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ASA Urges Congress to Take Comprehensive Approach to Deficit Reduction, Raises Concern About Disproportional Budget Cuts to Agriculture

Mar 10, 2011

The American Soybean Association (ASA) has reached out to the Chairman and Ranking Members of the House and Senate Appropriations Committees urging them to adopt a comprehensive plan for reducing deficits, and has raised concerns about disproportionate and devastating cuts to key agriculture-related programs and operating budgets for U.S. Department of Agriculture (USDA) agencies in HR 1, a new Continuing Resolution for FY-2011.

"The American Soybean Association and our soybean farmer members understand the need to address deficit spending," said ASA Chairman Rob Joslin, a soybean producer from Sidney, Ohio. "We are concerned, however, by the prospect that Congress may make disproportionate and devastating cuts to key agriculture-related programs in a new Continuing Resolution for FY-2011. The proposed reduction of $5.2 billion for these programs and budgets in HR 1 represents 22.4 percent of current-year spending, more than twice the 9.2 percent cut proposed for overall domestic discretionary spending."

ASA is urging Congress to take into account that domestic discretionary spending represents only 12 percent of federal spending, and should not be targeted for large cuts that will have no meaningful impact on reducing federal deficits and the growth of the national debt. ASA is asking that substantive cuts in domestic discretionary spending be considered only as part of a comprehensive deficit and debt reduction plan in the FY-2012 budget that encompasses all entitlement as well as all discretionary programs.

"ASA is concerned that several of the programs targeted for cuts by HR 1 are particularly important for maintaining U.S. competitiveness and ensuring global food security," Joslin said. "We strongly object to the proposed reduction in funding for agriculture research, including 16.8 percent for the National Institute for Food and Agriculture (NIFA) and 14.8 percent for the Agricultural Research Service (ARS). Research is the foundation of U.S. agriculture’s international competitiveness and of efforts to keep pace with world demand for food, feed, and fiber.

"And the cuts proposed to international food assistance programs, including 40.7 percent in Food for Peace and 52.3 percent in the McGovern-Dole Food for Education Program, would effectively shut down food aid to developing countries at a time of rising commodity and food prices when they can least afford it."

ASA, along with the National Corn Growers Association, the National Association of Wheat Growers, and the National Sorghum Growers, issued a statement on March 5, calling for action to reduce federal deficits and the national debt. The statement expressed the view that "any meaningful approach to deficit and debt reduction in the FY-2012 budget must encompass all entitlement programs and all discretionary spending."

It also noted that "agriculture made a down payment in cutting spending when the Department of Agriculture directed $4 billion in savings under the Standard Reinsurance Agreement for federal crop insurance toward deficit reduction. We believe any further reduction in discretionary spending should recognize and reflect this contribution."

"ASA is urging the Congress to reject disproportionate cuts in agriculture-related programs and budgets, and work to develop a comprehensive approach to deficit and debt reduction in the FY-2012 budget that includes all entitlement and discretionary spending," Joslin added.