HOUSE COMMITTEE APPROVES AG FUNDING BILL

The House Appropriations Committee this week approved an FY03 funding bill for USDA operations and agricultural programs. The measure provides a spending total of $74.3 billion with $17.4 in discretionary spending which is a slight increase from the FY02 spending level of $16.5 billion and close to the president's request of $17.4 billion for FY03.

There was speculation that amendments would be offered that would alter the new farm bill programs, but no major efforts were successful. Ranking member Marcy Kaptur (D-Ohio) offered, then withdrew, an amendment regarding payment limitations.

The committee rejected an amendment offered by Rep. Maurice Hinchey (D-N.Y.) that would provide crop disaster assistance for specialty crops such including, apples, cherries, almonds and labrusca grapes. Following are highlights of the bill:

       *  Agricultural credit programs are decreased by $89 million below last year. Total loan authorization level is $3.802 billion, which is the same as the president's request.

       *  Rural Housing total loan authorization level is $4.551 billion, which is $66 million above last year, and which is $627 million above the president's request.

       *  Farm Labor Housing is funded at $38 million, which is $7 million above last year, and which is $3 million above the President's request.

       *  Agricultural Research Service is funded at $1.1 billion, a decrease of $114 million below last year, and an increase of $109 million above the president's request. Funding is provided to continue construction of a major facility consolidation and modernization project to meet high national priority animal health programs.

       *  Risk Management Agency/Federal Crop Insurance Corporation: RMA is funded at $70.7 million, a decrease of $4 million below last year.

       *  Conservation Operations activities are increased by $64.6 million, bringing FY03 funding to $843.6 million.

       *  Food Safety and Inspection Service is increased by $40.2 million  for a total of $755.8 million.

       *  Animal and Plant Health Inspection Service activities are funded at $115.4 million above last year for a total of $740 million.

       *  Watershed and Flood Prevention Operations is funded at $110 million, which is an increase of $3.4 million above the FY 2002 funding level.

       *  Food and Drug Administration is funded at $1.385 billion, which is $16 million above last year.

       *  Child Nutrition Programs are funded at $10.576 billion, which is $489 million above last year.

       *  Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is funded at $4.776 billion, an increase of $428 million above last year and an increase of $25 million above the president's request. The recommendation includes a $150 million reserve should program costs or participation exceed estimates, as well as $25 million for the farmers' market nutrition program.

       *  Food Stamp Program is funded at $26.3 billion, an increase of $3.322 billion.

       *  Food for Peace Program (PL 480) Title II is funded at a program level of $1.2 billion, which is an increase of $350 million above last year. 

SENATE PANEL SETS SPENDING LEVELS FOR AGRICULTURE

The Senate Appropriations Committee late last week announced discretionary spending levels for its subcommittees to follow as they begin to craft individual funding bills for FY03. The allocation set for the agriculture subcommittee is $17.98 billion, which is an increase from the FY02 spending level of $16.5 billion.

The Senate subcommittee has not yet unveiled a comprehensive legislative proposal, but is expected to begin marking up a bill sometime this month. The House Agriculture Appropriations Subcommittee approved a bill which provides a total of $17.4 billion in FY03 discretionary spending.

The president's budget request for agriculture is $17.4 billion. The funding differences between the House and Senate bills could make the process difficult and there is speculation that several lawmakers will try to add more money for emergency drought assistance in the bills.