Sparks’ Wiesemeyer: Budget Will Put Pressure on Ag Spending

Foreign policy, particularly the potential of war with Iraq, will undertone federal legislative debate early in 2003.  The federal budget will also loom large—President Bush is scheduled to unveil his budget for the 2004 fiscal year, which begins Oct. 1, on Feb. 3.

So said Jim Wiesemeyer, a policy analyst with Sparks Companies and a preeminent insider within agricultural circles on Capitol Hill.  He covers farm policy for several news sources, and contributes ag reports to the Montana MarketManager web site, www.montanamarketmanager.org, a premium service offered by the Montana Grain Growers Association.  Wiesemeyer was a keynote speaker at the recent MGGA Convention in Great Falls.  With over 500 producers in attendance, it’s the largest annual grain conference in the U.S.

Yield updates in the 2002 farm bill, while ending in compromise, were paid for by states like Montana that do not have a history of strong yield increases as other commodities such as corn and soybeans, said Wiesemeyer.  Still, the new farm bill will help support the farm economy of Montana and other grain-producing states.  He pointed out that last year, Montana received 78% of its ag income was derived from direct government payments. That’s a substantial contribution to Montana’s economy, which claims agriculture as its primary source of revenue.

Agricultural spending will be subject to reduction attempts, he said.  As an example, Wiesemeyer pointed to the Administration’s continued insistence that any disaster assistance come from the farm bill, rather than other budget sources. Thus, the presence and involvement of grain groups in Washington will be important.

Herb Karst, a Sunburst, Mont., producer, was elected president of the MGGA at the conclusion of the convention, succeeding Larry Barbie of Inverness.