CREATE-21 Federal Reserve Bank of Chicago A Generational - - PowerPoint PPT Presentation

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CREATE-21 Federal Reserve Bank of Chicago A Generational - - PowerPoint PPT Presentation

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CREATE-21 CREATE-21 Federal Reserve Bank of Chicago A Generational Opportunity for Enhancing Economic Development and Quality of Life The Role of R&D in Agriculture Slide # 1 Federal Reserve Bank of Chicago September 2007 Midwestern

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CREATE-21

Federal Reserve Bank of Chicago Slide # 1

September 2007

CREATE-21

A Generational Opportunity for Enhancing Economic Development and Quality of Life

The Role of R&D in Agriculture

Federal Reserve Bank of Chicago

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CREATE-21

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September 2007

Midwestern Agriculture

  • Over 1/3 of all farms and acreage
  • 8 of top 15 states -total receipts
  • Major contributors to several

commodities (David Oppedahl’s comments) Midwest is the heart of agriculture:

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September 2007

Midwestern Natural Resources

  • Water
  • Tourism
  • Forestry
  • Bio-economy
  • Many other land-based industries
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September 2007

Midwestern Natural Resources

  • Water
  • Tourism
  • Forestry
  • Bio-economy
  • Think about Communities,

Agriculture and Natural Resources

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September 2007

What is at stake?

  • Economic development
  • Quality of life
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September 2007

Higher Education

  • Great return on investment
  • Major portion of state budgets
  • Recognition of link

Research-intensive universities and economic development Michigan and research universities

  • Land grant mission
  • World grant mission
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September 2007

What is the Land Grant Mission?

  • Economic development
  • Quality of life
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Key Opportunities / Threats

  • Bio-based economy (fuel and

value-added products)

  • Healthy farm economy consistent

with sustainable ecosystems

  • Avian influenza
  • Food, fitness, and health (food

for health not just sustenance)

  • Sustainable rural economies
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September 2007

Reasons for Enactment

Help food, agriculture, and natural resource producers secure the benefits of:

  • improved animal, crop, and forest

quantities, qualities, and production efficiencies;

  • new/expanded markets;
  • new bioproducts and new/ improved

technologies; and

  • sustainable production systems.
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September 2007

Reasons for Enactment

Increase environmental stewardship through:

  • improved farm and forest production

methods;

  • decreased dependence upon

chemicals with harmful effects on people and the environment; and

  • finding alternative uses for

agriculture wastes.

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September 2007

Social Responsibility Social Responsibility

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September 2007

Reasons for Enactment

Provide consumers and families with food and fuel cost savings and health improvements through:

  • increased food and nutritional value;
  • a safe, secure, and affordable food

supply;

  • new biofuels/bioproducts; and
  • the best quality information to

enable healthy food choices.

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September 2007

Reasons for Enactment

Boost the economic vitality of rural and urban communities by:

  • greatly expanded leadership

programs; and

  • increased efforts to stimulate

entrepreneurship and business development.

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September 2007

Situational Analysis

Between 1970 and 2005:

  • U.S. population grew 100 million
  • U.S. GDP increased 293%
  • Funding at NIH rose by $22.6 billion
  • But USDA research funding grew by
  • nly $650 million (≈ 1.85% per year)
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September 2007 1970 1975 1980 1985 1990 1995 2000 2005 $5 $10 $15 $20 $25 $30 USDA NIH NSF

F.Y. 1970-2005

NIH, NSF, and USDA R&D Funding

(Constant 2000 Dollars, Billions)

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September 2007 1991 1993 1995 1997 1999 2001 2003 2005 $100 $150 $200 $250 $300 $350

Smith-Lever Hatch NRI

Major Research and Extension Programs

CSREES Funding Trends Since F.Y. 1991

(Constant 2000 Dollars, Millions)

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September 2007

Situational Analysis

And, in the last 15 years:

  • USDA (Hatch) funding for State

Agriculture Experiment Stations dropped by $27 million

  • USDA (Smith-Lever) funding for

Extension declined by $45 million

  • Even National Research Initiative

had less funding ($180 m) than 25 states each received from NIH

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September 2007

Funding Differences!

  • Three DOE Bioenergy Centers

funded:

$75 million per year for 5 years $375 million total Almost 40% of total competitive USDA grants for ALL areas

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September 2007

CREATE-21: Background

  • Summer 2005 – Land Grant System

Design a new USDA-university partnership “as if we were building it today” Create a partnership more responsive to 21st Century realities

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September 2007

CREATE-21: Key Elements

  • Combine USDA’s research,

extension, and teaching functions into a unified organization more responsive to stakeholder concerns and better able to address national and emerging problems

  • Double funding from ≈ $2.7 billion

to ≈ $5.3 billion per year over a seven-year period

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September 2007

NIFA: A Unified Organization

  • National Institutes for Food and

Agriculture (NIFA) incorporating current USDA research, education, and extension agencies and programs, including ARS, CSREES, ERS, and Forest Service R&D

  • An integrated organization with

enhanced intramural, university- based, and competitive programs

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New Structure Will:

  • Increase organizational flexibility
  • Improve budgetary efficiency
  • Enhance program integration
  • Boost stakeholder involvement
  • Be authorized to receive enhanced

competitive grant funding (and continued capacity funding)

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September 2007

Organizational Structure

National Institutes for Food and Agriculture

Director Council of Advisors National Institute for Economic Opportunities in Agriculture and Natural Resources National Institute for Nutrition and Health National Institute for Rural and Urban Community Development National Institute for Natural Resources and Environment National Institute for Food Safety and Agricultural Security National Institute for Families, Youth, and Communities

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September 2007

Enhanced Funding

  • Annual appropriations now ≈ $2.7 B
  • Authorization would grow over

seven years to $5.3 B

  • Three-legged stool approach

Take away one leg – no longer sustainable!

Capacity Competitive - Integrated / Translational Competitive - Fundamental (Danforth Proposal)

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September 2007

Enhanced Funding

  • Annual appropriations now ≈ $2.7 B
  • Authorization would grow over

seven years to $5.4 B

  • $1.0 B in new fundamental research

funds (competitively awarded)

  • $843 M in new integrated funding

(including Extension and teaching)

  • $803 M in new capacity (intramural

and land-grant “base” funds)

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Status

  • Bills introduced in Senate & House
  • S. 1094 & H.R. 2398
  • Compromise is the normal way of

doing business

  • Senate versus House Bills
  • Farm Bill has passed the house

Integration and coordination

  • Senate Agriculture Committee mark-

up expected before next recess

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House Version

  • Creates Agricultural Research Institute

Six institutes cutting across all REE National program directors ARS, ERS & Forest Service left intact

  • Creates National Institute for Food and

Agriculture within CSREES

Manages competitive programs IFAFS funds (200 m) transferred to NRI

  • 30% integrated (IFAFS language)
  • Bioenergy & biobased products initiative

(50 m)

  • Specialty crop initiative (100 m)
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September 2007

Conclusion

  • Integrated organization will be more

flexible, relevant, and responsive to the needs of stakeholders.

  • Enhanced funding will permit

expanded research in critical areas, improved dissemination of knowledge through Extension, and better education of future scientists, farmers, etc.

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Federal Reserve Bank of Chicago Slide # 29

September 2007

Questions www.create-21.org