Budget Presented by USDA's Veneman

March 1, 2001

Agriculture Secretary Ann Veneman Wednesday made public a general outline of what the Bush Administration will propose later as a budget for fiscal 2002. The details, she said, would be made available in early April. For now, the two-page outline dealt only in broad terms, much of it focused on a $1.5 billion reduction in discretionary spending.

The budget will call for "a more realistic level" of $17.9 billion in discretionary spending, about 5% more than fiscal 2000. Discretionary spending in fiscal 2001 totaled about $19.4 billion. Of that amount, $1;8 billion was in supplemental spending that included $1.1 billion in "one-time spending" mostly for emergency funding.

About 300 earmarked research projects will be recommended for elimination savings about $150 million, and another $200 million would be saved by reducing or eliminating programs that are "lower priority or need to be better targeted. It was explained that "no big programs are involved" in those reductions.

USDA's market intelligence capabilities would be strengthened, and the expertise for resolving technical trade issues with foreign trading partners would be strengthened as well. USDA also will propose that Congress strengthen the analytical capabilities in the Foreign Agricultural Service, Food Safety and Inspection Service, Agricultural Marketing Service and the Grain Inspection, Packers and Stockyards Administration.

The budget proposal also will seek to "redirect" USDA research "to provide new emphasis in key areas such as biotechnology, the development of new agricultural products and improving protection against emerging exotic plant and animal disease and pests of crops and animals."

Funding will be proposed to continue implementing other initiatives including crop insurance reform and livestock price reporting. Funds for 7,600 meat and poultry inspectors will be proposed "consistent with the latest estimate of the need for these services. No meat and poultry user fees will be proposed.

Two often controversial export programs, the Export Enhancement Program and the Market Access Program, will be funded under the USDA budget as well, Veneman said.