Ag Policy, Lecture 4 Knutson 6 th Edition, Chapter 2 & 3

1. Ag Policy, Lecture 4Knutson 6th Edition, Chapter 2 & 3 • Policy Process, Theories and Concepts • Policy Process, Specifics

2. The U.S. Policy Process • A lot like making sausage • Why? Many different players • Congress • Special interests • Constituents • Whiners • Academics • Have to understand the process if you want to influence policy • Ex. Information is good to a point 05

3. Critical Policy Questions • What is ? • Facts, observation • What should be? • Value judgments, normative • What can be? • What are politics? • Can it be done? • What will be? • Predictions

4. Economic Theory of Public Choice • Private Choices • Key principles: • All resources are scarce or limited • Assumes rational behavior • Prices signal consumption and production decisions • Public Choices • Key principles: • 1 & 2 above but votes are the market signals of public choice instead of price • Trade-offs (i.e. log rolling, horse trading) on an issue by issue basis

5. Process Issue/Problem Facts Myths Values Policy Decision Government Process Programs

6. Facts • Known with Certainty • Objectively Proven • Rational people tend to agree on facts • But may not agree on the relevance or importance

7. Myths • Agrarian Myths • Economic prosperity depends on agricultural prosperity • Rural community well-being depends on farmer well-being • Land is the source of all wealth • Farm programs are good food programs • Farmers are environmentalists • What do you think? • Can a myth be true? • Myths are popular. What people want to hear. Become part of policy rhetoric. • Do not have to be true to affect policy.

8. Values • Jefferson Agrarianism Values • Agriculture is the basic occupation of mankind • Rural life is morally superior to urban life • A nation of small, independent farmers is the proper basis for a democratic society • Are these true? Can they be proven? Do we still hold these values? • The war on Terrorism? • Torture • Patriot Act

9. Political Spectrum Liberal Conservative (more government) (less government)

10. Influence Triangle Kingmakers Kings Active group Interested group Apathetic group

11. Politics of the Minority • Find allies issue by issue. Not philosophy by philosophy • Build coalitions, compromise, find common ground • Be positive, reasonable, work within system • Base case on facts, not myths or emotions • Adopt non-partisan strategy

12. Where is The Power in Agricultural and Food Policy? • Government • Executive Branch • Legislative Branch • Judicial Branch • Other Organizations • General farm organizations • Commodity organizations • Agribusinesses • Public interest groups • Other departments and agencies Chapter 3 Knutson, Penn, and Flinchbaugh 06

13. Executive Branch President VP CEA Cabinet

14. Cabinet • Vice President • Heads of 15 Executive Departments • Attorney General • Under G.W. Bush also includes • EPA • OMB • National Drug Control Policy • USTR

15. Executive Departments • Agriculture (USDA) • Commerce (DOC) • Defense (DOD) • Education • Energy (DOE) • Health & Human Services (HHS) • Homeland Security • Housing & Urban Development (HUD) • Interior (DOI) • Justice (DOJ) • Labor (DOL) • State (DOS) • Transportation (DOT) • Treasury • Veteran Affairs

16. Agriculture’s Iron Triangle Interest Groups USDA Secretary of Agriculture Legislative Branch

17. Secretary Deputy Farm & Foreign Ag Services Food Safety Marketing & Regulatory Programs FSIS FSA FAS RMA AMS APHIS GIPSA Natural Resources & Environment Rural Development Research, Education & Economics Food, Nutrition & Consumer Services FNS CNPP FS NRCS RBS OCD RHS RUS ARS CSREES ERS Structure of USDA NASS

18. Legislative Branch • “All Legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.” Article I, Section 1 • Membership • House • 435 elected for 2 year terms • Census determines number from each state • Continually seeking re-election • Senate • 100 elected for 6 year terms

19. Functions of Congress • Authorization (legislation/programs) • Appropriation (who gets what?) • Oversight (chastise Executive)

20. Floor of other Chamber Debate <> Amend <> Approval How a Bill Becomes a Law Have to be offered by a member House – bin or hopper, Senate - clerk Constituents Policy Proposals House and/or Senate Congress Executive/Departments Can “table” killing it at once Executive Communication Committee Subcommittee Hearings <> Mark-up Committee Debate <> Approval Senate debate is unlimited may speak at any length on any subject Any senator can stop debate with a Filibuster Floor Debate <> Amend <> Approval Conference Committee Also referred to as the third chamber Conferees work out differences Hammer out differences between House & Senate Majority vote Floor Approval in Both “Enrolled” President Sign <> Veto <> Pocket Veto If signed becomes effective immediately 2/3 vote in both houses can override veto

21. A Simplified Overview of Budget Authorization and Appropriations Process OMB and Exec. Agencies President's Budget (Late Jan.) Congress Budget Resol. (Apr. 15) Budget Floor Committees Recommendations (March 15) Authorizing Committees Authorizing Bills (May 15) Final Budget Through Conference Committee (Oct 1) Appropriations Adopted Budget Committees & Resolution Subcommittees Appropriations Bills Tax Committees

22. Majority is really important • Elects leadership of Congress (control agenda) • Has majority membership of committees and subcommittees • Elects chairs of committees and subcommittees (control agenda) • Has the most staff

23. Interest Groups USDA Congress Interest Groups Key part of iron triangle More often than not, the well organized interest groups are the ones that get the attention of USDA and/or Congress

24. Farm Organizations • General farm/agribusiness organizations • American Farm Bureau Federation • National Farmers Union • Commodity organizations • National Corn Growers • National Cotton Council • Every commodity has one, and some have multiple All other things equal, the more specific the cause/interest, the more effective the group. But all other things are seldom equal!

25. Commodity Organizations • Most effective organizations in agriculture because of focused commodity interests • Most effective are those that represent an entire industry (National Cotton Council [NCC]) • Beef has had conflicts among cattlemen and cattle feeders (NCBA) • If producer organization goes head-to-head with agribusiness, agribusiness normally wins (ex., packers in beef) • Almost always have related state organizations • Party alignment is an interesting issue

26. Public Interest Groups Typically focus on only 1 issue • Environment (Sierra Club, National Resources Defense Council, Environmental Working Group) • Hunger lobby (Bread for the World) • Animal rights (P.E.T.A.) • Consumer lobby (CFA, CW, CU, Center for Science in the Public Interest)

27. Agribusinesses/Trade Associations • Restaurant Associations • Equipment dealers • Chemical Applicators • International Dairy Foods Association

28. Lecture 4, Wrap up • Conceptual Theories of How Policy is formed • Specifics • Structure of Government • How a bill becomes a law • Where is the power and influence • All material Chapters 1 – 3 • Next Class – Trade, International Stage Chapters 4, 5, & 6