Coming up next on cspan, newsmakers with agricultural secretary tom vill sack vilsack. Tom vilsack joins us. Two reporters to help us with them from we have bloomberg years news. This week the House Senate Farm bill to go shooters held their first session. House let me what backup a little bit, the treasury secretary said it was important to have a farm bill. Is the white house going to negotiations,he to help settle that issue . The senator has repeatedly said he wants the house to help solve that issue. Is important to not focus on numbers, which in washington dc, we focus on and try to figure out what is the right number, i think that is the wrong question. I think the right question is what is the right policy . Theusda will be engaged to extent that the committees need us to be engaged to try and make sure that the policy is right. Theres obviously some concern on the part of some about the and requirements in snap whether they need to be more stringent or more strict. I think it is important for folks to recognize we have work requirements in the snap program, and those really only apply to a bout eight percent of the participants in the program. The reason they have not been utilized recently is because governors and state legislators around the country have chosen waive thoseose requirements during a tough economy. If they need our assistance, we are ready and willing, and able. House inc. The white needs help think it needs help . The ranking members obviously understand would have just explained. I think there are nist customs discussionsions and negotiations that will be dealt with after the other versions have been worked out. It is a tough issue and a big issue, and an important issues, but there are other important issues that need to be resolved. Most of the focus today, and most of the focused this week, most of the focus next week will probably be on some of those other key issues that need to be worked out. The dairy portion for example. Speaking more broadly on the program, a major milestone, expiration of a major boost in the stimulus program. In february of 2009, the Unemployment Rate was rising, was 33 people using snap million. Now ecb Unemployment Rate falling, and yet we have 47 Million People using the snap program. What does that say about our economy . Our think the first part of your question, you answered, the fact that we have seenloyment lower, we have the creation of jobs, that is an economy that is improving. That is why it is important to get this farm bill done because in Rural America we have not seen much increase in employment. To your question as to why more itple are on snap, i think is important to recognize that we have done, we have an important responsibility at the usda. We came into office, there were a number of states where less than 50 of the people were eligible who were eligible for snap were not participating in the program. I think we now have a historic high in the terms of the number of people are disbanding. The numbers are not a reflection of the current economic status, they are where air flexion of something that is more systemic in the economy over the last several decades. The president has talked about the need to rebuild the middle class, and the gap that continues to grow between the rich and the poor in this country. It is important to get our deficit under control, but also to invest in significant job creation opportunities. I think that is the reason you see more people on snap. A lot of the discussions in the house of representatives on the farm bill have centered on the ministration of the program, up the tightening loopholes for abuse. Frustration with the ministration of the program, especially healthcare. Gov, when frustration public and skepticism about a government run program, do you think that makes it harder for people to trust the ministration of other government run programs . It is frustrating because a number of Government Programs are operating quite well. Im proud to say that in this administration we have reached lows in error rates in those programs. It is something we will continue focus on. People will not realize that carried out investigations of individuals in program to make sure they were getting the benefits that they were deserving. We are focusing on the businesses that are part of spending and benefiting from this program, and making sure that it was appropriate. We saw 1400 businesses last year that were disqualified from participation. We are really making sure this ilable is available to the making sure that this program is available to the people that need it. It is a program that i think consistently has been looking at reductions in error rates and fraud rates, and we will continue to focus on that. I think it is important for people to know who the snap beneficiaries are. What gets lost in the debate, when you talk about numbers, as who are these folks . Snap inks who are on this area, can they work, should they work . 90 cannot, because they are seniors with disabilities, or they are children. They are also actually in the workforce, but they are working up our job, or they are working a fulltime job that does not pay very much. What we begin to understand in the snap program, the low error fraud rate, we get a better feel for this program. We need to be focused on better policy, not numbers. These are very important numbers in terms of the number of ethnic investigations you are doing them a who the demographics are, etc. If youre a person who does not qualify for the snap program, but you are struggling to pay behindlls, but you are someone at the store who is a cart full of five hour Energy Drinks, and they pay within ebt card, you will have frustration. How do you address the frustration that people associate with this program . You mentioned the ebt card, and the region with the reason we use that and not the the fod sense, is to stamps, is to make sure that those frauds are taken away. You may not understand that the buying those Energy Drinks needs them to stay awake for their third job. People do not understand that. They can go to our website to get recipes that have recipes and guides for health role foods and helpful