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Ag Policy, Lecture 4 Knutson 6th Edition, Chapter 2 & 3
Policy Process, Theories and Concepts
Policy Process, Specifics
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
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
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
Process
Issue/Problem
Facts
Values
Myths
Policy Decision
Programs
GovernmentProcess
Facts
Known with Certainty Objectively Proven
• Rational people tend to agree on facts• But may not agree on the relevance or
importance
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.
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
Political Spectrum
Liberal Conservative(more government) (less government)
Influence Triangle
Kingmakers
Kings
Active group
Interested group
Apatheticgroup
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
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
Executive Branch
President
VP
Cabinet
CEA
Cabinet
• Vice President• Heads of 15 Executive Departments• Attorney General• Under G.W. Bush also includes
– EPA– OMB– National Drug Control Policy– USTR
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
Agriculture’s Iron Triangle
Interest Groups
USDASecretary of Agriculture
Legislative
Branch
Structure of USDA
NASS
Secretary
Deputy
Food, Nutrition & Consumer Services
FNS CNPP
Food SafetyFSIS
Farm & Foreign Ag Services
FSA
FAS
RMA
Marketing & Regulatory ProgramsAMS APHIS GIPSA
Rural Development
RBSOCD RHS RUS
Natural Resources & Environment
FS NRCS
Research, Education & Economics
ARS CSREES
ERS
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
Functions of Congress
• Authorization (legislation/programs)
• Appropriation (who gets what?)
• Oversight (chastise Executive)
How a Bill Becomes a LawConstituentsCongress
Executive/DepartmentsPolicy Proposals
SubcommitteeHearings <> Mark-up
CommitteeDebate <> Approval
Floor
Debate <> Amend <> Approval
Conference CommitteeHammer out differences between House & Senate
Floor Approval in Both
PresidentSign <> Veto <> Pocket Veto
House and/or Senate
Committee
Also referred to as the third chamberConferees work out differences
“Enrolled”
If signed becomes effective immediately2/3 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 subjectAny senator can stop debate with a Filibuster
Can “table” killing it at once
Floor of other ChamberDebate <> Amend <> Approval
A Simplified Overview of Budget Authorization and Appropriations
Process
Congress
President's Budget
BudgetCommittees
AuthorizingCommittees
AppropriationsCommittees &Subcommittees
Tax Committees
OMB andExec. Agencies
Floor
Final Budget Through Conference
Committee(Oct 1)
(Late Jan.)
BudgetResol.(Apr. 15)
Recommendations(March 15)
AuthorizingBills (May 15)
Adopted Budget
Resolution
Appropriations Bills
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
Interest Groups
Key part of iron triangle
Interest Groups
USDA Congress
More often than not, the well organized interest groups are the ones that get the attention of USDA and/or Congress
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!
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
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)
Agribusinesses/Trade Associations
• Restaurant Associations• Equipment dealers• Chemical Applicators• International Dairy Foods Association
• 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 StageChapters 4, 5, & 6
Lecture 4, Wrap up