society, co-operatives, farmers, industry bodies, global business and academia, allowing the transfer of knowledge and technology through strategic networking and collaboration opportunities.
This is an opportunity for attendees to be at the front line of development within US agriculture, giving them direct engagement with the most pressing issues facing the sector throughout the entire value chain.
To find out more about the event and reserve your place, please follow the link below.