Budget Proposal Contains Robust Mandatory Funding for Farms, Forests and Rural Economies

On March 4, President Obama released his $3.9 trillion fiscal year (FY) budget proposal. The proposal reflects the President’s commitment to an "all of the above" energy strategy, as well as his renewed commitment to climate change, following the announcement of his Climate Action Plan in June 2013.

The budget calls for the elimination of $4 billion in fossil fuel subsidies, while proposing to make tax credits for renewable energy production permanent. Sprinkled throughout the Department of Energy (DOE) and U.S. Department of Agriculture (USDA) budgets are programs benefitting farms, forests, and rural economies.

According to Secretary of Agriculture Tom Vilsak, 85 percent of the counties experiencing persistent poverty are located in rural areas. Vilsack noted that creating opportunities for "biobased product manufacturing, local and regional food systems, and specialty crop and organic production" will strengthen rural economies and improve environmental quality. Encouragingly, climate change, and its relationship to production, is integrated throughout these agencies’ budgets.

In the USDA budget, proposed funding for energy title programs is lower than for FY 2014; however, energy programs are on a much more stable footing compared to 2013. Thanks to the recent passage of the Agricultural Act of 2014 (Farm Bill), there is robust mandatory funding for the Energy Title Program. Additionally, the budget request includes increased funding for programs that address the changing realities faced by agricultural producers due to climate change. Most significantly, this includes the creation of a separate $954 million emergency disaster fund for fighting wildfires, which are becoming more prevalent. According to Vilsack, this will allow "the Forest Service to stabilize and invest in programs that more effectively restore forested landscapes and support those living in communities impacted by wildfire to avert and minimize damage from future wildfires."

Advanced cellulosic biofuels are highlighted in the DOE budget. The agency remains committed to the goal of making bio-based gasoline, jet and diesel fuels cost competitive with gasoline at $3.00 per gallon. DOE and USDA will also continue to collaborate with the U.S. Navy to develop bio-fuels that meet military specifics. Despite cuts at many agencies, reflecting continued belt-tightening, the proposed fiscal 2015 budget provides stable footing for many programs that will assist producers, renewable energy and rural economies.

For a more detailed discussion of the DOE, USDA and other relevant sustainable energy, buildings, transportation and climate budget items, please see EESI’s 2015 Budget Proposal Issue Brief.