1. Ag Policy, Lecture 4 Knutson 6 th 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 Values Myths Policy Decision Programs Government Process

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 Cabinet CEA

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. Structure of USDA NASS Secretary Deputy Food, Nutrition & Consumer Services FNSCNPP Food Safety FSIS Farm & Foreign Ag Services FSAFASRMA Marketing & Regulatory Programs AMSAPHISGIPSA Rural Development RBSOCDRHSRUS Natural Resources & Environment FS NRCS Research, Education & Economics ARSCSREESERS

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

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

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 Key part of iron triangle Interest Groups USDACongress 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. 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 Lecture 4, Wrap up