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Grassley: Attention on across-the-board cuts

With the failure of the budget super committee to deliver, attention now turns to the pending across-the-board budget cuts set to kick-in in Fiscal 2013. Senator Charles Grassley says nobody knows the impact of sequestration – automatic cuts – on the ag budget. SNAP food stamps and obligations under federal crop insurance will be exempt.  However, most ag programs will be subject to across the board cuts.

“The most common number that I’ve heard is that sequestration would cut around $15 Billion from the agricultural budget, the effects of which will begin next October. That’s for the 2013 fiscal year,” says Grassley.  Leaders of the House and Senate Ag Committees had offered up $23 Billion in cuts.

Regardless of whether Republicans are successful in getting fewer defense cuts moving forward than President Obama supports, Grassley says the fact that food stamps are tied to the Ag Programs in the Farm Bill is an important point.

“Maybe because of the coalition between food stamps and farm programs, people aren’t gonna want food stamps to go by the wayside – and they sunset. They’re surely going to want that to continue and that gives us some leverage for a Farm Bill.”

Grassley says he does not expect a completed 2012 Farm Bill before the end of this year but says there could be agreement reached by the first six months of 2012.

Brownfield’s Bob Meyer contributed to this report~

AUDIO: Senator Charles Grassley conference call with ag reporters (20:00 mp3)