resources. Sentok at trying to and right we have are, good behavior, healthy behavior by trying to give incentives, providing a little bit extra cash if you provide by certain fruits and but tables and vegetables. We are cognizant of this, but there are serious technical issues in this. 14,000 new12,000 to products are introduced in Grocery Stores. It is not as simple as it might seem. I will give you a quick example. If you were to ask the question which is healthier, sugared shredded wheat, or low sugar shredded wheat, and you wanted wanted toh differentiate on the snap card products, you would probably say the low sugar. But they have actually increased the sodium in the low sugar one. I think the key here is not to penalize or stigmatized, the key is to incense. To give the information, and make sure that they will make the right decision. Are there any proposed changes in the house farm bill that the administration would find acceptable, or would be willing to compromise on . With respect to the work that the house is done, when the bill was talking about eligibility, fails toething that realize how much money you will save. Gorical gold eligibility means that they will automatically qualify for snap. Go through have to other agencies, or fill out other applications. See thatn efficient states are utilizing to ensure that they do not have more workers than they actually need to get the work done. When you basically say this type of eligibility is going to disqualify millions of workers. It fails to recognize that we already have a provision in the law that requires full to work or go to school if they are receiving snap. Fail tol to that do that, and they have able bodied dependence, they will be suspended. To someonesay is find a job when Unemployment Rates are high. Or if they are in a county that Just Announced a thousand layoffs. Both the senate and the house have looked at the assistance program, and there may be ways making sure that that program is run efficiently. That policy is really not about the numbers. One policy that has not been discussed, but needs to be discussed in this context is that we provide you between somewhere around 400 million per year. We need to establish a process where your state knows where the better communicate with your Human Services department that knows who the snap and fisheries are that are capable of working. We are making giving you millions of dollars to make sure that it is easier to find the job to reduce the need for snap work or perhaps a limited. Eliminate it. There is no accountability for and that is one place if where you get the policy right, you morehe resources effectively, and you would reduce the cost of a program the program the right way. Theyre going to take somewhere between three million and 4 Million People who otherwise qualify for this row gram, and disqualify them or make it much harder for them to access this program. It will not be beneficial to the communities, and the grocery that arestores dependent on those who come in and buy enough food to take care of their families. When you look at the pokes in Rural America folks in rural 36 ica, 30 six percent of the Family Budget is spent on food. When the stimulus increase was reduced, 36 a month means a lot to those families. It means a great deal to the Grocery Stores in the small communities that are struggling to survive who need those additional opportunities for the customer to come in and take care of their families. You have to look at the people and the challenges behind this program to really understand that you have to get the policy right. Do you have some numbers for the American Public to better understand the impacts that the stimulus money for food stamps has had since 2009 . Say this, if you look at Poverty Reduction, what you are going to find is that the snap row gram reduces the incidence of poverty and the effects of severe property. It is one of the most effective Poverty Reduction programs we have. Every dollar we have spent in snap, to benefit a struggling family, also benefits the economy because it generates a revenue. 85 1. 85 in if you buy more, the grocer has to stock more, which means that it has to are just more which means it has to be packaged and processed, it creates a great chain of jobs. With thise able to do Additional Support was to give during little extra help this tough time. Occurredhat has now 11s somewhere around billion out of that system. As we Start Talking about savings and about the farm bill and costs and pleasant budget one of thethat is things we did in our duties. Our operating budget is over 1 billion less than when i came into office. ,he Agricultural Department there were rural parts of this country that are very serious about deficit reduction, and they are eating a little help needing a little help. The farm bill is something that touches every american, especially in their food budget. It is always something that worries the public, the potential for increased annual prices as farm programs revert. As you hear discussions about the milk clefts being approached approached, there have been talks about a new policy being needed from the usda. Would you be willing to do that . Is we have to figure out ways in which we bolster the market to the point where it would nearly double the cost. We would be out in the marketplace are just think products at a significant increase. The government would end up purchasing a substantial amount of butter, milk, and cheese. Lunchht benefit school programs, but it would disadvantage Grocery Stores and consumers because it would create a shortage. It would also create chaos in economy because if youre dairy producer, are you sure this is going to last for an extended. Period of extended is this something that is only going to last for a few weeks . The best and most effective way would be for congress to pass the farm bill before the end of the year. High production and sugar this year, low prices, they often go handinhand in agriculture. In what are you going to do with all this sugar that you have . We are trying to figure that out now. Were trying to use it to produce renewable fuel, and that will continue. Way ofloped