WASHINGTON, D.C. — President Barack Obama’s proposed fiscal year 2013 budget unveiled earlier this month includes many of the provisions and cutbacks discussed since early last fall as part of Congress’ Super Committee deficit talks.

In some areas, agriculture groups are accepting of some cutbacks, such as the elimination of direct payments. And in some others, such as agriculture research, industry officials applaud a planned increase in expenditures.

But there are some sharp disagreements already with parts of Obama’s plan, including cutbacks to crop insurance spending without providing what some lawmakers consider a necessary safety net. Overall, Obama’s budget – which Republicans say has zero chance of passage in its current form – calls for some $32 billion in cuts over 10 years, with most coming from the elimination of the direct payment program. Crop insurance overall would be cut by $10 billion over the same time period, largely through administrative cutbacks.

U.S. Rep. Frank D. Lucas (R-Okla.) is chair of the House Agriculture Committee. “The agriculture community remains committed to doing its part in deficit reduction,” he said after the budget was unveiled. “However, this proposal shows a lack of perspective and understanding in how agriculture can realistically contribute.

“For example, President Obama’s proposal to cut crop insurance threatens the integrity of the program itself. 

And, he ignores other areas for savings such as streamlining or eliminating duplicative programs in conservation, or closing loopholes in nutrition spending.

“Nutrition spending comprises 80 percent of the agriculture baseline, and there is bipartisan support in Congress to save billions by eliminating loopholes, but not one penny is cut in the President’s budget. Not only does it fail to address our serious fiscal problems, but it undermines our investment in providing a stable food supply,” Lucas said.

Obama’s budget proposal comes at the same time lawmakers are beginning to craft a new farm bill, replacing the one approved in 2008. Given the division in the nation’s capital over how to reduce the country’s deficit, many ag groups simply are hopeful a new farm bill is approved by October, when the new fiscal year begins.

Some 80 such groups, including the American Soybean Assoc. (ASA) and the National Corn Growers Assoc., signed a letter to ranking Senate and House members calling on the passage of a new farm bill this year.

“The 2012 farm bill is among the most important pieces of legislation the U.S. Congress will consider this year,” the letter states. “We ask you to reject calls for delay and aggressively act to ensure that a new, comprehensive farm bill is passed this year. Farmers need a safety net that works more effectively, and they need access to tools that help them be good stewards of our natural resources.”

ASA President Steve Wellman, a Nebraska farmer, said the association supports certain cuts.

“ASA has advocated, throughout the entire deficit reduction conversation, a shared responsibility for deficit reduction across all mandatory and discretionary spending programs, up to and including the elimination of direct and counter-cyclical payments,” he said. “However, with the enormous amount of risk farmers are about to undertake by planting a new soybean crop, now is exactly the wrong time to reduce support for the federal crop insurance program.

“The proposal put forth in the President’s budget would reduce support to farmers who purchase the highest levels of coverage – a backwards approach that discourages producers from purchasing enough coverage to meet their substantial risk management needs.”

In addition to proposed cuts in direct payments and crop insurance, Obama’s budget also:

•Caps the Conservation Reserve Program at 30 million acres by 2013, saving about $977 million over 10 years

•Zeroes out the Watershed Rehabilitation Program, saving $15 million per year

•Increases the Conservation Stewardship Program from $1.4 billion to $1.403 billion

•Increases the Environmental Quality Incentives Program from $769 million to $972 million

•Cuts the USDA’s Natural Resources Conservation Service programs by about $624 million

•Increases the USDA’s Research, Education and Economics mission by $68 million

•Slightly increases the agency’s Agricultural Research Service budget to about $1.103 billion

•Keeps the Agriculture and Food Research Initiative grants program at $325 million, the same for the current year, although Congress only has appropriated $264 million this year

The full budget proposal is available at www.whitehouse.gov/omb/budget

The National Cattleman’s Beef Assoc. (NCBA) took sharp issue with Obama’s take on the estate tax in his proposed budget. As proposed, the exemption level would be $3.5 million with a maximum tax rate of 45 percent. The current exemption level is $5 million per person, $10 million per couple, with a maximum rate of 35 percent.

“Farmers and ranchers are asset rich and cash poor,” said NCBA President J.D. Alexander. “Land and machinery does not equate to cash unless it is sold. When families are forced to sell off property to pay for the estate tax, the land seldom remains in production. This outdated tax is escalating the depopulation of rural America.”