a creative substituting the current sugar imports and we are working with folks that are involved in that. We are slowly, but surely, beginning to reduce that surplus, and it looks like next years crop is not going to be light quite as light la rge. We have not talked about the enormous potential for this bill to impact the economy. We will be investing the lanes of dollars in Business Development and rural communities. The economy and Rural America and all of america. It is a research bill, because this bill will divide resources to universities to come up with new innovations. In the last couple of years, because of our research patentives, 360 four applications have occurred just from usda sponsored grants. It is a conservation bill in the ability to protect our soil and water, and to create new Ecosystem Market opportunities in conservation. It is a trade bill because this creates resources by which we can promote agriculture trade. Part of what gets lost in the escutcheon is the scope of this will in the discussion is the scope of this bill. We fail to recognize everything that is in between. That is why we urge congress to get this done because there is so much benefit. There are congress there are consequences if this does not get passed in time, but if we want to talk about infrastructure, if we want to talk about jobs, and we want to talk about renewal energy, if we want to talk about trade, it is in this bill did it people would recognize that, it would encourage the members of congress to get this done and done quickly. This is so far and has such a so important, and has such a wide impact, why is the white house Still Standing on the sidelines . We are working every single with and meeting talking to chairman lewis, ranking members of the conference committee. Progress is ongoing, and im not sure what full expect us to do beyond that folks expect us to do beyond that. Theseta that will allow conference members to get to the right policy at the end of the day, this is not about headlines, this is not about trying to satisfy the chattering classes, it is about creating a good solid bill. That is the work we have been doing, and encouraging numbers to get it done. Can you get the white house on the phone . Theirannot speak for schedule. I know we are engaged in meetings, and i know that they are but conversing with businesses and ranking individuals on a regular basis paid have you had a meeting with the president about this legislation recently . President , with the and his staff about this. And i talk every day with someone connected to the white house on this. This is an important bill because it is a reform bill. We are going to reduce spending in this bill by a significant amount, and we will be eliminating dreck, which is a significant reform. Direct payments, which is a significant reform. Let me give you the last question. The agricultural economy, when youre looking at the production trends in the next two years, we have had very high economist rices pri ces, record exports, we are staying at are seeing a situation now where the prices are starting to plateau bid theyre getting more competitive, but the crops are getting larger. Could we be on the verge of a bust . I do not think so. We are still having a robust x year. Year export that will continue. We are continuing to look for new and creative ways to look to use the Agricultural Technology in the economy. Inflation rateod has been just historically low. Ofgress gives very little that food dollar, which surprises people. Congress gets about . 15 of every food dollar spent. Theres a lot of money that goes into the packaging, working, and add marketing and ads. There is going to be an expanding need for Food Production locally. We are seeing a worldwide population increase. Seems to belass expanding, and the protein and nutrition will be needed. I am confident and convinced that the market will continue to be strong. Im also confident that farmers and producers in this country Pay Attention to markets, and they recognize that when prices are going down that they need to moderate or adjust their planning. We are going to have a bumper crop in corn this year, but that is going to allow us to replenish what has been a significantly low supply of corn in the last years because of drought, floods, and storms. Anday potentially pick up, make it a little bit easier to get profits. It is a delicate balance, but i am confident we will see progress in agriculture. Thank you so much. We are back with our reporters. Hearing from the secretary, and the house and Senate Conferees over this fiveyear farm bill, they just sat down for the first time this past year. What did you hear . I think theyre really telling wilma was when the secretary start of stopped and said you have been talking about this, but let me tell you about jobs, energy, research, and trends. Piecerm bill is a massive of legislation, and the white house is trying to sell this on the people who are worried about frustrations about getting caught in commodity regulations. The cuts that are going forward, theres going to be a lot of focus on that, because that creates controversy. The ministration, you really arent trying to shift the focus of the conversation because that is what is trying to help you get your bill through. Several thee secretary several times about negotiations, even reverence think the ire culture secretary even referencing the agricultural secretary, saying why do they need help . This is a very sensitive issue, and the house and the senate are so far part in the policy decisions they have taken right now. The chairman and the chairwoman are looking for congressional leaders in the white house to set up a topline to an agreement . I also believe they are little the finalabout product they produce making it through the house. The things that we saw happen over the summer in terms of getting a bill through underscored the question about the volatility of the house and what would happen. Of unclear as to exactly how much the white house will step in, but on the other hand hollered Peterson Collin the white house gets too deeply involved, whatever help they were for, the house would be against